annual report 20oo-q1 - ReportJunction.com

annual report 20oo-q1 - ReportJunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net WHAT WHAT YOU S E E . WE ARE. ANNUAL REPORT 20OO-Q1 CORPORATION OF www.repor...

623KB Sizes 0 Downloads 0 Views

Recommend Documents

annual report annual report annual report annual report annual report
What do donors to the Toronto Public Library Foundation make possible? They help Toronto's ... programs and an all-star

annual report annual report annual report annual report 2003
varieties of cottage cheese (cream cheese SOK and cottage cheese ... test sample of cottage cheese natural SP with diffe

2016 Annual Report annual report
“In Accordance” with its Core option. The sustainability indicators cover. Ayala Land's units involved in project de

AnnuAl RepoRt AnnuAl RepoRt - Kindering
Diane Demopulos. Kim Fisher. Brian Kuske. Glenn Lux ..... Betty & Kemper Freeman, Jr. Hasbro Children's Fund ... Goldman

Annual Report Annual Report Annual Report - Chesapeake Bay Trust
Honorable Shane Robinson. Maryland House of Delegates .... James Rush, National Park Service ..... Marzi Zang. Maureen Z

annual report annual report & financial - Foundling Museum
Jan 3, 2016 - To mark the 250th anniversary of Hogarth's death, Progress brought ... the development of the small pox va

Annual Report Annual Report - Kardan NV
Apr 15, 2016 - Globe Trade Centre S.A. – listed on the Warsaw Stock. Exchange in 2004 – of which Kardan sold its fin

annual report 2010 annual report 2010 - mciny
Sep 15, 2010 - Juan García de Oteyza, director of Aperture and ...... and Antonio Ortuño read a selection of texts that

annual report annual report - Big City Mountaineers
Joe Llewellyn. Jonathan Hudson. Rachel Zurer. Kristi Carlquist. Timothy .... Adam and Peggy Pena. Alexander Tolger. Alex

Annual Report Annual Report - Cheyenne Mountain Zoo
It's hard to believe another year has gone by. When I look back at how the Zoo has grown and what we've achieved this ye

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

WHAT

WHAT

YOU S E E .

WE ARE.

ANNUAL REPORT 20OO-Q1

CORPORATION OF

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

ANNUAL REPORT 2000-01

TRANSPORT CORPORATION OF T /NDIALTD

(FORMERLY KNOWN AS TCI INDUSTRIES LIMITED)

Board of Directors S.N.Agarwal

Chairman

D. P. Agarwa!

Vice Chairman & Managing Director

0. Swaminatha Reddy K.S.Mehta M.P.Sarawagi

Wholetime Director

VIneetAgarwal

Executive Director

.

Vice President-Finance & Secretary: A. K. Bansal Auditors: R, S. Agarwala & Company Chartered Accountants Bankers: State Bankoflndia Citibank Bankoflndia Canara Bank State Bank of Mysore

CONTENTS Particulars

Page No.

Notice

1

KeyFinancials

5

Management Discussion and Analysis Directors'Report Auditors' Report

12

FlatNos.306&307,1-8-271 to273, 3rd Floor, Ashoka Bhoopal Charrfbers, S. P. Road, Secunderabad- 500 003.

Balance Sheet

14

Profit & Loss Account

15

Corporate Office: TCI House, 69, Institutional Area Sector-32, Gurgaort-122001, Haryana Phone: (0124KfromDelhi91)6381603to607 Fax: (0124) (from Delhi 91)6381611 E-mail;[email protected] Internet: www. tcii.com

Schedules to the Accounts

16

Notes on Accounts

21

Additional Information

22

Cash Flow Statement

24

Registered Office:

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

ANNUAL REPORT 2000-01

Notice for Annual General Meeting

TRANSPORT CORPORATION OF JNDIALTD

Notice is hereby given that the 6th Annual General Meeting of the Company will be held on Friday, the 7th September, 2001 at 10.30 AM at Surana Udyog Auditonum, The Federation of Andhra Pradesh Chambers of Commerce and Industry, 11 -6-841, Red Hills, Hyderabad - 500 004, to transact the following business: Ordinary Business: 1. 2. 3.

To receive, consider and adopt the Audited Profit & Loss A/c for the year ended 31 st March 2001 and the Balance Sheet as at that date together with the Reports of Directors & Auditors. To declare dividend on Equity shares. To appoint a Director in place of Mr. S.N. Agarwal, who retires by rotation and, being eligible, offers himself forre-appointmenl.

4. 5.

To appoint a Director in place of Mr. 0. Swaminatha Reddy, who retires by rotation and, being eligible, offers himself for re-appointment. To appoint auditors in place of retiring auditors and to fix their remuneration.

Special Business: 6.

7.

8.

9.

To consider and, if thought fit, to pass, with or without modification, the following resolution as an ordinary resolution: "RESOLVED THAT M/s. Chitracar Sharma & Co., Chartered Accountants, Kathmandu, be and are hereby appointed as Branch Auditors for auditing the accounts of all the branches of the Company situated in Royal Kingdom of Nepal for the year 2001-02 and to hold office till the conclusion of the Next Annual General Meeting at a remuneration to be fixed by the Board of Directors of the Company." To consider and, if thought fit, to pass, with or without modification, the following resolution as an ordinary resolution: "RESOLVED THAT in continuation to the resolution passed by the shareholders in the Annual General Meeting held on 14th October, 1998 and subject to the provisions of Sections 198,269 & 309 read with Schedule XIII and other applicable provisions, if any, of the Companies Act, 1956, the Company do hereby revise the remuneration payable to Mr. Vineet Agarwal, Executive Director, w.e.f. 1st October, 2001 as per the details set out in the explanatory statement annexed hereto." "RESOLVED FURTHER THAT the Board of Directors be and is hereby authorized to do all such acts & deeds as may be expedient to give effect to this resolution.' To consider and, if thought fit, to pass, with or without modification, the following resolution as an ordinary resolution: "RESOLVED THAT in accordance with Schedule XIII and the provisions of Sections 198,269 & 309 and other applicable provisions, if any, of the Companies Act, 1956, and subject to the consents and approvals, if any as may be necessary, the Company hereby approves the terms of appointment of Mr. M.P. Sarawagi as Whole-time Director w.e.f. 1st Jan'2002 to 31st Dec'2003 on the terms & conditions as set out in the explanatory statement in accordance with the agreement to be executed with Mr. M.P. Sarawagi." "RESOLVED FURTHER THAT in the event of inadequacy or absence of profit in any financial year, Mr. M.P. Sarawagi shall be paid the same remuneration as set out in the explanatory statement, as minimum remuneration but subject to the upper limit, if any, prescribed under the Companies Act, 1956 from time to time." To consider and, if though fit, to pass, with or without modification, the following resolution as a special resolution: "RESOLVED THAT in accordance with the provisions of section 198,309(4), 310 and other applicable provisions, if any, of the Companies Act, 1956 in this behalf, the non-executive directors of the Company be remunerated by way of commission, the aggregate amount whereof shall not exceed 0.50% (half percent) per annum of the net profits of the Company computed in the manner laid down in sections 349 & 350 of the Companies Act, 1956 for a period of five years, commencing from financial year 2001-02, in such amounts or proportions as may be determined by the Board from time to time." By order of the Board For Transport Corporation of India Ltd.

Place: Gurgaon Date: 14th June, 2001

A.K. Bansal Vice President - Finance & Secretary

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

TRANSPORT CORPORATION OF JNDIALTD

Notes: a)

The relative Explanatory Statement pursuant to Section 173(2)ofthe Companies Act, 1956, in respect of Item No.6 to 9 set out above is annexed hereto.

b)

A MEMBER ENTITLED TO ATTEND AND VOTE IS ALSO

8.

As informed earlier, with effect from 01/04/99, Share Transfer Work and other related jobs are being handled in-house by the Company at its Corporate Office at Gurgaon (Haryana). Therefore, the members are requested to address all their communications regarding share/debenture related matters to Corporate Office of the Company for prompt handling.

9.

The members may also note that Shweta Computers Ltd., the share registrars of the parent company i.e. TC! Industries Ltd. (Earlier known as Transport Corporation of India Ltd.) were appointed as Trustees for disposal of fractional shares and for remitting the proceeds to be to the respective shareholders. They have already disposed off the shares and the proceeds thereof have also been remitted to the shareholders, wherever applicable.

10.

The members are requested to surrender their old certificates (issued by the then Transport Corporation of India Ltd. - Now known as TCI Industries Ltd., the transferor Company under the Scheme of Arrangement) along with set of four signature cards to M/s. Shweta Computers-Ltd., Devki Chambers, 1-7-74/79, S.D. Road, Secunderabad-500 003, as requested by the said Company vide their letter dated 25/10/98 and subsequent reminders from our Company as well to obtain their new share certificates of four companies including this Company.

11.

As already informed, with a view to bring about operational efficiency and minimizing the related administrative cost in servicing multiple folios of the same shareholders, which are otherwise identical in all respects, the Company has decided to consolidate such folios with immediate effect. Accordingly, in future, you will receive only one consolidated dividend warrant and one Annual Report in respect of your entire holding. There is no need on your part to send your certificates for this purpose nor it is necessary for you to make any correction of folio nos. on the share certificates.

12.

The shares of the Company are at present listed on following Stock Exchanges viz. Bangalore, Cochin, Delhi, Hyderabad, Kolkata, Madras & Mumbai. The Company has since paid listing fees to all these Stock Exchanges in respect of the year 2001 -02.

13.

Pursuant to the requirements of the Listing Agreements of Stock Exchanges on Corporate Governance, the information about the Directors proposed to be appointed/re-appointed is given in the Annexure to the Notice.

14.

An amendment to Section 205 under the Companies (Amendment) Act, 1999 provided for transfer of unpaid / unclaimed dividend, application moneys received by the Company for allotment of any securities and due for refund, matured deposits and debentures with the Company for a period of seven years to Investor Education and Protection Fund. No notification / guidelines has yet been issued by the Central Government in this regard. Hence, the Company shall lake appropriate steps as & when the notification comes into force.

ENTITLED TO APPOINT A PROXY TO ATTEND AND, ON A POLL, TO VOTE INSTEAD OF HIMSELF. SUCH A PROXY NEED NOT BE A MEMBER OF THE COMPANY. PROXIES, IN ORDER TO BE VALID AND EFFECTIVE,

MUST BE DELIVERED AT THE

REGISTERED OFFICE OF THE COMPANY NOT LATER THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

The Share Transfer Books and the Register of Members will remain closed from 1st September, 2001 to 7th September, 2001 (both days inclusive). Dividend on equity shares for the year ended 31st March, 2001, will be paid on 12th September, 2001 to those Members whose names appear on the Company's Register of members at the close of working hours of the Company, on 7th September, 2001 to the extent eligible. In respect of shares held in electronic form, the dividend will be payable on the basis of beneficial ownership as per details furnished by National Securities Depository Limited and Central Depository Services (India) Limited for this purpose. The name of the Company has been changed from TCI Industries Ltd. to Transport Corporation of India Ltd. vide fresh Certificate of Incorporation dated 29/01/99, issued by the Registrar of Companies, Andhra Pradesh, Hyderabad. The equity shares of the Company are under Compulsory Demat w.e.f. 27th November, 2000. Those members, who are still holding the shares in physical form, are requested to convert the same into electronic form by sending their request to the Company through their Depository Participant. The ISIN No, of ourScripis INE-688A01014, The members are requested to intimate any change in their address with Pin Code, if any, immediately and quote Folio Number in all correspondence. They are also requested to bring their copy of Annual Report while coming to the meeting. Non-Resident Indian shareholders are requested to inform the Company immediately about: a) The change in the residential status on return to India for permanent settlement. b) The particulars of NRO Bank Account in India, if not furnished earlier. Members are requested to intimate under the signature of the sole/first Joint Holder about the Bank Account Number, Type of Account, Saving (SB) or Current (CA), name and address of the bank, in which they intend to deposit the Dividend Warrants, so that the same can be printed on Dividend Warrants in future, to avoid the incidence of fraudulent encashment of the instrument.

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

Explanatory Statement u/s 173(2) of the Companies Act, 1956 Special Business: Hern No. 6 M/s. Chitracar Sharma & Co., Chartered Accountants, Kathmandu, have been the Branch Auditors for auditing the accounts of all the branches of the Company situated in Royal Kingdom of Nepal. They have also intimated about their willingness to carry on the work as Branch Auditors for the year 2001-02. The Board recommends the appointment of M/s. Chitracar Sharma & Co., Chartered Accountants as Branch Auditors for the year 2001 -2002. None of the directors is interested or concerned in the resolution. Item No. 7 The members may be aware that Mr. Vineet Agarwal was appointed as Executive Director for a period of five years w.e.f. 1st July, 1998, as per the terms and conditions set out in the resolution passed in the AGM held on 14th October, 1998. The said terms envisaged payment of salary and other usual perquisites subject to the provisions of Schedule XIII and Sections 198,269 & 309 of the Companies Act, 1956. Keeping in view the excellent services being rendered by Mr. Vineet Agarwal, the Board of Directors in its meeting held on 14th June, 2001 has proposed to revise the remuneration payable to him w.e.f. 1st October, 2001, which is also in line with the present industry scenario and prevailing remuneration structure for top management personnel: Salary: In the range of Rs.1,00,000 to Rs.2,00,000 per month The Board or any Committee thereof, be and is hereby authorized in its absolute discretion and from time to time, to fix within the range stated above, the salary payable to Mr. Vineet Agarwat. Perquisites: Perquisites (evaluated as per Income-Tax Rules, wherever applicable, and at actual cost to the Company in other cases) like the benefit of the Company's furnished accommodation, gas, electricity, water and furnishings, club fees, personal insurance, use of car and telephone at residence or reimbursement of expenses in lieu thereof, medical reimbursement, leave and leave travel concession, educational benefits, provident fund, superannuation fund, gratuity and other benefits in accordance with the schemers) and rute(s) applicable to the members of the staff from time to time. In case Company-owned accommodation is not provided, Mr. Vineet Agarwal shall be eligible for house rent allowance as permissible to the managerial personnel and maintenance of accommodation including furniture, fixtures and furnishings, as may be provided by the Company. The Directors recommend the adoption of the Resolution at Item No. 7 of the Notice. Except for Mr.Vineet Agarwal himself, Mr.S.N.Agarwal, Chairman and Mr. D.P. Agarwal, Vice Chairman & Managing Director by virtue of being his relatives, no Director is in any way concerned or interested in the Resolution at Item No. 7 of the Notice. This may also be treated as an abstract pursuant to Sec. 302 of the Companies Act, 1956 of the terms and conditions of the appointment. The relevant documents regarding his terms are available for inspection up to the date of Annual General Meeting at the Regd. Office of the Company on any working day between 11 a.m. to 1p.m.

ANNUAL REPORT 2000-01

on 31 st December, 2001. Keeping in view the excellent services being rendered by Mr. M.P. Sarawagi, the Board of Directors in its meeting held on 14th June, 2001 has proposed to re-appoint him as Whole-time Director for a further period of two years effective 1 st January, 2002 on the following remuneration: Salary: In the range of Rs. 75,000 to Rs. 1,00,000 per month. The Board or any Committee thereof, be and is hereby authorized in its absolute discretion and from time to time, to fix within the range stated above, the salary payable to Mr. M.P. Sarawagi. Perquisites: Perquisites (evaluated as per Income-Tax Rules, wherever applicable, and at actual cost to the Company in other cases) like the benefit of the Company's furnished accommodation, gas, electricity, water and furnishings, club fees, personal insurance, use of car and telephone at residence or reimbursement of expenses in lieu thereof, medical reimbursement, leave and leave travel concession, educational benefits, provident fund, superannuation fund, gratuity and other benefits in accordance with the scheme(s) and rule(s) applicable to the membersofthestafffromtimetotime. In case Company-owned accommodation is not provided, Mr. M.P. Sarawagi shall be eligible for house rent allowance as permissible to the managerial personnel and maintenance of accommodation including furniture, fixtures and furnishings, as may be provided by the Company. The Directors recommend the adoption of the Resolution at Item No. 8 of the Notice. Except for Mr. M.P. Sarawagi himself, no Director is in any way concerned or interested in the Resolution at Item No. 8 of the Notice. This may also be treated as an abstract pursuant to Sec. 302 of the Companies Act, 1956 of the terms and conditions of the appointment. The relevant documents regarding his appointment are available for inspection up to the date of the Annual General Meeting at the Regd. Office of the Company on any working day between 11a.m.to1p.m. Hem No. 9 Section 309(4) of the Companies Act, 1956 provides that in case of a Director who is neither in the whole-time employment of the Company nor a managing director, may be paid remuneration by way of commission if the Company by passing a special resolution in its general meeting authorizes such payment.

Keeping in view the size of the organisation and magnitude of transactions with a high business growth potential, the Directors are subjected to put more time and attention to guide the Company in attaining its objectives in the fast changing environment. Therefore, the Board of Directors, in its meeting held on 14th June'2001 had decided to remunerate the non-executive directors by way of commission not exceeding 0.50% (half percent) of the net profits calculated in accordance with the provisions of the Companies Act11956 for a period of five years beginning financial year 2001-02, subject to the approval of the shareholders in such manner and proportion as may be approved by the Board of directors from time to time. Such remuneration will be in addition to the sitting fees already being paid to the non-executive directors. Mr. S. N. Agarwal, Mr 0 Swaminatha Reddy and Mr. K. S. Mehta being nonexecutive directors of the Company, may be deemed to be interested to the extent of the remuneration that may be received by them.

Item No. 8 The members may be aware that Mr. M.P. Sarawagi was appointed as Whole-time Director for the period w.e.f. 1st July, 1998 to 31st December, 2001, as per the terms and conditions set out in the resolution passed in the AGM held on 14thOctober,1998. The tenure of appointment of Mr. M.P. Sarawagi as Whole-time Director is expiring

TRANSPORT _ CORPORATION OF T INDIA LTD

By order of the board For Transport Corporation of India Ltd. Place: Gurgaon Date: 14th June, 2001

A.K. Bansal Vice President - Finance & Secretary

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

ANNUAL REPORT 2000-01

Annexure to the Notice Pursuant to clause 49 of the listing agreement with the stock exchanges, following information is furnished about the directors proposed to be appointed/re-appointed Mr S N Aoarwai: is an Engineering graduate, has also done Graduation in Management from Davenport College of Business, Michigan, USA. He has also completed Advanced Management Program (AMP) from Harvard Business School, USA, Mr. Agarwal has over 30 years of rich experience in industry, commerce and business. A Bangalore based leading industrialist, Mr. S. N. Agarwal has interest in Power and Gases. He is the Chairman/ Vice Chairman/ Director in number of prominent companies. Mr. Agarwa! also takes active interest in various chambers of association viz FICCI etc. OTHER DIRECTORSHIPS

COMMITTEE MEMBERSHIPS

Name of the Company

Name of the Committee

TCI Industries Ltd., Chairman

Transport Corporation of India Ltd.

Bhoruka Gases Ltd., Chairman

1. Audit Committee - Member 2. Shareholders/Investors Grievance

Bhoruka Textiles Ltd., Chairman Bhoruka Steel Ltd., Chairman

Committee - Member

Bhoruka Power Corporation Ltd.,

Kirloskar Electric Company Ltd.

Vice Chairman

Operations Committee - Member

Bhoruka Aluminium Ltd., Director

Bhoruka Steel Ltd.

DauralaOrganics Ltd., Director

Share Transfer Committee - Member

RSI Power Ltd., Director Director Iruppu Power Pvt. Ltd., Director Jamuna Power Corporation Ltd., Director KirtoskarElectric Co., Ltd.,

• Bhagya Nagar Metals Ltd.

M/s. TCI Finance Ltd., Chairman

Audit Committee- Chairman

M/s. Sujana Resorts Ltd., Chairman M/s. Sagar Power Ltd., Chairman

•Sagar Cements Ltd. Audit Committee- Chairman

M/s. VBC Industries Ltd., Director M/s. KCP Ltd., Director M/s. Surana Telecom Ltd., Director

• Khaitan Tiberwala Electricals Audit Committee-Chairman

Director

Audit Committee - Member

• V.B.C Industries Ltd. M/s. Bhagyanagar Metals Ltd., Director Audit Committee - Member M/s.KhaitanTiberwalaElectricalsLtd., -K.C.PLtd. M/s. Surana Strips Ltd., Director M/s. HBC Flex Tech Ltd., Director Mr. VineetAgarwai: Mr Agarwal has done graduation in Economics and Industrial Management from USA. He has been with the Company for over five years. He has been instrumental in creating IT/Computer awareness amongst the people working with the Company across the country. With Mr, Agarwal's thrust on further exploiting the core capability of the Company, XPS has established itself amongst the major players in express cargo segment. His continued attention on fast growing segments in the industry like logistics will certainly yield positive results to the Company. OTHER DIRECTORSHIPS

COMMITTEE MEMBERSHIPS

Mr. M. P. Sarawagi: Being a senior executive, he has been working with the Company for the last over 36 years, He possesses rich experience in the legal and commercial aspects concerning the transport industry.

Director TCI Realty Pvt. Ltd., Director Mr. 0. Swaminatha Reddv: Being a Chartered Accountant, Mr. Reddy is a renowned financial and management consultant. He has been the past Chairman of Andhra Bank. Besides, he has also held the position of the Chairman / Managing Director of A.P State Finance Corporation. Presently, he is on the Board of various reputed companies as Chairman/ Director. He is the Chairman - Governing Body of the Indian Institute of Economics, Hyderabad and Member-Management Committee of Federation of A.P. Chamber of Commerces Industry.

Name of the Company

Chairman

Name of the Company Name of the Committee Transystem Logistics International Transport Corporation of India Ltd. Ltd., Chairman 1. Shareholders/Investors Grievance Transcorp International Ltd., Director Committee - Member Etralog.com Solutions Ltd., Director 2. Share Transfer Committee- Member Apnatransport.com Ltd., Director

Wadi Power Company Ltd.,

OTHER DIRECTORSHIPS

TRANSPORT CORPORATION OF JNDIALTD

COMMITTEE MEMBERSHIPS

Name of the Committee

M/s.SagarCementsLtd., Chairman -Transport Corporation of India Ltd. M/s. Swan Vacuum Systems Ltd., Audit Committee - Chairman

Mr. Sarawagi is a law graduate from Calcutta University and has been instrumental in taking care of wide range of legal complexities inherent in transportation sector. He is also associated with The Calcutta Goods Transport Association & All India Motor Union Congress and other Cultural associations. OTHER DIRECTORSHIPS

COMMITTEE MEMBERSHIPS

Name of the Company TCI India Ltd., Director Transport Corporation

Name of the Committee Transport Corporation of India Ltd. Share Transfer Committee - Member

International Ltd., Director Bhoruka Finance Corporation of India Ltd., Director Bhoruka Investment Ltd., Director Orissa Tyres Ltd., Director

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

TRANSPORT ^ CORPORATION OF T

ANNUAL REPORT 2000-01

Key Financials

iNDIALTD

(in Rs. Lacs) PARTICULARS

FINANCIAL YEARS 2000-01

1999-00

1998-99

1997-98

1996-97

49910

43573

37788

33658

33399

1967

2163

OPERATIONAL

1

Turnover

2

Profit before interest .depredation & tax

2710

2402

2042

3

Interest (net)

1029

1044

1005

4

Depredation

851

612

510

491

459

5

Profit before tax

830

746

527

615

650

6

Tax

75

95

60

70

90

7

Net profit

755

651

467

545

560

8

Cash profit

1607

1263

9

Dividend Per Share (Rs.)

1.80

10

Earnings Per Share (Rs.)

.

861

1054

977

1036

1019

1.80

1.50

1.50

1.50

8.49*

8.93

6.41

7.48

7.68

FINANCIAL 11

Gross Block

13333

12444

11419

8941

9337

12

Net Block

11049

10879

10237

8137

8906

13

Net worth

5434

4344

3856

3509

3085

14

Total Debts

7613

7209

7165

6443

6668

15

Avg. Capital Employed

16 17

12300

11287

10486

9853

9753

Return on net worth

13.90%

14.99%

12.11%

15.53%

18.15%

Return on Capital Employed

15.11%

15.86%

14.61%

14.98%

17.47%

18

Debt Equity ratio (Times)

19

Interest cover (Times)

20

Book Value Per Share (Rs.)

21

Share Capital

1.40

1.66

1.86

1.84

2.16

2.63

2.30

2.03

2.28

2.05

51.75

59.59

52.90

48.14

42.32

729

729

729

729

1050

*0n weighted average basis No. of Shareholders: 19,832

NET WORTH

1999-2000 Actual

NET PROFIT

2000-2001 Actual

1999-2000 Actual

2000-2001 Actual

Year

www.reportjunction.com

SANSCO SERVICES - Annual Reports Library Services - www.sansco.net

JNDIALTD

Management Discussion and Analysis Economic Scenario

Business Strategy

Economic reforms being pursued by the Indian Government have played a critical role in the performance of the economy in the last decade. The average growth rate in the last six years ended fiscal 1999-00 was about 6.5%, which is higher than the average growth rate of 5.6% achieved in the 1980s.

The steady integration of the Indian economy with the global markets has. accelerated the need for better Supply Chain Management and Logistics management. Logistics ensures that the right product reaches the right place at the right time and in the right quantity and quality. The outsourcing of Logistics to third party logistics (3 PL) providers helps companies to concentrate on their core competencies of manufacturing, marketing and customer servicing. We believe that the demand for 3PL services will grow aggressively in the nearfuture.

The overall performance of the industrial sector during fiscal 2000-01 however, was somewhat lower than that in the previous year. Combined with the continued good performance of the service sector, the economy is estimated to grow at 6% in fiscal 2001-02, despite low agricultural growth. The export markets were buoyant, with exports showing a growth of 19.8% in fiscal 2000-01 compared with the 18% target set by the Government. Inflation rate based on point-to-point variation in the Wholesale Price Index, reduced sharply to 4.9% by the end of fiscal 2000-01 from 6.5% a year ago.

Transport Corporation of India Ltd. (TCI) has been the pioneer in the science of freight movement in the Country and has constantly been introducing new service offerings for better customer satisfaction. Today, TCI is the only Company in the Indian market that can offer an integrated logistics solution with our presence in all modes of transport (road, rail, air, sea), company owned warehousing, comouterized systems, on line tracking of cargo and

Indian Road Freight Transport Sector

value added services.

75%

Individuals owning 1 -5 trucks

The Company's strategy for the future is to establish a strong presence in the integrated logistics sector and to attain higher growths in the road and express cargo businesses. With a focus on global quality standards, customer delight and employee effectiveness, the Company is well positioned to achieve the challenges set forth-

10%

Individuals owning 5-20 trucks

Financial / Operational Performance

10%

Corporate/ Government

5%

Single owner and driver

The size of the Indian road freight transport sector is estimated at US$ 10 Billion in which the majority (close to 80%) is unorganized and extremely fragmented. An estimated composition of the industry is as follows:

Poor road infrastructure conditions, bureaucratic delays at state borders and trucks functioning on older technology have resulted in poor productivity and increased transit times, The Government of India's announcement to construct a National express highway network by 2007 is expected to bring about far reaching changes to the road freight sector, The year 2000-01 was one of the severest for the Indian Road Transport Sector. A 25% diesel hike followed by rapid increases in all input costs - spare parts, lubricants, tyres and tubes coupled with lower freight rates put extreme pressure on the already wafer-thin margins. In the last 2 financial years according to the Indian Road Freight Index (IRFP), an analysis of freight rates on the fifty highest cargo traffic density routes in India, inspite of a 65% increase in diesel prices, freight rates went up by only 11% notwithstanding the increase in all other input costs. The two major commercial vehicle manufacturers recorded negative growths last year signaling an excess capacity in the market.

TCI is India's largest road transport Company with a nationwide reach of 1000 Company owned offices and distribution network in 95% of districts. The Company's established position tn the organized transport industry, its increasing focus on high margin value-added services and ability to maintain profitability despite difficult market conditions have helped to improve the bottom line. The Company owns a fleet of more than 600 trucks including specialized vehicles for movement of industrial gases, automobiles, defence and others. TCI handled more than 5,5 million tonnes of cargo and 4 million consignments last year The Company became the first road transport organization to get the ISO 9002 for service qualify in operations. TCI has registered a growth of 14.54% (15.31% in previous year) in total income from Rs.4357 million in FY 2000 to Rs.4991 million in FY 2001. The operating income also grew to Rs.271 million in FY 2001 by a healthy 12.82% over FY 2000. This growth was driven by increase in business volumes in both conventional and express cargo businesses. Net margin is maintained on enhanced turnover and achieved growth in PAT by 16%. Division wise results are as follows:

www.reportjunction.com