MIRA INFORM REPORT

 

 

Report Date :

30.11.2011

 

 

 

 

Tel No:

02143221200

Fax No:

02143221704

 

IDENTIFICATION DETAILS

 

Name :

ALLCARGO LOGISTICS LIMITED

 

 

Formerly Known As :

ALLCARGO GLOBAL LOGISTICS LIMITED

 

 

Registered Office :

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

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

18.08.1993

 

 

Com. Reg. No.:

11-073508

 

 

Capital Investment/ Paid-up Capital:

Rs. 261.034 Millions

 

 

CIN No.:

[Company Identification No.]

L63010MH2004PLC073508

 

 

Legal Form :

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

 

 

Line of Business :

Logistics Service Provider.

 

 

No. of Employees:

635 (Approximately)

 

 

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 30000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial positions of the company appears to be sound. 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 at 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

LOCATIONS

 

Registered Office :

5th Floor Diamond Square Cst Road, Kalina Santacruz (East), Mumbai – 400098, Maharashtra, India

Tel. No.:

91-22-66798100

Fax No.:

91-22-66798195

E-Mail :

shailesh.dholakia@allcargoglobal.com

umbai.info@allcargoglobal.com

Website :

http://www.allcargoglobal.com

 

 

Branches :

Located at:

 

  • Mumbai
  • Uran
  • Ahmedabad
  • Bangalore
  • Chennai
  • Cochin
  • Goa
  • Hyderabad
  • Jaipur
  • Kanpur
  • Kolkata
  • Ludhiana
  • Moradabad
  • Nagpur
  • New Delhi
  • Panvel
  • Tuticorin
  • Pune
  • Baroda
  • Jodhpur

 

 

Container Freight Stations :

Located at:

 

  • Maharashtra
  • Gujarat
  • Chennai
  • Noida
  • Madhya Pradesh

 

 

DIRECTORS

 

As on 31.12.2010

 

Name :

Mr. Mohan Sharma

Designation :

Director – Human Resources (Group)

 

 

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. Umesh Shetty

Designation :

Chief Executive Offices – Project and Engineering Solutions

 

 

Name :

Mr. Kenneth Eccles

Designation :

Chief Executive Offices – Logistics

 

 

Name :

Mr. Suryanarayanan S

Designation :

Group – Chief Financial Officer

 

 

Name :

Mrs. Shanta Martin

Designation :

CEO – ISC and Middle East

 

 

Name :

Mr. Mukundan K V

Designation :

Chief Assurance and Risk Executive

 

 

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. Govindrajan B

Designation :

Senior Vice President – Corporate Strategy and Business Development

 

 

Name :

Mr. Upvinder Singh

Designation :

Senior Vice president – Projects

 

 

Name :

Captain Ashok Kumar Srivastava

Designation :

Senior Vice President – Shipping

 

 

Name :

Mr. Alok Roy

Designation :

Vice President – CFS/ ICD

 

 

Name :

Mr. Nishant Kolgaonkar

Designation :

Vice President – HR

 

 

Name :

Mr. Harish N Singh

Designation :

Vice President – Project Logistics

 

 

Name :

Mr. Shailesh Dholakia

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2011)

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

87,320,900

66.89

Any Others (Specify)

3,813,125

2.92

         Trusts

3,813,125

2.92

Sub Total

91,134,025

69.81

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

91,134,025

69.81

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

891,394

0.68

Financial Institutions / Banks

196,289

0.15

Foreign Institutional Investors

14,537,880

11.14

Sub Total

15,625,563

11.97

(2) Non-Institutions

 

 

Bodies Corporate

3,350,789

2.57

Individuals

 

 

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

2,156,279

1.65

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

581,974

0.45

Any Others (Specify)

17,698,692

13.56

           Clearing Members

80,088

0.06

Non Resident Indians

132,254

0.10

Foreign Corporate Bodies

17,235,400

13.20

           Directors and their Relatives and Friends

156,440

0.12

           Trusts

82,010

0.06

           Foreign Nationals

12,500

0.01

Sub Total

23,787,734

18.22

Total Public shareholding (B)

39,413,297

30.19

Total (A)+(B)

130,547,322

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

-

-

Total (A)+(B)+(C)

130,547,322

-

 

 

BUSINESS DETAILS

 

Line of Business :

Logistics Service Provider.

 

 

Services:

Shipping

 

 

GENERAL INFORMATION

 

No. of Employees :

635 (Approximately)

 

 

Bankers :

·         Axis Bank Limited, Fort, Mumbai

·         HDFC Bank Limited, Fort, Mumbai

·         Yes Bank Limited, Lower Parel, Mumbai

·         Citi Bank NA

·         DBS Bank Limited

·         Hongkong and Shanghai Banking

·         Corporation Limited

·         Standard Chartered Bank

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.12.2010

Rs. In Millions

31.12.2009

From Bank

 

 

Term Loans

2472.521

1092.968

(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

2472.521

1092.968

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Appan and Lokhandwala Associates

Chartered Accountants 

Address :

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

 

 

Internal Auditors :

 

Name:

C C Dangi and Associates

Chartered Accountants

Address:

Mahendra Chambers, 2nd Floor, Above Mc Donalds, 134/136, D.N. Road, Fort, Mumbai – 400001, Maharashtra, India

 

 

Solicitors and Legal Advisors:

 

Name:

Maneksha and Sethna

Solicitors, Advocates and Notary

Address:

8, Ambalal Doshi Marg, Hamam Street, Fort, Mumbai – 400001, Maharashtra, India

 

 

Joint Venture Companies :

·         Transworld Logistics and Shipping Services INC

·         Sealand Warehousing Private Limited

 

 

Associates:

Transnepal Freight Services Private Limited

 

 

Subsidiaries :

·         Contech Transport Services Private Limited

·         Comptech Solutions Private Limited

·         Allcargo Belgium N.V.

·         Hindustan Cargo Limited

·         ECU Line (India) Private Limited

·         Allcargo Shipping Company Private Limited (Formerly  known as AGL Ports Private Limited)

·         South Asia Terminals Private Limited

·          Southern Terminals and Trading Private Limited

·         (Formerly known as AGL Terminals Private Limited)

·         AGL Warehousing Private Limited

·         Allcargo Logistics Park Private Limited

·         Asia Line Limited

·         ECU International (Asia) Private Limited

·         ECU Line Abu Dhabi LLC

·         ECU Line Algerie

·         ECU Logistics S.A.

·         ECU-Line Australia Pty.Limited

·         ECUHOLD N.V.

·         Ecu Bro N.V.

·         ECU International N.V.

·         ECU-TECH BVBA

·         ECU-LINE N.V.

·         ECU-LOGISTICS N.V.

·         ECU-TRANS N.V.

·         D and E Transport N.V.

·         AGL N.V. (Formerly known as RMK N.V.)

·         ECU Air N.V.

·         ECU Global Services N.V. (formerly known as IPTS)

·         ECU Logistics do brasil Limiteda

·         Flamingo Line do Brazil Limiteda

·         ECU Line Bulgaria EOOD

·         ECU-Line Canada Inc.

·         ECU Line Chile S.A.

·         Container Freight Station S.A.

·         Flamingo Line Chile S.A.

·         ECU Line Guangzhou Limited

·         ECU Line De Columbia S.A.

·         Conecli International S.A.

·         ECU Line Middleeast LLC

·         Euro Centre - Dubai

·         ECU Heavy Lift, W.L.L.

·         ECU Line Del Ecuador S.A.

·         Flamingo Line Ecuador

·         ECU Line Egypt Limited

·         Flamingo Line El Salvador S.A. de C.V.

·         ECU-Line (Germany) GmbH

·         ELWA (GH) Limited

·         ECU Line Guatemala

·         ECU-Line Hong Kong Limited

·         ECU International Far East Limited

·         ECU Line Italia Srl

·         ECU Line Italy TRC Srl

·         ECU Line Cote d'lvoire Sarl

·         ECU Line Japan Limited

·         ECU Line Jordan

·         ECU Line Kenya Limited

·         ECU Shipping Logistic (K) Limited

·         ECU Line Malaysia ECU-Line (JB) SDN BHD

·         ECU-Line Malta Limited

·         ECU-Line (Indian Ocean Islands) Limited

·         AMI Ventures Limited

·         ECU Line Meditterranean Limited

·         CELM Logistics S.A. De C.V.

·         ECU Logistics de Mexico S.A. de C.V.

·         ECU Line Maroc S.A.

·         ECU LINE Rotterdam

·         ECU Line New Zealand Limited

·         ECU-Line de Panama S.A.

·         ECU-Line Paraguay S.A.

·         ECU-Line Peru S.A.

·         Flamingo Line Peru S.A.

·         ECU Line Philippines Inc.

·         ECU-Line Polska Sp. z.o.o. UL

·         ECU Line Doha W.L.L.

·         ECU-Line Romania SRL

·         Rotterdam Freight Station BV

·         ECU Line Singapore Pte. Limited

·         ECU LINE SA (Pty.) Limited

·         ECU Line Spain S.L.Barcelona

·         Mediterranean Cargo Centers S.L. (MCC)

·         ECU Line (Thailand) Co. Limited

·         ECU Line Tunisie sarl

·         ECU Line Turkey

·         ECU-Line UK Limited

·         ECU-Line Uruguay (Deolix SA)

·         DLC

·         ELV Multimodal C.A.

·         Venezuela - AHL

·         Consolidadora Ecu Line CA

·         Ecu Line Vietnam

·         ECU Line Zimbabwe (Pty.) Limited

·         ECU Line China Limited

·         Ecu Line Switzerland GmBH

·         Ecurocentre Milan SRL

·         Guldary S.A.

·         Ecu line Lanka Private Limited

·         S.H.E Maritime services Limited

·         CCC Limited

·         Star Express Company Limited

·         CCSS Limited

·         SSCC Limited

·         PT Eka Consol Utama Line

·         Ecu Line Czeche S.R.O

·         Ecu Line Hungary KFT

·         Translogistik International Spedition GMBH

 

 

Enterprises owned or significantly influenced by its key management personnel or their relatives:

·         Allcargo Shipping Services Private Limited

·         Avadh Marketing Private Limited

·         N.R.Holdings Private Limited

·         Transindia Freight Private Limited

·         Allcargo Movers (Bombay) Private Limited

·         Allnet Infotech Private Limited

·         Prominent Estate Holdings Private Limited

·         Transindia Freight Services Private Limited

·         Jupiter Machines Private Limited

·         Sealand Cranes Private Limited

·         Contech Estate Private Limited

·         Alltrans Logistics Private Limited

·         Alltrans Port Management Private Limited

·         Logical Hotels Private Limited

·         Indport Maritime Agencies Private Limited

·         SKS Netgate Private Limited

·         Avash Builders Private Limited

·         Energy Health Spas Private Limited

·         SKS Realty Private Limited

·         India Tourist And Heritage Village Private Limited

·         SKS Ventures Private Limited

·         Talentos (India) Private Limited

·         Talentos Entertainment Private Limited

·         Sealand Holdings Private Limited

·         Avash Builders And Infrastructure Private Limited

·         Avash Logistic Park Private Limited

·         Sealand Ports Private Limited

·         Gujarat Integrated Maritime Complex Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.12.2010

 

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

 

 

 

 

130516968

Equity Share

Rs.2/- Each

Rs.261.034 Millions

 

 

After 13.05.2011

 

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

 

 

 

 

130547322

Equity Share

Rs.2/- Each

Rs.261.094 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

261.034

249.623

223.636

2] Share Application Money

0.019

0.000

293.622

3] Reserves & Surplus

9516.836

7651.806

4435.327

4] Employees Stock Option Outstanding

12.299

16.474

16.187

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9790.188

7917.903

4968.772

LOAN FUNDS

 

 

 

1] Secured Loans

2472.521

1092.968

1052.845

2] Unsecured Loans

0.000

0.000

1009.730

TOTAL BORROWING

2472.521

1092.968

2062.575

DEFERRED TAX LIABILITIES

484.262

265.503

200.096

 

 

 

 

TOTAL

12746.971

9276.374

7231.443

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6420.773

4102.514

3151.630

Capital work-in-progress

457.854

617.527

594.484

 

 

 

 

INVESTMENT

1790.713

2003.429

1152.174

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000
0.000
0.000

 

Interest Accrued on investment
1.965
1.358
0.000

 

Sundry Debtors
935.510
728.594
713.341

 

Cash & Bank Balances
135.111
203.472
326.000

 

Other Current Assets
63.291
27.148
19.974

 

Loans & Advances
4600.703
2461.317
1983.046

Total Current Assets
5736.580

3421.889

3042.361

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
603.270
159.201
199.408

 

Other Current Liabilities
650.212
624.746
431.261

 

Provisions
405.467
85.038
79.029

Total Current Liabilities
1658.949

868.985

709.698

Net Current Assets
4077.631
2552.904
2332.663

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.492

 

 

 

 

TOTAL

12746.971

9276.374

7231.443

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2010

31.12.2009

31.12.2008

 

SALES

 

 

 

 

 

Income

6998.412

5167.562

5167.914

 

 

Other Income

305.497

153.425

137.609

 

 

TOTAL                                     (A)

7303.909

5320.987

5305.523

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Multimodal Transport Operations

1863.420

1377.917

2639.478

 

 

Container Freight Stations

762.759

464.405

365.867

 

 

Equipment Hire

0.000

0.000

147.782

 

 

Employee Cost

485.832

357.829

341.794

 

 

Administrative Expenses

447.386

344.754

402.729

 

 

Preliminary Expenses Written Off

0.000

0.843

0.414

 

 

Project and Engineering Solutions  

1760.184

1186.793

0.000

 

 

TOTAL                                     (B)

5319.581

3732.541

3898.064

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

1984.328

1588.446

1407.459

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

133.217

149.636

124.474

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1851.111

1438.810

1282.985

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

402.440

376.338

254.686

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1448.671

1062.472

1028.299

 

 

 

 

 

Less

TAX                                                                  (H)

237.412

84.418

164.249

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1211.259

978.054

864.050

 

 

 

 

 

 

TAX ADJUSTMENT FOR EARLIER YEAR

0.000

1.746

(0.071)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2442.364

1708.620

942.366

 

 

 

 

 

 

EARLIER YEAR PROFIT OF MERGED ENTITY

123.807

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend  

68.090

62.416

0.000

 

 

Tax on Interim Dividend  

11.320

10.608

0.000

 

 

Proposed Dividend

326.323

62.423

55.909

 

 

Tax on Proposed Dividend

52.938

10.609

9.502

 

 

General Reserve

125.000

100.000

95.000

 

BALANCE CARRIED TO THE B/S

3193.759

2442.364

1708.620

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Multimodal transport operations

175.473

259.780

         NA

 

 

Project and engineering solutions

83.415

60.265

 

 

 

Business support services

22.497

16.778

 

 

 

Management fees

9.035

10.267

 

 

TOTAL EARNINGS

290.420

347.090

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

9.41

8.53

38.65

 

 

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

 

QUARTERLY RESULTS

 

PARTICULARS

 

31.03.2011

30.06.2011

30.09.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

1894.540

2024.920

2071.120

 Total Expenditure

1362.660

1337.510

1477.690

 PBIDT (Excl OI)

531.880

687.410

593.430

 Other Income

126.740

49.780

109.980

 Operating Profit

658.620

737.190

703.410

 Interest

52.500

73.020

97.170

 Exceptional Items

0.000

0.000

0.000

 PBDT

606.120

664.170

606.240

 Depreciation

134.540

186.150

167.770

 Profit Before Tax

471.580

478.020

438.480

 Tax

80.470

28.130

63.640

 Reported PAT

391.110

449.890

374.840

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

391.110

449.890

374.840

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

PAT / Total Income

(%)
16.58

18.38

16.29

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
20.69

20.56

19.90

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
11.91

14.12

16.60

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.14

0.13

0.21

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.42

0.25

0.56

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.45

3.94

4.29

 

 

LOCAL AGENCY FURTHER INFORMATION

 

REVIEW OF OPERATIONS:

 

The year was challenging and opportunistic for the Company. After the unprecedented macro economic changes during last couple of years, there has been significant improvement in the economic situation and general outlook especially during the later part of the financial year. The Company has  successfully overcome the challenges of the  economic  downturn  through  series  of  measures  like  focused  management approach, efficient project execution, further capital  infusion,  aggressive  marketing  strategy,  prudent  financial  and  human resources management and ensuring better control over  cost. This can be seen from the improved performance in terms of higher turnover, efficient and effective capacity utilization, improved earning margins and cash flows.

 

Stand-alone Performance:

 

The Company has earned total revenue of Rs. 7303.91 million and earned a net profit of Rs. 1211.26 million as compared to revenue of Rs. 5320.99 million and net profit of Rs. 97805 million in preceding financial year, representing 37% and 24% growth in revenue and net profit respectively. Earnings before interest, tax and depreciation (EBITDA) is Rs. 1984.33 million as compared to Rs. 1588.45 million in preceding financial year, representing 25% growth.

 

Consolidated Performance:

 

The Company has earned total revenue of Rs. 28899.35 million and earned a net profit after minority interest of Rs. 1659.21 million as compared to revenue of Rs. 20895.15 million and net profit after minority interest of Rs. 1299.49 million in preceding financial year, representing  38%  and  28%  growth  in  revenue  and  net  profit respectively, on consolidated basis. Earning before interest, tax and depreciation (EBITDA) is Rs. 2983.46 million as compared toRs. 2470.92 million in preceding financial year,  representing  21% growth, on consolidated basis. Overall, the company is on a strong growth path and its efforts to improve efficiency, productivity and profitability will improve overall returns.

 

Appropriation:

 

Considering the profitable performance of the Company during the year, the Directors are pleased to recommend:

 

a. Special Dividend @ 100% i.e. Rs. 2 per equity share of Rs.2 each on  account  of  completion  of  five  years  of  listing  of  the Company’s equity shares on the Stock Exchanges

 

b. Final Dividend@25%i.e. Rs. 0.50 per equity share of Rs. 2 each.

 

The total dividend, including the interim dividend paid in November 2010, will be 150% i.e. Rs. 3.00 per equity share of Rs. 2 each. The Dividend, if approved by the members at the ensuing Annual General Meeting, together with interim dividend @ 25% paid in November 2010, will absorb a sum of Rs.458.67 million including dividend distribution tax.  

Subsidiary Companies:

 

During the year, the Company acquired 49% equity stake and management control in Comptech Solutions Private Limited through its wholly owned subsidiary company viz. Contech Transport Services Private Limited. In furtherance to the expansion plan of its Non Vessel Owning Common Carrier (NVOCC) business, your Company, through its step down wholly owned subsidiary company viz. Ecu Hold NV, has  acquired  business  rights  and  controlling  stake  in  China Consolidation  Services  Shipping  Limited  and  Ningbo  Star  Express Shipping  Company  Limited, Hong Kong based companies engaged in NVOCC business in China and other parts of eastern regions. The company also acquired 51% stake in SHE Maritime Services Limited and Translogistik International Spedition GmbH. During the year, the Company has, through its step down subsidiaries, formed Ecu Line Hungary Kft, Ecu Line Czeche s.r.o,  PT  Eka  Consol  Utama  Line  and  Ecu  Line  Lanka (Private) Limited as subsidiaries / wholly owned subsidiary companies under Ecu Group of companies. The Company also increased its stake in ECU-Line Hong Kong Limited from 60% to 100% through Ecu Hold NV.

 

The stand-alone audited financial statements of all subsidiaries operating in India and Overseas are not attached to this report in view of exemption u/s 212(8) of the Companies Act, 1956 granted by the Ministry of Corporate Affairs, Government of India. The statement pursuant to Section 212 of the Companies Act, 1956 relating  to  the  subsidiary  companies  along  with  a  statement  of financial  highlights  of  subsidiaries operations  providing  relevant details are attached and form part of this Annual Report. The  Company  will  make available  the  Annual  Accounts  of  the subsidiary companies and related information to any member of the Company  and  its  subsidiaries  who  may  be  interested  in obtaining  the  same.  The annual accounts of the subsidiary companies will also be kept open for inspection by any investor at the registered office of the Company and its subsidiary companies.

 

Consolidated financial statements:

 

As  per  the  Listing  Agreement  with  the  Stock  Exchanges,  the attached Consolidated Financial Statements have been prepared in accordance  with  the  Accounting  Standard  AS-21-Consolidated Financial Statements read with Accounting Standard AS  23-Accounting  for  Investment  in  Associates  and  Accounting Standard AS 27-Financial Reporting of interest in Joint Ventures, which includes financial results of its subsidiaries, joint ventures and associate companies and forms part of this Annual Report.

 

Share Capital and Listing Shares:

 

During  the  year, the Company  had  issued  and allotted  5,663,105  equity  shares  of  Rs. 2  each at  a  premium  of Rs. 182.80 per equity share aggregating Rs. 1046.541 Millions to Qualified Institutional Buyers (QIBs) in accordance with the provisions of the Companies Act, 1956 and Chapter VIII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. the Company further issued and allotted 42,598 equity shares of Rs. 2 each to its employees  against  exercise  of  options  granted  to  them  under “Allcargo Employee Stock Option Plan 2006”.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:

 

As the members are aware that with a view to consolidate logistic business under one roof and for better administration, control and management, the Company had decided to amalgamate Sealand Terminals Private Limited, the 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 said Scheme of Arrangement was approved by the Members of  the  Company  at  their  meeting  held on  May  20,  2010  and subsequently  received  assent  from  the  Hon'ble  Bombay  High Court on September 30, 2010.  Accordingly, Sealand Terminals Private Limited has been amalgamated with the Company with effect from April 1, 2009. The financial statements presented before the Members contains the financials of Sealand Terminals Private Limited.

 

Awards and Recognitions:

 

The year was very special for the Company as it has received many awards and recognitions for the significant contribution made by the Company in development and growth of the logistic industry.

 

• Allcargo has been ranked at 2nd position in Logistics Segment and at 290th position overall in the 'FORTUNE 500' companies in India by 'Fortune India'.

 

• 'The Best LCL Consolidator Award' for the year 2009-10, by the Southern Region of Container Corporation of India (CONCOR).

 

• Allcargo has been ranked at No. 251 in the 'ET 500-2010' list by “The Economic Times”. Additionally, the company  has  been identified as one of the top 10 companies which has a potential for growth and value addition based on consistent performance in its section “SHOW STOPPERS-Spot the Winners”.

 

• 'Logistics Company of the Year' and the 'Freight Forwarder of the Year (Indian)' by the 'All- Maritime and Logistics Awards (MALA) 2010'.

 

• Mr. Shashi Kiran Shetty, the Chairman and Managing Director of the Company, was awarded the 'Face of the Year' by 'Express Logistics and Supply Chain (ELSC)' organized by the Economic Times and Future group in Mumbai.

 

• Mr. Shashi Kiran Shetty, the Chairman and Managing Director of the Company, was awarded "Entrepreneur of the Year Services Category" by 'Ernst andYoung

 

 

• Ms. Shantha Martin, CEO, NVOCC, Indian Subcontinent and Middle East, has been adjudged as the 1st runner in the category “Leading Woman CEO” by 'iGroup'.

 

The Company believes that winning of such recognitions was due to the hard work, passion and spirit of team work of the employees and thoughtful leaders,  whose  novel  thinking  and  innovative approach have led them to attain excellence in their field. These awards are a testimony to the commitment to the stakeholders of the Company and seamless integrated logistics solutions.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economy Overview

 

 

Economic liberalization in India including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. In Year 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and GDP growth exceeded 8% year-on-year in real terms. Indian policy makers have been focused towards boosting growth even at the cost of some macro stability risks eg inflation, current-account deficit.

 

India's economy is likely to grow by 9 % in 2011-12 on the back of 10.3 % growth in services and 9.2% expansion in  industry  sector .  The  Union  budget  has  brought  in  some  positive momentum.  It  has  made  some  silent sophisticated  moves  towards  growth  and  fiscal consolidation.

 

On the global side, the recovery from the global economic crisis has been faced with setbacks since the middle of 2010 and the outlook for growth in 2011 does not appear very positive. 2010 has been a real roller coaster. At the beginning of the year, it looked like we were in for a decent recovery and people began to anticipate interest rate rises and the central banks initiating exit strategies from their loose monetary policies. But by the middle of the year, the euro crisis had erupted; the world economy showed signs of slowing down and any optimism soon faded. Talk began to move towards  a  double  dip  and  what the  authorities  could  do in terms  of more stimulation.  As  we  approached  the  end  of  the  year,  with  more  quantitative  easing,  we're beginning to see the recovery pick up but there is fear that without further stimulus the recovery will slow down again.

 

Going further into 2011, it is expected that slow recovery will continue globally on the back of quantitative easing by central banks. But, especially in the US it should be further strong with boost from strong profits and healthy balance sheets in the corporate sector. This should see increased capital expenditure and employment, raising growth in the world economy as confidence returns to US consumers. In emerging markets,  an  enviable  fiscal  position  capable  of  increasing expenditure in infrastructure will continue to boost growth. Europe and UK are still expected to have slowdown, mainly because of the spending cuts and tax increases, which will begin to bite as we move further in year 2011. Given the fragility of the periphery, euro policy tightening is not expected until 2012.

 

This continued recovery in growth is important for but it's not a strong recovery so interest rates are going to stay very low as we go through 2011. That means investors are still going to be searching for yield. Emerging markets are likely to continue to attract funds given their growth prospects. These will be our main asset allocation plays as we go into 2011.

 

Company Overview:

 

2010 was the year of consolidation after 2009, which was severely impacted due to the global economic downturn marked by the falling export volumes and reduced consumer spending.

 

As a company, Allcargo takes immense pride to inform you that 2010 has been year of growth for us; the company moved from strength to strength and grew incredibly across all its business segments. Allcargo has been able to derive real synergy from its businesses of Multimodal Transport Operations (MTO), Projects and Engineering Solutions and CFS/ICD and 3PL. Company clubbed the  businesses  of  Projects  Logistics  business  and  Equipment solutions and presented an end-to-end offering to its customers interested in movement of ODC(Over dimensional Cargo) and are providers of high-end equipment for their business.

 

Multimodal Transport Operations (MTO)

 

Their MTO segment mostly comprises global LCL consolidation business.  This segment is largest contributor to the gross revenue for Allcargo. It mainly caters to the EXIM traffic across the world. With presence in 140locations across 60 countries, Allcargo is one of the largest LCL consolidators in the world. With recovery in EXIM trade; slowly volumes started to improve in first half of 2010. Global trade flows rebounded across many regions in 2010. Recovery worldwide has been driven by increased trade in North America, Europe and Asia, as well as between Asia and the rest of the world. Trade in Intra-Asia region has shown highest growth potential in this year. Few other regions, especially Africa, continued to have stressed markets.  With global footprints and strong presence in these markets, Allcargo has been able to leverage this growth in EXIM trade and had shown a volume increase of 20%+ volume growth in LCL consolidation business with high double digit improvement in net profit.

 

Projects and Engineering solutions:

By moving-up in value chain, the Company has started providing integrated projects, engineering and equipment logistics solutions. To reflect this; the Company has grouped 'Equipment' segment and of 'Project Logistics' which was earlier a part of 'MTO' segment as 'Project and Engineering Solutions' segment. This business is seeing unprecedented  growth  in  recent  quarters.  Set  of  owned equipments and availability of skilled manpower puts Allcargo way up in the value-chain.

 

With approximately 60% growth at PBT level and increased asset-base in this business; this business is predicted to be one of the fastest growing businesses in India for Allcargo. The growth in this business is closely coupled with the Infrastructure development activities in India's developing economy.  This industry currently is facing a strong demand supply gap for availability of equipment as well as one stop solution-provider to meet the industry demands.

 

Project Logistics and Equipment businesses had shown high propensity to growth in previous years. Together; this business has been showing incredible growth; the EBIT has grown to Rs. 603.100 Millions in  2010  from  Rs. 379.000 Millions  in  previous  year.  This growth has been achieved through a combination of increase in capacity  through  new  asset  purchases  and  improvement  of utilization  levels  and  up-time  of  the  existing assets  through  this combined offering.

 

The Company added 35 new cranes in 2010 taking the total tally to 101 by the  end  of  December-2010.  The  Company  has  been focusing on adding high-capacity equipment to position itself in the niche  provider  of  projects  and  engineering  solutions  to  support India's infrastructure growth.

 

CFS/ ICD/ Warehousing Operations:

 

Their CFS and ICD division is dependent on India's containerized EXIM trade. Between 2000 and 2010, cargo handling capacity at Indian ports has trebled and the overall length of roads and rail-tracks has risen  substantially . Container  traffic  movement  largely happens  through  three  main  Indian  ports  JNPT,  Chennai  and Mundra. The CFS at JNPT mostly caters to the Import container traffic (which forms 92% of the total throughput) which has a higher profitability per TEU (Twenty Equivalent Units) on account of the storage collections being higher compared to Export. The Chennai CFS too has a higher proportion of Import containers (80% of the total throughput). On the other hand, Mundra is an export driven market with the Export containers contributing 69% of  the throughput at Mundra CFS. Propelled by significant volume growth in Chennai CFS; overall through-put for the CFS has reached to 226,797 TEUs registering a growth of 30.7% over previous year. A closer look at the EBITDA per TEU for each CFS suggests that for Mundra profitability has improved over last year, while there is a marginal drop in the same for Chennai AND JNPT. The marginal drop in EBITDA per TEU at a consolidated level comes from increased contribution of Mundra and Chennai (which have lesser realization in comparison to JNPT) and ICD Pithampur (which is in only second  year  of  operation  and hence in a nascent stage). They see an increasing trend in EBITDA per TEU from January 2011 onwards.

 

fixed assets

 

·         Freehold Land

·         leasehold Land

·         Buildings

·         Heavy Equipments

·         Plant and Machinery

·         Buildings

·         Office Equipments - Computers

·         Software packages

·         Vehicles - Others

 

 

BUSINESS DESCRIPTION

 

Subject, formerly Allcargo Global Logistics Limited, is a logistics company, which operates in three segments: Multimodal Transport Operations (MTO), Container Freight Station (CFS), and Project and Engineering Solutions. The MTO segment comprises global less than container load (LCL) consolidation business. It provides service packages, such as LCL, full container load, stuffing and sailing. CFS provides multimodal transport solutions and operations management. Its services include import handling, export handling, LCL shipment and transportation. Project and Engineering Solutions consist of project logistics and engineering solutions, which includes supply chain/project management services, including project cargo out of gauge cargo/over dimensional cargo over weight consignments on turnkey and/or door-to-door basis route surveys multi-modal and multi-location transportation. As of December 31, 2010, it acquired 49% interest in Comptech Solutions Private Limited. For the fiscal year ended 31 December 2010, Allcargo Global Logistics Limited's revenues increased 27% to RS26.59B. Net income increased 31% to RS1.71B. Revenues reflect an increase in income from operation. Net income also reflects a fall in other expenditure, a significant decrease in interest expenses and lower exceptional expense. The Company provides warehouses offer value-added services, such as packaging, labeling and segregation.

 

 

Board of Director    

 

Mr. Shashi Kiran Shetty -  Executive Chairman and Managing Director

 

Mr. Shashi Kiran Shetty is Executive Chairman of the Board, Managing Director of AllCargo Global Logistics Limited. He was appointed as Managing Director of the Company for a period of 5 years commencing from April 1, 2005. He holds a Bachelor of Commerce degree. He started his career in the logistics industry in 1978with Intermodal Transport and Trading Systems Private Limited, Mumbai. Subsequently, he moved to Forbes Gokak, a TATA Group Company where he gained experience in port operations. In 1982 he set up M/s. Transindia Freight Services, a partnership firm into transportation business catering to liner shipping services. Subsequently, he formed a company namely, Transindia Freight Services Private Limited in the year 1995 which initially catered to the Liner Shipping Industry and went on to provide container and project related transportation services to various exporters and importers. His experience was in the area of providing complete door-to-door solutions. He was instrumental in the Company being appointed as general agent in India for ASIA Lines Limited, a Mauritius based NVOCC. Mr. Shetty joined hands with ECU Line N.V. in 1995 and set up offices and franchisees across the country, thereby expanding the MTO business. With the Government having opened up the CFS activities to the private sector, Mr. Shashi Kiran Shetty foresight led the Company to set up CFS activity in 2003. He has served as Ex-trustee of Mumbai Port Trust and is presently the Vice Chairman of the Association of Multimodal Transport Operators of India (AMTOI). Mr. Shashi Kiran Shetty has been appointed as the Managing Director since the inception of the Company.

 

 

Mr Adarsh Hedge Executive Director

 

Mr. Adarsh Hegde is Executive Director of AllCargo Global Logistics Limited 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. He 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 role in the growth of the Company through his business acumen and leadership qualities.

 

 

 

Mrs. Arathi Shetty Executive Director

 

Mrs. Arathi Shetty is Executive Director of AllCargo Global Logistics Limited. 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. Mrs. Shetty has an experience of over seventeen years in the logistic field and has an understanding of the intricacies of business especially in handling customer relationship and other related issues.

 

Mr. Umesh Kumar Shetty Chief Executive Officer – Project Engineering Solutions

 

Mr. Umesh Kumar Shetty is Chief Executive Officer - Project and Engineering Solutions of AllCargo Global Logistics Limited He was Whole-Time Director of the Company until December 2008. He holds Bachelor of Commerce degree and has a wide and experience of more than 17 years in the fields of cargo and logistic business. 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 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. He is also director on the Board of Alltrans Logistics Private Limited and Indport Maritime Agencies Private Limited.

 

 

PRESS RELEASE

 

Record Date

Accord Fintech (India)

04 November 2011

 

India, November 04 -- Allcargo Logistics Limited has informed the Exchange that the Company has fixed November 18, 2011 as the Record Date to determine the eligibility of the Members of the Company for payment of interim dividend. Published by HT Syndication with permission from Accord Fintech.

 

Dividend

Accord Fintech (India)

04 November 2011

 

India, November 04 -- Allcargo Logistics Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on November 03, 2011 has declared an interim dividend of Re.1 (@ 50%) per equity share of Rs.2 each for the financial year 2011. Published by HT Syndication with permission from Accord Fintech.

 

Accord Fintech (India)

04 November 2011

 

India, November 04 -- Allcargo Logistics has reported results for the second quarter ended September 30, 2011.The company's net profit for the quarter under review decreased marginally by 4.27% at Rs 374.800 Millions as compared to Rs 391.500 Millions for the quarter ended September 30, 2010. Its income from operation has rose 5.33% to Rs 2071.100 Millions for the July-Sept quarter from Rs 1966.300 Millions for the similar quarter of the previous year. The company has informed that the board of directors of the company at its meeting held on November 03, 2011 has declared an interim dividend of Re 1 or 50% per equity share of Rs 2 each for the financial year 2011. Published by HT Syndication with permission from Accord Fintech.

 

Accord Fintech (India)

04 November 2011

 

India, November 04 -- Allcargo Logistics has informed that the board of directors of the company at its meeting held on November 03, 2011, has declared an interim dividend of Re. 1 at the rate of 50% per equity share of Rs. 2 each for the financial year 2011.The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech.

 

United News of India

03 November 2011

 

New Delhi, November 3 -- With growing demand for integrated logistics solutions, Allcargo Logistics in a joint venture with the Container Corporation of India (CCI) today announced the opening of Allcargo Logistics Park, a new advanced Inland Container Depot (ICD), located at Dadri in Uttar Pradesh. Allcargo Logistics Park s location has been strategically chosen keeping Dadri s proximity to Delhi, the national capital, the region s superior connectivity by road and rail to rest of India and the growing industrial and manufacturing hubs in the region, it said in a statement. The new ICD has a 41,264 sq m built-up area, 21,000 sq m paved yard and 5,160 sq m covered warehouse. In addition, the facility has a 75,000 TEU handling capacity per annum. Mr Shashi Kiran Shetty, Chairman and Managing Director, Allcargo Logistics, said, Logistics has become a critical component for economic success in today s global scenario and we are pleased to partner with a renowned company like Container Corporation of India to cater to the growing requirement of integrated logistics services of manufacturers and traders for efficient supply chain management through this facility. To start with, Allcargo along with Container Corporation of India has made a joint investment of Rs 190.000 Millions in this initiative, he said. UNI MP SBA CS1542 Published by HT Syndication with permission from United News of India.

 

 

Accord Fintech (India)

28 October 2011

 

India, October 28 -- Allcargo Logistics has informed that a meeting of the board of directors of the company will be held on November 03, 2011, to consider and approve the un-audited financial results of the company for the third quarter and nine months ended September 30, 2011 and to declare interim dividend, if any, for the current financial year. The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.51.93

UK Pound

1

Rs.80.62

Euro

1

Rs.69.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

-

NB

                                       New Business

-

 

 

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.