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Notes to Accounts of Blue Dart Express Ltd.

Mar 31, 2014

1 General Information

Blue Dart Express Limited (''the Company'') is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. The Company is a public limited company and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2 SEGMENT INFORMATION

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity for its various service offerings and is governed by a similar set of risks and returns.

As at As at March 31, 2014 March 31, 2013 in Rs. Lacs in Rs. Lacs

3 CONTINGENT LIABILITIES [Refer note 2(l)]

Claims against the Company not acknowledged as debt

a) Penalty under Kerala Value Added Tax Act, 2003 909 -

During the year, the Company received an order and penalty notices from the Department of Commercial Taxes, Kerala claiming that Cash on Delivery (COD) sales made are to be considered as local Kerala sales liable to VAT in Kerala and the Company is a selling agent to its customers for such COD sales shipments delivered in Kerala and therefore liable to pay VAT.

The Company has fled a Writ Petition against the order passed by the Department of Commercial Taxes, Kerala which has been admitted by the Honourable Kerala High Court with directions issued to the Revenue Authorities to fle its counter statement and in the interim has directed the Revenue Authorities not to initiate recovery proceedings.

In response to the said penalty notices and based on the legal counsel advise received, the Company has fled its reply submitting that on various grounds it is a settled position of law that the sales are inter-state sales and not a local sale in Kerala, hence provisions of the said Kerala VAT Act are not applicable and in any event the Company cannot be considered as a selling agent of its customers and therefore should not be considered as liable to penalties on transactions carried out by third parties.

b) Stamp Duty - Karnataka Not ascertainable - In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka Stamp Act, 1957, based on the legal counsel advise received, the Company has fled its reply with both those authorities submitting that on various grounds, it does not consider an air waybill to be an ''acknowledgement'' chargeable to stamp duty under the Schedule of the said Act.

5 During the year, the Company has further granted an unsecured interest bearing loan to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (''ACMI'') Agreement of Rs. 1,464 (lacs) [Previous period Rs. 3,956 (lacs)] and received a repayment of Rs. 4,730 (lacs) [Previous period Rs. 1,379 (lacs)]. As at March 31, 2014 the outstanding loan balance is Rs. 19,499 (lacs), [Previous period Rs. 22,765 (lacs)] of which Rs. 3,569 (lacs) [Previous period Rs. 3,266 (lacs)] is receivable within 12 months of balance sheet date. In respect of the aforesaid loans which have been granted in tranches, the principal amount for one tranche is repayable over three years with the first year as moratorium and for the balance tranches is repayable over seven years with the first two years as moratorium. The loan carries an interest computed at an average ''base'' rate of IDBI Bank and ICICI Bank with an interest re-set bi-annually.

6 The Board of Directors of the Company in its meeting held on October 15, 2013 approved a Rs.Scheme of Arrangement'' under Sections 391 and any other applicable provisions of the Companies Act, 1956 and/or Companies Act, 2013 (the "Scheme") for issuance of unsecured, redeemable, non-convertible, fully paid up debentures of Rs. 10/- each (Rupees Ten Only), by way of Bonus, to be allotted out of Surplus in the Statement of profit and Loss of the Company, to the shareholders as viz; 7 Debentures under Series I Debentures, 4 Debentures under Series II Debentures and 3 Debentures under Series III Debentures respectively for every 1 (one) equity share of the Company held by the Shareholders on the Record date to be fixed for this purpose.

BSE Ltd. and National Stock Exchange of India Ltd. have given their no-objection to the Scheme vide their letter dated March 21, 2014. Further, the Hon''ble Bombay High Court has directed that a meeting of the (i) Equity Shareholders; and (ii) unsecured creditors of the Company be convened on Friday, June 13, 2014 at 10:00 am and 1:00 pm respectively at Hotel Hilton, Andheri (East), Mumbai, for the approval of Scheme. The Company is in process of issuing notice of Court Convened Meeting to Equity Shareholders of the Company.

7 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The current accounting year is for twelve months from April 1, 2013 to March 31, 2014, whereas the previous accounting period was for fifteen months from January 1, 2012 to March 31, 2013. Hence, fgures for the current year are not comparable with those of the previous period. Previous period''s fgures have been regrouped/rearranged, wherever necessary to confrm to the current year''s classification.

Signatures to Notes 1 to 37 form an integral part of the financial statements.


Mar 31, 2013

1 General Information

Blue Dart Express Limited (''the Company'') is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. It is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956 ("the Act"). The Company''s shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

2 SEGMENT INFORMATION

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and related party relationship

(i) Enterprises where control exists

Ultimate Holding Company

Holding Company

Wholly Owned Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Associate Company

Deutsche Post AG, Germany

DHL Express (Singapore) Pte. Limited, Singapore

Concorde Air Logistics Limited, India

DHL Express (India) Private Limited, India

DHL Logistics Private Limited, India [Formerly known as DHL

Lemuir Logistics Private Limited]

Skyline Air Logistics Limited, India

Blue Dart Aviation Limited, India

(ii) Key Management Personnel

Managing Director

Director

Director

Director (Up to 30th June, 2011)

Director (From on 30th June, 2011)

Director (Up to 27th September, 2011)

Anil Khanna

Clyde Cooper

Malcolm Monteiro

Roger Crook

Jerry Hsu

Christopher Ong

(B) Related party relationships where transactions have taken place during the period

(i) Enterprises where control exists

Holding Company

Wholly Owned Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Associate Company

DHL Express (Singapore) Pte. Limited

Concorde Air Logistics Limited, India

DHL Express (India) Private Limited, India

DHL Logistics Private Limited, India [Formerly known as DHL

Lemuir Logistics Private Limited]

Blue Dart Aviation Limited, India

4 CONTINGENT LIABILITIES [Refer note 2(l)]

a) Bank Guarantees - 36

Future cash outflows can be determined only when guarantees are invoked by parties to whom given.

b) Claims against the Company not acknowledged as debt Stamp Duty - Karnataka Not ascertainable -

In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka Stamp Act, 1957, based on the legal counsel advise received, the Company has filed its reply with both those authorities submitting that on various grounds, it does not consider an air waybill to be an ''acknowledgement'' chargeable to stamp duty under the Schedule of the said Act.

5 During the period, the Company has further granted an unsecured interest bearing loan of Rs. 2,577 (lacs) [Previous year, Rs. 8,943 (lacs)] to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (''ACMI'') Agreement. As at March 31, 2013 the outstanding loan balance is Rs. 22,765 (lacs), [Previous year, Rs. 20,188 (lacs)]

6 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The financial statements for the year ended December 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the period ended March 31, 2013 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this period''s classification.

7 CHANGE IN FINANCIAL YEAR

The Company has changed its Accounting Year to commence from 1st April of every year end to end on 31st March of the following year, to proactively comply with the Companies Bill 2012. Consequent to this, the current accounting period is for the fifteen months period from January 1, 2012 to March 31, 2013. The figures of the current period are not comparable to those of the previous year as the figures of the current period are for fifteen months from January 1, 2012 to March 31, 2013.

Signatures to Notes 1 to 38 form an integral part of the financial statements.


Dec 31, 2011

1. Employee Benefits

The Company has classified the various employee Benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. state Defined Contribution Plans

i. Employers' Contribution to Employee's state Insurance

ii. Employers' Contribution to Employee's Pension scheme 1995

During the year, the Company has recognised the following amounts in the Profit and Loss Account in schedule 13 under "Contribution to Provident and other funds":

Scheme 1995 33,067 27,968

II Defined Benefit Plans

Gratuity:

Valuations in respect of Gratuity has been carried out by an independent actuary, as at the Balance sheet Date, based on the following assumptions:


Dec 31, 2010

1. Employee Benefits

The Company has classified the various employee benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers Contribution to Employees State Insurance

ii. Employers Contribution to Employees Pension Scheme 1995

During the year, the Company has recognised the following amoi in the Profit and Loss Account in Schedule 13 under "Contribu to provident and other funds":

G) Percentage of each category of Plan Assets to total Fair Value of Plan Assets as at December 31,2010 is 100%

The Plan Assets are administered by Life Insurance Corporation of India ("LIC") as per Investment Pattern stipulated for Pension and Group Schemes Fund by Insurance and Regulatory Development Authority regulations.

H) Expected gratuity contribution for the next year is aggregating ? 19,717 (000) [Previous Year? 16,767 (000)].

I) Other Long-term Employee Benefits

The liabilities for Leave Encashment and Compensated Absences as at year end were ? 69,048 (000) [Previous Year ? 58,988 (000)] and ? 8,084 (000) [Previous Year ? 5,896 (000)] respectively.

As at As at December December 31,2010 31,2009 in Rs (000) in Rs (000)

2. Contingent Liabilities not provided for

(a) Corporate Guarantees given on behalf of

Blue Dart Aviation Limited 1,660,000 1,660,000

(b) Bank Guarantees 24,663 23,652

Note: Future cash outflows can be determined only when guarantees are invoked by parties to whom given.

3. Segment Information

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

4. Related Party Disclosures

(a) (i) Enterprises where control exists:

Deutsche Post AG, Germany - Ultimate Holding Company

DHL Express (Singapore) - Holding Company Pte. Limited, Singapore

Concorde Air Logistics - Wholly Owned

Limited, India Subsidiary Company

DHL Express (India) - Fellow Subsidiary Company

Private Limited, India

DHL Lemuir Logistics - Fellow Subsidiary Company

Private Limited, India

Skyline Air Logistics - Fellow Subsidiary Company

Limited, India

Blue Dart Aviation - Associate Company

Limited, India

(ii) Key Management Personnel:

Anil Khanna - Managing Director

(b) Related party relationships where transactions have taken place during the year:

(i) Holdina/Subsidiarv/Fellow Subsidiaries/Associate Company

DHL Express (Singapore) - Holding Company Pte. Limited, Singapore

Concorde Air Logistics - Wholly Owned

Limited, India Subsidiary Company

DHL Express (India) - Fellow Subsidiary Company

Private Limited, India

DHL Lemuir Logistics - Fellow Subsidiary Company

Private Limited, India

Blue Dart Aviation - Associate Company

Limited, India

(ii) Key Management Personnel

Anil Khanna - Managing Director

5. The Provision for taxation for the year has been computed on the basis of the results for the year ended December 31,2010, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31,2011 relevant to the assessment year 2011-2012.

6. Information with regard to other matters specified in paragraphs 4C, 4D (a) and 4D(c) of Part II of Schedule VI of the Companies Act, 1956 is either Nil or not applicable to the Company for the year ended December 31,2010.

7. During the year, the Company has granted an unsecured loan of ? 1,124,458 (000) (on conversion of capital advances disclosed under loans and Advances) to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (ACMI) Agreement.

8. Previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.


Dec 31, 2009

1. Employee Benefits

The Company has classified the various employee benefits provided to employees as under:-

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers Contribution to Employees State Insurance

ii. Employers Contribution to Employees Pension Scheme 1995

During the year, the Company has recognised the following amounts in the Profit and Loss Account in Schedule 13 under "Contribution to Provident and Other Funds"-

2. Segment Information

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

3. Related Party Disclosures

(a) Enterprises where control exists:

Deutsche Post AG, Germany - Ultimate Holding Company

DHL Express (Singapore) - Holding Company Pte. Limited

Concorde Air Logistics Limited - Wholly owned

Subsidiary Company

DHL Express India - Fellow Subsidiary Company

Private Limited

DHL Danzas Private Limited - Fellow Subsidiary Company

Skyline Air Logistics Limited - Fellow Subsidiary Company

Blue Dart Aviation Limited - Associate Company

(bj Related party relationships where transactions have taken place during the year:

(i) Holding/Subsidiarv/Fellow Subsidiaries/Associate Company

DHL Express (Singapore) - Holding Company Pte. Limited

Concorde Air Logistics Limited - Wholly owned

Subsidiary Company

DHL Express India - Fellow Subsidiary Company Private Limited

DHL Danzas Private Limited - Fellow Subsidiary Company

Blue Dart Aviation Limited - Associate Company (ii) Key Management Personnel

Anil Khanna Managing Director

Malcolm Monteiro Director

Clyde C. Cooper Director

Christopher Ong Director

(c) Transactions with related parties during the year:

(i) With Holding/Subsidiary/Fellow Subsidiaries/Associate Company

4. The provision for taxation for the year has been computed on the basis of the results for the year ended December 31,2009, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31,2010 relevant to the assessment year 2010-2011.

5. Previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.



 
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