Mar 31, 2018
The Directors have pleasure in presenting their report for the year ended 31st March 2018.
A. Consolidated Financial Results
(Rs. In Lakhs)
Sl. No |
Particulars |
2017-18 |
2016-17 |
1 |
Income from Operations and Other Income |
40,925.73 |
40,567.53 |
2 |
Profit before Finance Cost, Depreciation and taxes |
9,812.62 |
10,336.40 |
3 |
Finance cost |
1,076.46 |
531.22 |
4 |
Depreciation & Amortisation |
3,041.85 |
2,650.80 |
5 |
Profit before Exceptional items & taxation |
5,694.31 |
7,154.38 |
6 |
Share of profit from associates / Joint Venture using Equity method |
4,016.21 |
1,761.33 |
7 |
Exceptional item |
- |
- |
8 |
Provision for taxes |
1,394.46 |
1,503.80 |
9 |
Profit for the year |
8,316.06 |
7,411.91 |
10 |
Other Comprehensive Income |
25.84 |
2.69 |
11 |
Total Comprehensive Income for the year |
8,341.90 |
7,414.60 |
B. Dividend
The Company has declared two Interim dividends totaling Rs. 7 per equity share amounting to Rs. 7,610.96 Lakhs for the financial year 2017-18. The Company does not recommend Final Dividend for the financial year 2017-18.
C. Directors
Mrs. Mamta Gupta, who retires by rotation, seeks re-appointment as Director, at the forthcoming Annual General Meeting.
D. Corporate Governance
As a listed Company, necessary measures are taken to comply with the listing agreements with the Stock Exchanges. The various policies related to Prevention of insider trading, Code of Conduct, Determining material events for disclosure, Document preservation & archival of documents and other Corporate policies can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor.asp. A report on corporate governance and certificate of compliance from the Auditors are given as Annexure A of this Report.
E. Listing of Equity Shares
The Companyâs Equity shares are listed on the BSE Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal Street Mumbai - 400 001 and the National Stock Exchange of India Ltd. situated at Exchange Plaza, Bandra Kurla Complex, Mumbai - 400 051. The Company has made up-to-date payment of the listing fees.
F. Auditors
S. R. Batliboi & Co. LLP, Firm Registration No.301003E / E300005, Chartered Accountants, holds office as Statutory Auditors of the Company till the conclusion of the Annual General Meeting 2022, subject to annual ratification at each Annual General Meeting. The Company has received letter from M/s. S. R. Batliboi & Co. LLP, Firm Registration No.301003E / E300005, Chartered Accountants, confirming that their appointment would be within the limits prescribed under Sections 139(2) and 141of the Companies Act, 2013.
G. Statutory Information
Extracts of Annual Return under Section 92(3)
Particulars of the Annual report under Section 92 (3) of the Companies Act, 2013 are given in Form MGT-9, which is annexed to this Report as Annexure B.
Number of meetings of the Board of Directors
During FY 2017-18, 5 meetings of the Board of Directors were held on 11 May 2017, 18 May 2017, 11 August 2017, 9 November 2017 and 15 February 2018.
Directors Responsibility Statement
Pursuant to the requirements of Section 134 (5) of the Companies Act, 2013 with respect to Directorsâ Responsibility Statement, it is hereby confirmed that:-
i. in the preparation of the annual accounts for the year ended 31st March, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures.
ii. such accounting policies as mentioned in Note 1 of the Annual Accounts have been applied consistently and judgments and estimates that are reasonable and prudent made, so as to give a true and fair view of the state of affairs of the Company for the financial year ended 31st March 2018 and of the profit of the Company for that period.
iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv. the annual accounts for the year ended 31st March 2018 have been prepared on a going concern basis.
v. have laid down internal financial controls to be followed by the Company and that such internal finance controls are adequate and are operating effectively.
vi. proper systems to ensure compliance with the provisions of all applicable laws are devised and such systems are adequate and operating effectively.
Declaration by Independent Directors
Independent Directors have given declarations that they meet the criteria of independence as provided under Section 149 (6) of the Companies Act, 2013.
Policy on Directorsâ Appointment & Remuneration
Your Company has an equal mix of Promoter Directors and independent Directors on its Board. As at the year end, the Board has six members consisting of two Executive Directors, one woman Director and three independent Directors.
The details of Nomination and Remuneration Policy, pursuant to Section 178 of the Companies Act, 2013 and applicable regulations of SEBI (LODR) Regulations, 2014 are available on our website and can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor.asp. No changes have been made in the policy during the year and the remuneration paid to the Directors are as per the terms laid out in the Nomination & Remuneration policy of the Company.
Details of Familiarization Program for Independent Directors, criteria for making payments to Non-Executive Directors and Board Diversity Policy can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor.asp
Audit Reports
There are no qualifications, reservations or adverse remarks or disclaimers in the Auditors report or Secretarial Audit report. Secretarial Audit Report from M/s. S. N. Ananthasubramanian & Co., Practising Company Secretaries, is annexed to this Report as Annexure C.
Particulars of loans, guarantees or investments
Rs. Lakhs
Particulars of loans, guarantees and investments under section 186 of Companies Act, 2013 |
As at 31.03.2018 |
|
Investments |
||
80,00,000 |
Equity Shares of Rs. 10 each in Gateway East India Private Limited (100% Subsidiary) |
1,484.00 |
35,83,945 |
Equity Shares of Rs. 100 each in Chandra CFS and Terminal Operators Private Limited (100% Subsidiary) |
4,508.44 |
1,38,30,000 |
Equity Shares of Rs. 10 each in Gateway Distriparks (Kerala) Limited (Subsidiary) including equity component of Zero Coupon Redeemable Preference Shares |
1,460.57 |
20,11,00,000 |
Equity Shares of Rs. 10 each in Gateway Rail Freight Limited (Joint Venture) including equity component of Zero Coupon Redeemable Preference Shares |
20,476.00 |
6,72,54,119 |
Equity Shares of Rs. 10 each in Snowman Logistics Limited (Associate) |
10,416.99 |
1,66,72,199 |
Zero Coupon Redeemable Preference Shares of Rs. 10 each in Gateway Distriparks (Kerala) Limited (Subsidiary) |
2,016.79 |
Guarantees for loans |
||
Guarantee given for loan from HDFC Bank Limited to Chandra CFS and Terminal Operators Private Limited (100% Subsidiary) |
301.52 |
|
Guarantee given for loan from KSIDC to Gateway Distriparks (Kerala) Limited (Subsidiary) |
869.75 |
|
Guarantee given for Credit facility from HDFC Bank to Gateway East India Private Limited (Subsidiary) |
1,100.00 |
|
Guarantee given for loan from HDFC Bank Limited to Gateway Rail Freight Limited (Joint Venture) |
18,954.24 |
Particulars of contracts or arrangements with related parties
Particulars of contracts or arrangements with related parties referred to in Section 188 (1) of the Companies Act, 2013 are given in Form AOC-2, which is annexed to this Report as Annexure D. Details of policy for determining material subsidiaries and the policy for dealing with related party transactions can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor.asp
Remuneration from Subsidiary company
During the year, Mr. Prem Kishan Dass Gupta, Chairman and Managing Director received Commission / sitting fees from subsidiary company: Gateway East India Private Limited Rs. 0.80 Lakhs (FY 2016-17 Rs. 0.80 Lakhs). Mr. Ishaan Gupta, Joint Managing Director received Commission / sitting fees from subsidiary company: Gateway East India Private Limited Rs. 0.80 Lakhs (FY 2016-17 Rs. 0.80 Lakhs).
During the year, Gateway Rail Freight Limited paid Commission / sitting fees to Mr. Prem Kishan Dass Gupta, Chairman and Managing Director Rs. 229 Lakhs (FY 2016-17 Rs. 154 Lakhs) and to Mr. Ishaan Gupta, Joint Managing Director Rs. 18 Lakhs (FY 2016-17 Rs. 12 Lakhs).
Deposits
The Company has not accepted any deposits from public and as such no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet.
Disclosure under Section 134 (3) (m)
Conservation of Energy
The Company continues to give highest priority for conservation of energy by using a mix of technology changes, process optimization methods and other conventional methods, on an on going basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of in-house technological and technical skills to meet the specific customer requirements. Efforts are also being made to upgrade the existing standards and to keep pace with the advances in technological innovations.
Foreign Exchange Earnings and Outgo
i) Expenditure in foreign currency: Rs. 3.00 Lakhs (including Capital items) (2016-17: Rs. 461.29 Lakhs)
ii) Earnings in foreign currency : Nil
Corporate Social Responsibility (CSR)
Particulars of Corporate Social Responsibility (CSR) activities are given in the Form, which is annexed to this Report as Annexure E.
Annual Evaluation of Board performance
The performance evaluation criteria of the Board, as laid down by the Nomination, Remuneration & ESOP Committee includes growth in Business volumes and profitability, compared to earlier periods, growth over the previous years through inorganic expansion, transparency and fairness in Board Decision making processes. The performance evaluation criteria of Individual Directors and Committees include attendance record and intensity of participation at meetings, Quality of interventions, special contributions and interpersonal relationships with other Directors and management. The exclusive meeting of Independent Directors evaluated the performance of the Board, Committees of Board, nonIndependent Directors & the Chairman as excellent. The Board evaluated the performance of Independent Directors based on their attendance record, contributions, their interventions and interpersonal relationships and the Chairman expressed the Boardâs appreciation of their performance. The Nomination and Remuneration Committee noted that the performance of the individual directors & Committees based on the high attendance record and intense participation at meetings, high quality of interventions, special contributions and excellent Inter-personal relationships with other Directors and management. The performance of the Chairman was based on notable contributions in the achievements of the Company and role in conducting Board meetings and bringing out contributions from all Directors. Prevailing remuneration in similar industry / function / experience are considered for recruiting persons & while granting increases in remuneration, besides the performance of the person. The Committee and the Board approved the remuneration paid to key managerial personnel and other employees.
Vigil Mechanism
The Company has adopted a Whistle Blower Policy, details of which can be accessed by clicking on the web link: http:// www.gateway-distriparks.com/investor.asp . Under this policy employees are encouraged to report financial irregularities, fraud, violation of laws and Companyâs Code of conduct. The policy provides for protection of the whistle blower for disclosures. No individual in the Company has been denied access to the Audit Committee or its Chairman. Audit Committee has periodically reviewed the functioning of Vigil Mechanism. The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women a the Workplace (Prevention, Prohibition & Redressal) Act, 2013. A committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. The Company did not receive any sexual harassment complaints during the year.
Information under Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Information under Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in Annexure F to this report.
Subsidiaries / Associates
Information about subsidiaries / Associate / Joint Venture are given in Form AOC-1, which is annexed as Annexure G to this report.
Risk Management Policy
The Board of Directors has put in place a Risk Management policy for the Company, which includes business risks, market risks, event risks and IT / financial/ interest rate / liquidity, risks and the structure, infrastructure, processes, awareness and risk assessment / minimization procedures. The elements of the risk, which in severe form can threaten Companyâs existence, have been identified by the Board of Directors. The risks have been prioritized based on risk analysis and process to identify emerging risks are in place. The Company has in place measures for Business Continuity, Disaster recovery and Information security. A control assurance program covering internal financial controls (IFC) has been implemented and tested during the year. Details of the Risk Management Policy can be accessed by clicking on the web link: http://www. gateway-distriparks.com/investor.asp
Demat Suspense Account
No. of shareholders |
No. of Shares |
|
No. in Suspense Account at beginning of the year |
12 |
1,237 |
No. of shares transferred from Suspense Account during the year to IEPF |
10 |
1,013 |
No. in Suspense Account at end of the year |
2 |
224 |
Voting rights on above shares are frozen till claimed by rightful owner |
Voting rights on above shares are frozen till claimed by rightful owner
Pursuant to Section 129 of the Companies Act, 2013, the annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time.
The annual accounts of the subsidiary companies are kept for inspection by any shareholders in the registered offices of the company and its subsidiary companies. A copy of the accounts of subsidiaries shall be made available to shareholders on request.
For and on behalf of the Board of Directors
Prem Kishan Dass Gupta
Chairman & Managing Director
DIN: 00011670
Place: New Delhi
Date: 16 May 2018
Mar 31, 2017
The Directors have pleasure in presenting their report for the year ended 31st March 2017.
A. Consolidated Financial Results
(Rs. In Lakhs)
Sl. No |
Particulars |
2016-17 |
2015-16 |
1 |
Income from Operations and Other Income |
40,567.53 |
40,480.32 |
2 |
Profit before Finance Cost, Depreciation and taxes |
10,336.41 |
11,878.15 |
3 |
Finance cost |
531.22 |
488.80 |
4 |
Depreciation & Amortization |
2,650.80 |
2,751.87 |
5 |
Profit before Exceptional items & taxation |
7,154.39 |
8,637.48 |
6 |
Share of profit from Associates / Joint Venture using Equity method |
1,761.33 |
3,380.98 |
7 |
Exceptional item |
- |
3,200.32 |
8 |
Provision for taxes |
1,503.80 |
2,965.99 |
9 |
Profit for the year |
7,411.92 |
12,252.79 |
10 |
Other Comprehensive Income |
2.69 |
5.46 |
11 |
Total Comprehensive Income for the year |
7,414.61 |
12,258.25 |
B. Dividend
The Company has declared two Interim dividends totaling Rs. 7 per equity share amounting to Rs. 7,610.96 Lakhs for the financial year 2016-17. The Dividend Distribution Tax on the Interim Dividends amounts to Rs. 1,549.41 Lakhs. The Company does not recommend Final Dividend for the financial year 2016-17.
C. Management Discussion & Analysis:
a) Industry structure and developments
Containerized cargo represents quarter of India''s Export Import Trade, compared to the global average of around 70%. Containerized traffic in Indian ports increased by 3% to 8.4 Lakhs TEUs in FY 2016-17.
JNPT accounted for around 53% of India''s total containerized traffic by handling around 4.5 Lakhs TEUs in 2016-17. The country''s second biggest container port at Chennai handled 1.5 Lakhs TEUs. The volumes at other significant container ports at Visakhapatnam grew by 25% to 0.37 Lakhs TEUs and Cochin grew by 17% to 0.49 Lakhs TEUs.
b) Opportunities and threats
The company foresees opportunities for expansion and increase in profitability in the growing containerization in both Export-Import and domestic trade, increase in private sector participation in ports and movement of containers by rail, liberalization of Government policies and increase in the country''s foreign trade. During the past few years, the Company has taken several initiatives for growth and expansion. The company operates Container Freight Stations at JNPT-Navi Mumbai, Chennai, Krishnapatnam, Visakhapatnam and Kochi. The Company''s green field project at Krishanapatnam has commenced its operations in March 2017. The Company continues to prune costs and augment its equipment for handling and transporting containers, which are operated by contractors.
The Company''s rail vertical, Gateway Rail Freight Limited (GRFL) has expanded its business relating to operating container trains on the Indian railways network. GRFL has put in place a fleet of railway rakes / trailers and ICDs to provide end-to-end solution to customers across the country. The Company''s cold chain logistics arm, Snowman Logistics Ltd. which had its IPO during FY 2014-15 and has expanded its capacity to become a premier player in this emerging business. Competition from existing and new entrants and managing the geographical / capacity expansion present the company with new challenges.
c) Segment-wise / Product-wise performance
The Company''s entire business is from CFS. There are no other primary / secondary segments in the Company''s business.
d) Outlook
Over the medium term, growth in port volumes, Direct port delivery movement of containers & resulting increased throughput at our CFSs, increase in volume of rail movement of containers, and growth in the cold chain logistics business are expected to have positive impact on the Company''s long term business and profitability. Containerized EXIM trade is expected to show consistent performance at major Indian ports over the next few years.
e) Risks and concerns
Increase in fuel costs could result in increase in the Company''s major costs of transport and handling of containers. Increase in container traffic vis-a-vis creation of infrastructure at the ports could lead to congestion at ports which would result in decline / delay in the throughput handled by the Company. The revenues of the Company are concentrated on the container volumes handled by major shipping lines and consolidators, who use its CFSs at various locations.
f) Internal Control systems and adequacy
The Company makes use of IT enabled solutions in its operations, accounting and for communication within its facilities and with customers and vendors. Pursuant to Companies (Accounts) Rules, 2014, a control assurance program including internal financial controls (IFC) has been implemented and tested during the year. The control framework had integrated components including control environment, risk assessment, control activity, information and communication and monitoring. The controls were documented, assessed, tested and found satisfactory. The evaluation was carried out under guidance of Dy. CEO & Chief Finance Officer. The Company''s accounts and operations are subject to internal audit and review by the Audit Committee of the Board of Directors.
g) Financial / Operational Performance Operations:
Total income of the company (stand alone) from operations & other income during 2016-17 was Rs. 34,813.65 Lakhs (2015-16: Rs. 36,610.39 Lakhs). The Profit before tax and exceptional income for 2016-17 was Rs. 6,672.23 Lakhs (2015-16: Rs. 8,919.75 Lakhs). The Total comprehensive income for 2016-17 was Rs. 5,174.78 Lakhs (2015-16: Rs. 11,682.12 Lakhs). The retained earnings as on 31 March 2017 was Rs. 25,896.66 Lakhs (2015-16: Rs. 27,991.40 Lakhs)
Together with its subsidiary companies in the CFS business at Chennai, Visakhapatnam and Kochi, the revenue from CFS operations for FY 2016-17 was Rs.39,340 Lakhs (2015-16: Rs.38,791 Lakhs) and Profit after Tax for FY 2016-17 was Rs. 5,580 Lakhs (2015-16: Rs. 6,404 Lakhs)
Finance:
The Company has outstanding Term loans of Rs. 8,029.71 Lakhs and loans for transport / handling equipments Rs.1,266.44 Lakhs with HDFC Bank Limited as on March 31, 2017. The Company has been sanctioned cash credit / overdraft facilities / Buyers credit / Bank Guarantee of Rs. 10,500 Lakhs by HDFC Bank Limited. The Company has given guarantees in respect of outstanding funded / non-funded borrowing facilities of Rs. 24,517.75 Lakhs of Joint venture Gateway Rail Freight Limited, Rs. 1,100 Lakhs of subsidiary Company Gateway East India Private Limited, Rs.128.24 Lakhs of subsidiary company Chandra CFS and Terminal Operators Private Limited and Rs. 1,125 Lakhs of subsidiary company Gateway Distriparks (Kerala) Ltd. as on 31st March, 2017. The income from interest on fixed deposits with banks and investments was Rs. 145.05 Lakhs in the current year (2015-16: Rs. 600.63 Lakhs).
h) Human Resources
The Company continued to have cordial and harmonious relations with its employees. Human relations policies were reviewed and upgraded in line with the Company''s plans for geographical expansion. Initiatives on training and development of human resources were undertaken. The Company''s staff strength on March 31, 2017 was 231 employees (March 31, 2016: 229 employees).
i) Cautionary statement
Statements made in this report, particularly those which relate to Management Discussion and Analysis, describing the Company''s objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might vary materially from those either expressed or implied.
D. Directors
Mrs. Mamta Gupta, who retires by rotation, seeks reappointment as Director, at the forthcoming Annual General Meeting.
During the year, Mr. Ishaan Gupta, was appointed as Joint Managing Director, to hold office for a term of five years from 8 February 2017, subject to the approval of the Shareholders at the forthcoming Annual General Meeting.
Mr. Prem Kishan Dass Gupta''s term as the Managing Director of the Company will expire on 19 July 2017. The Board of Directors have unanimously approved the re-appointment of Mr. Prem Kishan Dass Gupta, as the Managing Director for another term of 5 years from 20 July 2017, subject to the approval of the shareholders at the forthcoming Annual General Meeting.
E. Corporate Governance
As a listed Company, necessary measures are taken to comply with the listing agreements with the Stock Exchanges. The various policies related to Prevention of insider trading, Code of Conduct, Determining material events for disclosure, Document preservation & archival of documents and other Corporate policies can be accessed by clicking on the web link: http://www.gateway-distriparks. com/investor.asp. A report on corporate governance and certificate of compliance from the Auditors are given as Annexure A of this Report.
F. Listing of Equity Shares
The Company''s Equity shares are listed on the Bombay Stock Exchange Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai - 400 001 and the National Stock Exchange of India Ltd. situated at Exchange Plaza, Bandra Kurla Complex, Mumbai - 400 051. The Company has made up-to-date payment of the listing fees.
G. Auditors
M/s. Price Waterhouse, Firm Registration No. FRN 301112E, Chartered Accountants, Mumbai, holds office as Statutory Auditors of the Company till the conclusion of the forthcoming Annual General Meeting 2017. Their comments on the accounts and notes to the accounts are self-explanatory.
Subject to the approval of the shareholders, the Board of Directors, at their meeting held on 18 May 2017, have appointed S. R. Batliboi & Co. LLP, Firm Registration No.301003E / E300005, Chartered Accountants, as the Statutory Auditors. The Company has received a letter from M/s. S. R. Batliboi & Co. LLP, Firm Registration No.301003E / E300005, Chartered Accountants, confirming that their appointment would be within the limits prescribed under Sections 139(2) and 141 of the Companies Act, 2013.
H. Statutory Information
Extracts of Annual Return under Section 92(3)
Particulars of the Annual report under Section 92 (3) of the Companies Act, 2013 are given in Form MGT-9, which is annexed to this Report as Annexure B.
Number of meetings of the Board of Directors
During FY 2016-17, 4 meetings of the Board of Directors were held on 27 April 2016, 5 August 2016, 10 November
2016 and 8 February 2017.
Directors Responsibility Statement
Pursuant to the requirements of Section 134 (5) of the Companies Act, 2013 with respect to Directors'' Responsibility Statement, it is hereby confirmed that:-
i. in the preparation of the annual accounts for the year ended 31st March, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures.
ii. such accounting policies as mentioned in Note 1 of the Annual Accounts have been applied consistently and judgments and estimates that are reasonable and prudent made, so as to give a true and fair view of the state of affairs of the Company for the financial year ended 31st March 2017 and of the profit of the Company for that period.
iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv. the annual accounts for the year ended 31st March 2017 have been prepared on a going concern basis.
v. have laid down internal financial controls to be followed by the Company and that such internal finance controls are adequate and are operating effectively.
vi. proper systems to ensure compliance with the provisions of all applicable laws are devised and such systems are adequate and operating effectively.
Declaration by Independent Directors
Independent Directors have given declarations that they meet the criteria of independence as provided under Section 149 (6) of the Companies Act, 2013.
Policy on Directors'' Appointment & Remuneration
Your Company has an equal mix of Promoter Directors and independent Directors on its Board. As at the year end, the Board consists of six members, two Executive Directors, one woman Director and three Independent Directors.
The details of Nomination and Remuneration Policy, pursuant to Section 178 of the Companies Act, 2013 and applicable regulations of SEBI (LODR) Regulations, 2014 are available on our website and can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor. asp. No changes have been made in the policy during the year and the remuneration paid to the Directors are as per the terms laid out in the Nomination & Remuneration policy of the Company.
Details of Familiarization Programme for Independent Directors, criteria for making payments to Non-Executive
Directors and Board Diversity Policy can be accessed by clicking on the web link: http://www.gateway-distriparks. com/investor.asp
Audit Reports
There are no qualifications, reservations or adverse remarks or disclaimers in the Auditors report or Secretarial Audit report. Secretarial Audit Report from M/s. S. N. Ananthasubramanian & Co., Practising Company Secretaries, is annexed to this Report as Annexure C.
Particulars of loans, guarantees or investments
Rs. Lakhs
Particulars of loans, guarantees and investments under section 186 of Companies Act, 2013 |
As at 31 March 2017 |
|
Investments |
||
80,00,000 |
Equity Shares of Rs. 10 each in Gateway East India Private Limited (100% Subsidiary) |
1,484.00 |
34,83,945 |
Equity Shares of Rs. 100 each in Chandra CFS and Terminal Operators Private Limited (100% Subsidiary) |
4,408.44 |
1,38,30,000 |
Equity Shares of Rs. 10 each in Gateway Distriparks (Kerala) Limited (Subsidiary) including equity component of Zero Coupon Redeemable Preference Shares |
1,460.57 |
19,81,00,000 |
Equity Shares of Rs. 10 each in Gateway Rail Freight Limited (Joint Venture) including equity component of Zero Coupon Redeemable Preference Shares |
20,759.42 |
6,72,54,119 |
Equity Shares of Rs. 10 each in Snowman Logistics Limited (Associate) |
10,416.99 |
1,66,72,199 |
Zero Coupon Redeemable Preference Shares of Rs. 10 each in Gateway Distriparks (Kerala) Limited (Subsidiary) |
1,893.84 |
11,50,00,000 |
Zero Coupon Redeemable Preference Shares of Rs. 10 each in Gateway Rail Freight Limited (Joint Venture) |
15,768.72 |
Guarantees for loans |
||
Guarantee given for loan from HDFC Bank Limited to Chandra CFS and Terminal Operators Private Limited (100% Subsidiary) |
128.24 |
|
Guarantee given for loan from KSIDC to Gateway Distriparks (Kerala) Limited (Subsidiary) |
1,125.00 |
|
Guarantee given for Credit facility from HDFC Bank to Gateway East India Private Limited (Subsidiary) |
1,100.00 |
|
Guarantee given for loan from HDFC Bank Limited to Gateway Rail Freight Limited (Joint Venture) |
24,517.75 |
Particulars of contracts or arrangements with related parties
Particulars of contracts or arrangements with related parties referred to in Section 188 (1) of the Companies Act, 2013 are given in Form AOC-2, which is annexed to this Report as Annexure D. Details of policy for determining material subsidiaries and the policy for dealing with related party transactions can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor.asp
Remuneration from Subsidiary company
During the year, Mr. Prem Kishan Dass Gupta, Chairman and Managing Director received Commission / sitting fees from subsidiary company: Gateway East India Private Limited Rs. 0.80 Lakhs (FY 2015-16 Rs. 0.80 Lakhs). Mr. Ishaan Gupta, Joint Managing Director received Commission / sitting fees from subsidiary company: Gateway East India Private Limited Rs. 0.80 Lakhs (FY 2015-16 Rs. 0.80 Lakhs).
During the year, Gateway Rail Freight Limited (Joint Venture) paid Commission / sitting fees to Mr. Prem Kishan Dass Gupta, Chairman and Managing Director Rs. 154 Lakhs (FY 2015-16 Rs. 230 Lakhs) and to Mr. Ishaan Gupta, Joint Managing Director Rs. 12 Lakhs (FY 2015-16 Rs. 5 Lakhs).
Deposits
The Company has not accepted any deposits from public and as such no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet.
Disclosure under Section 134 (3) (m) Conservation of Energy
The Company continues to give highest priority for conservation of energy by using a mix of technology changes, process optimization methods and other conventional methods, on an ongoing basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of in-house technological and technical skills to meet the specific customer requirements. Efforts are also being made to upgrade the existing standards and to keep pace with the advances in technological innovations.
Foreign Exchange Earnings and Outgo
i) Expenditure in foreign currency:Rs. 461.29 Lakhs (including Capital items) (2015-16: Rs. 21 Lakhs)
ii) Earnings in foreign currency : Nil
Corporate Social Responsibility (CSR)
Particulars of Corporate Social Responsibility (CSR) activities are given in the Form, which is annexed to this Report as Annexure E.
Annual Evaluation of Board performance
The performance evaluation criteria of the Board, as laid down by the Nomination, Remuneration & ESOP Committee includes growth in Business volumes and profitability, compared to earlier periods, growth over the previous years through inorganic expansion, transparency and fairness in Board Decision making processes. The performance evaluation criteria of Individual Directors and Committees include attendance record and intensity of participation at meetings, Quality of interventions, special contributions and inter-personal relationships with other Directors and management. The exclusive meeting of Independent Directors evaluated the performance of the Board, Committees of Board, non-Independent Directors & the Chairman as excellent. The Board evaluated the performance of Independent Directors based on their attendance record, contributions, their interventions and interpersonal relationships and the Chairman expressed the Board''s appreciation of their performance. The Nomination and Remuneration Committee noted that the performance of the individual directors & Committees based on the high attendance record and intense participation at meetings, high quality of interventions, special contributions and excellent Inter-personal relationships with other Directors and management. The performance of the Chairman was based on notable contributions in the achievements of the Company and role in conducting Board meetings and bringing out contributions from all Directors. Prevailing remuneration in similar industry / function / experience are considered for recruiting persons & while granting increases in remuneration, besides the performance of the person. The Committee and the Board approved the remuneration paid to key managerial personnel and other employees.
Vigil Mechanism
The Company has adopted a Whistle Blower Policy, details of which can be accessed by clicking on the web link: http:// www.gateway-distriparks.com/investor.asp. Under this policy employees are encouraged to report financial irregularities, fraud, violation of laws and Company''s Code of conduct. The policy provides for protection of the whistle blower for disclosures. No individual in the Company has been denied access to the Audit Committee or its Chairman. Audit Committee has periodically reviewed the functioning of Vigil Mechanism.
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. A committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. The Company did not receive any sexual harassment complaints during the year.
Information under Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Information under Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in Annexure F to this report.
Business Responsibility Report
The Business Responsibility Report is annexed as Annexure G to this report.
Subsidiaries / Associates
Information about subsidiaries / Associate / Joint Venture are given in Form AOC-1, which is annexed as Annexure H to this report.
Risk Management Policy
The Board of Directors has put in place a Risk Management policy for the Company, which includes business risks, market risks, event risks and IT / financial/ interest rate / liquidity, risks and the structure, infrastructure, processes, awareness and risk assessment / minimization procedures. The elements of the risk, which in severe form can threaten Company''s existence, have been identified by the Board of Directors. The risks have been prioritized based on risk analysis and process to identify emerging risks are in place. The Company has in place measures for Business Continuity, Disaster recovery and Information security. A control assurance program covering internal financial controls (IFC) has been implemented and tested during the year. Details of the Risk Management Policy can be accessed by clicking on the web link: http://www.gateway-distriparks.com/investor. asp
Demat Suspense Account
No. of shareholders |
No. of Shares |
|
No. in Suspense Account at beginning of the year |
12 |
1,237 |
No. of shareholders who approached for transfer from Suspense Account during the year |
||
No. of shares transferred from Suspense Account during the year |
- |
- |
No. in Suspense Account at end of the year |
12 |
1,237 |
Voting rights on above shares are frozen till claimed by rightful owner |
Pursuant to Section 129 of the Companies Act, 2013, the annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time.
The annual accounts of the subsidiary companies are kept for inspection by any shareholders in the registered office of the company and its subsidiary companies. A copy of the accounts of subsidiaries shall be made available to shareholders on request.
For and on behalf of the Board of Directors
Prem Kishan Dass Gupta
Chairman & Managing Director
DIN: 00011670
Place: New Delhi
Date: 18 May 2017
Mar 31, 2016
The Directors have pleasure in presenting their report for the year
ended 31st March 2016.
A. Consolidated Financial Results (Rs. In millions)
SI.
No Particulars 2015-16 2014-15
1 Income from Operations and Other
Income 10,705.36 11,241.31
2 Profit before Finance Cost,
Depreciation and taxes 2,683.32 3,395.21
3 Finance cost 184.21 240.05
4 Depreciation & Amortisation 804.90 889.26
5 Profit before Exceptional items &
taxation 1,694.21 2,265.90
6 Provision for taxes 670.64 440.52
7 Minority Interest 10.20 36.81
8 Add: Share of Profit of Associates 82.96 89.13
9 Profit after tax and minority interest 1,096.33 1,877.70
10 Surplus brought forward from
previous year 4,077.33 3,119.77
11 Dividend 761.10 761.10
12 Tax on Dividend 154.94 139.13
13 Book value of Fixed Assets with
expired useful life as on April 1,
2014 - 19.91
(net of Minority Interest)
14 Transfer to General Reserve - -
15 Surplus carried to Balance Sheet 4,257.62 4,077.33
B. Dividend
The Company has declared two Interim dividends totaling Rs.7 per equity
share amounting to Rs.761.10 million for the financial year 2015-16.
The Dividend Distribution Tax on the Interim Dividends amounts to
Rs.154.94 million. The Company does not recommend Final Dividend for
the financial year 2015-16.
C. Management Discussion & Analysis
a) Industry structure and developments
Containerized cargo represents quarter of India''s Export Import Trade,
compared to the global average of around 70%. Containerized traffic in
Indian ports increased by 3% to 8.2 million TEUs in FY 2015-16.
JNPT accounted for around 55% of India''s total containerized traffic by
handling around 4.49 million TEUs in 2015-16. The country''s second
biggest container port at Chennai handled 1.56 million TEUs. The
volumes at other significant container ports at Visakhapatnam grew by
18% to 0.29 million TEUs and Cochin grew by 15% to 0.42 million TEUs.
b) Opportunities and threats
The company foresees opportunities for expansion and increase in
profitability in the growing containerization in both Export-Import and
domestic trade, increase in private sector participation in ports and
movement of containers by rail, liberalization of Government policies
and increase in the country''s foreign trade. During the past few years,
the Company has taken several initiatives for growth and expansion. The
company operates Container Freight Stations at JNPT-Navi Mumbai,
Chennai, Visakhapatnam and Cochin. The Company is in the process of
setting up a Logistics Park at Nellore to service the upcoming port at
Krishnapatnam. The Company continues to prune costs and augment its
equipment for handling and transporting containers, which are operated
by contractors.
The Company''s rail subsidiary, Gateway Rail Freight Limited (GRFL) has
expanded its business relating to operating container trains on the
Indian railways network. GRFL has put in place a fleet of railway rakes
/ trailers and ICDs to provide end-to-end solution to customers across
the country. The Company''s cold chain logistics arm, Snowman Logistics
Ltd. which had its IPO during FY 2014-15 and has expanded its capacity
to become a premier player in this emerging business. Competition from
existing and new entrants and managing the geographical / capacity
expansion present the company with new challenges.
c) Segment-wise / Product-wise performance
The Company''s entire business is from CFS. There are no other primary /
secondary segments in the Company''s business.
d) Outlook
Over the medium term, growth in port volumes & resulting increased
throughput at our CFSs, increase in volume of rail movement of
containers and growth in the cold chain logistics business are expected
to have positive impact on the Company''s long term business and
profitability. Containerized EXIM trade is expected to show consistent
performance at major Indian ports over the next few years.
e) Risks and concerns
Increase in fuel costs could result in increase in the Company''s major
costs of transport and handling of containers. Increase in container
traffic vis-a-vis creation of infrastructure at the ports could lead to
congestion at ports which would result in decline / delay in the
throughput handled by the Company. The revenues of the Company are
concentrated on the container volumes handled by major shipping lines
and consolidators, who use its CFSs at various locations.
f) Internal Control systems and adequacy
The Company makes use of IT enabled solutions in its operations,
accounting and for communication within its facilities and with
customers and vendors. Pursuant to Companies (Accounts) Rules, 2014, a
control assurance program including internal financial controls (IFC)
has been implemented and tested during the year. The control framework
had integrated components including control environment, risk
assessment, control activity, information and communication and
monitoring. The controls were documented, assessed, tested and found
satisfactory. The evaluation was carried out under guidance of Dy. CEO
& Chief Finance Officer. The Company''s accounts and operations are
subject to internal audit and review by the Audit Committee of the
Board of Directors.
g) Financial / Operational Performance Operations:
Total income of the company (stand alone) from operations & other
income during 2015-16 was Rs.2,912.11 million (2014-15: Rs.3,077.93
million). The Profit before tax for 2015- 16 was Rs.1,411.84 million
(2014-15: Rs.1,093.83 million). The Profit after tax for 2015-16 was
Rs.1,060.41 million (2014- 15: Rs.806.92 million). After dividend
Rs.761.10 million, tax on dividend distribution Rs.124.40 million (net
of credit for dividend distribution tax Rs.30.54 million on dividend
received from subsidiary company), the surplus carried forward in
Statement of Profit & Loss is Rs.1,977.12 million.
Together with its subsidiary companies in the CFS business at Chennai,
Visakhapatnam and Kochi, the Segment revenues for FY 2015-16 was
Rs.3,204.42 million (2014-15: Rs.3,384.33 million) and Profit after Tax
for FY 2015-16 was Rs.416.77 million (2014-15: Rs.742.95 million)
Finance:
The Company has outstanding loans including loans for transport /
handling equipments Rs.249.57 million with HDFC Bank Limited as on
March 31, 2016. The Company has been sanctioned cash credit / overdraft
facilities / Term loans / Buyers credit of Rs. 922 million and
non-funded facilities to Rs. 750 million by HDFC Bank Limited. The
Company has given guarantees in respect of outstanding funded /
non-funded borrowing facilities of Rs. 1,788.30 million of subsidiary
company Gateway Rail Freight Limited, Rs. 17.78 million of subsidiary
company Chandra CFS and Terminal Operators Private Limited and Rs. 135
million of subsidiary company Gateway Distriparks (Kerala) Ltd. as on
31st March, 2016. The income from interest on fixed deposits with banks
and investments was Rs. 59.64 million in the current year (2014-15: Rs.
32.43 million).
h) Human Resources
The Company continued to have cordial and harmonious relations with its
employees. Human relations policies were reviewed and upgraded in line
with the Company''s plans for geographical expansion. Initiatives on
training and development of human resources were undertaken. The
Company''s staff strength on March 31, 2016 was 229 employees (March 31,
2015: 238 employees).
i) Cautionary statement
Statements made in this report, particularly those which relate to
Management Discussion and Analysis, describing the Company''s
objectives, projections, estimates and expectations may constitute
"forward looking statements" within the meaning of applicable laws and
regulations. Actual results might vary materially from those either
expressed or implied.
D. Directors
During the year, Mrs. Mamta Gupta, has been appointed as Additional
Director on the Board of the Company. Mr. Bhaskar AvuLa Reddy and Mr.
Arun Kumar Gupta have been appointed as Additional Directors
(Independent) on the Board of the Company. During the year, the
Directors Mr. Gopinath PiLLai, Mr. Sat Pal Khattar and Mrs. Chitra
Gouri LaL have resigned from the Board. Mr. Arun AgarwaL, who retires
by rotation, does not desire for reappointment at the ensuing AnnuaL
GeneraL Meeting.
E. Corporate Governance
As a Listed Company, necessary measures are taken to comply with the
Listing agreements with the Stock Exchanges. The various policies
related to Prevention of insider trading, Code of Conduct, Determining
material events for disclosure, document preservation & archival of
documents and other Corporate policies can be accessed by clicking on
the web Link: http://www.gateway-distriparks. com/investor.asp. A
report on corporate governance and certificate of compliance from the
Auditors are given as Annexure A of this Report.
F. Listing of Equity Shares
The Company''s Equity shares are Listed on the Bombay Stock Exchange
Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, DaLaL Street,
Mumbai - 400 001 and the National Stock Exchange of India Ltd. situated
at Exchange PLaza, Bandra KurLa CompLex, Mumbai - 400 051. The Company
has made up-to-date payment of the Listing fees.
G. Auditors
M/s. Price Waterhouse, Firm Registration No. FRN 301112E, Chartered
Accountants, Mumbai, were appointed as Statutory Auditors of the
company to hold office from the conclusion of the annual general
meeting held on 7 august 2015, until the conclusion of the annual
general meeting to be held in the calendar year 2017, subject to
ratification of their appointment at the annual general meeting to be
held in the calendar year 2016. the company has received letter from
m/s. price waterhouse, chartered accountants, confirming that their
appointment would be within the limits prescribed under sections 139(2)
and 141of the companies act, 2013. their comments on the accounts and
notes to the accounts are self-explanatory.
H. Statutory Information
Extracts of Annual Return under Section 92(3)
Particulars of the Annual report under Section 92 (3) of the Companies
Act, 2013 are given in Form MGT-9, which is annexed to this Report as
Annexure B.
Number of meetings of the Board of Directors
During FY 2015-16, 5 meetings of the Board of Directors were held on 29
April 2015, 7 August 2015, 29 October 2015, 6 November 2015 and 3
February 2016.
Directors Responsibility Statement
Pursuant to the requirements of Section 134 (5) of the Companies Act,
1956 with respect to Directors'' Responsibility Statement, it is hereby
confirmed that:-
i. in the preparation of the annual accounts for the year ended 31st
march, 2016, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
ii. such accounting policies as mentioned in note 1 of the annual
accounts have been applied consistently and judgments and estimates
that are reasonable and prudent made, so as to give a true and fair
view of the state of affairs of the company for the financial year
ended 31st march 2016 and of the profit of the Company for that period.
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
iv. the annual accounts for the year ended 31st March 2016 have been
prepared on a going concern basis.
v. have laid down internal financial controls to be followed by the
Company and that such internal finance controls are adequate and are
operating effectively.
vi. proper systems to ensure compliance with the provisions of all
applicable laws are devised and such systems are adequate and operating
effectively.
Declaration by Independent Directors
Independent Directors have given declarations that they meet the
criteria of independence as provided under Section 149 (6) of the
Companies Act, 2013.
Policy on Directors'' Appointment & Remuneration
Details of Nomination and Remuneration Policy, pursuant to Section 178
(4) of the Companies Act, 2013 and applicable regulations of SEBI
(LODR) Regulations, 2014 are annexed to this report as Annexure C.
Details of Familiarisation Programme for Independent Directors,
criteria for making payments to Non-Executive Directors and Board
Diversity Policy can be accessed by clicking on the web link:
http://www.gateway-distriparks. com/investor.asp
Audit Reports
There are no qualifications, reservations or adverse remarks or
disclaimers in the Auditors report or Secretarial Audit report.
Secretarial Audit Report from M/s. S. N. Ananthasubramanian & Co.,
Practising Company Secretaries, is annexed to this Report as Annexure
D.
Particulars of loans, guarantees or investments (Rs. In millions)
As at
Particulars of loans, guarantees and investments
under section 186 of Companies Act, 2013 31.03.2016
Investments
8.000.000 Equity Shares of Rs. 10 each in Gateway
East India Private Limited (100% Subsidiary) 148.40
3,323,945 Equity Shares of Rs. 100 each in
Chandra CFS and Terminal Operators Private Limited 424.84
(100% Subsidiary)
13.830.000 Equity Shares of Rs. 10 each in Gateway
Distriparks (Kerala) Limited (Subsidiary) 138.30
198.100.000 Equity Shares of Rs. 10 each in Gateway
Rail Freight Limited (Subsidiary) 1,972.60
67,254,119 Equity Shares of Rs. 10 each in Snowman
Logistics Limited (Associate) 1,041.70
16,672,199 Zero Coupon Redeemable Preference
Shares of Rs. 10 each in Gateway Distriparks (Kerala) 166.72
Limited (Subsidiary)
115.000.000 Zero Coupon Redeemable Preference Shares
of Rs. 10 each in Gateway Rail
Freight Limited (Subsidiary) 1,150.00
Guarantees for loans
Guarantee given for loan from HDFC Bank Limited to
Chandra CFS and Terminal Operators
Private Limited (100% Subsidiary) 17.78
Guarantee given for loan from KSIDC to Gateway
Distriparks (Kerala) Limited (Subsidiary) 135.00
Guarantee given for loan from HDFC Bank Limited
to Gateway Rail Freight Limited (Subsidiary) 1,788.29
Particulars of contracts or arrangements with related parties
Particulars of contracts or arrangements with related parties referred
to in Section 188 (1) of the Companies Act, 2013 are given in Form
AOC-2, which is annexed to this Report as Annexure E. Details of policy
for determining material subsidiaries and the policy for dealing with
related party transactions can be accessed by clicking on the web link:
http://www.gateway-distriparks.com/investor.asp
Remuneration from Subsidiary companies
During the year, Mr. Prem Kishan Dass Gupta, Chairman and Managing
Director received Commission / sitting fees from subsidiary companies:
Gateway Rail Freight Ltd. Rs. 23,000,000 (FY 2014-15 Rs. 100,000) and
Gateway East India Private Limited Rs. 80,000 (FY 2014-15 Rs. 120,000)
Deposits
The Company has not accepted any deposits from public and as such no
amount on account of principal or interest on public deposits was
outstanding as on the date of the balance sheet.
Disclosure under Section 134 (3) (m) Conservation of Energy
The Company continues to give highest priority for conservation of
energy by using a mix of technology changes, process optimization
methods and other conventional methods, on an on going basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of
in-house technological and technical skills to meet the specific
customer requirements. Efforts are also being made to upgrade the
existing standards and to keep pace with the advances in technological
innovations.
Foreign Exchange Earnings and Outgo
i) Expenditure in Rs. 2.10 million
foreign currency: (2014-15: Rs.8.02 million)
(including Capital items)
ii) Earnings in foreign currency: Nil
Corporate Social Responsibility (CSR)
Particulars of Corporate Social Responsibility (CSR) activities are
given in the Form, which is annexed to this Report as Annexure F.
Annual Evaluation of Board performance
The performance evaluation criteria of the Board, as laid down by the
Nomination, Remuneration & ESOP Committee includes growth in Business
volumes and profitability, compared to earlier periods, growth over the
previous years through inorganic expansion, transparency and fairness
in Board Decision making processes. The performance evaluation criteria
of Individual Directors and Committees include attendance record and
intensity of participation at meetings, Quality of interventions,
special contributions and inter-personal relationships with other
Directors and management. The exclusive meeting of Independent
Directors evaluated the performance of the Board, Committees of Board,
non-Independent Directors & the Chairman as excellent. The Board
evaluated the performance of Independent Directors based on their
attendance record, contributions, their interventions and interpersonal
relationships and the Chairman expressed the Board''s appreciation of
their performance. The Nomination and Remuneration Committee noted that
the excellent performance of the individual directors & Committees
based on the high attendance record and intense participation at
meetings, high quality of interventions, special contributions and
excellent Inter-personal relationships with other Directors and
management. The performance of the Chairman was based on notable
contributions in the achievements of the Company and role in conducting
Board meetings and bringing out contributions from all directors.
Prevailing remuneration in similar industry / function / experience are
considered for recruiting persons & while granting increases in
remuneration, besides the performance of the person. The Committee
noted and approved the remuneration paid to key managerial personnel
and other employees.
Vigil Mechanism
The Company has adopted a Whistle Blower Policy, details of which can
be accessed by clicking on the web link:
http://www.gateway-distriparks.com/investor.asp . Under this policy
employees are encouraged to report financial irregularities, fraud,
violation of laws and Company''s Code of conduct. The policy provides
for protection of the whistle blower for disclosures. No individual in
the Company has been denied access to the Audit Committee or its
Chairman. Audit Committee has periodically reviewed the functioning of
Vigil Mechanism. The Company has in place an Anti Sexual Harassment
Policy in line with the requirements of The Sexual Harassment of Women
a the Workplace (Prevention, Prohibition & Redressal) Act, 2013. A
committee has been set up to redress complaints received regarding
sexual harassment. All employees (permanent, contractual, temporary,
trainees) are covered under this policy. The Company did not receive
any sexual harassment complaints during the year.
Information under Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 Information under Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is given in Annexure
G to this report.
Business Responsibility Report
The Business Responsibility Report is annexed as Annexure H to this
report.
Subsidiaries / Associates
Information about subsidiaries / Associates is given in Form AOC-1,
which is annexed as Annexure I to this report.
Risk Management Policy
The Board of Directors has put in place a Risk Management policy for
the Company, which includes business risks, market risks, event risks
and IT / financial/ interest rate / liquidity, risks and the structure,
infrastructure, processes, awareness and risk assessment / minimization
procedures. The elements of the risk, which in severe form can
threaten Company''s existence, have been identified by the Board of
Directors. The risks have been prioritized based on risk analysis and
process to identify emerging risks are in place. The Company has in
place measures for Business Continuity, Disaster recovery and
Information security. A control assurance program covering internal
financial controls (IFC) has been implemented and tested during the
year. Details of the Risk Management Policy can be accessed by clicking
on the web link: http://www.gateway-distriparks.com/investor. asp
Demat Suspense Account
No. of No. of
shareholders Shares
No. in Suspense Account at 12 1,237
beginning of the year
No. of shareholders who - -
approached for transfer from
Suspense Account during the year
No. of shares transferred from - -
Suspense Account during the year
No. in Suspense Account at end 12 1,237
of the year
Voting rights on above shares are frozen till claimed by rightful owner
Pursuant to Section 129 of the Companies Act, 2013, the annual accounts
of the subsidiary companies and the related detailed information shall
be made available to shareholders seeking such information at any point
of time.
The annual accounts of the subsidiary companies are kept for inspection
by any shareholders in the registered offices of the company and its
subsidiary companies. A copy of the accounts of subsidiaries shall be
made available to shareholders on request.
For and on behalf of the Board of Directors
Prem Kishan Dass Gupta
Chairman & Managing Director
Place: New Delhi DIN: 00011670
Date: April 27, 2016
Mar 31, 2015
Dear Members,
Directors have pleasure in presenting their report for the year ended
31st March 2015.
A. Consolidated Financial Results (Rs. In millions)
Sl. Particulars 2014-15 2013-14
No
1 Income from Operations and Other Income 11,241.31 10,298.93
2 Profit before Finance Cost, Depreciation
and taxes 3,395.21 2,742.65
3 Finance cost 240.05 279.00
4 Depreciation & Amortisation 889.26 801.39
5 Profit before Exceptional items & taxation 2,265.90 1,662.26
6 Provision for taxes 440.52 189.72
7 Minority Interest 36.81 114.20
8 Add: Share of Profit of Associates 89.13 -
9 Profit after tax and minority interest 1,877.70 1,358.34
10 Surplus brought forward from previous year 3,119.77 2,687.01
11 Dividend 761.10 760.04
12 Tax on Dividend 139.13 129.17
13 Add: Provisions / Advances written back - 0.73
14 Book value of Fixed Assets with expired
useful life as on April 1, 2014 (net of
Minority Interest) 19.91 -
15 Transfer to General Reserve - 37.10
16 Surplus carried to Balance Sheet 4,077.33 3,119.77
B. Dividend
The Company has declared two Interim dividends totaling Rs. 7 per
equity share amounting to Rs. 761.10 million for the financial year
2014-15. The Dividend Distribution Tax on the Interim Dividends amounts
to Rs. 139.13 million. The Company does not recommend Final Dividend
for the financial year 2014-15.
E. Directors
The Directors record their appreciation for the services of Chairman
Mr. Gopinath Pillai, who resigned as Director on April 29, 2015. The
Board elected the Deputy Chairman and Managing Director Mr. Prem Kishan
Gupta to be the Chairman and Managing Director. During the year,
Independent Directors Mr. K J M Shetty and Mr. Kipa Ram Vij ceased to
be Directors. During the year, Mr. Bhaskar Avula Reddy and Mrs. Chitra
Gouri Lal were appointed as Independent Directors. Mr. Ishaan Gupta,
Director retires by rotation at the ensuing Annual General Meeting of
the Company and being eligible offers himself for reappointment. Your
Directors recommend his re-appointment as Director.
F. Corporate Governance
As a listed Company, necessary measures are taken to comply with the
listing agreements with the Stock Exchanges. A report on corporate
governance and certificate of compliance from the Auditors are given as
Annexure A of this Report.
G. Listing of Equity Shares
The Company''s Equity shares are listed on the Bombay Stock Exchange
Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal Street,
Mumbai - 400 001 and the National Stock Exchange of India Ltd. situated
at Exchange Plaza, Bandra Kurla Complex, Mumbai - 400 051. The Company
has made up-to-date payment of the listing fees.
H. Auditors
M/s. Price Waterhouse, Firm Registration No. FRN 301112E, Chartered
Accountants, Mumbai, Statutory Auditors of the Company retire at the
ensuing Annual General Meeting of the Company and being eligible have
offered themselves for reappointment. The Company has received letter
from M/s. Price Waterhouse, Chartered Accountants, confirming that
their appointment, if made, would be within the limits prescribed under
Sections 139(2) and 141of the Companies Act, 2013. Their comments on
the accounts and notes to the accounts are self-explanatory.
I. Statutory Information
Extracts of Annual Return under Section 92(3)
Particulars of Annual Report under Section 92 (3) of the Companies Act,
2013 are given in the Form MGT-9, which is annexed to this Report as
Annexure B.
Number of meetings of the Board of Directors
During FY 2014-15, 5 meetings of the Board of Directors were held on 1
May 2014, 5 August 2014, 29 September 2014, 31 October 2014 and 29
January 2015.
Directors'' Responsibility Statement
Pursuant to the requirements of Section 134 (5) of the Companies Act,
2013 with respect to Directors'' Responsibility Statement, it is
hereby confirmed that:-
i. in the preparation of the annual accounts for the year ended 31st
March, 2015, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
ii. such accounting policies as mentioned in Note 1 of the Annual
Accounts have been applied consistently and judgments and estimates
that are reasonable and prudent made, so as to give a true and fair
view of the state of affairs of the Company for the financial year
ended 31st March 2015 and of the profit of the Company for that period.
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
iv. the annual accounts for the year ended 31st March 2015 have been
prepared on a going concern basis.
v. the internal financial controls followed by the Company are adequate
and operating effectively.
vi. proper systems to ensure compliance with the provisions of all
applicable laws are devised and such systems are adequate and operating
effectively.
Declaration by Independent Directors
Independent Directors have given declarations that they meet the
criteria of independence as provided under Section 149 (6) of the
Companies Act, 2013.
Policy on Directors'' Appointment & Remuneration
Details of Nomination and Remuneration Policy, pursuant to Section 178
(4) of the Companies Act, 2013 and Clause 49 of the Listing Agreement
are annexed to this report as Annexure C.
Details of Familiarisation Programme for Independent Directors and
criteria for making payments to Non-Executive
Directors can be accessed by clicking on the web link:
http://www.gateway-distriparks.com/investor.asp
Audit Reports
There are no qualifications, reservations or adverse remarks or
disclaimers in the Auditors report or Secretarial
Audit report.
Secretarial Audit Report from M/s. S. N. Ananthasubramanian & Co.,
Practising Company Secretaries, is annexed to this Report as Annexure
D.
Particulars of loans, guarantees or investments
Particulars of loans, guarantees and investments under Rs , Million
section 186 of Companies Act, 2013 As at
31.03.2015
Investments
8.000. 000 Equity Shares of Rs. 10 each in Gateway East
India Private Limited (100% Subsidiary) 148.40
3,183,945 Equity Shares of Rs. 100 each in Chandra CFS
and Terminal Operators Private 410.84
Limited (100% Subsidiary)
13,830,000 Equity Shares of Rs. 10 each in Gateway
Distriparks (Kerala) Limited (Subsidiary) 138.30
1198,100,000 Equity Shares of Rs. 10 each in Gateway
Rail Freight Limited (Subsidiary) : 1,972.60
|67,254,119 Equity Shares of Rs. 10 each in Snowman
Logistics Limited (Associate) 1,041.70
15,772,199 Zero Coupon Redeemable Preference Shares of
Rs. 10 each in Gateway Distriparks 157.72
(Kerala) Limited (Subsidiary)
115.000. 000 Zero Coupon Redeemable Preference Shares
of Rs. 10 each in Gateway Rail 1,150.00
Freight Limited (Subsidiary) |
Guarantees for loans |
Guarantee given for loan from HDFC Bank Limited to
Chandra CFS and Terminal Operators 22.26
Private Limited (100% Subsidiary)
Guarantee given for loan from KSIDC to Gateway
Distriparks (Kerala) Limited (Subsidiary) 157.50
Guarantee given for loan from GE Money Financial
Services Private Limited to Gateway Rail 572.25
Freight Limited (Subsidiary)
Guarantee given for loan from HDFC Bank Limited to
Gateway Rail Freight Limited (Subsidiary) 644.04
Particulars of contracts or arrangements with related parties
Particulars of contracts or arrangements with related parties referred
to in Section 188 (1) of the Companies Act, 2013 are given in Form
AOC-2, which is annexed to this Report as Annexure E. Details of policy
for determining material subsidiaries and the policy for dealing with
related party transactions can be accessed by clicking on the web link:
http://www.gateway-distriparks.com/investor.asp
Disclosure under Section 134 (3) (m)
Conservation of Energy
The Company continues to give the highest priority for conservation of
energy by using a mix of technology changes, process optimization
methods and other conventional methods, on an on going basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of
in-house technological and technical skills to meet the specific
customer requirements. Efforts are also being made to upgrade the
existing standards and to keep pace with the advances in technological
innovations.
Foreign Exchange Earnings and Outgo
i) Expenditure in foreign currency : Rs. 8.02 million (2013-14: Rs.
14.31 million)
ii) Earnings in foreign currency : Nil
Corporate Social Responsibility (CSR)
Particulars of Corporate Social Responsibility (CSR) activities are
given in the Form, which is annexed to this Report as Annexure F.
Annual Evaluation of Board performance
The performance evaluation criteria of the Board, as laid down by the
Nomination, Remuneration & ESOP Committee includes include growth in
Business volumes and profitability, compared to earlier periods, growth
over the previous years through inorganic expansion, transparency and
fairness in Board Decision making processes. The performance evaluation
criteria of Individual Directors and Committees include attendance
record and intensity of participation at meetings, Quality of
interventions, special contributions and inter-personal relationships
with other Directors and management. The exclusive meeting of
Independent Directors evaluated the performance of the Board,
Committees of Board, non-Independent Directors & the Chairman as
excellent. The Board evaluated the performance of Independent Directors
based on their attendance record, contributions, their interventions
and inter- personal relationships and the Chairman expressed the
Board''s appreciation of their performance. The Nomination and
Remuneration Committee noted that the excellent performance of the
individual directors & Committees based on the high attendance record
and intense participation at meetings, high quality of interventions,
special contributions and excellent Inter-personal relationships with
other Directors and management. The performance of the Chairman was
based on notable contributions in the achievements of the Company and
role in conducting Board meetings and bringing out contributions from
all directors. Prevailing remuneration in similar industry / function /
experience are considered for recruiting persons & while granting
increases in remuneration, besides the performance of the person. The
Committee noted and approved the remuneration paid to key managerial
personnel and other employees.
Whistle Blower Policy
Details of the Whistle Blower policy (Vigil Mechanism) are annexed to
this Report as Annexure G and can be accessed by clicking on the web
link: http://www.gateway-distriparks.com/investor.asp
Information under Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014
Information under Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is given in Annexure H to this report.
Subsidiaries / Associates
Information about subsidiaries / Associates is given in Form AOC-1,
which is annexed as Annexure I to this report. Risk Management Policy
The Board of Directors has put in place a Risk Management policy for
the Company, which includes business risks, market risks, event risks
and IT / financial/ interest rate / liquidity, risks and the structure,
infrastructure, processes, awareness and risk assessment / minimization
procedures. The elements of the risk, which in severe form can threaten
Company''s existence, have been identified by the Board of Directors.
Details of the Risk Management Policy are annexed to this Report as
Annexure J.
Voting rights on above shares are frozen till claimed by rightful owner
Pursuant to Section 129 of the Companies Act, 2013, the annual accounts
of the subsidiary companies and the related detailed information shall
be made available to shareholders seeking such information at any point
of time.
The annual accounts of the subsidiary companies are kept for inspection
by any shareholders in the registered offices of the company and its
subsidiary companies. A copy of the accounts of subsidiaries shall be
made available to shareholders on request.
For and on behalf of the Board of Directors
Place: New Delhi Gopinath Pillai
Date: April 29, 2015 Chairman
Mar 31, 2013
The Directors have pleasure in presenting their report for the year
ended 31st March 2013.
A. Consolidated Financial Results
Sl.
No Particulars 2012-13 2012-12
(Rs. In
millions) (Rs. In
millions)
1 Income from Operations and Other Income 9,695.66 8,358.08
2 Profit before Finance Cost,
Depreciation and taxes 2,595.84 2,627.78
3 Finance cost 163.80 135.22
4 Depreciation & Amortisation 698.55 628.09
5 Profit before Exceptional items & taxation 1,733.49 1,864.47
6 Provision for taxes 373.29 508.24
7 Minority Interest 93.34 35.90
8 Profit after tax and minority interest 1,266.86 1,320.33
9 Surplus brought forward from previous year 2,360.16 1,876.62
10 Dividend 759.24 649.42
11 Tax on Dividend 123.17 105.35
12 Transfer to General Reserve 57.60 82.02
13 Surplus carried to Balance Sheet 2,687.01 2,360.16
B. Dividend
The Company has paid two Interim dividends totaling Rs. 7 per equity
share amounting to Rs. 759.24 million for the financial year 2012-13.
The Dividend Distribution Tax borne by the Company on the Interim
Dividends amounts to Rs. 123.17 million. The Company does not recommend
Final Dividend for the financial year 2012-13.
C. Employees Stock Option scheme (ESOP)
Sl.
No. Particulars ESOP-I ESOP-II ESOP-III
(2005-2006) (2006-2007) (2007-2008)
a. Options granted
(no. of Equity shares) 264,798 377,562 306,875
b. Pricing Formula :
20% discount on the
closing market price
prior to the Remuneration
and ESOP Committee -
Rs. per e
Rs.130.92 Rs. 109.25 Rs. 92.92
(after (after
adjustment adjustment
for issue
bonus bonus
shares) shares)
c. Options vested
(net of lapsed options) 33,800 213,422 267,064
d. Options exercised and
total number of shares 33,800 213,422 267,064
arising from exercise of
options
e. Options lapsed 230,998 164,140 39,811
f. Variation of terms
of options
g. Amount realized by
exercise of options Rs. 5.04 Mn Rs. 23.32 Mn Rs. 2481 Mn
i. Total number of options
in force as on 31-3-13
j. Employee-wise details of
options granted
(excluding cancelled options)
i. Senior managerial personnel
a) Mr. R. Kumar, Deputy
Chief Executive Officer
and Chief Finance 40,000 40,000 50,000
Officer cum Company
Secretary
Particulars ESOP-IV ESOP-V
(2009-2010) (2010-2011)
Options granted 345,000 363,000
he date of the meeting of
quity share Rs. 99.92 Rs. 95.72
325,900 143,600
Options exercised and
total number of shares 295,150 134,535
Options lapsed 19,100 19,600
Variation of terms
of options
Amount realized by
exercise of options Rs. 29.49 Mn Rs. 12.88 Mn
Total number of options
in force as on 31-3-13 30,750 208,865
Mr. R. Kumar, Deputy
Chief Executive Officer 50,000 50,000
Sl.
No. Particulars ESOP-I ESOP-II ESOP-III
(2005-2006) (2006-2007) (2007-2008)
b) Mr. Jacob Thomas,
Vice-President 16,000 16,000 20,000
(Operations)
c) Mr. A.K. Bhattacharjee,
Vice-President 20,000
(Operations)
ii. Any other employee
who received a grant in
any one year of option
amounting to 5% or more of
options granted during
that year (excluding
cancelled options)
a) Mr. Kartik Aiyer, 16,000 16,000 20,000
General Manager
(Finance & Accounts)
b) Mr. Subhash Maini, 20 000
Deputy General Manager
(Operations)
c) Mr. Himangsu Roy,
Senior Manager 20,000
(Operations)
iii. Identified employees
who were granted options
during any 1 year
equal to or exceeding 1%
of issued Capital
(excluding outstanding
warrants and conversions)
of the Company at the
time of grant
k. Diluted Earnings
per Share
(EPS) pursuant to issue of
shares on exercise of
options calculated in
Rs.531 per Equity
accordance with Accounting
Standard (AS) 20
''Earnings per share"
I. Difference between
employee compensation
cost based on intrinsic
Employee Compensation
costs would walue &
fair value
Impact on PAT Rs. million
Decrease in PAT by Rs.
Impact on EPS (Rs./ Share)
Basic / Diluted EPS would
reduce to Rs.5.2
m-i Weighted Average
Exercise Rs.96.78 per option fo
Price of options
m-ii Weighted Average Fair
Rs. 27.51 per option fo
Value of options
n. Assumptions used to estimate
fair value using Black Scholes
option pricing mo
(i) Risk free interest
rate 8%
(ii) Expected life Upto
36 months
(iii) Expected volatility
5.61%
(iv) Expected dividend
Rs. 7 per Equity share
(v) Market Price of share at
ESOP-I ESOP-II ESOP-III
the time of grant of option
(2005-2006) (2006-2007) (2007-2008)
E. Directors
Pursuant to the provisions of Section 256 of the Companies Act, 1956,
Mr. Shabbir Hassanbhai, Mr. Sat Pal Khattar and Mr. Arun Agarwal ,
Directors of the Company, retire by rotation at the ensuing Annual
General Meeting of the Company and being eligible, offer themselves for
re-appointment. Your Directors recommend their re-appointment.
F. Responsibility Statement
Pursuant to the requirements of Section 217 (2AA) of the Companies Act,
1956 with respect to Directors'' Responsibility Statement, it is hereby
confirmed that:-
(i) in the preparation of the annual accounts for the year ended 31st
March, 2013, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
(ii) such accounting policies as mentioned in Note 1 of the Annual
Accounts have been applied consistently and judgments and estimates
that are reasonable and prudent made, so as to give a true and fair
view of the state of affairs of the Company for the financial year
ended 31st March 2013 and of the profit of the Company for that period.
(iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
(iv) the annual accounts for the year ended 31st March 2013 have been
prepared on a going concern basis.
G. Corporate Governance
As a listed Company, necessary measures are taken to comply with the
listing agreements with the Stock Exchanges. A report on corporate
governance and certificate of compliance from the Auditors are given as
Annexure A of this Report.
H. Listing of Equity Shares
The Company''s Equity shares are listed on the Bombay Stock Exchange
Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal Street,
Mumbai - 400 001 and the National Stock Exchange of India Ltd.
situated at Exchange Plaza, Bandra Kurla Complex, Mumbai - 400 051. The
Company has made up-to-date payment of the listing fees.
I. Auditors
M/s. Price Waterhouse, Firm Registration No. FRN 301112E, Chartered
Accountants, Mumbai, Statutory Auditors of the Company retire at the
ensuing Annual General Meeting of the Company and being eligible have
offered themselves for reappointment. The Company has received letter
from M/s. Price Waterhouse, Chartered Accountants, confirming that
their appointment, if made, would be within the limits prescribed under
Section 224(1B) of the Companies Act, 1956. Their comments on the
accounts and notes to the accounts are self-explanatory.
J. Statutory Information
Disclosure under Section 217 (1) (e)
Conservation of Energy
The Company continues to give the highest priority for conservation of
energy by using a mix of technology changes, process optimization
methods and other conventional methods, on an on going basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of
in-house technological and technical skills to meet the specific
customer requirements. Efforts are also being made to upgrade the
existing standards and to keep pace with the advances in technological
innovations.
Foreign Exchange Earnings and Outgo
(i) Expenditure in foreign currency: Rs. 63.15 million (2011-12: Rs.
14.93 million) (including Capital items) (ii) Earnings in foreign
currency : Nil
Demat Suspense Account
No. of shareholders No. of share
No. in Suspense Account at beginning of the year 12 1,237
No. of shareholders who approached for transfer from Suspense Account
during the year
No. of shares transferred from Suspense Account during the year
No. in Suspense Account at end of the year 12 1,237
Voting rights on above shares are frozen till claimed by rightful owner
Disclosure under Section 217 (2A)
Information in accordance with the provisions of Section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of employees)
Rules, 1975, as amended regarding employees forms part of this Report.
However, as per the provisions of Section 219 of the Companies Act,
1956, the Report and Accounts are being sent to all shareholders of the
Company, excluding the aforesaid information. Any shareholder,
interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
Pursuant to Section 212 of the Companies Act, 1956, the annual accounts
of the subsidiary companies and the related detailed information shall
be made available to shareholders seeking such information at any point
of time. The annual accounts of the subsidiary companies are kept for
inspection by any shareholders in the registered offices of the company
and its subsidiary companies. A copy of the accounts of subsidiaries
shall be made available to shareholders on request.
For and on behalf of the Board of Directors
Place: Mumbai Gopinath Pillai
Date: May 9, 2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting their report for the year
ended 31st March 2012.
(a) Consolidated Financial Results
Sl. Particulars 2011-12 2010-11
No (Rs. In millions) (Rs. In
millions)
1 Income from Operations and
Other Income 8,358.08 6,119.61
2 Profit before Finance Cost,
Depreciation and taxes 2,627.78 1,730.92
3 Finance cost 135.22 187.26
4 Depreciation & Amortisation 628.09 502.44
5 Profit before Exceptional items
& taxation 1,864.47 1,041.22
6 Provision for taxes 508.24 44.07
7 Minority Interest 35.90 29.63
8 Profit after tax and minority
interest 1,320.33 967.52
9 Surplus brought forward from
previous year 1,876.62 1,749.69
10 Dividend 649.42 648.11
11 Tax on Dividend 105.35 107.64
12 Transfer to General Reserve 82.02 84.84
13 Surplus carried to Balance Sheet 2,360.16 1,876.62
(b) Dividend
The Company has paid two interim dividends totaling Rs. 6/- per equity
share amounting to Rs 649.42 million for the financial year 2011-12.
The Dividend Distribution Tax borne by the Company on the interim
dividends amounts to Rs 105.35 million. The Board does not recommend
final dividend for the financial year 2011-12.
(c) Management Discussion & Analysis (i) Industry structure and
developments
In the past decade, containerized movement of EXIM cargo grew by 14%
per annum. Containerized cargo represents 30% of India's EXIM trade
compared to the global average of over 70%.
JNPT accounted for more than 50% of the total containerized traffic
handled out of India, by handling around 4.32 million TEUs. The
country's second biggest container port at Chennai handled around 1.56
million TEUs.
(ii) Opportunities and threats
Growth of containerization in both EXIM and domestic trade, private
sector participation in ports and movement of containers by rail,
liberalization of Government policies and increase in the country's
foreign trade present the Company with opportunities for expansion and
increase in profitability. During the past few years the Company has
taken several initiatives for growth and expansion. The Company has
taken over Punjab State Container & Warehousing Corporation Limited's
CFS at JNPT under an Operations and Management agreement for a period
of 15 years from February 2007. The CFS has been revitalised and
renovated, adding to the Company's capacity at JNPT which is India's
premier container port. The Company continues to prune costs and
augment its equipment for handling and transporting containers, which
are operated by contractors. The Company's CFS at the fast growing port
of Kochi, in a joint venture with Chakiat Agencies Pvt. Ltd. will be
operational in FY 2012-13. The Company's rail subsidiary, Gateway Rail
Freight Limited (GRFL) has expanded its business relating to operating
container trains on the Indian railways network. GRFL has put in place
a fleet of railway rakes / trailers and ICDs to provide end-to-end
solution to customers across the country. The Company's cold chain
logistics subsidiary Snowman Logistics Ltd. continues to be a premier
player in this emerging business. Competition from existing and new
entrants and managing the geographical/capacity expansion present the
Company with new challenges.
(iii) Segment-wise / Product-wise performance
The Company's entire business is from CFS. There are no other
primary/secondary segments in the Company's business.
(iv) Outlook
Strong economic performance and growth in EXIM trade are expected to
result in an increase in traffic at major Indian ports during the next
few years. The growth in port volumes and resulting increased
throughput at our CFSs, increase in the business of rail movement of
containers and growth in the emerging cold chain logistics business are
expected to have positive impact on the Company's business and
profitability.
(v) Risks and concerns
Increase in fuel costs could result in an increase in the Company's
major costs of transport and handling. Increase in container traffic
vis-ÃÂ -vis creation of capacity at the ports could lead to congestion at
ports which would result in decline/delay in the throughput handled by
the Company. The revenues of the Company are concentrated on the
container volumes handled by major shipping lines and consolidators,
who use its CFSs at various locations.
(vi) Internal Control systems and adequacy
The Company makes use of IT enabled solutions in its operations,
accounting and for communication within its facilities and with
customers and vendors. Financial and Operating guidelines are put in
place to regulate the internal management. The Company's accounts and
operations are subject to internal audit and review by the Audit
Committee of the Board of Directors.
(vii) Financial / Operational performance
Total income of the Company (stand alone) from operations & other
income during 2011-12 was Rs 2,348.13 million (2010-11: Rs 1,915.03
million). The profit before tax for 2011-12 was Rs 1,187.32 million
(2010-11: Rs 857.12 million). The profit after tax for 2011-12 was Rs
820.11 million (2010-11: Rs 848.34 million). After dividend Rs 649.42
million, tax on dividend distribution Rs 105.35 million and transfer of
Rs 82.02 million to General Reserves, the surplus carried forward in
the Statement of Profit & Loss is Rs 1,804.74 million.
Together with its subsidiary companies in the CFS business at Chennai,
Visakhapatnam and Kochi, the total income from operations for FY
2011-12 was Rs 3,100.02 million (2010-11: Rs 2,419.12 million) and
profit after tax for FY 2011-12 was Rs 1,065.24 million (2010-11: Rs
972.84 million).
(viii) Finance
The Company has outstanding loan for financing transport/handling
equipments Rs 124.37 million with HDFC Bank Limited as on March 31,
2012. The Company has been sanctioned cash credit/overdraft
facilities/buyers credit of Rs 250 million and non-funded facilities to
Rs 750 million by HDFC Bank Limited. The Company has given guarantees
in respect of outstanding loans of Rs 909.25 million of subsidiary
Company Gateway Rail Freight Ltd. as on 31st March, 2012. The income
from interest on fixed deposits with banks and investments was Rs 82.54
million in the current year (2010-11: Rs 29.63 million).
(ix) Human Resources
The Company continued to have cordial and harmonious relations with its
employees. Human relations' policies were reviewed and upgraded in line
with the Company's plans for geographical expansion. Initiatives on
training and development of human resources were undertaken. The
Company has staff strength on March 31, 2012 of 159 employees (March
31, 2011: 153 employees).
(x) Cautionary statement
Statements made in this report particularly those which relate to
Management Discussion and Analysis, describing the Company's
objectives, projections, estimates and expectations may constitute
"forward looking statements" within the meaning of applicable laws and
regulations. Actual results might vary materially from those either
expressed or implied.
(e) Directors
Pursuant to the provisions of Section 256 of the Companies Act, 1956,
Mr. Gopinath Pillai, Mr. M.P Pinto and Mr. Saroosh Dinshaw, Directors
of the Company, retire by rotation at the ensuing Annual General
Meeting of the Company and being eligible, offer themselves for
re-appointment. Your Directors recommend their re- appointment.
Mr. Ishaan Gupta, son of Mr. Prem Kishan Gupta, Deputy Chairman &
Managing Director of the Company, was appointed as Additional Director
in the Board meeting held on 26 May 2012, to hold office till the next
Annual General Meeting. Your directors recommend his appointment as a
Director.
The term of office of Mr. Prem Kishan Gupta, Managing Director expired
on 19 July 2012. The Board of Directors at their meeting held on 26 May
2012 reappointed Mr. Prem Kishan Gupta as Managing Director for a term
of 5 years till 19 July 2017. Your Directors recommend reappointment of
Mr. Prem Kishan Gupta as Managing Director in the forthcoming AGM.
(f) Responsibility Statement
Pursuant to the requirements of Section 217 (2AA) of the Companies Act,
1956 with respect to Directors' Responsibility Statement, it is hereby
confirmed that:
(i) In the preparation of the annual accounts for the year ended 31st
March, 2012, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
(ii) Such accounting policies as mentioned in Note 1 of the Annual
Accounts have been applied consistently and judgments and estimates
that are reasonable and prudent, made so as to give a true and fair
view of the state of affairs of the Company for the financial year
ended 31st March 2012 and of the profit of the Company for that period.
(iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
(iv) The annual accounts for the year ended 31st March 2012 have been
prepared on a going concern basis.
(g) Corporate Governance
As a listed Company, necessary measures are taken to comply with the
listing agreements with the Stock Exchanges. A report on corporate
governance and certificate of compliance from the auditors are given as
Annexure A of this Report.
(h) Listing of Equity Shares
The Company's equity shares are listed on the Bombay Stock Exchange
Limited (BSE), Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal
Street, Mumbai - 400 001 and the National Stock Exchange of India
Limited (NSE) situated at Exchange Plaza, Bandra Kurla Complex, Mumbai
à 400 051. The Company has made up-to- date payment of the listing
fees.
(I) Auditors
M/s. Price Waterhouse, Chartered Accountants, Mumbai, Statutory
Auditors of the Company retire at the ensuing Annual General Meeting of
the Company and being eligible have offered themselves for
reappointment. The Company has received letter from M/s. Price
Waterhouse, Chartered Accountants, confirming that their appointment,
if made, would be within the limits prescribed under Section 224(1B) of
the Companies Act, 1956. Their comments on the accounts and notes to
the accounts are self-explanatory.
(j) Statutory Information Disclosure under Section 217 (1) (e)
(i) Conservation of Energy
The Company continues to give the highest priority for conservation of
energy by using a mix of technology changes, process optimization
methods and other conventional methods, on an ongoing basis.
(ii) Technology Absorption
The Company continues to lay emphasis on development and innovation of
in-house technological and technical skills to meet the specific
customer requirements. Efforts are also being made to upgrade the
existing standards and to keep pace with the advances in technological
innovations.
(iii) Foreign Exchange Earnings and Outgo
Expenditure in foreign currency - Rs 14.93 million (2010-11: Rs 71.00
million) including capital items
Earnings in foreign currency - Nil
(k) Disclosure under Section 217 (2A)
Information in accordance with the provisions of Section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of employees)
Rules, 1975, as amended regarding employees forms part of this report.
However, as per the provisions of Section 219 of the Companies Act,
1956, the report and accounts are being sent to all shareholders of the
Company, excluding the aforesaid information. Any shareholder,
interested in obtaining such particulars may write to the Company
Secretary at the registered office of the Company.
Pursuant to Section 212 of the Companies Act, 1956, the annual accounts
of the subsidiary companies and the related detailed information shall
be made available to shareholders seeking such information at any point
of time. The annual accounts of the subsidiary companies are kept for
inspection by any shareholders in the registered offices of the Company
and its subsidiary companies. A copy of the accounts of subsidiaries
shall be made available to shareholders on request.
For and on behalf of the Board of Directors
Place: Mumbai Gopinath Pillai
Date: May 26, 2012 Chairman
Mar 31, 2011
Dear Members,
The Directors have pleasure in presenting their report for the year
ended 31st March 2011.
A. Financial Results
SL 2010 11 2009-10
Particulars
No (Rs. Million) (Rs. Million)
1 Income from Operations and Other 1,915,03 1.669.70
Income
2 Profit before Interest,
Depreciation and 1,013.68 831.63
taxes
3 Interest 14.37 13.43
4 Depreciation1 42.19 149.82
5 Profit before Exceptional
items & taxation 857.12 718.43
6 Provision for taxes 8.78 (53.66)
7 Profit after tax 848.54 772.09
8 Profit brought forward
from previous year 1,815.67 1.560.34
9 Dividend 648.11 577.41
10 Tax on Dividend 107.64 64.14
11 Transfer to General Reserve 84.84 77.21
12 Profit carried to Balance Sheet 1.821.42 1,815.67
B. Dividend
The Company has paid three Interim dividends (including Special Interim
Dividend) totalling Rs. 5 per equity share amounting to Rs. 540.11
million for the financial year 2010-11. Your Directors recommend Final
Dividend of Rs.1 per equity share, amounting to Rs. 108 million for the
financial year 2010-11. The Dividend Distribution Tax borne by the
Company on the Interim and Final Dividends amounts to Rs. 107.64
million.
D. Subsidiaries:
Gateway East India Private Limited (GEIPL)
The Company has 100% equity shareholding in GEIPL, which is engaged in
the business of running a CFS at Visakhapatnam. GEIPL's Income grew by
35% from Rs. 94.76 million to Rs 128.26 million in 2010-11. profit after
tax for the financial year 2010-11 was Rs.11.03 million as against profit
of Rs. 20.86 million for 2009- 10, due to higher taxes.
Gateway Distriparks (South) Private Limited (GDSPL)
The Company has 100% equity shareholding in GDSPL, which is engaged in
the business of running a CFS at Chennai. Income grew by 47% from Rs.
272.94 million to Rs. 401.79 million in 2010 -11. profit after tax for
the financial year 2010-11 was Rs. 113.46 million as against Rs.104.60
million for 2009-10.
Gateway Rail fireight Limited (GRFL)
The Company has 97.27% equity shareholding in GRFL, which is engaged in
the business of operating container trains and rail linked ICDs in
Northern India. Income increased to Rs. 3,226.19 million in 2010-11
from Rs. 2,906.40 million in 2009-10. Loss for the financial year
2010-11 was Rs. 39.91 million as against Rs. 134.73 million in 2009-10.
The loss is after providing for depreciation / amortisation Rs.300.25
million (2009-10: Rs. 254.67 million) on rakes, trailers and railway
registration fees and interest on loans Rs. 174.95 million (2009-10:
Rs. 181.10 million). During the year, Blackstone GPV Capital Partners
(Mauritius) V-H Limited invested Rs. 3 billion by subscription to
Compulsorily Convertible Preference shares which, on conversion, will
entitle Blackstone to acquire between 37.27% and 49.90% of the equity
share capital of GRFL. GRFL has 51% equity shareholding in Container
Gateway Limited, which is yet to commence operations.
Gateway Distriparks (Kerala) Limited (GDKL)
The Company has 60% equity shareholding in GDKL, which is in the
process of setting up a CFS at Kochi. Chakiat Agencies Pvt. Ltd. holds
40% shareholding in this Joint Venture Company. Cochin Port Trust has
allotted 2.58 hectares of land at Vallarpadam on lease for 30 years.
The Company is in the process of constructing a new CFS at Vallarpadam,
where the country's first International Container Transshipment Terminal
has been set up. Loss for the financial year 2010-11 was Rs. 0.23
million as against Rs.1.09 million in 2009-10.
Snowman Logistics Limited (SLL)
The Company has 52.19% equity shareholding in SLL (formerly known as
Snowman Frozen Foods Limited), which operates cold stores and feet of
refrigerated trucks at the various major cities across the country.
SLL has a pan India presence and provides total cold chain logistics
solutions to its customers for products like seafood, dairy products,
ice cream, fruits & vegetables, retail and food services. In March
2010, International Finance Corporation has invested Rs. 248.90 million
in the equity capital of the Company. Mitsubishi Corporation,
Mitsubishi Logistics Corporation and Nichirei Logistics Group Inc. are
other shareholders in SLL.
SLL's income grew by 29% from Rs. 369.02 million in 2009-10 to Rs
475.90 million in 2010-11. profit after tax for 2010-11 was Rs. 64.45
million as against Rs. 41.36 million for 2009-10. The Company is in the
process of expanding its cold store capacities and refrigerated
transport network.
F. Directors
Pursuant to the provisions of Section 256 of the Companies Act, 1956,
Mr. K.J.M. Shetty, Mr. Kirpa Ram Vij and Mr. Arun Agarwal, Directors of
the Company, retire by rotation at the ensuing Annual General Meeting
of the Company and being eligible, offer themselves for re-appointment.
Your Directors recommend their re-appointment.
G. Responsibility Statement
Pursuant to the requirements of Section 217 (2AA) of the Companies Act,
1956 with respect to Directors' Responsibility Statement, it is hereby
confirmed that:- i. in the preparation of the annual accounts for the
year ended 31st March, 2011, the applicable accounting standards have
been followed along with proper explanation relating to material
departures.
ii. such accounting policies as mentioned in Note 1 of Schedule "Q" of
the Annual Accounts have been applied consistently and judgements and
estimates that are reasonable and prudent made, so as to give a true
and fair view of the state of affairs of the Company for the financial
year ended 31st March 2011 and of the profit of the Company for that
period.
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
i v. the annual accounts for the year ended 31st March 2011 have been
prepared on an on-going concern basis.
H. Corporate Governance
As a listed Company, necessary measures are taken to comply with the
listing agreements with the Stock Exchanges. A report on corporate
governance and certificate of compliance from the Auditors is given as
Annexure A of this Report.
I. Listing of Equity Shares
The Company's Equity shares are listed on the Bombay Stock Exchange
Limited, Mumbai situated at Phiroze Jeejeebhoy Tower, Dalal Street,
Mumbai - 400 001 and the National Stock Exchange of India Ltd. situated
at Exchange Plaza, Bandra Kurla Complex, Mumbai à 400 051. The Company
has made up-to-date payment of the listing fees.
J. Auditors
M/s. Price Waterhouse, Chartered Accountants, Mumbai, Statutory
Auditors of the Company retire at the ensuing Annual General Meeting of
the Company and being eligible have offered themselves for
reappointment. The Company has received letter from M/s. Price
Waterhouse, Chartered Accountants, confirming that their appointment, if
made, would be within the limits prescribed under Section 224(1B) of
the Companies Act, 1956. Their comments on the accounts and notes to
the accounts are self-explanatory.
K. Statutory Information
Disclosure under Section 217 (1) (e)
Conservation of Energy
The Company continues to give the highest priority for conservation of
energy by using a mix of technology changes, process optimisation
methods and other conventional methods, on an on-going basis.
Technology Absorption
The Company continues to lay emphasis on development and innovation of
in-house technological and technical skills to meet the specific
customer requirements. Efforts are also being made to upgrade the
existing standards and to keep pace with the advances in technological
innovations.
Disclosure under Section 217 (2A)
Information in accordance with the provisions of Section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of employees)
Rules, 1975, as amended regarding employees forms part of this Report.
However, as per the provisions of Section 219 of the Companies Act,
1956, the Report and Accounts are being sent to all shareholders of the
Company, excluding the aforesaid information. Any shareholder,
interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
Pursuant to Section 212 of the Companies Act, 1956, the annual accounts
of the subsidiary companies and the related detailed information shall
be made available to shareholders seeking such information at any point
of time. The annual accounts of the subsidiary companies are kept for
inspection by any shareholders in the registered Offices of the company
and its subsidiary companies. A copy of the accounts of subsidiaries
shall be made available to shareholders on request,
For and on behalf of the Board of Directors
Place: New Delhi Gopinath Pillai
Date: June 14, 2011 Chairman
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