| Your Directors have the pleasure of presenting the twelfth
Annual Report together with the audited accounts for the
year ended 31st March 1996.
FINANCIAL RESULTS
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For the year For the year
ended ended
31.3.96 31.3.95
(Rs. in lacs) (Rs. in lacs)
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Total Income 3569.63 1354.79
Profit before Interest and
Depreciation 177.05 100.22
Interest 43.35 27.69
Profit before depreciation 133.70 72.53
Depreciation 57.60 30.40
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Profit before tax 76.10 42.13
Provision for Taxation 5.50 15.64
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Profit after Tax 70.60 26.49
Surplus from earlier years brought
forward 19.32 54.23
Prior period Adjustments (Debit) 8.14 -
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Net Surplus available for
Appropriation 81.78 80.72
Transfer to capital account by way of
Capitalization of Reserves - 50.00
Transfer to General Reserves 20.00 -
Carried over to next year 26.72 19.32
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Net Available for Distribution as
Dividend 35.06 11.40
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DIVIDEND
While your Company has a large requirement of funds to
finance its growth in the fast track, your Directors feel
that short term interests of members must also be taken
care of because of not so buoyant Capital market.
Your Directors thus recommend a dividend of 15% on the
paid-up equity of the Company subject to the deduction of
tax at source wherever applicable. If approved at the
forthcoming AGM, dividend will be paid to those
shareholders whose names appear in the Register of Members
as on 16th September, 1996. The dividend will be paid
pro-rata in respect of capital added during the year.
OPERATIONS
Your Company recorded a significant increase in all its
business segments. The turnover has increased from Rs.13,54
crores to Rs. 35.69 crores. However, the growth in the
turnover was largely in segments of business where
contribution is only marginal.
BUSINESS PROSPECTS
Continued economic liberalisation and opening up of the
Indian economy is being encouraged by the present govern-
ment. Exports are being encouraged as a result of which the
international freight logistics industry has a bright
future.
The funds raised by the Company through its maiden public
issue in July 1995 have been utilized to increase the fleet
strength by 36 vehicles, upgrade offices, communication and
systems. The Company has also opened its first repre-
sentative office at New York (USA).
The strength of the Company lies in its fully integrated
freight operations. Prospects for the haulage division
continue to be buoyant and revenue should increase
considerably because of increased demand. The International
Freight For warding Division has achieved large volumes. In
the year ahead, after a period of consolidation, prospects
are bright as the Company has created a niche market
particularly to the CIS countries and Moscow.
As a measure of future Integration of activities, the
Company has obtained approval from the Reserve Bank of
India to lease three hundred 20 foot-containers and a
hundred 40 foot containers of value approximately USD 1.10
million equivalent to Rs. 385.00 lacs for the Non Vessel
Operating Container Carrier (NVOCC) Division . This
division is being headquartered in Madras and the
containers will be traded mainly to CIS destinations, Gulf,
Sri Lanka and Singapore. The prospects for this division
are encouraging. This division will start operating in the
first half of October, 1996. This particular activity is
beyond the scope originally envisaged in the project
pertaining to the public issue. This particular activity
being a business authorised under Sub-clause 27 under part
C of the Clause III of the Memorandum of Association of
your Company, relating, to the business objectives
authorised to be carried on by your Company needs to be
approved by the members by way of a Special Resolution
which is being placed for the consideration of the mem-
bers at the ensuing Annual General Meeting.
Your Company as a matter of routine strengthening of the
base, is in the process of making substantial addition to
the fleet during the current financial year as well as
disposing off old vehicles which are difficult to maintain.
This way the fleet of the Company will be young and of good
asset value.
CORPORATE STRATEGY
The Company being in the service industry must employ
committed and motivated Personnel keeping our client's
interest of paramount importance. The Company has built up
and placed key personnel at strategic locations to ensure
that Containerway International Limited becomes the leading
integrated professional international logistic firm. Having
met with success, in setting up a representative office in
New York the Company is now hoping to position representa-
tives at London, Moscow and Almaty (Kazakhstan).
SHARE CAPITAL
Your Company offered 9,97,500 equity shares of Rs 10/- each
at a premium of Rs 5/- aggregating to Rs. 149.63 lacs
through prospectus dated 29th May 1995 for public
subscription. The said public issue was well received by
the investing public which is evident from the fact that
the issue was oversubscribed over two times. These shares
were allotted on 19th September 1995 in accordance with the
basis of allotment as approved by the Stock Exchange at
Calcutta in consultation with the representative of the
Securities Exchange Board of India.
FIXED DEPOSITS
Your Company has not accepted any fixed deposits from the
public during the period under review.
INFORMATION UNDER SECTION 217(1)(e) OF THE COMPANIES ACT,
1956
Your Company has no activity relating to conservation of
energy and technological absorption.
The company has incurred foreign exchange expenses on
insurance amounting to Rs. 5.11 lacs (Pound Sterling
9385.50) and business travel abroad amounting to Rs. 8.95
lacs (US$26132.77).
SUBSIDIARY
Your Company has one wholly owned subsidiary namely Pracht
Forwarding and Travels Pvt. Ltd. which is engaged in the
business of clearing and forwarding. Details as required to
be furnished in accordance with the requirement under
Section 212 of The Companies Act, 1956 is annexed to the
statement of accounts under review.
STATEMENT UNDER CLAUSE 43 OF THE LISTING AGREEMENT
Performance of the Corn an vis-a-vis projection made in the
public issue prospectus dated 29th May 1995.
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Utilisation of Projected Actual Variation Variation %
Funds:
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Vehicles Purchase 300 318.36 -18.36 -6.12
Setting up of offices
(Note No.1) 139 47.25 91.75 66.01
Communication & systems
(Note No. 2) 50 41.71 8.29 16.58
Share Issue Expenses 25 18.30 6.70 26.80
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Notes
1. The variation is due to the fact that business generated
with current infrastructure was encouraging. Overseas
arrangements have started and the need for investing in
overseas offices is not felt necessary for the time being.
2. By engaging a good software consultant, the expenses on
hardware and software have resulted in a positive variance.
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Profitability: Projected Actual Variation Variation %
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Turnover (Note
No. 3) 1764.50 3569.00 1804.50 102.27
Net Profit (Note
No. 4) 119.00 70.60 -48.40 -40.67
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Notes
3. The turnover includes freight revenue. Additionally the
increase in turnover was largely in segment of business
where contribution is only marginal.
4. While the projected profitability was for the full year
of expanded operation, postponement of public issue by six
months affected the profits.
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