concor term paper

8/2/2019 CONCOR Term Paper

1/40

1

Term paper: Financial management

Companys name : CONTAINER CORPORATION OF INDIA

Industry : LOGISTICS

Submitted by: Submitted to :

Komal Sharma Dr. Renuka Sharma

CUN 110550037 Associate Professor (Finance)

MBA/ Term 3/ Sec:A

Chitkara Business School

Chitkara University, Punjab

(March 2012)


2/40

2


3/40

3

DECLARATION

I hereby declare that the project work entitled CONTAINER CORPORATION OF INDIA

submitted to the Chitkara University, is a record of an original work done by me under theguidance of Dr. Renuka Sharma, Associate Professor (Finance), Chitkara Business School.

This project work is submitted in the partial fulfilment of the requirements for the award of the degree of Master of Business Administration. The results embodied in this report have notbeen submitted to any other University or Institute for the award of any degree or diploma.

KOMAL SHARMA

CUN110550037


4/40

4

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kindsupport and help of many individuals and organizations. I would like to extend my sincerethanks to all of them.

I am highly indebted to Dr. Renuka Sharma for their guidance and constant supervision aswell as for providing necessary information regarding the project & also for their support incompleting the project.

I would like to express my gratitude towards my parents & member of Chitkara BusinessSchool, Chitkara University for their kind co-operation and encouragement which help me in

completion of this project. I would like to express my special gratitude and thanks to industry persons for giving mesuch attention and time.

My thanks and appreciations also go to my colleague in developing the project and peoplewho have willingly helped me out with their abilities.

KOMAL SHARMA


5/40

5

INDEX

PART NO. CONTENTS PAGE NO.

A.PART-I COMPANY OVERVIEW 6RELATIVE POSITION 8ORGANISATION STRUCTURE 9LISTED ON 10MANAGEMENT 12

B.PART-II ANALYSIS & INTERPRETATION

OF VARIOUS FINANCIALPRAMETERS

14

BETA VALUE 15STANDARD DEVIATION 16CAPITAL STRUCTURE 16DIVIDEND POLICY 17LIQUIDITY 18IPO ISSUES 19

CREDIT RATING 20NEWS 21INVENTORY POSITION 26COMPARISON 27

C. BIBLIOGRAPHY 30GLOSSARY 31ANNEXURE 38


6/40

6

CONCOR ( container corporation of India )

Industry profile:

The Indian Multimodal scene has witnessed the advent of multiple container train operatorssince 2006. Presently, there are 15 container train operators (besides CONCOR) who havesigned Concession Agreements with Indian Railways for running of Container Trains for aperiod of 20 years, extendable by another10 years.Almost all the 15 players have commenced their train services. Some of these players haveset up their own terminal facilities also. While the operations of the new entrants to thebusiness started in a limited way by two operators in April, 2007, the number has now grownto 15 excluding CONCOR and the volumes being transported by these operators havecontinuously grown with the induction of new rakes. These operators have been using GoodsSheds/terminals of Indian Railways as well, for their operations. With the emergence of anumber of new ports, viz., Mundra, Pipavav, Vizag, Tuticorin, Vallarpadam and a few otherports on the west coast, the hinterland connectivity in the country is expected to increaseresulting in increased levels of hinterland penetration of container traffic in the years to come.With the changed external business environment, your company placed emphasis onproviding total logistics and transport solutions to its customers by exploring the possibilitiesof expanding the presence of the company in all the segments of the transport value chain inthe EXIM as well as Domestic segments. Possibilities have been explored for strategicalliances, both for the optimal utilization of infrastructure as well as for expansion into othersegments of the value chain.

Background:

CONCOR - The Multimodal Logistics Professionals

Ever since globalization transformed the transport sector, national boundaries have becomepermeable to penetration by trade, creating the need for flexible transport solutions.Intermodalism and containerization were the by-products of this era and were poised tometamorphosize transport of "general cargo" , moving it 'seamlessly' through sea and land

arteries. Forty years ago, the physical process of exporting or importing goods was arduous.Goods needed to be transported by lorry to the port, unloaded into a warehouse and thenreloaded into the ship 'piece by piece' .

Malcolm McLean's idea of containerization changed the basics of cargo transport bystandardizing the dimensions of the container and simultaneously improving the productivityof ports by mechanizing handling of container-carrying 'cellular' ships and reducing theirhandling to a few hours only. Unitisation helped elimination of multiple handling of cargoand made transfers quick, cheap and easy. As containerization came to stand for 'cargo care' ,it grew by leaps and bounds the world over.


7/40

7

Indian Railway's strategic initiative to containerize cargotransport put India on the multi-modal map for the firsttime in 1966. Given the continental distances in India(almost 3000 km from North to South and East to West) ,rail transport could be the cheaper option for all cargo

over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerizedmulti-modal door-to-door transport provided the idealsolution to this problem. It was this idea that saw theIndian Railways entering the market for moving door-to-door domestic cargo in special DSO containers starting in1966.

Though the first ISO marine container had been handled in India at Cochin as early as 1973,it was in 1981 that the first ISO container was moved inland by the Indian Railways to India'sfirst Inland Container Depot (ICD) at Bangaluru, also managed by the Indian Railways.

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, andalong the way, a strong view had emerged that there was a need to set up a separate pro-active organization for promoting and managing the growth of containerization in India.

The company:

Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988 under

the Companies Act, and commenced operation from November 1989 taking over the existingnetwork of 7 ICDs from the Indian Railways.

From its humble beginning, it is now an undisputed market leader having the largest network of 61 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, ithas also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India byvirtue of its modern rail wagon fleet, customer friendly commercial practices and extensivelyused Information Technology. The company developed multimodal logistics support forIndias International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road services and also provided to cater to the need of door-to-door

services, whether in the International orDomestic business.

CONCOR is committed to providingresponsive, cost effective, efficient andreliable logistics solution to itscustomers. It strives to be the firstchoice for its customers. CONCOR is acustomer focused, performance driven,result oriented organization, focused onproviding value for money to itscustomers.


8/40

8

Relative position:

As per ET survey of listed companies in India for 2009-10, CONCOR has been rankedNo.161 in top 500 companies of India in terms of turnover and No.85 in terms of net profitrespectively. In Transport & Logistics sector, CONCOR has been ranked No.3 in terms of turnover and No.1 in terms of net profit.Dun & Bradstreet has also ranked CONCOR among the I ndias Top 500 Companies withranking of No. 133 in total income, No. 65 in Net Profit listing and No. 79 in Net Worthlisting.

Mission :

Our mission is to join with our community partners and stake holders to make Concor acompany of outstanding quality. We do this by providing responsive, cost effective, efficientand reliable logistics solutions to our community partners and ensuring profitability andgrowth. We strive to be the first choice for our customers. We will be firmly committed toour social responsibilities and prove worthy of the trust reposed in us.

Objective:

We will be a customer focussed, performance driven, result orient ed organisation, focussedon providing value for our money to our customers.

We will strive to maximise productive utilisation of resources, deliver high quality of services and be recognised as setting the standards for excellence.

We will constantly look for new and better ways to provide innovative services. We will aimto customer convenience and satisfaction, learn from our competitors and always strive forexcellence.

We will get measurable performance goals to support the objectives and mission of our

organisation to achieve excellence in all areas of our business and operations by benchmarking ourselves with our competitors.

We will follow highest standards of business ethics and add social value for the communityat large by discharging soci al obligations as a responsible corporate entity.

We will maintain absolute integrity, honesty, transparency and fair play in all our officialdealings and strive to maintain high standards of morality in our personal life.


9/40

9

Organisation structure of the company :

The organisation structure of the company consists of the Chairman at the top position. Thechairman is followed by the Managing Director. Next to M.D are the different Directors of International Marketing and Operations, P&S, Finance and Domestic.

It also consists of the different corporate offices in the North Central Region, Northern,Western, South Central, Central, Eastern and North West.


10/40

10

Listing and dematerialization of shares:

CONCORs shares are listed with the bourses i.e. Mumbai and National Stock Exchanges.The listing fees of both the stock exchanges have been paid.

To facilitate dematerialization of shares by its shareholders, CONCOR has signed agreementswith both the Depositories (NSDL & CDSL). As per SEBI guidel ines, CONCORs shareshave been placed under Compulsory Demat Mode. Out of 4,79,82,992 shares listed on theStock Exchange 4,79,80,755 shares were in Demat mode as on 31st March, 2011. The marketcapitalization of the company was 15,599 crores as on 31st March, 2011 (as per closing priceon NSE).

Industrial relations:

The employee relation perspectives in CONCOR are focused towards basic business needs,management of contract labour, legal perspectives and corporate sustainability. The approachtowards industrial relations has been proactive, fair and transparent; ensuring better wagesand social security to the employees. During the financial year the employee relationsremained harmonious and no man days were lost.

Reservation policy:

CONCOR has been following the Presidential Directives and Guidelines issued by theGovernment of India from time to time regarding reservation for SCs, STs, OBCs, PhysicallyHandicapped and Ex-Servicemen in letter and spirit. The representation of SCs, STs, OBCsand PHs in CONCOR is as under:

Category Joined during 2010-11 No. of employees % of total manpowerScheduled caste 07 169 14.73Scheduled tribes 03 43 3.75Other backward classes 15 249 21.71

Physically handicapped 01 19 1.66

Special achievements:

1. Honble Prime Minister of India Shri Manmohan Singh conferred upon CONCOR theMOU Excellence Certificate for 2008-09 for excellent achievement in MOU targets on 15thDecember, 2010 at New Delhi2. CONCOR received the 1st Northern India Multimodal Logistics Awards for ICD & RailOperator of the Year during Conquest -2011 International Conference & EXPO held at NewDelhi during January 2011.3. M/s. CARE (Credit Analysis and Research Limited) has reaffirmed the credit rating of CARE AAA (Is) {Triple A (Issuer)}to CONCOR. The symbols of CARE AAA (Is) are


11/40

11

considered to be of the best credit quality, offering highest safety for timely servicing of debtobligations.4. As per ET survey of listed companies in India for 2009-10, CONCOR has been rankedNo.161 in top 500 companies of India in terms of turnover and No.85 in terms of net profitrespectively. In Transport & Logistics sector, CONCOR has been ranked No.3 in terms of

turnover and No.1 in terms of net profit.5. CONCOR received the first ever award called All India Maritime and Logistics Awards,2010 (MALA) for Inland Container Depot Operator of the year from Exim India &Fairplay Exposition Group. The award was conferred during a function held in Mumbai.6. CONCORs Inland Container Depot (ICD), Dadri has b een selected for Annual IndianMaritime Awards 2010 for ICD of the year for high level of the reliability in customer service during the year 2009-10.7. The company has been selected for conferring of Rolta Corporate Awards 2010 by Dun &Bradstreet for being the best Indian company under the Transport & Logistics sector. Theaward will be conferred on CONCOR in the last week of April in Mumbai. Dun & Bradstreethas also ranked CONCOR among the Indias Top 500 Companies with ranking of No. 133 intotal income, No. 65 in Net Profit listing and No. 79 in Net Worth listing.

Corporate social responsibility (CSR):

Significant CSR activities were undertaken during the year. Details of some of the majoractivities are appended below:A Memorandum of Understanding (MOU) was signed with National Literacy MissionAuthority, Department of School Education & Literacy, Ministry of Human ResourceDevelopment, Government of India for building Adult Education Centres in the GramPanchayat and village. Specifically 65 Lacs were used in development of 20 such centres

sponsored in Karnataka with coverage of an estimated 1,47,253 beneficiaries. MOU wassigned with National Foundation for Communal Harmony (NFCH) to support the educationof children affected by violence in different States. 30 Lacs were contributed to NFCHtowards this for assisting over 366 children affected by ethnic/communal/terrorist violence inthe districts of Kamrup (Assam), Kokrajhar (Assam), Ahmedabad (Gujarat) & Srinagar(Jammu & Kashmir).

Internal control systems :

CONCOR has in place well defined roles, responsibilities and authorities for employees atvarious levels. This coupled with robust internal MIS systems, ensures appropriateinformation flow to facilitate effective monitoring. Adherence to these processes is monitoredthrough frequent internal audits. The company has an internal audit system that requires theinternal audit firms to certify the appropriateness of internal controls in operation. Theinternal auditors are external firms directly reporting to the management at higher level,which also ensures their independence. Reports of the internal auditors are reviewed,compliances are ensured and the reports along with the compliances are put up to AuditCommittee periodically.


12/40

12

Board of directors :

During the financial year 2010-11, five meetings of the Board of Directors were held fortransacting the businesses of the Company. Shri Vinay Mittal, Chairman / Railway Board,

joined the Board of CONCOR w.e.f. 26.07.2011 as Part-time Chairman. Lt. Gen. (Retd.)Arvind Mahajan, Dr. (Professor) A.K. Bandyopadhyay and Dr. (Professor)Kausik Gupta joined the Board of CONCOR w.e.f. 13.05.2011 as Independent Directors.During the year and upto the date of this report, the directorship in the company are under:- Shri Vivek Sahai, Part-time Chairman (upto 30.06.2011)- Shri Vinay Mittal, Part-time Chairman (w.e.f. 26.07.2011)- Shri Anil Kumar Gupta, Managing Director- Shri Harpreet Singh, Director (Projects & Services)- Shri Yash Vardhan, Director (Intl. Mktg. & Ops.)- Smt. P.Alli Rani, Director (Finance)- Shri S.K. Das, Director- Shri S. Balachandran, Director (upto 31.12.2010)- Shri V. Sanjeevi, Director (upto 31.12.2010)13- Prof. Janat Shah, Director (upto 31.12.2010)- Shri T.R. Doongaji, Director (upto 03.04.2011)- Lt. Gen. Arvind Mahajan (Retd.), Director- Dr. (Professor) A.K. Bandyopadhyay, Director- Dr. (Professor) Kausik Gupta, Director

Retirement of directors by rotation :

In terms of provisions of the Companies Act, 1956, Shri Anil Kumar Gupta, Shri Harpreet

Singh and Smt. P. Alli Rani,Directors are liable to retire by rotation and being eligible, offer themselves forreappointment.

Code of conduct :

The Code of Conduct has been laid down for the Board Members and senior management.

Based on the affirmation received from Board Members and Senior Management Personnel,it is hereby declared that all the members of the Board and Senior Management Personnelhave affirmed compliance of Code of Conduct for the financial year ended on March 31,2011.

Strategy to meet the challenges :

Against the backdrop of the outlook presented above, your company has formulated a threepronged strategy for maintaining its profitability in the face of the challenges of anincreasingly competitive market.

* Customer delights by way of efficient response and integrated multi modal services.

* Increase in revenue by diversification and product differentiation


13/40

13

* Management of costs by technological innovation

Action plans for each of these categories in the short term less (than 2 years) medium term (2to 5 years) and long term (more than 5 years) have been formulated.

Conclusion:

The Company acknowledges the commitment and dedication of all the employees, thesupport and understanding extended by the Indian Railways, Customs, Ports, Investors andabove all the customers who have continued to patronize the services provided by theCompany.


14/40

14

Analysis and interpretation of various financial parameters:

Change in Share Price of the Company in last five years:

On the basis of long and medium term : We have taken the monthly share prices of thecompany along with the benchmark in order to compute the changes in the share price of thecompany over the period of last five years.From the observations shown in the excel sheet, we can say:

The share prices of the company were about of Rs. 2009 at the beginning of the year inJan, 2007. This was reduced to Rs. 1882 in Feb, 2007.

In Jan, 2008 the share price was about Rs.1771 which was reduced to Rs.564 in Nov,2008 and Rs. 617 in Dec, 2008.

At the beginning of Jan 2009, the share prices were about Rs.707 which was increased

to Rs.1097 till the middle of the year in July, 2009. Till the end of the year 2009. Theshare prices of the company were increased to Rs.1309 in Dec, 2009. Jan 2010, started with a fall in the share prices of the company to Rs.1224 which got

rose to Rs.1370 till the mid July, 2010. Dec started with a decrease in the share pricesto Rs.1256.

In Jan 2011, the share prices of the company were Rs.1205 which became Rs.1104 inJuly, 2011. Till the end in the Dec, 2011 the share prices were computed to be Rs.829.

Recently the share price of the company is Rs.889 which has reduced from Rs.972 inFeb, 2012.

On the basis of short term: In order to calculate the changes on the daily basis, theobservations provided in the excel sheet shows us that there is always variations in theshare prices of the company.The highest price over the five years is Rs.2129 and the lowest is up to Rs.620.However, there is an upward and downward trend in the share prices of the companyon the daily basis but the volatility is not so much. A slow or minor change is noticed inthe prices of the share prices of the company over the last five years.

The Beta Value of the company for a period of last 5 years:

On the basis of daily observations of Short term : The Beta value of the company as percalculated by the excel sheet shows that the Beta is 0.2111. This shows that the variability inthe share prices of the company on the daily basis is less than the volatility of the benchmark.It shows that the shares of the company are less volatile and fluctuate less as compared to thebenchmark of BSE.

On the basis of monthly observations of medium and long term: the beta valuecalculated on the basis of the monthly observations of the company is 0.048939. In this eventhe beta value is less than the beta value of 1. This shows that the volatility of the share priceseven on the basis of medium and short term basis shows that the share prices changes less ascompared to the benchmark BSE which is more volatile in nature as compared to the

company.


15/40

15

The Risk involved in stock price movement through Standard Deviationand coefficient of variation:

The standard deviation and coefficient of variation shows the risk involved in the stock prices of the company.

On the basis of long term, medium term and short term: As per the standarddeviation and co variance calculated on the basis of the daily observations of the stock pricesof the company. The standard deviation is calculated to be 0.000352. This shows that there isless risk involved in the stock prices of the company. A variance of less than 1 show that thevariability in the share prices of the company is less and even the risk involved is less in thecompany.

As per the covariance we can calculate that there is positive relation between the benchmark

as well as the companys sto ck prices. This means that an increase in the share prices of the benchmark will lead to an increase in the companys share prices as well as vice versa. Theco variance is calculated to be 7.44 which shows a positive relation in the companys stock prices with the benchmark leading to a same increase and decrease i.e. movement in the shareprices over time.

Chart showing the changes in the share prices of Concor over time as compared to BSE:

The chart shows that the share prices of the benchmark i.e. BSE tends to be very volatile withlarge level of variation in its share prices over time. However, the share prices of Concor are

very much stable with little variation in the stock prices over time.

0

5000

10000

15000

20000

25000

Share prices of Concor

Share prices of BSE


16/40

16

Chart showing the changes in the return of Concor and the BSE over the period of time:

This chart shows that the return of Concor is very much stable, only little fluctuations arenoticed over time. Similarly, the return of the BSE benchmark is stable at approx. 4 .

Capital structure of the company for the last 5 years :

The company is following a conservative policy from the last five years. It is having no debtfrom the last five years. There is not even any preference share capital in the company fromthe last financial year.

Year Equitycapital

Preferencecapital

Debt Debtequityratio

Equitypreferenceratio

Overalldebt equitypreferenceratio

2007 64.99 0 0 0 0 02008 129.98 0 0 0 0 02009 129.98 0 0 0 0 0

2010 129.98 0 0 0 0 0

2011 129.98 0 0 0 0 0

There is no change in the capital structure, with the Government of India continuing to hold63.09% of the shares, the balance 36.91% being held by the public.

Return of Concor,2.948706309

Return of BSE,4.243093635

0

1

2

3

4

5

6

7

8

J a n

/ 0 7

A p r /

0 7

J u l / 0 7

O c t / 0 7

J a n

/ 0 8

A p r /

0 8

J u l / 0 8

O c t / 0 8

J a n

/ 0 9

A p r /

0 9

J u l / 0 9

O c t / 0 9

J a n

/ 1 0

A p r /

1 0

J u l / 1 0

O c t / 1 0

J a n

/ 1 1

A p r /

1 1

J u l / 1 1

O c t / 1 1

J a n

/ 1 2

A x i s T i t

l e

Chart Title


17/40

17

Shareholding Pattern

ParticularsNo. of

Shares(Mn)%

Holdings

Total Promoter Holdings 82.00 63.1

Total Govt Holding (Promoter + Non Promoter) 0.00 0.0

Total Domestic Institutions (Banks/ FI + MF / UTI) 9.33 7.2

Total Foreign Holdings (FII+NRI holdings) 34.23 26.3

Total Non Promoter Corporate Holdings 3.27 2.5

Total Public & Others (Individuals + HUF + Clearing members) 1.15 0.8

Total 129.98 100

Dividend policy of the company:

The company is following a liberal dividend policy over the period of last five years.

(in crores)Dividends 2007 2008 2009 2010 2011Distributed 142.98 168.98 181.98 181.98 201.48

Appropriations:As on 31.03.2011 As on 31.03.2011

Interim Dividend 97.49 77.99Proposed Final Dividend 103.99 103.99Corporate tax on dividend 33.06 30.52Transfer to general reserves 87.59 78.67Balance carried to Balance Sheet 553.82 495.52Earnings per share (Rs.) 67.39 60.52


18/40

18

Dividend:

Keeping in view the companys Capex requirements, the Board recommends a final dividendof 80% on the paid up share capital of `129.98 crores. An interim dividend @ 75% hasalready been paid. The total dividend payment for the year 2010-11 is 201.48 crores as

compared to `181.98 crores (excluding dividend tax) for the FY 2009-10.

Dividend over time:

Year End Dividend Per Share Dividend (%) Remark

15-Feb-12 7.5 75.0 Interim

06-Sep-11 8.0 80.0 Final

28-Jan-11 7.5 75.0 Interim

03-Sep-10 8.0 80.0 Final

01-Feb-10 6.0 60.0 Interim

04-Sep-09 8.0 80.0 Final

09-Feb-09 6.0 60.0 Interim

12-Aug-08 7.5 75.0 Final

14-Feb-08 11.0 110.0 Interim

31-Jan-07 11.0 110.0 Interim

Thus, the company is giving its shareholders with continuous dividend and it is alsoincreasing over time. It has been increased from 181.98 in 2009-10 to 201.48 in 2010-2011.Thus, the liberal as well as stable dividend policy is followed by the company.

Liquidity position over time:

The liquidity position is usually connected with the cash which is held by the companyover time. Liquidity means the ability of the company to pay its expenses in cash.Liquidity position is calculated by computing the Current Ratio of the company which iscalculated by dividing the current assets of the company with its current liabilities.


19/40

19

Years Current ratio2007 2.982008 3.542009 3.512010 4.052011 5.21

This shows that the current ratio has increased from 2.98 to 5.21 which mean that thecompany has large amount of current assets as compared to its current liabilities. The currentassets are 5.21 times the current liabilities of the company. As a result, the liquidity positionof the company is very high.However, there is always a fear of stock being held in large amount by the company as aresult of which the current ratio appears to be high and the companys liquidity positionappears to be excellent.

In order to check the adequacy of the current ratio we take the liquidity of the past two years.The liquidity ratio is calculated by taking the liquid assets i.e. stock and any prepaid expensesdeducted from current assets divided by the current liabilities.

Years Liquid ratio2010 4.4982011 4.658

Thus, the liquid ratio of the last two years also showed that the liquid ratio of the company

i.e. the liquid assets of the company are about 4.658 times the current liabilities of thecompany. This shows that even the liquidity ratio has increased over two years from 4.5 to4.7 which discloses the fact that the company has adequate amount of liquid assets with it topay its expenses and current liabilities.

Thus, we can conclude that the company is enjoying a good and effective as well as efficientliquidity position. Currently, the current ratio of company shows that the current assets of thecompany are approximately 5 times the current liabilities of the company and is alsoincreasing over the passage of time with 2.98 five years before to the current position. Aswell as, the liquidity ratio is also increasing which is also efficient and adequate for thecompany to pay its current liabilities. Thus, the companys liquidity position is very efficient

and adequate.

IPO issues of the company over past five years:

The company has not undergone any IPO issues over the past five years. In 2007, thecompany has an Equity Share capital of 64.98 crores. However, it was increased to129.96 crores in 2008.Container Corporation Bonus Issue [with ratio of 1:1] has been recommended recently,

which means shareholders of Container Corporation Limited whos names appear in the


20/40

20

shareholders register of CONCOR as on the record date of the bonus issue, will get 1bonus share for every 1 share that they hold in the company .

AS AT AS AT

31.03.2011 31.03.2010AUTHORISED20,00,00,000 Equity Shares of ` 10 each 200.00 200.00ISSUED, SUBSCRIBED AND PAID UP12,99,82,794 (P.Yr : 12,99,82,794) Equity shares of 10/- each fully paid up (Includes 6,49,91,397equity shares issued as fullypaid up Bonus Sharesby capitalising General Reserves) 129.98 129.98

TOTAL 129.98 129.98

Equity Capital Structure:

(Rs. in Cr)

Year Authorised Issued Subscribed Called UpLess : Calls

in ArrearsForfeited Paid Up

2011 200.00 129.98 129.98 129.98 0.00 0.00 129.98

2010 200.00 129.98 129.98 129.98 0.00 0.00 129.98

2009 200.00 129.98 129.98 129.98 0.00 0.00 129.98

2008 200.00 64.99 64.99 64.99 0.00 0.00 64.99

2007 100.00 64.99 64.99 64.99 0.00 0.00 64.99

Thus, we can say that there is no IPO issue by the company within 5 years. It had the sharecapital of 64.98 crores which was increased in 2008 to 129.98 crores by issuing bonus shares

to its existing shareholders in the ratio of 1:1. Therefore, the increase in the share capital canbe considered as the increase due to bonus shares issue and no IPO has been done by thecompany over the period of last five years.

The Credit Rating of various securities of the company:

Concor speeds up on getting a 'AAA' tag

Container Corporation of India jumped 8.08% to Rs 1042.65 at 10:05 IST after credit ratingagency, CARE assigned a 'AAA' rating to the company.


21/40

21

Meanwhile, the BSE Sensex was up 101.92, or 0.70%, to 14,623.81.

On BSE, 7268 shares were traded in the counter. The stock hit a high of Rs 1080 and a low of Rs 1000 so far during the day.

Issuers with 'AAA' rating are considered to be of the best credit quality, offering highestsafety of timely servicing of debt obligations. Such issuers carry minimal credit risk.

The rating takes into account Container Corporation of India's position as the country'sdominant container railroad player, majority ownership with the Government of India (GoI),zero-debt status, cash-rich balance sheet and comfortable profitability profile.

The rating also factors in the company's wide network of terminals spread across the countryand an established client base.

Going forward, ability to maintain growth in turnover and sustain profitability margins, inlight of competition from private players and slowdown in cargo traffic in the currenteconomic situation, would be the key rating sensitivities.

The Government of India holds 63.08% stake in Container Corporation of India which isknown by its acronym Concor.

Concor, a public sector undertaking under Ministry of Railways, is primarily engaged incontainer rail transportation business, inland container depot (ICD) operations, warehousingand road transportation. Concor also provides transit warehousing for Exim (export andimport) cargo, bonded warehousing and provides air cargo facilities.

Thus, we can conclude that M/s. CARE (Credit Analysis and Research Limited) hasreaffirmed the credit rating of CARE AAA (Is) {Triple A (Issuer)}to CONCOR. Thesymbols of CARE AAA (Is) are considered to be of the best credit quality, offering highestsafety for timely servicing of debt obligations.

Track the news relevant to the company in chronological order in last

two years:

1.Container Corp Q3 net profit at Rs 201 cr

7.34 Pm | 22 Jan 2010 | Source: CNBC-TV18
http://www.moneycontrol.com/news/results/container-corp-q3-net-profit-at-rs-201-cr_437544.htmlhttp://www.moneycontrol.com/news/results/container-corp-q3-net-profit-at-rs-201-cr_437544.htmlhttp://www.moneycontrol.com/news/results/container-corp-q3-net-profit-at-rs-201-cr_437544.htmlhttp://www.moneycontrol.com/news/results/container-corp-q3-net-profit-at-rs-201-cr_437544.htmlhttp://www.moneycontrol.com/news/results/container-corp-q3-net-profit-at-rs-201-cr_437544.html


22/40

22

2. Container Corp warehouse, goods damaged due to fire

1 pm | 12 Apr 2010 | Source: Reuters

3. Sell Concar; target of Rs 1194: Angel

4.08 pm | 24 Jun 2010 | Source: Moneycontrol.com

4. Container Corp Q1 net profit down at Rs 194 cr

6.02 pm | 19 Jul 2010 | Source: Moneycontrol.com

5. Container Corporation Q1 net profit at Rs 194 cr

10.00 am | 20 Jul 2010 | Source: CNBC-TV18

6. Concor Sept qtr PAT seen at Rs 186.5 cr: Angel

3.14 pm | 06 Oct 2010 | Source: Moneycontrol.com

7. Concor Q2 net profit at Rs 207cr

8.26 am | 20 Oct 2010 | Source: Moneycontrol.com

8. Container Corporation of India reports Rs 944.18 crore turnover for quarterended Sep 2010

11.14 Pm | 20 Oct 2010 | Source: Moneycontrol.com

9. Buy Container Corp; target of Rs 1500: Aditya Birla Money

6.10 pm | 10 Nov 2010 | Source: Moneycontrol.com

10.Transport Corp to invest Rs 300-500 mn in JV with Concor

8.39 am | 14 Dec 2010 | Source: Reuters

11. E-Tendering - Registration/ Training
http://www.moneycontrol.com/news/business/container-corp-warehouse-goods-damaged-due-to-fire_451284.htmlhttp://www.moneycontrol.com/news/business/container-corp-warehouse-goods-damaged-due-to-fire_451284.htmlhttp://www.moneycontrol.com/news/business/container-corp-warehouse-goods-damaged-due-to-fire_451284.htmlhttp://www.moneycontrol.com/news/recommendations/sell-concar-targetrs-1194-angel_466057.htmlhttp://www.moneycontrol.com/news/recommendations/sell-concar-targetrs-1194-angel_466057.htmlhttp://www.moneycontrol.com/news/results/container-corp-q1-net-profit-down-at-rs-194-cr_470820.htmlhttp://www.moneycontrol.com/news/results/container-corp-q1-net-profit-down-at-rs-194-cr_470820.htmlhttp://www.moneycontrol.com/news/results/container-corporation-q1-net-profit-at-rs-194-cr_470952.htmlhttp://www.moneycontrol.com/news/results/container-corporation-q1-net-profit-at-rs-194-cr_470952.htmlhttp://www.moneycontrol.com/news/brokerageresultsestimates/concor-sept-qtr-pat-seen-at-rs-1865-cr-angel-_489280.htmlhttp://www.moneycontrol.com/news/brokerageresultsestimates/concor-sept-qtr-pat-seen-at-rs-1865-cr-angel-_489280.htmlhttp://www.moneycontrol.com/news/results/concor-q2-net-profit-at-rs-207cr_492506.htmlhttp://www.moneycontrol.com/news/results/concor-q2-net-profit-at-rs-207cr_492506.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/recommendations/buy-container-corp-targetrs-1500-aditya-birla-money_498117.htmlhttp://www.moneycontrol.com/news/recommendations/buy-container-corp-targetrs-1500-aditya-birla-money_498117.htmlhttp://www.moneycontrol.com/news/recommendations/buy-container-corp-targetrs-1500-aditya-birla-money_498117.htmlhttp://www.moneycontrol.com/news/business/transport-corp-to-invest-rs-300-500-mn-jvconcor_504983.htmlhttp://www.moneycontrol.com/news/business/transport-corp-to-invest-rs-300-500-mn-jvconcor_504983.htmlhttp://www.moneycontrol.com/news/business/transport-corp-to-invest-rs-300-500-mn-jvconcor_504983.htmlhttp://www.concorindia.com/upload/news/248pice-tend-trg.pdfhttp://www.concorindia.com/upload/news/248pice-tend-trg.pdfhttp://www.concorindia.com/upload/news/248pice-tend-trg.pdfhttp://www.moneycontrol.com/news/business/transport-corp-to-invest-rs-300-500-mn-jvconcor_504983.htmlhttp://www.moneycontrol.com/news/recommendations/buy-container-corp-targetrs-1500-aditya-birla-money_498117.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/results/container-corporationindia-reports-rs-94418-crore-turnover-for-quarter-ended-sep-2010_492620.htmlhttp://www.moneycontrol.com/news/results/concor-q2-net-profit-at-rs-207cr_492506.htmlhttp://www.moneycontrol.com/news/brokerageresultsestimates/concor-sept-qtr-pat-seen-at-rs-1865-cr-angel-_489280.htmlhttp://www.moneycontrol.com/news/results/container-corporation-q1-net-profit-at-rs-194-cr_470952.htmlhttp://www.moneycontrol.com/news/results/container-corp-q1-net-profit-down-at-rs-194-cr_470820.htmlhttp://www.moneycontrol.com/news/recommendations/sell-concar-targetrs-1194-angel_466057.htmlhttp://www.moneycontrol.com/news/business/container-corp-warehouse-goods-damaged-due-to-fire_451284.html


23/40

23

23.04.2011

12.Conference Call on Q4 earnings of FY 2010-11

06.04.2011

13.Introduction of E-tendering in CONCOR

31.03.2011

14.B.O.D Meeting Notice

31.03.2011

15.Container Corporation of India Ltd.,(CONCOR) invites Expressions of Interest fordevelopment & operations of perishable cargo business from Singur, Hooghly (West Bengal).

09.03.2011

16.INVITATION OF EXPRESSION OF INTEREST (EOI) FOR SETTING UP OF RAIL-LINKED CONTAINER TERMINAL BETWEEN SANJAN-BHILAD-VAPI RAILWAYSTATION IN GUJARAT.

07.03.2011

17.Inauguration of CONCOR's 62nd Terminal PSCT Vallardpadam

25.02.2011

18.Expressions of Interest for development & operations of perishable cargo business fromBagdogra, Siliguri & New Jalpaiguri area

25.02.2011

19.Notice of Record date for Interim Dividend

24.01.2011

20.Expression of interest

08.08.2011

21 .EOI-development of warehouses at multi-modal logistics park, ahmedabad

10.08.2011

22.EOI for DEVELOPMENT OF CEMENT HUB AT MULTI-MODAL LOGISTICSPARK, KHODIYAR, AHMEDABAD

10.08.2011
http://www.concorindia.com/upload/news/247picQ4FY10-11Conference%20Call.pdfhttp://www.concorindia.com/upload/news/247picQ4FY10-11Conference%20Call.pdfhttp://www.concorindia.com/upload/news/246pice-tender-news.pdfhttp://www.concorindia.com/upload/news/246pice-tender-news.pdfhttp://www.concorindia.com/upload/news/245picbod190411.pdfhttp://www.concorindia.com/upload/news/245picbod190411.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/242picPSCT%20Vallarpadam.pdfhttp://www.concorindia.com/upload/news/242picPSCT%20Vallarpadam.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/238picecs.pdfhttp://www.concorindia.com/upload/news/238picecs.pdfhttp://www.concorindia.com/upload/news/259picNIT_EOI.pdfhttp://www.concorindia.com/upload/news/259picNIT_EOI.pdfhttp://www.concorindia.com/upload/news/259picNIT_EOI.pdfhttp://www.concorindia.com/upload/news/262picEOI%20for%20Warehouse%20100811.pdfhttp://www.concorindia.com/upload/news/262picEOI%20for%20Warehouse%20100811.pdfhttp://www.concorindia.com/upload/news/262picEOI%20for%20Warehouse%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/260picEOI%20for%20Cement%20100811.pdfhttp://www.concorindia.com/upload/news/262picEOI%20for%20Warehouse%20100811.pdfhttp://www.concorindia.com/upload/news/259picNIT_EOI.pdfhttp://www.concorindia.com/upload/news/238picecs.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/240picRevised%20EOI.pdfhttp://www.concorindia.com/upload/news/242picPSCT%20Vallarpadam.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/243picvapi11%20tender.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/244picEOI-Singurr.pdfhttp://www.concorindia.com/upload/news/245picbod190411.pdfhttp://www.concorindia.com/upload/news/246pice-tender-news.pdfhttp://www.concorindia.com/upload/news/247picQ4FY10-11Conference%20Call.pdf


24/40

24

23.E-Filing at CONCOR-DRT - Public Notice

12.08.2011

24.Corrigendum to EOI-DEVELOPMENT OF WAREHOUSES AT MULTI-MODAL

LOGISTICS PARK, AHMEDABAD

12.08.2011

25.Corrigendum-II to EOI for DEVELOPMENT OF CEMENT HUB AT MULTI-MODALLOGISTICS PARK, KHODIYAR, AHMEDABAD

24.08.2011

26.Revised Public Tariff for EXIM reefer traffic wef 22.11.2011

23.11.201126.Engagement of business associates for promotion of domestic cargo logistics

30.11.2011

27.Invitation of Expression of Interest (EOI) Rail Linked Container and Freight Terminalbetween Ludhiana Gill - Quila Raipur Ahmedgarh Railway Stations in Punjab. The dateof Submission has been extended from 21.12.2011 to 16.01.2012 vide Corrigendum dated22.12.2011

02.12.2011

28.B.O.D Meeting Notice

13.01.2012

29.Conference Call on Q3 earnings of FY 2011-12

02.02.2012

30.Expression of interest for hiring of Office Space

10.02.2012

Analyse the relationship between Interest Payment and Profitability of

the company for last five years:

Interest payment : From the past five years the company is having neither debenture nor

any sort of secured or unsecured loan. Thus, the company is not supposed to give any
http://www.concorindia.com/upload/news/265pice-filling_DRT.pdfhttp://www.concorindia.com/upload/news/265pice-filling_DRT.pdfhttp://www.concorindia.com/upload/news/265pice-filling_DRT.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/274picrefeer.pdfhttp://www.concorindia.com/upload/news/274picrefeer.pdfhttp://www.concorindia.com/upload/news/274picrefeer.pdfhttp://www.concorindia.com/upload/news/275picPolicy%20Nov2011.pdfhttp://www.concorindia.com/upload/news/275picPolicy%20Nov2011.pdfhttp://www.concorindia.com/upload/news/275picPolicy%20Nov2011.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/277picbod.pdfhttp://www.concorindia.com/upload/news/277picbod.pdfhttp://www.concorindia.com/upload/news/277picbod.pdfhttp://www.concorindia.com/upload/news/278picConference%20Call.pdfhttp://www.concorindia.com/upload/news/278picConference%20Call.pdfhttp://www.concorindia.com/upload/news/278picConference%20Call.pdfhttp://www.concorindia.com/upload/news/279picEOI%20for%20lease%20Space%20NCRO.pdfhttp://www.concorindia.com/upload/news/279picEOI%20for%20lease%20Space%20NCRO.pdfhttp://www.concorindia.com/upload/news/279picEOI%20for%20lease%20Space%20NCRO.pdfhttp://www.concorindia.com/upload/news/279picEOI%20for%20lease%20Space%20NCRO.pdfhttp://www.concorindia.com/upload/news/278picConference%20Call.pdfhttp://www.concorindia.com/upload/news/277picbod.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/276picEOI.pdfhttp://www.concorindia.com/upload/news/275picPolicy%20Nov2011.pdfhttp://www.concorindia.com/upload/news/274picrefeer.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/267picCorr.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/264picCorrg-wh.pdfhttp://www.concorindia.com/upload/news/265pice-filling_DRT.pdf


25/40

25

kind of interest on any sort of debt. Therefore, the company is not liable for interest

payment on any kind of loans.

Profitability : Profitability refers to the money or cash of the company which is invested

in some beneficial investment in order to earn interest or benefits over the extra money

which is held by the company.

Profitability of a company can be calculated by the income which is received by thecompany from the outside sources i.e. the investments of the company due to which theidle cash reserves of the company are utilised and help the company to earn benefits overthat money in the form of interest and income

As on As on31.03.2011 31.03.2010

Interest earned on:

-Short Term Bank Deposits /ICDs 145.85 147.31(TDS ` 14.61Crore; Previous Year: 20.13 Crore)- Loans to Employees 1.03 0.78- Loan to Wholly Owned Subsidiary FHEL 0.49 -- (TDS ` 0.05 Crore; Previous Year: Nil Crore)

- Loan to IRWO (Note No.13, Schedule 11) 0.01 0.02(TDS ` NIL Crore; Previous Year: ` 0.01 Crore)Dividend from JV Company 5.30 0.30Profit on Sale of Fixed Assets 0.08 0.01Excess provision written back (Note No.26, Schedule11) 27.66 15.74Miscellaneous Income 21.64 15.78Share in Profit of Business Arrangement(Note No.17 (b), Schedule11) - 0.11

TOTAL 202.06 180.05

Thus, we can derive a relation between the interest payment and profitability of the company.While the interest payment of the company is nil over the passage of five years due to theabsence of debt i.e. the debentures as well as any type of secured and unsecured loan of thecompany. The company is free from any kind of obligation and is not supposed to pay anykind of interest to anyone.

However, the profitability of the company is excellent. The company has invested its cash invarious kinds of investment like investment in foreign ventures, joint ventures, subsidiaries aswell as foreign subsidiaries. In addition to this, the company has also invested its money y

advancing loans to its subsidiaries as well as its employees.


26/40

26

In return to the amount, this is invested by this company in either investment or any loanadvanced by the company. It receives some amount of interest which shows the profitabilityof the company. The interest received by the company has increased over time from 180.05to 202.06 crore. This means that the company is earning about 200 crore as interest being

earned by it on investments and the loans advanced by the company.Thus, after analysing it we can say that the company is earning a large amount from theinterest which is earned by it. This means that the company is having a strong profitability.Whereas, the company is not liable to make any kind of interest payment as the company donot have any debt on its part. Therefore, the companys financial structure is very strong asthe company has no interest payment and the profitability is adequate and well maintained upto 200 crore is being received as income from the money being invested by it in beneficialventures and lan and advances of the company as well.

Analyse the Inventory position of the company in last five years:

INVENTORIES:

The company being a service company does not have stock in trade. The inventory isrepresented by stores and spares kept by the company for maintenance of its own equipments.

However, the stores and spares which are maintained by the company undergo the followingprocedure:

(a) The inventory of the company consisting of stores and spare parts has been physicallyverified by the management on test check basis. Even, the frequency of verification isreasonable.

(b) The procedures of physical verification of inventories followed by the management aregenerally reasonable and adequate in relation to the size of the company and the nature of itsbusiness.(c) The company is maintaining proper records of inventory. However, the discrepancies

noticed on verification between the physical stocks and the book records are not material.

As per the rules of the company the Stores and spare parts are valued at cost on weightedaverage basis. Provision for obsolescence is made, whenever required.

Inventories: (in crore)

As at As at31.03.2011 31.03.2010

(As taken, valued & certified by the Management)Stores & Spare Parts (At Cost) (Note No.20, Schedule 11) 6.95 7.25


27/40

27

Less: Provision for Obsolete Stores 0.69 6.26 0.26 6.996.26 6.99

Thus, this shows that the inventory position of the company is adequate. As the company

deals in services, there is no possibility of any kind of inventory in the company. However,the stores and spares which are held by the company are considered as the inventory beingheld by the company.The stores and spares as the inventory of the company are kept with the company with utmostcare and cautiousness. The inventory undergoes proper test and verifications from time totime. However, the procedures for the verifications are very proper and up to date oradvanced.The inventory stock has also been decreased over time from 6.99 in 2010 to 6.26 in 2011.This shows that the company has reduced its stock of the spares and stores with the passageof time and is having quite efficient as well as effective inventory position over the passageof time.

Make a comparative study on the basis of above parameters with thecompany in the same industry:

The major competitor of Concor is ABC India Limited. However, there are a largenumber of competitors of Concor like Agarwal Industrial Corporation Limited, CoastalRoadways Limited, All Cargo Logistics Limited and not to mention the ABC IndiaLimited.ABC India Limited is an India- based company that offers complete logistics solutions.The companys tumkey projects include custom handling and transportation. It ha s a

network of more than 150 locations all over India and the associated across the world.ABC India Limited has its own fleet of trucks, hydraulic trailers and prime movers thathave a capacity to carry a single package of up to 800 megatons. ABC India Limited alsoearns more than 15000 cubic meters of storage space and advanced equipment tofacilitate loading and unloading of customers cargo. The company has its own customhouse agent license to facilitate the customs clearance of imported or exported cargo.

A comparative study of ABC Limited with Container Corporation of India:

Company Currentprice

Change(%change)

EPS PE

Concor 889.60 .90(.10%) 13.20 67.39ABC India

Ltd158.55 16.15(11.34%) 15.53 10.21

Thus, we can analyse that the current price of our company is far much more ascompared to the current price of the share of ABC India Limited. The current price of our company is Rs. 889.60 and the current price of ABC India Ltd. is 158.55. The share


28/40

28

prices of the company are very stable with a little change of .10% over time. However,the changes and fluctuations in the share prices of the ABC India limited are very muchintense to about 11.34% over the time.The EPS provided by our company is 13.20 which are relatively less as compared to the

EPS of the competitor company i.e. 15.53. This means that the earning per share of thecompany is less than the other company i.e. the company is providing its shareholderswith fewer earnings as compared to the competitor. In spite of this, the PE of ourcompany i.e. the price earnings ratio of the company is very much better than providedby the competitor company. The company has PE of 67.39 which is far much better than10.21 which is provided by the ABC India Limited.Therefore, we can conclude that in stock prices comparison, our company is far betterthan its nearest competitor. The company excels its competitor in current price as well asis less fluctuating than the other company. It has less EPS than its competitor but it hasfar better PE of 67.39 as comparison to its competitor in the same industry i.e. ABCIndia Limited.

Comparison of key ratios of the company:

Ratios Concor ABC India Ltd.Debt-Equity Ratio 0 1.6

EPS 67.42 10Current ratio 5.21 1.5Inventory 6.26 623.3Long term debt equity ratio 0 1.0

Thus, we can analyse that the when we compared the key ratios of our company with theother company we can draw the following observations:

1. On the basis of Debt Equity Ratio, our company is not having any debt over the past

five years which means that the company is not having any debt equity ratio or the debtequity ratio of the company is nil. Whereas as compared to the other company, it ishaving a debt equity ratio of 1.6 which means that the debt of the company is far muchas compared to the equity of the company and is a risky company to deal with.

2. According to the Current ratio, the liquidity of the company is 5 times its currentliabilities. However, the current ratio of the other company is 1.5 which means that ourcompany is more liquid and able to pay its current liabilities as compared to the other.


29/40

29

3. Our company is having better EPS than the other company and is better to satisfy theshareholders than the other company.

4. The competitor is having large amount of inventory whereas the inventory of our

country is far less which ensures far better liquidity as compared to the other company.

5. At last, the company is not having any long term debt whereas the long term debt of theother company is 1.

Thus, on analysing our company with the other company of the same industry we canconclude that our company is having better liquidity and inventory position than the othercompany. The current ratio of the company is far more and the inventory with the company isfar less than the other company.

The company is not having any long term debt or loans whereas the other company is havingthe debt equity ratio of 1.6 and long term debt ratio of 1 which means that the other companyis more risky as compared to our company.

If we talk about the share prices of the company, the company is having more EPS, PE and isfar much stable than the other company.

Thus, in short we can say that as compared to the ABC India Limited Concor is better and

more financially secured and strong and has a better financial structure than the comparedcompany.


30/40

30

Bibliography

The Reference materials used to prepare this report are as follows:

http://www.concorindia.com/index.asp

http://www.indiainfoline.com/Markets/Company/Research/Daily-Share-

Prices/Container-Corporation-Of-India-Ltd/531344

http://www.wikipedia.com

http://www.bseindia.com

http://economictimes.indiatimes.com/container-corporation-of-india-

ltd/quotecompare/companyid-4764.cms

Annual report of the company
http://www.concorindia.com/index.asphttp://www.concorindia.com/index.asphttp://www.indiainfoline.com/Markets/Company/Research/Daily-Share-Prices/Container-Corporation-Of-India-Ltd/531344http://www.indiainfoline.com/Markets/Company/Research/Daily-Share-Prices/Container-Corporation-Of-India-Ltd/531344http://www.indiainfoline.com/Markets/Company/Research/Daily-Share-Prices/Container-Corporation-Of-India-Ltd/531344http://www.wikipedia.com/http://www.wikipedia.com/http://www.bseindia.com/http://www.bseindia.com/http://economictimes.indiatimes.com/container-corporation-of-india-ltd/quotecompare/companyid-4764.cmshttp://economictimes.indiatimes.com/container-corporation-of-india-ltd/quotecompare/companyid-4764.cmshttp://economictimes.indiatimes.com/container-corporation-of-india-ltd/quotecompare/companyid-4764.cmshttp://economictimes.indiatimes.com/container-corporation-of-india-ltd/quotecompare/companyid-4764.cmshttp://economictimes.indiatimes.com/container-corporation-of-india-ltd/quotecompare/companyid-4764.cmshttp://www.bseindia.com/http://www.wikipedia.com/http://www.indiainfoline.com/Markets/Company/Research/Daily-Share-Prices/Container-Corporation-Of-India-Ltd/531344http://www.indiainfoline.com/Markets/Company/Research/Daily-Share-Prices/Container-Corporation-Of-India-Ltd/531344http://www.concorindia.com/index.asp


31/40

31

Glossary

Payout Ratio: The proportion of earnings available to common stockholders, which is paidout as DIVIDENDS.

Price-earnings Ratio: The market price of a share divided by EARNINGS PER SHARE.This number, also known as the 'Multiple', or 'Multiplier', is often used by investors andanalysts to determine the upward potential of a share by comparing its multiplier to that of theparticular industry as a whole. The multiplicand can be the expected earnings per share.

Public Issue: An invitation to the public at large to subscribe to shares or other securities of acompany. A public issue entails numerous tasks such as organizing the syndicate of UNDERWRITERS, brokers and others, preparation of the PROSPECTUS and fulfilment of several formalities including, notably, prior approval from SEBI and the Registrar of

Companies. P/E ratio can be as high as the anticipated growth rate of a company.

Balance Sheet A statement of the financial position of an enterprise, as on a certain date, andin a certain format showing the type and amounts of the various ASSETS owned,LIABILITIES owed, and shareholder's funds.

Beta : A measure of the volatility of a stock in relation to the market. More specifically, it isthe index of SYSTEMATIC RISK, indicating the sensitivity of return on a security or aPORTFOLIO to return from the market. It is the slope of the regression line, known as theCHARACTERISTIC LINE, which shows the relationship of an ASSET with the market. For

measuring market returns, a proxy such as a broad-based index is used. Thus, if b exceeds 1,the security is more volatile than the market, and is termed an 'Aggressive Security'. Forexample, a beta of 1.3 implies that a security's return will increase by 13 percent when thereturn from the market goes up by 10 percent. An asset whose beta is less than 1 is termed a'defensive security'. Based on this, an aggressive growth strategy would be to invest in highbeta stocks when the market is poised for an upswing; similarly, a switchover to low betastocks is recommended when a downswing is imminent.

Bond A long-term debt instrument on which the issuer pays interest periodically, known as'Coupon'. Bonds are secured by COLLATERAL in the form of immovable property. While

generally, bonds have a definite MATURITY, 'Perpetual Bonds' are securities without anymaturity. In the U.S., the term DEBENTURES refers to long-term debt instruments which arenot secured by specific collateral, so as to distinguish them from bonds.

Bonus Shares The issue of shares to the shareholders of a company, by capitalizing a part of the company's reserves. The decision to issue bonus shares, or stock DIVIDEND as in theU.S., may be in response to the need to signal an affirmation to the expectations of shareholders that the prospects of the company are bright; or it may be with the motive of bringing down the share price in absolute terms, in order to ensure continuing investorinterest. Following a bonus issue, though the number of total shares increases, the


32/40

32

proportional ownership of shareholders does not change. The magnitude of a bonus issue isdetermined by taking into account certain rules, laid down for the purpose. For example, theissue can be made out of free reserves created by genuine profits or by share PREMIUMcollected in cash only. Also, the residual reserves, after the proposed capitalization, must be

at least 40 percent of the increased PAID-UP CAPITAL. These and other guidelines must besatisfied by a company that is considering a bonus issue.

Business Risk The risk of business failure, which stems from factors such as the coststructure of a venture (i.e., FIXED COST versus VARIABLE COST), intra-industrycompetition, and government policies. It is reflected in the variability of profits beforeinterest and taxes.

Blue Chip A share of a company that is financially very sound, with an impressive track record of earnings and DIVIDENDS, and which is highly regarded for its competentmanagement, quality products and/or services. Examples in India are Hindustan Lever,Gujarat Ambuja Cements, and Reckitt & Colman among others.

Contingent Liabilities The liabilities that may arise as a result of some future event which,though possible, is deemed unlikely; for example, a court judgement on a pending lawsuitmay impose a financial payment on a company.

Corporate Governance The manner in which a company is managed. The term, CorporateGovernance connotes the importance of responsibility and accountability of a company'smanagement to its shareholders and other stakeholders, viz., employees, suppliers, customersand the local community. Hence it calls for ethics, morals and good practices in running acompany. Good corporate governance would be reflected in generally good performance,clean business practices, improved disclosure and sound policies relating to capitalexpenditure, financing and dividend payment, which will enhance shareholders' wealth.

Cost of Capital The weighted average cost for long-term funds raised by a company fromdifferent sources such as term loans, DEBENTURES/BONDS, PREFERENCE SHARES,EQUITY SHARES and retained earnings.

Credit Rating: The exercise of assessing the credit record, integrity and capability of aprospective borrower to meet debt obligations. Credit rating relates to companies, individualsand even countries. In the case of a company's debt instrument, such formal evaluation withthe aid of quantitative and qualitative criteria, culminates in the assignment of a letter ratingto the security. The instrument could be a DEBENTURE, FIXED DEPOSIT ORCOMMERCIAL PAPER. The rating represents in rating agency's opinion at that time on therelative safety of timely payment of interest and principal associated with the particular debtobligation. This opinion rests on the agency's assessment of the willingness and capability of the issuer to meet the debt obligations. The methodology is to examine key factors like thebusiness, the management, regulatory environment, competition and fundamental aspectsincluding the financial position. A high credit rating can help in reducing the interest cost and

also facilitate placement of the debt security. The rating agencies in India are Credit Ratingand Information Services of India Limited (CRISIL), ICRA, and Credit Analysis and


33/40

33

Research (CARE).

A recent development in India is the rating of fixed deposits of banks, STRUCTUREDDEBT OBLIGATIONS and securitized debts. Moreover, performance ratings can now be

obtained by real estate developers and LPG bottlers. It is expected that ratings will soon beextended to chit funds and MUTUAL FUNDS, Besides, a general credit rating service notlinked to any debt issue may be availed of by a company. This service is already offered byIndian rating firms. CIRSIL, for example, calls it Credit Assessment. This rating can be usedin negotiations with new bankers, for performance guarantees, etc. International ratingagencies also undertake sovereign rating, i.e. of countries.

Credit appraisal also covers individuals. This type of information is useful to consumer creditfirms

Current Assets: The assets which are expected to be converted into cash or consumed duringthe 'Operating Cycle' of a business. The operating cycle is the time taken for the sequence of events from the purchase of raw materials to the collection of cash from customers for goodssold. Hence, it is also known as the 'Cash Conversion Cycle'. However, if raw materials arebought on credit, then the cash conversion cycle is shorter than the operating cycle by theperiod of credit available. Examples of current assets are cash, short-term investmentsparticularly MONEY MARKET securities, raw materials, work-in-process, finished goods,and ACCOUNTS RECEIVABLE.

Current Liabilities: The claims against a company that will become due within a year.These are mainly LIABILITIES on account of purchase of materials or services rendered tothe firm. Examples include accounts and PROMISSORY NOTES payable, as well as taxesand loan repayments falling due within the year. Current Ratio This ratio is a measure of acompany's ability to pay its short-term debts as they become due. It is computed from aBALANCE SHEET by dividing CURRENT ASSETS by CURRENT LIABILITIES. InIndia, the general norms for this liquidity ratio is 1.33

Debenture A debt security issued by companies, having a certain MATURITY and bearing astated COUPON RATE. Debentures may be unsecured or secured by ASSETS such as land

and building of the issuing company. Debenture holders have a prior claim on the earnings(coupon) and ASSETS in the event of liquidation, as compared to PREFERENCE and equityshareholder`

Debt-Equity Ratio This ratio is used to analyze FINANCIAL LEVERAGE. It is a structuralratio that gauges the level of debt financing, and is worked out by dividing total debt, short-term and long-term, by NET WORTH. The denominator would comprise total equity of common stockholders and PREFERENCE capital.

Depreciation An accounting process by which the cost of a FIXED ASSET, such as a

building or machinery, is allocated as a periodic expense, spread over the depreciable life of the ASSET. The term also means the amount of expense determined by such a process.


34/40

34

Sometimes, it is called AMORTIZATION when the ASSET is intangible or 'depletion' whenthe asset is a natural resource, such as minerals. There are different methods of depreciationsuch as the Straight Line Method and the Written Down Value (WDV) method.

Dividend The payment made by a company to its shareholders. Legal and financialconsiderations have a bearing on the level of dividend to be paid. For instance, dividends maybe paid out of profits alone; so also, a growing company needs funds to finance its expansionand hence may pay only a modest dividend, in order to conserve resources.

Earnings Per Share (EPS) The net profits of a company expressed on a per (EQUITY)SHARE basis. It is arrived at by dividing the figure of profits after taxes and DIVIDENDSpaid on PREFERENCE SHARES, if any, by the number of equity shares outstanding.Therefore, it does not reveal the potential impact of dilution in earnings on account of securities such as convertibles or warrants that may be outstanding. Moreover, animprovement in EPS does not necessarily indicate a more productive use of the total amountof funds available with a firm.

Economic Value Added (EVA) A tool for evaluating and selecting stocks for investment,and also used as a measure of managerial performance. An American consultancy firm, SternStewart is credited with the development of this tool in the late eighties. It is calculated bysubtracting the total cost of capital from the after-tax operating profits of a company.

EVA = After-tax Operating Profits Total cost of capital

Equity Share A security that represents ownership interest in a company. It is issued to thosewho have contributed capital in setting up an enterprise. Apart from a PUBLIC ISSUE,equity shares may originate through an issue of BONUS SHARES, CONVERTIBLEsecurities, WARRANTS, GDRS, etc. An alternative term that is sometimes used is'COMMON STOCK' or simply, 'STOCK'.

Forfeiture It means the deprivation of shares held by an investor, usually as a consequenceof default in paying money, called upon allotment, to the company. As a result of a forfeiture,the investor ceases to be a shareholder insofar as the forfeited shares are concerned; however,he remains liable for the sum due.

Index Fund This is a MUTUAL FUND whose PORTFOLIO mirrors a market index. Theinvestments of such a fund are in the same stocks as those comprising the selected marketindex and in the same proportion as their weights in the index. Setting up the portfolio iscalled 'Indexing'. This innovation in the U.S. sprung up as a result of research findings thatthe Standard & Poor's 500-stock index (a proxy for a market portfolio) had outperformedmany INSTITUTIONAL INVESTORS during 1960s and 1970s. Since the portfolio of anindex fund replicates a certain index, the fund saves substantially on research andadministrative expenses. The Index Equity Fund launched by the Unit Trust of India in May1997 is based on stocks figuring in the SENSITIVE INDEX and the NSE-50 of the

NATIONAL STOCK EXCHANGE.


35/40

35

Listing: The grant of approval for dealings in a certain security (e.g., share orDEBENTURE) at a stock exchange. Consequently, companies must pay their respectiveexchanges, an annual listing fee.

Mutual Fund: An organization that mobilizes the surpluses of savers and invests the samein different securities. Thus, an individual who owns a share in a mutual fund has aproportionate claim on the PORTFOLIO of investment vehicles held by the fund. In financialnomenclature, the term mutual fund refers to the 'Open-end' type of Investment Companywhich has no limit on the number of shares that it can issue. The Unit Trust of India's, Units1964 scheme is a prime example. However, in common parlance, the term mutual fund refersto both the OPEN-END and CLOSED-END types of investment companies.

Managing an open-end fund however, involves some distinct challenges. The portfoliomanager must estimate the maximum possible demand for REDEMPTION and accordingly

retain some liquid ASSETS. Moreover, daily calculation of the NAV requires a sophisticatedinformation system.

The SUBJECT-WISE LISTING mentions the different types of mutual funds that areexplained elsewhere in this book which is linked to the PAID-UP CAPITAL.

National Stock Exchange (NSE) It is a nationwide screen-based trading network usingcomputers, satellite link and electronic media that facilitate transactions in securities byinvestors across India.

Open-end Fund A mutual fund which continuously issues new shares or units to meetinvestors' demand. Simultaneously, it redeems shares for thse who want to sell. Hence, thereis no limit on the number of shares that can be issued, and in fact, the number of sharesoutstanding keeps changing because of the continuous influx and exit of investors. Due to theconstant changes in the aggregate portfolio value and the number of shares, the NET ASSETVALUE keeps changing. The purchase and sale prices for redeeming or selling shares are setat or around the net asset value.

Synergy A notion of disproportionately higher financial benefits expected by combiningcomplementary businesses, which would exceed the performances of the entities achieved

separately. For example, the MERGER some years ago of the two electrical equipment giantsin Europe, namely ASEA and Brown Boveri with individual strengths in marketing and R&Drespectively, was effected to reap the benefit of synergy.

Systematic Risk The portion of risk or variability that is caused by factors, which affect thereturns on all securities. Major political, economic and social phenomena, for instance, wouldaffect all stocks, which imply that systematic risk cannot be eliminated byDIVERSIFICATION. Therefore, it is also termed 'Undiversifiable RISK'. However, bydiversifying internationally, an investor can reduce the level of systematic risk of aPORTFOLIO; the lack of coincidence between economic cycles of different countries helpsto achieve this. Systematic risk of a financial ASSET is indicated by the BETA coefficient. It

shows the sensitivity of return on a security or a portfolio to return from the market.


36/40

36

Unsystematic Risk A risk that is unique to a firm or industry. The returns on an ASSET canbe affected by occurrences such as a labour strike, changes in consumer preferences, or evenwrong management decisions. The adverse impact of any such occurrence would be confinedto one or a few firms. Therefore, these unsystematic variations occur independently of broad

price movements in the market. By having a diversified PORTFOLIO, it is possible toneutralize unsystematic risk, which is also therefore termed, 'Diversifiable Risk'. Generally,firms which are less vulnerable to macroeconomic changes, as e.g., those manufacturingconsumer non-durables (e.g., Hindustan Lever and Colgate) would have less SYSTEMATICRISK and a higher degree of unsystematic risk.

Capital employed: The value of all resources available to the company, typically comprisingshare capital, retained profits and reserves, long-term loans and deferred taxation. Viewedfrom the other side of the balance sheet, capital employed comprises fixed assets, investmentsand the net investment in working capital (current assets less current liabilities). In other

words: the total long-term funds invested in or lent to the business and used by it in carryingout its operations.

Cash flow: The movement of cash in and out of a business from day-to-day direct tradingand other non-trading or indirect effects, such as capital expenditure, tax and dividendpayments.

Initial public offering : An Initial Public Offering (IPO being the Stock Exchange andcorporate acronym) is the first sale of privately owned equity (stock or shares) in a companyvia the issue of shares to the public and other investing institutions. In other words an IPO isthe first sale of stock by a private company to the public. IPOs typically involve small, young

companies raising capital to finance growth. For investors IPO's can risky as it is difficult topredict the value of the stock (shares) when they open for trading. An IPO is effectively'going public' or 'taking a co return on investment.

Another fundamental financial and business performance measure.This term means differentthings to different people (often depending on perspective and what is actually being judged)so it's important to clarify understanding if interpretation has serious implications. Manybusiness managers and owners use the term in a general sense as a means of assessing themerit of an investment or business decision. 'Return' generally means profit before tax, butclarify this with the person using the term - profit depends on various circumstances, not leastthe accounting conventions used in the business. In this sense most CEO's and businessowners regard ROI as the ultimate measure of any business or any business proposition, afterall it's what most business is aimed at producing - maximum return on investment, otheriseyou might as well put your money in a bank savings account.

Return On Investment : Profits derived as a proportion of and directly attributable to cost or'book value' of an asset, liability or activity, net of depreciation.

In simple terms this the profit made from an investment . The 'investment' could be thevalue of a whole business (in which case the value is generally regarded as the company'stotal assets minus intangible assets, such as goodwill, trademarks, etc and liabilities, such asdebt. N.B. A company's book value might be higher or lower than its market value); or theinvestment could relate to a part of a business, a new product, a new factory, a new piece of plant, or any activity or asset with a cost attached to it.


37/40

37

The main point is that the term seeks to define the profit made from a business investment orbusiness decision. Bear in mind that costs and profits can be ongoing and accumulating forseveral years, which needs to be taken into account when arriving at the correct figures.

Working capital: Current assets less current liabilities, representing the required investment,

continually circulating, to finance stock, debtors, and work in progress.


38/40

38

Annexure

FINANCIAL RESULTS(` in crores)

Particulars 2010-11 2009-10Income from operations 3828.12 3705.68Profit before depreciation & tax (PBDT) 1203.50 1141.69Profit before tax (PBT) 1058.27 1006.59Provision for tax 179.77 219.92Profit after tax (PAT) 878.50 786.67Profit available for appropriations 875.95 786.69APPROPRIATIONS:Interim Dividend 97.49 77.99Proposed Final Dividend 103.99 103.99Corporate tax on dividend 33.06 30.52Transfer to general reserves 87.59 78.67Balance carried to Balance Sheet 553.82 495.52Earnings per share (Rs.) 67.39 60.52


39/40

39

BALANCE SHEET AS AT 31ST MARCH 2011

(in Crore)SCHEDULE AS AT AS AT

31.03.2011 31.03.2010SOURCES OF FUNDSSHAREHOLDERS' FUNDSShare Capital 129.98 129.98Reserves & Surplus 4,847.83 4,977.81 4,206.42 4,336.40DEFERRED TAX LIABILITY 228.56 210.90(NET OF DEFERRED TAX ASSET)TOTAL 5,206.37 4,547.30APPLICATION OF FUNDSFIXED ASSETSGross Block 3,286.15 2,988.86Less: Depreciation/Amortisation 959.13 825.00Net Block 2,327.02 2,163.86Add: Capital Works in progress(Including advances) 319.14 2,646.16 206.43 2,370.29INVESTMENTS 243.96 240.54CURRENT ASSETS,LOANS & ADVANCES(A) Current Assets 2,392.69 2,092.54

(B) Loans & Advances 474.27 2,866.96 479.84 2,572.38LESS: CURRENT LIABILITIES& PROVISIONS(A) Current Liabilities 396.64 489.94(B) Provisions 154.07 550.71 145.97 635.91NET CURRENT ASSETS 2,316.25 1,936.47Significant Accounting PoliciesNotes on AccountsTOTAL 5,206.37 4,547.30


40/40

PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31ST MARCH 2011

( In Crore)SCHEDULE YEAR ENDED YEAR ENDED

31.03.2011 31.03.2010INCOMEIncome from Operations 3,828.12 3,705.68Other income 202.06 180.05TOTAL 4,030.18 3,885.73

EXPENDITURETerminal and Other Service Charges 2,612.42 2,517.40Employees Remuneration & Benefits 87.43 83.86Administrative & Other Expenses 126.83 142.78Depreciation/Amortisation 145.23 135.10TOTAL 2,971.91 2,879.14PROFIT BEFORE TAX 1,058.27 1,006.59LESS: PROVISION FOR TAXCurrent Tax 162.11 202.78Deferred Tax 17.66 17.14PROFIT AFTER TAX 878.50 786.67Add/(Less): Prior period adjustments (Net) 0.01 0.49Add/(Less): Tax adjustmentsfor earlier years (Net) (2.56) (0.47)

NET PROFIT 875.95 786.69

concor term paper

Documents