Annualreport 2011

Twenty-First Annual Report 2011
Abhayapuri Achabbal Achalpur Achhnera Adalaj Adari Adilabad Adityana Adityapatna Agartala Agra Ahmedabad Babiyal Baddi Bade Bacheli Badaun Badepalle Badharghat Bagaha Bahadurgarh Bahadurganj Baharampur Bengaluru Bhopal Chandigarh Coorg Chennai Coimbatore Cambay Chaibasa Chakeri Chakradharpur Chalisgaon Chamba Champa Champawat Champhai Chamrajnagar Darjeeling Dabra Dadri Dahod Dalhousie Dalkhola Dalli-Rajhara Dalsinghsarai Daltonganj Daman and Diu Damoh Ellenabad Eluru Erattupetta Erode Etah Etawah Faizabad Falna Faridabad Faridkot Farooqnagar Farrukhabad Fatehabadm Fatehgarh Fatehpur Chaurasi Gadag Gadchiroli Gadwal Ganaur Gandhidham Gandhinagar Gangtok Ganjam Garhwa Gauripur Gurgaon Haflong Hailakandi Hajipur Haldia Haldwani Haibat Hamirpur Hans Haridwar Howrah Hyderabad Hanuman Junction Ichalkaranji Ichchapuram Idar Imphal Indore Indranagar Irinjalakuda Islampur Itanagar Itarsi Jabalpur Jagadhri Jagatsinghapur Jagdalpur Jagdispur Jaggaiahpet Jagraon Jagtial Jaipur Jammu Jamnagar Jais Kadapa Kadi Kadiri Kadirur Kagaznagar Kailaras Kailasahar Kaithal Kakching Kakinada Kanpur Kolkata Lachhmangarh Ladnu Ladwa Lahar Laharpur Lakheri Lakhimpur Lakhisarai Lakshmeshwar Lal Gopalganj Leh Lucknow Mumbai Nindaura Macherla Machilipatnam Madanapalle Maddur Madgaon Madhepura Madhubani Madhugiri Madhupur Madhyamgram Nabha Nadbai Nadiad Nagaon Nagapattinam Nagar Nagari Nagarkurnool Nagaur New Delhi O' Valley Oddanchatram Obra Ongole Orai Osmanabad Ottappalam Ozar Panaji Pathankot Pondicherry Pune P.N.Patti Pachora Pachore Pacode Padmanabhapuram Padra Padrauna Paithan Pakaur, Palacole Rabkavi Banhatti Radhanpur Rae Bareli Rafiganj Raghogarh-Vijaypur Raghunathpur Rahatgarh Rahuri Raichur Raiganj Rameshwaram Ranchi Shimla Sabalgarh Sadabad Sadalgi Sadasivpet Sadri Sadulshahar Safidon Safipur Sagar Thiruvananthapuram Tadepalligudem Tadpatri Taki Talaja Talcher Talegaon Dabhade Talikota Taliparamba Talode Talwara Uchgaon Udaipur Udaipurwati Udgir Udhagamandalam Udhampur Udumalaipettai Udupi Ujhani Ujjain adakara, Vadakkuvalliyur Vadalur Vadgaon Kasba Vadipatti Vadnagar Vadodara Vaijapur Vaikom Valparai Wadgaon Road Wadhwan Wadi Wai Wanaparthy Wani Wankaner Wara Seoni Warangal Wardha Yadgir Yamunanagar Yanam Yavatmal Yawal Yellandu Yemmiganur Yerraguntla Yevla Zahirabad Zaidpur Zamania Zira Zirakpur Zunheboto
How Expertise, Value, Innovation and Leadership go places in Blue Dart Country
How expertise, value, innovation and leadership go places in Blue Dart Country
Contents
Our Vision Guiding Principles and Corporate Information Board of Directors Executive Management Chairmans Statement Financial Summary Sustainability at Blue Dart Awards & Accolades Directors Report Corporate Governance Report Auditors Certificate on Corporate Governance Report Management Discussion and Analysis CEO and CFO Certification and Declaration regarding Blue Dart Code of Conduct Auditors Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules Statement pursuant to Section 212(1)(e) of the Companies Act, 1956 relating to Subsidiary Company 02 03 04 05 06 08 10 22 24 32
CONCORDE AIR LOGISTICS LIMITED

Board of Directors Directors Report Auditors Report Compliance Certificate Balance Sheet Profit and Loss Account Cash Flow Statement Schedules 78 79 81 84 88 89 90 91
CONSOLIDATED ACCOUNTS
45 46 54 55 58 59 60 62 Auditors Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules 99 100 101 102 104
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BLUE DART EXPRESS LIMITED | CONTENTS | ANNUAL REPORT 2011
Our Vision
To be the best and set the pace in the express air and integrated transportation and distribution industry, with a business and human conscience. We commit to develop, reward and recognise our people who, through high quality and professional service, and use of sophisticated technology, will meet and exceed customer and stakeholder expectations profitably.
BLUE DART EXPRESS LIMITED | vision | ANNUAL REPORT 2011
Our Guiding Principles

We will: Treat each other fairly and with respect and dignity. Encourage freedom in communication of thoughts and ideas in all our interactions. Value integrity and be uncompromising in upholding it at all times. Give due importance to the health, safety and wellbeing of our people. Ensure that our People First philosophy serves as a driving force behind the success of our organisation. Encourage and inculcate in all a winning attitude. Encourage learning, self-development and building effective leadership. Expect our people to be accountable for all their actions related to the company. Provide a workplace where each and every employee is nurtured and who, in turn, will nurture the organisation, thereby creating wealth for stakeholders. Drive the First Time Right concept to achieve 100% Quality and Customer Satisfaction. Encourage passion and enthusiasm for Work, Service Quality and Customer Care. Project a positive, caring and professional image of ourselves and our service at all times. Avoid waste by being conscious of the impact of all our actions on the environment. Continue to be a law-abiding, apolitical and secular company.
Corporate Information
Registered Office: Blue Dart Centre, Sahar Airport Road, Andheri (E), Mumbai - 400 099. Tel: +91 22 2839 6444 Fax: +91 22 2824 4131, 2831 1184 www.bluedart.com Principal Bankers: Canara Bank HDFC Bank Ltd. ICICI Bank Ltd. IDBI Bank Ltd. Auditors: Price Waterhouse Solicitors: Mulla & Mulla & Craigie Blunt & Caroe DSK Legal Registrar & Transfer Agent: Link Intime India Pvt. Ltd.
BLUE DART EXPRESS LIMITED | GUIDING PRINCIPLES AND CORPORATE INFORMATION | ANNUAL REPORT 2011
Board of Directors
Sharad Upasani Chairman
Anil Khanna Managing Director
Malcolm Monteiro Director
Clyde C. Cooper Director
Suresh G. Sheth Director
Jerry Hsu Director
George Berczely Alternate Director to Jerry Hsu
BLUE DART EXPRESS LIMITED | BOARD OF DIRECTORS | ANNUAL REPORT 2011
Executive Management
Yogesh Dhingra Finance Director & Chief Operating Officer
Aneel Gambhir Head - Internal Audit
Arun Nangpal Head - Customer Service
Barttanu Kumar Das Head - Human Resources
Tushar Gunderia Company Secretary & Head - Legal & Compliance
Ketan Kulkarni Head - Marketing, Corp. Comm. & Sustainability
Col.(Retd.) Raymond Luiz Head - Security & Administration
Gopinath Menon Head - South 2 Region
Balfour Manuel Head - West 1 Region
K. Gopa Kumar Head - South 1 Region
T. A. Krishnan Head - North Region
Amod Dasgupta Head - East Region
Samir Shah Head - West 2 Region
BLUE DART EXPRESS LIMITED | EXECUTIVE MANAGEMENT | ANNUAL REPORT 2011
Chairmans Statement
Your Company plays a vital role in the logistics segment and the company offers secure and reliable delivery of consignments to over 35,902 locations in India and to over 220 countries and territories worldwide through its group company DHL Express. Blue Darts infrastructure comprises a fleet of three Boeing 737 and four Boeing 757 freighters offering a revenue payload of over 370 tonnes per night, a flotilla of over 6,272 vehicles, 365 facilities including 56 domestic warehouses and 12 express hubs delivering excellence. In 2011, Blue Dart carried over 988.5 lacs domestic shipments and over 8 lacs international shipments weighing over 423,000 tonnes. Technological Orientation Our Key Distinguisher Demographically, India is the worlds second largest market. The Indian economy has remained relatively strong and weathered a recession that impacted the world adversely. Indias growth rate, however, has not reached its true potential. This is primarily because of numerous roadblocks, including the lack of infrastructure and essential services. Furthermore, the logistic industry is highly fragmented and hence there are no economies of scale benefits that can be made available to the end user. Technology usage too is still very low in India. This restricts the scope of increasing efficiency and productivity. Your Company has been able to differentiate itself and has achieved scalability due to its focus on technology right from the early stages of its business. It is reflected in the way the Company moves its products, in a manner which is more cost-effective, more fuel-efficient and more environment friendly. On Top of the Growth Curve We are constantly striving to maintain and improve our infrastructure expanding capacity when needed and investing in our fleet to ensure that we safely and efficiently meet long-term demand. These timely investments ensure that we adjust to the changing transportation and logistics landscape. We also continue to seek opportunities to manage risk and cost very effectively and keep them in line with business needs, while preparing to fulfill our customers needs when the economy improves. Blue Dart has an extremely transparent fuel surcharge mechanism in place since December 2002 to neutralize the impact of the Aviation Turbine Fuel (ATF) costs. Customer delight, as I perceive it, has been the purpose of our existence and this to my mind has made us profitable. Various initiatives like Customer Satisfaction Surveys have helped us exceed our customers expectations. We regularly undertake suggestions on the basis of our First Choice program and we take our internal performance matrix very seriously. Timely departure of airlines, maintaining service quality levels, increasing Revenue per shipment and kilos per shipment are some of the qualities which are ingrained in every Blue Darter, and it continues to motivate us to remain ahead of competition and set industry benchmarks. We strive to improve our touch point experience and have a structured mechanism in place to gather, process and analyse customer feedback. This is the raw material used by us to improve our existing services and develop new offerings. This has gone a long way and we believe that it will continue to do so in our endeavour to retain our market leadership position. It has hence been accorded highest importance in our strategic plan to remain ahead of the competition. Growth Strategy Our growth drivers are multi-dimensional but well defined. We will be focusing on existing customers to scale our existing relationship with select high potential
Dear Fellow Stakeholders, The year gone by was one of those, where there was a sense of satisfaction that arises from surmounting a challenging external environment and emerging stronger. Emerging Stronger The economic scenario witnessed in 2011 can best be described as volatile. Against the backdrop of a global economic crisis, the Indian economy faced considerable inflationary pressure. This led to a rising interest rate scenario where borrowing costs escalated and economic growth got stifled. However, given the sheer size of our domestic economy and relatively strong consumption patterns that now characterise it, GDP growth in the Indian economy remained ahead of that of most nations. Hence, notwithstanding its slippage from the high expectations that our policy makers had at the start of the year, Indian economy remained ahead of the curve when benchmarked against most other economies. On the global front, Euro-zone continues to pose a risk for developing nations while the US-Iran-Israel tensions loom ominously on account of the impact it could have on oil prices. We are no longer living in a uni-polar world, but one that is characterised by integrated economies and financial markets, with a lot of focus on developing nations. Amidst all this uncertainty, the Indian logistics sector stands out as one that actually emerged stronger and it is undisputably, one of the most promising sectors of Indias new economy. Though nascent and not as technologicallyadvanced as its Western counterparts, the sector is creating a huge buzz globally by virtue of its sheer size and immense potential for growth. Performance Matters It pleases me to inform you that your Company has performed reasonably well and further strengthened its market leadership position. Within the domestic air express industry, Blue Dart commands a 45.9%1 market share and has seen a significant increase in both, volumes and value. In the ground segment, the Company garnered a market share of 12.4%1. The Air Express segment has grown at 28% (contributing 64% to the total revenue pie) while the Ground services (contributing 19% to the total revenue pie) which we launched in 2007, has grown at 46% on a lower base. Notably, the launch of our ground services was a strategic move which we implemented to further bolster our air express services and tap the potential in Tier II and Tier III markets, and it has worked well for us. The incremental effect on our Air Services too is clearly discernible. Your Company posted a ` 12,224 lacs profit after tax for the year ended December 31, 2011 compared to ` 9,437 lacs profit after tax for the year ended December 31, 2010. Income from operations for the year ended December 31, 2011 was ` 148,960 lacs, compared to ` 114,741 lacs for the year ended December 31, 2010. The Board of Directors of your Company has recommended a dividend of 20% for the year ended December 31, 2011.
Source: 1 - AT Kearney :Q3 2011 QMS
BLUE DART EXPRESS LIMITED | CHAIRMANS STATEMENT | ANNUAL REPORT 2011
clients by offering them a lot more than what we have been traditionally offering them. This will not only lead to revenue enlargement, but also give us an army of loyal customers. Detecting opportunities vertical wise has helped us device sector specific solutions and this has helped the overall growth strategy of the Company, to a great extent. Demand for streamlined supply chains from the auto, pharma, hitech and retail sectors is expected to drive growth for us. We perceive SMEs as an emerging opportunity and efforts have been underway to tap this segment across industry verticals, aggressively. In terms of new customers, tapping new geographies and segments continues to be our key focus area. Launching new products has been our response to any opportunity sensed in a new geography and new industry verticals. This approach has borne fruit. It pleases me to inform you that we have successfully launched 25 new services since 2008. Some of our success stories in the Air Express segment include Time Definite Solutions (Domestic Priority 1030, Domestic Priority 1200, Dart Apex 1200) and Day Definite Solutions (Domestic Priority, Dart Apex, Dart Surfaceline). Packaging Solutions include Express Pallet: Air and Ground, Smart Box Air and Ground. The Company also offers Cargo Solutions like Airport to Airport, Interline and Charters besides offering Festive Solutions and discounted Student Solutions. Solutions like Temperature Controlled Logistics (TCL), Dart Surfaceline Plus, Point to Point (P2P) and a host of value added services like Demand Draft on Delivery (DOD), Freight on Demand (FOD), Freight on Value (FOV), Cash on Delivery (COD) etc. represent our tailor made services for specific industry requirements. The Companys global presence is established through the DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and a wide range of packaging solutions. The service offers access to 220 countries and territories worldwide and to the extensive, quality network of DHL. DHL Import Express is a unique single-window importing service that takes care of all importing needs by offering door-to-door convenience. Duties & Taxes Paid (DTP), Express Pallet, Shipper Interest Insurance (SII) and University Express are some of the other offerings. Corporate Governance Good Corporate Governance has always been an integral part of the Companys business philosophy. Good governance cannot be mandated, it should flow from within the business organisation and be integrated with corporate culture. Your Company continues to deliver value to its stakeholders through its People Philosophy and Corporate Governance, based on distinctive customer service, business ethics, accountability and profitability. Growing Responsibly On the Corporate Social Responsibility (CSR) front, Blue Dart continued its efforts on three key pillars: GoTeach (Education), GoGreen (Environment) and GoHelp (Disaster Management). Under GoTeach, the award winning Blue Edge - Empowering Lives program, a 6-month course, continues to impact young lives from the marginalised segment of our society. Till date the program has completed 9 batches in Mumbai with the 10th batch being underway. In April 2011, the program was extended to Chennai which saw the completion of the 1st batch. The 2nd batch began in October 2011 and is underway in full thrust. The relationship with DHL and Teach For India continues to grow with the active participation of employees in this area of social work.
Blue Dart participated in various efforts to put environmental concerns in the spotlight through GoGreen events like Earth Day, Volunteer Day, Power SaverInitiative, GoGreen drives, etc. Blue Dart recently launched Indias first end-to-end GoGreen Carbon Neutral Service. The GoGreen Carbon Neutral Service allows customers to neutralise their carbon footprint by paying a marginal offset charge over and above their shipping rates. Recently, your Company was associated with the first Corporate Responsibility Day and presented the first Blue Dart Global Corporate Social Responsibility Awards. The awards recognised Corporate Social Responsibility (CSR) champions and organisations across various industries. The Honorable Union Minister of Corporate Affairs, Dr. M.Veerappa Moily was the Chief Guest at the event held in Mumbai. The first Corporate Responsibility Day in India was marked by two panel discussions - CSR: The Way Forward and PublicPrivate Partnership for a Greener Planet. Designed to foster discussion and awareness of corporate responsibility within the private sector, the panel discussions were well attended by about 120 participants from the corporate and NGO communities and resulted in a great exchange of ideas and insights in the CSR sphere. Blue Dart itself has a very strong sustainability programme in place across platforms for which we have received accolades and we are sure that such recognitions will only help more corporations to strive harder for a better tomorrow. Commitment to the Future Value for money, premium, reach, reliability, timely delivery, employer of choice, provider of choice, investment of choice are some of the key words with which Blue Dart has been associated and identified with and going forward this will only be strengthened. Externally, we believe that the Implementation of Goods and Services Tax (GST), integration of supply chain and an improvement in the infrastructure and road conditions will facilitate the effective functioning of the logistics industry. With a solid commitment to our customers, the environment and the communities we serve, we are naturally positioned to be part of the solution for the challenges that will define the coming decades. Recently, your Company was honoured with Air Cargo Carrier of the Year Award - Indian Supply Chain & Logistics Summit and Excellence Awards besides many other awards in the months of January and February, 2012. Gratitude I am particularly proud of the way our team has responded to serve customers during difficult times. I appreciate the dedication and hard work of our employees. I would like to also thank all our stakeholders for their continued confidence, support and trust. While the challenges in front of us remain substantial, we are confident that we will continue to provide long-term value to our shareholders.
Mumbai March 10, 2012
Warm regards, Sharad Upasani Chairman
BLUE DART EXPRESS LIMITED | CHAIRMANS STATEMENT | ANNUAL REPORT 2011
Financial Summary
Financial Summary of the last five years
` in Lacs
Particulars Income from Operations Other Income Total Income Total Expenditure Operating Profit Interest (Expense) Gross Profit Depreciation Profit Before Tax Taxation Profit After Tax Equity Reserves Gross Fixed Assets Networth Book Value ( ` ) ROCE (in percentage)
2007 80,872 311 81,183 68,083 13,100 40 13,060 2,403 10,657 3,664 6,993 2,376 29,354 25,692 31,730 133.72 37.13
2008 97,446 1,071 98,517 84,935 13,582 50 13,532 1,657 11,875 4,140 7,735 2,376 36,811 28,562 39,188 165.15 33.63
2009 90,523 760 91,283 80,150 11,133 55 11,078 1,776 9,302 3,232 6,070 2,376 42,605 30,036 44,981 189.57 22.24
2010 114,741 532 115,273 99,324 15,949 1 15,948 1,922 14,026 4,589 9,437 2,376 51,765 32,544 54,141 228.17 28.30
2011 148,960 2,426 151,386 131,338 20,048 0 20,048 2,160 17,888 5,664 12,224 2,376 63,438 39,326 65,814 277.37 29.83
BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2011
Financial Summary
Five years review
BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2011
Sustainability at Blue Dart

Sustainability (or Corporate Responsibility) is an integral part of DP DHLs Strategy 2015 which has been adopted by Blue Dart too. We take our responsibility to society, to the communities in which we operate, to our employees and to the environment seriously. We want to make a positive contribution to our world by using our knowledge and domestic / global presence in ways that benefit people and the environment. As an Indian company with a global outlook, we endeavour to maintain a delicate balance between economic, environmental and social interests. Under the motto Living Responsibility, Blue Dart (along with DP DHL) focuses its corporate responsibility on protecting the environment (GoGreen), delivering help (GoHelp) and championing education (GoTeach). These are supported and complemented by regional community initiatives, which demonstrate the voluntary commitment, special abilities and enthusiasm of over 7,792 employees from across Blue Dart Country.
Striking a balance between economic benefit and assuming responsibility for communities is the bedrock of successful CR commitment and a contributing factor to achieving Group targets Economic benefit
Pure business Win-win: Combines societal and business benefit
Societal benefit
GoGreen
GoHelp
GoTeach
Blue Darts sustainability initiatives have been appreciated by its peers and have been the recipient of various awards some of which include: Best CSR
Practice award (Overall) - Asias Best CSR Practice Awards, Best in Corporate Social Responsibility Practice - 5th INDYs Awards 2011.
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BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011
GOGREEN Carbon Neutral Service

On December 13, 2011, Blue Dart and DHL announced Indias first end-to-end GOGREEN Carbon Neutral Service across domestic and international markets. This new service, a GoGreen initiative is an extension of DP DHLs global environment protection program launched in 2008 and will provide customers in India with an environmentally responsible shipping option.
Powered by Blue Dart and DHL in India, the GOGREEN Carbon Neutral Service will allow our customers to neutralize their carbon footprint by paying a marginal offset charge over and above their shipping rates. The offset charge will be calculated on shipment / weight. Carbon emissions from customer shipments will be offset by reinvesting in environmental protection projects. A certificate, will be issued by Blue Dart to the customer annually that will mention the total amount of CO2 offset per customer. This new GOGREEN Carbon Neutral Service will allow customers to be our co-stakeholders in ensuring a cleaner, safer, environment and do their bit towards ensuring a carbon neutral shipment. Since the launch of the environment protection program in 2008, we have seen a lot of interest evinced by customers who already have sustainability on their agenda. Through this rollout in India, we will enable customers to be responsible social citizens. The GOGREEN Carbon Neutral Service will not only enable our customers to contribute to a greener future but will also help fund the climate protection projects and build healthier and productive communities. The GOGREEN Carbon Neutral Service will be available across all of Blue Dart-DHLs Express Service Offerings, including Domestic Priority, Dart Apex, Dart Surface Line and International products such as documents, parcels, Express Easy and Import Express. It will also be available on customized solutions such as Temperature Controlled Logistics. Blue Dart and DHL Express India are top performers in DHLs annual global Carbon Footprint Assessment register. In 2010, Blue Dart posted an improvement of 6.5 per cent year-on-year driven by stronger volumes, despite CO2 increasing by 18.5 per cent in 2010 versus 2009. DHL Express India achieved 6.0 per cent improvement in carbon efficiency despite total CO2 increasing by 13.6 per cent as the economy boomed. Despite increases in fuel consumption, carbon efficiencies were achieved by switching to cleaner fuels such as compressed natural gas (CNG) and liquefied petroleum gas (LPG).
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On September 16 & 17, 2011, Blue Dart & DHL celebrated the Global Volunteer Day 2011 (GVD). Over 8000 employees across India participated in various activities including blood donation, volunteering in old age/childrens/destitute homes, organizing painting competitions for underprivileged children and sponsoring saplings as part of its global drive to give back to local communities and to inculcate a passion for volunteerism among employees. The sheer number of participants made this the largest ever GVD across the DP DHL world placing India in the second position (next only to Germany).
Highlights of GVD:
GoTeach
Painting competitions for over 2500 children in Mumbai, Delhi and Pune in association with Teach For India under the initiative titled Redraw India. The activity saw participation from over 200 employees.
GoGreen
A campaign titled Sponsor a tree was launched in association with Grow-Trees.com, official partner of the United Nations Environment Programs Billion Tree Campaign and WWFs Cities for Forests Campaign. Over 4500 employees from DHL and Blue Dart sponsored over 10,560 trees either in their name or to honour their family, friends and colleagues. The sponsored trees were to be planted in government and community lands. The GVD provided the perfect platform for employees of Blue Dart, DHL Express, DHL Supply Chain and DHL Global Forwarding to connect with each other on nonbusiness related activities. The camaraderie enjoyed by the participants and the awareness of the numbers of lives they have touched has formed a premise that will catapult the subsequent Sustainability activity of the group to greater heights. We are now eagerly looking forward to GVD 2012.
GoHelp
Life Saving: Blood Donation Drives in association with THINK Foundation organized in over 40 locations across India with donation from 2000 volunteers. The blood collected was distributed to various medical institutions like the Red Cross Society, blood banks and Government hospitals across India. This drive was also an effort to aid Thalassemic patients and helped to create awareness amongst volunteers on the importance of regular blood donation. Apart from this, over 100 employees also volunteered at local Old Age, Childrens and Destitute Homes and donated clothes, linen, electrical appliances, edibles and other basic necessities along with sponsoring cataract operations for senior citizens.
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Global Volunteer Day 2011 (GVD)
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At Blue Dart and DHL, Living Responsibility is the cornerstone that defines who we are and how we impact the communities we operate in. Our Sustainability pillars are firmly entrenched into the DNA of the organisational culture as well as our employees who never miss an opportunity to join hands for a good cause.
Within the GoTeach programme, our partnership with Teach For India (TFI) that kicked off in 2011 is a major initiative. Teach For India, part of Teach For All, a global network with 15 national partner organizations, aims to expand educational opportunity in different countries. Teach For India is a nationwide movement of outstanding college graduates and young professionals who teach full time in low income schools for two years. The Fellowship enables them to become lifelong leaders advocating for educational equity. Since the kick off in 2011, we have had a highly successful year enabling over 800 employees to volunteer in several activities that benefited more than 300 classrooms in the TFI schools in Mumbai, Pune and Delhi. One of the large scale initiatives undertaken by our employees was the Stationery Donation Drive conducted in May 2011 across the 4 BUs (Blue Dart, DHL Express, DHL Supply Chain and DHL Global Forwarding). The response was so overwhelming that not only did we run out of space to store all the 40 cartons of stationery but we also had employees volunteering to sort all the collected material. The stationery too was thoughtfully chosen to meet all the educational requirements of children which included pencils, erasers, sharpeners, colours, geometry sets, notebooks, pencil boxes and school bags to name a few. Apart from this, a whopping cash collection of ` 1,75,000/- helped in purchasing useful educational tools for the classrooms. This amount included a generous donation from Staples, our stationery suppliers, and Corporate Communication colleagues from Singapore. The segregated stationery bags were then handed over to the TFI Fellows, who in turn distributed them amongst the children, in their classes. This stationery was later used during the Redraw India conducted by us during the Global Volunteer Day 2011. While it is important to focus on the children and their educational welfare, it is also imperative to continuously motivate the Fellows and equip them with knowledge that will help them in their class. Continuing the endeavour to enrich the lives of both children and TFI Fellows, we organized a Leadership Development Programme (LDP)
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from September 12-15, 2011 in association with the Tata Institute of Social Sciences (TISS), one of Indias premier educational institutes and pioneers in the field of training and leadership development. The four-day program conducted in the precincts of TISS included segments on self-exploration and leadership skill development. The TFI Fellows learnt more about human behaviour and how to become a transformational leader in sync with ethics. They were also exposed to various management theories on team building and motivation, and interactive sessions had the Fellows questioning or reflecting on the way things can be improved at personal and organizational levels. During the Change Management session, Fellows got to know themselves better and focus on those parts of their personalities which will help them to be more adaptive. At the end of the programme, a valedictory session was held where Prof. S. Parshuraman, Director of TISS, awarded certificates to the Fellows for completing the programme successfully. Not only did the TFI Fellows gain an opportunity to be part of TISS, they also received open access to the TISS library thanks to Prof. Parshuraman who also expressed his interest to conduct more of such collaborations with TFI. The last day of the LDP, September 15, 2011 culminated in a networking dinner for the TFI Fellows, TISS faculty as well as Blue Dart and DHL representatives. The dinner provided a good platform for our management to engage the Fellows in conversation on topics including fellowship challenges, post-fellowship career options and how corporations can do more to help TFI. This was followed by the Fellows who shared their experiences on being part of the LDP in terms of how the curriculum was designed to hone their leadership skills and help them communicate with their students more effectively. They also thanked the faculty for sharing their rich experience and knowledge with the Fellows apart from giving them an opportunity to relive college life. Apart from this, the group also donated laptops and desktops and organised InspirEd, a conference for educational leaders. All in all 2011 saw us embark on the journey of fighting educational inequity in India and making education accessible to children.
Teach For India
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Sustainability at Blue Dart Awards

Blue Dart & DHL as socially responsible corporates inaugurated the first Corporate Responsibility Day and Global CSR Awards in India on 18 February 2012 at Mumbai. The awards recognized Corporate Social Responsibility (CSR) champions across various industries and were part of the first World CSR Day. The event was graced by the Chief Guest, Honorable Union Minister of Corporate Affairs, Dr. M. Veerappa Moily along with Dr. Bhaskar Chatterjee, Director General & CEO, Indian Institute of Corporate Affairs.
Corporate Responsibility (CR) Day

The 1st Corporate Responsibility Day in India was marked by two panel discussions - CSR: The Way Forward and PublicPrivate Partnership for a Greener Planet. Designed to foster discussion and awareness of corporate responsibility within the private sector, the panel discussions were well attended by about 120 participants from the corporate and NGO communities and resulted in a great exchange of ideas and insights in the CSR sphere. Chaired by Dr. Bhaskar Chatterjee, Director General & CEO, Indian Institute of Corporate Affairs, the panel included Malcolm Monteiro, SVP & Area Director - South Asia, DHL Express and other esteemed corporate leaders like Elaine Cohen, Chief Executive Officer, Beyond Business Ltd., Louise van Rhyn, CEO & Founder, Symphonia for South Africa, Dr. Soroor Qarooni, Board Member, Bahrain Woman Association for Human Development and Director, Anti Child Abuse & Neglect Program Be Free, Rajani Ramakrishnan, Senior Vice President, Group Internal Communications, Group Communications and Corporate Sustainability, HSBC Ltd., Michael Heng, President and CEO, Energycorp Global Pte Ltd, Sudhir K. Sinha, Country Head - CSR and R&R, Arcelor Mittal India Limited, Deepak Jolly, VP-Public Affairs & Communication, Coca-Cola India, Anirban Roy, Managing Director, SEED, Mohini Daljeet Singh, Chief Executive, Max India Foundation and Nilmini Jayasinghe, Project Lead, Joint Apparel Association Forum Sri Lanka (Garments Without Guilt).
Global CSR Awards

The Corporate Responsibility Day culminated with the Blue Dart Global CSR Awards in the evening which recognized contribution to society and environment from various public, private and social organizations from India and about 12 countries (such as Dubai, Singapore, South Africa and Sri Lanka). Well known companies from diverse industries such as FMCG, Automobile, Telecom, Energy and Banking to name a few gathered awards and certificates across categories such as Best Corporate Social Responsibility Practices, Support and Improvement in Quality of Education, Diversity and Human Resource, Concern for Health, Poverty Alleviation, Accounting for Climate Change, Carbon Footprint Accounting, Community Development, Regulation of Corporate Social and Environmental Behaviour, Social Entrepreneurship. The Blue Dart Global CSR Award jury included Dr. Bhaskar Chatterjee, Director General & CEO, Indian Institute of Corporate Affairs; Prof. Indira Parikh, President, Foundation for Liberal And Management Education, Indias Iconic HR Leader; Dr. T.V. Rao, Chairman T.V. Rao Learning Systems Pvt. Ltd; Mr. Harish Mehta, Chairman & MD Onward Technologies Ltd.; Emeritus Chairman World HRD Congress & Founder Member NASSCOM; Mr. Phil Knight, Global Chairman - Employer Branding awards; Prof. Tom Hilton, Global Chairman Asia Pacific HRM congress; Dr. Prasad Medury, Partner, Amrop India Consultants Ltd.; Mr. Sanjay Muthal, Managing Director, NuGrid Consulting Pvt. Ltd. and Ms. Nina E. Woodard, President & Chief N Sights Officer, Nina E. Woodard & Associates, a division of NDPendence, Inc. The Corporate Responsibility Day and Global CSR Awards were a befitting tribute to the great work being done by all the corporate towards our communities and environment.
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C R Day and Global CSR Awards
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India, an emerging superpower is currently in the throes of an educational crisis with 30% of its citizens being illiterate. India spends only 3.3% of its GDP on education, compared to an average 5.8% in developed countries Education is not deemed of as the highest priority among the poor as compared to other basic necessities like food, clothing, shelter, drinking water and sanitation. Of the 1.21 billion population of India, about 41.6% citizens are below the poverty line. Lack of education forms one of the biggest contributors to poverty. This imbalance results in a vicious circle poverty cannot be eradicated unless people get educated and education cannot be afforded due to poverty.
As Eleanor Roosevelt said, all of life is a constant education. Blue Dart has always believed that education is the stepping stone to success and has encouraged learning amongst its employees to help them rise through the ranks. Taking this a step ahead and in order to empower the communities around us, Blue Dart in line with DP DHLs Living Responsibility programme started the Blue Edge: Empowering Lives initiative under its GoTeach sustainability pillar. The Blue Edge: Empowering Lives programme has completed 9 batches in Mumbai and 1 batch in Chennai impacting 471 young adults till date. The programme ensures that the underprivileged section of the society is not deprived of education as a building block to their ability to earn and support their future and families and contribute positively to the community. It is a matter of great pride that more than 40% of the students who have graduated from this programme have been placed in successful and reputed organizations in sectors like Telecom, Retail, FMCG etc. The programme has also received several accolades some of which include: Community Development Blue Edge: Empowering Lives - CSR Awards 2011 - Subir Raha Centre for Corporate Governance, Outstanding contribution to the cause of education for effective Corporate Social Responsibility efforts through Blue Edge: Empowering Lives Program - Global HR Excellence Awards 2010-2011.
Blue Edge: Empowering Lives

In 2008, Blue Dart in association with Oasis India (NGO) started an initiative called Blue Edge: Empowering Lives in Mumbai, which is aimed at enriching the lives of young adults from difficult environments, who have not been able to complete their education. This life-transforming programme has helped in impacting young adults from the underprivileged sections of society. The programme aims to reach out to minimum of 50 students per batch. We also ensure that every batch has a healthy mix of girls and boys even though we are aware that most of the girls will not be allowed to work and instead be married off. However; as Mahatma Gandhi said, If you educate a woman, you educate a family. We too strongly believe that women are catalysts of change and if we empower them with knowledge and basic skills, they will work towards transforming their families. The success of the Blue Edge: Empowering Lives programme ensured that it was nominated as a Lighthouse Project under GoTeach from AP EEMEA. The programme also received funding of 50000 euros from DHL as a token of appreciation for the good work conducted in the field of education and also to further this programme to another city in India. This fund was used to set up the Blue Edge School in Chennai (which has 0.8 million slum people i.e. nearly 18% of the population staying in slum areas). The Chennai operations began in April 2011 with 54 students and celebrated its first Graduation Day in October 2011.
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Testimonials from Students:

I had lot of problems at home due to which I was unable to complete my studies. However, the Blue Edge programme has been a good foundation for me to build on. I now look forward to completing my college and take up a job to support my family said C. Samundeeswari, a Blue Edge student. Since my father left us, the responsibility of the entire family was entrusted to me. I had completed my HSC and was looking for a job. I had planned to work and study at the same time and luckily I came to know about Blue Edge: Empowering Lives. It was a great opportunity to learn spoken English and computer as free courses. I attended job interviews and now I have joined a Company as a SIM Verification Executive. I would like to thank Blue Dart and Oasis who helped shape my future said Logesh S., a Blue Edge student.
Blue Edge: Empowering Lives
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Under the motto Living Responsibility, Blue Dart (along with DP DHL) focuses its corporate responsibility on protecting the environment (GoGreen), delivering help (GoHelp) and championing education (GoTeach). These are supported and complemented by regional community initiatives, which demonstrate the voluntary commitment, special abilities and enthusiasm of over 7,792 employees from across Blue Dart Country. Some Other Initiatives are as under:
GoGreen
Blue Dart and DHL constantly endeavor to create awareness amongst their employees to protect environment by using the available natural resources judiciously. In keeping with this, we celebrated the Earth Hour (in March), Earth Day (in April) and World Environment Day 2011 (in June). Blue Dart ranked 2nd amongst all DHL Express countries as Blue Darters pledged to support the Earth Hour by educating their near and dear ones to switch off lights when not required. Earth Day was observed through various articles in the Daily News on environment, the perils of misusing our natural resources and ways to conserve the same. The World Environment Day 2011 (WED) was celebrated for an entire week with initiatives like No Printing, Carpooling / using Public Transport, Registering Pledge on the DP DHL site and Wear Green. Apart from this, we ran a contest inviting employees to share environmental friendly suggestions. The contest received a huge response and it was very heartening to see the various activities that Blue Darters were following in their day-to-day lives like carrying cloth bags to market, printing only when required, travelling by public transport and planting trees in their buildings to name a few. A jury comprising 3 of our senior management went through all the suggestions and awarded 6 best ones. Apart from celebrating these global days, in 2011, Blue Dart also introduced the Pedal Power: Bi-cycle initiative at Chennai, Bangalore, Ahmedabad, Mumbai, Delhi and Kolkata. With around 237 bicycles on field, this initiative aimed to help reduce CO2 emissions. Blue Dart has always practised energy conservation at its workplace with the Power Saver: Lights Off initiative where all offices across Blue Dart Country switch off lights for
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15minutes daily. Since June 2011, post the success of WED 2011, our Managing Director, Mr. Anil Khanna announced that additionally all the Blue Dart offices across India should switch off lights for an hour from 1-2pm on the last Saturday of every month. Blue Darters too were encouraged to switch off lights at their residence from 8.30-9.30pm on the same days. All in all, these initiatives allowed Blue Darters to be ecowarriors by making a difference, enabling the future.
GoHelp
Saving Lives - Blood Donation Drives To commemorate the National Safety Week, Blue Dart & DHL jointly organized the Life Saver: Blood Donation Drives at Mumbai and Kolkata in March 2011. Organised in association with THINK Foundation, the drive saw over 100 employees donate blood in a bid to help children suffering from Thalassaemia. Fund Raising Activity Blue Dart supported various NGOs to help raise funds through sale of their handmade products. One of them was Dhonk (that worked towards rehabilitation of the tiger poacher community in Ranthambore) and the other was Srujna (that empowered underprivileged women and girls rescued from trafficking). Both these activities received a warm response from Blue Dart and DHL employees which helped boost the morale of the beneficiaries and made them believe that they too could make a difference to their communities. Our employees were also happy to support such initiatives as it gave them an opportunity to reach out to different communities and enrich their lives.
Some Other Initiatives
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Awards & Accolades

Brand / Customer Service / Retail / Loyalty
Readers Digest Most Trusted Brand Gold Award (6 years in a row) SUPERBRAND Status 2011 (6 years in a row) STARBRAND Status 2011 (twice in a row) POWERBRANDS 2011 (twice in a row) Brand Excellence Award in Logistics Sector - Star News Brand Excellence Awards 2011 Brand Excellence in Service/Hospitality Industry - Global Awards for Brand Excellence 2011 Best Service Excellence Award Domestic - Asian Leadership Awards Best Marketing Strategy Award - Asian Leadership Awards Best Air Express Provider of the Year Domestic - 5th Express, Logistic & Supply Chain Conclave Innovative Logistics Company of the Year - 5th Express, Logistic & Supply Chain Conclave for Blue Dart - DHL Tata Motors award for Best Service Provider (Vehicle off Road) category Frost & Sullivan award for the Best Logistics Service Provider in the Pharmaceutical Sector Customer & Brand Loyalty Awards in the Logistic Sector Express - 4th Loyalty Awards Retail Leadership Award for Blue Dart DHL RETAIL initiative - Asia Retail Congress 2011 Awards for Retail Excellence Best Loyalty programme award - Blue Points - CMO Asia Awards Organization that offers the best returns to consumers - 6th Social & Corporate Governance Awards 2010
Sustainability
Community Development Blue Edge: Empowering Lives - CSR Awards 2011 - Subir Raha Centre for Corporate Governance Best Environmental Excellence Smart Truck - CSR Awards 2011 - Subir Raha Centre for Corporate Governance Best CSR Practice award (Overall) - Asias Best CSR Practice Awards Best in Corporate Social Responsibility Practice - 5th INDYs Awards 2011 Best Community Development programme award - Blue Edge: Empowering Lives - Asias Best CSR Practice Awards Best Developing Sustainable Strategy - Asias Best CSR Practice Awards Outstanding Contribution to the Cause of Education - Asia Pacific HRM Congress Best CSR Practice - 6th Social and Corporate Governance Award 2010 (held at Bombay Stock Exchange)
Individual
CSR Leadership Award Anil Khanna, MD - CSR Awards 2011 - Subir Raha Centre for Corporate Governance Business Super Achievers Award Anil Khanna, MD - Asian Leadership Awards CEO with HR Orientation - Anil Khanna, MD - Asia Pacific HRM Congress CEO of the Year award - Anil Khanna, MD - CMO Asia Awards CEO with HR Orientation Anil Khanna, MD - 6th Social & Corporate Governance Awards 2010 Tulsi Mirchandaney, MD, Blue Dart Aviation Ltd. felicitated by the Government of India for her significant contribution to the growth of civil aviation in India CFO 100 Recognition of Excellence - Yogesh Dhingra, COO & Finance Director for his exceptional contribution to corporate finance Brand Leadership Award for Ketan Kulkarni, VP & Head Marketing Corporate Communication & Sustainability - CMO Asia Awards for Excellence in Branding and Marketing Award for Brand Leadership - Ketan Kulkarni, VP & Head, Marketing Corporate Communications & Sustainability Global Awards for Brand Excellence 2011
Human Resources
Ranked as one of the Best companies to Work for in India 2011 - Great Place to Work Institute, India Organization With Innovative HR Practices - Asia Pacific HRM Congress Best HR Practices Award in Rewards & Recognition Strategies - Shine.com HR Leadership Awards Best Employee of the Year (Rank 13th) - 5th Employer Branding Awards 2010-2011 Best HR Practices in line with Strategy - 5th Employer Branding Awards 2010-2011
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BLUE DART EXPRESS LIMITED | AWARDS | ANNUAL REPORT 2011
BLUE DART EXPRESS LIMITED | AWARDS | ANNUAL REPORT 2011
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DIRECTORS REPORT
there has been some moderation in the inflation and there is expectation of a pause and perhaps, even a reversal of rising interest rates. Against the backdrop of this economic scenario, your Company performed reasonably well on all fronts by capitalizing on its strong brand equity, focused growth plans, customer loyalty and qualitative service offerings. Your Company posted ` 12,224 lacs profit after tax for the year ended December 31, 2011 as compared to ` 9,437 lacs profit after tax for the year ended December 31, 2010. Income from operations for the year ended December 31, 2011 was ` 148,960 lacs as compared to ` 114,741 lacs for the year ended December 31, 2010. With a dedicated air and ground network optimized by cutting-edge technology, your Company continues to be South Asias number one air and integrated transportation, distribution and logistics Company. It also offers a wide range of innovative and simplified solutions. Blue Dart is a company with impeccable service records, driven by a motivated and passionate team, the testimony for which lies in the numerous awards that it has been bestowed with over the years. As a responsible corporate entity, your Company continues to pay close attention towards Environment and Social Responsibilities. During the year, your Company introduced many new products and services; Indias first and only GoGreen Carbon Neutral service, on all products and Time - Definite Domestic Priority product 1200 and Smart Truck. A specialised Carbon Neutral service initiative, wherein the customers are provided with an environmentally responsible shipping option to neutralize the carbon emissions produced by transportation of shipments. Blue Dart GoGreen Carbon Neutral service would not only enable customers to contribute to a greener future, but, would also help build healthier and productive communities. Domestic Priority 1200 is a guaranteed door-to-door time definite delivery of shipments by air the next possible business day by 12:00 hours, targeted at time-critical business-to-business needs. Smart Truck technology is an intelligent pick-up and delivery vehicle that combines a number of innovative technologies including a route planner. Your Companys information technology infrastructure remains one of its key differentiators and enabler to values. Your Company was always in the forefront of technology and its technology innovations have played a key role in the Companys premium positioning and in bringing global standards to the Indian customers doorstep. Your Company continues to focus on innovation and would strive to keep delivering beyond the expectations of its stakeholders. Your Company is the dominant leader in the domestic air express industry and commands a 45.9%1 market share. In the ground segment, the company garnered a market share of 12.4%1. In the air express as well as in the ground segment, market share is growing on a year on year basis.
To the Members, Your Directors have great pleasure in presenting the Twenty First Annual Report of your Company for the year ended on December 31, 2011. FINANCIAL RESULTS Particulars Revenues Service Charges Other Income Less : Operating Expenses Operating Profit (EBIDTA) 148,960 2,426 131,338 20,048 0 2,160 17,888 5,664 12,224 45,381 57,605 474 77 917 56,137 114,741 532 99,324 15,949 1 1,922 14,026 4,589 9,437 36,221 45,658 237 40 45,381 (` in Lacs) For the year For the year ended ended December December 31, 2011 31, 2010
Less : Interest Cost (Net) Depreciation /Amortisation Earnings before tax Less : Provision for Income tax Earnings after tax Profit and Loss Account balance brought forward Profit available for appropriation Proposed Dividend Tax on Proposed Dividend Transfer to General Reserves REVIEW OF PERFORMANCE
While the Financial Years 2009-10 and 2010-11 reflected gradual positive signs of a recovery of the Indian economy from the lows of 2008-09, the fiscal year 2011-12 was marked by a lot of uncertainty and volatility. Some of the economic factors that contributed to this volatility included higher inflation and interest rates, reduced liquidity, lower consumption, decline of the rupee against the dollar and an unabated increase in the commodity prices and other input costs. This, in turn, led to deferred investment plans and delay in execution of projects. However, recently,
Sources : 1- AT Kearney Q3 2011 QMS
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Blue Dart Express Limited | Directors Report | Annual Report 2011
DIRECTORS REPORT
Your Company continues to focus on reach expansion, transit time improvements, small towns (Tier-II and III) activation and strengthening channels to enhance market share. Your Company increased its reach from 25,646 locations to over 35,902 locations. Your Company has been certified to the ISO 9001 standards since 1996 and has been successfully re-certified in September 2011 for 3 years to the new global ISO 9001-2008 standards for design, management and operations of countrywide express transportation and distribution services within the Indian sub-continent and to international destinations serviced through multinational express companies. DIVIDEND Your Directors are pleased to recommend a dividend of ` 2/- per equity share of `10/- each. Your Company would continue to aim at conserving and strengthening resources for future growth and expansion of the Company. The dividend, once approved by the members at the ensuing Annual General Meeting, will be paid out of profits of the Company for the year and will sum up to a total of ` 551 lacs including dividend distribution tax as compared to ` 277 lacs in the previous year. TRANSFER TO RESERVES Your Company proposes to transfer ` 917 lacs to General Reserves. An amount of ` 56,137 lacs is proposed to be carried forward to Profit and Loss Account. OPERATIONS REVIEW Your Company, Blue Dart, South Asias number one express air and integrated transportation, distribution and Logistics Company, offers secure and reliable delivery of consignments to over 35,902 locations in India, across the length and breadth of the Country. As part of the DHL Group, Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories and offers an entire spectrum of distribution services including air express, freight forwarding supply chain solutions and customs clearance. Your Company continues to drive First Choice and NPA initiatives. First Choice is a systematic and sustainable approach to transform the business by aligning it to the customers needs on a continuous basis. First Choice is an initiative that will transform the way your Company does business and will enable your Company to consistently deliver a superior service experience to our customers to become their first choice. NPA aims at gauging customers loyalty and delivers a Net Promoter Score which is an international benchmark for customer advocacy. NPA is a twostep customer call process, which identifies customer issues that needs to be addressed. Implementation of First Choice and Net Promoter Approach programs were designed to improve the service quality and ability to capture `Voice of the Customer in a systematic way in order to bring in long-lasting customer benefits and strengthen the brand experience. Your Company, has an unmatched infrastructure, extensive reach, a fleet of three Boeing 737 and four Boeing 757 freighters offering a revenue payload of over 370 tonnes per night, a flotilla of over 6,272 vehicles, 365 facilities including 56 domestic warehouses and 12 express hubs and over 7,792 committed and trained Blue Darters driven by a unified passion of delivering service excellence and value. During the year under review, your Company carried over 988.5 lacs domestic shipments and over 8 lacs international shipments weighing over 423,000 tonnes. FACILITIES / INFRASTRUCTURE During the year, your Company added 53 new and additional facilities and 14 replacement facilities taking the total number of facilities to 365, with a total area of over 18.65 lacs sq.ft. across the country. During the year, your Company added warehouses at various locations viz; Pune, Baroda, Ahmedabad, South Delhi, Jalandhar, Lucknow etc. Your Company plans to strengthen and consolidate its existing infrastructure, air and ground fleet. AVIATION SYSTEM The Companys ACMI Contract with Blue Dart Aviation Limited, its Associate Company for dedicated air carriage capacity, continued its strong support in sustaining Blue Darts leadership position through its unique aviation network with a fleet of 4 Boeing 757 and 3 Boeing 737200 freighters, the only domestic freighter airline network in the Indian skies. During the year, your Company granted an unsecured loan of ` 8,943 lacs to Blue Dart Aviation Ltd. including loan of ` 2,755 lacs towards prepayment of loan taken from the Bank to meet its financial requirements in respect of infrastructure expansion for its dedicated air cargo services under an ACMI Agreement. The tenure of this loan does not exceed 7 years. The loan carries an interest computed at an average base rate of IDBI Bank and ICICI Bank with an interest re-set bi-annually. The loan provided to Blue Dart Aviation Ltd. is in the best interest of the Company since Blue Dart Aviation Ltd. operates air cargo capacity dedicated for the Company through its network of scheduled night operations which is not available on any other commercial flights in the Country. Blue Dart Aviation Ltd. posted excellent technical dispatch reliability (TDR) of 98.95% for B737 and 99.42% for B757 fleet, with an overall TDR of 99.26%. During the year, stringent organisational and financial audits of Blue Dart Aviation were undertaken by the regulator without any major observations. Blue Dart Aviation Limited further strengthened its flight operations capability, achieving first CAT III operation of its B757-200 aircraft on December 23, 2011, to enable take off and landing in low visibility conditions. New high tech main deck loaders were introduced to bring about greater efficiency and reduce turnaround time of an aircraft. In Hyderabad, Blue Dart Aviation Limited re-located to larger, dedicated operations facility shared with Blue Dart Express for greater operational synergy.
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DIRECTORS REPORT
Blue Dart Aviation Ltd. continued its focus on Go-Green initiatives launched in the year 2009 to spread awareness amongst employees on `Global Warming and commenced implementation of Project Golden Drops to reduce aircraft fuel consumption through Auxiliary Power Unit (APU) monitoring and reduced usage and various other aircraft maintenance activities. FINANCE Your Companys financial position is robust and it continues to enjoy zero-debt status. During the year, your Company managed its surplus funds efficiently by investing into various high rated debt schemes (liquid category) of mutual funds for optimum working capital management. Liquidity in the Balance Sheet requires to be balanced between earning adequate returns and the need to cover adequate financial risk. The Companys internal accruals adequately supported working capital requirements, capital expenditure and dividend payments. The year under review was characterised by rising interest rates and tight liquidity conditions in the overall monetary system due to which interest rates hardened across maturities. During the year, timely positioning of the portfolio in shorter maturity assets viz; Liquid Mutual Funds and Bank Fixed Deposits enabled your Company to take advantage of rising interest rates and improving yields. In a challenging global and domestic market scenario, your Company efficiently managed its working capital which is considered to be the best in the industry and within the benchmark laid down by the Global Parent Group. The Companys Earnings Per Share increased by 29.54% during the year to ` 51.52 per share as compared to ` 39.77 per share for the previous year. CREDIT RATING Your Company continues to enjoy highest credit quality rating for its commercial paper programme/ short-term debt programme: 1. ICRA A1+ (ICRA A one plus) assigned by ICRA Ltd. (an Associate of Moodys Investors Service) for Companys commercial paper/ short-term debt programme of ` 2,500 lacs (outstanding ` Nil). The rating indicates highest credit quality for the short term instruments. 2. Fitch A1+(ind) (A one plus (ind)) assigned by Fitch Ratings India Private Ltd. for the Companys short-term programme of ` 3,000 lacs (outstanding ` nil), indicating the strongest capacity of timely payment of its financial commitments. ICRA has assigned ICRA AA (ICRA double A) (long term rating) to the Companys Bank limits (working capital) of ` 3,615 lacs (including fund based and non- fund based limits). The rating indicates the high credit quality rating to long term debt instruments. ICRA also assigned ICRA A1+ (ICRA A one plus) (short term rating) for the said limits. The rating indicates highest credit quality rating assigned by ICRA to short term instruments and carries lowest credit risk.
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SUBSIDIARY AND ASSOCIATE COMPANY The audited statements of accounts for the year ended December 31, 2011 of Concorde Air Logistics Ltd., the Companys Wholly-owned Subsidiary, together with the reports of Directors and Auditors, as required pursuant to the provisions of Section 212 of the Companies Act, 1956, are attached. The Consolidated Financial Results represents those of Blue Dart Express Limited and its Wholly-owned Subsidiary, viz; Concorde Air Logistics Ltd. and its Associate Company, Blue Dart Aviation Ltd. to the extent of 49% shareholding of Blue Dart Express Ltd. into Blue Dart Aviation Ltd. The Company has consolidated its results based on the Accounting Standard on Consolidation of Financial Statements (AS-21) and Accounting Standard on Accounting for Investments in Associates in Consolidated Financial Statements (AS-23) issued by the Institute of Chartered Accountants of India. DHL EXPRESS (SINGAPORE) PTE. LTD., PROMOTER SHAREHOLDER As you are aware, DHL Express (Singapore) Pte. Ltd. holds 81.03% of the Equity Capital of the Company. The acquisition of majority shares by DHL Express (Singapore) Pte. Ltd., during the year 2005, provides the Company and its customers with a firm strategic advantage. The service offerings that emanates from both the organisations cover the entire spectrum of distribution within India and, between India and the rest of world. Blue Dart is a leading brand in the country with an unmatched domestic network, infrastructure and people. DHL is an acknowledged global leader with a strong and long-standing presence in India. Together, both present a powerful backbone to business and trade success for India and its trading partners. In our efforts to constantly collaborate and optimize more with support from our group companies viz; DHL Express, DHL Supply Chain, DHL Global Forwarding, the India Steering Committee made significant progress in the past year to maximise synergies amongst cross business functional units with focus on improving infrastructure, service quality and cost efficiencies. OUTLOOK FOR THE FUTURE The US-Iran-Israel standoff poses a risk to the Indian economy in terms of rising crude oil prices. However, the Indian logistics industry has been growing steadily despite the economic turbulence and its growth momentum is expected to remain stable. Your Company has, over the last 28 years, traversed every economic cycle and emerged as a benchmark for the logistics industry. Factors contributing to this success inter-alia included; early embracing of technology when many companies relied on manual processes, being the first logistic Company to introduce Employee Satisfaction and Customer Satisfaction Surveys in India which resulted into a motivated workforce and an ever increasing loyal customer base. Over the years, your Company also set up Indias largest and most successful Cargo Aviation Infrastructure and being re-certified to the ISO 9001-2008 standards.
DIRECTORS REPORT
Over the last few years, demand for world-class logistics and warehousing facilities have grown tremendously on the back of a growing domestic consumption story. Resultantly, a whole new world of opportunities in distribution has opened up ranging from mobile phones and credit cards to pharmaceuticals and auto components. Express Industry is a key enabler in facilitating trade and commerce. The opportunities are plenty for the express industry in India as the current logistics spend in India is close to 13%2 of the GDP compared to a notably lesser percentage in more developed economies. The Indian logistics industry is poised for a significant leap forward in the years to come. The proposed introduction of common Goods and Services Tax (GST) would create favourable environment for the logistics industry. In 2012, your Companys key focus areas would be to improve Market Share, enhance Service Quality, improve Loyalty through Customer Centricity, enhance Profitability and Motivate People. Your Company would continue to focus on cost efficiency measures and aim at overall financial discipline. Your Company firmly believes that, while focus on driving core revenues and keeping costs down are important, success would be achieved by ensuring that service quality through our highly engaged and passionate people, remains of the highest order. Your Company anticipates promising growth in Tier-II and Tier III markets and has taken suitable measures to remain ahead on the growth curve. The other key drivers that would contribute growth in the logistics market include upcoming freight corridor project, building of logistics hubs and warehouses, port development, technology upgrades, investment by private players and also the impending industry status for the logistics sector. With customers need for flexibility and choice in mind, Blue Darts future plans would continue to focus on reach expansion, transit time improvements, small towns (Tier-II and III) activation, servicing emerging industry verticals and strengthening channels. Your Company is ideally placed in the Indian market to facilitate trade and commerce in our country with a trained and committed employee force of over 7,792 people, latest state-of-the art technology, integrated air and ground infrastructure, wide geographical coverage to support Indias growth and development, distribution and third party logistics and supply-chain management needs of the industry. Lack of quality infrastructure has been an issue which has been impeding the seamless growth of the economy and the country through decades. The poor condition of roads and highways leads to higher operating costs, which in turn, often increases maintenance and poor turnaround time. The Government has seriously undertaken infrastructure challenges and is drawing up plans for developing and upgrading infrastructure the Golden Quadrilateral, North-South and East-West corridors,
Sources : 2 - McKinsey Blue Dart Express Limited | Directors Report | Annual Report 2011
new Greenfield airports, multi-modal logistics parks and dedicated rail freight corridors. Effective implementation of the above infrastructure initiatives is expected to benefit your Company. Your Company is geared to face challenges of the Year 2012. Your Directors look forward to improved performance over the coming years. AWARDS AND RECOGNITIONS Our innumerable efforts in the pursuit of endless excellence were recognised throughout the year 2011 and our position as an industry leader was strengthened by accolades received from several industry bodies and customers. Your Company won serveral awards to validate its Brand Equity and Leadership, Human Resource Philosophy, Operational Efficiency and Corporate Governance and it is heartening to note that numerous industry bodies and customers validate our stupendous efforts. Efforts made by your Company have gained wide recognition. The express major benchmarked to international standard and won serveral brand leadership awards, Brand Excellence in Logistics - CMO Asia Awards, Best Air Express Provider of the Year Domestic - 5th Express, Logistic & Supply Chain Conclave, Best HR Practices in line with Strategy - 5th Employer Branding Awards 2010-2011 and a recognition as one of `Indias Best Companies to Work for 2011; and Innovative Logistics Company of the Year - 5th Express, Logistic & Supply Chain Conclave for Blue Dart - DHL. During the year, Mr. Anil Khanna, Managing Director was conferred with the `CEO with HR Orientation award at the Asia Pacific HRM Congress and Mr.Yogesh Dhingra, COO & Finance Director, was conferred the CFO 100 Recognition of Excellence for his exceptional contribution to corporate finance. Your Company was voted a Superbrand, sixth time in row and for the sixth consecutive year, your Company became recipient of the Readers Digest Most Trusted Brand Gold Award. For the second time in a row, your Company was validated by Customers as Star Brand and Power Brand. DIRECTORS During the year, Mr. Roger Crook, CEO of DHL Express, Asia Pacific and the Eastern Europe, Middle East and Africa Regions (EEMEA) and a nominee of DHL Express (Singapore) Pte. Ltd. who was appointed as an Additional Director with effect from February 1, 2011 was appointed as a Director of the Company in the Annual General Meeting held on April 26, 2011. Mr. Crook, tendered his resignation as a Director with effect from June 30, 2011. The Board accepted his resignation and placed on record, its sincere appreciation and thanks for his valuable contribution during his tenure as a Director. Consequently, Mr. Christopher Ong, an Alternate Director to Mr. Roger Crook, ceased to be a Director with effect from June 30, 2011 under the statutory provisions of the Companies Act, 1956.
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DIRECTORS REPORT
Mr. Jerry Hsu, CEO, DHL Express Asia Pacific and a member of the DHL Express Global Management Board and a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Additional Director with effect from June 30, 2011. Mr. Jerry Hsu holds office up to the date of forthcoming Annual General Meeting of the Company. The Company has received a notice under the provisions of Section 257 of the Companies Act, 1956, for the appointment of Mr. Jerry Hsu as a Director of the Company. The resolution seeking approval of shareholders for his appointment has been incorporated in the Notice of forthcoming Annual General Meeting along with brief resume of Mr. Jerry Hsu. Mr. Christopher Ong, a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from July 1, 2011. Mr. Christopher Ong, tendered his resignation as an Alternate Director with effect from September 27, 2011. The Board accepted his resignation and placed on record, its sincere appreciation and thanks for his valuable contribution during his tenure as a Director. Mr. George Berczely, Vice President Business Planning and Performance Management for DHL Asia Pacific and a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from September 27, 2011. In the Board Meeting of the Company held on January 31, 2012, the Board of Directors approved re-appointment of Mr. Anil Khanna as the Managing Director of the Company for a further period of three years with effect from February 21, 2012 to February 20, 2015, subject to the approval of the members of the Company. In accordance with the provisions of the Companies Act, 1956, and Articles of Association of the Company, Mr. Clyde Cooper and Mr.Suresh Sheth, Directors, retire by rotation at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. AUDIT COMMITTEE The Audit Committee comprises of three Non-Executive Directors, viz. Mr.Sharad Upasani, Mr. Malcolm Monteiro and Mr. Suresh Sheth. The Chairman of the Committee is Mr. Sharad Upasani. Mr. Tushar Gunderia, the Company Secretary, acts as the Secretary to the Audit Committee. The terms of reference of the Audit Committee are in accordance with the provisions of Section 292A of the Companies Act, 1956 and Clause 49 of the Listing Agreement pertaining to corporate governance norms. The permanent invitees to the Audit Committee are Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra, Finance Director and Chief Operating Officer. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956, your Directors confirm that;
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(i) in the preparation of annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures; (ii) Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that year; (iii) Directors have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) Directors have prepared the annual accounts on a going concern basis. LISTING ARRANGEMENT The Companys Equity Shares are listed on The Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). The Company has paid its Annual Listing fees to the above stock exchanges for the Financial Year 2011- 2012. CORPORATE GOVERNANCE The Company is committed to maintain the highest standards of Corporate Governance. Your Company believes that Corporate Governance is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders. Your Company adopts high standards of Corporate Governance in all areas of its functioning with strong emphasis on transparency, integrity and accountability. Your Company adheres to the requirements set out by the Securities and Exchange Board of India (SEBI) Corporate Governance practices and has implemented all the stipulations as prescribed. A separate Section on Corporate Governance, along with a certificate from the Auditors confirming compliance is annexed and forms part of the Directors Report. A detailed review of the operations, performance and future outlook of the Company and its businesses is given in the Management Discussion and Analysis Report which forms an integral part of this Report and is set out as a separate Section to this Annual Report. CEO AND CFO CERTIFICATION In accordance with the provisions of Listing Agreement pertaining to corporate governance norms, Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra, Finance Director and Chief Operating Officer, have certified, inter-alia, about review of financial statements and establishing
DIRECTORS REPORT
and maintaining internal controls for the financial reporting for the year ended December 31, 2011. The said certificate forms an integral part of the Annual Report. FIXED DEPOSITS Your Company has not accepted any fixed deposits under the provisions of Section 58A of the Companies Act, 1956. AUDITORS The Statutory Auditors, M/s. Price Waterhouse, Chartered Accountants, (Firm Registration no. 301112E), retire at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Company has received necessary certificate from them confirming that their re-appointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of Directors recommends re-appointment of M/s.Price Waterhouse, Chartered Accountants, (Firm Registration no. 301112E), as Statutory Auditors of the Company subject to necessary approval from the Shareholders of the Company. HUMAN RESOURCE DEVELOPMENT Our employees continue to be our core strength and we continue to focus on enhancing and developing their capabilities. Employees are the backbone of any good organization. `Our People are our biggest and best assets. Our `People First philosophy continues to be our bedrock of success. Your Companys Human Resources Department (HRD) pays close attention on grooming and developing employees who are committed and motivated to do their best. During the year, several initiatives were undertaken by your Companys HRD for employees development and welfare and in the areas of employee recognition and growth. The Company also initiated various measures to enhance existing skill sets of high potential employees. People First policies have always been an integral part of the core values of Blue Dart. The highly motivated and passionate employee environment was amply reflected in Employee Satisfaction Survey, in which `Pride in working for Blue Dart remained the highest scoring dimension having a mean score of 4.84 (on a scale of 1 to 5). In the 2011 ESS survey, 99.17% eligible employees participated in our annual survey. The companys overall mean satisfaction score increased from 4.55 to 4.59. Pride in Working for Blue Dart remains the highest scoring parameter with a mean score of 4.84 followed by Job Secured with good performance with a mean score of 4.79 while Blue Dart doing a good job for customers with a mean score of 4.78. These ratings are a testimony to the strong People First policies of the Company. In the year 2011, Blue Dart won the prestigious recognition of being One of Indias best Companies to work for consecutively for the second time in row. During the year, besides the Team Briefing sessions conducted by the Managing Director, the Company continued its focus on Training and Development of people through internal and external management development programs. As part of the Culture Building initiatives, the Company follows a policy called People First as Company strongly believes that healthy and content workforce is the key to any organisation success. The Company undertook initiatives to have fun at work place and to generate positive energy amongst its employees. Few of the activities undertaken during the year were viz; Holi celebration, Womens Day Special, Dandiya Night, Chess Tournaments, Cricket Match, Friendship Day, Independence & Republic Day Celebrations, Diya painting Competition, Fun and Games for Kids, Diwali Celebration and Christmas Celebration. Blue Darts anniversary is celebrated all across the country with high spirit and fervor. In addition to cultural Celebrations, your Company also undertook various Work-Life-Balance initiatives to help its employees strike a balance between their personal lives and work lives. Few of the Initiatives organised at the Head Office were; Stress Talk: To help the employees cope with stress which has become an integral part of our daily life, a talk on Stress Management was organised through Seven Hills Hospital. This program was very well appreciated and the feedback received from the employees on the Stress Session was overwhelming. A health talk on Yoga was organised for the employees. To recognise good work done by the employees, 850 employees were awarded Bravo Blue Darter Awards and 58 employees were awarded Super Darter Awards. Your Company would continue to invest in its people and remain an Employer of Choice and would focus on retaining and attracting the right talent. EMPLOYEES Your Directors place on record their deep appreciation for the contribution made by the employees of the Company at all levels. Information on the particulars of employees remuneration as per Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975, forms part of this Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the report and accounts are being sent to all shareholders of the Company, excluding the Statement of Particulars of Employees which is available for inspection at the Registered Office of the Company during working hours. Any shareholder interested in such particulars may inspect the same.
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DIRECTORS REPORT
Units celebrated the `Global Volunteer Day in September 2011 with participation of more than 8,000 employees across all Business Units in India in activities which ranged from blood donation drives (in 40 centres), sponsoring trees (more than 10,560 trees sponsored), drawing competitions (for more than 2500 children in 3 cities) and donating edibles, electrical appliances, linen and other necessities to various old age / childrens homes. ACKNOWLEDGEMENT The Board of Directors wishes to express its sincere appreciation and take this opportunity to thank all its customers, suppliers, banks, financial institutions, solicitors, advisors, the Government of India and concerned State Governments and other government departments and authorities for their consistent support and co-operation to the Company. Your Directors also wish to place on record their deep appreciation for an exemplary contribution of employees at all levels and acknowledge the services rendered by the employees of the company for the satisfactory performance of the Company. The enthusiasm and unstinting efforts of the employees enabled the Company to remain as a leading player in the Express Industry. We are also deeply grateful to our Shareholders for the confidence and faith that they have always placed in us.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND EXPENDITURE The particulars regarding foreign exchange earnings and expenditure are annexed hereto as Annexure A and forms part of this Report. Since your Company does not own any manufacturing facility, the other particulars relating to conservation of energy and technology absorption stipulated in the Companies (Disclosure of Particulars in the Report of the Board of Directors Rules, 1988) are not applicable. CORPORATE SOCIAL RESPONSIBILITY (CSR) Your Company as a socially responsible corporate has undertaken numerous steps to give back to the society in whatever small way it can. The following were the activities undertaken by your Company: Blue Darts commitment towards community causes has been unwavering since its inception in 1983. Blue Dart as a socially responsible corporate has an in-house sustainability team responsible for identifying and addressing various sustainability issues and supporting initiatives which make the world a better place for future generations. As part of the DHL Group and in line with its CSR platform, Blue Darts major focus areas are: - - - Education (GoTeach) Environment (GoGreen) Disaster Management Response (GoHelp)
The Blue Edge Empowering Lives programme, a 6months course, continues to benefit young lives from the marginalised segment of our society. Blue Edge programme completed its 9th batch in Mumbai and its 10th batch is underway. In April 2011, the programme was extended to Chennai and completed its 1st batch. The 2nd batch began in October 2011 and is progressing well. Blue Dart undertook various initiatives to put environmental concerns in the spotlight through its GoGreen events viz; Earth Day, Volunteer Day, Power Saver-Initiative, GoGreen drives, etc. Blue Dart (along with DHL Express, DHL Supply Chain and DHL Global Forwarding) also supported empowerment of women and communities by helping generate funds through stall activities in the office premises under GoHelp. During the year, your Company along with other Business
For and on behalf of the Board of Directors,
Sharad Upasani Chairman Malcolm Monteiro Director Clyde Cooper Director Mumbai, January 31, 2012
Anil Khanna Managing Director Jerry Hsu Director Suresh Sheth Director
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ANNEXURE TO THE DIRECTORS REPORT
ANNEXURE A
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
A.
Conservation of Energy
Not applicable
B.
Technology Absorption
Not applicable
C.
Foreign Exchange Earnings & Outgo
Earnings in Foreign Currency Earnings in foreign currency during the year were ` 1,783 (lacs) [previous year: ` 1,132 (lacs)] Expenditure in Foreign Currency Expenditure in foreign currency during the year was ` 173 (lacs) [previous year: ` 42 (lacs)]
Blue Dart Express Limited | Annexure to the directors report | Annual Report 2011
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Report on Corporate Governance
1. Blue Darts philosophy on Corporate Governance Corporate Governance is the mechanism by which the values, principles, policies and procedures of the Organisation are inculcated and manifested. Corporate governance provides visionary leadership and clairvoyance for all round development and enrichment of all stakeholders whose interests have converged into the corporate edifice. The essence of good corporate governance is to ensure trustworthy relations between the corporation and its stakeholders. Therefore, good governance involves a lot more than just compliance. Good corporate governance is a culture and a climate of Consistency, Responsibility, Accountability, Fairness, Transparency and Effectiveness that is promoted throughout the business organisation. Good governance cannot be mandated, it should flow from within the business organisation and should be integrated with corporate culture. This not only helps make the world better and more sustainable, but it also reflects good business sense. The basic philosophy of Corporate Governance at Blue Dart is to achieve business excellence and to create and enhance value for its Shareholders, Customers, Employees and Business Associates and thereby make a significant contribution to the economy. The Board of Directors of the Company continues to lay great emphasis on the broad principles of Corporate Governance. The Board of Directors has a basic responsibility to ensure sustainable improvement in corporate valuations by providing strategic guidance and oversight regarding management decisions. The quality of their decision is critically dependent on the quality of information they have. Establishing a culture that sets the right tone at the top is critical for establishing the `trust for a corporation with all its stakeholders. For Blue Dart, Corporate Governance is a continuous journey, seeking to provide an enabling environment to harmonise the goals of maximising stakeholder value and maintaining a customercentric focus.
Mr. Hsu is also responsible for China, Japan, Korea, Hong Kong, Taiwan, South East Asia, India and South Asia, Oceania and other markets and territories in the region. In his former role as the President of DHL Express Greater China, Mr. Jerry Hsu supported in guiding DHLs Greater China Area to strong double-digit growth and consistent generation of more than US$1.5 billion sales turnover over the last few years. He was instrumental in developing DHL Express market leadership position in the Areas key markets of Hong Kong and Taiwan, as well as China, the companys fastest-growing markets. Under Mr. Hsus leadership, more than US$1.3 billion has been invested in the Greater China Area. Mr. Jerry Hsu joined DHL Express in January 2001 as an Area Director responsible for Newly Industrialized Economies (NIE), which included Hong Kong, Singapore, South Korea and Taiwan. In September 2002, he was appointed Regional Director responsible for Greater China, Korean Peninsula and Mongolia before being named President for the Greater China Area. Prior to joining DHL Express, Mr. Jerry Hsu held various senior positions at U.S.based DaimlerChrysler Corporation including Vice Chairman of Beijing Jeep Corporation, Vice President of Sales and Marketing Asia Pacific and General Manager of Japan, Taiwan and China subsidiaries. Mr. Jerry Hsu graduated from the National Chengchi University in Taiwan, and holds a Masters degree in International Economics and Politics from the University of Detroit Mercy. Mr. Jerry Hsu, Director, is not a member of any other committees, as contemplated under clause 49 of the Listing Agreement and does not hold any shares in the Company. Mr. Hsu and any of the other Directors of the Company do not have any inter-se relationship. Mr. Christopher Ong, a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from July 1, 2011. Mr. Christopher Ong, tendered his resignation as an Alternate Director with effect from September 27, 2011. Mr. George Berczely, a nominee Director of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from September 27, 2011. Mr. George Berczely is currently Vice President - Business Planning and Performance Management for DHL Asia Pacific. He is responsible for Mergers and Acquisitions, Partnerships and Planning and Performance Management. Prior to joining Deutsche Post DHL in 2004, Mr. Berczely spent about 5 years with McKinsey & Company, Inc., as a strategy consultant specialised in the Logistics sector. He then joined Deutsche Post DHL as Director, Corporate Strategy, where he
2. Board of Directors During the year, Mr. Roger Crook, Chief Executive Officer (CEO) of DHL Express, Asia Pacific and the Eastern Europe, Middle East and Africa Regions (EEMEA) and a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Additional Director with effect from February 1, 2011 and appointed as Director of the Company in the Annual General Meeting held on April 26, 2011. Mr. Crook, resigned as a Director with effect from June 30, 2011. Consequently, Mr. Christopher Ong, an Alternate Director to Mr. Roger Crook, ceased to be a Director with effect from June 30, 2011 under the statutory provisions of the Companies Act, 1956. Mr. Jerry Hsu, CEO, DHL Express Asia Pacific and a member of the DHL Express Global Management Board and a nominee Director of DHL Express (Singapore) Pte. Ltd. was appointed as an Additional Director with effect from June 30, 2011.
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Blue Dart Express Limited | report on corporate governance | Annual Report 2011
was responsible for strategy and M&A projects. He then moved to DHL Express in 2007 to lead a project to increase operational efficiency, and took on a role as CFO for Network Operations & Aviation, Asia Pacific and Emerging Markets, in 2009. Mr. Berczely is a British and Austrian citizen, who has lived and worked in South America, Europe and Asia. He holds an MBA from INSEAD and speaks six languages. In the Board Meeting of the Company held on January 31, 2012, the Board of Directors approved re-appointment of Mr. Anil Khanna as Managing Director of the Company for a further period of three years with effect from February 21, 2012 to February 20, 2015, subject to approval of the members of the Company. Mr. Anil Khanna is a graduate from the St. Stephens College, Delhi and holds an MBA degree in Marketing and Finance from UBS, Chandigarh. Mr. Khanna has 32 years of experience in various industries and has been with Blue Dart for over 20 years. Mr. Anil Khanna took over as the Managing Director in 2007 and since then has led the organisation successfully with clear strategic vision, focus on customers and inclusive execution of customer centric value propositions, thereby consolidating Blue Darts leadership position in the market place. Under his leadership, Blue Dart increased its market share in the Air and Ground Express and broadened its strategic focus from being an air express company since inception to being a company that straddles customer offerings across time definite, priority, deferred as well as focus on industry specific solutions in the air and ground express segments. Mr. Khanna also possesses varied experience in the paints and varnishes, consumers durables, auto components and construction chemical industries. In accordance with the provisions of the Companies Act, 1956, and Articles of Association of the Company, Mr. Clyde Cooper and Mr. Suresh Sheth, Directors, retire by rotation at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Mr. Clyde Cooper is one of the founding members of Blue Dart. Mr. Cooper was instrumental in drawing the vision that differentiated Blue Dart from other companies and set it on the path of definitive success. He charted the turnaround strategy of the Company in the year 1997 and transformed it into a consistently profitable Company within two years, propelling Blue Dart into a dominant leadership position in the Express Industry in the South Asian - Region. Mr. Cooper has over 31 years of experience in the Air Cargo, Aviation and Express Industry and has been instrumental in leading several initiatives in the express industry in India viz; the concept of On Board Couriers, setting up the logistics for the Hub-and-Spoke system and launching Indias first and, till date, only express airline. Mr. Clyde Cooper is an Economics graduate from Mumbai University.
Directorship in other Companies Blue Dart Aviation Ltd. Mr. Clyde Cooper, Director, is not a member of any other committees, as contemplated under clause 49 of the Listing Agreement, other than a member of Audit Committee and Remuneration Committee of Blue Dart Aviation Ltd. and does not hold any shares in the Company. Mr. Cooper and any of the other Directors of the Company do not have any inter-se relationship. Mr. Suresh Sheth, is a Commerce graduate from Sydenham College of Commerce and Economics and a Fellow Chartered Accountant (FCA) and has been a Member of the Institute of Chartered Accountants of India (ICAI) for the past 41 years. Mr.Suresh Sheth is a partner in M/s. Sheth & Company, a firm of Chartered Accountants. His area of specialisation include Audit, Taxation and Financial Consultancy. Mr. Sheth has travelled worldwide extensively in his professional capacity. He has been associated with Blue Dart since inception and has also been associated with various charitable institutions.
Directorship in other Companies 1. Antron (India) Pvt. Ltd. 2. Antelec Ltd. Mr. Suresh Sheth, Director, is not a member of any other committees, as contemplated under clause 49 of the Listing Agreement, other than a member of Audit Committee, Compensation Committee and Investors Grievance Committee of Blue Dart Express Ltd. and does not hold any shares in the Company. Mr. Sheth and any of the other Directors of the Company do not have any inter-se relationship. As on December 31, 2011, the composition of the Board of Directors consists of one Executive Director and five NonExecutive Directors. All key decisions are taken only after detailed deliberations and discussions by the Board. The Board of Directors possesses adequate experience, expertise and skills necessary to manage the affairs of the Company in the most efficient manner. The Board acts with autonomy and independence in the strategic decision-making process and discharging its fiduciary responsibilities. The DHL nominee Directors hold the firm belief that DHLs best interests are aligned with the continued growth and success of the Company.
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Board Procedure The Board of Directors are presented with all the relevant information on vital matters that affect the working of the Company as well as those which require deliberations at the highest level. It is ensured that information, as required under Annexure I A to the provisions of Clause 49 of the Listing Agreement, is made available to the Board of Directors enabling them to discharge their functions effectively. There is no relationship between the Directors inter-se. The size and composition of the Board conforms to the requirements of Corporate Governance norms as stipulated under the provisions of the Listing Agreements entered into with the Stock Exchanges. The meetings of the Board of Directors are scheduled well in advance and generally held at the Companys Registered Office in Mumbai. The Notice of the Board Meeting and the Board Agenda with detailed enclosures are sent in advance to all the Directors. During the year under review, five Board Meetings were held, viz. February 1, 2011, April 26, 2011, July 19, 2011, October 21, 2011 and December 16, 2011. The details of attendance of each Director at the Board Meetings, last Annual General Meeting, and number of other directorship and membership in Committees thereof, are as under:
Name of Director Position Designation Attendance Directorship in Committee Particulars Other Indian Membership in Other Companies Indian Companies Board Last AGM Member Chairman Meetings
Mr. Sharad Upasani Mr. Anil Khanna Mr. Malcolm Monteiro Mr. Clyde Cooper Mr. Suresh G Sheth Mr. Christopher Ong ** Mr. Roger Crook* Mr. Jerry Hsu *** Mr. George Berczely ****
*1)
Independent & Non-Executive Director Executive Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director Independent & Non-Executive Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director
Chairman Managing Director Director Director Director Alternate Director Director Director Alternate Director
5 5 5 1 5 2 - - 2
Yes Yes Yes No Yes Yes No No No
1 Nil 1 1 2 Nil Nil Nil Nil
Nil 1 1 1 Nil Nil Nil Nil Nil
Nil Nil Nil Nil Nil Nil Nil Nil Nil
Mr. Roger Crook, CEO of DHL Express, Asia Pacific and the Eastern Europe, Middle East and Africa Regions (EEMEA) and a nominee of DHL Express (Singapore) Pte. Ltd. tendered his resignation as a Director with effect from June 30, 2011.
**2) Consequent to the resignation of Mr. Roger Crook as a Director with effect from June 30, 2011, Mr. Christopher Ong, an Alternate Director to Mr. Roger Crook, ceased to be a Director with effect from June 30, 2011. ***3) Mr. Jerry Hsu, CEO, DHL Express Asia Pacific and a member of the DHL Express Global Management Board and a Nominee Director of DHL Express (Singapore) Pte. Ltd, has been appointed as an Additional Director with effect from June 30, 2011. **4) Mr. Christopher Ong, a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from July 1, 2011. **5) Mr. Christopher Ong, a nominee of DHL Express (Singapore) Pte. Ltd. tendered his resignation as an Alternate Director to Mr. Jerry Hsu with effect from September 27, 2011. ****6) Mr. George Berczely, Vice President Business Planning and Performance Management, DHL Asia Pacific and a nominee of DHL Express (Singapore) Pte. Ltd. was appointed as an Alternate Director to Mr. Jerry Hsu with effect from September 27, 2011. 7) 34 The Directorships held by Directors as mentioned above, includes Directorships in Private Limited Companies and Companies Registered under Section 25 of the Companies Act, 1956, but do not include Directorships in Foreign Companies.

(h) Reviewing related - party transactions. (i) Approval for payment to the Statutory Auditors for any other services rendered by the Statutory Auditors. (j) Reviewing with the Management, performance of Statutory and Internal Auditors, and adequacy of internal control systems. (k) Reviewing the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure, coverage and frequency of the internal audit. (l) Discussions with internal auditors on any significant findings and follow-up thereof. (m) Discussions with Statutory Auditors before the audit commences, about the nature and scope of the audit, as well as postaudit discussion, to ascertain any area of concern. The Audit Committee of the Company meets and interacts at least twice a year with the Senior Management Personnel, which gives the Audit Committee a deeper insight into the workings of major departments and regions. During the year under review, seven Audit Committee Meetings were held, viz; February 1, 2011 (two meetings, one of which was with the Senior Management of the Company), April 26, 2011, July 19, 2011, October 21, 2011 (two meetings, one of which was with the Senior Management of the Company) and December 16, 2011. The constitution of the Audit Committee and other related information as on December 31, 2011, is as under: Names of Director Position Mr. Sharad Upasani Mr. Suresh G Sheth Mr. Malcolm Monteiro Chairman Member Member No. of Meetings Held Attended 7 7 7 7 7 7
3. Audit Committee The Audit Committee of the Board deals with all matters relating to financial reporting, internal controls, risk management, etc. and reports to the Board from time to time. The Board of Directors of the Company had constituted an Audit Committee at its Board Meeting held on May 8, 2001. Composition The Audit Committee comprises two Independent Non-Executive Directors, viz. Mr.Sharad Upasani and Mr. Suresh Sheth and one Non-Independent and Non-Executive Director, Mr. Malcolm Monteiro. The Chairman of the Committee is Mr. Sharad Upasani. Mr. Tushar Gunderia, Company Secretary, acts as the Secretary to the Audit Committee. The permanent invitees to the Audit Committee Meetings are Mr. Anil Khanna, Managing Director; Mr. Yogesh Dhingra, Finance Director & Chief Operating Officer; the Statutory Auditors and the Internal Auditor. The powers and terms of reference of the Audit Committee are in accordance with the provisions of Clause 49 of the Listing Agreement entered into with the Stock Exchanges and Section 292A of the Companies Act, 1956. The terms of reference inter-alia include the following: (a) Overseeing the financial reporting process and ensuring correct disclosure of financial information. (b) Reviewing with the management, the annual financial statements that specially emphasise on accounting policies and practices, compliance with the accounting standards, qualifications, if any, in the draft audit report and other legal requirements concerning the financial statements. (c) Reviewing the Companys financial and risk management policies. (d) Reviewing the adequacy of the internal audit function including their policies, procedures, techniques and other regulatory requirements and reporting the matter to the Board. (e) Recommending appointment and removal of Statutory and Internal Auditors and recommending their fees. (f) Reviewing the findings of any internal investigation by the Internal Auditors into matters where there is a suspected fraud or irregularities or a failure of internal control systems of a material nature and reporting the matter to the Board. (g) Reviewing with the Management the quarterly financial statements before their submission to the Board for its approval.
4. Compensation Committee The Board of Directors of the Company had constituted a Compensation Committee of the Directors at the Board Meeting of the Company held on May 7, 2002. The Compensation Committee comprises two Independent Non-Executive Directors, viz; Mr. Suresh Sheth and Mr. Sharad Upasani, and a Non-Independent and Non-Executive Director, Mr. Malcolm Monteiro. The Committee is chaired by Mr. Suresh Sheth, Director.
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The details of attendance of each Member at the Compensation Committee Meeting held during the year 2011 are as under: Names of Director Position Mr. Suresh G Sheth Mr. Sharad Upasani Mr. Malcolm Monteiro Chairman Member Member No. of Meetings Held Attended 1 1 1 1 1 1
commission to Mr. Sharad Upasani and Mr. Suresh Sheth, NonExecutive Directors, at such rate as determined by the Board of Directors of the Company and within the ceiling as prescribed under the provisions of the Companies Act, 1956. During the year, the Company paid commission to Mr. Sharad Upasani and Mr. Suresh Sheth, NonExecutive Directors, aggregating to ` 20 lacs for the year ended December 31, 2010. The Compensation Committee Meeting of the Company was held on February 1, 2011. In terms of the Agreements executed with the Company, the details of the terms of remuneration payable to the Managing Director are as under:
The Executive Director is paid remuneration in terms of a resolution passed by the members at the General Meetings. The terms of reference of the Compensation Committee inter-alia includes review and recommendation to the Board of Directors on remuneration payable to the Executive Director. The Ministry of Finance, Department of Company Affairs, had vide its notification dated GSR 580(E) dated July 24, 2003, permitted companies to pay sitting fees up to a maximum of ` 20,000/- per meeting. The Board of Directors of the Company at its Meeting held on October 14, 2003, decided to pay sitting fees of ` 20,000/per meeting to Non-Executive Directors for each meeting of the Board, Audit Committee and Compensation Committee attended by them. DHL nominated Directors do not accept any sitting fees as per their internal guidelines. In terms of the provisions of Clause 49 of the Listing Agreement, the Board is required to have at least one third of the members of the Board as Independent Directors, if the Chairman is Non-Executive. The Companys present Board comprises Mr. Sharad Upasani and Mr. Suresh Sheth, who are Independent Directors on the Board of the Company. Mr. Sharad Upasani, the Independent Director, holds a Masters in Commerce and an LLB degree from Mumbai University, besides an MBA degree from USA. He is now consulting on matters related to Corporate Law and acts as an Arbitrator in corporate disputes. Mr. Suresh Sheth, the Independent Director, is a Commerce graduate from Sydenham College and a Fellow Chartered Accountant (FCA) and has been a Member of the Institute of Chartered Accountants of India (ICAI) for the past 41 years. Mr. Sheth is a partner in M/s. Sheth & Company, a firm of Chartered Accountants. His areas of specialisation include Audit, Taxation and Financial Consultancy. In the Annual General Meeting of the Company held on April 26, 2011, the shareholders had approved the payment of commission to Non-Executive Directors, not exceeding 1% of the Net Profit of the Company in accordance with the provisions of the Companies Act, 1956. For their valuable contribution by way of advice for various project works from time to time, the Company pays a
1. a) Mr. Anil Khanna Managing Director (with effect from April 1, 2011 to February 20, 2012) Basic Salary - ` 5.71 lacs per month
House Rent Allowance - ` 0.825 lacs per month
Special Allowance - ` 2.09 lacs per month In addition to the above amount, Mr. Anil Khanna shall be entitled to the following:
(i) The Companys contribution to Provident Fund, in accordance with the Rules and Regulations of the Company. Such contribution will not be included in the computation of ceiling on perquisites to the extent not taxable under the provisions of Income Tax Act, 1961.
(ii) Gratuity payable at a rate not exceeding half a months salary for each completed year of service. Such amount shall not be included in the computation of ceiling on remuneration as specified under Schedule XIII to the Companies Act, 1956. (iii) Superannuation contribution subject to a maximum ceiling of 15% of basic salary by way of contribution to a fund or an allowance in lieu thereof or a combination of both. Contribution to the superannuation fund will not be included in the computation of ceiling on remuneration as specified under Schedule XIII to the Companies Act, 1956 to the extent it is not taxable as a perquisite under the provisions of the Income Tax Act, 1961. (iv) Encashment of unavailed leave at the end of each year. Such amount shall not be included in the computation of ceiling on remuneration as specified under Schedule XIII to the Companies Act, 1956.
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(v) Re-imbursement of telephone expenses at residence for official purpose. (vi) The Company will provide a chauffeur driven vehicle. (vii) Coverage under the Companys Group Insurance Cover. (viii) Fees of club, subject to a maximum of one club. This will not include admission and life membership fees. (ix) Subscription and Annual Fees for the Corporate Credit Card. (x) The Managing Director would be entitled to an incentive payment, based on the achievement of profitability levels for the year ended December 31, 2011, up to a maximum of ` 73 lacs, as may be decided by the Board of Directors from time to time. (xi) Increment for each year shall be determined by the Compensation Committee and shall be subject to approval of the Board of Directors and members of the Company at the General Meeting of Members. (xii) Such other benefits in accordance with the schemes and rules as applicable from time to time and not exceeding the sum of ` 3.5 lacs per annum. During the term of employment of the Managing Director, if in any financial year, the Company does not earn any profits or earns inadequate profits as contemplated under the provisions of Schedule XIII of the Companies Act, 1956, unless otherwise approved by the Central Government, remuneration shall be paid as per the monetary ceiling prescribed in Schedule XIII to the Companies Act, 1956, or any re-enactment thereof. Severance term agreed between the Company and Managing Director is 6 months notice or payment of 6 months salary in lieu thereof.
(iii) Superannuation contribution subject to a maximum ceiling of 15% of basic salary by way of contribution to a fund or an allowance in lieu thereof or a combination of both. (iv) Encashment of unavailed leave at the end of each year. (v) Re-imbursement of telephone expenses at residence for official purpose. (vi) A chauffeur driven vehicle. (vii) Coverage under Companys Group Insurance Cover. (viii) Fees of club, subject to a maximum of one club. This will not include admission and life membership fees. (ix) Subscription and Annual fees for the Corporate Credit Card. (x) The Managing Director shall be entitled to incentive payment based on the achievement of profitability levels for the year ended December 31, 2011, upto a maximum of ` 73 lacs, as may be decided by the Board of Directors from time to time. (xi) Increment for each year shall be determined by the Compensation Committee and which shall be subject to approval of the Board of Directors and members of the Company at the General Meeting of members. (xii) Such other benefits in accordance with the schemes and rules as applicable from time to time and not exceeding the sum of ` 3.5 lacs per annum.
1. c) Mr. Anil Khanna Managing Director (with effect from April 1, 2012 to March 31, 2013) Basic - ` 7.06 lacs per month
1. b) Mr. Anil Khanna Managing Director (with effect from February 21, 2012 to March 31, 2012) Basic Salary - ` 5.71 lacs per month ` 0.825 lacs per month
House Rent Allowance - ` 0.825 lacs per month
Special Allowance - ` 2.09 lacs per month Sr. Manager Allowance - ` 0.856 lacs per month
House Rent Allowance -
In addition to the above amount, Mr. Anil Khanna shall be entitled to the following:
Special Allowance - ` 2.09 lacs per month In addition to the above amount, Mr. Anil Khanna shall be entitled to the following:
(i) Companys contribution to Provident Fund, in accordance with the Rules and Regulations of the Company. (ii) Gratuity payable at a rate not exceeding half a months salary for each completed year of service. (iii) Encashment of an unavailed leave at the end of each year. (iv) Re-imbursement of telephone expenses at residence for official purpose.
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(i) Companys contribution to Provident Fund, in accordance with the Rules and Regulations of the Company. (ii) Gratuity payable at a rate not exceeding half a months salary for each completed year of service.
(v) A chauffeur driven vehicle. (vi) Coverage under Companys Group Insurance Cover. (vii) Fees of club, subject to a maximum of one club. This will not include admission and life membership fees. (viii) Subscription and Annual fees for the Corporate Credit Card. (ix) The Managing Director shall be entitled to incentive payment based on the achievement of profitability levels for the year ended December 31, 2012, upto a maximum of ` 73 lacs, as may be decided by the Board of Directors from time to time. (x) Increment for each year shall be determined by the Compensation Committee and which shall be subject to approval of the Board of Directors and members of the Company at the General Meeting of members. (xi) Such other benefits in accordance with the schemes and rules as applicable from time to time and not exceeding the sum of ` 3.5 lacs per annum. During the term of employment of the Managing Director, if in any financial year, the Company does not earn any profits or earns inadequate profits as contemplated under the provisions of Schedule XIII of the Companies Act, 1956, unless otherwise approved by any Statutory Authority, as may be required, remuneration shall be paid as per the conditions and monetary ceiling prescribed in Schedule XIII to the Companies Act, 1956, or any re-enactment thereof. Severance term agreed between the Company and the Managing Director is six months notice or payment of six months salary in lieu thereof. The remuneration policy of the Company is performance-driven and is structured to motivate employees, recognise their merits and achievements and promote excellence in their performance. The Compensation Committee of Directors and the Board of Directors of the Company are authorised to decide the remuneration of WholeTime Directors, subject to approval of the Members and the Central Government, if required. The NonExecutive Directors are paid remuneration by way of sitting fees and commission except DHL- nominated Directors who are not paid any sitting fees or commission, as per their internal guidelines. None of the Directors holds any shares of the Company. The Company does not have any stock options scheme.
split and consolidation of share certificates. The Committee also monitors redressal of complaints received from shareholders relating to transfer/transmission of shares, non-receipt of annual reports, and transfer of credit of shares to demat accounts, dividend and other investor-related matters. The Meetings of Investors Grievance Committee are held once in a fortnight to consider matters placed before it. The Committee consists of Mr. Suresh Sheth, Non-Executive Director, acting as Chairman of the Committee and Mr. Anil Khanna, Managing Director. Mr.Tushar Gunderia, Company Secretary, has been designated as the Compliance Officer under the provisions of the Listing Agreements entered into with the Stock Exchanges. During the year under review, 123 correspondences were received from investors. These include 6 complaints received and disposed off during the year ended December 31, 2011. All Investor correspondences have been attended to expeditiously. There were no investors complaints pending as on December 31, 2011. All valid share transfers/transmissions and other requests received during the year were approved and attended to by the Committee. There were no pending requests for transfer of Equity Shares as on December 31, 2011.
The details of Investors Correspondence received during the year were as under: Nature of Correspondence No. of No. of Correspondence Correspondence received resolved/attended Revalidation / Duplicate / Non-Receipt of Dividend Warrants Non-Receipt of Share certificates / Transfers / Transmissions Change of Address Request for loss / duplicate/ replacement of Share Certificates Others * Total 31 18 31 18
23 24
23 24
27
27
123 123
5. Investors Grievance Committee The Investors Grievance Committee of the Company approves and monitors the transfers and transmission of shares and replacement,
* Others include correspondence pertaining to updating new signatures, non-receipt of rejected dematerialisation request forms, registration of Power of Attorneys, procedure for transmission of shares, dividend mandate instructions, request for Annual Reports, letters from SEBI and Stock Exchanges and such other administrative matters.
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The Company and the Registrar & Transfer Agent have attended to most of the investors correspondence within a period of 8 days from the date of receipt of correspondence during the year ended December 31, 2011. M/s. Link Intime India Pvt. Limited acts as the Registrar and Share Transfer Agent of the Company. In accordance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, as amended, the Company has formulated, adopted and implemented the Blue Dart Code of Conduct for Prevention of Insider Trading and the `Code for Corporate Disclosure Practices and it is strictly adhered to by all the designated personnel notified for the purpose of application of the aforesaid Codes. The Investors Grievance Committee monitors the compliance of the provisions of the Blue Dart Code of Conduct for Prevention of Insider Trading and the `Code for Corporate Disclosure Practices. Pursuant to Clause 5A of the Listing Agreements, the Company has initiated the process by sending two reminder letters to those shareholders who have not yet claimed their shares. 6. General Body Meetings a) The details of Annual General Meetings held during the last three years are as under: Location
At the Annual General Meeting held on April 13, 2010: No Special Resolution was passed. At the Annual General Meeting held on April 26, 2011: To approve the mode of payment of remuneration to Non-Executive Directors of the Company in the form of commission for a period of five years from August 1, 2011.
7. Subsidiary Company The Company does not have any material non-listed Indian subsidiary Company whose turnover or net worth (i.e. paid-up Capital and Free Reserves) exceeds 20% of the consolidated turnover or Net Worth of the Company and its subsidiary in the immediately preceding accounting year. The Company monitors performance of its subsidiary, inter-alia, by the following means: The Financial Highlights of the unlisted subsidiary company are reviewed by the Audit Committee of the Company. The Minutes of the Board Meetings of the subsidiary company are placed before the Board Meeting of the Company. The details of any significant transactions and arrangements entered into by the unlisted subsidiary company are placed before the Board of the Company. The Company has its Senior Management personnel on the Board of Directors of its subsidiary company.
AGM for Day & Date Time Financial Year ended
December Wednesday 4:30 p.m. Hotel Le Royal Meridien, 31, 2008 15.04.09 Sahar Airport Road, Andheri (East), Mumbai 400 099 4:30 p.m. Hotel Le Royal Meridien, December Tuesday 31, 2009 13.04.10 Sahar Airport Road, Andheri (East), Mumbai 400 099 December Tuesday 4:30 p.m. 31, 2010 26.04.11 Hotel Hilton Mumbai International Airport Sahar Airport Road, Andheri (East), Mumbai 400 099
8. Disclosures Transactions with related parties, as per requirements of Accounting Standard 18, Related Party Disclosures are disclosed elsewhere in the Annual Report. The Company has not entered into any other transaction of a material nature with the Promoters, Directors or the Management, their subsidiaries or relatives, etc. which may have a potential conflict with the interests of the Company at large. No penalties or strictures were imposed on the Company by any Stock Exchanges, SEBI, or any other statutory authorities on any matters related to capital markets during the last three years. The Company has in place a mechanism to inform the Board about risk assessment and minimisation procedures and periodic review is conducted to ensure that management controls risk through a properly defined framework.
b) All the resolutions set out in the respective Notices were passed by the Members. No Postal Ballot was conducted during the year. None of the resolutions are proposed to be passed by the Postal Ballot method. c) The following Special Resolution was passed by the Members during the previous three Annual General Meetings. At the Annual General Meeting held on April 15, 2009: No Special Resolution was passed.
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9. Code of Conduct Blue Dart has always aspired to the highest standards of quality and ethics in working towards its vision to be a leading player in the express air and an integrated transportation and distribution industry in the country. The cornerstone of our success has been our people who are led by our Guiding Principles. The Board of Directors of the Company has laid down a Code of Conduct for all the Board Members and the Senior Management Team of the Company. The Code of Conduct is also posted on the website of the Company. The Code of Conduct is a comprehensive document that articulates the Companys expectations from its people in practising, by living example, the ethics and values of the organisation to earn the goodwill of its customers and enhance its reputation. All the Board Members and members of the Senior Management have affirmed compliance with the provisions of the Code of Conduct for the year ended December 31, 2011. A certificate from Mr. Anil Khanna, Managing Director, to this effect has been attached to this Report. Pursuant to the requirements of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, as amended, the Company has adopted Blue Dart Code of Conduct for Prevention of Insider Trading in the Equity Shares of the Company. Mr. Tushar Gunderia, the Company Secretary, is the Compliance Officer. This Code of Conduct is applicable to all Directors and designated employees of the Company who are expected to have access to an unpublished price-sensitive information relating to the Company.
For information of investors, the Company also publishes Notice of the Board Meeting in which financial results are proposed to be approved by the Board in a national newspaper, at least seven days in advance. The Quarterly, Half-yearly and Yearly results are published in the newspapers with adequate disclosures for the knowledge of shareholders. The Company does not have a system of intimating shareholders individually about the financial results, but queries, if any, are replied to, immediately. Management Discussion and Analysis Report forms an integral part of the Directors Report.
13. Details of compliance with mandatory requirements and adoption of non-mandatory requirements The Company has complied with all mandatory requirements of Clause 49 of the Listing Agreement with the Stock Exchanges and compliance with the non-mandatory requirements of this clause has been detailed hereunder: The status of compliance with the non-mandatory requirements of Clause 49 of the Listing Agreement is provided below: 1. The Company has a Compensation Committee, the details of which are provided in this Report under the section viz; Compensation Committee. 2. It is always the Companys endeavour to present an unqualified financial statements. There are no audit qualifications in the Companys financial statements for the year under review. 3. Directors attend training programmes/ conferences on relevant subject matters and keep themselves abreast of corporate and industry developments. 4. Directors are fully briefed on all business- related matters, risk assessment and new initiatives proposed by the Company. 5. The Company is committed to maintain the highest standards of honesty, openness and accountability and recognise that each employee of Blue Dart has an important role to play in achieving organisational goals. It is the policy of the Company to encourage employees, when they have reasons to suspect questionable practices, to report those concerns to the Company Management. 6. The Company has in place a Grievance Redressal Program (GRP).The GRP can be used by all employees. The GRP affirms an employees right to appeal on any eligible issue through a process of a systematic review by progressively higher levels of Management. The process guarantees that the issue raised by an employee is reviewed and addressed, resulting in a decision within the guidelines prescribed. Since GRP is working very effectively, a Whistle Blower Policy is not yet envisaged. No personnel of the Company were denied access to the Audit Committee.
10. Auditors Certificate on Corporate Governance As required by the provisions of Clause 49 of the Listing Agreement, the Auditors Certificate is given as an Annexure to the Directors Report.
11. CEO and CFO Certification As required by Clause 49 V of the Listing Agreement, the CEO and CFO certification on the Financial Statements, Cash Flow Statement and Internal Control Systems for financial reporting for the year ended December 31, 2011, has been obtained from Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra, Finance Director and Chief Operating Officer and is incorporated in the Annual Report.
12. Means of Communication The Quarterly, Half-yearly and Yearly results are published in The Economic Times and a regional language newspaper viz; Maharashtra Times. The financial results and press releases are also immediately posted on the Companys website, viz. www.bluedart.com.
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14. General Shareholders Information Annual General Meeting : Tuesday, April 24, 2012 at 3:30 p.m. at Hotel Hilton Mumbai International Airport, Victoria Suite,Sahar Airport Road, Andheri (East), Mumbai 400 099. January 1 to December 31 Schedule of Board Meetings First Quarter ending March 31, 2012 Second Quarter & Half-Year ending June 30, 2012 Third Quarter ending September 30, 2012 Last Quarter & Year ending December 31, 2012 Schedule of Audit Committee Meetings First Quarter ending March 31, 2012 Second Quarter & Half-Year ending June 30, 2012 Third Quarter ending September 30, 2012 Last Quarter & Year ending December 31, 2012 April 17, 2012 to April 24, 2012 April 26, 2012 1.The Bombay Stock Exchange Limited 2. The National Stock Exchange of India Limited Date April 24, 2012 July 24, 2012 October 30, 2012 January 29, 2013 Date April 24, 2012 July 24, 2012 October 30, 2012 January 29, 2013
Financial Year Financial Calendar (tentative and subject to change) :
Financial Calendar : (tentative and subject to change) :
Book Closure period Dividend Payment Date Listing on Stock Exchanges : :
(The Company has paid its Annual Listing fees to the above Stock Exchanges for the Financial Year 20112012) Stock market Performance Stock Code/Symbol ISIN : : BSE : 526612 Symbol BLUEDART Series EQ
NSE : INE233B01017
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Stock Market Data: High and Low quotations of shares at Bombay & National Stock Exchange Year - 2011 BSE NSE High Low High January February 2011 2011 1,189.00 1,050.00 1,478.90 1,469.00 1,684.80 979.95 952.10 960.00 1,330.00 1,261.50 1,430.70 1,186.35 1,050.00 1,477.45 1,468.00 1,687.00 1,120.00 1,110.00 Low 962.30 965.05 964.00 1,301.15 1,261.45 1,426.00
March 2011 May June July 2011 2011 2011
April 2011 1,558.95 1,000.05
1,559.90 1,003.05
August 2011 1,835.00 1,460.00 September 2011 1,757.00 1,588.05 October 2011 1,651.00 1,460.85 November 2011 1,635.00 1,380.00 December 2011 1,605.00 1,388.00 Stock Price Performance in comparison to the BSE Sensex :
1,836.00 1,455.00 1,764.00 1,591.15 1,670.00 1,556.05 1,676.00 1,380.00 1,602.95 1,398.00
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Registrar & Share Transfer Agent
M/s. Link Intime India Pvt.Ltd. C-13, Pannalal Silk Mill Compound, L.B.S. Marg, Bhandup (W), Mumbai 400 078. Phone: 022 2596 3838 Fax : 022 2594 6969 e-mail: [email protected] Share Transfers which are received in the physical form are processed well within the statutory prescribed period from the date of receipt, subject to documents being valid and complete. All share transfers are approved in the Investors Grievance Committee Meeting which is held once in a fortnight.
Share Transfer System
Distribution of Shareholding as on December 31, 2011 No of Shares 1 - 500 No. of Shareholders 5,121 146 80 26 10 14 28 30 5,455 % of Share Holders 93.87 2.68 1.47 0.48 0.18 0.26 0.51 0.55 100.00 Shares held 465,259 113,947 120,105 70,250 35,771 68,740 207,616 22,646,246 23,727,934 % of shares 1.96 0.48 0.51 0.30 0.15 0.29 0.87 95.44 100.00
501 - 1000 1001 - 2000 2001 - 3000 3001 - 4000 4001 - 5000 5001 - 10000 10001 - above
Categories of shareholders as on December 31, 2011 Category Promoter Foreign Body Corporate Banks, Financial Institutions and Mutual Funds Individuals Companies NRIs and FIIs Clearing Member Total
* under two demat accounts.
No. of Shareholders *1 1 16
No of Shares held 19,227,887 200 1,675,752
Voting Strength % 81.035 0.001 7.062
4,990 1,108,342 4.671 251 1,399,555 5.898 112 84 5,455 296,533 19,665 23,727,934 1.250 0.083 100.00
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Dematerialisation of Shares and Liquidity: Trading in the Companys equity shares is compulsory in the dematerialised mode for all investors with effect from August 28, 2000. As on December 31, 2011, 23,572,313 Equity Shares of the Company representing 99.34% of Paid- up Equity Share Capital of the Company are in dematerialised mode. As Shareholders may be aware, dematerialisation of shares offers various advantages which inter-alia includes the following: 1. No scope for any risk of loss, theft, or fraud with regard to share certificates.
2. Bad deliveries are almost eliminated. 3. Shorter settlements thereby enhancing liquidity. 4. No stamp duty on transfer of securities held in demat mode. 5. No concept of Market Lots. 6. No requirement for lodging of transfer deeds and lodging/ dispatching transfer documents with the Company, thus avoiding a lot of paperwork. In view of above advantages of dematerialisation of shares, shareholders who still hold their equity shares in the physical form are kindly requested to get their shares dematerialised as soon as possible. NIL The Company do not conduct any manufacturing activities. The Company offers its existing range of integrated transportation and distribution of shipments through its network of 365 offices spread across India. Investors should address their correspondence to the Registrar & Share Transfer Agents: M/s. Link Intime India Pvt. Ltd. at the address mentioned hereinabove.
Outstanding GDR /ADR Plant Location
: :
Address for communication
Contact Officials: Mr. N. Mahadevan Iyer, Vice President Corporate Registry Mr. Dnyanesh Gharote, Assistant Vice President Corporate Registry. Mr. Joy Varghese, Officer Corporate Registry Mr. Tushar Ghodke, Supervisor Corporate Registry Investors may also contact Ms. Prabha Singh, Sr. Manager - Secretarial, or Ms. Aarti Falorh, Manager - Secretarial, at the Registered Office of the Company for any assistance and guidance in connection with investors matters. Telephone Ext. Nos. Email : : : +91 22 2839 6444 33422 or 33451 [email protected] [email protected]
Analyst Contact General Information Contact : :
Mr.Yogesh Dhingra Finance Director & Chief Operating Officer Mr. Rajesh Joshi, General Manager Finance and Treasury Mr. Ketan Kulkarni, Head Marketing, Corp. Communication & Sustainability.
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AUDITORS CERTIFICATE REgARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

To the Members of Blue Dart Express Limited We have examined the compliance of conditions of Corporate Governance by Blue Dart Express Limited (the Company), for the year ended December 31, 2011, as stipulated in Clause 49 of the Listing Agreements of the said Company with stock exchanges in India. The compliance of conditions of Corporate Governance is the responsibility of the Companys Management. Our examination was carried out in accordance with the Guidance Note on Certification of Corporate Governance (as stipulated in Clause 49 of the Listing Agreement), issued by the Institute of Chartered Accountants of India and was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.
For Price Waterhouse Firm Registration Number : 301112E Chartered Accountants
Neeraj Gupta Partner Membership No. F055158 Place: Mumbai Date : January 31, 2012
Blue Dart Express Limited | auditors certificate on corporate governance | Annual Report 2011
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MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure, Overview and Developments The Indian logistics industry continues to grow at a steady pace. Fitch Ratings, a part of the Fitch Group, has reported that the overall outlook of Indias logistics industry for 2012 is stable and no significant changes are expected to take place in the short term. The growth in this industry is largely driven by increase in trade, government policy reforms, increased spending on infrastructure, and the overall economic growth driven by the domestic consumption and growing affluence. However, the logistics industry in India still remains largely unorganised and fragmented. The industry faces several challenges like high logistics costs, inadequate infrastructure, capacity constraints, low usage of technology, complex tax laws, over regulation, policy issues and lack of skilled manpower. India ranks among the fastest growing economies and as the key user industries such as manufacturing, automotive, engineering, pharmaceuticals, retail, e-commerce, banking and financial services gather growth momentum, the prospects of the organised logistics industry in India appear bright. The Tier II and Tier III growth story for India has been stirring. According to estimates there are over 73 Indian cities1 with half-amillion plus population. With the overall economic performance and the governments focus on infrastructure development, good connectivity, both through air and ground is bound to happen. The Indian organised Express Market (a part of the overall logistics market) is about ` 4500 crores2 and expected to grow at a CAGR of 17%2. This includes organised Air Express and organised Ground Express which for 2011 are estimated at ` 2000 crores2 and ` 2500 crores2 respectively. Owing to the nature of its services with its strong distribution network and investment in technology, the express industry is expected to be at the epicentre of growth in the logistics space. The industry has transformed itself to offer customers complete end-to-end supply chain solutions. Traditionally, the express industry encompassed small packages mainly letters and documents of small size, low volume and urgent deliveries. Today it has metamorphosised to provide express delivery services for packages of all kinds and sizes to any destination. The capabilities include integrated day definite and time definite door-to-door express delivery services for commercial and non-commercial movements and value-added services like border management (octroi, customs, and security), track and trace, pickup services, retail services, trade facilitation, warehousing and distribution, and performance accountability. The prospects of the industry are accentuated by the fact that outsourcing of logistic requirements gives companies enough time to focus on their core competencies. A major factor influencing this increase is the Indian governments twopronged plan, i.e. allowing foreign direct investment (FDI) in multi-brand retail and levying goods and services tax (GST). Both these, however are yet to be implemented. Review of Performance In 2011, its 28th year, Blue Dart performed reasonably well on all fronts and capitalized on its strong brand equity and focussed growth plans, customer loyalty, service quality and strong workings with group companies. Importantly, this performance was delivered by passionate Blue Darters. Blue Darts information technology infrastructure remains one of its key differentiators and enabler to values. The key success drivers of the express service provider largely depend on the size and scale of operations, nation-wide coverage, dedicated air and ground infrastructure like aircraft, vehicles, facilities, groundhandling capability apart from superior transit times and a loyal base of customers. As the market leader and benchmark, Blue Dart, very early on, incorporated most of these as part of its overall growth strategy. DHL Express an early and aggressive mover in the Indian market, holds 81.03% majority stake in Blue Dart catapulting your Companys presence as the business leader in both the National and International markets. The company is a dominant market leader in the domestic air express industry and commands a 45.9%2 market share and has seen significant increase in both volumes and value. In the ground segment, the company garnered a market share of 12.4%2 and both market shares reflected good growth when compared with the 2010 figure. Notably, the growth in ground services further strengthens the air express services and is a catalyst to the overall growth of the Companys business. The Company offers secure and reliable delivery of consignments to over 35,902 locations in India and to over 220 countries and territories worldwide through its group company DHL Express. Blue Dart has an unmatched infrastructure, extensive reach, a fleet of three Boeing 737 and four Boeing 757 freighters offering a revenue payload of over 370 tonnes per night, a flotilla of over 6,272 vehicles, 365 facilities including 56 domestic warehouses and 12 express hubs and over 7,792 committed and trained Blue Darters driven by a unified passion of delivering service excellence and value. In 2011, Blue Dart carried over 988.5 lacs domestic shipments and over 8 lacs international shipments weighing over 423,000 tonnes.
Sources : 1. RK Swamy BBDO Guide to Urban markets 2. AT Kearney
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Blue Dart Express Limited | management discussion and analysis | Annual Report 2011

The company posted `12,224 lacs profit after tax for the year ended December 31, 2011, compared to Rs 9,437 lacs profit after tax for the year ended December 31, 2010. Income from Operations for the year ended December 31, 2011 was `148,960 lacs, compared to `114,741 lacs for the year ended December 31, 2010. Products A combination of the right product mix and price has helped Blue Dart build strong brand loyalty over the years. The domestic express offerings include Time Definite Solutions (Domestic Priority 1030, Domestic Priority 1200, Dart Apex 1200) and Day Definite Solutions (Domestic Priority, Dart Apex, Dart Surfaceline). Packaging Solutions include Express Pallet: Air and Ground, Smart Box Air and Ground. The Company also offers Cargo Solutions like Airport to Airport, Interline and Charters besides offering Festive Solutions and discounted Student Solutions. In line with the Companys ability to sense industry specific demand and provide innovative solutions, the Company also offers sector-specific solutions like Temperature Controlled Logistics (TCL), Dart Surfaceline Plus, Point to Point (P2P) and a host of value added services like Demand Draft on Delivery (DOD), Freight on Demand (FOD), Freight on Value (FOV), Cash on Delivery (COD) etc. The Companys global presence is established through the DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and wide range of packaging solutions. The service offers access to 220 countries and territories worldwide and the extensive, quality network of Blue Dart and DHL. DHL Import Express is a unique single-window importing service that takes care of all importing needs by offering door-to-door convenience. Duties & Taxes Paid (DTP), Express Pallet, Shipper Interest Insurance (SII), University Express are some of the other offerings. Innovating, to Stay Ahead Blue Dart recently launched Indias first end-to-end GoGreen Carbon Neutral Service. The GoGreen Carbon Neutral Service allows customers to neutralise their carbon footprint by paying a marginal offset charge over and above their shipping rates. The offset charge will be calculated on shipment and weight. Carbon emissions from customer shipments will be offset by reinvesting in environmental protection projects. A Blue Dart certificate will be issued to the customer annually that will mention the total amount of CO2 offset for the customer. This new service, a GoGreen initiative is an extension of DPDHLs global environment protection program launched in 2008 and will provide customers in India with an environmentally responsible shipping option.
Technology Driven Cutting Edge In terms of technological and GOGREEN advancements, in August 2011, Blue Dart launched Smart Truck an intelligent pick-up and delivery vehicle that combines a number of innovative technologies including a route planner. Piloted by Blue Dart in Bengaluru, the Smart Truck technology is designed to provide solutions to urban logistic challenges such as traffic restrictions, density and clogging, while ensuring environmental protection and fulfilling customer needs for ontime delivery. These vehicles compute delivery deadlines to calculate the ideal sequence for shipments, and use real-time GPS to avoid jams and optimise routings, thereby enabling flexibility and last-minute pick-ups. This allows the Smart Truck to provide better customer service and a more cost-effective operation as a result of optimum use of vehicles with less wasted miles. Blue Dart will continue to focus on reach expansion, transit time improvements, small town (Tier-II and III) activation and strengthening channels. The strategy is in place to strengthen market share and deliver the Blue Dart promise. The Blue Dart and DHL brands have complemented each other, as a unified force at all touch-points that deal with the domestic and international services in the marketplace. The joint retail footprint is now over 450+ retail stores, reinforcing the market leadership position of the brands. A quality conscious organisation, the First Choice and NPA (Net Promoter Approach) programmes spearhead the service focus initiatives. Blue Dart judiciously participates in key events, seminars and media through media one-on-ones, media releases, by-line articles, contributory articles, speaking opportunities, branding activities, etc. In 2011, Blue Dart achieved the highest Share-of-Voice in the media. These initiatives ensured that Blue Dart was visible in top-notch events and mediums. A Responsible Corporate Citizen On the Corporate Social Responsibility (CSR) front, Blue Dart continued its efforts on three key pillars: GoTeach (Education), GoGreen (Environment) and GoHelp (Disaster Management). Under GoTeach, the award winning Blue Edge - Empowering Lives programme, a 6-month course, continues to impact young lives from the marginalized segment of our society. Till date the programme has completed 9 batches in Mumbai with the 10th batch being underway. In April 2011, the programme was expanded to Chennai which saw the completion of the 1st batch. The 2nd batch began in October 2011 and is going on in full force.
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The relationship with DHL and Teach For India initiatives continues to grow, with active participation of employees in this area of social work. Blue Dart participated in various efforts to put environmental concerns in the spotlight through GoGreen events like Earth Day, Volunteer Day, Power Saver-Initiative, GoGreen drives, etc. Blue Dart (along with DHL Express, DHL Supply Chain and DHL Global Forwarding) also supported empowerment of women and communities by helping generate funds through stall activities in the office premises under GoHelp. This year Blue Dart along with the other Business Units celebrated the Global Volunteer Day in September 2011 with participation from more than 8000 employees across all Business Units in India in activities ranging from blood donation drives (in 40 centres), sponsoring trees (more than 10,560 trees sponsored), drawing competitions (for more than 2500 children in 3 cities) and donating edibles, electrical appliances, linen and other necessities to various old age / childrens homes. Opportunities & Future Outlook The express industry is a key enabler in facilitating trade and commerce. The opportunities are plenty for the express industry in India as the current logistics spend in India is close to 13%3 of the GDP compared to a notably lesser percentage in more developed economies. Air Express remains the preferred option for reliability, speed and security. Ground express too offers huge opportunities due to an increased affluence expanding into Tier II and III towns, which are emerging as important nodes of production, consumption and distribution. The Company identifies potential regions and penetrates the market by setting up offices, appointing representatives, sales focus, pricing structure and enhancing brand visibility. Connectivity is the focus area here. The Company has identified locations which will be tapped in the medium term. The strategy is in place to strengthen market share and deliver the Blue Dart promise. Sector focus and strengthening relationships with existing clients by catering to more needs of the same client is also an integral part of our growth strategy going forward. Risks and Concerns Macro Economic Headwinds An analysis of the past 10 years shows that the Indian Economy has witnessed a paradigm shift and is on a growth trajectory. India is one of the few economies to have weathered the recent global financial crisis. Indias economy has relatively strong fundamentals and it boasts of several eminent corporate giants that are leaders in their respective fields and are expanding globally. As per the Global Competitiveness report 2010-11, India ranks 51st among 139 countries. India ranks higher than many countries in key parameters such as market size (4th) and innovation (39th). It also has a sound financial market (17th). As per
Sources : 3. McKinsey
UNCTADs World Investment Prospects Survey 2010-2012, India is the second-most attractive destination for FDI in the world. Indian markets have significant potential and offer prospects of high profitability and a favourable regulatory regime for investors. While the near-term challenges for the world economy remain, there remains a belief of being cautiously optimistic on the future scenario. This shift in the balance of economic and financial power looks set to continue, driven by better fundamentals, policy actions and increasing confidence. The logistics segment in India continues to play a major role and once policy reforms are implemented, the larger players in the industry are poised to benefit from the implementation of GST, the deregulation of diesel price and the formal notification to allow 51 per cent FDI in multibrand retail. Companies like Blue Dart are well poised to adapt to the changing scenarios and take advantage of the same. Foreign Exchange Volatility The rupee after remaining stable in the ` 44-46 per dollar mark for almost 20 months, sharply rose to an average of ` 49.3 per dollar in October 2011. In November 2011, it further crossed the ` 50 per dollar mark and as on 14th December 2011, the exchange rate of the Indian currency stood at ` 53.65 per dollar. Although the depreciation of the rupee was sudden and sharp in a span of three months, it is not likely to carry on at this level and we believe it will settle down in the coming year. Government Policy The proposed changes in government policies could have an impact on business operations and service quality, while also increasing more compliance points for the Company. The proposed postal bill is not in tandem with the best global practices and would adversely impact the growth of trade and commerce in the country. The amendment, if passed in its current format, would annul a 30-year-old business employing over ten lacs people, and would negatively impact thousands across the country who have worked hard to set up infrastructure and build the business, Blue Dart being no exception. As per media reports, till date courier companies were not covered / regulated by the Indian Post Office Act, 1989. However, the proposed postal bill requires courier companies to get registered under the new legislation. Courier Companies would be regulated by the Central Government through new legislation as per proposed Postal Bill, 2011. As per this proposed bill, courier companies are not allowed to carry letters up to 150 gm and to provide express service for all articles weighing up to 50 gm. Further, minimum rates chargeable by courier company for letters above 150gm and for other articles above 50 gm, shall not be less than two times of postage rates for respective products.
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The government is expected to put up a draft on Postal Bill on the internet for inviting comments / representations from the industry / public. The Implementation of the IFRS (International Financial Reporting Standards) converged standards was expected to be effective from April 1, 2011; however despite issuing the IFRS-converged standards (Ind AS) in February 2011, Indian regulators did not implement the new standard. The postponement was attributed to the lack of resolution on taxation issues. We hope to see some accelerated progress in the long pending Goods and Services Tax (GST) which has been an open issue all of 2011. Implementation of the proposed uniform GST regime may see a shift of trend in the movement of goods. GST is likely to be implemented from April, 2013. Introduction of GST will make it economically viable to simplify distribution network and result in economies of large scale operations and process optimization. Competition In 2011, one of the latest entrants in Express market, could not sustain their business model and underwent a sharp business down-turn. At the same time few international players have expanded the domestic express industry. Some of the large and scalable logistics services companies in India with well-managed services and distribution networks may work towards becoming attractive targets for companies looking at growing in India through the inorganic route. To ensure that Blue Dart remains ahead of the market, the focus is on building its key differentiators of service excellence and innovation and continuing to sustain and enhance its value proposition in a field that is likely to witness strong pressure on yields. Airport Facilities Indias Airport facilities remain challenging with slower development in airport infrastructure to support operations subjecting air operators to long queues for take-off and landing, resulting in increased Aviation Turbine Fuel (ATF) and operations costs as well as delay. The fallout of the growth in Indian aviation is a severe constraint in infrastructure facilities such as airport warehouses and parking and transit bays. Blue Dart strives to optimise its operations and processes by deploying technology and minimizing risk. Aviation Turbine Fuel Costs Volatility in crude oil prices is a cause of major concern globally. Blue Dart has a fuel surcharge mechanism in place since December 2002 to neutralise the impact of the Aviation Turbine Fuel (ATF) costs. This has enabled us to manage and mitigate the phenomenal increase in costs.
Internal Controls and its Adequacy Across industries, internal processes control and systems play a critical role in the health of a company. An effective system of internal controls form a keystone necessary for building, maintaining and improving shareholders value and helps to enhance the overall quality of the business and enterprise. Blue Dart remains committed to ensuring an effective internal control environment that provides assurance on the efficiency of operations and the security of assets. Blue Dart has a sound internal control system to ensure that all assets are protected against loss from unauthorized use. All transactions are recorded and reported correctly. The Companys internal control system is further supplemented by internal audits carried out by the in-house internal audit teams and the outsourced audit firm, KPMG. Well-established and robust internal audit processes, both at business and corporate levels, continuously monitor the adequacy and effectiveness of the internal control environment across the Company and the status of compliance with operating systems, internal policies and regulatory requirements. The Audit Committee of the Board addresses significant issues raised by both the Internal Auditors and Statutory Auditors. The Company also conducts Risk Assessment Workshops to define and identify what the Companys most significant risks are and how those risks can be mitigated. The members of the Senior Management actively participate and deliberate in the Risk Workshops. The Company has also been successfully re-certified in September 2011 for 3 years, to the ISO 9001:2008 standards for the sixth consecutive period. Human Resources People First Philosophy forms the core of Blue Darts culture and is the driving force of the organization. Blue Darts exemplary employee engagement and People First Philosophy gets highlighted by the fact that a significant number of employees have been working with Blue Dart for more than a decade. They have grown through the ranks to assume greater responsibilities in the organisation. Some of these home-grown employees are heading various Regions and Functions today. In 2011, the company had taken some key initiatives in the areas of Employee Benefit and Family Welfare, Employee Recognition, Development and Growth Opportunities for strengthening the Employee Proposition. Organisation Health and Employee Motivation and Morale: In the year 2011, the overall organisational health and employee morale has improved as reflected in the Employee Satisfaction Survey findings. 99.17% of eligible employees participated in Blue Darts annual Employee Satisfaction Survey (ESS). The companys overall mean satisfaction score increased from 4.55 to 4.59 (on a scale of 1 to 5). Pride for Working for Blue Dart remains the highest scoring parameter with a mean score of 4.84 followed by Job Secured with
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good performance with a mean score of 4.79 while Blue Dart does a good job for customers and The Quality of product and services by Blue Dart is first class score 4.78 and 4.77 each. The dimension on Employee Engagement scored an overall mean score of 4.62. These approval ratings are a testimony of the strong People First policies of the company. As per the ESS survey results of 2011, all dimensions have shown improvement indicating very high Employee Motivation, Morale and Engagement level. Factors such as rewards and job conditions have also shown considerable improvement: Rewards score went up from 82% to 86% Job conditions went up from 90% to 91%. Pride in Working for Blue Dart moved from 97.80% to 98.70% Employee Engagement went up from 94% to 95% Overall Satisfaction level went up from 92% to 94% Training and Development: The organisation continues its focus on training and development of people through internal and external management development programmes and other regular trainings on various mandatory programmes like Counter Handling, Delivering Smiles, Package Handling, Security awareness training, Dangerous Goods Regulation and various other product and process trainings. In addition to the existing programmes some of the soft skills/ behavioural training that are organised in Blue Dart are: Delivering Smiles Key Accounts Training Lets get perfect Building Teams to Deliver Smiles Training Key to personal effectiveness Self awareness and personal effectiveness Managerial Effectiveness for Operational Excellence Active Frontline Leadership Training The Service Spirit Soar Higher Together Whistle While You Lead Whistle While I Lead
In view of the above increase in overall satisfaction, the score of 94% has emerged as one of the best employee satisfaction scores in the history of Blue Dart. Employee Communication: To communicate, share and align our employees on all the organisations plans, business performance, policies, process on new initiatives and strategies for the future, the Team Briefing sessions by the Managing Director with the Senior Management Team were held periodically. Around eight Team Brief sessions were held in 2011. This initiative was very well received by employees and even in the Employee Satisfaction Survey the feedback has been good with high scores of 96.03%. In the external survey (Great Place to Work, India) too, this initiative has been highlighted as one of the best practices. To further reinforce the communication, HR has been conducting Open House sessions especially for the front line on regular basis. The Open House sessions are conducted every quarter at all the locations and service centers of Blue Dart. These Open House sessions allow Blue Darters to express their concern areas which affect their work life, morale and motivation in a frank manner thus enabling solutions or clarifications. A total of 388 Open House sessions were conducted in 2011. Employee Welfare: Through the ESS feedback sessions and Employee Communication mechanism, feedback received were implemented keeping in mind the People First Philosophy of Blue Dart.
The objective of the above training programmes is to help the employees build positive attitude, enhance personal effectiveness/growth, learn the importance of managing self through time Management/ Stress Management, to develop effective communication and build collaborative relationships, enhancing and developing the Managerial Skills and Techniques, to develop the skills of the employees to provide Customer Delight and Deliver Service Excellence, Building trust and work as a team and also to create a culture of learning and development thus making Blue Dart a learning organisation. Talent Management: The company has taken a new initiative called Panel Review in order to develop our Middle and Senior Managers in a structured manner. A Panel Review is a process for review of performance and potential of prospective employees for their continuous development, growth and succession plans.
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85 Managers were covered under this process in 2011. Through this process, the Managers strengths and Areas of Development have been assessed and captured through an intense discussion by the panel based on their consistent performance and potential. All the details are documented and Individual Development Plans (IDPs) have been finalised. The same has been shared with their reporting Managers for feedback and steps are being taken for addressing the IDPs. Culture Building: At Blue Dart, the strong belief is that a healthy and content workforce is the key to an organizations success and as part of the culture building initiatives, the Company follows a policy called People First. Numerous people centric initiatives are regularly undertaken to generate positive energy, bonding amongst employees including their family members. Some of the activities that Blue Dart celebrated in 2011 are: Special Days - Valentines Day, Womens Day, Friendship Day, Independence & Republic Days, Childrens Painting competition Festivals - Holi, Diwali, Dandiya, Christmas Sports - Chess Tournaments, Cricket Matches The following awards are given to employees as recognition of their outstanding contribution to Blue Dart: Super Darter Award: This award seeks to recognise and award acts that far exceed the call of duty. Bravo Award: This is an on the spot award given by individual managers to their people for outstanding achievements. True Blue Award: This award is given to every employee who completes 5 years of service in Blue Dart Express Ltd. Employee of the Year Award: This is to encourage excellence by recognizing our top performing, customer (external/internal) focused employees across the country. The award further exists to recognise and effectively attract, retain and manage our top performing employees.
The number of awards received by Blue Dart employees in 2011 has considerably gone up. This shows that the Blue Dart Managers have appreciated and encouraged the good work done by their team members through recognition of their contributions and efforts, which proves the adage that good work when recognized gets repeated. It also reflects good morale and motivation level of the employees. Details of the awards given out in 2011 vis-a-vis 2011 are as follows: AWARDS BRAVO SUPER DARTER TRUE BLUE AWARD EMPLOYEE OF THE YEAR Awards and Recognitions 2011 saw Blue Dart being the recipient of several prestigious awards that are a validation of its Brand Equity and Leadership, Human Resource Philosophy, Operational Efficiency and Corporate Governance. Some of the awards and recognitions are: Blue Dart ranks Indias Best Company to Work for in India 2011 by the Great Place to Work Institute, India; Readers Digest Most Trusted Brand Gold Award, 6 years in a row; Brand Excellence Award in Logistics Sector by the Star News Brand Excellence Awards 2011; 2010 2011 510 49 356 7 850 58 636 10
Over and above this, Blue Darts 28th anniversary was celebrated with great gusto and enthusiasm across India. Enthusiastic employees are further encouraged through prizes and featuring them in the internal newsletter Daily News. The Daily News is circulated to all the offices across Blue Dart Country which ensures immediate fame and recognition for employees amongst their colleagues. Many of the events are not just restricted to the employees but are open to participation from their family members too. In addition to the cultural celebrations, Blue Dart also undertakes various initiatives to help employees strike a balance between their personal and professional lives. Some of the work-life balance initiatives (at Head Office) are: Stress Talk: To help employees cope with stress which has become an integral part of daily life, a talk on Stress Management was organised by one of the leading hospitals in Mumbai. This programme was very well appreciated and the feedback received from the employees on the Stress Session was very overwhelming. A health talk on Yoga was organised for the employees.
Rewards & Recognition: Blue Dart has various Rewards and Recognition initiatives to motivate and encourage employees to continue with their good work.
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Brand Excellence in Service/Hospitality Industry by the Global Awards for Brand Excellence 2011; Best Service Excellence Award Domestic by the Asian Leadership Awards; Best Marketing Strategy Award by the Asian Leadership Awards; Business Super Achievers Award Anil Khanna by the Asian Leadership Awards; Best Air Express Provider of the Year Domestic by the 5th Express, Logistic & Supply Chain Conclave; Innovative Logistics Company of the Year at the 5th Express, Logistic & Supply Chain Conclave for Blue Dart DHL; Organization With Innovative HR Practices, award at the Asia Pacific HRM Congress; Outstanding Contribution to the Cause of Education award at the Asia Pacific HRM Congress; Anil Khanna - Managing Director conferred with the CEO with HR Orientation, award at the Asia Pacific HRM Congress; Tata Motors award for Best Logistic Provider in Logistic (Vehicle off Road) category; SUPERBRAND Status 2011; STARBRAND Status 2011; 6th Social and Corporate Governance Award 2010, for the Best CSR Practice held at Bombay Stock Exchange; Anil Khanna Managing Director honoured with CEO of the Year, award at the CMO Asia Awards; Frost & Sullivan award for the Best Logistics Service Provider in the Pharmaceutical Sector; Brand Excellence in Logistics at the CMO Asia Awards; Brand Leadership Award for Ketan Kulkarni, VP & Head Marketing, Corporate Communication & Sustainability at the CMO Asia Awards for Excellence in Branding and Marketing; Blue Dart Express Ltd wins Customer & Brand Loyalty Awards in the Logistic Sector Express at the 4th Loyalty Awards; Customer Validated POWERBRANDS 2011;
Asia Retail Congress 2011 Awards for Retail Excellence Retail Best Employers of the Year for Blue Dart DHL RETAIL initiative; Asia Retail Congress 2011 Awards for Retail Excellence Retail Leadership Award for Blue Dart DHL RETAIL initiative; Shine.com HR Leadership Awards for Best HR Practices Award in Rewards & Recognition Strategies; Global HR Excellence Awards 2010-2011 Outstanding contribution to the cause of education for effective Corporate Social Responsibility efforts through our award winning Blue Edge: Empowering Lives Program; 6th Social & Corporate Governance Awards 2010 Organisation that offers the best returns to consumers; 6th Social & Corporate Governance Awards 2010 CEO with HR Orientation; Excellence in HR Through Technology, at the 5th Employer Branding Awards 2010-2011; Best Employee of the Year (Rank 13th), at the 5th Employer Branding Awards 2010-2011; Best HR Practices in line with Strategy, at the 5th Employer Branding Awards 2010-2011; Best in Corporate Social Responsibility Practice, at the 5th INDYs Awards 2011; Yogesh Dhingra, COO & Finance Director was conferred the CFO 100 Recognition of Excellence for his exceptional contribution to corporate finance; Tulsi Mirchandaney, Managing Director, Blue Dart Aviation Ltd. felicitated by the Government of India for her significant contribution to the growth of civil aviation in India;
Blue Points won the Best Loyalty programme award at the CMO Asia Awards; Blue Edge: Empowering Lives won the Best Community Development programme award at Asias Best CSR Practice Awards; Best Developing Sustainable Strategy at Asias Best CSR Practice Awards; Best CSR Practice award (Overall) at Asias Best CSR Practice Awards;
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Ketan Kulkarni, VP & Head, Marketing, Corporate Communications & Sustainability was conferred the Award for Brand Leadership by the Global Awards for Brand Excellence 2011; Community Development Blue Edge: Empowering Lives at the CSR Awards 2011 by Subir Raha Centre for Corporate Governance; Best Environmental Excellence Smart Truck at the CSR Awards 2011 by Subir Raha Centre for Corporate Governance.
Cautionary Statement The statement forming part of this Report may contain certain forward looking remarks within the meaning of applicable Securities Law and Regulations. 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 Companys operations include domestic and international economic conditions, changes in government regulations, tax regime and other statutes.
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CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION
To the Board of Directors, BLUE DART EXPRESS LIMITED We, Anil Khanna, Managing Director and Yogesh Dhingra, Finance Director and Chief Operating Officer of Blue Dart Express Limited, to the best of our knowledge and belief certify that: 1. We have reviewed the financial statements and cash flow statement of Blue Dart Express Limited for the year ended December 31, 2011 and based on our knowledge and belief, we state that: (i) these statements do not contain any materially untrue statement or omit any material fact or contain any statement that may be misleading. (ii) these statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations. 2. We also state that to the best of our knowledge and belief, there are no transactions entered into by the Company during the year, which are fraudulent, illegal or violative of the Companys code of conduct. 3. We are responsible for establishing and maintaining internal controls over financial reporting for the Company and have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. 4. We have indicated, based on our most recent evaluation, wherever applicable, to the Auditors and the Audit Committee: a. significant changes, if any, in the internal control over financial reporting during the year. b. significant changes, if any, in the accounting policies made during the year and that the same have been disclosed in the notes to the financial statements; and c. instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having significant role in the Companys internal control system over financial reporting.
Anil Khanna Managing Director Mumbai, January 31, 2012
Yogesh Dhingra Finance Director & Chief Operating Officer
DECLARATION REGARDING CODE OF CONDUCT

I hereby declare that all the Directors and Senior Management of the Company have confirmed compliance with the Code of Conduct for the current year, as adopted by the Company. Anil Khanna Managing Director Mumbai, January 31, 2012
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Blue Dart Express Limited | CEO AND CFO certification | Annual Report 2011
AUDITORS REPORT to the members of blue dart express limited

1. We have audited the attached Balance Sheet of Blue Dart Express Limited (the Company) as at December 31, 2011, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: (a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; (b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; (c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act; (e) On the basis of written representations received from the directors, as on December 31, 2011 and taken on record by the Board of Directors, none of the directors is disqualified as on December 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; (f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the company as at December 31, 2011; (ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Place: Mumbai Date: January 31, 2012
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Neeraj Gupta Partner Membership Number: F055158
Blue Dart Express Limited | auditors report | Annual Report 2011
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ANNEXURE TO AUDITORS REPORT

(Referred to in paragraph 3 of the Auditors Report of even date to the members of Blue Dart Express Limited on the financial statements for the year ended December 31, 2011) 1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets. (b) During the year, management introduced a revised physical verification program designed to cover some items of assets every year, some items once every two years and the rest once every three years, basis the cost threshold specified by the Management for this purpose, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme certain fixed assets covered by the revised program have been physically verified by the management during the year, and no material discrepancies between the book records and the physical inventory have been noticed. (c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the Company during the year. clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not applicable to the Company for the current year. 4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.
5. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the Company.
2. (a) The inventory of packing and stationery consumables and spares has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. (b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
6.
7. 8.
3. (a) The Company has granted an unsecured loan to a party covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year-end balance of such loan aggregates to ` 2,018,787,955. (b) In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. (c) The Company to whom loan has been granted, as referred to in (a) above, has been regular in the payment of interest as stipulated. In respect of the aforesaid loan, the principal amount is repayable over seven years with the first two years as moratorium. (d) In respect of the aforesaid loans, there is no overdue amount more than Rupees One Lakh. (e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly,
9. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess have generally been regularly deposited with the appropriate authorities. As informed to us, sales tax, customs duty and excise duty are not applicable to the Company for the current year. (b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, wealth-tax, service-tax and cess which have not been deposited on account of any dispute. As informed to us, sales tax, customs duty and excise duty are not applicable to the Company for the current year.
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Blue Dart Express Limited | annexure to auditors report | Annual Report 2011

(Referred to in paragraph 3 of the Auditors Report of even date to the members of Blue Dart Express Limited on the financial statements for the year ended December 31, 2011) 10. The Company has no accumulated losses as at December 31, 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company, for loans taken by its associate company, Blue Dart Aviation Limited, from banks and financial institutions, considering the service agreement between the two companies, is not prejudicial to the interest of the Company. 16. 17. The Company has not obtained any term loans. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. The Company has not issued any debentures during the year. The Company has not raised any money by public issues during the year. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, except for certain instances of fraud on the Company, including those committed by way of theft, embezzlement of cash and pilferage of credit cards by employees of the Company and service providers, aggregating ` 245,360, which are in the process of being settled/recovered, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.
11.
18.
12.
19. 20. 21.
13.
14. 15.
Blue Dart Express Limited | annexure to auditors report | Annual Report 2011
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Balance Sheet as at December 31, 2011
Schedule As at December As at December No. 31, 2011 31, 2010 in ` (000) in ` (000) SOURCES OF FUNDS Shareholders Funds Share Capital 1 237,628 237,628 Reserves and Surplus 2 6,343,743 5,176,479 6,581,371 5,414,107 Deferred Tax Liabilities (Net) [Refer Notes 1(k) and 6 - Schedule 16] Deferred Tax Liabilities 219,310 215,987 Less: Deferred Tax Assets 36,923 34,335 182,387 181,652 TOTAL 6,763,758 5,595,759 APPLICATION OF FUNDS Fixed Assets 3,932,590 3,254,366 Gross Block Less: Depreciation/Amortisation 1,605,286 1,423,381 Net Block 3 2,327,304 1,830,985 66,874 267,215 Capital Work in Progress (including capital advances) 2,394,178 2,098,200 Loan to Blue Dart Aviation Limited [Refer Note 14 - Schedule 16] 2,018,788 1,124,458 Investments 4 722,454 959,842 Current Assets, Loans and Advances Inventories 5 26,233 21,746 Sundry Debtors 6 1,889,838 1,532,855 Cash and Bank Balances 7 377,050 347,262 Loans and Advances 8 943,042 839,803 3,236,163 2,741,666 Less: Current Liabilities and Provisions Liabilities 9 1,464,160 1,214,473 Provisions 10 143,665 113,934 1,607,825 1,328,407 Net Current Assets 1,628,338 1,413,259 TOTAL 6,763,758 5,595,759 16 Notes to Accounts
Schedules 1 to 10 and 16 referred to above form an integral part of the Balance Sheet. This is the Balance Sheet referred to in our report of even date.
For and on behalf of the Board of Directors
For Price Waterhouse Sharad Upasani Anil Khanna Malcolm Monteiro Firm Registration Number: 301112E Chairman Managing Director Director Chartered Accountants Neeraj Gupta Jerry Hsu Clyde Cooper Suresh G. Sheth Partner Director Director Director Membership No. F055158 Yogesh Dhingra Tushar Gunderia Place: Mumbai Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Dated: January 31, 2012 Chief Operating Officer
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Blue Dart Express Limited | FINANCIALS | Annual Report 2011
Profit and Loss Account for the year ended December 31, 2011
Schedule No. INCOME Service Charges [Refer Note 1(h) - Schedule 16] Other Income 11
Year ended December 31, 2011 in ` (000) 14,896,032 242,622 15,138,654 10,076,440 1,844,140 1,213,248 13,133,828 2,004,826 9
Year ended December 31, 2010 in ` (000) 11,474,121 53,165 11,527,286 7,483,584 1,488,917 959,892 9,932,393 1,594,893 140 192,166 192,306 1,402,587 464,143 (3,940) (1,300) 458,903 943,684 3,622,098 4,565,782 23,728 3,941 4,538,113 39.77 10.00
EXPENDITURE Freight, Handling and Servicing Costs Employee Costs Other Costs 12 13 14
Profit Before Interest, Depreciation and Taxation Interest Expense 15 3 Depreciation/Amortisation
215,953 215,962 1,788,864 565,712 735 - 566,447 1,222,417 4,538,113 5,760,530 47,456 7,697 91,681 5,613,696 51.52 10.00
Profit Before Taxation Provision for Taxation [Refer Notes 1(k), 6 and 12 - Schedule 16] Current Tax Deferred Tax Taxation in respect of earlier years
Profit After Taxation Balance brought forward from previous year Available for Appropriation Proposed Dividend Tax on Proposed Dividend Transfer to General Reserve Earnings Per Share (Refer Note 5 - Schedule 16) Basic and diluted Earnings Per Share (in `) Nominal value per equity share (in `)
Balance carried forward to Balance Sheet
Notes to Accounts
Schedules 11 to 16 referred to above form an integral part of the Profit and Loss Account This is the Profit and Loss Account referred to in our report of even date
16
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CASH FLOW STATEMENT FOR THE YEAR ENDED december 31, 2011
A. Cash flows from Operating activities: Profit before Taxation
Year ended December 31, 2011 in ` (000) 1,788,864 215,953 9 (150,270) (45,823) 2,099 (7,240) 8,495 (5,955) 7,748 (5,501) 9,253 1,817,632 (4,487) (358,238) (51,865) 250,594 1,653,636 (602,076) 1,051,560 (701,797) 181,202 2,653 135,260 64,163 - (10,614,960) 10,834,010 (894,330) (993,799) (9) (24,023) (3,941)
Year ended December 31, 2010 in ` (000) 1,402,587 192,166 140 (8,164) (33,160) 5,706 206 8,951 (1,629) 12,248 3,544 9,253 1,591,848 (1,707) (282,661) (658,303) 195,892 845,069 (472,493) 372,576 (309,244) (71,171) 1,256 6,775 7,272 60 (9,820,450) 9,933,600 (251,902) (140) (23,902) (4,033)
Adjustments for: Interest expense Interest income Dividend from mutual funds Loss/(Gain) on sale/scraping of fixed assets (Net) Unrealised (Gain)/loss on account of Foreign exchange (Net) Bad debts Liabilities no longer required written back Provision for Leave Encashment Provision for Gratuity Provision for Directors commission
Depreciation/Amortisation
Operating profit before working capital changes Adjustments for changes in working capital: (Increase) in Inventories (Increase) in Sundry Debtors (Increase) in Loans and Advances Increase in Trade and Other Payables Taxes paid (net of Tax Deducted at Source)
Cash generated from Operations Net cash from Operating activities Purchase of fixed assets Changes in capital work in progress Proceeds from sale of fixed assets Interest received Dividend from mutual funds Proceeds from divestment of investments Investments in mutual funds Redemptions from mutual funds Loan to Blue Dart Aviation Limited
B. Cash flows used in Investing activities:
Net cash used in Investing activities Interest paid Dividend paid Dividend tax paid
C. Cash flows used in Financing activities:
60
CASH FLOW STATEMENT FOR THE YEAR ENDED december 31, 2011
Net cash used in Financing activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year
Year ended December 31, 2011 in ` (000) (27,973) 29,788 347,262 377,050 As at December 31,2011 in ` (000) 5,458 135,467 225,640 150 774 8,181 1,380 377,050
Year ended December 31, 2010 in ` (000) (28,075) 92,599 254,663 347,262 As at December 31,2010 in ` (000) 3,927 110,546 222,733 150 1,069 7,457 1,380 347,262
Cash and Cash Equivalents comprise of: Cash on hand Cash, cheques and remittances in transit Balance with Scheduled Banks: on current accounts on margin money accounts on unpaid dividend accounts on current account on deposit account
Balance with non scheduled Bank:
Notes: 1 2 3 4 The above Cash Flow Statement has been prepared under the indirect method set out in Accounting Standard on Cash Flow Statements (AS-3) as notified under sub-section (3C) of Section 211 of the Companies Act, 1956 (the Act). Cash flows in brackets indicate cash outgo. Previous years figures have been regrouped and recasted wherever necessary to conform to the current years classification. Cash and cash equivalents includes ` 21,926 (000) [(Previous year - ` 4,491 (000)] which are not available for use by the Company. (Refer Schedule 7 in the Financial Statements)
This is the Cash Flow Statement referred to in our report of even date
For Price Waterhouse Sharad Upasani Anil Khanna Malcolm Monteiro Managing Director Firm Registration Number: 301112E Chairman Director Chartered Accountants Neeraj Gupta Jerry Hsu Clyde Cooper Suresh G. Sheth Partner Director Director Director Membership No. F055158 Yogesh Dhingra Tushar Gunderia Place: Mumbai Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Dated: January 31, 2012 Chief Operating Officer
61
SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 1 share Capital Authorised 40,000,000 equity shares of ` 10 each Issued and Subscribed 23,727,934 equity shares of ` 10 each fully paid-up Add: Forfeited Shares 237,280 348 237,628 237,280 348 237,628 400,000 400,000 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
Notes: Of the above, 11,863,967 (Previous Year 11,863,967) shares were allotted as fully paid up bonus shares by capitalisation of Securities Premium and 5,650,000 (Previous Year 5,650,000) equity shares were allotted as fully paid up bonus shares by capitalisation of General Reserve. 19,227,887 (Previous Year 19,227,887) equity shares constituting 81.03% of the equity share capital of the Company are held by DHL Express (Singapore) Pte. Limited, the holding company. The ultimate holding company is Deutsche Post AG, Germany. SCHEDULE 2 Reserves and Surplus Securities Premium General Reserve Add: Transfer from Profit and Loss Account At the end of the year Profit and Loss Account Total 394,057 244,309 91,681 335,990 5,613,696 6,343,743 394,057 244,309 - 244,309 4,538,113 5,176,479
Total
schedule 3 Fixed Assets
[Refer Notes 1(b),1(c),1(d) and 3 - Schedule 16] description OF ASSETS GROSS BLOCK (At Cost)
Opening Balance As at Additions Deductions / January Adjustments 1, 2011 Closing Balance As at December 31, 2011
in ` (000)
DEPRECIATION/AMORTISATION NET BLOCK
Opening Closing Closing Closing Balance Balance Balance Balance As at For the Deductions / As at As at As at January Year Adjustments December December December 1, 2011 31, 2011 31, 2011 31, 2010
Intangible Assets: 30,000 - - 30,000 29,630 370 - 30,000 - 370 Goodwill Computer Software 236,583 304,862 103 541,342 109,609 30,633 8 140,234 401,108 126,974 Tangible Assets: Land - Freehold 396,283 - - 396,283 - - - - 396,283 396,283 Buildings 195,009 6,249 (199) 201,457 32,852 5,232 4 38,080 163,377 162,157 Office Equipment 132,961 25,535 (435) 158,931 40,267 10,559 649 50,177 108,754 92,694 Electrical Equipment 288,166 52,867 3,668 337,365 101,788 22,372 2,416 121,744 215,621 186,378 Computers 503,560 129,330 70,671 562,219 302,218 55,650 17,958 339,910 222,309 201,342 Furniture and Fittings 400,325 131,634 2,116 529,843 131,719 28,461 761 159,419 370,424 268,606 Vehicles 45,128 3,402 1,283 47,247 26,858 3,168 1,237 28,789 18,458 18,270 Aircraft Engines 123,697 - 14,955 108,742 123,697 - 14,955 108,742 - Aircraft 527,245 - - 527,245 236,767 35,589 - 272,356 254,889 290,478 Aircraft Components and 205,170 - - 205,170 168,628 3,404 - 172,032 33,138 36,542 Overhaul D-Check on Aircraft 114,598 - - 114,598 107,620 6,022 - 113,642 956 6,978 [Refer Note (a) below] Ground Handling Equipment 55,641 27,323 (1,006) 83,970 11,728 3,637 (62) 15,427 68,543 43,913 Machinery and Equipment - 33,031 (55,147) 88,178 - 10,856 (3,878) 14,734 73,444 Total Previous Year 3,254,366 714,233 3,003,632 313,435 36,009 3,932,590 1,423,381 215,953 62,701 3,254,366 1,286,954 192,166 34,048 1,605,286 2,327,304 1,830,985 55,739 1,423,381 1,830,985
Notes: a) D-Check on Aircraft represents costs incurred towards heavy maintenance and mandatory checks carried out on Aircraft exclusively operated for the Company. b) Deductions/Adjustments includes reclassification from one category to another category of asset. 62
SCHEDULES
Schedules forming part of the Balance Sheet As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
NIL units (Previous Year 14,751,481) of HDFC Cash Investments Management Fund Treasury Advantage Plan Wholesale - Daily (Long Term, Unquoted, At Cost) Dividend Reinvestment (4,535,713 [Refer Note 1(e) - Schedule 16] units purchased, 300,827 units Trade cumulated and 19,588,021 units sold during the Year) 11,760,000 (Previous Year 11,760,000) equity shares of 1,705,423 units (Previous Year ` 10 each in Blue Dart 830,846) of ICICI Prudential Liquid Aviation Limited 183,081 183,081 Plan - Super Institutional Daily Dividend Reinvestment Plan 110,000 (Previous Year - 110,000) (37,118,212 units purchased, equity shares of ` 10 each in 107,895 units cumulated and Concorde Air Logistics Limited 14,600 14,600 36,351,530 units sold during the Year) Non - Trade SCHEDULE 4 Others (Current) Units in Mutual Funds NIL units (Previous Year 186,514) of UTI Treasury Advantage Fund Institutional Plan - Daily Dividend Reinvestment (74,984 units purchased, 6,946 units cumulated and 268,444 units sold during the Year) 890,001 units (Previous Year 1,713,378) of ICICI Prudential Flexible Income Plan Premium Daily Dividend Reinvestment Plan (1,867,877 units purchased, 59,471 units cumulated and 2,750,725 units sold during the Year) NIL units (Previous Year 16,324,919) of Birla Sunlife Savings Fund Institutional Plan - Daily Dividend Reinvestment (5,100,276 units purchased, 306,396 units cumulated 21,731,591 units sold during the Year) NIL units (Previous Year NIL) of HDFC Cash Management Fund Savings Plan - Daily Dividend Reinvestment Option (100,832,989 units purchased, 296,016 units cumulated and 101,129,005 units sold during the Year) 107,944 units (Previous Year NIL) of UTI Liquid Cash Plan Institutional Daily Income Option Reinvestment (2,417,000 units purchased, 5,206 units cumulated and 2,314,262 units sold during the Year) 1,497,531 units (Previous Year NIL) of Birla Cash Plus Institutional Premium - Daily Dividend Reinvestment (210,228,452 units purchased, 517,771 units cumulated and 209,248,692 units sold during the Year) Total
147,980
170,581
83,103
- 186,554
110,043
94,104 181,164
150,045 722,454
959,842
- 163,360
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SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 5 Inventories [Refer Note 1(f) - Schedule 16] Packing and Stationery Consumables Spares Total SCHEDULE 6 Sundry Debtors (Unsecured, considered good) Other debts [Refer Note 8(d) (i) - Schedule 16] 1,889,838 1,889,838 1,532,855 1,532,855 18,525 7,708 26,233 14,038 7,708 21,746 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) Notes: 1. The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company. The balances in the deposit accounts are given as security against overdraft facilities from bank. 2. The bank balances in the current account includes ` 19,622 (000) [Previous Year ` 1,892 (000)] held in trust on behalf of others SCHEDULE 8 Loans and Advances (Unsecured, considered good) 5,458 135,467 225,640 150 774 3,927 110,546 222,733 150 1,069 Aircraft Payload Deposit (Trade) with Blue Dart Aviation Limited Advances recoverable in cash or in kind or for value to be received: Prepaid expenses 67,948 339,359 44,404 290,547 215,000 215,000 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
Total SCHEDULE 7 Cash and Bank Balances Cash on hand Cheques on hand and remittances in transit Balance with scheduled banks: on current accounts on margin money accounts on unpaid dividend accounts Balance with non-scheduled bank: (Municipal Co-operative Bank) on current account on deposit account {Maximum amount outstanding during the Year in current account ` 38,181 (000) [Previous Year ` 18,852 (000)] and in deposit account ` 1,380 (000) [Previous Year - ` 1,380 (000)]} Total
Deposits Advance tax [Net of Provision for Taxation ` 1,565,482 (000) [Previous Year `1,464,150 (000)] Other advances Total SCHEDULE 9 Liabilities Sundry Creditors: 8,181 1,380 7,457 1,380 a) Micro, Small and Medium Enterprises [Refer Note 11 Schedule 16] b) Others [Refer Note 8(d)(iii) Schedule 16] Unclaimed dividend * Other Liabilities Total 377,050 347,262
112,548 208,187 943,042
61,174 228,678 839,803
4,236 1,285,618 774 173,532 1,464,160
6,455 959,065 1,069 247,884 1,214,473
*There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.
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SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 10 Provisions Provision for Leave Encashment [Refer Notes 1(g) and 2 - Schedule 16] Provision for Gratuity [Refer Notes 1(g) and 2 - Schedule 16] Proposed Dividend Tax payable on Proposed Dividend Total As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) Gain on account of Foreign exchange fluctuation (Net) [Refer Note 1(i) - Schedule 16] Miscellaneous income 84,880 3,632 47,456 7,697 143,665 77,132 9,133 23,728 3,941 113,934 Total SCHEDULE 12 Freight, Handling and Servicing Costs Aircraft charter costs Domestic network operating costs International servicing charges Schedules forming part of the Profit and Loss Account SCHEDULE 11 Other Income Dividend from Mutual Funds (from non-trade investments) Interest on Loan to Blue Dart Aviation Limited {Tax deducted at source ` 12,055 (000) [Previous Year - ` 852 (000)]} Interest on Inter-Corporate Deposit to Blue Dart Aviation Limited {Tax deducted at source ` 425 (000) [Previous Year - ` 517 (000)]} Interest on deposits with banks and others {Tax deducted at source ` 2,530 (000) [Previous Year - ` 35 (000)]} Liability no longer required, written back 45,823 120,550 4,251 25,469 5,955 1,629 1,319 2,587 33,160 4,258 Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) Domestic excess baggage Handling and clearing charges Printing, stationery and consumables Total SCHEDULE 13 Employee Costs [Refer Notes 1(g), 2, 10(a) and 10(b) - Schedule 16] Salaries, Bonus and Leave Encashment [Refer Notes 1(j) and 9 (b) - Schedule 16] Contribution to Provident and other funds Staff welfare expenses Total SCHEDULE 14 Other Costs Rent [Refer Notes 1(j), 9 (a) and 9 (b) - Schedule 16] Electricity Office expenses Security expenses
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000)
7,240 33,334 242,622
- 10,212 53,165
5,223,930 2,948,625 821,622 566,584 333,756
3,842,519 2,119,258 684,178 452,666 241,837
181,923 143,126 10,076,440 7,483,584
1,622,275 125,651 96,214 1,844,140
1,326,804 113,615 48,498 1,488,917
544,317 124,165 105,579
429,606 85,541 75,048

65
99,769 87,204
SCHEDULES
Schedules forming part of the Profit and Loss Account Repairs and maintenance - others Communication expenses Legal and professional charges [Refer Note 10(c) - Schedule 16] Rates and taxes Travelling and conveyance Insurance Sales promotion and advertising Lease rentals [Refer Notes 1(j) and 9 (b) Schedule 16] Bad debts Loss on sale/scrapping of fixed assets (Net) Miscellaneous expenses Loss on account of Foreign exchange fluctuation (Net) [Refer Note 1(i) - Schedule 16] Total SCHEDULE 15 Interest Expense On Bank Overdraft Total SCHEDULE 16 Notes to Accounts 1. Significant Accounting Policies (a) Basis of preparation of Financial Statements The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 (the Act) and the relevant provisions of the Act. 9 9 140 140 Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 86,762 76,375 47,196 37,031 20,876 24,764 67,018 63,040 44,770 30,177 16,311 14,793 16,322 8,495 2,099 2,788 12,507 8,951 5,706 2,699 (b) Fixed Assets and Depreciation/Amortisation Fixed assets are stated at cost less accumulated depreciation/ amortisation. The Company capitalises all costs relating to the acquisition, installation and substantial modifications to fixed assets. D-Check on Aircraft represents costs incurred towards heavy maintenance and mandatory checks carried out on Aircraft exclusively operated for the Company. Depreciation on fixed assets is provided under straight line method at the rates specified in Schedule XIV to the Act, except in respect of the following assets where such rates are higher than the prescribed Schedule XIV rates, so as to ensure that such assets are written off over their estimated useful lives: Description of Assets Office Equipment Electrical Equipment Computers Aircraft Engines D-Check on Aircraft Useful Life (in Years) 2 to 16 6 to 16 3 to 6 2 to 7 14 7
16,710 15,328
Aircraft
Individual assets costing upto ` 5,000 are depreciated 100% on a pro-rata basis over one year from the date the asset is put to use. Aircraft Components and Overhaul represent the cost of engines overhaul, components and modifications of airframes owned and contractually liable to be incurred by the Company. Such costs are depreciated/amortised on the basis of hours flown or the life cycle of the overhaul program, as applicable. Computer Software is amortised under straight line method at the rates specified in Schedule XIV to the Act, as prescribed for computers. Goodwill represents the excess of the value of the erstwhile partnership business as a whole over its net asset value as at the date of registration and is stated at cost less accumulated amortisation. Goodwill is amortised using the straight-line method over a period of 20 years, based upon the brand image of `Blue Dart upon acquisition and the consequential impact it has on the future business of the Company. Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset
- 1,213,248
1,193 959,892
(c) Borrowing Costs
66
SCHEDULES
that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expense in the year in which they are incurred. (d) Impairment of Assets The Company assesses at each Balance Sheet Date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. Long Term Investments are stated at cost. Provision is made to recognise a diminution, other than temporary, in the value of investments. Current Investments are valued at lower of cost and market value. Inventories primarily consist of packing and stationery consumables which are valued at cost (arrived at using First-in First-out basis) and net realisable value which ever is lower. Cost of Spares is calculated at purchase price and expenditure directly attributable to the acquisition of such inventories for bringing it to its present location using the specific identification method.
makes contributions to an insurance company and has no further obligation beyond making the payment to the insurance company. The Company contributes to State plans namely Employees State Insurance Fund and Employees Pension Scheme 1995 and has no further obligation beyond making its contribution. The Companys contributions to the above funds are charged to revenue every year. Defined Benefit Plans The Company has a Defined Benefit plan namely Gratuity for all its employees. Gratuity Fund is recognised by the income tax authorities and is administered through trustees. The Company has taken a group gratuity policy with Life Insurance Corporation of India and is funded. Liability for Defined Benefit Plan is provided on the basis of valuations, as at the Balance Sheet Date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the Projected Unit Credit Method. Other Long-term Employee Benefits The employees of the Company are entitled to other long-term benefits in the form of Leave Encashment and Compensated Absences as per the policy of the Company. Liability for such benefits is provided on the basis of valuations, as at the Balance Sheet Date, carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability is the Projected Unit Credit Method.
(e) Investments
(f) Inventories
(g) Employee Benefits (i) Short Term Employee Benefits: The employees of the Company are entitled to leave encashment as per the leave policy of the Company. The liability in respect of leave encashment of short term nature is provided on an estimated basis. Defined Contribution Plans The Company has Defined Contribution plans for post employment benefits namely Provident Fund and Superannuation Fund which are recognised by the income tax authorities and administered through trustees. Under the Provident Fund Plan, the Company contributes to a Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution. The Superannuation Fund constitutes an insured benefit, which is classified as a defined contribution plan as the Company
(iii) Termination benefits are recognised as an expense as and when incurred. (iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the Profit and Loss Account as income or expense. (h) Service Charges Service charges for transportation of shipments are recognised as income when shipments are manifested and represent amounts invoiced, net of service tax and all discounts and allowances. Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transactions. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at the date of the Balance Sheet. All exchange differences are dealt with in the Profit and Loss Account.
(ii) Long Term Employee Benefits:
(i) Foreign Currency Transactions
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SCHEDULES
(j) Lease Rentals All lease rentals are accounted for on accrual basis over the term of the lease and charged to the Profit and Loss Account under the straight line method. Provision for tax for the year is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax is recognised, subject to consideration of prudence, ontiming differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised for unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resource is remote, no provision or disclosure is made.
- Employers Contribution to Provident Fund - Employers Contribution to Superannuation Fund - Employers Contribution to Employees State Insurance - Employers Contribution to Employees Pension Scheme 1995 Gratuity:
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 34,840 7,234 27,509 28,326 5,194 20,401
(k) Taxes on Income
33,067
27,968
II Defined Benefit Plans aluations in respect of Gratuity has been carried out by an V independent actuary, as at the Balance Sheet Date, based on the following assumptions: As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 9.25% 7.25% 7.75% 8.50% 7.25% 7.75%
(l) Provision for Contingent Liabilities
Discount Rate (per annum) Rate of increase in Compensation levels Rate of Return on Plan Assets Expected Average remaining working lives of employees (years) Present Value of Obligation at the beginning of the year Interest Cost Past Service Cost Current Service Cost Curtailment Cost/(Credit) Settlement Cost/(Credit) Benefits Paid Acturial (gain)/loss on obligations Present Value of Obligation as at Year end
2. Employee Benefits The Company has classified the various employee benefits provided to employees as under: I Defined Contribution Plans a. Provident Fund b. Superannuation Fund c. State Defined Contribution Plans i. Employers Contribution to Employees State Insurance ii. Employers Contribution to Employees Pension Scheme 1995 During the year, the Company has recognised the following amounts in the Profit and Loss Account in Schedule 13 under Contribution to Provident and other funds:
19
22
A) Changes in the Present Value of Obligation 212,060 19,672 Nil 19,380 Nil Nil (11,133) (6,465) 233,514 176,225 14,539 Nil 16,444 Nil Nil (3,522) 8,374 212,060
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SCHEDULES
B) Changes in the Fair value of Plan Assets Fair Value of Plan Assets at the beginning of the year Expected Return on Plan Assets Acturial Gains and (Loss) on Plan Assets Benefits Paid Fair Value of Plan Assets at Year end As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 202,927 15,727 3,348 19,013 (11,133) 229,882 171,987 13,329 (1,009) 22,142 (3,522) 202,927
E) Expenses recognised in the Profit and Loss Account in Schedule 13 under Contribution to Provident and other funds Current Service Cost Past Service Cost Interest Cost Expected Return on Plan Assets Curtailment Cost/(Credit) Settlement Cost/(Credit) Net actuarial (gain)/loss recognised in the Year Total Expenses/(Gain) recognised in the Profit and Loss Account Defined Benefit Obligation Plan Assets Deficit/(Surplus) Experience Adjustment on plan liabilities (gain)/loss Experience Adjustment on plan assets (gain)/loss Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 19,380 Nil 19,672 (15,726) Nil Nil (9,814) 16,444 Nil 14,539 (13,329) Nil Nil 9,383
Contributions
C) Reconciliation of Present Value of Defined Benefit Obligation and the Fair value of Assets [Included in Provisions (Refer Schedule 10)] Present Value of funded obligation as at the Year end Fair Value of Plan Assets as at the end of the year Funded Status Present Value of unfunded Obligation as at the Year end Unrecognised Actuarial (gains)/losses Unfunded Net Asset/(Liability) Recognised in Balance Sheet As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 233,514 229,882 (3,632) (3,632) Nil (3,632) 212,060 202,927 (9,133) (9,133) Nil (9,133)
13,512 233,514 229,882 (3,632) 14,932 (3,348)
27,037 212,060 202,927 (9,133) 8,374 1,009
F) Experience Adjustments
G) Percentage of each category of Plan Assets to total Fair Value of Plan Assets as at December 31, 2011 is 100% The Plan Assets are administered by Life Insurance Corporation of India (LIC) as per Investment Pattern stipulated for Pension and Group Schemes Fund by Insurance and Regulatory Development Authority regulations. H) Expected gratuity contribution for the next year is aggregating ` 23,902 (000)[Previous Year ` 19,717 (000)].
D) Amount recognised in the Balance Sheet [Included in Provisions (Refer Schedule 10)] Present Value of Obligation at the end of the year Fair Value of Plan Assets at Year end Liability recognised in the Balance Sheet (233,514) 229,882 (3,632) (212,060) 202,927 (9,133)
69
SCHEDULES
II. Net Asset/(Liability) recognised in Balance Sheet: A) Present Value of Obligation at the close of the year B) Fair Value of Plan Assets at the close of the year C) Asset/(Liability) recognised in the Balance Sheet
Year ended Year ended Year ended Year ended Year ended December December December December December 31, 2011 31, 2010 31, 2009 31, 2008 31, 2007 (in ` 000) (in ` 000) (in ` 000) (in ` 000) (in ` 000) (233,514) 229,882 (3,632) (212,060) 202,927 (9,133) (176,225) 170,636 (5,589) (173,156) 137,070 (36,086) (160,336) 119,475 (40,861)
Change in Defined Benefit Obligation(DBO) during the year ended Actuarial (Gain)/Loss Change in the Fair Value of Plan Assets Actuarial Gain/(Loss)
(6,465) 3,348
8,374 (1,009)
(20,380) 1,850
(4,574) (436)
35,237 1,783
III. Other Long Term Employee Benefits: The liabilities for Leave Encashment and Compensated Absences as at year end were ` 74,184 (000) [Previous Year ` 69,048 (000)] and ` 10,696 (000) [Previous Year ` 8,084 (000)] respectively. As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 1,222,417 943,684
5. Earnings Per Share (a) Profit after Taxation (` 000) (b) Weighted average number of shares (Nos.) (c) Basic and Diluted Earnings Per Share (In ` ) (d) Nominal value of shares outstanding (In ` )
3. Capital Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
23,727,934 23,727,934 51.52 10.00 39.77 10.00
156,003
158,926
6. Deferred Tax Balances The components of deferred tax liabilities and assets arising on account of timing differences between taxable income and accounting income are as follows: (a) Liabilities Depreciation/Amortisation Total Provision for Leave Encashment Provision for Gratuity Provision for Bonus Total Net Deferred Tax Liabilities (b) Assets 26,242 1,179 9,502 36,923 182,387 24,293 3,034 7,008 34,335 181,652 219,310 215,987 219,310 215,987 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
4. Contingent Liabilities not provided for (a) Corporate Guarantees given on behalf of Blue Dart Aviation Limited (b) Bank Guarantees
860,000 3,570
1,660,000 24,663
Note: Future cash outflows can be determined only when guarantees are invoked by parties to whom given.
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SCHEDULES
7. Segment Information The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns. (a) (i) Enterprises where control exists Deutsche Post AG, Germany - Ultimate Holding Company DHL Express (Singapore) Pte. Limited, Singapore Concorde Air Logistics Limited, India - Holding Company - Wholly Owned Subsidiary Company DHL Lemuir Logistics - Fellow Subsidiary Private Limited, India Company Blue Dart Aviation - Associate Company Limited, India Anil Khanna - Managing Director Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000)
8. Related Party Disclosures
(ii) Key Management Personnel (c) Transactions with related parties during the year: (i) With Holding/Subsidiary/Fellow Subsidiaries/Associate Company DHL Express (Singapore) Pte. Limited Dividend paid Concorde Air Logistics Limited Reimbursements towards air freight DHL Express (India) Private Limited International servicing cost Domestic service charges income Reimbursements of expenses DHL Lemuir Logistics Private Limited Domestic service charges income Deposit received/(paid) Reimbursements of expenses Blue Dart Aviation Limited Aircraft charter costs Capital Advances granted Capital Advances settled Capital Advances converted to Loan Inter Corporate loan granted Inter Corporate Deposit granted 5,223,930 - - - 894,330 618,830 3,842,287 567,563 (8,900) 1,124,458 151,121
71
DHL Express (India) - Fellow Subsidiary Private Limited, India Company DHL Lemuir Logistics - Fellow Subsidiary Private Limited, India Company Skyline Air Logistics - Fellow Subsidiary Limited, India Company Blue Dart Aviation Limited, India Anil Khanna Clyde C. Cooper Malcolm Monteiro Roger Crook Christopher Ong Jerry Hsu - Associate Company
19,228
19,228
(ii) Key Management Personnel - Managing Director - Director - Director - Director (Resigned on 30th June, 2011) - Director (Resigned on 27th September, 2011) - Director (Appointed on 30th June, 2011)
353,356
282,455
821,622 (522,986) 4,430
684,178 (371,258) 4,143
(327,302) 300 392
(293,911) 535 -
(b) Related party relationships where transactions have taken place during the year: (i) Holding/Subsidiary/Fellow Subsidiaries/Associate Company DHL Express (Singapore) - Holding Company Pte. Limited Concorde Air Logistics Limited, India - Wholly Owned Subsidiary Company
DHL Express (India) - Fellow Subsidiary Private Limited, India Company
SCHEDULES
Inter Corporate Deposit settled Interest income on Loan Interest on Inter-Corporate Deposit Domestic service charges income
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) (618,830) (120,550) (4,251) (4,705) (151,121) (4,258) (2,587) (6,069)
9. Commitments under lease agreements (a) The Company has entered into various non-cancellable operating lease agreements for official/residential premises for a period of two to five years and commitments as at December 31, 2011 are as under: Upto One Year Two to Five Years Above Five Years As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 159,836 249,548 37,532 28,990 36,241 -
(ii) With Key Management Personnel Remuneration - Anil Khanna (i) Receivable/(Payable) from/to Subsidiary/Fellow Subsidiaries/ Associate company Concorde Air Logistics Limited DHL Express (India) Private Limited (Net) DHL Lemuir Logistics Private Limited (Net) Blue Dart Aviation Limited (Net) (10,750) (111,015) 57,957 2,267,542 (13,400) (113,657) 68,202 1,339,458 19,846 19,846 18,202 18,202
(d) Related party balances as at the Year end: As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
(b) Company has entered into various cancellable leasing arrangements for motor cars, office equipments and for official /residential premises. The lease rentals for motor cars of ` 31,269 (000) [Previous year ` 21,636 (000)] has been included under the head Employee Costs - Salaries, Bonus and Leave Encashment under Schedule 13 forming part of the Profit and Loss Account. Lease rentals for office equipments of ` 16,322 (000) [Previous year ` 12,507 (000)] has been included under the head Other Costs - Lease Rentals and lease rentals for official and residential premises of ` 544,221 (000) [ Previous year ` 404,566 (000)] has been included under the head Other Costs - Rent under Schedule 14 forming part of the Profit and Loss Account. 10. Supplementary data as required under Schedule VI to the Act (a) Managerial remuneration: Salary 9,993 9,252 781 - 457 1,362 540 22,385 8,426 9,300 643 277 187 1,369 640 20,842 Commission [Refer (b) below] Contribution to Provident Fund Contribution to Superannuation Fund Leave Encashment paid Perquisites Directors sitting fees Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000)
(ii) Corporate guarantees given on behalf of Blue Dart Aviation Limited (iii) Payable to Key Management Personnel Anil Khanna
860,000
1,660,000
7,253
7,253
Provision for Leave Encashment/Compensated Absences and Gratuity, which are based on actuarial valuations done on an overall company basis, are excluded above.
72
SCHEDULES
(b) Computation of net profit in accordance with Sections 198 and 349 of the Act and commission payable to the directors (including Managing Director): Profit before Tax Add: Directors remuneration [Refer (a) above] Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 1,788,864 22,385 215,953 2,099 540 1,402,587 20,842 192,166 5,706 640
(d) Earnings in foreign currency: Service income Capital Goods
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 178,316 11,786 113,219 -
(e) CIF value of: (f) Expenditure in foreign currency: Foreign travel 1,334 4,218 5,552 1,110 3,104 4,214 Others (g) Remittance in foreign currency on account of dividends: Number of Non-resident shareholders Number of Equity Shares held Amount of dividend remitted Year to which dividend relates 1 1 19,227,887 19,227,887 19,228 19,228 January 1, January 1, 2010 to 2009 to December December 31, 2010 31, 2009
Depreciation/Amortisation provided in the books of account Loss on sale/scrapping of fixed assets (Net) Directors sitting fees Less: Depreciation under Section350 of the Act Gain on sale/scrapping of fixed assets (Net) Net profit as per Sections 198 and 349 of the Act Commission to Managing Director Commission to Independent Directors at 1% of Net Profit per Director, restricted to ` 10 lacs per Independent Director.
2,029,841 1,621,941 215,953 - 1,813,888 7,253 192,166 1,429,775 7,253
2,000 2,000 9,253 9,253
11. The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at December 31, 2011. The disclosure pursuant to the said Act is as under: Principal amount due to suppliers under MSMED Act Interest accrued and due to suppliers under MSMED Act on the above amount, unpaid Payment made to suppliers (other than interest) beyond the appointed day during the year Interest paid to suppliers under MSMED Act (other than Section 15) As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 4,231 6,455
(c) Legal and Professional Charges include Auditors Remuneration as follows: Audit Fees - Statutory Audit Fees - Tax Audit Fees Out of pocket expenses Other Matters
3,600 700 263 2,700 7,263
3,600 700 204 1,850 6,354

73
SCHEDULES
Interest paid to suppliers under MSMED Act (Section 15) Interest due and payable towards suppliers under MSMED Act for payments already made Interest accrued and remaining unpaid at the end of the year to suppliers under MSMED Act
As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) - -
12. The Provision for taxation for the year has been computed on the basis of the results for the year ended December 31, 2011, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31, 2012 relevant to the assessment year 2012-2013. 13. Information with regard to other matters specified in paragraphs 4C and 4D(c) of Part II of Schedule VI of the Companies Act, 1956 is either Nil or not applicable to the Company for the year ended December 31, 2011. 14. During the year, the Company has granted an unsecured interest bearing loan of ` 894,330 (000) to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (ACMI) Agreement. As at December 31, 2011 the outstanding loan balance is ` 2,018,788 (000). 15. Previous years figures have been regrouped/reclassified wherever necessary to conform to the current years classification.
Note: The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the Company.
Signature to Schedule 1 to 16 form part of the Financial Statements.
74
Balance Sheet Abstract and Companys General Business Profile

I. II. Registration Details Registration No. Balance Sheet Date 0 7 4 6 1 1 2 Month State Code 1 1 Year 1 1
3 1 Date
Capital raised during the year (Amount in ` Thousands) Public Issue N I Bonus Issue N I L L Rights Issue N I Private Placement N I L
III.
Position of Mobilisation and Deployment of Funds (Amount in ` Thousands) Total Liabilities Total Assets 8 3 7 1 5 8 3 8 3 7 1 5 8 3
Sources of Funds Paid-up Capital 2 3 7 6 2 8 Reserves & Surplus 6 3 4 N I L 3 7 4 3
Secured Loans
Unsecured Loans N I L
Deferred Tax Liability(Net) 1 8 2 3 8 7
Application of Funds Net Fixed Assets 2 3 9 4 1 7 8 Investments 7 2 2 4 5 4 Net Current Assets 1 6 2 8 3 3 8 Misc. Expenditure N I L
Loan to Associate 2 0 1 8 7 8 8
Accumulated Losses N I L
IV.
Performance of Company (Amount in ` Thousands) Turnover * 1 5 1 3 8 6 5 4 Total Expenditure** 1 3 3 4 9 7 9 0 ** Net of Interest Income
* Including Other Income
+ -
Profit/Loss before tax 1 7 8 8 8 6 4
Profit/Loss after tax 1 2 2 2 4 1 7
+ - Earning Per Share in ` 5 1 . 5 2
Dividend rate %. 2 0 . 0 0
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Balance Sheet Abstract and Companys General Business Profile
V.
Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description D o m e s t i I n t e r n a c t i p r i o r i t y s e r v i c e s
o n a l
D a r t
A p e x
Sharad Upasani Anil Khanna Malcolm Monteiro Managing Director Chairman Director Jerry Hsu Clyde Cooper Suresh G. Sheth Director Director Director Yogesh Dhingra Tushar Gunderia Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Chief Operating Officer
76
STATEMENT PURSUANT TO SECTION 212(1) (e) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
Name of the Subsidiary Company Holding Companys Interest Extent Holding The Financial Year of the Subsidiary Company ended on Net aggregate amount of the Subsidiary Companys profits/(losses) dealt with in the Holding Companys accounts For the Subsidiarys aforesaid financial year For the previous financial years Net aggregate amount of the Subsidiary Companys profits/(losses) not dealt with in the Holding Companys accounts For the Subsidiarys aforesaid financial year (` In thousand) For the previous financial years (` In thousand) : : : : : : : : Concorde Air Logistics Limited 110,000 Equity Shares of `10 each fully paid up 100% December 31, 2011 Nil N.A. 5,383 2,880
Sharad Upasani Anil Khanna Malcolm Monteiro Chairman Managing Director Director Jerry Hsu Clyde Cooper Suresh G. Sheth Director Director Director Yogesh Dhingra Tushar Gunderia Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Chief Operating Officer
77
BOARD OF DIRECTORS
CONCORDE AIR LOGISTICS LIMITED
BOARD OF DIRECTORS Vaidhyanathan Iyer Tushar Gunderia D. Basappa
PRINCIpAl bANKERS Canara Bank ICICI Bank Ltd. Indian Overseas Bank
AUDITORS Price Waterhouse
REgISTERED OFFICE 17, Adarsh Industrial Estate, Sahar Road, Chakala, Andheri (East), Mumbai - 400 099
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CONcorde AIR LOGiSTICs LIMITED | BOARD OF dIRECTORS | AnnUal Report 2011
DIRECTORS REPORT
To the Members Your Directors have great pleasure in presenting Eighth Annual Report of your Company for the year ended December 31, 2011. FINANCIAL RESULTS (` in Lacs) DIRECTORS In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the Company, Mr. Basappa, Director, retire by rotation at the ensuing Annual General Meeting and, being eligible, offer himself for re-appointment. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirements of the provisions of the Companies Act, 1956, your Directors confirm that: i. 173.99 92.61 58.18 214.48 110.30 18.18 92.12 38.29 53.83 130.77 96.45 30.30 193.04 64.48 18.31 46.17 17.37 28.80 ii. in the preparation of annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures; the Directors have selected such accounting policies and applied them consistently and made judgments and estimates, that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the year and of the profit of the Company for that year;
For the year For the year ended ended December December 31, 2011 31, 2010 Revenues: Services Commission Other Income Less : Operating Expenses Operating Profit (EBIDTA)
Less : Depreciation / Amortisation Earnings before Tax Less : Provision for income tax Earnings after tax
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv. the Directors have prepared the Annual Accounts on a going concern basis. AUDITORS The Statutory Auditors, M/s. Price Waterhouse, Chartered Accountants, (Firm Registration no. 301112E), retire at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Company has received necessary certificate from them confirming that their re-appointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956. The Board of Directors recommends re-appointment of M/s. Price Waterhouse Chartered Accountants, (Firm Registration no. 301112E),as Statutory Auditors of the Company, subject to necessary approval from the Shareholders of the Company. FIXED DEPOSIT The Company has not accepted any deposits within the meaning of the provisions of Section 58A of the Companies Act, 1956.
Your Directors wish to strengthen financial position of the Company and as such, no dividend is recommended for the year under consideration. INDUSTRY Your Company is engaged in the business of clearing and forwarding of time sensitive air cargo packages. Your Company is a registered Air Cargo Agent with International Air Transport Association (IATA) and licensed Custom House Agent under the provisions of Customs Act, 1962. Your Company is also engaged in the business of clearance of import cargo in addition to export cargo at Mumbai. Your Company also has a valid break-bulk license to handle consolidated shipments.
CONcorde AIR LOGiSTICs LIMITED | dIRECTORS REPORT | AnnUal Report 2011
79
DIRECTORS REPORT
A Conservation of Energy B Technology Absorption C Foreign Exchange Earnings & Outgo Earnings : : : : Nil ` 123.96 lacs (previous Year : ` 149.69 lacs) Not applicable Not applicable
COMPLIANCE CERTIFICATE In accordance with the provisions of Section 383(A) of the Companies Act, 1956, M/s. Nilesh Shah & Associates, Company Secretaries in Whole time Practice, have issued Compliance Certificate for the year ended December 31, 2011, which has been attached as an Annexure to this Report. EMPLOYEES Your Directors hereby wish to place on record their appreciation of the efficient services rendered by its Employees. During the year under review, your Company did not have any employee falling under the provisions of Service 217 (2A) of the Companies Act, 1956. PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND EXPENDITURE The information pursuant of Section 217(1) (e) of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is as under
Outgo : ACKNOWLEDGEMENT
Your Directors express their deep sense of gratitude to our customers, associates, banks, suppliers and government authorities for their continuous support during the year under review.
For and on behalf of the Board of Directors Vaidhyanathan Iyer Tushar Gunderia Director Director D. Basappa Director
Mumbai, January 31, 2012
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CONcorde AIR LOGiSTICs LIMITED | dIRECTORS REPORT | AnnUal Report 2011
AUDITORS REPORT
To the Members of CONCORDE AIR LOGISTICS LIMITED 1. We have audited the attached Balance Sheet of Concorde Air Logistics Limited (the Company) as at December 31, 2011, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: (a) (b) (c) (d) (e) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act; On the basis of written representations received from the directors, as on December 31, 2011 and taken on record by the Board of Directors, none of the directors is disqualified as on December 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the company as at December 31, 2011; (ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
2.
3.
4.
(f)
CONcorde AIR LOGiSTICs LIMITED | AUDITORS REPORT | AnnUal Report 2011
81

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, service-tax and cess which have not been deposited on account of any dispute. As informed to us, sales-tax, wealth tax, customs duty and excise duty are not applicable to the Company for the year. The Company has no accumulated losses as at December 31, 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/ societies are not applicable to the Company.
[Referred to in paragraph 3 of the Auditors Report of even date to the members of Concorde Air Logistics Limited on the financial statements for the year ended December 31, 2011] 1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets. (b) The fixed assets of the Company have been physically verified by the Management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable. (c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the Company during the year.
7.
8.
9.
2. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. 3. According to the information and explanations given to us, there have been no contracts or arrangements referred to in Section 301 of the Act during the year to be entered in the register required to be maintained under that Section. Accordingly, the question of commenting on transactions made in pursuance of such contracts or arrangements does not arise. 4. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. 5. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. 6. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess have generally been regularly deposited with the appropriate authorities. As informed to us, sales tax, customs duty and excise duty are not applicable to the Company for the current year.
10. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. 11. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. 12. The Company has not obtained any term loans. 13. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. 14. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. 15. The Company has not issued debentures during the year. 16. The Company has not raised any money by public issues during the year. 17. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.
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CONcorde AIR LOGiSTICs LIMITED | ANNEXURE TO AUDITORS REPORT | AnnUal Report 2011
[Referred to in paragraph 3 of the Auditors Report of even date to the members of Concorde Air Logistics Limited on the financial statements for the year ended December 31, 2011] 18. Clauses (ii), (iii), (viii) and (xii) of paragraph 4 of the Order is not applicable in the case of the Company for the year, since in our opinion there is no matter which arises to be reported in the aforesaid Order.
CONcorde AIR LOGiSTICs LIMITED | ANNEXURE TO AUDITORS REPORT | AnnUal Report 2011
83
COMPLIANCE CERTIFICATE
(Under Section 383A (1) of the Companies Act, 1956) CIN : U60230MH2004PTC146141 Authorised Capital : ` 2,000,000/To the Members of CONCORDE AIR LOGISTICS LIMITED Mumbai. We have examined the necessary registers, records, books and papers of CONCORDE AIR LOGISTICS LIMITED (the Company) as required to be maintained under the Companies Act, 1956, (the Act) and the rules made thereunder and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended on 31st December, 2011. In our opinion and to the best of our information and according to the examinations carried out by us and the explanations furnished to us by the Company, its officers and agents, we certify that in respect of the aforesaid financial year: 1. The Company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made there under and all entries therein have been duly recorded. 2. The Company has duly filed the forms and returns as stated in Annexure B to this certificate with the Registrar of Companies, Maharashtra, Mumbai or such other authorities within the time prescribed under the Act and the rules made thereunder. The Company was not required to file any forms and returns with the Regional Director, Central Government, Company Law Board or other authorities. 3. The status of the Company, being Public Limited Company, comments are not required. 4. The Board of Directors duly met 4 (four) times on 01.02.2011, 25.04.2011, 18.07.2011 and 20.10.2011 respectively, in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose. 5. The Company was not required to close its Register of Members or Debenture holders during the financial year under review. 6. The Annual General Meeting for the year ended 31 December, 2010 was held on 25th April, 2011 after giving due notice to the members of the Company and the resolutions passed thereat were duly recorded in the Minutes Book maintained for the purpose.
st
9. The Company has not entered into any contract in violation of the provisions of Section 297 of the Act in respect of contracts specified in that section. 10. The Company has made necessary entries in the register maintained under Section 301 of the Act. 11. As there were no instances falling within the purview of Section 314 of the Act, the Company was not required to obtain any approvals from the Board of Directors, Members or the Central Government. 12. The Company has not issued duplicate share certificates during the financial year under review and hence no comment is invited. 13. The Company has: (i) no instances of allotment, transfer or transmission of shares during the financial year under review and hence no comment is invited in this respect; (ii) not declared any dividend during the financial year and hence the Company was not required to deposit any amount as unpaid dividend /interim dividend in a separate Bank Account; (iii) not declared any dividend during the year and hence the Company was not required to pay / post warrants to any members of the Company; (iv) no amount due to be transferred to the Investor Education and Protection Fund in respect of unpaid dividend account or application money due for refund or matured deposits or matured debentures and the interest accrued thereon which have remained unclaimed or unpaid for a period of seven years; (v) duly complied with the requirements of Section 217 of the Act. 14. The Board of Directors of the Company is duly constituted. There were no appointment of additional directors, alternate directors and directors to fill casual vacancies, during the financial year under review. 15. The Company has not appointed any Managing Director / Whole time Director / Manager during the financial year under review. 16. The Company has not appointed any sole-selling agents during the financial year under review. 17. The Company was not required to obtain any approvals from the Central Government, Company Law Board, Regional Director, Registrar or such other authorities as may be prescribed under the various provisions of the Act during the financial year under review.
7. No Extra Ordinary General Meeting was held during the financial year under review. 8. The Company has not advanced any loans to its directors and / or persons or firms or Companies referred to in the Section 295 of the Act, during the year under review.
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CONcorde AIR LOGiSTICs LIMITED | COMPLIANCE CERTIFICATE | AnnUal Report 2011
18. The directors have disclosed their interest in other firms / companies to the Board of Directors pursuant to the provisions of the Act and the rules made there under. 19. The Company has not allotted any equity shares or any other securities during the financial year under review and hence no comment is invited. 20. The Company has not bought back any shares during the financial year under review. 21. The Company has not issued any preference shares / debentures and consequently there is no redemption of preference shares / debentures during the year under review. 22. There were no transactions necessitating the Company to keep in abeyance any corporate benefits of the members pending registration of transfer of shares. 23. The Company has not invited / accepted any deposits including any unsecured loans falling within the purview of the provisions of Sections 58A and 58AA read with Companies (Acceptance of Deposit) Rules, 1975 during the financial year under review. 24. The Company has not borrowed any money exceeding limit provided under provisions of Section 293 (1) (d) of the Act, during the financial year ending 31st December, 2011. 25. The Company has not made any loans or advances or investments or given guarantees or provided securities to other bodies corporate attracting the Provisions of Section 372A of the Act. The Company was not required to make any entries in the register required to be kept for the purpose. 26. The Company has not altered the provisions of the memorandum with respect to situation of the Companys registered office from one state to another during the financial year under review. 27. The Company has not altered the provisions of the memorandum with respect to the objects of the Company during the financial year under review. 28. The Company has not altered the provisions of the Memorandum of Association with respect to name of the Company during the financial year under review. 29. The Company has not altered the provisions of the memorandum with respect to share capital of the Company during the financial year under review. 30 The Company has not altered any provisions of its Articles of Association during the financial year under review. 31. As explained to us, there was no prosecution initiated against or show cause notices received by the Company for alleged offenses under the Act and no fines and penalties or any other punishment was imposed on the Company during the financial year under review. 32. As explained to us, the Company has not received any money as security from its employees during the financial year under review. 33. The Company has no outstanding amount to be deposited with the prescribed authority pursuant to the provisions of Section 418 of the Act.
Place : Mumbai Date : January 31, 2012
For Nilesh Shah & Associates Company Secretaries (Nilesh Shah) Partner (FCS - 4554) C.P.No.: 2631
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Annexure A
Sr. No. Registers maintained by the Company Under Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Register of Members Minutes Books of proceedings of: 1. Meetings of the Board of Directors 2. General Meetings Register of Contracts, Companies and Firms in which directors are interested Register of Directors, Managers and Secretary Register of Directors Shareholdings Register of Charges Register of Renewed and Duplicate Certificate Register of Share Application and Allotment Register of Directors Attendance Register of Members Attendance Register of Share Transfer 150 193
301 303 307 143 Issue of Share Certificate Rules Voluntary Voluntary Voluntary Voluntary (108)
86
Annexure B
Sr. No. Form No. 1 2 3 Section Purpose Date of Filing & SRN
Form 66 (Compliance Cert) 383A As required under Companies (Compliance Certificate) Rules, 2001. P67405514 Dtd.: 31.12.2010 16.05.2011 Form 23AC / Form 23ACA 210 As per requirement of the Act (Annual Accounts) Dtd.: 31.12.2010 Form 20B (Annual Return) 159 As per requirement of the Act Dtd.: 25.04.2011
P67516500 25.05.2011 P67646547 02.06.2011
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CONCORDE AIR LOGISTICS LImITED BAlANCE ShEET AS AT DECEmbER 31, 2011

Schedule No. SOURCES OF FUNDS Shareholders Funds Capital Reserves and Surplus APPLICATION OF FUNDS Fixed Assets 3 Gross Block Less: Depreciation / Amortisation Net Block Capital Work in Progress (including capital advances) 4 19,672 15,233 4,439 155 4,594 20,838 14,533 6,305 6,305 1 2 1,100 50,773 1,100 45,390 As at December 31, 2011 in ` (000) As at December 31, 2010 in ` (000)
TOTAL
51,873 46,490
Investments Deferred Tax Assets (Net) [Refer notes 1(g) and 5 - Schedule 14] Deferred Tax Assets Less : Deferred Tax Liabilities Current Assets, Loans and Advances Sundry Debtors Cash and Bank Balances Loans and Advances Less: Current Liabilities and Provisions Liabilities Provisions 8 9 5 6 7
20,768 18,803
685 150 535 10,778 25,623 12,679 49,080 20,993 2,111 23,104
617 227 390 13,400 6,458 19,646 39,504 16,653 1,859 18,512
Net Current Assets TOTAL Notes to Accounts 14

25,976 20,992 51,873 46,490
For Price Waterhouse V. N. Iyer Tushar Gunderia Firm Registration Number: 301112E Director Director Chartered Accountants Neeraj Gupta D. Basappa Partner Director Membership No. F55158 Place : Mumbai Place : Mumbai Dated: January 31, 2012 Dated: January 31, 2012
88
CONCORDE AIR LOGiSTICs Limited | Financials | AnnUal Report 2011
CONCORDE AIR LOGISTICS LImITED PROFIT AND LOSS ACCOUNT FOR ThE yEAR ENDED DECEmbER 31, 2011
Schedule Year ended Year ended No. December December 31, 2011 31, 2010 in ` (000) in ` (000) INCOME Service Charges[Refer Note 1 (d)(i) - Schedule 14 ] Commission [Refer Note 1 (d)(ii) - Schedule 14 ] Other Income 10 EXPENDITURE 11 Freight, Handling and Servicing Costs Employee Costs 12 Other Costs 13 Profit Before Depreciation and Taxation Depreciation / Amortisation Profit Before Taxation Provision for Taxation [Refer Notes 1(g) and 5 - Schedule 14] Current Tax Deferred Tax Profit After Taxation Balance brought forward from previous year Balance carried forward to Balance Sheet Earnings Per Share (Refer Note 4 -Schedule 14) Basic and Diluted Earnings Per Share (in `) Nominal value per equity share (in `) Notes to Accounts 14 17,399 13,077 9,261 9,645 5,818 3,030 32,478 25,752 4,532 4,000 13,243 12,348 3,673 2,956 21,448 19,304 11,030 6,448 1,818 9,212 1,831 4,617
3,974 1,886 (145) (149) 3,829 1,737 5,383 31,890 37,273 2,880 29,010 31,890
48.94 26.18 10.00 10.00
Schedules 10 to 14 referred to above form an integral part of the Profit and Loss Account. This is the Profit and Loss Account referred to in our report of even date.
89
CONCORDE AIR LOGISTICS LImITED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEmbER 31, 2011
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) A. Cash flows from Operating activities: 9,212 4,617 Profit before Taxation Adjustments for: Depreciation / Amortisation 1,818 1,831 Interest Income (1,491) (27) Dividend Income (1,072) (893) Loss/(Gain) on sale /scrapping of fixed assets (Net) 52 Provision for Gratuity 221 264 Provision for Leave Encashment 31 70 Operating profit before working capital changes 8,771 5,862 Adjustments for changes in working capital : Decrease in Sundry Debtors 2,622 8,400 (218) 234 (Increase)/Decrease in Other Receivables (Decrease)/Increase in Trade and Other Payables 4,340 (2,796) Cash generated from Operations 15,515 11,700 Taxes paid (Net) 4,212 (7,724) Net cash from Operating activities 19,727 3,976 B. Cash flows from Investing activities: Purchase of Fixed Assets (231) (27) Receipt from Sale of Asset 72 Interest Received 491 23 Dividend Received 1,072 893 Investments in Mutual funds (29,531) (51,166) Redemptions from mutual funds 27,515 47,593 Investments in National Saving Certificates 50 (50) Net cash from Investing activities (562) (2,734) C. Cash flows from Financing activities: Net cash from/(used in) Financing activities - Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 19,165 1,242 Cash and cash equivalents at the beginning of the year 6,458 5,216 Cash and cash equivalents at the end of the year 25,623 6,458 As at December As at December 31,2011 31,2010 in ` (000) in ` (000) Cash and cash equivalents comprise of: Cash on hand 43 46 Balance with Scheduled Banks on Current Accounts 5,324 6,172 on DepositAccounts 20,000 on Margin Money Accounts 256 240 25,623 6,458
Notes :
1. The above Cash Flow Statement has been prepared under the indirect method set out in Accounting Standard - 3 on Cash Flow Statements notified under sub Section (3C) of Section 211 of the Companies Act, 1956 of India. 2 Cash flowsin brackets indicate cash outgo. 3 Cash and cash equivalentsincludes `. 256 (000) [(previous year - `. 300 (000)] which are not available for use by the Company. (Refer Schedule 6 in the Financial Statements)
This is the Cash Flow Statement referred to in our report of even date.
90
SCHEDULES
Schedules forming part of the Balance Sheet As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) SCHEDULE 1 CApITAl Authorised 200,000 equity shares of `10 each Issued and Subscribed 110,000 equity shares of ` 10 each fully paid-up 1,100 1,100 2,000 2,000 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) SCHEDULE 2 RESERVES AND SURPLUS Securities Premium Profit and Loss Account 13,500 37,273 50,773 13,500 31,890 45,390
Total
Total Note:
1,100 1,100
Of the above, 110,000 equity shares are held by Blue Dart Express Limited, the holding company and its nominees. The ultimate holding company is Deutsche Post AG, Germany.
SChEDUlE 3 FIxED ASSETS
[Refer Notes 1(b) and 1(i) - Schedule 14]
in ` (000)
Description of Assets GROSS BLOCK (At Cost) DEPRECIATION / AMORTISATION NET BLOCK As at Additions Deductions / As at As at For the Deductions / As at As at As at
January Adjustments December January Year Adjustments December December December 1, 2011 31, 2011 1, 2011 31, 2011 31, 2011 31, 2010 14,900 33 2,022 272 571 699 496 1,845 20,838 20,811 - - - 76 - - - - 76 27 - - - 193 426 127 496 - 1,242 - 14,900 33 2,022 155 145 572 - 1,845 19,672 20,838 9,939 26 2,018 260 348 447 487 1,008 14,533 12,702 1,490 2 - 16 20 76 9 205 1,818 1,831 - - - 193 306 127 496 (4) 1,118 - 11,429 28 2,018 83 62 396 - 1,217 15,233 14,533 3,471 5 4 72 83 176 - 628 4,439 6,305 4,961 7 4 12 223 252 9 837 6,305
Intangible Assets: Goodwill [Refer Note below] Computer Software Tangible Assets Buildings Office Equipment Electrical Equipment Computers Furniture and Fittings Vehicles TOTAL Previous Year
Notes: The balance period over which goodwill will be amortised is two years three months.
91
SCHEDULES
Schedules forming part of the Balance Sheet As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) SCHEDULE 4 INvESTmENTS (Long Term, Unquoted, At cost) [Refer Note 1 (c) - Schedule 14 ] Non - Trade In Government Securities National Saving Certificates (6 year NSCs - VIII issue) Others (Current) (Lower of cost and market value) Units in Mutual Funds 195,947 (Previous Year - 176,886 ) Units of ICICI Prudential Flexible Income - Plan Premium Daily Dividend Reinvest Dividend (269,542 units purchased 9,748 units cumulated and 260,229 units sold during the year) NIL ( Previous Year - NIL ) Units of ICICI Prudential Liquid Super Institutional Plan- Dividend Daily Reinvest Dividend (29,993 units purchased, 409 units cumulated and 30,402 units sold during the year) Total 20,768 18,803 SCHEDULE 5 SUNDRy DEbTORS (Unsecured, considered good) Other debts Total SCHEDULE 6 CASh AND BANK BAlANCES Cash on Hand Balance with scheduled banks : on Current Accounts on Deposit Accounts on Margin Money Accounts
92
Note: The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company. As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) SCHEDULE 7 LOANS AND ADvANCES (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received : Prepaid Expenses Other Deposits Advance Tax (Net of Provision) Other Advances 228 2,146 10,212 93 12,679 252 940 18,397 57 19,646
50
100
20,718
18,703
Total SCHEDULE 8 Liabilities - Sundry Creditors : (a) Micro and Small Enterprises* (b) Others (* Determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors) Other Liabilities 10,778 10,778 13,400 13,400 Total SCHEDULE 9 PROvISIONS [Refer Note 1(e) Schedule 14] Provision for Leave Encashment Provision for Gratuity Total
- 19,654
15,756
1,339 20,993
897 16,653
43 5324 20,000 256 25,623
46 6,172 240 6,458
419 1,692 2,111
388 1,471 1,859
Total
SCHEDULES
Schedules forming part of the Profit and Loss Account Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) SCHEDULE 10 OThER INCOmE Interest income Interest on income tax refund Dividend income Exchange gain 1,491 955 1,072 2,300 5,818 27 893 2,110 3,030
SCHEDULE 14 NOTES TO ACCOUNTS 1. Significant Accounting Policies (a) Basis of preparation of Financial Statements The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards notified under sub section (3C) of Section 211 of the Companies Act, 1956 (the Act) and the other relevant provisions of the Act. The significant accounting policies are as follows:Fixed assets are stated at cost less accumulated depreciation/ amortisation.The Company capitalises all costs relating to the acquisition, installation and substantial modifications to fixed assets. Depreciation on fixed assets is provided under straight line method at the rates specified in Schedule XIV to the Companies Act, 1956, except in respect of the following assets where such rates are higher than the prescribed schedule XIV rates, so as to ensure that such assets are written off over their estimated useful lives : Description of Assets Useful Life (in years) Office Equipment Electrical Equipment 15 15
(b) Fixed Assets and Depreciation/Amortisation
Total SCHEDULE 11 FREIghT, HANDlINg AND SERvICINg COSTS Handling and clearing charges Domestic network operating costs Printing, stationery and consumables
3,459 964 109 4,532
2,857 997 146 4,000
Total SCHEDULE 12 EmplOyEE COSTS [Refer Note 1 (e) and 2- Schedule 14] Salaries, wages, bonus and leave encashment Contribution to provident and other funds Staff welfare expenses Total SCHEDULE 13 OThER COSTS Legal and professional charges [Refer Note 6(a)- Schedule 14] Office expenses Electricity Communication expenses Rates and taxes Repairs and maintenance - others Travelling and conveyance Insurance Loss on Sale of assets Total
12,370 11,414 788 85 13,243 856 78 12,348
Assets individually costing less than ` 5,000 are fully depreciated in the year of acquisition. Computer software is amortised under straight line method at the rates specified in Schedule XIV to the Companies Act, 1956, as prescribed for computers. Goodwill represents the excess of the value of the erstwhile partnership business as a whole over its net asset value as at the date of registration and is stated at cost less accumulated amortisation.Goodwill is amortised using the straight line method over a period of 10 years. Long Term Investments are stated at cost. Provision is made to recognise a diminution, other than temporary, in the value of investments. Current Investments are valued at lower of cost and market value.
1,266 206 203 284 915 155 414 52 3,673
1,619 190 170 299 90 136 336 2,956
(c) Investments
(d) Service Charges (i) Service charges for clearing and forwarding of shipments are recognised as income when shipments are manifested and represent amounts invoiced, net of service tax and all discounts and allowances.
93
178 116
SCHEDULES
(ii) Commission is accrued when cargo is delivered to the custody of the airline and the master airway bill is issued. (e) Employee Benefits (i) Short Term Employee Benefits : The employees of the Company are entitled to leave encashment as per the leave policy of the Company. Defined Contribution Plan The Company has Defined Contribution plans for post employment benefits namely Provident Fund which are recognised by the income tax authorities and administered through trustees.
(g) Taxes on Income Provision for tax for the year is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax is recognised, subject to prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised for unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. The Company assesses at each Balance Sheet date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount.The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.
(ii) Long Term Employee Benefits :
(h) Provisions and Contingent Liabilities
Under the Provident Fund Plan, the Company contributes to a Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution. The Company contributes to State plans namely Employees State Insurance Fund and Employees Pension Scheme 1995 and has no further obligation beyond making its contribution. The Companys contributions to the above funds are charged to revenue every year. Defined Benefit Plan The Company has a Defined Benefit plannamely Gratuity and Leave Encashment for all its employees. Liability for Defined Benefit Plan is provided on the basis of valuations, as at the Balance Sheet Date, carried out by an Independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the Projected Unit Credit Method.
(i) Impairment of Assets
(iii) Termination benefits are recognised as an expense as and when incurred. (iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the Profit and Loss Account as income or expense. (f) Foreign Currency Transactions Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at the date of the Balance Sheet. All exchange differences are dealt with in the Profit and Loss Account.
2 The Company has classified the various employee benefits as under : I Defined Contribution Plans a. Provident Fund b. State Defined Contribution Plans i. Employers Contribution to Employees State Insurance
ii. Employers Contribution to Employees Pension Scheme 1995.
94
SCHEDULES
During the year, the Company has recognised the following amounts in the Profit and Loss Account -
Year ended Year ended December December 31, 2011 31, 2010 In ` (000) In ` (000) - Employers Contribution to Provident Fund* - Employers Contribution to Employees State Insurance* - Employers Contribution to Employees Pension Scheme 1995* 280 68 241 70
As at As at December December 31, 2011 31, 2010 In ` (000) In ` (000) Benefits Paid Nil (43) 1,691 (71) 108 1,471 Acturial (gain) / loss on obligations Present Value of Obligation as at Year end.
B) Amount recognised in the Balance Sheet
169
163
* Included in Contribution to provident and other funds (Refer Schedule 12) II Defined Benefit Plan Valuations in respect of gratuity and Leave encashment have been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions. GRATUITY As at As at December December 31, 2011 31, 2010 Discount Rate (per annum) Rate of increase in Compensation levels Rate of Return on Plan Assets 9.25% 6.75% Nil 8.25% 6.75% Nil
As at As at December December 31, 2011 31, 2010 In ` (000) In ` (000) Present Value of Obligation at the end of the year Fair Value of Plan Assets as at the end of the year (1,691) Nil (1,471) Nil
Unfunded Liability recognised in the Balance Sheet**
(1,691)
(1,471)
** Included in provisions (Refer Schedule 9)
C) Expenses recognised in the Profit and Loss Account
Year ended Year ended December December 31, 2011 31, 2010 (in ` 000) (in ` 000) Current Service Cost 142 Nil 121 Nil Nil Nil (43) 220 127 Nil 100 Nil Nil Nil 108 335 Past Service Cost Interest Cost Expected Return on Plan Assets Curtailment Cost / (Credit) Settlement Cost / (Credit) Net actuarial (gain) / loss recognised in the Year Total Expenses recognised in the Profit and Loss Account***
Expected Average remaining working lives of employees (years)
18
18
A) Changes in the Present Value of Obligation As at As at December December 31, 2011 31, 2010 In ` (000) In ` (000) Present Value of Obligation at the beginning of the year 1,471 121 Nil 142 Nil Nil 1,207 100 Nil 127 Nil Nil
Interest Cost Past Service Cost Current Service Cost Curtailment Cost / (Credit) Settlement Cost / (Credit)
*** Included in Employee costs (Refer Schedule 12)
III Other Long-term Employee Benefits
The liabilities for Leave Enchament as at the year is ` 419 (000) [ Previous Year ` 388 (000)]
95
SCHEDULES
3 Contingent liability not provided for : As at As at December December 31, 2011 31, 2010 (in ` 000) (in ` 000) Capital Commitments 2,044 240 240 Bank Guarantee
6 Supplementary data as required under Schedule VI to the Companies Act, 1956 Year ended Year ended December December 31, 2011 31, 2010 (in ` 000) (in ` 000) (a) Legal and Professional Charges
Note : Future cash outflows can be determined only when guarantee is invoked by the party to whom given.
include Auditors Remuneration as follows : Audit Fees- Statutory Audit Fees - Tax Audit Fees Reimbursement of Expenses (b) Expenditure in foreign Currency Freight charges IATA fees and examination fees (a) Enterprises where control exists (i) Blue Dart Express Limited Holding Company (ii) Deutsche Post AG, Germany Ultimate Holding Company (b) Related party relationships where transactions have taken place during the Year (i) Blue Dart Express Limited (ii) Blue Dart Aviation Limited Holding Company Enterprise over which Blue Dart Express Limited is able to exercise significant influence. 12,396 - 12,396 14,960 9 14,969 200 100 8 308 200 100 3 303
4 Earnings Per Share : Year ended Year ended December December 31, 2011 31, 2010 (a) Profit After Taxation for the year (` 000) 5,383 2,880 110,000 110,000
(b) Weighted average number of shares (Nos.) (c) Basic and Diluted Earnings Per Share (`) 5 Deferred Tax Balances:
48.94 26.18
(d) Nominal value of equity (`) 10.00 10.00
7 Related party disclosures
The components of deferred tax assets and liabilities arising on account of timing differences between taxable income and accounting:
As at As at December December 31, 2011 31, 2010 (in ` 000) (in ` 000) (a) Assets Provision for Leave Encashment Provision for Gratuity 136 549 99 518
Total (b) Liabilities Depreciation/Amortisation Total Net Deferred Tax Assets
685 617 150 150 535 227 227 390
96
SCHEDULES
(c) Transactions with related parties during the period :
8 Segment information The Company is primarily engaged in a single segmentbusiness of clearing and forwarding of time sensitive shipments within India.
Year ended Year ended December December 31, 2011 31, 2010 (in ` 000) (in ` 000) (i) With Holding Company Blue Dart Express Limited Recoveries towards air freight,etc. (ii) With Enterprises over which Blue Dart Express Limited is able to exercise significant infuence. Blue Dart Aviation Limited Reimbursement of expenses Agency charges incurred for customs clearing 24,772 2,950 27,168 3,660 353,356 282,455
9 The Provision for Taxation for the year has been computed on the basis of the results for the year ended December 31, 2011, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31, 2012 relevant to the assessment year 2012-13. 10 Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current years classification.
(d) Related party balances at the year end :
Receivable from Holding Company Blue Dart Express Limited 10,750 13,400
Signatures to Schedules 1 to 14 form part of the Balance Sheet and Profit and Loss Account. For and on behalf of the Board of Directors
For Price Waterhouse V. N. Iyer Tushar Gunderia Director Director Firm Registration Number: 301112E Chartered Accountants Neeraj Gupta D. Basappa Partner Director Membership No. F55158 Place : Mumbai Place : Mumbai Dated: January 31, 2012 Dated: January 31, 2012
Schedule forming part of the Accounts 11. Balance Sheet Abstract and Companys General Business Profile
I. II. Registration Details 1 4 6 1 4 1 Registration No. Balance Sheet Date State Code 1 1
3 1 1 2 1 1 Date Month Year
Capital raised during the year (Amount in ` Thousands) Public Issue N I N I L L Rights Issue N I Private Placement N I L 97 L
Bonus Issue
SCHEDULES
Schedule forming part of the Accounts 11. Balance Sheet Abstract and Companys General Business Profile
III. Position of Mobilisation and Deployment of Funds (Amount in ` Thousands) Total Liabilities Total Assets 7 4 9 7 8 Sources of Funds Paid-up Capital 1 1 0 0 N I L Reserves & Surplus 5 0 7 7 3 N I L 7 4 9 7 8
Secured Loans Unsecured Loans
Deferred Tax Liability (Net) N I L
Application of Funds Net Fixed Assets Investments 4 5 9 4 2 0 7 6 8 Misc. Expenditure N I Deferred Tax Asset (Net) 5 3 5 L
Net Current Assets 2 5 9 7 6
Accumulated Losses N I L
IV.
Performance of Company (Amount in ` Thousands) Turnover * 3 2 4 7 8 Total Expenditure** 2 3 2 6 6 ** Net of Interest Income - Profit/Loss after tax 5 3 8 3 - Dividend rate %. N I L
* Including Other Income + - Profit/Loss before tax 9 2 1 2 +
V.

Item Code No. (ITC Code) Product Description Item Code No. (ITC Code) Product Description C U S
+ - Earning Per Share in ` 4 8 . 9 4
H O U S E A G E N T
Generic Names of Three Principal Products/Services of Company (as per monetary terms)
T O M
C L E A R
I N G
A N D A G E N T
F O R W A R D I N G
Signatures to Schedule 1 to 14

For and on behalf of the Board of Directors Director Director Director

D. Basappa V. N. Iyer Tushar Gunderia
Place: Mumbai Dated: January 31, 2012

98
AUDITORS REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF BLUE DART EXPRESS LIMITED
1. We have audited the attached Consolidated Balance Sheet of Blue Dart Express Limited (the Company) and its subsidiary; hereinafter referred to as the Group (refer Note 10 on Schedule 16 to the attached Consolidated Financial Statements) as at December 31, 2011, the related Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These Consolidated Financial Statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We report that the Consolidated Financial Statements have been prepared by the Companys management in accordance with the requirements of Accounting Standard (AS) 21 - Consolidated Financial Statements and Accounting Standard (AS) 23 - Accounting for Investments in Associates in Consolidated Financial Statements, notified under sub-section (3C) of Section 211 of the Companies Act, 1956. In our opinion and to the best of our information and according to the explanations given to us, the attached Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at December 31, 2011; in the case of the Consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date: and in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date.
2.
3.
4.
BLUE DART EXPRESS LIMITEd (CONSOLIDATED) | AUdIToRS REPoRT | AnnUAL REPoRT 2011
99
Blue Dart Express Limited (Consolidated) Balance Sheet as at December 31, 2011
Schedule As at December As at December No. 31, 2011 31, 2010 in ` (000) in ` (000) SOURCES OF FUNDS Shareholders Funds Share Capital 1 237,628 237,628 Reserves and Surplus 2 6,399,693 5,212,923 6,637,321 5,450,551 Deferred Tax Liabilities (Net) [Refer Notes 1(k) and 6 - Schedule 16] Deferred Tax Liabilities 219,460 216,214 Less: Deferred Tax Assets 37,608 34,952 181,852 181,262 TOTAL 6,819,173 5,631,813 APPLICATION OF FUNDS Fixed Assets Gross Block 3,952,262 3,275,204 Less: Depreciation/Amortisation 1,620,519 1,437,914 Net Block 3 2,331,743 1,837,290 Capital work in progress (including capital advances) 67,029 267,215 2,398,772 2,104,505 2,018,788 1,124,458 Loan to Blue Dart Aviation Limited [Refer Note 14 - Schedule 16] 4 747,302 968,602 Investments Current Assets, Loans and Advances Inventories 5 26,233 21,746 Sundry Debtors 6 1,889,866 1,532,855 Cash and Bank Balances 7 402,673 353,720 Loans and Advances 8 955,721 859,449 3,274,493 2,767,770 Less: Current Liabilities and Provisions Liabilities 9 1,474,406 1,217,729 Provisions 10 145,776 115,793 1,620,182 1,333,522 Net Current Assets 1,654,311 1,434,248 TOTAL 6,819,173 5,631,813 Notes to Accounts 16
For Price Waterhouse Sharad Upasani Anil Khanna Malcolm Monteiro Chairman Managing Director Director Firm Registration Number: 301112E Chartered Accountants Neeraj Gupta Jerry Hsu Clyde Cooper Suresh G. Sheth Partner Director Director Director Membership No. F055158 Yogesh Dhingra Tushar Gunderia Place: Mumbai Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Dated: January 31, 2012 Chief Operating Officer
100
BLUE DART EXPRESS LIMITEd (CONSOLIDATED) | FINANCIALS | AnnUAL REPoRT 2011
Blue Dart Express limited (Consolidated) Profit and Loss Account for the year ended December 31, 2011
Schedule Year ended Year ended No. December December 31, 2011 31, 2010 in ` (000) in ` (000) INCOME Service Charges [Refer Note 1(h) (i)- Schedule 16] 14,913,431 11,489,308 Commission [Refer Note 1(h) (ii)- Schedule 16] 9,261 9,645 Other Income 11 248,440 54,085 15,171,132 11,553,038 EXPENDITURE Freight, Handling and Servicing Costs 12 10,080,972 7,487,584 Employee Costs 13 1,857,383 1,501,265 Other Costs 14 1,216,921 962,848 13,155,276 9,951,697 Profit Before Interest, Depreciation and Taxation 2,015,856 1,601,341 Interest Expense 15 9 140 Depreciation/Amortisation 3 217,771 193,997 1,798,076 1,407,204 Profit Before Taxation Provision for Taxation [Refer Notes 1(k), 6 and 12 -Schedule 16] Current Tax 569,686 466,029 Deferred Tax 590 (4,089) Taxation in respect of earlier years - (1,300) 570,276 460,640 Profit After Taxation, before Share of Associates Profit 1,227,800 946,564 Share of Associates Profit 14,123 452 1,241,923 947,016 Net Profit Balance brought forward from previous year 4,571,079 3,651,732 Available for Appropriation 5,813,002 4,598,748 Proposed Dividend 47,456 23,728 Tax on Proposed Dividend 7,697 3,941 Transfer to General Reserve 91,681 Balance carried forward to the Balance Sheet 5,666,168 4,571,079 Earnings Per Share [Refer Note 5 -Schedule 16] Basic and diluted Earnings Per Share (in `) 52.34 39.91 Nominal value per equity share (in `) 10.00 10.00 Notes to Accounts 16
Schedules 11 to 16 referred to above form an integral part of the Profit and Loss Account. This is the Profit and Loss Account referred to in our report of even date.
For Price Waterhouse Sharad Upasani Anil Khanna Malcolm Monteiro Chairman Managing Director Director Firm Registration Number: 301112E Chartered Accountants Neeraj Gupta Jerry Hsu Clyde Cooper Suresh G. Sheth Partner Director Director Director Membership No. F055158 Yogesh Dhingra Tushar Gunderia Place: Mumbai Place: Mumbai Finance Director & Company Secretary Dated: January 31, 2012 Dated: January 31, 2012 Chief Operating Officer
101
Blue Dart Express limited (Consolidated) CASH FLOW STATEMENT FOR THE YEAR ENDED december 31, 2011
A. Cash flows from Operating activities: Profit before Taxation Depreciation/Amortisation Interest income Dividend from mutual funds Loss/(Gain) on sale/scraping of fixed assets (Net) Bad debts Unrealised (Gain)/ loss on account of Foreign exchange (Net) Liabilities no longer required written back Provision for Leave Encashment Provision for Gratuity Provision for Directors commission/professional fees 1,798,076 217,771 9 (152,716) (46,895) 2,151 8,495 (9,540) (5,955) 7,779 (5,280) 9,253 1,823,148 (4,487) (355,966) (52,084) 257,584 1,668,195 (597,864) 1,070,331 (701,873) 181,047 2,725 136,706 65,235 - 50 - (10,647,744) 10,864,779 (894,330) (993,405) (9) (24,023) (3,941)
Year ended December 31, 2011 in ` (000)
Year ended December 31, 2010 in ` (000) 1,407,204 193,997 140 (8,191) (34,053) 5,706 8,951 206 (1,629) 12,318 3,808 9,253 1,597,710 (1,708) (282,623) (658,070) 201,458 856,767 (480,218) 376,549 (309,271) (71,168) 1,256 6,798 7,592 (100) 50 60 (9,851,450) 9,961,600 (254,633) (140) (23,902) (4,033)
Adjustments for:
Interest expense
Operating profit before working capital changes (Increase) in Inventories (Increase) in Sundry Debtors (Increase) in Loans and Advances Increase in Trade and other payables Taxes paid (net of Tax Deducted at Source)
Adjustments for changes in working capital:
Cash generated from Operations Net cash from Operating activities Purchase of fixed assets Changes in capital work in progress Proceeds from sale of fixed assets Interest received Dividend received from mutual funds Purchase of National Saving Certificates Maturity proceeds of National Saving Certificates Proceeds from divestment of investments Investment in mutual funds Redemption from mutual funds Loan to Blue Dart Aviation Limited
B. Cash flow used in Investing activities:
Net cash used in Investing activities
C. Cash flow used in Financing activities: Interest paid

102
Dividend paid Dividend tax paid
Blue Dart Express limited (Consolidated) CASH FLOW STATEMENT FOR THE YEAR ENDED december 31, 2011
Net cash used in Financing activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year Year ended December 31, 2011 in ` (000) (27,973) 48,953 353,720 402,673 Year ended December 31, 2010 in ` (000) (28,075) 93,841 259,879 353,720
Cash and Cash Equivalents comprise of: Cash on hand Cash, cheques on hand and remittances in transit on current accounts on deposit accounts on margin money accounts on unpaid dividend accounts on current account on deposit account 5,501 135,467 230,964 20,000 406 774 8,181 1,380 402,673 3,973 110,546 228,905 390 1,069 7,457 1,380 353,720 As at December 31,2011 in ` (000) As at December 31,2010 in ` (000)
Balance with Scheduled Banks:
Balance with non-scheduled Bank:
Notes: 1 2 3 4 The above Cash Flow Statement has been prepared under the indirect method set out in Accounting Standard on Cash Flow Statements (AS-3) as notified under sub-section (3C) of Section 211 of the Companies Act, 1956 (the Act) and the relevant provisions of the Act. Figures in brackets indicate cash outgo. Previous years figures have been regrouped and recasted wherever necessary to conform to the current years classification. Cash and Cash Equivalents includes ` 22,182 (000) [(Previous year - ` 4,731 (000)] which are not available for use by the Company. (Refer Schedule 7 in the Financial Statements)
This is the Cash Flow Statement referred to in our report of even date.
103
SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 1 SHARE Capital Authorised 40,000,000 Equity Shares Capital of ` 10 each Issued and Subscribed 23,727,934 equity shares of ` 10 each fully paid up Add: Forfeited Shares 237,280 348 237,628 237,280 348 237,628 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) paid up bonus shares by capitalisation of General Reserve. 19,227,887 (Previous Year 19,227,887) equity shares constituting 81.03% of the equity share capital of the Company are held by DHL Express (Singapore) Pte. Limited, the holding company. The ultimate holding company is Deutsche Post AG, Germany. SCHEDULE 2 ReserVes and Surplus Securities Premium General Reserve Add: Transfer from Profit and Loss Account At the end of the year Total 394,057 247,787 91,681 339,468 5,666,168 394,057 247,787 247,787 4,571,079 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
400,000
400,000
Total Notes:
Of the above, 11,863,967 (Previous Year 11,863,967) shares were allotted as fully paid up bonus shares by capitalisation of Securities Premium and 5,650,000 (Previous Year 5,650,000) equity shares were allotted as fully schedule 3 Fixed Assets [Refer Notes 1(b),1(c),1(d) and 3 - Schedule 16]

Profit and Loss Account
6,399,693 5,212,923
in ` (000)
DEPRECIATION/AMORTISATION
Closing Balance As at December 31, 2011
description OF ASSETS
GROSS BLOCK (At Cost)

Opening Balance As at Additions Deductions / January Adjustments 1, 2011
NET BLOCK
Intangible Assets: Goodwill [Refer note (a) below] Computer Software Tangible Assets: Land - Freehold Buildings Office Equipment Electrical Equipment Computers Furniture and Fittings Vehicles Aircraft Engines Aircraft Aircraft Components and Overhaul D-check cost on Aircraft [Refer note (b) below] Ground Handling Equipment Machinery and Equipment Total Previous Year
Opening Closing Closing Closing Balance Balance Balance Balance As at For the Deductions / As at As at As at January Year Adjustments December December December 1, 2011 31, 2011 31, 2011 31, 2010
44,900 236,616 396,283 197,031 133,233 288,737 504,259 400,821 46,973 123,697 527,245 205,170 114,598 55,641 - 3,275,204 3,024,443
- 304,862 - 6,249 25,611 52,867 129,330 131,634 3,402 - - - - 27,323 33,031 714,309 313,462
- 103 - (199) (242) 4,094 70,798 2,612 1,283 14,955 - - - (1,006) (55,147)
44,900 541,375 396,283 203,479 159,086 337,510 562,791 529,843 49,092 108,742 527,245 205,170 114,598 83,970 88,178
39,569 1,860 109,635 30,635 - 34,869 40,527 102,137 302,664 132,206 27,867 123,697 236,767 168,628 107,620 - 5,232 10,575 22,392 55,726 28,470 3,373 - 35,589 3,404 6,022
- 8 - 4 842 2,722 18,085 1,257 1,233 14,955 - - - (62) (3,878)
41,429 140,262 - 40,097 50,260 121,807 340,305 159,419 30,007 108,742 272,356 172,032 113,642 15,427 14,734
3,471 5,331 401,113 126,981 396,283 163,382 108,826 215,703 222,486 370,424 19,085 - 254,889 33,138 956 68,543 73,444 396,283 162,162 92,706 186,600 201,595 268,615 19,106 290,478 36,542 6,978 43,913 -
11,728 3,637 - 10,856
37,251 3,952,262 1,437,914 217,771 62,701 3,275,204 1,299,656 193,997
35,166 1,620,519 2,331,743 1,837,290 55,739 1,437,914 1,837,290
Notes: a) The balance amount and period over which goodwill will be amortised is as follows:
Concorde Air Logistics Limited -` 3,471 (000) - Two years and three months. b) D-Check on Aircraft represents costs incurred towards heavy maintenance and mandatory checks carried out on Aircraft exclusively operated for the Company. c) Deductions/Adjustments includes reclassification from one category to another category of asset.
104
SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 4 InVestments (Long Term, Unquoted, At Cost) [Refer Note 1(e) - Schedule 16] Trade 11,760,000 (Previous Year 11,760,000) equity shares of `10 each in Blue Dart Aviation Limited - Associate Company Add: Groups share of Profit Net Investments Non - Trade In Government Securities National Savings Certificates (6 Year NSCs - VIII issue) (Refer Note below) Note: National Saving Certificates are given as security to the Custom Authorities. Others (Current) Units in Mutual Funds NIL units (Previous Year 186,514) of UTI Treasury Advantage Fund Institutional Plan - Daily Dividend Reinvestment (74,984 units purchased, 6,946 units cumulated and 268,444 units sold during the Year) 1,085,948 units (Previous Year 1,890,264) of ICICI Prudential Flexible Income Plan Premium Daily Dividend Reinvestment Plan (2,137,419 units purchased, 69,219 units cumulated and 3,010,954 units sold during the Year) 50 100 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) NIL units (Previous Year 16,324,919) of Birla Sunlife Savings Fund Institutional Plan Daily Dividend Reinvestment (5,100,276 units purchased, 306,396 units cumulated 21,731,591 units sold during the Year) NIL units (Previous Year 14,751,481) of HDFC Cash Management Fund Treasury Advantage Plan Wholesale - Daily Dividend Reinvestment (4,535,713 units purchased, 300,827 units cumulated and 19,588,021 units sold during the Year) 1,705,423 units (Previous Year 830,846) of ICICI Prudential Liquid Plan - Super Institutional Daily Dividend Reinvestment Plan (37,148,205 units purchased, 108,304 units cumulated and 36,381,932 units sold during the Year) NIL units (Previous Year NIL) of HDFC Cash Management Fund Savings Plan - Daily Dividend Reinvestment Option (100,832,989 units purchased, 296,016 units cumulated and 101,129,005 units sold during the Year) - 199,867 107,944 units (Previous Year NIL) of UTI Liquid Cash Plan Institutional Daily Income Option Reinvestment (2,417,000 units purchased, 5,206 units cumulated and 2,314,262 units sold during the Year) 1,497,531 units (Previous Year NIL) of Birla Cash Plus Institutional Premium - Daily Dividend Reinvestment (210,228,452 units purchased, 517,771 units cumulated and 209,248,692 units sold during the Year) Total
As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
163,360
183,081 18,680 201,761
183,081 4,557 187,638
147,980
170,581
83,103
110,043
114,822
186,554
150,045 747,302
968,602
105
SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 5 InVentories [Refer Note 1(f) - Schedule 16] Packing and Stationery Consumables Spares Total SCHEDULE 6 Sundry Debtors (Unsecured, considered good) Other debts [Refer Note 8(d)(i) - Schedule 16] Total SCHEDULE 7 Cash and Bank Balances Cash on hand Cheques on hand and remittances in transit Balance with scheduled banks: on current accounts on deposit accounts on margin money accounts on unpaid dividend accounts Balance with non-scheduled bank: (Municipal Co-operative Bank) on current account on deposit account {Maximum amount outstanding during the Year in current account ` 38,181 (000) [Previous Year ` 18,852 (000)] and in deposit account ` 1,380 (000) [Previous Year -` 1,380 (000)]}
106
Notes: 1. The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company. The balances in the deposit accounts are given as security against overdraft facilities from bank. 2. The bank balances in the current account includes ` 19,622 (000) [Previous Year ` 1,892 (000)] held in trust on behalf of others.
18,525 7,708
14,038 7,708
Schedules forming part of the Balance Sheet SCHEDULE 8 Loans and AdVances (Unsecured, considered good) 215,000 215,000 Aircraft Payload Deposit (Trade) with Blue Dart Aviation Limited Advances recoverable in cash or in kind or for value to be received: Prepaid expenses 68,176 341,505 44,656 291,487 Deposits Advance tax [Net of Provision for Taxation ` 1,574,800 (000) [Previous Year `1,485,499 (000)] Other Advances Total SCHEDULE 9 Liabilities Sundry Creditors: a) Micro, Small and Medium Enterprises[Refer Note 11 Schedule 16] b) Others [Refer Note 8(d)(iii) Schedule 16] Unclaimed dividend * Other liabilities Total As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
26,233 21,746
1,889,866
1,532,855
1,889,866 1,532,855
5,501 135,467 230,964 20,000 406 774
3,973 110,546 228,905 390 1,069
122,760 208,280
79,572 228,734
955,721 859,449
8,181 1,380
7,457 1,380
4,236 1,294,525 774 174,871
6,455 961,424 1,069 248,781
1,474,406 1,217,729
Total
402,673 353,720
*There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.
SCHEDULES
Schedules forming part of the Balance Sheet SCHEDULE 10 ProVisions Provision for Gratuity [Refer Note 1(g) and 2 - Schedule 16] Provision for Leave Encashment [Refer Note 1(g) and 2 - Schedule 16] Proposed Dividend Tax payable on Proposed Dividend Total SCHEDULE 11 Other Income Dividend from Mutual Funds (from non-trade investments) Interest on Loan to Blue Dart Aviation Limited {Tax deducted at source ` 12,055 (000) [Previous Year ` 852 (000)]} Interest on Inter-Corporate Deposit to Blue Dart Aviation Limited {Tax deducted at source ` 425 (000) [Previous Year ` 517 (000)]} Interest on deposits with banks and others {Tax deducted at source ` 2,530 (000) [Previous Year - ` 35 (000)]} Liability no longer required, written back 46,895 120,550 34,053 4,258 5,324 85,299 47,456 7,697 10,604 77,520 23,728 3,941 As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) Gain on account of Foreign exchange fluctuation (Net) [Refer Note 1(i) - Schedule 16] Miscellaneous income Total SCHEDULE 12 Freight, Handling and SerVicing Costs Aircraft Charter costs Domestic network operating costs International servicing charges Domestic excess baggage Handling and clearing charges Printing, stationery and consumables Total SCHEDULE 13 Employee Costs [Refer Notes 1(g), 2, 8(C)(ii) Schedule 16] Salaries, Bonus and Leave Encashment [Refer Notes 1(j) and 9 (b) - Schedule 16] 4,251 2,587 Contribution to Provident and other funds Staff welfare expenses 27,915 1,346 Total SCHEDULE 14 Other Costs Rent [Refer Notes 1(j), 9 (a) and 9 (b) - Schedule 16] 5,955 1,629 Electricity charges Office expenses 544,317 99,972 124,371 429,606 87,374 85,731 5,223,930 2,949,589 821,622 566,584 337,215 182,032 3,842,519 2,120,255 684,178 452,666 244,694 143,272 Year ended Year ended December December 31, 2011 31, 2010 In ` (000) in ` (000)
9,540 33,334
10,212
248,440 54,085
145,776 115,793 Year ended Year ended December December 31, 2011 31, 2010 In ` (000) in ` (000)
Schedules forming part of the Profit and Loss Acccount
10,080,972 7,487,584
1,634,645 126,439 96,299
1,338,218 114,471 48,576
1,857,383 1,501,265
107
SCHEDULES
Schedules forming part of the Profit and Loss Acccount Security Expenses Repairs and maintenance - others Communication expenses Legal and Professional charges Rates and taxes Travelling and conveyance Insurance Sales promotion and advertising Lease rentals [Refer Notes 1(j) and 9 (b) - Schedule 16] Bad debts Loss on sale/scrapping of fixed assets (net) Miscellaneous expenses Loss on account of Foreign exchange fluctuation (Net) [Refer Note 1(i) - Schedule 16] Total SCHEDULE 15 Interest Expense On Bank Overdraft Others Total SCHEDULE 16 Notes to Accounts 1. Significant Accounting Policies (a) Basis of preparation of Financial Statements The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 (the Act) and the relevant provisions of the Act. 9 - 140 Year ended Year ended December December 31, 2011 31, 2010 In ` (000) in ` (000) 105,579 86,917 76,659 48,462 37,946 21,290 16,888 24,764 16,322 8,495 2,151 2,788 75,048 67,154 63,339 46,389 30,267 16,647 15,444 14,793 12,507 8,951 5,706 2,699 - 1,193 (b) Fixed Assets and Depreciation/Amortisation Fixed assets are stated at cost less accumulated depreciation/ amortisation.The Company capitalises all costs relating to the acquisition, installation and substantial modifications to fixed assets. D-Check on Aircraft represents costs incurred towards heavy maintenance and mandatory checks carried out on Aircraft excusively operated for the Company. Depreciation on fixed assets is provided under straight line method at the rates specified in Schedule XIV to the Act, except in respect of the following assets where such rates are higher than the prescribed Schedule XIV rates, so as to ensure that such assets are written off over their estimated useful lives: Description of Assets Office Equipment Electrical Equipment Computers Aircraft Engines D-Check on Aircraft Useful Life (in Years) 2 to 16 6 to 16 3 to 6 2 to 7 14 7
Aircraft
1,216,921 962,848
Individual assets costing upto ` 5,000 are depreciated 100% on a pro-rata basis over one year from the date the asset is put to use.
Aircraft Components and Overhaul represent the cost of engines overhaul, components and modifications of airframes owned and contractually liable to be incurred by the Company. Such costs are depreciated/amortised on the basis of hours flown or the life cycle of the overhaul program, as applicable. Computer Software is amortised under straight line method at the rates specified in Schedule XIV to the Act, as prescribed for computers Goodwill represents the excess of the value of the erstwhile partnership business as a whole over its net asset value as at the date of registration and is stated at cost less accumulated amortisation. Goodwill is amortised using the straight-line method over a period of 10 to 20 years, based upon the brand image of `Blue Dart upon acquisition and the consequential impact it has on the future business of the Company.
9 140
108
SCHEDULES
(c) Borrowing Costs Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expense in the year in which they are incurred. The Company assesses at each Balance Sheet Date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. Long Term Investments are stated at cost. Provision is made to recognise a diminution, other than temporary, in the value of investments. Current Investments are valued at lower of cost and market value. Inventories primarily consist of packing and stationery consumables which are valued at cost (arrived at using Firstin First-out basis) and net realisable value which ever is lower. Cost of Spares is calculated at purchase price and expenditure directly attributable to the acquisition of such inventories for bringing it to its present location using the specific identification method. (i) Short Term Employee Benefits: The employees of the Company are entitled to Leave Encashment as per the leave policy of the Company. The liability in respect of Leave Encashment of short term nature is provided on an estimated basis. (ii) Long Term Employee Benefits: Defined Contribution Plans The Company has Defined Contribution plans for post employment benefits namely Provident Fund and Superannuation Fund which are recognised by the income tax authorities and administered through trustees.
employees and has no further obligation beyond making its contribution. The Superannuation Fund constitutes an insured benefit, which is classified as a defined contribution plan as the Company makes contributions to an insurance company and has no further obligation beyond making the payment to the insurance company.
(d) Impairment of Assets
The Company contributes to State plans namely Employees State Insurance Fund and Employees Pension Scheme 1995 and has no further obligation beyond making its contribution. The Companys contributions to the above funds are charged to revenue every year. Defined Benefit Plans The Company has a Defined Benefit plan namely Gratuity for all its employees. Gratuity Fund is recognised by the income tax authorities and is administered through trustees. The Company has taken a group gratuity policy with Life Insurance Corporation of India and is funded. Liability for Defined Benefit Plan is provided on the basis of valuations, as at the Balance Sheet Date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the Projected Unit Credit Method. Other Long-term Employee Benefits The employees of the Company are entitled to other long-term benefits in the form of Leave Encashment and Compensated Absences as per the policy of the Company. Liability for such benefits is provided on the basis of valuations, as at the Balance Sheet Date, carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability is the Projected Unit Credit Method. (iii) Termination benefits are recognised as an expense as and when incurred. (iv) Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the Profit and Loss Account as income or expense. (h) Service Charges (i) Service charges for transportation of shipments are recognised as income when shipments are manifested and represent amounts invoiced, net of service tax and all discounts and allowances. (ii) Commission is accrued when cargo is delivered to the custody of the airline and the master airway bill is issued.
(e) Investments
(f) Inventories
(g) Employee Benefits
Under the Provident Fund Plan, the Company contributes to a Government administered Provident Fund on behalf of its
109
SCHEDULES
(i) Foreign Currency Transactions Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transactions. Foreign currency denominated assets and liabilities are translated into rupees at the exchange rates prevailing at the date of the Balance Sheet. All exchange differences are dealt with in the Profit and Loss Account.
During the year, the Company has recognised the following amounts in the Profit and Loss Account in Schedule 13 under Contribution to Provident and Other Funds: Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 35,120 7,234 27,577 28,567 5,194 20,471
(j) Lease Rentals All lease rentals are accounted for on accrual basis over the term of the lease and charged to the Profit and Loss Account under the straight line method. (k) Taxes on Income Provision for tax for the year is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax is recognised, subject to consideration of prudence, ontiming differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised for unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resource is remote, no provision or disclosure is made.
- Employers Contribution to Provident Fund - Employers Contribution to Superannuation Fund - Employers Contribution to Employees State Insurance - Employers Contribution to Employees Pension Scheme 1995. II Defined Benefit Plans
33,236
28,131
Gratuity: Valuations in respect of Gratuity has been carried out by an independent actuary, as at the Balance Sheet Date, based on the following assumptions: As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 9.25% / 9.25% 8.5% / 8.25% 7.25% / 6.75% 7.25% / 6.75% 7.75% 19 / 18 7.75% 22 / 18
(l) Provision for Contingent Liabilities
Discount Rate (per annum) Rate of increase in Compensation levels Rate of Return on Plan Assets Expected Average remaining working lives of employees (years)
2. Employee Benefits The Company has classified the various employee benefits provided to employees as under: I Defined Contribution Plans a. Provident Fund b. Superannuation Fund c. State Defined Contribution Plans i. Employers Contribution to Employees State Insurance
A) Changes in the Present Value of Obligation Present Value of Obligation at the beginning of the year As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 213,531 19,793 Nil 19,522 Nil 177,432 14,639 Nil 16,571 Nil
Interest Cost Past Service Cost Current Service Cost Curtailment Cost/(Credit)
ii. Employers Contribution to Employees Pension Scheme 1995

110
SCHEDULES
Settlement Cost/(Credit) Benefits Paid Acturial (gain)/loss on obligations Present Value of Obligation as at Year end. Fair Value of Plan Assets at the beginning of the Year
As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) Nil (11,133) (6,508) 235,205 Nil (3,593) 8,482 213,531
E) Expenses recognised in the Profit and Loss Account in Schedule 13 under Contribution to Provident and other funds Current Service Cost Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 19,522 Nil 19,793 (15,726) Nil Nil (9,857) 16,571 Nil 14,639 (13,329) Nil Nil 9,491
Past Service Cost Interest Cost Expected Return on Plan Assets
B) Changes in the Fair value of Plan Assets 202,927 15,727 3,348 19,013 (11,133) 229,882 171,987 13,329 (1,009) 22,142 (3,522) 202,927
Curtailment Cost/(Credit) Settlement Cost/(Credit) Net actuarial (gain)/loss recognised in the Year Total Expenses/(Gain) recognised in the Profit and Loss Account Defined Benefit Obligation Plan Assets Deficit/(Surplus)
Expected Return on Plan Assets Acturial Gains and (Loss) on Plan Assets Contributions Benefits Paid Fair Value of Plan Assets at Year end
13,732 233,514 229,882 (3,632) 14,932 (3,348)
27,372 212,060 202,927 (9,133) 8,374 1,009
F) Experience Adjustments
C) Reconciliation of Present Value of Defined Benefit Obligation and the Fair value of Assets [Included in Provisions (Refer Schedule 10)] Present Value of funded obligation as at the Year end Fair Value of Plan Assets as at the end of the year Funded Status 233,514 229,882 (3,632) (3,632) Nil (3,632) 212,060 202,927 (10,604) (10,604) Nil (10,604)
Experience Adjustment on plan liabilities (gain)/loss Experience Adjustment on plan assets (gain)/loss
Present Value of unfunded Obligation as at the Year end Unrecognised Actuarial (gains)/losses Unfunded Net Asset/(Liability) Recognised in Balance Sheet
G) Percentage of each category of Plan Assets to total Fair Value of Plan Assets as at December 31, 2011 is 100% The Plan Assets are administered by Life Insurance Corporation of India (LIC) as per Investment Pattern stipulated for Pension and Group Schemes Fund by Insurance and Regulatory Development Authority regulations. H) Expected gratuity contribution for the next year is aggregating ` 24,017 (000)[Previous Year ` 19,717 (000)].
D) Amount recognised in the Balance Sheet [Included in Provisions (Refer Schedule 10)] Present Value of Obligation at the end of the year Fair Value of Plan Assets at Year end Liability recognised in the Balance Sheet (235,205) 229,882 (5,323) (213,531) 202,927 (10,604)
111
SCHEDULES
II. Net Asset/(Liability) recognised in Balance Sheet: A) Present Value of Obligation at the close of the year B) Fair Value of Plan Assets at the close of the year C) Asset/(Liability) recognised in the Balance Sheet Change in Defined Benefit Obligation(DBO) during the year ended Actuarial (Gain)/Loss Change in the Fair Value of Plan Assets Actuarial Gain/(Loss) III. Other Long-term Employee Benefits The liabilities for Leave Encashment and Compensated Absences as at Year end were ` 74,603 (000) [Previous Year `69,436 (000)] and `10,696 (000) [Previous Year `8,084 (000)] respectively. Year ended Year ended Year ended Year ended Year ended December December December December December 31, 2011 31, 2010 31, 2009 31, 2008 31, 2007 (in ` 000) (in ` 000) (in ` 000) (in ` 000) (in ` 000) (233,514) 229,882 (3,632) (212,060) 202,927 (9,133) (176,225) 170,636 (5,589) (173,156) 137,070 (36,086) (160,336) 119,475 (40,861)
(6,465) 3,348
8,374 (1,009)
(20,380) 1,850
(4,574) (436)
35,237 1,783
5. Earnings per share Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) 1,241,923 23,727,934 947,016 23,727,934
(a) Profit after taxation (` 000) (b) Weighted average number of shares (Nos.) (c) Basic and Diluted Earnings Per Share (In `) (d) Nominal value of shares outstanding (In `)
3. Capital Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) {Includes proportionate share of an associate of ` 12,788 (000) [ Previous Year - ` 21,128 (000)]} As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
52.34 39.91 10.00 10.00
6. Deferred Tax Balances 170,835 180,054 The components of deferred tax liabilities and assets arising on account of timing differences between taxable income and accounting income are as follows: As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 219,460 219,460 26,378 9,502 1,728 181,852 216,214 216,214 24,392 7,008 3,552 181,262
4. Contingent Liabilities not provided for (a) Corporate Guarantees given on behalf of Blue Dart Aviation Limited (b) Bank Guarantees
860,000 103,557 1,660,000 105,486 (a) Liabilities Depreciation/Amortisation
{Includes proportionate share of an associate of ` 99,747 (000) [ Previous Year -` 80,583 (000)]} Note: Future cash outflows can be determined only when guarantees are invoked by parties to whom given.
Total (b) Assets Provision for Leave Encashment Provision for Bonus Provision for Gratuity
Total Net Deferred Tax Liabilities

112
37,608 34,952
SCHEDULES
(ii) Key Management Personnel Anil Khanna - Managing Director of Blue Dart Express Limited (C) Transactions with related parties during the year: Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000)
7. Segment Information The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns. (A) (i) Enterprises where control exists: Deutsche Post AG, Germany - Ultimate Holding Company DHL Express (Singapore) Pte. Limited, Singapore - Holding Company - Fellow Subsidiary Company
8. Related party disclosures
(i) With Holding/Fellow Subsidiaries/ Associate Company
DHL Express (India) Private Limited, India
DHL Express (Singapore) Pte. Limited Dividend paid DHL Express India Private Limited International Servicing Cost Domestic Service charges income DHL Lemuir Logistics Private Limited, India Domestic service charges income Deposit received/(paid) Reimbursements of expenses Blue Dart Aviation Limited Aircraft charter cost Capital Advances granted Capital Advances settled Capital Advances converted to Loan Inter Corporate loan granted Inter Corporate Deposit granted Inter Corporate Deposit settled Interest income on Loan Interest on Inter-Corporate deposit Reimbursements towards air freight, etc 5,223,930 - - - 894,330 618,830 (618,830) (120,550) (4,251) 24,772 3,842,287 567,563 (8,900) 1,124,458 151,121 (151,121) (4,258) (2,587) 27,168
113
19,228
19,228
DHL Lemuir Logistics - Fellow Subsidiary Private Limited, India Company Blue Dart Aviation Limited, India Anil Khanna Clyde C. Cooper Malcolm Monteiro - Associate Company
821,622 (522,986) 4,430
684,178 (371,258) 4,143
(ii) Key Management Personnel - Managing Director - Director - Director
Reimbursements of expenses
Roger Crook - Director (Resigned on 30th June, 2011) Christopher Ong - Director (Resigned on 27th September, 2011) Jerry Hsu - Director (Appointed on 30th June, 2011) (B) Related party relationships where transactions have taken place during the year: DHL Express (Singapore) Pte. Limited, Singapore - Holding Company
(327,302) 300 392
(293,911) 535 -
(i) Holding/Fellow Subsidiaries/Associate Company
DHL Express (India) Private - Fellow Subsidiary Limited, India Company DHL Lemuir Logistics - Fellow Subsidiary Private Limited, India Company Blue Dart Aviation Limited, India - Associate Company
SCHEDULES
Domestic Service charges income Recoveries towards Agency charges
Year ended Year ended December December 31, 2011 31, 2010 in ` (000) in ` (000) (4,705) 2,950 (6,069) 3,660
(ii) Corporate Guarantee given on behalf of Blue Dart Aviation Limited (as at Year end) (iii) Payable to Key Management Personnel: Anil Khanna 9. Commitments under lease agreements
860,000
1,660,000
(ii) With Key Management Personnel Managerial remuneration Salary Commission Contribution to Provident Fund Contribution to Superannuation Fund Leave Encashment paid Perquisites Directors sitting fees Incurred for: Remuneration - Anil Khanna 19,846 19,846 18,202 18,202 9,993 9,252 781 - 457 1,362 540 22,385 8,426 9,300 643 277 187 1,369 640 20,842
7,253
7,253
(a) The Company has entered into various non-cancellable operating lease agreements for official/residential premises for a period of two to five years and commitments as at December 31, 2011 are as under: Upto One Year Two to Five Years Above Five Years 159,836 249,548 37,532 28,990 36,241 -
Provision for Leave Encashment/Compensated Absences and Gratuity, which are based on actuarial valuations done on an overall company basis, are excluded above. As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000)
(D) Related party balances at the Year end: (i) Receivable/(payable) from/to Fellow subsidiary/Associate DHL Express (India) Private Limited (Net) DHL Lemuir Logistics Private Limited (Net) Blue Dart Aviation Limited (Net) (111,015) 57,957 2,267,542 (113,657) 68,202 1,339,458
(b) Company has entered into various cancellable leasing arrangements for motor cars, office equipments and for official/residential premises. The lease rentals for motor cars of ` 31,269 (000) [Previous year ` 21,636 (000)] has been included under the head Employee Costs - Salaries, Bonus and Leave Encashment under Schedule 13 forming part of the Profit and Loss Account. Lease rentals for office equipments of ` 16,322 (000) [Previous year ` 12,507 (000)] has been included under the head Other Costs - Lease Rentals and lease rentals for official and residential premises of ` 544,221 (000) [ Previous year ` 404,566 (000)] has been included under the head Other Costs - Rent under Schedule 14 forming part of the Profit and Loss Account. 10. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 (AS 21) - Consolidated Financial Statements and Accounting Standard 23 (AS 23) - Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India and notified under sub-section (36) of Section 211 of the Companies Act, 1956 (The Act) and the relevant provisions of the Act. (a) The subsidiaries (which along with Blue Dart Express Limited, the parent, constitute the Group) considered in the Consolidated Financial Statements are:
114
SCHEDULES
Name of the Country of % voting % voting Company Incorporation power power held as at held as at December December 31, 2011 31, 2010 Concorde Air Logistics Limited (with effect from May 11, 2004) (b) Investment in Associate
Interest due and payable towards suppliers under MSMED Act for payments already made Interest accrued and remaining unpaid at the end of the year to suppliers under MSMED Act
India
100%
100%
Blue Dart Aviation Limited (with effect from March 11, 2005) India
49% 49%
Note: The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the Company.
11. The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at December 31, 2011. The disclosure pursuant to the said Act is as under: Principal amount due to suppliers under MSMED Act, 2006 Interest accrued & due to suppliers under MSMED Act on the above amount, unpaid As at As at December December 31, 2011 31, 2010 in ` (000) in ` (000) 4,231 6,455
12. The Provision for taxation for the year has been computed on the basis of the results for the year ended December 31, 2011, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31, 2012 relevant to the assessment year 2012-2013. 13. Information with regard to other matters specified in paragraphs 4C, 4D (a) and 4D(c) of Part II of Schedule VI of the Companies Act, 1956 is either Nil or not applicable to the Company for the year ended December 31, 2011. 14. During the year, the Company has granted an unsecured interest bearing loan of ` 894,330 (000) to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (ACMI) Agreement. As at December 31, 2011 the outstanding loan balance is ` 2,018,788 (000). 15. Previous years figures have been regrouped/reclassified wherever necessary to conform to the current years classification.
Payment made to suppliers (other than interest) beyond the appointed day during the year Interest paid to suppliers under MSMED Act (other than Section 15) Interest paid to suppliers under MSMED Act (Section 15)
- - -
Signature to Schedule 1 to 16 form part of the Financial Statements.
115
Notes:
116
Fact Sheet
Description : South Asias premier express air and integrated package distribution company. : November 1983 : Mumbai, India : ` 148,960 Lacs : Domestic - over 35,902 locations International - More than 220 countries and territories worldwide through DHL Express. : Three Boeing 737-200 and Four Boeing 757-200 freighters : Over 6,272 vehicles Began Operations Headquarters Revenues (Jan - Dec 2011) Destinations Serviced
Air Support Ground Support
Number of shipments handled (in lacs) (Jan-Dec 2011) : Domestic Over 988.5 International Over 8.0 Tonnage handled (Jan-Dec 2011) : Over 423,000 People Force Website : Over 7,792 : www.bluedart.com
Corporate Office: Blue Dart Express Limited, Blue Dart Centre, Sahar Airport Road, Andheri ( East), Mumbai- 400 099. India. Tel: (022) 2839 6444. Fax: (022) 2824 4131. www.bluedart.com

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Twenty-First Annual Report 2011

CONCORDE AIR LOGISTICS LIMITED

BLUE DART EXPRESS LIMITED | CONTENTS | ANNUAL REPORT 2011

BLUE DART EXPRESS LIMITED | vision | ANNUAL REPORT 2011

Our Guiding Principles

Sharad Upasani Chairman

Anil Khanna Managing Director

Malcolm Monteiro Director

Clyde C. Cooper Director

Suresh G. Sheth Director

Jerry Hsu Director

George Berczely Alternate Director to Jerry Hsu

BLUE DART EXPRESS LIMITED | BOARD OF DIRECTORS | ANNUAL REPORT 2011

Yogesh Dhingra Finance Director & Chief Operating Officer

Aneel Gambhir Head - Internal Audit

Arun Nangpal Head - Customer Service

Barttanu Kumar Das Head - Human Resources

Tushar Gunderia Company Secretary & Head - Legal & Compliance

Ketan Kulkarni Head - Marketing, Corp. Comm. & Sustainability

Col.(Retd.) Raymond Luiz Head - Security & Administration

Gopinath Menon Head - South 2 Region

Balfour Manuel Head - West 1 Region

K. Gopa Kumar Head - South 1 Region

T. A. Krishnan Head - North Region

Amod Dasgupta Head - East Region

Samir Shah Head - West 2 Region

BLUE DART EXPRESS LIMITED | EXECUTIVE MANAGEMENT | ANNUAL REPORT 2011

Source: 1 - AT Kearney :Q3 2011 QMS

BLUE DART EXPRESS LIMITED | CHAIRMANS STATEMENT | ANNUAL REPORT 2011

Mumbai March 10, 2012

Warm regards, Sharad Upasani Chairman

BLUE DART EXPRESS LIMITED | CHAIRMANS STATEMENT | ANNUAL REPORT 2011

BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2011

BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2011

Sustainability at Blue Dart

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

GOGREEN Carbon Neutral Service

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Sustainability at Blue Dart

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Global Volunteer Day 2011 (GVD)

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Sustainability at Blue Dart

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Teach For India

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Sustainability at Blue Dart Awards

Corporate Responsibility (CR) Day

Global CSR Awards

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

C R Day and Global CSR Awards

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Sustainability at Blue Dart

Blue Edge: Empowering Lives

Testimonials from Students:

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011

Blue Edge: Empowering Lives

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2011