CONTAINER CORPORATION OF INDIA LIMITED
ANNUAL REPORT 2008-2009
Ladies and Gentlemen,
On the occasion of the 21st Annual General Meeting of your Company, I
welcome all the Share Holders and their representatives. I have the
pleasure to share with you the performance highlights of your Company for
the year 2008-09 and dwell upon briefly the current business scenario and
the future prospects.
The audited annual accounts for the year ending on 31st March 2009,
Directors Report and Auditors Report etc., have already been presented to
you. With your permission, I take them as read.
The impact of Global Recession was also felt on the EXIM and Domestic
Business of the Company. Despite the decline in physical volumes during the
second half of the year under review, your Company was able to record a
positive growth, both in terms of Financial Turnover as well as Net
The achievements of your Company during the year 2008-09 included:
* Income from operations increased from Rs.3,347.34 Crores to Rs.3,417.16
* Net profit increased from Rs.752.21 Crores to Rs.791.20 Crores.
* Net worth increased from Rs.3,183.92 Crores to Rs. 3,762.21 Crores.
* EPS, as per the enhanced equity after issue of bonus shares, has
increased from Rs.57.87 to Rs.60.87 per share.
* 1,395 high-speed wagons were inducted into the existing fleet. The fleet
of High Speed Wagons procured by CONCOR stood at 8,117 wagons as on 31-03-
* The Company obtained ISO-9000 Certification for sixteen of its units
including the Regional Offices. As on 31-03-09, as many as 51 units out of
68 units of the Company have been ISO certified and are still maintaining
and excelling the standards.
* The Company was also conferred with the prestigious `Dun & Bradstreet-
ROLTA Corporate Award-2008` for being the Top Indian Company in the
Transport & Logistics Sector. This prestigious award was notched by your
Company for the second year in succession.
Keeping in view the financial performance and also the future prospects of
growth of business, your directors have recommended for the payment of a
Final Dividend @80% of the enhanced paid up share capital (after issue of
Bonus Shares) in addition to the interim dividend paid @60% of the enhanced
equity. The total amount of Dividend for the year 2008-09, as recommended
by your Directors amounts to Rs.181.98 Crores as against Rs.168.98 Crores
paid during 2007-08.
On account of the sustained and committed efforts of the Management and
Staff of your Company, the performance and achievements during the year
under review, the Composite Score [on the Performance Parameters vis-a-vis
Targets set in the Memorandum of Understanding (MOU) signed with
Government] will match the requirements for an `Excellent` rating. Your
company is an `Excellent` company, beyond any doubts, and there is ever
desire to continue with this excellence.
Your Company follows the highest standard of Corporate Governance with the
objectives of Protecting the Rights of Shareholders, Enhancing Transparency
and Disclosures, Facilitating effective functioning of the Board and
providing an Effective framework of Checks (both internal as well as
external) to ensure compliance with the Clause-49 of the Listing Agreement.
Your Company is fully compliant as far as regulatory and statutory
framework is concerned. The Audit Committee consisting of three Independent
Directors periodically reviews the performance as well as accounting and
reporting of financial results and reviews the efficacy and effectiveness
of Internal and External Control Systems. Through these initiatives, the
Committee attempts to ensure that decision making process is objective, and
that there are adequate internal controls to ensure efficient realization
of revenue, and due propriety of expenditure.
The Customer Satisfaction Index (as determined by an Independent Survey
carried out by an outside expert agency) for the year 2008 stood at an all
time high of 87.5% as against 81% achieved during the year 2007. Our
customers` satisfaction is our priciest and cardinal accomplishment.
A detailed study on Competitive Benchmarking was taken by engaging an
expert outside agency. The results of the study are very encouraging and
satisfying as your company has been rated as the Top Service Provider in
both EXIM as well as Domestic Business Segments. The inputs available from
this study will help your Company to improve its quality of services
further so as to retain its premier position in a highly competitive
CURRENT BUSINESS SCENARIO:
The business domain of your Company has witnessed the adverse impact of
Global meltdown and recessionary trends resulting into decline in Volumes.
The EXIM traffic handled by Major Ports in India saw a sharp decline in
contrast to the double digit growth rates prevailing earlier. The growing
competition from other private Container Train Operators, 13 of whom have
been operating their Container Train Services, is also a reality. Despite
the worldwide economic slowdown and competition posed by other operators,
your Company was able to retain the business of existing Customers in its
fold by offering suitable loyalty benefits to its premium Customers.
While your Company has been successful in retaining its Brand Value and
Lead Position in a Competitive Market, it will continue with its efforts to
match and strive to surpass the services offered by its competitors in
terms of quality of service and pricing so as to provide Value For Money to
its valued Customers.
FUTURE PROSPECTS AND STRATEGIES:
Your Company has the advantage of having created a vast asset base and a
network of resources, which gives it the competitive edge. The efforts put
in towards a focused Cost Management Strategy have paid dividends and your
Company will strive to remain the least cost service provider. This will
help in achieving the objectives of growth and profitability even in a
scenario of shrinking demand. As the Indian Economy has been showing a
healthy rate of growth, the testing times which your Company has gone
through will last only in the short term and it is our hope that the normal
growth trajectory will soon be restored. Having withstood the challenges of
competition in difficult times, I am confident that your Company will be
able to meet the objectives of growth and profitability in a competitive
environment and will continue to provide enhanced Shareholder value.
I would like to express my sincere thanks and deep gratitude to our
esteemed shareholders, my colleagues on the Board of Directors and to the
Chairman, Members and Officers of the Railway Board, past and present for
their valuable support, advice and guidance.
Your Company considers its Human Resource as the key factory for the
success and growth of the organization. I would, therefore, like to
acknowledge the contribution made by all the members of the CONCOR Parivar
who have contributed immensely towards the growth and profitability of your
Company through their committed effort. I also acknowledge the support
extended to CONCOR by various other Ministries, our associates and Joint
Venture Partners. I would once again like to place on record our deep
gratitude to all our shareholders and customers for their continued faith
and confidence in us. You have reposed trust in us and together we will
ensure that we live up to your expectations, trust & achievements mutually
reinforced by each other.
Place : New Delhi
Dated : 19.09.2009
Source: Hindu Business Line
Dated : 21/09/2009