MIRA
INFORM REPORT
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Report Date : |
05.03.2008 |
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 |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of Incorporation : |
02.03.1993 |
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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 : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 42000000 |
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Status : |
Excellent |
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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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Age: |
43 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: : |
43 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: |
50 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 : |
Wholetime Director |
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Age: |
53 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 |
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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 |
KEY EXECUTIVES
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Name : |
Mrs. Birva C. Patel |
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Designation : |
Company Secretary [w.e.f. 10.07.2003] |
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. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Agro Products |
MT |
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215,254.468 |
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Precious's Other Metal |
KGS |
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7,824.670 |
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Minerals /Oils |
CBM |
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459.419 |
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Textile Products |
KGS |
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18,973.000 |
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Textile Products |
PCs |
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35,570.000 |
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Textile Products |
MTR |
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17,342.500 |
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 : |
NOTES: I Above
facilities are secured by : a) 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 . b) Hypothication
of furnitures & fixtures at Corporate House Guargaon. c) Tangible movable
properties ranking pari-passu among the Banks. d) Guaranteed by
some of the Directors in their personal capacity. e) Pledge of
1,00,00,000 equity shares of Mundra Port & SEZ Limited (Formerly known as
Gujarat Adani Port Limited) held by an associate Company at an agreed value
of Rs. 80/- each f) Pledge of
4,25,00,000 equity shares of Mundra Port & SEZ Limited (Formerly known as
Gujarat Adani Port Limited) held by an associate Company at an agreed value
of Rs 250/-each. II Further
secured by creation of Equitable Mortgage : a) Over certain
immovable properties belonging to the Company. b) Over certain
immovable properties belonging to one of the associate Company. III The above
debentures are secured by a) Hypothication
on movable properties belonging to the Company situated at Dist: Belekeri
Port. b) Equitable
Mortgage over an immovable property belonging to the Company. c) Pledge of
shares of some of the promoters and their relatives d)The OFCD
holders had an option to convert the OFCDs into Equity Shares of the Company,
however, they did not exercise the option of conversion. They shall be
now redeemed in three equal annual installments at the end of third, fourth
and fifth year from the date of allotment i.e. 26th August, 2005. IV Vehicles loans
are secured by hypothecation of respective vehicles V Home loans are secured by hyphothecation of
respective property.
NOTE :- I These bonds are convertible into equity shares
at the option of bondholders, any time during the conversion period from
January 27, 2008 to 27 December 2011. Unless previously converted, redeemed
or purchased and cancelled, the Bonds will be redeemed at maturity date,
without further notice, at 27th January, 2012. II Above loans from Banks / Financial
Institutions are secured by Demand Promissory Note and/or Pledge of shares of
some of the Promoters and their relatives and /or guaranteed by some of the
Directors in their personal capacity and also includes NCDs of Rs 2000
Millions (Coupon Rate : 9.05% and 9.15% for NCDs of Rs 1000 Millions each)
which are to be redeemed in four installments i.e. 24/08/2007 , 04/09/2007 ,
05/10/2007 and 12/10/2007. The NCDs are secured by mortgage on an immovable
property of the Company. |
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Banking Relations
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Good |
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Auditors : |
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Name : |
Dharmesh Parikh and Company Chartered Accountants |
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Address : |
Ahmedabad, Gujarat |
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Subsidiaries : |
Business: Real Estate -
Adani Infrastructure and Developers Private Limited -
Adani Estates Private Limited -
Swayam Realtors and Traders Limited -
Columbia Chrome (India) Private Limited -
Adani Townships and Real Estate Company Private Limited -
Adani Land Developers Private Limited -
Adani Realty Private Limited -
Adani Habitats Private Limited Business: Agro -
Adani Agri Logistics Limited Business: Power -
Adani Power Limited -
PTAdani Global, Indonesia. Business: Metals and Minerals -
VyomTradelinksPrivate Limited -
Adani Virginia Inc, USA Ship Owning and Chartering in Singapore. -
Adani Shipping Pte. Limited, Singapore -
Libra Shipping Pte Limited, Singapore ·
Adani Agri Fresh Limited ·
Adani Developers Private Limited ·
M/s. Adani Exports ·
Adani Estate Private Limited ·
Adani Global Limited ·
Adani Global FZE ·
Adani Global Pte. Limited |
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Associates : |
·
Adani Agro Private Limited ·
Adani Energy Limited ·
Aditya Corpex Private Limited ·
Adani Logistics Limited ·
Adani Port Infrastructure Private Limited ·
Adani Retail Limited ·
Advantage Retail Private Limited ·
B2B India Private Limited ·
Gujarat State Exports Corporation Limited ·
M/s. Intercontinental (India) ·
Komal Marketing Private Limited ·
Komal Infotech Private Limited ·
Mundra Poitand Special Economic Zone Limited ·
Mundra Special Economic Zone Limited |
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Joint Venture : |
Adani Wilmar Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500,000,000 |
Equity Shares |
Rs.1/- each |
Rs. 500.000 millions |
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50,000,000 |
Preference Shares |
Rs.10/- each |
Rs. 500.000 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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246,486,975 |
Equity Shares |
Rs.1/- each |
Rs. 246.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
246.500 |
226.200 |
225.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
10195.300 |
7478.100 |
6547.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
10441.800 |
7704.300 |
6772.700 |
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LOAN FUNDS |
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1] Secured Loans |
8870.900 |
8722.200 |
3827.300 |
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2] Unsecured Loans |
21374.600 |
4475.000 |
4566.000 |
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TOTAL BORROWING
|
30245.500 |
13197.200 |
8393.300 |
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Deferred Tax Liability |
169.000 |
86.500 |
78.400 |
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TOTAL
|
40856.300 |
20988.000 |
15244.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2047.200 |
672.300 |
497.100 |
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Capital work-in-progress |
32.600 |
109.000 |
64.500 |
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Deferred Tax Assets |
0.000 |
19.300 |
14.700 |
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INVESTMENTS |
6008.200 |
1929.300 |
466.700 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3987.800 |
3883.500 |
3231.000 |
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Sundry Debtors |
16535.800 |
22439.400 |
21403.700 |
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Cash & Bank Balances |
13578.800 |
5888.600 |
4793.800 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
16186.800 |
5450.800 |
3303.600 |
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Total Current Assets |
50289.200 |
37662.300 |
32732.100 |
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Less : |
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Current
Liabilities |
16512.200 |
18651.300 |
18189.300 |
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Provisions
|
1008.700
|
752.900 |
370.000 |
Total Current Liability
|
17520.900 |
19404.200 |
18559.300 |
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Net Current Assets |
32768.300 |
18258.100 |
14172.800 |
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Miscellaneous Expenditures |
0.000 |
0.000 |
28.600 |
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TOTAL
|
40856.300 |
20988.000 |
15244.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
101516.600 |
93378.800 |
135188.700 |
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Other Income |
39.900 |
13.800 |
0.000 |
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Total Income |
101556.500 |
93392.600 |
135188.700 |
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Profit/(Loss) Before Tax |
1983.100 |
1564.500 |
1306.200 |
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Provision for Taxation |
476.200 |
381.100 |
223.300 |
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Profit/(Loss) After Tax |
1506.900 |
1183.400 |
1082.900 |
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Earnings in Foreign Currency : |
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Export of Goods
on F.O.B. Basis |
35458.200 |
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Interest Income |
128.000 |
36.800 |
108091.900 |
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Dividend Income |
4.600 |
4.300 |
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Other Income |
627.200 |
209.200 |
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Total Earnings |
36218.000 |
26296.000 |
108091.900 |
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Imports : |
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Trade Goods |
37131.300 |
37615.000 |
90299.400 |
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Total Imports |
37131.300 |
37615.000 |
90299.400 |
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Expenditures : |
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Cost of Goods Sold |
94768.400 |
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Personnel Expenses |
337.200 |
225.800 |
133896.000 |
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Operation and Other Expenses |
2955.500 |
2292.600 |
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Financial Charges |
1436.800 |
1265.700 |
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Depreciation & Amortization |
69.000 |
32.100 |
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Total Expenditure |
99566.900 |
91972.200 |
133896.000 |
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QUARTERLY RESULTS
|
Particulars |
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
31.12.2007 3rd Quarter |
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Sales Turnover |
19408.700 |
25690.900 |
31664.200 |
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Other Income |
29.000 |
8.400 |
241.200 |
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Total Income |
19437.700 |
25699.300 |
3,1905.400 |
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Total Expenditure |
18592.900 |
24857.500 |
3,0230.500 |
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Operating Profit |
844.800 |
841.800 |
1674.900 |
|
Interest |
255.600 |
332.300 |
233.600 |
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Gross Profit |
589.200 |
509.500 |
1441.300 |
|
Depreciation |
27.000 |
27.600 |
28.400 |
|
Tax |
87.000 |
74.500 |
212.000 |
|
Reported PAT |
454.300 |
379.300 |
1207.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
1.48
|
1.27 |
0.80 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.95
|
1.68 |
0.97 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.79
|
4.08 |
3.93 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.20 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.57
|
4.23 |
3.98 |
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Current Ratio (Current Asset/Current Liability) |
|
2.87
|
1.94 |
1.76 |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated in 1988 as a partnership firm on a small scale,
Adani Enterprises Limited, formerly known as Adani Exports(AEL)), now a super
trading house mainly exports frozen seafood, precious metals, plastic products,
agro products, etc, to about 30 countries all over the world. The company has
been recognized as Five Star Export House by Government of India.
AEL enters into contracts with various suppliers and manufacturers, to export
their produce under its name. It is entitled to advance licences 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. AEL 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
realised.
Adani Exports Limited (AEL) 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 tonnes per annum (mtpa) of cargo at a cost of Rs
6500
Millions through a joint venture (JV) company.
The Company in association with Hyundai of Korea & 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 centres 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.
During 2001-02 Mundra Port has commissioned the 57 Km rail link between Adipur
and Mundra. The Company commenced a project for containerised cargo by forming
a new company viz Adani Container(Mundra) Terminals Limited The project had
commenced in phased manner from October,2002 at a cost of Rs.2970 Millions.
Adani Global Limited, Mauritius is the subsidiary of the company and Adani
Global Pte Limited, Singapore & Adani Global FZE, Dubai are subsidiaries of
Adani Global Limited, Mauritius. Gujarat State Export Corporation Limited and
Adani Chemicals Limited ceased to be subsidiaries of the company with effect
from 26th March 2004. Adani Wilmar Limited ceased to be joint venture from 28th
June 2004. Adani Virginia Inc and Bay Bridge LLC are subsidiary companies of
Adani Global FZE.
During August 2004 the company has sub-divided its equity share face valuefrom
Rs.10/- per share to Re.1/- per share.
During 2005-2006, Adani Agri fresh Limited, Adani Virginia Inc and Bay Bridge
Enterprise LLC became subsidiary Companies of the company.
Business
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.
The company ranks
amongst the largest and the fastest growing business houses in India.
Performance
The various proactive measures and initiatives enable the
Company to sustain yet another year of healthy growth.
The Company recorded a net sales Rs. 101516.60 Millions as
compared to Rs.93378.800 Millions in the
previous financial period, registering a growth of 9%. The operating profit of
the Company grew by 27% per cent on annualized basis from Rs. 1564.500
Millions in the previous period to Rs.1983.100
Millions in the year under review. Earning per share
was Rs. 6.35.
CONSOLIDATED
ACCOUNTS:
The Consolidated Financial Statements of the Company prepared as per Accounting
Standards 21, 23 and other applicable Accounting Standards prescribed by the
Institute of Chartered Accountants of India and Clause 32 of the Listing
Agreement with the Stock Exchanges with its Subsidiaries, Associates and Joint
Ventures are annexed and form part of the Annual Report and Accounts.
The Company's Sales and Operating income on a consolidated basis has increased
by 37% to Rs.169490.600 Millions as compared to
Rs. 123414.800 Millions in the corresponding
previous period.
The group recorded a consolidated net profit after prior period adjustment and
provision for taxation of Rs. 1773.500 Millions for the
year under review as compared to Rs. 1346.300 Millions. The networth of the group as on March 31, 2007 was Rs.
11469.500 Millions as compared to Rs. 8521 Millions for the Company.
CHANGE
IN NAME OF THE COMPANY :
The name of the Company has changed to "Adani Enterprises Limited"
with effect from 10th August, 2006 pursuant to the Resolution passed by the
shareholders at the Fourteenth Annual General Meeting of the Company held on
29th July, 2006 and after obtaining all requisite approvals.
The Change in name conveys evolution with a clear focus on its five SBUs viz.
Power, Oil & Gas, Real Estate, Agro, Metals & Minerals with shipping
firming backbone to its business.
The Company has chalked out an ambitious growth plan for all its businesses. It
has enlarged its sphere of activities and embarked on large investment
programmes. The Company, leveraging on its commodity infrastructure and global
exposure rewriting its future through a judicious process of asset creation.
Its overall conglomerate strategy is aimed at building a large, diversified
competitive organization positioned to benefit from the India advantage.
Its businesses are structured as divisions or subsidiaries considering the
specific needs of value chain enhancement, competitive synergies, focus
imperative and alliance opportunities.
SEGMENT
REPORTING:
The Company is a "Five Star Export House" with operations covering a
wide range of commodity groups such as Power, Oil & Gas, Real Estate, Agro,
Metals & Minerals with shipping forming backbone to its business. In view
of the integrated nature of business in its entirety, there are no separate
segments within the Company as defined by Accounting Standard 17 (Segmental
Reporting) issued by the ICAI.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT :
The management of Adani Enterprises Limited (AEL) presents
the analysis of performance of the Company for the year 2006-2007 and the
outlook for the future, which is based on assessment of the current business
environment. It may vary due to future economic and other developments, both in
India and abroad.
Economy and Business Environment:
The Economy - an overview:
Booming capital markets, rising foreign exchange reserves, growing corporate
performance and increasing exports contributed to 8% GDP (advanced estimates)
for the financial year ending March 31, 2007. The world's largest democracy and
free market continues to shine as well as smile in spite of occasional hiccups.
The Country's GDP has for the first time in the last ten years experienced a
consistent average growth rate of 8% per annum. However, the last time when it
happened in the mid nineties, the invest rates were significantly lower, which
projected a GDP growth rate of 6-6.50%. This is the key driver of progress and
it is crucial that invest rates have increased so as to sustain an annual GDP
growth rate of 8%.
This impressive economic growth was the result of a general improvement in
disposable incomes, driving demand across various industry sectors. This
impressive economic scenario is likely to lead to progressive reforms,
reduction in tariffs, growing Foreign Direct Investment (FDI) and more
importantly, a much needed thrust in infrastructure and if all these fall into
place, then the Country's economy will be on a sustained high.
The high growth trajectory will indeed have far reaching implications on the
domestic market. Per capita income would rise; FDI would bring in a slew of
global players, household consumption patterns would shift, organized retail
would become more apparent and cars, durables, healthcare, education, branded
goods, would get a substantial boost.
The cautionary steps would be to safeguard the economy against growing
inequalities of income and meet the requirements of infrastructure and real
estate, which are important challenges to India's growth strategy.
To capitalise on the changing scenario of emerging India, the Company has
emerged from a pure commodity player to a value chain enhancer with emphasis on
asset creation for long term sustainability and locking higher margins. The
company focuses on five business sectors for future growth and profitability:
Power, Oil & Gas, Real Estate, Agro and Metals & Minerals with shipping
venture as a backbone to its various businesses. The management's views on the
Company's performance and outlook for each of these segments are discussed
below
Business:
Power:
The Company has planned to make the power sector its major thrust area in the
coming years. It has extensively leveraged on its coal trading, power trading
and logistics expertise and now extended its sphere of activities to coal
mining and power generation. This will make it one of the largest integrated
players in the Power Sector in the ensuing years.
Coal Trading: Coal is one of the primary sources of energy, accounting for
about 55 per cent of the total energy consumption in the country. China and
India together account for almost three-quarters of the increase in coal demand
in developing countries and two-thirds of the increase in world coal demand.
During the year under review, the Company has established global alliances for
quantity and quality commitment from large miners in Indonesia and China. The
Company has entered in to long-term arrangement for supply of imported coal,
which has lesser Ash content and better calorific value for higher
productivity. Despite volatility of coke and coal prices, the Company was able
to fulfill its commitments and also picked up new orders from electricity
boards.
The Company continues to improve its coal business by expanding its sourcing
network, cost effective shipping and timely delivery at the power stations.
Power Trading: The Company was among-the-first movers to identify the
opportunity in power trading after modification of Electricity Act in 2003 and
venture into power trading by obtaining necessary license for the purpose. With
constant improvement of trading efficiency, the Company was awarded the highest
category 'F' inter-state license for trading in power by the Central
Electricity Regulatory Commission (CERC) in 2003. Since 2003, the Company has
emerged as the leading private sector power trader in the country. This
position it expects to maintain in the coming years too. The Company has
tie-ups with various State Electricity Boards, power plants and also
participated in tariff based bidding for different states. As a long term
strategy, the Company is also setting up merchant power project(s). Coal
Mining: The Company through its wholly owned subsidiary named PT Adani Global
in Indonesia has initiated Coal Mining business looking to the growing business
opportunities and increasing demand of imported coal in India. The Company has
acquired coal mining rights in East Kalimantan region on the Bunyu Island,
Indonesia.
On the basis of various studies conducted, the Company has estimated large
mineable reserves. The Company has already initiated steps to undertake the
mining operations in a phased manner in the ensuing year. The Company has also
been selected by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for
carrying out coal mining operations for its power plant. Indigenous coal mining
shall accordingly form an important segment of the overall power sector thrust
area for the coming years.
Power Generation:
The Company has ventured into Power Generation project,
looking to overall deficit in the country and also growing demand of power for
power trading purpose. The Company through its 100% subsidiary Adani Power
Limited, has initiated coal based power plant development in three phases to
reach overall capacity of 2640 MW by end of 2010 in a phased manner. The first
phase of Power plant with a capacity of 660 MW will be fully operational by
April., 2009. The company has already signed two Power Purchase Agreements with
Gujarat Urja Vikas Nigam Limited (GUVNL) to supply 2,000 MW power for next 25
years.
The Company has already placed orders for purchase of Boiler, Turbine &
Generator and civil work at site is also progressing as per plan.
The capacity of the project will be enhanced in the second
phase by another 660 MW (2x 330 MW). The Phase II is scheduled to be completed
by October, 2009.
The capacity of the project will be enhanced further by another 1320 MW (2 x
660 MW) in the third Phase, which is scheduled to be completed by October,
2010.
With the setting up of the power plant, the Company shall be
a large integrated player in the power sector value chain viz. From coal
trading, power trading to coal mining and power generation.
Business: Oil & Gas:
Oil & Gas Exploration:
The Company, through a consortium (where it has 65% stake), has
been awarded two oil and gas blocks by Government of India in the recently
concluded New Exploration Licencing Policy Round VI (NELP VI). One block is
situated in Gujarat with a total area of 75 sq. kms. and other block is located
in Assam with a total area of 95 sq. kms. During the year under review, the
Company has also been awarded one onshore block by Govt. of Thailand in Eastern
provinces of Nokhon Ratchasima & Buri Ram with a total area of 3900 sq.
kms. The Company also plans to participate in the upcoming NELP VII.
City Gas Distribution:
As a part of its diversification and expansion programme, the Company plans to
acquire majority stake in "Adani Energy Limited" which has already
set up a Gas Distribution Network in two of Gujarat's most industrialized and
commercial cities of Ahmedabad al Vadodara. Adani Energy has set up a large
infrastructure of pipelines and CNG stations in these cities and caters to a
large base industrial, commercial and residential consumers.
Adani Energy is also implementing City Gas Distribution projects to repeat the
similar success stories in Noida, Lucknow & Khurja UP, Faridabad in Haryana
and Udaipur, Jaipur in Rajasthan. Adani Energy has already initiated the
infrastructure development these cities to meet the fuel needs of industrial,
domestic, commercial & Transport sectors.
Apart from the above ventures, the Company continues its focus on its following
value enhancing trading operations:
Petroleum & Oil Lubricants
(POL):
Petro products play a vital role in every industry. Barring LPG with nearly 85%
domestic consumption, all other products are use across industries. The Company
deals in various Petro products, comprising of Gas Oil (Furnace Oil), High Sped
Diesel, Naphth Base Oil, Rubber Processing Oil.
In line with the business plans of the company, State of the Art - Bunkering
(Ship Fueling Business) facilities were established Mundra Port during the year
under review. These facilities interalia include laying of pipelines connecting
all the jetties for bunker supplies, insulation of receipt and bunker supply
pipelines and storage tanks enabling smooth handling of highly viscose product
Consequent to the above, the Company was the first in the country to very
effectively handle Bunker Fuel Oil. Two Bunker Barges of a capacity of 3000 MT
each with State of the Art facilities are in the final stages of fabrication
and construction and are likely to be operational during next financial year
which will significantly boost up the bunkering activities of the
Company.
Petrochemicals:
The year under review, witnessed large fluctuations in the crude oil. With the
support of the major petrochemical manufacturers, the Company continued to grow
its market share in the year. In this space the Company serves a spectrum of
industries such as Agro Chemicals, Pharmaceuticals, Dyestuffs, Inks &
Coatings, Emulsions, Resins, Plasticizers, Performance chemicals etc. With
dedicated port facilities the Company was uniquely placed - to capitalize on
the growing import needs of Ethanol, a basic raw material, -during the year
under review.
Fertilizers & Fertilizers Raw
Materials (FRM):
In the fertilizer and fertilizer raw material segment, Sulphur and Ammonium
Nitrate are the major items, imported by the Company, with niche market and
repeat orders. Ammonium Nitrate is used in various industries, viz,
Pyrotechnics, Herbicides and insecticides, Ingredients of freezing mixtures,
Ceramics, Chrome Leather tanning and in the manufacture of catalysts.
The Company hopes to expand the business by regularly importing Sulphur Vessels
at Haldia & Vizag Ports (ECI) and consolidate its already existing strong
presence at Kandla & Dharamtar (WCI).
Business: Real Estate:
The Company has ventured into real estate development business through its 100%
subsidiary Adani Infrastructure & Developers Private Limited leveraging on its
competitiveness of successfully developing large size projects like Mundra
Port, Edible Oil Refinery, Railway line connectivity, Gas Distribution network,
Crash, Silos etc. In the first year of incorporation, the Company has
identified three projects with large scale development which shall be
constructed with large established real estate developers.
"Bandra Kurla Complex":
The company has agreed for securing development rights for about 2 mn square
feet of property at Bandra Kurla Complex, Mumbai. The site is located in
International Finance & Business Centre (IFBC) in Bandra-Kurla Complex
(BKC) and is in the close vicinity of some of the most prestigious commercial
developments in BKC. The site is ideally located for a large integrated office
and commercial complex and the Company has initiated the development
plans.
"Shantigram"-Integrated
Township at Ahmedabad, Gujarat:
The Company has launched the development of Integrated township spread across
over 500 acres of single parcel land with potential of Residential, Commercial,
Retail and Special Economic Zone. 'Shantigram' will be one of the largest and
most modern futuristic township of its kind.
"Other Developments" in Mumbai
City (Borivali & Byculla):
As per order of Board for Industrial & Financial Reconstruction (BIFR)
dated 22nd February 2007, Khatau Makanji Spinning & Weaving Mills Limited
(KML) has been demerged and the properties pertaining to Byculla and Borivali
vest with the resulting company i.e.,. Swayam Realtors and Traders Limited
(SRTL) which is a step-down subsidiary of the Company.
The Company has plans for large modern commercial / residential complex at
these locations.
Business: Agro:
Agro Commodities Trading:
The Company is a major-diversified player in the Agri Sector
of the Indian Economy. Agriculture Sector continues to play a prominent role in
the Indian economy providing livelihood to more than half of the population.
Due to large demand and supply variations and the intrinsic volatility of the
sector, the Company shall continue its role as facilitator through its growing
basket of Agri Products. The Company has successfully expanded its global reach
and presence in the domestic / foreign markets with concentrated efforts to
increase the market share to position itself as bulk aggregator, logistic
manager and established distributor in export and domestic trade in entire
range from Oil & Oil Meals to Grains & Pulses.
During the year, the Company has consolidated its position in its existing agri
basket comprising of Food Grains, entire range of Oil & oil Meals and
Castor. Other than traditional products, the Company is also exploring
opportunities by adding new products like Sesame Seed, Barley, Shorgum, Mentha
Oil etc. to broaden the product range and to expand the market reach. The
Company's Trading model is suitably extended to carry out processing through
tolling locations.
Through a judicious internal restructuring, the Company now has brought the
entire Adani Group's initiatives in the Agri Sector under one umbrella. Apart
from its traditional Agri trading operations, it now has following ventures
under its fold:
Edible Oil integrated business:
The Company has commenced trading in Edible Oil during 2000, looking to
urbanization and increasing demand of packed oil, the Company has ventured in
to Edible Oil Refining with 50 : 50 JV with world's oil major Wilmar Trading -
Singapore and established first Indian port based edible oil refinery with a
refining capacity of 2,200 MT per day. This refinery has potential to operate
entire year on the basis of imported vegetable crude oil from Malaysia.
Matching with increasing demand, Adani Wilmar Limited has also enhanced
refinery capacity and touched 3200 Ton per Day mark with acquisition of refinery
at Mantralayam, Bundi & Haldia. With enhancement of refining capacity,
location specific products and branding efforts have also supported the growth
of the business.
Adani Wilmar Limited (AWL) has promoted its product under "Fortune"
and captured 17% market share and first position in packed edible oil segment
in India. The "Fortune" products are available in entire range of
edible oil and starts with Soya Oil (38% market share), Sunflower (10% market
share), Groundnut Oil (20% market share), Non Refined Mustard Oil, Cotton Seed
Oil.
During the year, AWL has added coconut oil to its product basket. AWL's newly
launched coconut oil brand "Naturelle" has already received
encouraging response in the market.
During the last 6-7 years of operation, AWL has spread its distribution network
across India and also in the neighboring countries. Today AWL has distribution
foot prints all across the country with 88 stock-points catering to more than
6000 distributors and numerous brokers and other trade associations. AWL's
retail reach is more than 6,00,000 outlets. Looking to domestic needs and
established distribution network, AWL has also added Vanaspati Ghee under
"Raag" brand and bakery shortening under "Jubilee" brand.
AWL is continuously increasing its market share in sunflower and vanaspati.
With the best brand and network,AWL is poised to grow rapidly in the coming
years.
Fruits & Vegetables-integrated
business:
India is a leading fruits & vegetables producer but lacks post harvesting
technology, insufficient storage and improper transportation methodology
leading to large wastages. The Company through 100% subsidiary named Adani Agri
Fresh Limited has introduced ultra-modern Controlled Atmosphere Storage
Facility in India at Himachal Pradesh for storage of A )pies and other fruits.
This facility increases the shelf life of products which can be profitably
offered during off-season. The Company has commenced its operation in Himachal
Pradesh with seasonal procurement of Apples and plans to expand its reach in
other parts of the country with varied offerings.
Food Grain Silos -Pioneering Agri
Logistics:
India is a leading food grain producing and consuming country in the world.
Modernization has taken place in farming to enhance the production but post
harvesting technology and improper storage leads to substantial wastage. This
wastage can be reduced with proper initiatives towards storage management and
logistics facility. The Government of India had taken revolutionary measures
and invited tender from private parties to build, own and operate food grain
storage and logistics circuits with take or pay commitment from Food
Corporation of India for next 20 years.
Adani Agri Logistics Limited (100% subsidiary of the Company) had won the
tender to establish grain storage, handling and transportation facilities. In
the scheme of development the Company has to construct 2 Lac MT storage
facilities each at grain producing states - Punjab & Haryana with fully
mechanized operation and Steel / RCC silos for grain storage. Similarly, for
local distribution, distribution depots in Navi Mumbai (50000 MT), Coimbatore
(25000 MT), Chennai (25000 MT), Bangalore (25000 MT) and Hooglee (25000 MT) are
to be established. To avoid wastage in transit, specialized top feeding -
bottom discharge wagons were procured for movement of grain between producing
statesto consuming states.
Adani Agri Logistics Limited is in process of development of above facilities
and expects to develop the entire chain of operation in a phased manner.
Business: Metals & Minerals:
The "Metals and Minerals" group continues to expand its horizons and
is an important contributor with increased thrust on asset based trading.
Iron Ore:
Iron ore forms a strategic trade commodity and the Company continues to scout
for long-term sourcing arrangements.
During the year 2006-07, the Company exported 3.85 Mn MT of Iron Ore from India
and has posted a healthy margin. Belekeri Port Karnataka from where bulk of
iron ore is shipped has also commissioned floating cranes to load gearless
vessels at the anchorage and have handled all vessels including the captive
vessels at a record load rate.
Precious Metals:
The Company has been major exporter of Precious Metals. During the current year,
the Company has concentrated on select range of Value added products to improve
the overall margins. Leveraging on its Five Star Export House status and its
competencies in the precious metals business, it is now in the process of
enhancing its bulk trade in Gold and service a large base of customers.
Scrap:
The Company is a leading metal scrap trader in the Indian sub-continent trading
with buyers of India, Pakistan and Bangladesh The metal scrap is sourced from
United States and Europe and the Company is the preferred supplier to many
large customers.
Ship Breaking:
As a measure to backward integrate its operations in scrap business, the
Company has identified ship breaking yard named Bay Bridge Enterprises Inc. in
Virginia State of USA. The ship breaking unit is one of the six yards
registered with Maritime Authority o USA with highest order of environment
protection. This unit is targeting old Navy and Coast Guard Vessels floating on
the eastern coast. This unit serves as a low cost entry point into green
ship-recycling business. The unit is located in Virginia State on East Coast.
The ship breaking initiative by the company is a backward integration measure
to its existing scrap trading business and will help the Company in future to
secure higher margins.
Shipping as a backbone to AEL
Businesses:
Ship Owning and Chartering:
Shipping is the largest and the most important mode of international
transportation for the country. Around 95% by trade volumE and 70% by trade
value of India's overseas trade is using sea-route. To capitalize on this
growing segment and to supplement its existing strong global trading operations
which are largely sea borne, the Company has decided to venture into the
shipping operations and has already placed orders with a Korean shipyard to
build two capsize vessels with a capacity of 175,000 DWT each with expected
delivery by end of 2010. The Company is also planning to procure few more
vessels over next five years for mainly handling the in house cargo including
coal and iron ore to effectively manage its freight cost. This foray shall
enable it to better manage logistics requirements of all its relevant
businesses.
Competition/Outlook on
opportunities:
Over the years, the Company has emerged as a trading
conglomerate and has also increased the commodities in its trading basket and
has now become a player to reckon with leading position in trading of coal,
power, iron ore, oil & oil meals, grains & pulses, petroleum and
petrochemicals products. During the current year, the Company has leveraged on
its global distribution network and expanded exports turnover, on the back i of
the booming global economy. The emergence of the Company, as leading Coal
supplier, proven expertise in Power Trading, growing opportunities in the
domestic agro markets, infrastructure & logistics advantage at Mundra Port
has enabled the company to increase its domestic trade.
The Company has persistently maintained its core competence, that of its
Logistic Solutions Provider, and has captured hefty volumes in its Energy
Basket. The foray into Power Trading has yielded encouraging results, whereby
the Company has recorded voluminous turnover. The business focus has been to
improve the trade margins, weeding out those transactions, where the
profitability has not been enough to justify the trading risk. The overall
operating margins have improved.
In adherence to its objective of widening the scope of its activities in the
trading value chain and evolving as an asset backed trading house, the Company
has been constantly increasing its scope of activities at sourcing, logistics
& handling as well as at the consumption end of the commodities. The
Company has continued to focus on its core Value chain enhancement & asset
focused / trading businesses comprising of five business units: Power, Oil
& Gas, Real Estate, Agro, Metals & Minerals. The Company along with its
present traditional trading model is also venturing into various other areas to
make a significant presence on supply side as well as demand side value chain
as discussed above.
The changing business environment is throwing up exciting opportunities which
can be converted into successful business ideas by creative and efficient
management. The Company, today, has one of the most committed and highly
experienced team of professionals in its ranks to man the various tasks of a
growing conglomerate.
Risk and Concerns:
Risk relating to International Trading
Operations:
The Company's trading operations are international in nature
and the Company also proposes to operate shipping vessels worldwide. These
international operations involve additional risks, including the possibility of
restrictive actions by foreign governments, including vessel seizure; foreign
taxation and changes in foreign tax laws; limitations on repatriation of
earnings; changes in currency exchange rates; local sabotage and ownership laws
and requirements; nationalisation and expropriation risks; loss of contract
rights; and political instability, war and civil disturbances or other risks
that may limit or disrupt markets in which the Company operates. Further, the
Company's foreign subsidiaries may face governmentally imposed restrictions on
their ability to transfer funds to their parent company. The Company has
initiated adequate insurance covers to hedge against these risks in business.
These are assessed on a regular basis and the Company takes the best possible
coverage of insurance from well-established sovereign enterprise at minimal
costs.
A part of the Company's trading operations is located in markets in the Middle
East and the Asia-Pacific region. The legal and regulatory regimes in these
markets are less certain than in more developed markets and may be subject to
unforeseen changes. At times, the interpretation or application of laws and
regulations is unclear; neither is the content of applicable laws and
regulations always readily available to the public. The Company believes in
complying with the laws of the land in letter and spirit and is in the process
of developing internal control tool for monitoring compliances On real-time
basis.
Foreign Exchange Risk:
The Company is exposed to foreign exchange risks by virtue of being an exporter
and importer of its products. Depreciation of the rupee against the US dollar
or of the US dollar against other currencies in which the Company conducts its
business may increase the cost to the Company of servicing and repaying its
foreign currency borrowings and other financing arrangements.
The Company's policy is to systematically hedge its long term foreign exchange
risks as well as short term exposures in line with its hedging policy. The
Company has also created a forex management team. The Company manages this
position through an ongoing risk analysis of every forex transactions. In
addition, the Company has laid down standard operating procedures to de-risk
itself from currency volatility. The Company could indeed benefit from a
strengthening in the domestic currency against the US dollar.
Funding Risk:
The Company may not be able to put together adequate low-cost resources to
finance its growth plans, dampening profitability.
Over the years, the Company has ploughed back earnings into the business,
creating a strong financial statement. The Company maintains a history of
timely repayments of all external liabilities. These factors allow it to
collect funds at rates, which are better than industry standards.
In view of prudent and conservative risk mitigating strategy by the Company, it
does not perceive interest rate fluctuations as a significant risk having any
material impact on its profitability.
Economic
Risk:
While the macro economic and industry outlook are stable and positive, factors
such as spiraling energy prices, higher inflationatory pressures, strengthening
dollar, revenue slippages leading to larger fiscal deficit, political
uncertainties etc. could change the business environment.
Revenues:
The Company has recorded total income to the tune of Rs. 101513.600 Millions during the year 2006-07 with an increase of 9.00% in
comparison to corresponding period in previous year.
Profits
and profitability:
During the year, the Company generated earnings before inter,st, depreciation,
tax and appropriation (EBIDTA) of Rs.3495.400 Millions compared
to Rs. 2718.200 Millions, an annualized growth
of 29 per cent. Net profit margin was significantly higher by 27 percent.
Earnings per share increased by 21 per cent on annualized basis to Rs. 6.35/-on
face value of Re. 1 each.
Profit Before Tax of the Company has increased to Rs.1983.100 Millions for the period ended 31st March, 2007 compared to
Rs.1564.500 Millions for the period ended 31st
March, 2006 reflecting a handsome growth of 27%.
The Management is pleased with the financial milestones achieved by the Company
during the year under review and foresees eminent growth potentials in the
years to come.
Revenue:
The Company has recorded total income to the tune of Rs. 169532.200 Millions during the year 2006-07 with an increase of 37% in
comparison to corresponding period in previous year on the back of strong
economic growth.
Profitability:
During the year, the Company generated earnings before interest, depreciation,
tax and appropriation (EBIDTA) of Rs. 4743.900 Millions compared to Rs. 3175.500 Millions, an annualized growth of 49 per cent. Net profit of
Rs.1732.800 Millions also grew by 29% on a
yearly basis. Earnings per share increased by 23 percent on annualized basis to
Rs. 7.31/- on face value of Re. 1 each.
Fixed Assets
Tangible
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Land
-
Building
-
Plant & Machinery
-
Furniture & Fixtures
-
Electrical Fittings
-
Office Equipment
-
Computer Equipments
-
Vehicles
-
Air Craft
-
Ship
Intangible
-
Software
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.
MEDIA RELEASE
The Board at its
meeting dated 21st May, 2007 under took the following major
activities:
Sales and
Operating income has gone up for the quarter ended 31 March 2007 to Rs.34260 Millions
from Rs. 32560 Millions in the corresponding previous year quarter, showing a
growth of 5%. For the full year the same has increased by 9% to Rs.101560
Millions.
EBIDTA for the quarter
ended 31 March 2007 has increased to Rs.1120 Millions as compared to Rs.91 in
the corresponding previous year quarter. For the full year the EBIDTA has been
Rs.3500 Millions showing an increase of 29%.
PBT and PAT for
the quarter has increased by 10% to Rs.950 Millions and 1% to Rs.660 Millions.
For the full year the PBT and PAT has increased to Rs.1980 Millions and Rs.1510
Millions i.e. 27% and 27% respectively.
On a consolidated
basis, the Company’s Sales and Operating income has increased by 37% to
Rs 169490 Millions as compared to Rs 123410 Millions in the corresponding
previous period.
EBIDTA on a consolidated
basis has increased by 49% to Rs 4740 Millions as compared to Rs 3180 Millions
for the corresponding previous period.
The PAT of
the company on a consolidated basis has also improved by 28% to Rs 1730
Millions as compared to Rs 1350 Millions for the corresponding previous period.
The company
successfully placed Foreign Currency Convertible Bonds of US$250 million in
January 2007. The proceeds of the issue would help in the successful
implementation of various projects being undertaken by the company towards coal
mining, shipping, etc.
The Company
continues to be focused on its four business segments namely :
Energy, Agro,
Metals & Minerals and Infrastructure & Logistics
Under the Energy
Segment,
-
it continues to be the largest Coal importer in India. Adani Power
Limited, its wholly owned subsidiary is implementing a project for generation
of 2640 MW of electricity in three phases. Of this, the company has entered
into a long term agreement with Gujarat Urja Vikas Nigam Limited, to supply
2000 MW of electricity. The company through its wholly owned subsidiary in
Indonesia, is also engaged in developing coal mines, which will prove to be a
big asset to flank its power plant as well as the coal trading business.
-
The company has successfully commenced the bunkering business i.e.
supply of fuel to ships through its unit in the Mundra SEZ.
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The consortium, where the company is a majority stake holder has been
awarded two onshore blocks for Oil and Gas exploration under the NELP – VI viz.
one in Gujarat and another one in Assam. The consortium has also been awarded
one onshore block in Thailand for Oil and Gas exploration.
The Agro business
of the company has shown continuous superior performance in trading of various
agro commodities.
-
Adani Agri Fresh Limited, its wholly owned subsidiary, is the first company
in India to have successfully implemented Controlled Atmosphere Storage
Facilities (CASF) for the storage and trading of fruits and vegetables under
controlled climatic conditions;
-
Adani Agri Logistics Limited, its wholly owned subsidiary, is setting up
fully mechanized silos for the storage of food grains, again the first of its
kind in India, and has entered into a long term contract with Food Corporation
of India.
-
Adani Wilmar Limited, the 50% joint venture with Wilmar group,
Singapore, has continued to maintain its market dominance in the branded edible
oil segment with its brand ‘Fortune’.
In the Metals
& Minerals business, the company continues to be one of the major
exporters of iron ore. Through its wholly owned subsidiary, Adani Global FZE,
it continues to be the largest importer of ferrous scrap in sub-continental
India. Bay Bridge Enterprises LLC, the wholly owned subsidiary in US engaged in
the business of dismantling ships, has shown good performance.
In the Infrastructure
& Logistics segment, the company through its subsidiaries is developing
around 25 mn sq. feet of integrated commercial & residential projects in
Ahmedabad and Mumbai. The company has also placed orders for two large bulk
carriers of 175,000 tonnes each with a Korean Shipyard to cater to its internal
cargo requirements.
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.40.29 |
|
UK Pound |
1 |
Rs.79.98 |
|
Euro |
1 |
Rs.61.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|