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MIRA INFORM REPORT
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Report No. : |
497526 |
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Report Date : |
14.03.2018 |
IDENTIFICATION DETAILS
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Name : |
COX AND KINGS LIMITED (w.e.f. 29.07.2010) |
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Formerly Known
As : |
COX AND KINGS (INDIA) LIMITED |
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Registered
Office : |
1st Floor, Turner Morrison Building, 16 Bank Street, Mumbai
– 400023, Maharashtra |
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Tel. No.: |
91-22-22709100 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
07.06.1939 |
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Com. Reg. No.: |
11-011352 |
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Capital
Investment / Paid-up Capital : |
INR 882.800 Million |
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CIN No.: [Company Identification
No.] |
L63040MH1939PLC011352 |
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IEC No.: |
0390017591 |
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GST No.: |
27AAACC1921B1ZE |
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TIN No.: |
27401203595 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACC1921B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of Inbound and Outbound
Travel, Leisure and Foreign Exchange Dealing. [Registered Activity] |
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No. of Employees
: |
2240 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Cox & Kings Limited was incorporated in the year 1758. It is one
of the longest established travel companies. Headquartered in India, the holiday
and education travel group has subsidiaries in the US, Canada, the UK,
Netherlands, the UAE, Japan, Singapore, Australia and New Zealand. It has
operations spread across 22 countries and 4 continents. For the financial year 2017, the company has achieved revenue growth
of 9.45% as compared to the previous year along with an average profit margin
of 5.82%. The sound financial risk profile of the company is marked by adequate
net worth base along with strong debt protection metrics due to negligible
debt balance sheet profile and positive working capital. As per the quarterly financials of December 2017, the company achieved
revenue of INR 5540.200 million along with 347.600 million. The rating reflects company’s stable business operations along with an
established brand in India as well as in the international markets. The ratings continue to derive strength from the company’s long track
record in the tourism industry and long standing experience of the promoters
of the company. The above rating strengths are tempered by seasonality and exposure of
the company’s travel business, and fragmented nature of the domestic travel
industry. Payment seems to be regular and as per commitment. In view of aforesaid, 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.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long terms Bank Facilities = AA |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
07.07.2017 |
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Rating Agency Name |
CARE |
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Rating |
Commercial Paper Issue = A1+ |
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Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
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Date |
07.07.2017 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 14.03.2018.
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
[Contact No: 91-22-22709100/ 61968888/ 22709110]
LOCATIONS
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Registered/ Corporate Office : |
1st Floor, Turner Morrison Building, 16 Bank Street, Mumbai
– 400023, Maharashtra, India |
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Tel. No.: |
91-22-22709100/ 61968888/ 22709110 |
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Fax No.: |
91-22-22709161 / 22704600 |
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E-Mail : |
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Website : |
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Franchise Offices : |
Located at: · Andhra Pradesh · Assam · Biihar · Chhattisgarh · Delhi · Delhi – NCR · Goa · Gujarat · Haryana · Jammu and Kashmir · Jharkhand · Karnataka · Kerala · Madhya Pradesh · Maharashtra · Orissa · Punjab · Rajasthan · Sikkim · Tamilnadu · Tripura · Uttar Pradesh · Uttaranchal · West Bengal |
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Branch Offices: |
Located at: · Ahmedabad · Kochi · Bangalore · Hyderabad · Goa · Chennai · Mumbai · Gurugram · Jaipur · Kolkata · New Delhi |
DIRECTORS
AS ON: 31.03.2017
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Name : |
Mr. Pesi Shavak Patel |
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Designation : |
Director |
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Address: |
Lyndewode House, Bomanji Petit Road, Mumbai - 400026, Maharashtra, India |
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Profile : |
He started his career with the family's industrial products manufacturing business. He oversaw the sales and marketing of the products and led the division in manufacturing these products. Ultimately in 1982, Pesi gained responsibility for running the entire Company. Under his leadership, the Company experienced growth both structurally and financially. He is a graduate in Commerce (B.Com) from the University of Mumbai. |
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Date of Appointment: |
05.02.1998 |
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DIN No.: |
00016091 |
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Name : |
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Designation : |
Director |
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Address: |
1305 Dosti Aster (Dosti Acres) , New Uphil, Link Road Off S.M. Road ,Antop Hill, Wadala, (East), Mumbai - 400037, Maharashtra, India |
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Profile : |
He has over 40 years of experience and knowledge in the field of Banking and Finance. He had held a number of leadership roles within Life Insurance Corporation of India. He has served as Executive Director (Investment)with the Life Insurance Corporation of India, wherein he was responsible for looking after investment functions like debt, equity, monitoring corporate sector, investment in infrastructure as well as social sector, which involved dealing with State Government bodies and Central Government Undertakings etc. He is a graduate in Commerce (B.Com) from Delhi University and is a Fellow of the Institute of Chartered Accountants of India. |
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Date of Appointment: |
01.10.2007 |
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DIN No.: |
00020021 |
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Name : |
Ms. Urrshila Kerkar |
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Designation : |
Wholetime Director |
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Address: |
11, Nowroji Mansion, 31, Wodhouse Road, Mumbai - 400039, Maharashtra, India |
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Profile : |
Prior to joining the Company in 1990, Ms. Urrshila Kerkar was running her own enterprise, a graphic design and production house, which has won over 20 international awards for design. Ms. Urrshila Kerkar initially worked with the Company in an advisory role on marketing and brochures design from 1985 and her role was extended when she joined the Company in 1999 and was made in-charge of Indian Operations. She has been at the forefront of the Company's growth, playing a vital role in the development of Out Bound Leisure and Domestic Leisure business and is the drivingforce behind the Company's IT vision. She has been directly involved and responsible for the day-to-day management of the Company and for all the marketing and design initiatives of the Group. She is a graduate in Art (B.A.) Hons in Economics and Psychology from Bombay University and holds an associate degree from Pratt University, NY, USA in Graphic Design. In Octoer 2015, she was awarded the 'Game Changer of the Year' awarded by India Travel Awards. |
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Date of Appointment: |
01.09.2007 |
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DIN No.: |
00021210 |
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Name : |
Mr. Mahalinga Narayanan |
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Designation : |
Director |
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Address: |
B-3/54, Safdarjung Enclave, New Delhi - 110029, India |
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Profile : |
Mr. M. Narayanan, Independent Director and Chairman of the Board Audit Committee He had served as the Chairman and Managing Director with Tourism Finance Corporation of India Limited between July 2004 and September 2006. He had also occupied the position of General Manager, Industrial Finance Corporation of India and held senior management positions in IFCI and Bank of Baroda. Mr. Narayanan started his professional career with Reserve Bank of India in June 1964. The Institute of Economic Studies, New Delhi, conferred him with UDYOG Rattan Award in the year 2005 for excellence in performance. He is a post graduate in Commerce (M.Com) and holds a degree in Law. He is also a Certified Associate of Indian Institute of Bankers (CAIIB). |
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Date of Appointment: |
16.06.2007 |
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DIN No.: |
00159288 |
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Name : |
Mr. Anthony Bruton Meyrick Good |
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Designation : |
Director |
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Address: |
Clench House,Wootton Rivers Wiltshire Marlborough SN84NT GB |
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Profile : |
After being a management trainee with the Distillers Group, he ventured into the field of journalism, where he spent five years first as Public Relations Officer and later in a Group marketing role with the then largest independent airline group in the UK. In this capacity, he was involved in setting up a tour operating subsidiary. Mr. Good formed the Good Relations Group in 1962 and floated it on the London Stock Exchange in1982. In 1970, he was commissioned by Grindlays Bank to turn Cox & Kings, UK, into a long-haul tour operator specializing in India. He was appointed to the board of Cox & Kings Limited in1971 and became the Chairman in 1975. Under his astute guidance, the Company imbibed quality standards and practices. He is a Fellow Member of Chartered Institute of Public Relations and Honorary Life Fellow Member of the Institute of Directors. |
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Date of Appointment: |
28.10.1987 |
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DIN No.: |
00189453 |
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Name : |
Mr. Ajay AJIT Peter Kerkar |
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Designation : |
Director |
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Address: |
11, Nowroji Mansion, 31, Wodehouse Road, Mumbai - 400039, Maharashtra, India |
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Date of Appointment: |
30.11.1993 |
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DIN No.: |
00202891 |
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Name : |
Mr. Peter Kerkar |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Name : |
Ms. Rashmi Jain |
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Designation : |
Company Secretary |
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Address: |
1004-B, Hill Grange Building, Hiranandani Estate, G.B. Road, Patlipada, Thane - 400607, Maharashtra, India |
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Date of Appointment: |
15.05.2006 |
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PAN No.: |
AFLPJ0963M |
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Name : |
Mr. Anil Omprakash Khandelwal |
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Designation : |
Chief Finance Officer (KMP) |
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Address: |
D 201-202, Ashok Gardens T.J. Road, Sewri Mumbai – 400606,
Maharashtra, India |
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Date of Appointment : |
01.04.2014 |
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PAN No.: |
AEKPK6934M |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2017
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Promoter
& Promoter Group |
88815131 |
50.30 |
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(B) Public |
87749759 |
49.70 |
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Total |
176564890 |
100.00 |
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category
of shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
(A+B+C2) |
|
|
A1) Indian |
0.00 |
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Individuals/Hindu
undivided Family |
59,14,000 |
3.35 |
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ELISABETH KERKAR |
12,74,400 |
0.72 |
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URRSHILA KERKAR |
46,39,600 |
2.63 |
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Any Other
(specify) |
5,74,70,067 |
32.55 |
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LIZ TRADERS AND AGENTS PRIVATE LIMITED |
1,71,81,699 |
9.73 |
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SNEH SADAN TRADERS AND AGENTS LTD |
3,30,38,368 |
18.71 |
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STANDFORD TRADING PRIVATE LIMITED |
72,50,000 |
4.11 |
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Sub Total A1 |
6,33,84,067 |
35.90 |
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A2) Foreign |
0.00 |
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Individuals
(NonResident Individuals/ Foreign Individuals) |
70,84,504 |
4.01 |
|
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AJAY AJIT PETER KERKAR |
27,44,672 |
1.55 |
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ANTHONY BRUTON MEYRICK GOOD |
43,39,832 |
2.46 |
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Any Other
(specify) |
1,83,46,560 |
10.39 |
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KUBBER INVESTMENTS (MAURITIUS) PVT LTD |
1,83,46,560 |
10.39 |
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Sub Total A2 |
2,54,31,064 |
14.40 |
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A=A1+A2 |
8,88,15,131 |
50.30 |
|
Statement showing shareholding pattern of the Public
shareholder
|
Category
& Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
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B1) Institutions |
0 |
0.00 |
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Mutual Funds/ |
1973400 |
1.12 |
|
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TATA RETIREMENT SAVINGS FUND-PROGRESSIVE
PLAN |
1973400 |
1.12 |
|
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Foreign
Portfolio Investors |
62949558 |
35.65 |
|
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ABU DHABI INVESTMENT AUTHORITY - BEHAVE |
2676814 |
1.52 |
|
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WAVERTON INVESTMENT FUNDS PUBLIC LIMITED
COMPANY-WAVERTON ASIA PACIFIC FUND |
1778154 |
1.01 |
|
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THE BOARD OF REGENTS OF THE UNIVERSITY OF
TEXAS SYSTEM - UT SAGA TREE LLC |
2166170 |
1.23 |
|
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SMALLCAP WORLD FUND, INC |
6500000 |
3.68 |
|
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LETKO BROSSEAU EMERGING MARKETS EQUITY
FUND |
2497040 |
1.41 |
|
|
NATIONAL WESTMINSTER BANK PLC AS TRUSTEE OF
THE JUPITER INDIA FUND |
3246620 |
1.84 |
|
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NOMURA SINGAPORE LIMITED |
2072698 |
1.17 |
|
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NEW HORIZON OPPORTUNITIES MASTER FUND |
7750000 |
4.39 |
|
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PRIME INDIA OPPORTUNITY LTD |
2123210 |
1.20 |
|
|
ABU DHABI INVESTMENT COUNCIL - (NOOSA |
2530000 |
1.43 |
|
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KARST PEAK VERMILION PARTNERS MASTER FUND |
3877400 |
2.20 |
|
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KARST PEAK ASIA MASTER FUND |
3557000 |
2.01 |
|
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SSG INVESTMENT HOLDING INDIA I LIMITED |
3054314 |
1.73 |
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Financial
Institutions/ Banks |
65356 |
0.04 |
|
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Insurance
Companies |
2659715 |
1.51 |
|
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LIFE INSURANCE CORPORATION OF INDIA |
2659715 |
1.51 |
|
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Sub Total B1 |
67648029 |
38.31 |
|
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B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
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B3)
Non-Institutions |
0 |
0.00 |
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Individual share
capital upto INR 0.200 Million |
6302754 |
3.57 |
|
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Individual share
capital in excess of INR 0.200 Million |
3298562 |
1.87 |
|
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NBFCs registered
with RBI |
87772 |
0.05 |
|
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Any Other
(specify) |
10412642 |
5.90 |
|
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Trusts |
7570 |
0.00 |
|
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NRI |
436397 |
0.25 |
|
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Clearing Members |
1942347 |
1.10 |
|
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NRI – Non- Repat |
297574 |
0.17 |
|
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Bodies Corporate |
7728375 |
4.38 |
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IEPF |
379 |
0.00 |
|
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Sub Total B3 |
20101730 |
11.38 |
|
|
B=B1+B2+B3 |
87749759 |
49.70 |
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BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Inbound and Outbound
Travel, Leisure and Foreign Exchange Dealing. [Registered Activity] |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS: (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2240 (Approximately) |
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Bankers : |
·
State Bank of India Corporate Accounts Group Branch Neville House, J. N. Heredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India |
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Facilities : |
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Financial
Institution : |
· Axis Trustee Services Limited Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang
Budhkar Marg, Worli, Mumbai, Maharashtra, India · Tourism Finance Corporation of India Limited · BMW India Financial Services Private Limited |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary
Companies : |
· Clearmine Limited UK · Cox and Kings Destination Management Services Limited · Cox and Kings Tours LLC, Dubai · Cox and Kings Singapore Private Limited · Quoprro Global Limited · Cox and Kings Asia Pacific Travel Limited · Quoprro Global Services Private Limited · Cox and Kings Global Services Private Limited · Cox and Kings Japan Limited · Cox and Kings Destinations Management Services Private Limited · Prometheon Enterprise Limited · Cox and Kings (UK) Limited · Cox and Kings Financial Service Limited (With effect from December 29, 2016) · Cox and Kings Travel Limited · East India Travel Company Inc. · Cox and Kings (Shipping) Limited · Cox and Kings Special Interest Holidays Limited · Cox and Kings Tours Limited · Cox and Kings Enterprises Limited · Cox and Kings Holdings Limited · ETN Services Limited · Cox and Kings Finance Limited · Cox and Kings Finance (Mauritius) Limited · Cox and Kings (Agents) Limited · CandK Investments Limited · Grand Tours Limited · Cox and Kings (Australia) Pty Limited · Tempo Holidays Pty Limited · Tempo Holidays NZ Limited · Cox and Kings Nordic PTY Limited · Cox and Kings PGL Camps Pty Limited · Prometheon Holdings Private Limited · Cox and Kings Global Services (Singapore) Pte Limited · Cox and Kings Global Services Management (Singapore) Pte Limited · Cox and Kings Gmbh · Cox and Kings Global Services Hellas, Greece · Cox and Kings Global Services LLC Dubai · Quoprro Global Services Pte. Limited · Quoprro Global Services Private Limited · Cox and Kings Consulting Service (Beijing) Co. Limited · Cox and Kings Global Services LLC, USA · Cox and Kings Global Services Sweden AB · Cox and Kings Egypt · Cox and Kings Global Services Lanka Private Limited · Prometheon Holdings (UK) Limited · Prometheon Limited · Holidaybreak Limited · NST Limited · NST Transport Services Limited · SASu Le Chateau d’Ebblinghem · SARL Chateau d’Ebblinghem · PGL Air Travel Limited · PGL Voyages Limited · PGL Travel Limited · PGL Adventure Limited · Freedom of France Limited · Noreya SL · PGL Adventure SAS · Simpar Sasu · Chateau de Lamorlaye SCI · SCI Domaine de Segries · European Study Tours Limited · NST Holdings Limited · NST Travel Group Limited · PGL Group Limited · EST Transport Purchasing Limited · Business Reservations Centre Holland BV · Bookit BV · BV Weekendjeweg.nl · Business Reservations Centre Holland Holding BV · Edge Adventures Limited · Holidaybreak Trustee Limited · Holidaybreak Holding Company Limited · Holidaybreak Education Limited · Holidaybreak Quest Trustee Limited · Hotelnet Limited · SAS Travelworks France · Travelplus Group Gmbh, Germany · Travelplus Group Gmbh, · Travelworks UK Limited · Hole In The Wall Management Limited · Meininger Hotels Limited (formerly Holidaybreak Hotel Holdings Limited) · Holidaybreak Hotel Holdings GmbH · Meininger Amsterdam Amstelstation BV · PGL Travel PTY Limited · PGL Property PTY Limited · PGL Adventure Camps PTY Limited · Meininger Amsterdam B.V. · Meininger Shared Services Gmbh · Meininger Berlin Hauptbahnhof Gmbh · Meininger “10” Hamburg Gmbh · Meininger Airport Frankfurt Gmbh · Meininger Brussels Gmbh · Meininger West GmbH and Co KG · Meininger West Verwaltungs Gmbh · Meininger “10” City Hostel Köln Gmbh · Meininger “10” Frankfurt Gmbh · Meininger Oranienburger Straße Gmbh · Meininger Hotel Berlin Eastside Gallary GMBH · Meininger “10” City Hostel Berlin-Mitte Gmbh · Meininger “10” Hostel Und Reisevermittlungs Gmbh · Meininger Airport Hotels Bbi Gmbh · Meininger Hotel Berlin Tiergarten GmbH (formerly Meininger Postdamer Platz GmbH) · Meininger Barcelona Gmbh · Meininger City Hostels and Hotels Gmbh · Meininger Limited · Meininger Hotelerrichtungs Gmbh · Meininger Wien Gmbh · Meininger Wien Schiffamtsgasse Gmbh · Meininger Holding GmbH · Meininger Finance Co Limited · Meininger Paris SCI · Prometheon Australia Pty Limited · Prometheon Singapore pte Limited · Meininger Hotel Heidelberg GmbH (formly Meininger Hotel Munchen Hirschgarten GmbH) · Meininger Hotel Munchen Olympiapark GmbH · Meininger Hotel Leipzig Hauptbahnhof GmbH · Meininger Hotel USA Limited · Meininger Holding USA Inc. · Meininger Hotel Europe Limited · Meininger Hotel Rome Termini Station S.r.l · Meininger Hotel Venice Marghera S.r.l · Meininger Hotel Hungary kft · Meininger Hotel Asia Pacific Pte. Limited · Hotelbreak Enterprise UK Ltd · Hotelbreak Holdings UK Limited · Meininger Hotels (India) Private Ltd (With effect from August 01, 2016) · Meininger Hotel Genf AG, Geneva · Meininger Hotel Lyon SAS (With effect from February 28, 2017) · Meininger Hotel Milan City SRL (With effect from February 24, 2017) · Meininger Hotel Brussels Midi Station SA (With effect from October 14, 2016) · Meininger Hotel Milan Lambrate SRL (With effect from October 11, 2016) · Meininger Hotel Zurich AG (With effect from October 06, 2016) · Meininger Hotel Russia Limited (With effect from July 04, 2016) · Meininger Hotel Copenhagen ApS (With effect from October 12, 2016) · Meininger Hotel Paris Porte de Vincennes SAS, (With effect from May 31, 2016) · Cox and Kings Global Services Private Limited (With effect from March 06, 2017) · Explore Worldwide Limited Upto December 01, 2015 · Explore Aviation Limited Upto December 01, 2015 · Explore Worldwide Adventures Limited Upto December 01, 2015 · Regal Diving and Tours Limited Upto December 01, 2015 · Superbreak Mini-Holidays Limited Upto March 30, 2016 · Superbreak Mini Holidays Group Limited Upto March 30, 2016 · Superbreak Mini-Holidays Transport Limited Upto March 30, 2016 · Meininger Hotel Munchen Hirschgarten GmbH · Hotels London Limited Upto March 30, 2016) ·
Late Rooms Limited Upto March 30, 2016) |
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Associate/ Group Companies
: |
· Tulip Star Hotels Limited · Radius Global Travel Limited · Malvern Enterprise UK Limited (With effect from March 30, 2016) |
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Joint Venture: |
Royale Indian Rail Tours Limited |
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Enterprises over which Key Managerial Personnel and their relatives
exercise significant influence: |
· Far Pavilions Tours and Travels Private Limited · Ezeego One Travel and Tours Limited · Standford Trading Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
220000000 |
Equity Shares |
INR 5/- each |
INR 1100.000 Million |
|
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
176564890 |
Equity Shares |
INR 5/- each |
INR 882.800
Million |
|
|
|
|
|
Number of Equity Shares
held by each shareholder holding more than 5% shares in the company are as
follows:
|
Particulars |
31.03.2017 |
|
|
|
No. of Shares |
% |
|
Sneh Sadan Traders and Agents Limited |
33,038,368 |
18.71% |
|
Kubber Investments (Mauritius) Pvt Ltd |
18,346,560 |
10.39% |
|
Liz Traders and Agents Private Ltd |
17,181,699 |
9.73% |
Reconciliation of the
no. of shares outstanding at the beginning and at the end of the year:
|
Particulars |
31.03.2017 |
|
|
|
|
No. of Equity shares outstanding at the beginning of the
year |
169,314,890 |
|
Add: Equity shares issued during the year |
7,250,000 |
|
No. of Equity shares outstanding at the end of the year |
176,564,890 |
Terms/rights attached
to equity shares:
The company has only one class of equity shares having a par value of INR 5/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting except in case of interim dividend.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Money Received
against Share Warrant
|
Particulars |
31.03.2017 |
31.03.2016 |
|
Money Received against Share Warrant |
-- |
561.500 |
The Committee of Directors at its meeting held on January 06, 2015, had issued and allotted 72,50,000 Warrant (Warrants) to Standford Trading Private Limited, a promoter group entity, entitling for subscription of equivalent number of equity shares of `5/- each at a price of INR 309.82/- (Rupees Three Hundred Nine and Eighty Two Paisa only) per Warrant including premium of INR 304.82/- (Rupees Three Hundred Four and Eighty Two paisa only) per Warrant as per provisions of Chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirement) Regulations, 2009 at any time within 18 months from the date of issue.
During the year, the Promoter Group entity, Standford Trading Private Limited, had applied for conversion of 72,50,000 warrants into equity shares and accordingly the Company allotted 72,50,000 equity shares of INR 5/- each at a premium of INR 304.82/- per share.
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET [STANDALONE]
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
882.800 |
846.600 |
846.600 |
|
(b) Reserves & Surplus |
27679.500 |
23877.500 |
22516.300 |
|
(c) Money received against share warrants |
0.000 |
561.500 |
561.500 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
28562.300 |
25285.600 |
23924.400 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
4078.700 |
800.100 |
3172.600 |
|
(b) Deferred tax liabilities (Net) |
74.800 |
67.300 |
118.800 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
66.000 |
47.000 |
24.500 |
|
Total
Non-current Liabilities (3) |
4219.500 |
914.400 |
3315.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
8640.000 |
8422.000 |
1500.000 |
|
(b)
Trade payables |
1401.100 |
2542.600 |
525.100 |
|
(c)
Other current liabilities |
1779.400 |
4215.500 |
1003.500 |
|
(d)
Short-term provisions |
516.700 |
322.200 |
496.000 |
|
Total
Current Liabilities (4) |
12337.200 |
15502.300 |
3524.600 |
|
|
|
|
|
|
TOTAL |
45119.000 |
41702.300 |
30764.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
320.000 |
367.400 |
483.400 |
|
(ii)
Intangible Assets |
121.500 |
15.100 |
1.800 |
|
(iii)
Capital work-in-progress |
842.400 |
691.200 |
796.500 |
|
(iv) Intangible assets under development |
1140.000 |
1043.500 |
439.100 |
|
(b) Non-current
Investments |
2065.100 |
2055.600 |
1481.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
0.000 |
0.000 |
0.000 |
|
(e)
Other Non-current assets |
177.400 |
120.500 |
108.900 |
|
Total
Non-Current Assets |
4666.400 |
4293.300 |
3310.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
280.000 |
280.000 |
280.000 |
|
(b)
Inventories |
94.500 |
116.600 |
76.800 |
|
(c)
Trade receivables |
12262.000 |
9526.500 |
7298.100 |
|
(d)
Cash and cash equivalents |
5161.400 |
4940.800 |
3970.400 |
|
(e)
Short-term loans and advances |
18053.400 |
17777.600 |
10656.000 |
|
(f)
Other current assets |
4601.300 |
4767.500 |
5172.900 |
|
Total
Current Assets |
40452.600 |
37409.000 |
27454.200 |
|
|
|
|
|
|
TOTAL |
45119.000 |
41702.300 |
30764.900 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
31174.700 |
28482.200 |
4805.900 |
|
|
|
Other Income |
925.300 |
750.800 |
733.300 |
|
|
|
TOTAL (A) |
32100.000 |
29233.000 |
5539.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Tours |
24647.300 |
22497.000 |
0.000 |
|
|
|
Employees benefits expense |
1539.800 |
1302.800 |
1109.900 |
|
|
|
Other expenses |
2241.200 |
2016.800 |
1280.100 |
|
|
|
TOTAL (B) |
28428.300 |
25816.600 |
2390.000 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3671.700 |
3416.400 |
3149.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
649.400 |
586.200 |
548.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3022.300 |
2830.200 |
2600.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
250.500 |
295.200 |
377.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2771.800 |
2535.000 |
2223.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
958.400 |
881.200 |
811.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1813.400 |
1653.800 |
1411.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (INR) |
|
|
|
|
|
|
Basic
|
10.33 |
9.77 |
9.56 |
|
|
|
Diluted
|
10.27 |
9.36 |
9.11 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
112.300 |
3086.200 |
515.200 |
|
|
|
|
|
|
Cash generated from operations |
(544.600) |
3382.400 |
(857.000) |
|
|
|
|
|
|
Net Cash flow from Operating activities |
(1344.300) |
2526.000 |
(1811.500) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
143.57 |
122.08 |
554.28 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
2.54 |
2.99 |
0.66 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
20.75 |
41.25 |
0.00 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
38.85 |
29.30 |
41.01 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
1.51 |
1.61 |
1.83 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.37 |
0.46 |
0.23 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.45 |
0.49 |
0.22 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.43 |
0.61 |
0.15 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.08 |
0.08 |
0.07 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
5.65 |
5.83 |
5.74 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
5.82 |
5.81 |
29.37 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
4.02 |
3.97 |
4.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
6.35 |
6.54 |
5.90 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
3.28 |
2.41 |
7.79 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
3.27 |
2.41 |
7.77 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.63 |
0.61 |
0.78 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
14.53 |
14.54 |
6.13 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
3.28 |
2.41 |
7.79 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 5.00/- |
|
|
|
|
Market Value |
INR 252.00/- |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particulars |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
846.600 |
846.600 |
882.800 |
|
Reserves & Surplus |
22516.300 |
23877.500 |
27679.500 |
|
Money received against share warrants |
561.500 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
23924.400 |
24724.100 |
28562.300 |
|
|
|
|
|
|
long-term borrowings |
3172.600 |
800.100 |
4078.700 |
|
Short term borrowings |
1500.000 |
8422.000 |
8640.000 |
|
Current Maturities of Long term debt |
515.200 |
3086.200 |
112.300 |
|
Total
borrowings |
5187.800 |
12308.300 |
12831.000 |
|
Debt/Equity ratio |
0.217 |
0.498 |
0.449 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
4805.900 |
28482.200 |
31174.700 |
|
|
|
492.651 |
9.453 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
4805.900 |
28482.200 |
31174.700 |
|
Profit |
1411.700 |
1653.800 |
1813.400 |
|
|
29.37% |
5.81% |
5.82% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
DATE OF SATISFACTION |
AMOUNT |
ADDRESS |
|
1 |
G36731867 |
100079331 |
KOTAK MAHINDRA PRIME LIMITED |
25/11/2016 |
- |
- |
5190766.0 |
27BKC, C 27, G BlockBandra Kurla Complex, Bandra (E),MumbaiMa400051IN |
|
2 |
G32685224 |
100070486 |
BMW INDIA FINANCIAL SERVICES PRIVATE LIMITED |
24/11/2016 |
- |
- |
5125000.0 |
TOWER C, 14TH FLOOR, BUILDING NO. 10DLF CYBER CITY, PHASE-IIGURGAONHa122002IN |
|
3 |
G04919809 |
100030495 |
Axis Bank Limited |
30/03/2016 |
- |
- |
3639980000.0 |
7th Floor, Axis House,Bombay Dyeing Mills Compound, WorliMumbaiMH400025IN |
|
4 |
G05014410 |
100030768 |
Axis Bank Limited |
25/02/2016 |
- |
- |
13522000000.0 |
C-2, wadia international centrePandurang Budhkar MargMumbaiMH400025IN |
|
5 |
G01343581 |
100019179 |
KOTAK MAHINDRA PRIME LIMITED |
31/07/2015 |
- |
- |
1477336.0 |
27BKC, C 27, G BlockBandra Kurla Complex, Bandra (E),MumbaiMa400051IN |
|
6 |
C14982318 |
10514320 |
Axis Trustee Services Limited |
04/08/2014 |
- |
- |
750000000.0 |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound,Pandurang Budhkar Marg, Worli,MumbaiMH400025IN |
|
7 |
C66122417 |
10394956 |
State Bank of India |
05/12/2012 |
28/09/2015 |
- |
6200000000.0 |
Corporate Accounts Group BranchNeville House, J. N. Heredia Marg, Ballard Estate,MumbaiMH400001IN |
|
8 |
G72649569 |
10334090 |
TOURISM FINANCE CORPORATION OF INDIA LIMITED |
13/01/2012 |
19/12/2017 |
- |
750000000.0 |
4th Floor, Tower 1, NBCC PlazaPushp Vihar, Sector-5, SaketNew DelhiDe110017IN |
|
9 |
G28494797 |
10352456 |
Axis Trustee Services Limited |
23/04/2012 |
- |
28/11/2016 |
1300000000.0 |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound,Pandurang Budhkar Marg, Worli,MumbaiMH400025IN |
|
10 |
G10487650 |
10330976 |
Axis Trustee Services Limited |
23/12/2011 |
26/08/2014 |
01/09/2016 |
150000000.0 |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound,Pandurang Budhkar Marg, Worli,MumbaiMH400025IN |
UNSECURED LOANS
|
PARTICULARS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Non-Convertible Debentures |
2866.400 |
0.000 |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
Other Short Term Loan |
3750.000 |
5500.000 |
|
|
|
|
|
Total |
6616.400 |
5500.000 |
GENERAL INFORMATION
Cox and Kings Limited (‘the Company’) is engaged in the business of inbound and outbound travel, leisure and foreign exchange dealing. Cox and Kings Limited is a diversified, multinational enterprise focused on the travel sector.
The company is a listed company incorporated and domiciled in India and has its registered office at Mumbai, Maharashtra, India. The company is listed on BSE, NSE and Luxembourg stock exchange.
OVERVIEW OF FINANCIAL
PERFORMANCE
In FY17, Cox & Kings Ltd has built upon its core strengths, focused on quality of growth and continued on its journey of unlocking value. The company is focused on businesses in which it is dominant and has further increased its market-leading position across divisions. The year presented several challenges such as Brexit, terrorist attacks in some key geographies such as Brussels and London, and political rumblings in Europe and the US. Back in India, the government’s demonetization programme and finalization of the Goods and Services Tax (GST) led to significant volatility in the business environment.
Cox & Kings successfully steered through all of these challenges and has emerged with higher margins and a leaner balance sheet. Cox & Kings’ net revenues and EBITDA from continuing operations grew by 4% and 5% respectively in FY17, despite the translationary impact of the 9% depreciation of the pound sterling versus the rupee year over year (a substantial proportion of the company’s net revenues and EBITDA are denominated in pound sterling).
As part of the company’s value unlocking focus, the board approved the demerger of the highly profitable Foreign Exchange division (which falls under Leisure - India) in June 2017. Cox & Kings will retain a 19% stake in the demerged entity, which will be christened Cox & Kings Financial Service Ltd. (CKFSL). The balance 81% will be distributed to Cox & Kings’ shareholders pro-rata. The foreign exchange division will act as a springboard for CKFSL to pursue its own, independent high-growth strategy. CKFSL will be applying for an NBFC license and will commence new financial product lines related to the travel sector. The scale of the lending opportunity within the travel sphere is outsized and fast-growing and CKFSL will be in pole position to tap into that growth.
The company’s continued efforts to reduce debt were visible with gross debt reducing by INR 4270.500 Million to INR 36738.900 Million as of March 31, 2017. Net debt to equity ratio now stands at a low 0.6x.
LEISURE - INDIA
Leisure - India faced multiple challenges in FY17, including demonetization, heightened competitive activity, introduction of biometrics for Schengen countries prior to peak season, depreciation of the rupee prior to peak season, and finalization of GST. Despite all these factors, Leisure - India’s net revenues grew by 9% and EBITDA grew by 11% y-o-y in FY17, much above peers. EBITDA margins expanded despite an environment of severe price competition, especially from online players.
Today Cox & Kings maintains a high-quality network of 13 own stores, 156 franchisees and 89 preferred sales agents. In addition, the company has Business Travel implants at client companies across the country and Foreign Exchange specialists across each of its operating locations, giving it an edge in terms of distribution.
The company’s Outbound packaged holidays business continued to demonstrate strong growth as the trend of holidaying overseas is gaining prominence. Greater connectivity, better affordability, change in lifestyle habits and easy financing presents a robust outlook for the outbound travel segment in India. Domestic travel continued to be a fast-growing segment.
The domestic tourism boom continues as the trend of frequent
short vacations is catching on, apart from an increase in penetration.
Meetings, Incentives, Conferences and Events (MICE) as a segment is also growing
rapidly due to the company’s strong service quality in the B2B segment.
Business Travel (BT) grew substantially in FY17 due to the company’s dedicated
sales force which ensure customized flexible solutions to its corporate
customers. Inbound travel witnessed strong growth in FY17, while Foreign
exchange division grew quite substantially.
LEISURE –
INTERNATIONAL
Leisure International operations are spread across Dubai, UK, US, Australia and Japan. Leisure – International net revenues from continuing operations grew by 2% y-o-y in FY17, while EBITDA declined by 9% to `168 crores. Profitability was mainly impacted by declining consumer confidence in the UK due to Brexit and the impact of the weak pound sterling against other currencies, which curtailed consumers’ travel budgets there.
However, margins improved substantially in FY17 pursuant to the reorganization exercise in late FY16. C&K Dubai performed very strongly in FY17 and now constitutes nearly half of Leisure - International’s EBITDA.
The outlook for global travel remains robust. ITB World Travel Trend reported a 3.9% growth in worldwide outbound travel in 2016, led by 11% growth in Asia, 7% in the USA, and 2.5% in Europe. For 2017, WTTC expects higher growth of 4-5% with stronger growth from Europe and continued growth in Asia and USA.
EDUCATION
Education was faced with multiple challenges in FY17, including Brexit and the consequent decline in consumer confidence, the impact of higher minimum National-Living-Wage costs which could not be passed on immediately, numerous terrorist incidents in Europe which impacted travel sentiment, and adverse geopolitical rumblings in Europe and the UK through the year.
Despite all these factors, Education division EBITDA in pound sterling terms rose by 2% y-o-y in FY17 on rising bed capacity and higher occupancy. Cox and Kings remains a world leader in experiential learning or outdoor learning.
The company’s brands are market leaders in the UK which has among the most developed education systems in the world. The division caters to both primary school students as well as secondary school students, with brands PGL and NST having become household names in the UK.
The company has successfully expanded into Australia, which offers high potential due to similar preferences for outdoor learning over classroom learning as in the UK.
MEININGER
Meininger was faced with a challenging geopolitical environment in Europe along with stagnant growth across the continent and numerous terrorist incidents, including the Brussels airport attack (Meininger’s Brussels property accounted for about 10% of bed capacity in FY17).
In the face of significant odds, Meininger overall recorded 5% growth y-o-y in EBITDA in euro terms in FY17 on rising bed occupancy and operating leverage. Meininger Brussels itself saw a sharp bounce-back in bed occupancy over the year, which is testimony to the core strength of the Meininger business model.
Meininger’s full-year bed occupancy touched an all-time high of 76.8% in FY17. The division added 1,700 beds, or 25% additional bed capacity, within a three-month period, which boosted total bed capacity to 8,553 as of March 31, 2017
Meininger’s low capital intensity and remarkable resilience gives the company tremendous confidence to embark on an aggressive expansion plans over the next two years. The company is aiming to increase bed capacity to more than 15,000 beds by the end of FY19.
MANAGEMENT DISCUSSION
& ANALYSIS
SUMMARY AND OUTLOOK
Cox and Kings is a growing, diversified multinational travel enterprise with operations across 22 countries, including India, UK, US, Japan, Australia, Europe and the Middle East. The company caters to millions of travellers across varying age groups, including school children, college students, young couples, families and seniors. FY17 can best be characterized as the year in which we built upon our core strengths, focused on quality of growth and continued on our journey of unlocking value. We focused on businesses in which we are dominant and further increased our market-leading position across divisions. The year presented several challenges, such as Brexit, terrorist attacks in some key geographies such as Brussels and London, and political rumblings in Europe and the US. Back home, the government of India’s demonetization programme and the finalization of the Goods and Services Tax (GST) led to significant volatility in the business environment.
Cox & Kings successfully steered through all of these challenges and has emerged with higher margins and a leaner balance sheet. Cox & Kings’ net revenues and EBITDA from continuing operations grew by 4% and 5% respectively in FY17, despite the translationary impact of the 9% depreciation of the pound sterling versus the rupee year over year (a substantial proportion of the company’s net revenues and EBITDA are denominated in pound sterling).
Leisure – India faced multiple challenges in FY17, including demonetization, heightened competitive activity, introduction of biometrics for Schengen countries prior to peak season, depreciation of the rupee prior to peak season, and finalization of GST. Despite all these factors, Leisure - India’s net revenues grew by 9% and EBITDA grew by 11% y-o-y in FY17, much above peers. Education was faced with multiple challenges in FY17, including Brexit and the consequent decline in consumer confidence, the impact of higher minimum National-Living-Wage costs which could not be passed on immediately, numerous terrorist incidents in Europe which impacted travel sentiment, and adverse geopolitical rumblings in Europe and the UK through the year. Despite all these factors, Education division EBITDA in pound sterling terms rose by 2% y-o-y in FY17 on rising bed capacity and higher occupancy. Meininger was faced with a challenging geopolitical environment in Europe along with stagnant growth across the continent and numerous terrorist incidents, including the Brussels airport attack (Meininger’s Brussels property accounted for about 10% of bed capacity in FY17). In the face of significant odds, Meininger overall recorded 5% growth y-o-y in EBITDA in euro terms in FY17 on rising bed occupancy and operating leverage. Meininger Brussels itself saw a sharp bounce-back in bed occupancy over the year, which is testimony to the core strength of the Meininger business model.
Meininger added 1,700 beds, or 25% additional bed capacity, within a three-month period, which boosted total bed capacity to 8,553 as of March 31, 2017. Their visa processing services business (CKGS) recorded a better operational performance in FY17 on the back of better fixed-cost absorption owing to higher revenues as well as tight cost control. Their continued efforts to reduce debt were visible with gross debt reducing by INR 4270.500 Million y-o-y to INR 36738.900 Million as of March 31, 2017. Net debt to equity ratio now stands at a low 0.6x. As part of the company’s value unlocking focus, the board of Cox & Kings approved the demerger of the Foreign Exchange division (which falls under Leisure - India) in June 2017.
Cox & Kings will retain a 19% stake in the demerged entity. The balance 81% will be distributed to Cox & Kings’ shareholders pro-rata. The foreign exchange division will act as a springboard for CKFSL to pursue its own, independent high-growth strategy. CKFSL will be applying for an NBFC license and will commence new financial product lines related to the travel sector. The scale of the lending opportunity within the travel sphere is outsized and fast-growing and CKFSL will be in pole position to tap into that growth. Cox & Kings has spent the last four years consolidating and improving the quality of its businesses, strengthening its platform for growth, reducing debt and unlocking value. FY17 marked a new high in that journey
LEISURE - INDIA
Leisure - India faced multiple challenges in FY17, including demonetization, heightened competitive activity, introduction of biometrics for Schengen countries prior to peak season, depreciation of the rupee prior to peak season and finalization of GST. Despite all these factors, Leisure - India’s net revenues grew by 9% and EBITDA grew by 11% y-o-y in FY17, well above peers. EBITDA margins expanded despite an environment of severe price competition. Our robust positioning in the corporate segment enabled us to grow profitably, while our Retail business continues to forge ahead.
Their distribution network is deep and wide, which provides us an edge in terms of service quality over online and offline competitors. They currently maintain a high-quality network of 13 own stores, 156 franchisees and 89 preferred sales agents. In addition, we have Business Travel impants at client companies across the country and Foreign Exchange specialists across all of our operating locations. Our franchisees and agents are indispensable partners who take the Cox & Kings brand deep into the heart of the country to cater to the buoyant demand in those cities and towns.
OUTBOUND TRAVEL
India’s outbound travel market is growing at a rapid rate. The trend of spending on experiences and the urge to go on vacations around the world is on an upswing. Being a part of the world’s fastest-growing economy, the Indian traveller is travelling more frequently and to newer places. As per India’s ministry of tourism 20.4 million Indians booked overseas trips in 2015. As per UNWTO, the number of outbound travellers from India will likely grow to 50.0 million by 2020. According to Forbes, the average Indian traveller is a heavy spender, splurging about US$1,200 per visit, as compared with Americans who spend US$700 and Britons who spend US$500.
While overseas vacations are very popular among those living in the metropolitan cities, the advent of social media (Facebook, Instagram etc.) has helped spread the impulse to travel to tier-II and tier-III cities and towns over the last few years. Outbound travel from India is experiencing rapid growth.
They observe that people across generations are increasingly confident about travelling outside India. Group overseas travel packages are popular for a variety of reasons; viz timeand-cost efficiency, a sense of security, language barriers, food preferences and of course the pleasure of shared experiences among family and friends. Packaged holidays remain the popular choice of Outbound travellers. Their Duniya Dekho brand, which offers escorted International package tours to Indian travellers, has strong brand recall. Given our large volumes and power of aggregation, they are able to design best-value packages and offer attractive deals to customers.
Their expertise enables us to ensure that their customers have a hassle-free holiday, which drives repeat business and positive word-of-mouth references. Their FlexiHol brand which offers customized International holiday packages is strongly positioned to cater to the increasingly discerning traveller, who likes to enjoy flexibility in itinerary and a more eclectic choice of places to visit. Greater connectivity, better affordability, change in lifestyle habits and easy financing will continue to drive growth of the outbound travel segment in India. The government of India implemented the Goods and Services Tax (GST) on July 01, 2017, and this is expected to help shift demand to the tax-compliant segment within various categories of products and services in the country. They estimate the market share of tax-compliant players within the travel & tourism industry is less than 30%. They expect an increase in tax compliance under the GST regime, which would enable them to further widen their leadership in India’s Outbound travel sector.
MICE
Cox and Kings’ formidable positioning in the corporate segment enables them to cater to the huge opportunity presented by Meetings, Incentives, Conferences and Events (MICE) as a category. According to the ITB World Travel Trends Report, MICE, as a segment, contributes to 54% of total travel market globally. The MICE market is growing fast as requirements are increasing for different sectors. The past convention of having a formal conference is giving way to informal interactions at exotic locations, workshops and team-building activities.
The MICE market has evolved substantially over the years, offering multiple options now in terms of product, price and duration. Different businesses are using MICE to serve different purposes. For e.g., FMCG and Agro sectors are offering overseas incentive trips to dealers in towns and rural areas. Banking and Financial institutions are organising training seminars and sales meets in overseas locations. Corporates see MICE as part and parcel of business operations rather than as an item of discretionary spending reserved for the “good times”.
According to the US-based Incentive Research Foundation, properly designed and executed incentive travel programs can increase sales productivity by 18% and produce an ROI of 112%. Organisations that provide noncash rewards such as incentive travel have three times higher revenue increases. 100% of Best-in-Class companies (those with the highest customer retention and sales growth) offer group travel to recognize year-end sales success. Of companies that run awards programs, 53% use incentive travel to recognize sales, 43% to recognize employees, 33% to recognize channel partners and 27% to recognize customer loyalty.
Cox and Kings remains the preferred choice for MICE for corporates in India due to their undying commitment to quality and their ability to serve their needs offering the best-possible value. As this segment enjoys traction throughout the year, it cushions them from the impact of seasonality in their non-corporate businesses. They are confident that this segment will continue to grow robustly over the medium to long term and we look to further entrench our dominance.
INBOUND TRAVEL
Cox & Kings operates at the premium end of the Inbound travel market. Inbound business witnessed robust growth in FY17. Yet, the Inbound sector as a whole is plagued by legacy factors such as weak infrastructure, security, connectivity, etc. as well as sub-par maintenance of heritage sites relative to other countries. While India ranks sixth with a tally of 36 of the 1,073 World Heritage Sites, they are poorly maintained.
In the medium to long term more concrete steps towards boosting India’s soft and hard infrastructure will be needed in order to deliver the kind of tourist volumes that are befitting of a country of our size and potential.
In terms of soft infrastructure, we believe that security, sanitation, hygiene and cleanliness are some of the key focus areas which require work. In terms of hard infrastructure, roads, railways, airports, ports and non-premium hotels need to be brought up to global standards.
However, recent initiatives of the Government of India like the UDAN (Ude Desh Ka Aam Nagrik) scheme, primarily aimed at enabling better Regional Connectivity and making air travel affordable, is aiding network expansion by airlines.
Various airlines have announced flights to 43 cities connecting them by air to major cities like Delhi, Mumbai, Hyderabad and Chennai. Also, the e-Visa facility has been extended to the citizens of 161 countries arriving at 16 international airports in India. During January-December 2016, a total of 10,79,696 tourists arrived on e-Visa, a growth of 143% compared to the same period in 2015.
Whilst some progress has been made to encourage tourism into India, they believe that the need for further improvement is substantial in order for India to establish itself as a major global tourist destination.
DOMESTIC TRAVEL
Domestic travel business relates to Indians travelling on holiday within India to their favourite destinations in groups, as individuals, or as part of MICE. They provide end-to-end solutions including holiday packages, air tickets, rail tickets, bus tickets, transfers, hotels, tours, attractions, sightseeing, entertainment etc. India became the world’s third largest aviation market in 2016 after the US and China, overtaking Japan, with domestic passenger traffic touching 100 million. Air travel penetration is expected to deepen further as the Government of India has awarded a further 43 licenses to five airlines (winning bidders) to ply 70 regional routes. Under the Regional Connectivity Scheme (RCS) these routes will connect 43 unserved and under-served airports to major cities. Under this scheme, 50% of the air tickets will be capped at INR 2,500 per seat per hour and the rest will be sold based on demand. In the second phase, another 27 airports are expected to be connected and 58 new routes will be added. This improved connectivity and affordability will drive domestic travel even higher.
The domestic packaged holidays market is growing significantly as large segments of Indians prefer to travel in groups with families and friends. Indians are also travelling more frequently and prefer to indulge in myriad group activities while on location such as sightseeing, safaris, trekking etc.
The concept of holidaying has changed from having only one long vacation in a year to taking many additional short trips for one week or over long weekends. Their Bharat Deko brand is a market leader and holds significant brand equity among the mid to mass market. In the luxury segment, their Deccan Odyssey luxury train experience is an exploration of India's most vibrant locales, timeless traditions and unmatched wildlife and cultural diversity. They remain positive on the long-term growth prospects of the Domestic travel business.
BUSINESS TRAVEL
Their Business Travel division provides customized and flexible travel services to corporates given the always-changing, never-ceasing nature of corporate travel. They provide services related to domestic and international flight tickets, rail tickets, bus tickets, hotels, meals, private car-hire or taxi services, as well as travel insurance and other travel-related services. This business is growing rapidly along with the growth in corporate travel in India - especially international travel.
According to a recent study, India is the world’s 10th largest Business Travel market, amounting to US$29.6 billion per annum. The Indian business travel market is poised to be the world’s fastest-growing at a 12% CAGR over 2015-2020, according to the study.
They have a well-entrenched position within the Business Travel industry. Their corporate customers like us for our efficient service; implants on location make it easier to interface and execute complex business itineraries in a customized and flexible manner. They have robust technology platforms to ensure maximum efficiency of service. Their Business travel division is also a significant lead generator for their other travel divisions such as holidays, MICE and forex.
AWARDS AND
RECOGNITION:
India - 2016-17
• World Travel Award to Cox & Kings for Asia’s Leading Luxury tour operator for 2016
• World Travel Award for India’s Leading Tour Operator for 2016
• World Travel Award for India’s Leading Travel Agency for 2016
• Conde Nast Traveller India Readers' Travel Awards 2016 for India’s Favourite Tour Operator for 2016
• Travel + Leisure Awards for Best Tour Operator for 2016
• Hospitality India Awards for Best Domestic Tour Operator for 2016
• Hospitality India Awards for Best Experiential Travel Company for 2016
• IATO Annual Convention for Best Brochure for 2016.
• IATO Annual Convention for Best CD for 2016
• Champions of ChinaPlas for Trade Fairs for 2016
• Marriott India Travel Awards 2016 for Excellence in partnership - Highest Growth over last year, Global for 2016
• French Ambassodor's Travel Awards 2017 for Gold Award - Best growth in French via assuances for 2016-17
• Travel and Lifestyle Leadership Award 2016 presented by Lonely Planet for Best Outbound Tour Operator for
2016-17
• SATTE Awards 2017 for Best Outbound Tour Operator for 2016-17
• Sri Lankan Airline Top Agents Award for Passenger Sales for 2016-17
SUBSIDIARIES -
2016-17
PGL
- Won ‘Best Adventure Experience’ at the School Travel Awards. The School Travel Awards recognise the best attractions, destinations, companies and practitioners in the field of educational travel and learning outside the classroom (LOtC).
NST
- Career Academy UK - Volunteer Organisation of the Year (Northern) 2017. Career Ready is a UK wide charity linking employers with schools and colleges to open up the world of work to young people.
- Quality Management ISO 9001 - 2008.
- Environmental Management ISO 14001 - 2004
- Excellence in Customer Service Nottingham Trent University
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017
(INR IN MILLION)
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
31.12.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
INCOME FROM OPERATIONS |
|
|
|
|
Revenue from operations |
5540.200 |
5782.600 |
20449.700 |
|
Other Operating Income |
66.200 |
30.700 |
161.000 |
|
Other Income |
325.100 |
268.300 |
875.800 |
|
Total
Income from Operations |
5931.500 |
6081.600 |
21486.500 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of Tours |
4060.100 |
4285.400 |
15016.600 |
|
Employee benefits expense |
466.200 |
450.300 |
1355.800 |
|
Finance Costs |
275.700 |
231.400 |
717.200 |
|
Depreciation and Amortization expenses |
73.400 |
74.900 |
215.200 |
|
Other Expenditure |
533.100 |
305.200 |
1566.600 |
|
Total
Expenses |
5408.500 |
5347.200 |
18871.4100 |
|
Profit/(Loss) for the period before tax, Exceptional Items
|
523.000 |
734.400 |
2615.100 |
|
Exceptional Items |
--- |
--- |
--- |
|
Profit / (Loss) for the period before Tax (after
Exceptional Items) |
523.000 |
734.400 |
2615.100 |
|
Tax Expenses |
175.400 |
260.600 |
909.500 |
|
Profit/Loss for the period after tax (after exceptional
items) |
347.600 |
473.800 |
1705.600 |
|
Other comprehensive
income (after tax) |
--- |
--- |
--- |
|
Total comprehensive income for the period (after
tax) |
347.600 |
473.800 |
1705.600 |
|
Equity share capital |
882.800 |
882.800 |
882.800 |
|
Other equity |
--- |
--- |
--- |
|
Earnings per Share (EPS) of INR 5/- each |
|
|
|
|
Basic |
1.97 |
2.68 |
9.66 |
|
Diluted |
1.97 |
2.68 |
9.66 |
Notes:
1. Given the seasonal nature of the business of the Company, the results of any quarter may not be a true and/or proportionate reflection of the annual performance of the Company.
2. The above results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 14th February, 2018 has approved the above results and its release.
3. Tax Expense include Current Tax and Deferred Tax.
4. On 30th May, 2017 the Board had approved the Scheme of Arrangement under
sections 230 to 232 read with Sections 52 And 66 of the Companies Act, 2013 for
demerger of its Foreign Exchange Division into a wholly owned subsidiary i e.
Cox & Kings Financial Service Limited. The appointed date of scheme is 01st
April 2017 The said scheme then received in-principle approvals from both the
Stock Exchanges (BSE & NSE), Presently, the Company is in the process of
filing the application with National Company Law Tribunal ( NCLT) for the
demerger approval. The effect of demerger will be accounted after the scheme is
approved by NCLT.
5. The figures for the corresponding period of the previous year have been
restated, regrouped wherever necessary to make them comparable.
6. The company is predominantly engaged in business of Tours and Travels under
leisure segment, whose revenue and operating income are reviewed regularly by Chief
Operating Decision Maker. As such there are no separate reportable segments as
per Ind-AS 108.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
Guarantees: |
|
|
|
Corporate Guarantee given on behalf of wholly owned
subsidiaries |
15728.600 |
16047.500 |
|
Guarantees given by Bank |
446.400 |
313.300 |
|
Legal Disputes* |
|
|
|
Disputed income Tax Demand |
133.400 |
59.600 |
|
Disputed Service Tax demand |
1304.000 |
1304.000 |
|
Claim against the Company not acknowledged as debts* (Excluding matters pending in court for which amount
cannot be ascertained). |
309.900 |
146.500 |
|
* The above disputed liabilities are not expected to have
any material effect on the financial position of the Company. |
||
FIXED ASSETS:
Tangible Assets
· Buildings
· Plant and machinery
· Electrical installations
· Equipment
· Furniture and fixtures
· Vehicles
· Leasehold improvements
· Software
· Video
·
Trademarks
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
|
INR |
|
US Dollar |
1 |
INR 64.96 |
|
UK Pound |
1 |
INR 90.23 |
|
Euro |
1 |
INR 80.09 |
INFORMATION DETAILS
|
Information
Gathered by : |
SAV |
|
|
|
|
Analysis Done by
: |
PRY |
|
|
|
|
Report Prepared
by : |
IND |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.