looking statements that are based on management„s current ... presentation.pdffull truck load...

2

• Certain statements contained in this document may be statements of future expectations and other forward

looking statements that are based on management„s current view and assumptions and involve known and

unknown risks and uncertainties that could cause actual results performance or events to differ materially

from those expressed or implied in such statements.

•The information contained in this presentation has not been independently verified and no representation or

warranty expressed or implied is made as to and no reliance should be placed on the fairness accuracy

completeness or correctness of this information or opinions contained herein.

•This presentation may contain certain forward looking statements within the meaning of applicable securities

law and regulations. These statements include descriptions regarding the intent belief or current expectations

of the Company or its directors and officers with respect to the results of operations and financial condition of

the Company. Such forward-looking statements are not guarantees of future performance and involve risks

and uncertainties and actual results may differ from those in such forward-looking statements as a result of

various factors and assumptions which the Company believes to be reasonable in light of its operating

experience in recent years. Many factors could cause the actual results performances or achievements of the

Company to be materially different from any future results performances or achievements. Significant factors

that could make a difference to the Company‟s operations include domestic and international economic

conditions changes in government regulations tax regime and other statutes

• None of VRL logistics ltd or any of its affiliates advisors or representatives shall have any liability whatsoever

(in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or

otherwise arising in connection with this document.

• This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither

it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment

whatsoever.

4

Source : Crisil research

VRL is predominantly a parcel delivery service provider (66.29% of total revenues) with pan-India last mile connectivity

through a fleet of 3649 owned goods transport vehicles ( Mar-15)

5

VRL can leverage the benefits of being an LFO


6

VRL is looking to capitalise on the growth prospects of the industry


8

COMPANY TIMELINE

• Dr. Vijay

Sankeshwar

started goods

transportation

business through a

proprietary firm

• Incorporated as

Vijayanand

Roadlines Private

Limited

•Commencement

of courier service

business in

Karnataka

• Became a

deemed public

limited company

•Name changed to

VRL Logistics

Limited

•Obtained

ISO9001:2000

certification

•Investment

by NSR

• Turnover

crosses

INR10bn

•Commencement

of passenger

transportation

business

•Foray into car

carrying and

liquid

transportation

• Listed in Limca Book

of Records 2013 as

the single largest fleet

owner of commercial

vehicles in the private

sector in India

•Listing on

NSE and BSE

stock

exchanges

Largest fleet owner of commercial vehicles in private sector

9

Passenger Transportation

Reputed brand name

„Vijayanand travels

General Parcel

Delivery services

–core business

59.34%

97.10%

1.33%

0.38%

Business Segments

Transportation

Goods Transportation

Main business vertical

Priority Parcel

Door to door delivery

in a time bound

manner

19.84% 77.23%

Door to door services

catering to large

customers

6.95%

Less than truck

load (LTL)

66.29%

Full truck load (FTL) Car

Carrier

Liquid

Transport

1.95%8.47% 0.14%

Courier

For time

sensitive

documents and

parcels

Wind Power generation

42.5 MW wind farm

Air charter operations

0.7%

2 aircraft

Parcel delivery (66.29%) is the key business segment

Note: Approximate revenue contribution to the revenue from operations as of FY15

Others(sale of scrap)

1.32%

0.9%

0.38%

10

Strong operations with largest fleet and

market leading operations

Hub-and-Spoke model to aggregate small parcels and

maximize capacity utilization of its vehicles

One of the largest widespread pan-Indian transportation

network in 28 states and 4 union territories.

Operational infrastructure compromises of 652 branches

( 20 owned) & 325 agencies in 977 locations

Strategically placed 48 (7 owned).transshipment hubs

71 new branches added in FY 15

Focus on growth in the North and the Eastern parts of the

country

Established brand since four decades

Market leader in India

Critical infrastructure facilities comprising of branches

agencies godowns and transhipment hubs enables us to

cater diversified customer base spread across different

geographical locations

Pan Indian network with 977 locations

11

Goods transportation fleet includes :

3649 owned vehicles.

1245(34%) vehicles less than 5 years old.

2372 (65%) of vehicles are debt free

1427 (39%) of vehicles book value is Re 1

Average age of goods fleet is 8.2 years

Wide range of vehicles with carrying capacity

from 1 ton to 32 tons

Passenger transportation fleet includes

375 owned vehicles

339 (90%) vehicles are less than 5 years old

61(16%) of vehicles are debt free

Average age of Passenger vehicles is 3.7 years

Significance of own vehicles

Enables us to significantly reduce hiring and

operational costs

Enables us cover a large no of routes reduce

dependence on third party hired vehicles

Enables better control over time bound delivery

enhancing service quality and ensuring reliable

quality services

Passenger transportation vehicles enables us to

provide safe on time comfortable travel

experience

Total of 4024 owned vehicles provides greater leverage in terms of pricing and service

NOTE:

(1) Small vehicles are defined as vehicles with carrying capacity up to 2500 kilograms.

(2) Light commercial vehicles are defined as vehicles with carrying capacity between

2500 kilograms and 7500 kilograms.

(3) Heavy commercial vehicles are defined as vehicles with carrying capacity of more

than 7500 kilograms.

(4) Used for transportation of automobiles.

(5) Used for transportation of liquid.

(6) Cranes are predominantly used for internal operations.

As of Small

Vehicle(1)

Light Commercial Vehicle(2)

Heavy Commercial Vehicles(3)

Car Carrier

(4)

Tanker(5)

Cranes(6)

Total Vehicles Owned

BUSESTOTAL FLEET

31-Mar-10 180 842 1480 0 7 10 2519 196 2715

31-Mar-11 171 892 1575 0 7 10 2655 296 2951

31-Mar-12 139 883 1916 102 27 12 3079 423 3502

31-Mar-13 122 883 1941 102 27 13 3088 460 3548

31-Mar-14 122 882 2210 102 23 13 3352 477 3829

31-Mar-15 120 975 2423 102 16 13 3649 375 4024

12

Dedicated in-house

goods vehicle body

design facilities

In–house goods vehicle body designing facility at Hubballi

• Technology to fabricate vehicles with lighter and longer bodies thereby reducing overall weight

of the vehicle and ensure higher payloads without violating permissible payload limits

• Higher length chassis sourced from manufacturers on specifications provided by company

resulting in additional space

• Concept of Charged weight and Actual weight based on nature of consignments booked

resulting in higher payloads

Fuel procurement

FUEL SOURCING

• Fuel cost form 26.67% of total income in FY 15

• Operate two own consumer diesel pumps located at Hubballi and Chitradurga in the State of

Karnataka to ensure quality fuel supply and reduced fuel costs

• Our own pumps contribute 25% of our total procurement of fuel, Procurement from IOC is

54%, Procurement from HP is 19% and Procurement from BP is 3%.

• Tie up with nearly 100 designated fuel pump retailers across country for re fuelling during

transits and also availing fuel at discounted price

• Significant savings by means of redemption points availed by Fuel companies

• Employ staff in such locations to ensure enroute compliance of vehicles

• Payment by fleet cards credit cards enables discount s and extended credit period

Spares procurement

• Ashok Leyland & VE commercial (Volvo) have established their own spare parts yard in our

premises resulting in procurement of spare parts at factory rates and saving on carrying cost .

• Procurement of other spare parts & consumables directly from manufacturers

• Arrangements with Michelin India Tyres Private Limited and CEAT Limited for procurement of

tyres at competitive rates

• Maintain records of comparative rates for our spare parts and consumables in our ERP system

to maintain control over spare parts cost

Note: 1-data computed for the month of March 2015

13

In-house

maintenance

facilities

Fleet servicing and Maintenance

• In-house servicing and Maintenance at workshop facility in Hubballi and satellite workshops in

14 other locations across India to minimize on road repair expense.

• Periodic preventive and remedial maintenance

• Ensure optimal efficiency levels by minimizing vehicle time in the workshop through time-and-

motion studies as part of our maintenance procedures and efficiency enhancement studies

Re-engineering department

• To design and reengineer unique solutions for vehicle component to reduce operating costs and

enhance performance

• Allocation of unique laser marked identification to prevent substitution of tyres .

In house software

with own servers and

dedicated IT team

Central information technology network through ERP system facilitating.

• In-house E.R.P for Accounts Inventory and Maintenance

• Real-time monitoring of operations and tracking of consignments

• Integrated GPS tracking systems

• Customized software alerts to track vehicle maintenance and optimize load planning

• SMS based alert service to customers about consignment/ticket status

• Customized in-house software applications to track service and spare replacement.

• Time series data MIS available to management for detailed analysis to improve efficiency and

decision making

• Bus ticketing is implemented through a centralized online system that tracks passenger

occupancy and determines anticipated demand and pricing of tickets

• We have been awarded the New Era Award for Technology Innovation and Quality by Otherways

Management Association France in 2010 and the Technology Best Practices Adopter Award at

Apollo-CV Awards 2010.

In-house capabilities help retain competitive edge

14

Recruiting Drivers as full time employees with all statutory benefits

Large pool of experienced and trained drivers

Driver performance is evaluated and incentives provided is based on measures of

– safety record

– time taken for journeys undertaken

– distances covered

– fuel consumption

– useful life of tyres

Drivers are provided with comfortable equipment effective training direct

communication channels with senior management competitive salaries and

benefits

Drivers are provided with group insurance facility to cover life risks during

employment.

In addition to a competitive compensation structure we also focus on training and

development initiatives for drivers and have developed a training facility at Hubballi

which conducts training for drivers.

Well furnished rest houses provided at Hubballi facility

Drivers also receive cash awards for providing superior service and developing

satisfactory safety records.

DRIVERS

Strategy of recruiting drivers as full time employees with a defined salary structure associated benefits and attractive

incentive schemes

15

Rubber

Plastics

Metal and metal

products

Wood

Food products

Automotive parts &

machinery

Textiles &

Readymade garments

Furniture

Pharmaceutical

FMCG

Appliances

Diversified customer base across a wide range of industries

VRL‟s largest customer and top 10 customers

contributed only 1.1% and 6.3% of revenues from the

goods transportation business in 2014-15 respectively

Primarily small and medium enterprises distributors and

traders represent a significant majority of the “paid” and

“topay”customer group

Average bad debts in the last 5 years have not exceeded

INR 1 m in a year

Trade receivables for FY15 at 20 days of total revenue;

improving y-o-y from 28 days in FY11

High share of “Paid” and “To-pay” customers

FY15 total revenue from goods transportation: INR 12.9bn

Diverse customer base has allowed the Company to historically pass-on significant portion of increases in operating

costs

57.4%

11.6%

17.3%

13.7%

To -pay customers

Paid Customers

Ongoing Accounts

Others

Paper

YEAR NO OF VEHICLES TOTAL TURNOVER YEAR NO OF VEHICLES TOTAL TURNOVER

INR in Mn INR in Mn

1983-84 8 3 1999-00 945 934

1984-85 11 4 2000-01 1022 1207

1985-86 15 7 2001-02 1121 1465

1986-87 24 14 2002-03 1202 1683

1987-88 45 20 2003-04 1255 2042

1988-89 81 29 2004-05 1683 2774

1989-90 117 41 2005-06 1891 3570

1990-91 147 71 2006-07 2426 4430

1991-92 215 106 2007-08 2697 5470

1992-93 248 138 2008-09 2668 6507

1993-94 292 176 2009-10 2730 7146

1994-95 398 239 2010-11 2978 8929

1995-96 525 311 2011-12 3528 11353

1996-97 596 419 2012-13 3590 13353

1997-98 621 508 2013-14 3874 15038

1998-99 792 646 2014-15 4084 16789

16

Track record of growth: The Company has demonstrated a consistent track record of growth since inception as is evident from the table.We are well poised to accelerate our growth once the opportunities present by way of GST roll out as well as the ongoing gradual shift of business from the unorganized sector to the organized players such as VRL.

17

Dr. Vijay Sankeshwar Chairman and Managing Director

Actively involved in day-to-day affairs, has about four decades of experience in the

transport industry

Former Member of Parliament in the 11th 12th and 13th Lok Sabha

Recipient of awards - the „Udyog Ratna‟ by Institute of Economic Studies New Delhi in

1994

„Transport Personality of the year‟ (CEAT Indian Road Transportation Awards 2012)

Mr. Anand Sankeshwar Managing Director

Actively involved in day-to-day affairs

Recipient of awards - „Youth Icon‟ in 2004 by Annual Business Communicators of

India „Best 2nd Generation Entrepreneur‟ byTiE Global USA in 2010

Experienced and motivated management team

18

Senior management Mr. V V Karamadi

National Head (Operations)

Has been associated with VRL since Oct 1995

Mr. S G Patil

Vice President (Human Resource Development)Holds a bachelors‟ degree in law and a post graduate

degree in political science from Karnatak University

Associated with VRL since Jun 2005

Mr. Prabhu A Salageri

Vice President (Travels)Holds a post graduate degree in Commerce

Associated with VRL since Mar 1994

Mr. D N Kulkarni

Vice President (Finance)Holds a B Com from Karnatak University

Associated with VRL since Nov 1987

Mr. Raghavendra B Malgi

Vice President (Accounts)Holds a B Com from Karnatak University and is a

qualified associate of the ICAI


Mr. S R Hatti

Vice President (Administration)He is a Master of Arts from Karnatak University

Associated with VRL since Nov 2004

Mr. K N Umesh

Chief Operating OfficerWas re-appointed as the Chief Operating Officer in Jun 2012


Mr. L Ramanand Bhatt

Chief Technical OfficerHolds a diploma in Mechanical Engineering and is a certified

member of the Institute of Engineers in tool design.

Has been associated with VRL since July 1995

Mr. Sunil Nalavadi

Chief Financial OfficerHolds a B Com from Karnatak University and is a qualified

associate of the ICAI


Mr. Aniruddha A. Phadnavis

General Manager (Finance) and Company SecretaryHolds a B Com from Karnatak University, is a qualified

associate of the ICAI, a qualified company secretary, associated

with ICSI and a certified associate of the Indian Institute of

Banking & Finance


Management team has been associated with the Company for an average of over 13 years

19

India Logistics Voice of Customer Award by Frost and

Sullivan in 2014 for achieving excellence in Logistics

India says Yes Award to AC bus journey with VRL Travels

in 2014 from HolidayIQ.com

Service Provider of the Year (luxury coaches) in 2013

from World Travel Brands for its bus operations

National record in 2013 as largest fleet of vehicles in

the private sector as of May 31 2012 from the Limca

Book of World Records

Certificate of Excellence in recognition of exemplary

growth to our Company in the India Inc 500 awards in

2011

Apollo Fleet of the Year Award in 2011 for leadership in

operation – large fleet operator to our Company from

Apollo

New Era Award for Technology Innovation and Quality

by Otherways Management Association France in 2010

Technology Best Practices Adopter Award at Apollo-CV

Awards 2010

VRL has received numerous industry awards and recognitions over the years

21

Total Revenue (INRm) & Growth rate (%)

EBITDA (INRm) & EBITDA margin (%)

892911353

1335315038

16789

FY11 FY12 FY13 FY14 FY15

Total Revenue

Growth (%)

17001968 2050 2166

2804

FY11 FY12 FY13 FY14 FY15

Ebitda

Ebitda

margin

25.0% 27.1% 17.6% 12.6% 11.6%

19.0% 17.3% 15.4% 14.4% 16.7%

EBITDA margins demonstrated resilience despite rising costs

Consistent revenue growth over the difficult years

VRL’s change in policy on tariffs since FY14 to pass through cost to customer on an immediate basis to ensure revenue growth

22

Goods transport Revenue (INRm) & Growth (%)

Bus transport Revenue (INRm) & Growth (%) Bus transport EBITDA (INRm) & EBITDA margin (%)

Goods transport EBITDA (INRm) & EBITDA margin (%)

18.4% 18.1% 14.5% 14.7% 16.2%

7204

86309923

11334

12908

FY 11 FY 12 FY 13 FY 14 FY 15

GT REV

Growth (%)

13241566

14401663

2085

FY 11 FY 12 FY 13 FY 14 FY 15

GT EBITDA

23.7% 19.8% 15.0% 14.2% 13.9%

1344

2178

28483091

3316

FY 11 FY 12 FY 13 FY 14 FY 15

BT REV

Growth (%)

263195

399

288

595

FY 11 FY 12 FY 13 FY 14 FY 15

BT EBITDA

44.2% 62.0% 30.8% 8.5% 7.3%19.6% 8.9% 14.0% 9.3% 17.9%

Margin(%)

Margin(%)

We have been able to pass cost increases to a large extent in FY15 thereby stemming margin compression

23

Leverage

metrics

Return

metrics

2.63.1

2.5 2.4

1.5

3.53

3.3 3.5

4.8

FY 11 FY 12 FY 13 FY 14 FY 15

Net debt/Ebitda(x)

Ebitda/finance cost(x)

4276 5898 4853 4904 4267

Net debt

position (INRm)

15.7% 13.0%10.3% 11.1%

19.0%

43.0%47.8%

19.2% 17.5%

27.5%

FY 11 FY 12 FY 13 FY 14 FY 15

Return on average capital

employed

Return on average equity

Improving debt profile- Has been able to reduce leverage at the company to relatively comfortable levels

25

Particulars (Rs in millions) For the year ended 31 March

2015 2014 2013 2012 2011 2010

Equity and liabilities

Shareholders' funds

Share capital 855.36 855.36 1811.69 707.00 707.00 707.00

Reserves and surplus 2706.53 2208.55 1082.32 1166.15 628.50 359.19

3561.89 3063.91 2894.01 1873.15 1335.50 1066.19

Non-current liabilities

Long-term borrowings 1917.98 2528.80 2851.63 4035.11 2527.33 2151.06

Deferred tax liabilities (net) 887.52 833.64 775.99 692.47 923.00 758.54

Other long term liabilities 85.13 88.66 86.60 78.29 78.05 76.26

Long-term provisions 58.98 26.40 29.13 21.56 1.40 4.06

2949.61 3477.49 3743.35 4827.43 3529.78 2989.92

Current liabilities

Short-term borrowings 996.73 1094.25 938.42 729.03 885.72 632.37

Trade payables 44.72 93.11 50.17 55.58 25.02 53.95

Other current liabilities 1892.83 1825.12 1655.06 1760.87 1478.21 1234.00

Short-term provisions 85.29 222.94 370.80 77.24 91.10 218.29

3019.57 3235.41 3014.45 2622.72 2480.05 2138.61

Total 9531.07 9776.82 9651.81 9323.30 7345.33 6194.72

26

Rs in millions


2015 2014 2013 2012 2011 2010

Assets

Non-current assets

Fixed assets

Tangible assets 7051.46 7393.64 7100.91 6941.95 4988.10 4690.16

Intangible assets 17.10 9.72 2.01 3.75 11.68 19.23

Capital work-in-progress 90.74 140.37 140.28 100.21 402.54 115.27

Non-current investments 1.08 1.08 0.78 1.28 1.25 1.25

Long-term loans and advances 819.88 907.47 966.63 916.66 778.25 498.77

Other non-current assets 25.27 25.21 7.16 12.27 5.40 11.22

8005.53 8477.48 8217.77 7976.12 6187.22 5335.90

Current assets

Inventories 149.97 134.76 96.84 87.31 60.75 69.55

Trade receivables 901.81 799.56 853.94 785.22 688.04 495.59

Cash and bank balances 166.08 150.92 154.36 136.00 151.40 174.43

Short-term loans and advances 258.71 198.05 185.47 151.45 111.13 111.30

Other current assets 48.96 16.04 143.43 187.20 146.79 7.95

1525.53 1299.34 1434.04 1347.18 1158.11 858.82

Total 9531.07 9776.82 9651.81 9323.30 7345.33 6194.72

27

Rs in millions

Particulars (Rs in millions)For the year ended 31 March

2015 2014 2013 2012 2011 2010

Revenue

Revenue from operations 16712.01 14937.84 13254.97 11303.83 8888.02 7113.47

Other income 76.60 99.93 98.27 48.95 41.13 32.66

Total revenue 16788.61 15037.79 13353.24 11352.78 8929.15 7146.13

Expenses

Operating expenses 11793.77 10911.72 9626.49 7911.18 6033.64 4677.91

Employee benefits expense 1979.90 1744.59 1482.55 1289.19 1044.83 899.75

Finance costs 586.00 598.40 591.23 651.42 479.13 508.44

Depreciation and amortisation expense 876.60 866.16 823.37 695.98 509.34 464.22

Other expenses 209.60 215.61 193.71 184.37 150.86 157.56

Prior Period Items 0.88

Total expenses 15446.75 14336.48 12717.35 10732.14 8217.80 6707.88

Profit before exceptional item and tax 1341.86 701.31 635.89 620.64 711.35 438.25

Add: Exceptional item (refer note 9 of Annexure

5) 37.16 66.37 - - - -

Profit before tax 1379.02 767.68 635.89 620.64 711.35 438.25

Current tax (net of MAT credit) 409.69 139.91 95.34 83.95 30.25 0.71

Deferred tax* 59.35 57.64 83.52 -230.53 164.46 150.00

MAT credit entitlement pertaining to earlier

years (2.25)

Profit for the period/year 912.23 570.12 457.03 767.22 516.64 287.54

28


2015 2014 2013 2012 2011 2010

Cash flows from operating activities

Profit before tax 1379.02 767.65 635.89 620.64 711.35 438.25

Adjustments for :

Depreciation and amortisation expense 876.60 866.16 823.37 695.98 509.34 464.22

Interest expense 586.00 598.40 591.23 651.42 479.13 508.44

Interest income (2.76) (2.73) (3.22) (2.16) (2.18) (1.77)

Dividend income (0.10) (0.10) (0.29) (0.10) (0.16) (0.18)

(Profit)/loss on sale of fixed assets (net) 17.47 7.87 3.14 0.33 14.82 15.54

Advances and bad debts written off 5.72 11.80 0.09 7.53 2.42 9.13

Provision for doubtful advances and debts 2.50 4.30 0.50 2.60 7.42

Credit balance written back (5.79) (7.63) (6.11) (3.85) (1.42) (0.43)

Prior Period Items 0.88

Adjustment for exceptional item (37.16) (66.37) - - - -

Operating profit before working capital changes 2819.88 2177.55 2048.40 1970.29 1715.90 1440.62

Adjustments for :

(Increase) / decrease in trade receivables (102.25) 52.98 (73.02) (97.68) (195.05) (57.08)

(Increase) in loans and advances and other

current assets (130.97) (23.65) (184.24) (86.53) (32.73) (24.22)

(Increase) / decrease in inventories (15.21) (37.91) (9.54) (26.56) 8.79 (0.92)

Increase / (decrease) in trade payables other

liabilities and provisions 32.89 12.72 (20.61) 57.03 156.43 62.48

Cash generated from operating activities 2604.34 2181.69 1760.99 1816.55 1653.34 1420.88

Direct taxes paid (net of refunds) (286.89) (149.07) (131.19) (157.33) (185.98) (48.52)

Net cash generated from operations (A) 2317.45 2032.62 1629.80 1659.22 1467.36 1372.36

29


2015 2014 2013 2012 2011 2010

Cash flows from investing activities

Purchase of fixed assets (including capital advance) (858.91) (1093.57) (914.06) (2440.47) (1351.77) (503.87)

Proceeds from sale of fixed assets 368.15 190.61 7.44 8.89 31.61 136.38

Proceeds from advance towards sale of land - - - 16.01 -

Encashment / (placement) of fixed deposits with

bank 0.05 (10.95) 5.57 5.89 (3.13) (6.22)

Sale / (purchase) of non-current investments (0.30) 0.50 (0.03) - -

Interest received (0.02) 3.46 1.89 2.49 1.02 1.15

Dividend income received 0.10 0.10 0.29 0.10 0.16 0.18

Net cash (used in) investing activities (B) (490.63) (910.65) (898.37) (2423.13) (1306.10) (372.38)

Cash flows from financing activities

Proceeds from issue of shares (including securities

premium) - 1250.00 - - -

Proceeds from / (repayment of) public deposits (net) (25.97) (60.73) (30.88) 7.65 104.02

Proceeds from / (repayment of) unsecured loans

from/to corporates (net) - (5.50) (246.00) 250.50 1.00

Proceeds from short term borrowings (net) (97.52) 155.83 214.89 89.31 2.85 250.96

Proceeds from long term borrowings 1010.07 1192.63 931.80 3028.71 1379.37 893.92

Repayment of long term borrowings (1533.74) (1275.94) (2107.97) (1234.08) (995.94) (1671.48)

Dividend paid and tax thereon (603.77) (563.59) (304.03) (172.56) (371.41) (132.35)

Interest and processing fees paid (586.60) (601.27) (620.58) (629.69) (444.58) (505.73)

Share issue expenses - (10.49) (43.54) (21.68) -

Net cash (used in)/generated from financing

activities (C) (1811.56) (1118.31) (712.61) 761.27 (193.24) (1059.66)

30


2015 2014 2013 2012 2011 2010

Net increase / (decrease) in cash and cash

equivalents (A + B + C) 15.26 3.66 18.82 (2.64) (31.98) (59.68)

Cash and cash equivalents at the beginning of

the period /year 150.41 146.75 127.93 130.57 162.55 222.23

Cash and cash equivalents at the end of the

period / year 165.68 150.41 146.75 127.93 130.57 162.55

Cash and cash equivalents comprise:

Cash on hand 46.21 36.62 37.69 35.97 23.57 23.41

Cheques / drafts on hand/ in transit 4.18 5.70 8.73 10.12 9.85

Balances with banks

- in current accounts 117.10 107.24 82.08 75.26 91.65 128.17

- in deposit accounts (with maturity upto 3

months) 2.12 0.50 18.88 6.43 3.74 0.62

Cash in transit 0.24 1.87 2.40 1.54 1.49 0.50

Cash and cash equivalents as per note 17 to

the financial statements 165.68 150.41 146.75 127.93 130.57 162.55

0.00 0.00 0.00 0.00 0.00

Restricted Cash

Fixed deposits pledged with banks 2.12 0.50 18.88 6.43 3.74 0.62

Notes:

1] The above Cash Flow Statements have been prepared under the 'Indirect Method' as set out in Accounting Standard 3 "Cash

Flow Statements" notified under the Companies (Accounting Standards) Rules 2006 read with Rule 7 of the Companies

(Accounts) Rules 2014.

2] Figures in brackets represent outflows.

32

• Expand pan-India network for the goods transportation business

• Focus on northern central and eastern regions of India for

expansion

• Expand fleet of trucks

Increase goods transportation network and fleet size

Enhance network of transshipment hubs

• Scale-up operations at existing transshipment hubs through :

-- Mechanized freight handling equipment

-- Expansion of maintenance facilities

-- Setting up fuel stations

-- Improvement in the overall work environment

• Expand proportion of owned transshipment hubs

Improve operational efficiencies through technology

enhancements•Enhance in-house technology capabilities to:

--Effectively manage pan-India operations

--Maintain strict operational and fiscal Controls

--Enhance customer service levels

-- Preventive and predictive maintenance of vehicles through software

development and improvement in software as required

Consolidation of bus operations

• Focus on improving margins

-- Optimal route planning-

-- Maximizing occupancy levels through direct marketing and

commission agents

• Proposed Transport Bill to :

-- Simplify registration process through a unified vehicle registration

system

-- Simplify system of vehicular and transport permits

-- Reduce inter-state transportation costs

Focus on higher margin parcel delivery services

• Focus on increasing market share in parcel delivery

Business

-- relatively superior margins

-- diversified customer base

• Reliance on owned vehicles

-- target higher margins by ensuring optimal load

factors

-- premium rates for remote locations

• Focus on small and medium sized enterprises

--relatively diversified attractive and under-served

customer segment

Enhance operational controls to ensure timely

delivery and quality services

• Key growth factors – timely delivery and quality

service

• Profitability - stringent and integrated management

control systems to optimize freight mix and maximize

load factors

• Operational efficiency -

measures such as deploying multiple drivers over long

distances

• Security - close circuit cameras on passenger buses

• Employees - industry best practices and training

•Proposed GST bill expected to remove the current multiple taxation and bring supply chain efficiencies

THANKING YOU

For further discussions/queries Please contact :

Sunil Nalavadi

Chief Financial Officer

+91 93425 59298

[email protected]

mailto:[email protected]

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