MIRA INFORM REPORT

 

 

Report Date :

07.04.2011

 

IDENTIFICATION DETAILS

 

Name :

ALLCARGO GLOBAL LOGISTICS LIMITED

 

 

Registered Office :

5th Floor Diamond Square Cst Road, Kalina Santacruz (E), Mumbai-400098, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

18.08.1993

 

 

Com. Reg. No.:

11-73508

 

 

CIN No.:

[Company Identification No.]

L63010MH2004PLC073508

 

 

Legal Form :

Public Limited Liability Company. The Company's shares are listed on the Stock Exchange.

 

 

Line of Business :

Logistics Service Provider

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A   (68)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 31670000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established company having good track. There appears to be a consistent improvement in the financial position of the company. directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings under usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Purvesh

Designation :

Accountant 

Contact No.:

91-22-66798100

Date :

06.04.2011

 

 

LOCATIONS

 

Registered Office/ Head Office :

5th Floor Diamond Square Cst Road, Kalina Santacruz (E), Mumbai – 400 098, Maharashtra

Tel. No.:

91-22-66798100

Fax No.:

91-22-66798195

E-Mail :

shailesh.dholakia@allcargoglobal.com

mumbai.info@allcargoglobal.com

Website :

http://www.allcargoglobal.com

 

 

Branches :

Located at:

 

·         Ahmedabad

·         Bangalore

·         Baroda

·         Chennai

·         Cochin

·         Coimbatore

·         Goa

·         Hyderabad

·         Indore

·         Jaipur

·         Jamshedpur

·         Kandla

·         Kanpur

·         Karur

·         Kolkata

·         Ludhiana

·         Moradabad

·         Mumbai

·         Mundra

·         Nagpur

·         Nashik

·         Nepal

·         New Delhi

·         Nhava Sheva

·         Panvel

·         Tuticorin

·         Salem

 

 

Overseas Office :

200 Middlesex Turnpike Iselin, New Jersey 08830, U.S.A.

Tel. No.:

+ 00 1 732 283 7833

Fax No.:

+ 00 1 732 283 7834

E-Mail :

allan@twlogix.com

 

 

Container Freight Stations :

Maharashtra

Coproli Village, Taluka – Uran, Near JNPT Area, District – Raigad – 410 212, Maharashtra, India

 

Tamil Nadu

913 Thiruvottiyur High Road, Near Wimco Nagar, Railway Station, Ernavur, Chennai – 600 057, Tamil Nadu, India

 

Gujarat

Bharat CFS Zone I, Mumnndra port and SEZ Limited, Navinal Island, Mundra, District Kutch – 370 421, Gujarat, India

           

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

Mr. Umesh Shetty

Designation :

Chief Executive Officer-Equipment Hiring

 

 

Name :

Mr. Ashit Desai

Designation :

Director – Corporate Affairs

 

 

Name :

Mr. Adarsh Hegde

Designation :

Executive Director

 

 

Name :

Mr. Shashi Kiran Shetty

Designation :

Chairman and Managing Director

 

 

Name :

Mrs. Arathi Shetty

Designation :

Executive Director    

 

 

KEY EXECUTIVES

 

Name :

Mr. Ravi Jakhar

Designation :

Vice President - Corporate Strategy

 

 

Name :

Mr. K Sridhar

Designation :

Vice President - ICD and Warehousing

 

 

Name :

Mr. Suryanarayanan S

Designation :

Group - Chief Financial Officer

 

 

Name :

Mrs. Shantha Martin

Designation :

CEO - NVOCC

 

 

Name :

Mr. T R Ramalingam

Designation :

Vice President - Projects

 

 

Name :

Mr. Hrushikesh Joshi

Designation :

Group - Chief Information Officer

 

 

Name :

Mr. Pramod Kokate

Designation :

Vice President (CFS)

 

 

Name :

Mr. P P Shetty

Designation :

HR Advisor

 

 

Name :

Mr. Jatin Chokshi

Designation :

Group - Chief Investment Officer

 

 

Name :

Mr. Shailesh Dholaka

Designation :

Company Secretary

 

 

Name :

Mrs. Darshana Mandewal

Designation :

Vice president – HR

 

 

Name :

Mr. Saurabh Sharma

Designation :

General Manager Finance

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2010

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

97320900

66.90

 

 

 

Any Others (Specify)

 

 

Trusts

3813125

2.92

 

 

 

(2) Foreign

 

 

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3717077

2.85

Financial Institutions / Banks

207129

0.16

Foreign Institutional Investors

11493673

8.81

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

3809253

2.92

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 millions

1709320

1.31

Individual shareholders holding nominal share capital in excess of Rs.0.100 millions

650039

0.50

 

 

 

Any Others (Specify)

 

 

Clearing Members

288311

0.22

Non Resident Indians

86321

0.07

Foreign Corporate Bodies

17235400

13.21

Directors & their Relatives & Friends

95410

0.07

Trusts

91010

0.07

 

 

 

Total

130516968

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Logistics Service Provider

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

GENERAL INFORMATION

 

Customers :

Individuals

 

 

Employees:

1000 (Approximately)

 

 

Bankers :

·         Axis Bank Limited, Fort, Mumbai

·         HDFC Bank Limited, Fort, Mumbai

·         Yes Bank Limited, Lower Parel, Mumbai

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Secured Loans

 

 

From Bank

 

 

Term Loans

1092.968

1052.845

(Secured by mortgage of assets of Container Freight Stations at Mumbai and Chennai: Inland Container Depots at Pithampur and Hyderabad: Hypothecation of Vehicles and Equipments)

 

 

Total

1092.968

1052.845

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

6% (Net on Tax) Fully and Compulsorily Convertible Debentures

0.000

1009.730

Total

0.000

1009.730

 

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Appan and Lokhandwala Associates

Chartered Accountants 

Address :

402, Shiv-Ahish, plot No. 10, 19th Road, Chembur, Mumbai-400071, Maharashtra, India

 

 

Joint venture :

·         Transworld Logistics and Shipping Services INC

·         Sealand Warehousing Private Limited

 

 

Associates/Subsidiaries :

·         Contech Transports Services Private Limited

·         Allcargo Belgium NV

·         Hindustan Cargo Limited

·         AGL ports Private Limited

·         Transnepal Freight Services Private Limited

·         AGL Projects Private Limited

·         AGL Terminals Private Limited

·         Asia Lines Limited

·         ECU Line (India) Private Limited

·         ECU International (Asia) Private Limited

·         ECU Line Hong Kong  Limited

·         ECU Line Singapore Private Limited

·         ECU Line Philippines Incorporation

·         ECU Line UK Limited

·         ECU Line Turkey

·         ECU Line Jordan

·         ECU Line Malta Limited

·         RMK NV

·         Conecli International SA

·         Flamingo Line El Salvador SA De CV

·         ECU Line Vietnam

·         ECU Line Spain S L Barcelona

·         ECU LINE NV

·         ECU Line Japan Limited

·         ECU Line Abu Dhabi LLC

·         ECU International Far East Limited

·         CELM Logistics SA De CV

·         ECU – Line Vietnam

·         Hindustan Cargo Limited

·         AGL Terminals private Limited

·         AGL Ports Private limited

·         AGL Projects Private limited

·         IPTS NV

·         D and E Transport NV

·         ECU Hold NV

·         ELWA (Gh) Limited

·         ECU Line (Thailand) Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.12.2009

 

Authorised Capital :

No. of Shares

Type

Value

Amount

175000000

Equity Share

Rs.2/- Each

Rs.350.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

124811265

Equity Share

Rs.2/- Each

Rs.249.623 millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2010

Sales Turnover (Approximately)

 

 

7000.000

 

Expected Sales (2010-2011) : Rs.10000.000 Millions


ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2009

31.12.2008

31.12.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

249.623

223.636

223.589

2] Share Application Money

0.000

293.622

0.000

3] Reserves & Surplus

7651.806

4435.327

3616.454

4] Employees Stock Option Outstanding

16.474

16.187

15.001

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7917.903

4968.772

3855.044

LOAN FUNDS

 

 

 

1] Secured Loans

1092.968

1052.845

243.792

2] Unsecured Loans

0.000

1009.730

0.000

TOTAL BORROWING

1092.968

2062.575

243.792

DEFERRED TAX LIABILITIES

265.503

200.096

101.592

 

 

 

 

TOTAL

9276.374

7231.443

4200.428

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

4102.514

3151.630

2100.868

Capital work-in-progress

617.527

594.484

405.169

 

 

 

 

INVESTMENT

2003.429

1152.174

1140.591

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000
0.000

0.000

 

Sundry Debtors
728.594
713.341

456.257

 

Cash & Bank Balances
203.472
326.000

146.941

 

Other Current Assets
28.506
19.974

14.964

 

Loans & Advances
2461.317
1983.046

405.504

Total Current Assets
3421.889

3042.361

1023.666

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
159.201
199.408

137.886

 

Other Current Liabilities
624.746
431.261

246.655

 

Provisions
85.038
79.029

86.231

Total Current Liabilities
868.985
709.698

470.772

Net Current Assets
2552.904
2332.663

552.894

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.492

0.906

 

 

 

 

TOTAL

9276.374

7231.443

4200.428

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2009

31.12.2008

31.12.2007

 

SALES

 

 

 

 

 

Income

5167.562

5167.914

3600.478

 

 

Other Income

153.425

137.609

44.837

 

 

TOTAL                                    

5320.987

5305.523

3645.315

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Multimodal Transport Operations

2406.563

2639.478

 

 

Container Freight Stations

464.405

365.867

 

 

 

Equipment Hire

158.057

147.782

 

 

 

Employee Cost

357.829

341.794

2820.115

 

 

Administrative Expenses

344.754

402.729

 

 

 

Preliminary Expenses Written Off

0.843

0.414

 

 

 

TOTAL                                    

3732.451

3898.064

2820.115

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

1588.446

1407.459

825.200

 

 

 

 

 

Less

INTEREST                               

149.636

124.474

20.952

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                  

1438.810

1282.985

804.248

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

376.338

254.686

142.019

 

 

 

 

 

 

PROFIT BEFORE TAX

1062.472

1028.299

662.229

 

 

 

 

 

Less

TAX                                                                 

84.418

164.249

116.557

 

 

 

 

 

 

PROFIT AFTER TAX                

978.054

864.050

545.557

 

 

 

 

 

 

TAX ADJUSTMENT FOR EARLIER YEAR

1.746

(0.071)

(0.024)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1708.620

942.366

545.441

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend 

62.416

0.000

40.512

 

 

Tax on Interim Dividend 

10.608

0.000

6.885

 

 

Proposed Dividend

62.423

55.909

67.088

 

 

Tax on Proposed Dividend

10.609

9.502

11.402

 

 

General Reserve

100.000

95.000

75.000

 

BALANCE CARRIED TO THE B/S

2442.364

1708.620

942.366

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.53

38.65

--

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

1621.640

1965.230

1778.960

 Total Expenditure

1231.900

1519.490

1353.220

 PBIDT (Excl OI)

389.740

445.740

425.740

 Other Income

76.940

87.170

92.300

 Operating Profit

466.680

532.910

518.040

 Interest

29.940

36.460

42.330

 Exceptional Items

0.000

0.000

0.000

 PBDT

430.740

496.450

475.710

 Depreciation

147.350

9.010

126.200

 Profit Before Tax

289.390

487.450

349.510

 Tax

29.790

96.000

71.330

 Reported PAT

259.600

391.450

278.180

Extraordinary Items       

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

259.600

391.450

278.180

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2009

31.12.2008

31.12.2007

PAT / Total Income

(%)

18.38

16.29

14.97

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

20.56

19.90

18.39

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

14.12

16.60

21.19

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.21

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.25

0.56

0.19

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.94

4.29

2.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details:

 

Particulars

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

31.03.2008

Sundry Creditors Total Outstanding Dues to:

 

 

 

Micro, Small or Medium Enterprises

0.000

0.000

0.000

Others

159.201

199.408

137.886

 
 
 

REVIEW OF OPERATIONS:

 

The year was challenging and opportunistic for the  Company.  In  spite  of global economic turmoil and slower  industrial  growth,  the  Company  witnessed  an  improved performance on all  parameters.  This  was  possible   because  of  focused  management  approach,  efficient   project  execution,  reduction  in cost and prudent financial  and  human  resources  management.

 

STAND-ALONE PERFORMANCE:

 

The Company has achieved a turn over of Rs. 5,167.56 million and earned  a  net  profit  of Rs 978.05 million as compared to turnover  of  Rs  5,167.91  million  and net profit of Rs. 926.73 million in preceding financial  year,  representing 5.54% growth in net profit. Earnings before interest, tax  and  depredation  (EBITDA)  is  Rs 1,588.45 million as compared  to  Rs  1407.46  million in preceding financial year, representing 1286% growth

 

SHARE CAPITAL AND LISTING OF SHARES

 

During  the  year  the  Company  had  issued  and  allotted  2,594,595  equity  shares of Rs.10 each at a premium of Rs.924  per  equity  share upon conversion of Fully and

 

Compulsorily  Convertible  Debentures  and Warrants  issued  to  Blackstone  Entities  on preferential basis. The Company further issued  and  allotted  4,047  equity  shares of Rs 10 each to its employees  against  exercise  of  options granted to them under AI (cargo Employee Stock Option Plan 2006'

 

In  November  2009, the Company subdivided the face value  of  its  equity  shares  from Rs 10 per equity share to Rs.2 per equity share.  Accordingly,  the  issued,  subscribed  and paid up share capital of the  Company  as  on  December  31,  , 2009 after sub-division was Rs  249,622,530  divided  into  124,811,265 equity shares of Rs.2 each

 

The Company has increased the Authorised Share Capital from Rs 300,000,000  divided  into  150,000,000  equity shares of Rs.2  each  to  Rs.350,000,000  divided into 175,000,000 equity shares of Rs.2 each

 

The  Equity  Shares  of the Company are listed  and  traded  in  compulsory  dematerialized  form on the Bombay Stock Exchange Limited and the  National  Stock  Exchange of India Limited. The Company has paid the Annual Listing  fee and Annual Custody fees to the Stock Exchanges and Depositories  up-to- date.

 

AMALGAMATION

 

With a view to consolidate logistic business under one roof and for  better  administration,  control  and  management,  the  Company  has  decided  to  amalgamate  Sealand Terminals Private Limited, a wholly owned subsidiary  of  the  Company, with itself with effect from April 1, 2009, pursuant to the Scheme  of  Arrangement  made  under  Sections 391  to  394  and  other  applicable  provisions of the Companies Act, 1956

 

The Company has presented the Scheme of Arrangement to the Hon'ble  Bombay  High  Court  for issue of necessary directions for holding  /  dispensation  from  holding  meetings of its shareholders and  creditors  and  thereafter  approval of the Scheme.

 

The  present financial statements do not contain the financials of  Sealand  Terminals Private Limited effect of which will be given on approval of the Scheme  by the Hon'ble Bombay High Court.

 

AWARDS AND RECOGNITION

 

The  Company  has  been  awarded 'Company of the  Year  in  the  Logistics  Category' at the prestigious 'NDTV Profit Business Leadership  Awards-2009'  held in Mumbai on October 26, 2009. In another noteworthy achievement  the  company  has  been  the  finalist for the  esteemed  'Lloyd's  List  Global  Logistics Company Awards.'

 

The  Company believes that wining of such recognition was due to the  hard  work, passion and spirit of team work of the employees and thought leaders,  whose  novel  thinking  and innovative approach have  led  them  to  attain  excellence   in  their  field  This  further  underscores  the   Companies  contribution to the Global Logistics Landscape.

 

Mr.  Shashi Kiran Shetty, Chairman and Managing Director, of  the  Company  was  also  awarded  as the 'Entrepreneur of the  Year'  for  excellence  in  services  by Ernst and Young. He dedicated his award to all the employees of  the Company who dedicated themselves to help him to achieve this honor.  He also thanked all the stakeholders for supporting him and believing in  the  Company.

 

DIRECTORS

 

Mr. Shashi Kiran Shetty was appointed as Managing Director of  the  Company  for  a period of 5 years commencing from April 1, 2005. In accordance  with  the  terms  of  his appointment, his term of office  expired  on  close  of  business  hours  on  March 31, 2010. However, he continues to  act  as  the  Director of the Company.

 

Looking  at  the efforts put by Mr. Shashi Kiran Shetty in  developing  and  expanding the business operation of the Company and the growth and progress  made  by  the  Company  under his leadership on year  on  year,  the  Board  recommends re-appointment of Mr. Shashi Kiran Shetty as Chairman and Managing  Director  of  the Company for further period of five years  effective  form  April 1, 2010 on the terms and condition and remuneration recommended by  the  Remuneration Committee of the Company.

 

In  accordance with the provisions of the Companies Act, 1956 and  that  of  Articles  of  Association  of the Company, Mr Keki Elavia  and  Mr.  Satish  Gupta,  Directors of the Company, retire by rotation at the ensuing  Annual  General   Meeting.  Being  eligible,  they  offered  themselves   for   re- appointment. The Board recommends their reappointment

 

Brief  resume of Mr. Shashi Kiran Shetty, Mr. Keki Elavia, and  Mr.  Satish  Gupta  as required in terms of Clause 49 of the Listing Agreement with  the  Stock Exchanges, is included in the Corporate Governance.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMY OVERVIEW

 

The Indian economy seems to have gained a strong foothold on the  recovery  path backed by timely and aggressive policy responses by the Government and  the  RBI to tackle the crisis and bring about a turn around in consumer  as  well  as business sentiment. However, some down-side risks in the  form  of  inflation,  concerns  regarding a double dip recession  in  some  developed  economies,  and  their implications on the Indian economy  and  its  global  trade  do persist In a dynamic economic environment, like the one  they  have  been witnessing over the last 2 years, it becomes imperative for businesses  to track the macro economic performance on an ongoing basis.

 

Going in to the new financial year, the growth looks sustainable  supported  by  factors  such  as rising consumption  and  investment  levels,  exports  moving  to positive territory and comfortable liquidity position. Focus  on  infrastructure  spending  by the Government and an increase  in  investment  demand  by  corporates  along with improved consumption  would  provide  an  Impetus  to  industrial production. However, the risks due to  decline  in  agricultural GDP in Q3 and Q4 and weakening impact of stimulus measures  on  manufacturing sector continue to be a concern. Another cause of concern  is  that  the agricultural growth rate might continue to remain  negative  even  as  the  services  and  industrial sector  may  grow  at  9.5-10%,  further  aggravating  the  supply  shock  and  fuelling  inflation.  With  inflation  expected to remain at double-digit levels in the first few months of FY II,  the  RBI  might  take  some  measures  aimed  at  arresting  the   mounting  inflationary  pressure,  though  in acalibrated  manner  without  affecting  growth.

 

In  the global scenario, it looks a mixed bag with the  advanced  economies  still  making  their  way  out of the  downturn  amidst  fresh  fears  from  Portugal, Italy, Greece and Spain. However, India and China are set to lead the  world economy out of the downturn. From an investment  perspective,  a  lot  of funds which were invested in Gold last year, will come back to  the  manufacturing  and services industry in Asia China especially looks  poised  to overtake Japan this year as the world's second-largest economy after the  United States The World Bank raised its fore cast for China to 9.5 per cent  growth  for  2010 from the 8.7 per cent it projected in  November.  A huge  stimulus  package and ample lending by China's government-controlled  banks  helped its economy avoid a recession last year. China grew 8.7 per cent  in  2009,  less than in previous years but still a huge gain,  especially  when  compared  with  the  drop in gross domestic product  that  hit  most  other  leading  economies. However China still remains an export  driven  economy,  unlike  India  which has a huge domestic consumption and  self  sustainable  demand.

 

Corporate  India  had great expectations from the budget this year  as  the  economic  recover/ mainly dueto government stimuli, is still at  a  nascent  stage.  The time was good to introduce some significant reforms.  The  plan  towards  fiscal  consolidation  though  involves a  partial  roll  back  of  stimulus  package, will help to strengthen the macro-economic  fundamentals  of  the economy. They are positive on consumption push due to increased  fund  allocations on various rural development schemes and infrastructure  growth  plans including road, rails, ports, airports, oil and gas and power.

 

INDUSTRY OVERVIEW

 

The Indian logistics industry accounts for a mere 2% ($ 100 billion) of the $5,000-billion global logistics industry. Owing to general  inefficiencies, logistics  is  a  high-cost activity in India  compared  to  the  developed  nations. The country has the second largest network of roads (3.83 million km after  US's 6.43 million

 

 

UNAUDITED FINANCIAL RESULTS

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST MARCH, 2010

 

                                                                                                                                                    (Rs. in Millions)

SR. NO.

PARTICULARS

QUARTER ENDED

YEAR ENDED

 

 

31.03.2010

(Unaudited)

31.03.2009

(Unaudited)

31.12.2009

(Audited)

1

Income from Operations

1640.188

1280.247

5167.562

2

Operating Income

1016.693

746.100

23029.115

3

Staff Cost

103.816

85.785

357.829

4

Other Expenditure

102.022

91.777

345.597

5

Gross Profit

417.657

356.588

1435.021

6

Depreciation

120.325

83.930

376.338

7

Operating Profit before Interest

297.332

272.658

1058.683

8

 Interest

23.396

43.330

149.636

9

Exceptional Items net of tax

 

 

 

10

Operating profit after interest and Exceptional Items

 

 

 

 

Exceptional Items

273.936

229.328

909.047

11

Other Income

50.654

40.185

153.425

12

Profit from ordinary activities before tax

324.590

269.513

1062.472

13

Tax Expenses

 

 

 

 

-Current Tax

55.200

30.330

168.919

 

-Fringe Benefit Tax

 

1.721

3.630

 

-Deferred Tax

25.821

20.903

65.407

 

-Mat Entitlement

(41.303)

(0.276)

(153.538)

14

Net Profit form ordinary activities after tax

284.872

216.835

978.054

15

Extra Ordinary prior period items

 

 

1.746

16

Net profit

284.872

216.835

979.800

 

Less: Minority Interest

 

 

 

 

Net profit minority interest

284.872

216.835

979.800

17

Paid up Equity Share Capital

249.691

223.657

249.623

18

Reserves (excluding Revaluation Reserve)

 

 

7651.806

19

Earnings Per Share (Not annualized)

 

 

 

 

Before Extraordinary Items (face value of Rs.2 per equity share, Rs.10 per equity share of previous year)

 

 

 

 

-Basic

2.28

12.05

8.53

 

-Diluted

2.28

11.46

8.53

 

After extraordinary item (face value of Rs.2 per equity share for previous year)

 

 

 

 

-Basic

2.28

12.05

8.54

 

-Diluted

2.28

11.46

8.53

20

Operating cash earning per share (face value of Rs.2 per equity share, Rs.10 per equity share of previous year)

 

 

 

 

-Basic

3.12

16.73

11.04

 

-Diluted

3.12

15.65

11.03

21

Public Shareholding

 

 

 

 

-Number of shares

33711240

4138859

33677240

 

-% of shareholding

27.00%

18.51%

26.98%

22

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

-Number of shares

Nil

Nil

Nil

 

-Percentage of shares (as a % of the shareholding of promoter and promoter group)

Nil

Nil

Nil

 

-Percentage of shares (as a % of the total share capital of the company)

Nil

Nil

Nil

 

b) Non-encumbered

-Number of shares

91134025

18226805

91134025

 

-Percentage of shares (as a % of the shareholding of promoter and promoter group)

100.00%

100.00%

100.00%

 

-Percentage of shares (as a % of the total share capital of the company)

73.00%

81.49%

73.02%

 

 

segmentwise revenue, results and capital employed (standalone) for the

 

quarter ended march 31, 2010

 

                                                                                                                                                    (Rs. in Millions)

SR. NO.

PARTICULARS

QUARTER ENDED

YEAR ENDED

 

 

31.03.2010

(Unaudited)

31.03.2009

(Unaudited)

31.12.2009

(Audited)

1

Segment Revenue

 

 

 

 

a. Multimodal Transport Operations

1036.218

810.697

3176.617

 

b. Container freight station operations

446.768

349.207

1532.008

 

c. Equipment Hiring Division

198.036

159.817

628.208

 

Less: Inter Segment Revenue

40.835

39.475

169.271

 

Total

1640.187

1280.246

5167.562

2

Results

 

 

 

 

Profit Before Tax, Interest And Exceptional Items

 

 

 

 

a Multimodal Transport Operations

127.376

100.668

421.205

 

b. Container Freight Station Operations

213.756

176.648

780.417

 

c. Equipment Hiring Division

43.500

59.461

170.923

 

Total

384.632

336.777

1372.545

 

Less

 

 

 

 

i. Interest

(23.396)

(43.330)

(149.634)

 

ii. Other Unallocable Expenditure

(87.300)

(64.120)

(313.864)

 

Add

 

 

 

 

i. Other Unallocable Income

50.654

40.186

153.425

 

Profit Before Tax And Exceptional Items

324.590

269.513

1062.472

3

Capital Employed

 

 

 

 

a. Multimodal Transport Operations

709.494

868.641

827.805

 

b. Container freight station operations

1884.853

1717.096

1879.057

 

c. Equipment Hiring Division

2256.576

1373.732

1738.588

 

Total

4850.923

3959.469

4445.450

 

note:

 

STANDALONE FINANCIAL RESULTS

 

1. The above results were reviewed by the audit committee and approved by the board of directors of the company at its meeting held on may 5, 2010, limited review as required under clause 41 of the listing agreement has been completed by statutory auditors of the company.

 

2. The income tan department issued assessment orders for the company, whereby, the claim of deduction by tine company under section 80-IA (4) was disallowed from assessment years 2004-05 onwards. The company has fled an appeal against the assessment orders before commissioner of income tax (appeals). Accordingly, the income tax liability of the company pending in appeal and not provided for is Rs. 650 millions. The company has been advised that it has a sound defense in this matter; hence the company has continued to provide current tax under the provisions of minimum alternate tax.

 

3. During the quarter, the company slotted 34,000 equity shares of Rs.2 each to the employees of the company against exercise of options granted under the ESOP scheme of the company.

 

4. The committee of directors at its meeting field on April 29, 2010, ha allotted 5,663,105 equity shares of Rs.2 each at a price of Rs.184.80 each to qualified institutional buyers (QLBs) in accordance with chapter viii of the securities arid exchange board of India (issue of capital and disclosure requirements) regulations, 2009. As amended.

Pursuant is allotment of equity shares as mentioned is point no. 3 & 4, the issued, subscribed and paid up capital of the company has increased tiers Rs.249,622,530 divided into 124,811,265 equity shares of Rs.2 each to Rs.261 ,016,740 divided into 130,508,370 equity shares of Rs.2 each.

 

5. Pursuant to the direction received from the Hon’ble Bombay high court, a meeting of the equity shareholders of the company has been convened on Thursday, may 20, 2010 at 11.30 a.m. At the registered office of the company for the purpose of considering and, it thought fit, to pass with or without modification(s), the scheme of arrangement between Allcargo Global Logistic Limited and Sealand Terminals Private Limited and their respective shareholders and creditors.

 

6. The company has approved amalgamation of Sealand Warehousing Private Limited, a joint venture company in which company holds 50% equity stake, with Gujarat Integrated Maritime Complex Private Limited, the subsidiary of Sealand Warehousing Private Limited With effect from April 1, 2009. Subject to approval of Hon’ble high courts of judicature at Bombay and Ahmedabad.

 

7. Operating cash earning per share calculated by adding deterred tax, depredation and MAT entitlement to profit after tax and dividing by outstanding shares.

 

8. There were no complaints pending at the beginning of the quarter. No complaints received during the quarter and no complaint pending at the end of the quarter.

 

9. Figures for the previous period / year have been regrouped / restated, wherever necessary

 

 

fixed assets

 

·         Freehold Land

·         leasehold Land

·         Buildings

·         Commercial Vehicles

·         Plant and Machinery

·         Buildings

·         Office Equipments

·         Software packages

 

 

AS PER website details

 

PROFILE

 

Established in 1993, the company has emerged as a leading Logistics service provider today. In just 15 years of its existence the Company has entrenched itself well, not only on the Indian logistics scene, but also at a global level achieving a global footprint through the acquisition of the Belgium based ECU Hold NV. The company  is the leading LCL (Less than Container Load) consolidator in India offering direct outbound and inbound LCL groupage services to and from major cargo destinations worldwide.

 

At the company, the customer remains the focal point in the formulation of services that can be provided. This emphasis has led to a constant innovation in the services that they  provide which in turn have enhanced their performance standards. They  have added a host of services to their existing portfolio and have emerged as an integrated logistics player in the country. Their aim is to be a preferred and trusted partner in providing integrated logistics solutions.

 

The company’s present operations are in seven key areas of the logistics business:

  • Multi-modal Transport Operations
  • Container Freight Stations
  • Project and ODC Cargo Handling
  • Airfreight
  • Transport Logistics
  • Equipment Hiring
  • Oil Rig and Supply Vessels Management

 

Board of Director    

 

Mr. Shashi Kiran Shetty -  Chairman and Managing Director

 

Mr. Shetty holds a Bachelor of Commerce degree. Being a first generation entrepreneur formed the Company in 1993. Mr. Shetty also holds directorships in other group companies.

 

Experience and Skills

 

In 1978, Mr. Shetty started his career in logistic industry with Intermodal Transport and Trading Systems Private Limited and then moved to Forbes Gokak, a Tata group company, where he gained hands on experience in port related operations. With his strong entrepreneur skills and business acumen in logistic industry, he started his own business in 1982 under a firm being Transindia Freight Services. In the year, 1993, Mr. Shetty stepped into freight forwarding and LCL consolidation business by incorporating All Cargo Movers (India) Private Limited (now known as Allcargo Global Logistics Limited). Under the leadership of Mr. Shetty, the company is one of the leading players in logistic space.

 

Mrs. Arathi Shetty – Executive Director

 

Mrs. Shetty holds a Bachelor of Arts degree and is associated with the business since 1988. Mrs. Shetty also holds directorships in other group companies.

Experience and Skills

 

Mrs. Shetty has a vast experience of over seventeen years in the logistic field and has an understanding of the intricacies of their business especially in handling customer relationship and other related issues.

 

  

Mr. Adarsh Hegde – Executive Director

 

Mr. Adarsh Hegde holds a Mechanical Engineering degree. Mr. Hegde was appointed as an Executive Director of the Company w.e.f. August 21, 2006.

 

Experience and Skills

 

Worked with Eastern Ceramics Private Limited as Assistant Maintenance Engineer for a period of 2.5 years. Joined Transindia Freight Services Private Limited, one of the group companies in 1988. Mr. Hegde has a tremendous experience in MTO, CFS and Project Cargo Division of the Company and has played a very significant role in the growth of the Company through his business acumen and leadership qualities.

 

Mr. Umesh Shetty – Executive Director

 

Mr. Umesh Shetty, Age 42, holds Bachelor of Commerce degree and has a wide and rich experience of more than 17 years in the fields of cargo and logistic business.

 

Experience and Skills

 

Mr. Umesh Shetty started his career with M/s Transindia Freight Services Private Limited (TFSPL), a company engaged in the business of hiring of material handling equipment and transportation of container and general cargo, car and equipment hiring and investments. With his strong entrepreneur skills and business acumen in logistic business, TFSPL has achieved various milestones and has registered sharp growth both in terms of business and shareholders value. Mr. Umesh Shetty is also director on the Board of Alltrans Logistics Private Limited and Indport Maritime Agencies Private Limited.

 

  

Mr. Kaiwan Kalyaniwalla – Non-executive Independent Director

 

Mr. Kalyaniwalla is a Solicitor by profession and is a Partner of Mumbai based law firm, M/s. Maneksha and Sethna, Advocates and Solicitors. Also enrolled as a Solicitor of the Supreme Court of England and Wales. Mr. Kalyaniwalla was appointed as an Independent Director of the Company w.e.f. June 30, 2005.

 

Experience and Skills

 

His expertise of practice is in the field of corporate law, property law, taxation and general commercial law. He is on the board of various companies and advises private sector corporates, multinational banks, transport and logistics companies and some of India’s largest property development companies and business houses.

 

Mr. Keki Elavia- Non-executive Independent Director

 

Mr. Elavia is a Chartered Accountant by profession having thirty four years of post qualification experience with M/s. Kalyaniwalla and Mistry, Chartered Accountants, Mumbai. He was appointed as an Independent Director of the Company w.e.f. January 14, 2006.

 

Experience and Skills

 

He joined M/s. Kalyaniwalla and Mistry, Chartered Accountants as an employee in 1971 and became a partner in 1974. Mr. Elavia has expertise in accounting, audit, finance and taxation matters. He is a member of the Corporate Governance and Audit Committee of the HongKong and Shanghai Banking Corporation, Mumbai.

 

Mr. Satish Gupta- Non-executive Independent Director

 

Mr. Gupta is a Science Graduate and an industrialist. He was appointed as an Independent Director of the Company w.e.f. January 14, 2006.

 

Experience and Skills

 

Mr. Gupta has got vast experience and understanding of the engineering business. Mr. Gupta was instrumental in taking his engineering business from the domestic market to international markets by making it a hundred percent export oriented firm. His firm is currently one of the leading exporters of Engine parts.

  

Mr. Rajiv Sahney - Non-executive Independent Director

 

Mr.Rajiv Sahney is a MBA from IMEDE and BS (Physics) from California Institute of Technology. He was appointed as an Independent Director of the Company w.e.f. August 21, 2006.

 

Experience and Skills

 

Mr. Sahney is the founder and Managing Partner of N V ADVISORY SERVICES, a firm providing financial advisory services and investing advice to New Vernon Capital among others. He is also Chairman of the Board and founder of Medusind Solutions, a business process outsourcing company serving the US healthcare market. Prior to Medusind, he was the Managing Director of Antfactory (India), which invested in various early stage companies. Before that he was the CEO of the Sahney Group of Companies, a Rs.1 Bn family owned group which manufactures electrical engineering components and is also involved in real estate and investing. He started his career as a Consultant with Bain and Company.

 

Mr. Sahney is a member of the Young Presidents Organization, Bombay Chapter since 1999. He is currently the South-Asia Regional Vice Chair and takes over as the Regional Chair in June 2008.

 

  

Mr. Akhil Gupta – Executive Director

 

Mr. Gupta received his B.Tech degree in Chemical Engineering, with distinction, from the Indian Institute of Technology, Delhi in 1973 and an MBA from the Graduate School of Business, Stanford University in 1981.

 

Experience and Skills

 

Mr. Akhil Gupta is a Senior Managing Director and Chairman of Blackstone India and is based in Mumbai.

 

Mr. Gupta’s primary role is to source and manage private equity transactions in India. In addition, he provides support for Blackstone’s other businesses, including real estate and corporate advisory services.

 

Before joining Blackstone, Mr. Gupta served as CEO- Corporate Development for Reliance Industries Limited and Reliance Infocomm Limited. During Mr. Gupta’s tenure, the Reliance group was India’s largest private sector business house with diversified interests in petrochemicals, energy, power, telecom, and financial services. Mr. Gupta’s efforts at Reliance were focused on developing Reliance’s oil and gas, refining, and telecom businesses.

 

Mr. Gupta began his career at Hindustan Lever, India’s largest multi-national corporation. From 1981 to 1992 he worked in the U.S, first in consulting with Strategic Planning Associates and ICF in Washington D.C., then as Senior Vice President and Chief Financial Officer of Krauses Sofa (an integrated retailer and manufacturer of furniture), and after that as Chief Financial Officer and Chief Operating Officer of Stylus Inc. (another integrated retailer and manufacturer of furniture).

 

press Release

 

Shashi Kiran Shetty wins E&Y “Entrepreneur of the Year” award 2009 in services category

 

Mumbai, Feb 16: Mr Shashi Kiran Shetty- Chairman and Managing Director Allcargo Global Logistics Limited was awarded with the Entrepreneur of the Year award in the services field at the Ernst and Young Awards 2009, which was announced at a function held at Taj Lands End Mumbai on 16th Feb 2010. The award has been presented by the former Chief Minister of Madhya Pradesh Mr. Digvijay Singh in presence of the all leading business icons of the country.

 

The Entrepreneur of the year award – Overall category has been conferred to Mr. Anand Mahindra from M and M group and the seven other eminent entrepreneurs have been chosen in the categories of Services, Start-up, Business Transformation, Manager, Lifetime Achievement, Manufacturing and Healthcare and Life Sciences from 17 entrepreneurs short-listed by a jury of six headed by The Damodaran Group chairman, N Damodaran. Other jury members were FICCI Director General, Amit Mitra; HSBC India Country Head, Naina Lal Kidwai; Accel Partners’ Managing Partner, Neeraj Bhardwaj; The Oberoi Group’s Chairman and CEO, P R S Oberoi, and Ashok Leyland MD, R Seshasayee.

 

Mr Shashi Kiran Shetty on receiving the award stated “I am really happy that the consistent performance and our efforts to serve our customers better has been recognized by such an eminent and learned jury at this platform. I believe that we will continue to alter the standards of customer services through excellence and innovative approach and keep-on scaling new heights”. He also thanked the customers for their continuous encouragement and motivation, which has helped Allcargo to advance the standards of service quality to new levels.

 

Mr. Shetty dedicated this award to all employees, thought leaders and investors, who have always stood by him in this pursuit of excellence through the years. He stated that he is humbled with this honour and he takes great pride in leading such a motivated team.

 

“The winners are outstanding individuals who have not only built best-in-class businesses, but have demonstrated tremendous resilience and tenacity in dealing with uncertainty, and have also displayed the ability to put India back on track quickly,” said Ernst and Young CEO and Country Managing Partner, Rajiv Memani. Ernst and Young India launched the awards in 1999. Earlier recipients of the award include N R Narayana Murthy, Ratan Tata, Mukesh Ambani, Sunil Bharti Mittal, Brijmohan Lall Munjal, Kumar Mangalam Birla, Subhash Chandra, Anil Agarwal and Tulsi Tanti.

 

 

EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2009

 

Q4CY2009 – Highlights

 

  • MTO EBIT is Rs. 74.52 million for the fourth quarter ended December 31, 2009, an increase of 32% as compared to the corresponding quarter last year.
  • ICD and CFS EBIT is Rs. 220.43 million for the fourth quarter ended December 31, 2009 .
  • Equipment Hiring EBIT is Rs. 39.62 million for the fourth quarter ended December 31, 2009.
  • Operating Profit was Rs. 369.73 million for the fourth quarter ended December 31, 2009, an increase of 29% as compared to the corresponding quarter last year.
  • Operating Profit Margin improved to 6.80% from 4.05% as compared to the corresponding quarter last year.
  • Net Profit was Rs. 311.21 million for the fourth quarter ended December 31 2009, an increase of 165% as compared to the corresponding quarter last year.

 

 

CY2009 – Highlights

 

  • MTO EBIT is Rs. 407.89 million for CY 2009, registering a growth of 17%, as compared to last year.
  • ICD & CFS EBIT is Rs. 770.42 million for CY 2009.
  • Equipment Hiring EBIT is Rs. 170.86 million for CY 2009.
  • Operating Profit is Rs. 1738.67 million for CY 2009. Operating Profit Margin improved to 8.50% from 7.56% as compared to last year.
  • Net Profit is Rs. 1489.90 million for CY 2009, an increase of 22% as compared to last year.
  • Added 15 new cranes, of capacities ranging between 50 to 500 tons, with an investment of Rs. 630 million.
  • Acquired the remaining stake held by minority shareholders in some of our ECU subsidiaries; thereby independently controlling the operations in regions that have high growth potentials.
  • The Board of Directors, in its meeting on January 25, 2010 ; has approved amalgamation of Sealand Terminals Pvt. Ltd., the wholly owned subsidiary of the Company, with the Company w.e.f April 1, 2009, subject to obtaining necessary approval of Stakeholders and Hon’ble Bombay High Court.

 

 

Mumbai, India; January 25, 2010 – Allcargo Global Logistics Limited (Allcargo) today reported fourth quarter consolidated revenues of Rs. 5435.62 million. The consolidated operating profit stood at Rs. 369.73 million. Profit before tax for the quarter was Rs. 338.05 million; while Net Profit is Rs. 311.21 million.

 

The Board of Directors in its meeting held today, has taken on record the unaudited consolidated financial results of Allcargo and its subsidiaries for the quarter ended December 31, 2009.

 

Mr. Shashi Kiran Shetty, Chairman and Managing Director stated, “Commendable performance of all our verticals continue to drive the growth. Allcargo finished the fourth quarter of C Y2009 with robust growth.

 

Most of you are aware of the exciting opportunities ahead of us in the logistics business. We are making the right investments in capturing a larger share of the logistic business both within India and globally. With the economic environment gradually improving, the coming years hold a lot of promise and we are confident of delivering long term shareholder value.”

 

Mr. S. Suryanarayanan, Group CFO commented that, “We have shown robust growth in our Q4CY2009 performance compared to Q3CY2009, specifically in ECU Line, Domestic MTO, CFS/ICD and Equipment Hiring businesses. We continued to gain our market share in the logistics genre. Allcargo has maintained its top position in MTO segment during the quarter, and an average share of 12% within the general logistics segment.

 

SEGMENT PERFORMANCE

 

Allcargo operates in three segments (i) MTO, (ii) ICD & CFS and (iii) Equipment Hiring and revenues are generated primarily from these segments. Other Income includes Business Support Charges, Management Fees, Interest and profit on sale of investment & assets. The following table sets forth the percentage of revenues that each activity contributes to consolidated revenues for the fouth quarter of CY2009 and CY2008.

 

Segment (Standalone )

% of total revenues

Q4CY2009

Q4CY2008

MTO Revenue

58%

59%

ICD & CFS Revenue

30%

28%

Equipment Hiring Revenue

12%

13%

 

Volume Details

 

Indian MTO

 

Particulars (in TEUs)

Indian MTO

ECU Line

 

Q4CY2009

Q4CY2008

Q4CY2009

Q4CY2008

Export 

4496

4339

19640

21370

Import 

2224

2526

21495

29567

Total 

6720

6865

41135

50937

 

 

CFS

 

Particular (in TEUs)

Q4CY09

Q4CY08

JNPT

Chennai

Mundra

Total

JNPT

Chennai

Mundra

Total

Exports    

1899

3972

4894

10765

1622

2786

1773

6181

Imports       

26358

10118

915

37391

25242

7642

643

33527

Total     

28257

14090

5809

48156

26864

10428

2416

39708

 

 

Caution Concerning Forward-Looking Statements

 

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. Allcargo Global Logistics Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

 

About Allcargo

(BSE Code: 532749) (NSE Code: ALLCARGO) (Reuters Code: ALGL.BO) (Bloomberg Code: AGLL@IN)

 

Established in 1993, Allcargo is a leading Logistics service provider, being the world’s second largest less than container load (LCL) player. Allcargo also has a presence in CFS/ICD sector with four operational facilities at Mumbai, Chennai, Mundra and Indore. With the merger of the equipment division of Transindia Freight Services Pvt Limited, Allcargo has a significant presence in the specialized equipment hiring business and project logistics sector. Being the market leader in the all its business segments, which reflects the performance of Allcargo.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.20

UK Pound

1

Rs.72.24

Euro

1

Rs.63.09

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

yes

--OTHER MERIT FACTORS

YES/NO

yes

TOTAL

 

68

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.