Contents

BLUE DART EXPRESS LIMITED CONCORDE AIR LOGISTICS LIMITED

Our Vision 02 Board of Directors 88
Guiding Principles 03 Directors’ Report 89
Board of Directors & Key Managerial Personnel 04 Auditors’ Report 91
Executive Management 05 Compliance Certificate 95
Chairman’s Statement 06 Balance Sheet 98
Financial Summary 09 Profit and Loss Account 99
Sustainability at Blue Dart 12 Cash Flow Statement 100
Awards & Accolades 24 Schedules 101
Directors’ Report 26
Corporate Governance Report 36 CONSOLIDATED ACCOUNTS
Auditors’ Certificate on Auditors’ Report 111
Corporate Governance Report 51 Balance Sheet 112
Management Discussion and Analysis 52 Profit and Loss Account 113
CEO and CFO Certification and Declaration Cash Flow Statement 114
regarding Blue Dart Code of Conduct 59
Schedules 116
Auditors’ Report 60
Balance Sheet 64
Profit and Loss Account 65
Cash Flow Statement 66
Schedules 68
Statement pursuant to Section 212(1)(e)
of the Companies Act, 1956
relating to Subsidiary Company 87

BLUE DART EXPRESS LIMITED | CONTENTS | ANNUAL REPORT 2013-2014 1

 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.

2 BLUE DART EXPRESS LIMITED | VISION | ANNUAL REPORT 2013-2014

Our Guiding Principles
We will:
 Treat each other fairly and with respect and dignity.  Provide a workplace where each and every
employee is nurtured and who, in turn, will nurture
 Encourage freedom in communication of thoughts
the organisation, thereby creating wealth for
and ideas in all our interactions.
stakeholders.
 Value integrity and be uncompromising in upholding
 Drive the ‘First Time Right’ concept to achieve
it at all times.
100% Quality and Customer Satisfaction.
 Give due importance to the health, safety and well-
 Encourage passion and enthusiasm for Work,
being of our people.
Service Quality and Customer Care.
 Ensure that our ‘People First’ philosophy serves as a
 Project a positive, caring and professional image
driving force behind the success of our organisation.
of ourselves and our service at all times.
 Encourage and inculcate in all a winning attitude.
 Avoid waste by being conscious of the impact of all
 Encourage learning, self-development and building our actions on the environment.
effective leadership.
 Continue to be a law-abiding, apolitical and secular
 Expect our people to be accountable for all their company.
actions related to the company.

Corporate Information

Registered Office: Principal Bankers: Statutory Auditors: Solicitors:

Blue Dart Centre, Sahar Airport Road, Canara Bank Price Waterhouse Mulla & Mulla & Craigie Blunt & Caroe
Andheri (E), Mumbai - 400 099. Citibank N.A. DSK Legal
Tel: +91 22 2839 6444 HDFC Bank Ltd.
Fax: +91 22 2824 4131, 2831 1184 ICICI Bank Ltd. Internal Auditors: Registrar & Transfer Agent:
CIN: L61074MH1991PLC061074 IDBI Bank Ltd. KPMG Link Intime India Pvt. Ltd.
www.bluedart.com Standard Chartered Bank (co-sourced with Company’s Internal Audit Team)
[email protected] Yes Bank Ltd.

BLUE DART EXPRESS LIMITED | GUIDING PRINCIPLES AND CORPORATE INFORMATION | ANNUAL REPORT 2013-2014 3
 Board of Directors
Board of Directors

Sharad Upasani
Chairman

Anil Khanna Malcolm Monteiro

Managing Director Director

Clyde Cooper Suresh Sheth

Director Director

Key Managerial Personnel

Yogesh Dhingra Tushar Gunderia

Chief Financial Officer & Company Secretary &
Chief Operating Officer
Head - Legal & Compliance

4 BLUE DART EXPRESS LIMITED | BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL | ANNUAL REPORT 2013-2014
 Executive
Executive Management
Management

Aneel Gambhir Arun Nangpal Barttanu Kumar Das V. N. Iyer

Head - Internal Audit Head - Customer Service Head - Human Resources Head - Corporate Accounting

Ketan Kulkarni M. D. Basappa Michael Pereira Vikash Mohan

Head - Marketing, Corporate Corporate Controller Head - Air Operations Head - Ground Operations
Communications & Sustainability All India

Gopinath Menon Balfour Manuel K. Gopa Kumar

Head - South 2 Region Head - West 1 Region Head - South 1 Region

Sukhwinder Singh Amod Dasgupta Samir Shah

Head - North Region Head - East Region Head - West 2 Region

BLUE DART EXPRESS LIMITED | EXECUTIVE MANAGEMENT | ANNUAL REPORT 2013-2014 5

 Chairman’s Statement
In 2013-14, we clocked satisfactory organic revenue growth amidst the
challenging business environment. We are well aware that financial
year 2014-15 will pose another challenge on account of the continued
weak consumer demand, higher interest rates, sticky headline inflation
and increased competitive spending. However, we have carved out a
growth strategy for ourselves which makes us confident of delivering
even in an adverse economic scenario.
There is a sound basis too for this belief. As per Management –
internal estimates based on the ATK TMS 2010, your Company is a
dominant leader in the domestic air express industry and commanded
a 52% market share in the organised ‘air’ express market in 2013. In
the ‘ground’ segment, the company garnered a market share of 14.5%
Dear Stakeholders, in 2013. In both the segments viz; air express and ground express, our
As the year progressed, though there was an improvement in the market share is growing every year.
overall sentiment, the business environment continued to remain Building Blocks
difficult in terms of inflationary pressures, elevated interest rates, lower
Blue Dart offers secure and reliable delivery of consignments to over
than expected growth, fiscal imbalances, extreme foreign currency
34,116 locations in India and to over 220 countries and territories
volatility etc. and operating in such a testing environment proved
worldwide through its group company – DHL Express.
challenging.
Blue Dart’s infrastructure comprises a mixed fleet of Boeing 737 and
On the global front, the much anticipated revival in the major economies
Boeing 757 freighters offering a revenue payload of over 385 tonnes
such as the US and Eurozone was slower than expected during 2013.
per night, a flotilla of over 8,685 vehicles, 439 facilities and over 8,860
Recent events in the Middle East are also creating a situation wherein
committed and trained Blue Darters delivering excellence.
the supply of crude oil may be interrupted affecting prices. However,
over the next couple of years, economic activity is expected to pick up In the fiscal year 2013-14, Blue Dart carried over 1,263.96 lacs
at a steady pace in the developed economies. At the end of every dark domestic shipments and over 9.11 lacs international shipments
tunnel, there is light. We believe that is the case with the economy too. weighing over 513,474 tonnes.
Notwithstanding the slowdown that the economy has witnessed since The banking, financial services and insurance, e-tailing, computers
the turn of this decade, it is our belief that the worst will soon be behind and peripherals, consumer durables, automotive sectors, electrical
us and an economic revival will commence, albeit slowly and steadily, appliances, health services, high end consumer electronics and
in the current fiscal year. The years thereafter could witness gradual jewellery segments continue to drive demand in the Express segment.
acceleration in economic activity. Blue Dart continued its focus on maximizing customer satisfaction and
There is cautious optimism that the macro-environment will improve optimizing its operations.
gradually. However, the transitionary phase could be marked by The delay in implementation of Goods and Service Tax (GST),
volatility which will pose inevitable challenges to our business, which poor development of infrastructure across the country, multiple
however, we are well equipped to overcome. The key to successfully taxation system and a host of other issues continue to challenge the
manage the economic transitionary phase towards a revival lies with logistics industry. We have also grappled with crude oil and currency
the ability of governments worldwide and the newly formed Indian fluctuations.
government to initiate strong action and implement positive policies.
The rupee depreciated sharply against the US Dollar by over 25%
Sustaining and Growing our Performance in Financial Year 2013-14. This, resultantly had an impact on our
Your Company posted ` 12,440 lacs as profit after tax for the year business operations. However, with the experience and expertise of
ended March 31, 2014 as compared to ` 18,866 lacs profit after tax our highly skilled and able management team, we were able to contain
for the fifteen month period ended March 31, 2013. Income from the losses arising from currency fluctuation or fuel price fluctuation.
operations for the year ended March 31, 2014 was ` 193,415 lacs as This would not have been possible but for the introduction of customer
compared to ` 216,651 lacs for the fifteen months ended March 31, friendly mechanisms such as Currency Adjustment Factor (CAF)
2013. and Fuel Surcharge Mechanism (FSM) along with Diesel Surcharge
Mechanism (DSM) which have been adopted by us over the years.
The Board of Directors of your Company has recommended a final
dividend of ` 15/- per share for the year ended March 31, 2014. Overall, on account of long standing experience in the industry, we are
Together with the interim dividend of ` 35/- per share declared on better equipped to deal with macro and micro economic issues and
February 5, 2014, the total dividend for the year ended March 31, 2014 emerge stronger as the economic cycle begins to turn.
works out to ` 50/- per share as compared to a dividend of ` 71/- per
equity share for the fifteen month period ended March 31, 2013.

6 BLUE DART EXPRESS LIMITED | CHAIRMAN’S STATEMENT | ANNUAL REPORT 2013-2014

Expanding our Geographies drive growth for the Company along with Cargo Solutions like Airport
to Airport, Interline and Charters besides offering Festive Solutions.
Growth in the Express industry is expected to be driven by the growth
of consumer industries coupled with increased penetration, extension Industry Specific solutions like Temperature Controlled Logistics
to other industry segments, increase in network reach and introduction (TCL), Dart Surfaceline Plus (DSP), Point to Point (P2P) and a host of
of new solutions. value added services like Demand Draft on Delivery (DOD), Freight on
Delivery (FOD), Freight on Value (FOV), and Cash on Delivery (COD)
The current logistics spend in India is relatively higher as compared to
also witnessed good traction during the period.
a notably lesser percentage in more developed countries such as US
and Germany, which makes the opportunities even more attractive. Recently, we introduced a securitised service – ‘Critical Express’ to
On account of Blue Dart’s undisputed position as the market leader, it cater to the huge domestic demand for mission – critical movement
is perfectly positioned to skim the opportunities as they keep arising. of items like passports, tenders and other securitised / valuable items.
During the year, Blue Dart also successfully launched the International
Blue Dart targets having direct presence in locations where there
Time Definite offering of DHL Express (DHLE) to its customers.
are likely opportunities for economic growth. This also underlines the
significance of our focus on expansion to Tier II & III locations where E-Tailing and the Technology Thrust
the next level of growth is anticipated. These locations are turning out
E-tailing growth continues to outpace traditional lines of business, both
to be important nodes of production, consumption and distribution,
in India and overseas. We have witnessed good traction in our e-tailing
thereby creating incremental demand for the express industry including
vertical as we partner with our customers to enhance their delivery
your Company.
model, which is a crucial function in such businesses.
During the fiscal year 2013-14, the Company continued its focus
It is a matter of pride for all of us that Blue Dart has been a partner of
on strengthening its reach into Tier II and Tier III cities to provide
choice for e-tailing companies as they perceive that the partnership
customers best-in-class, end-to-end express solutions.
enhances their brand equity. The digital driven shopping boom should
First Preference, Always contribute significantly to our e-tailing vertical, as this contributes 11%
to our consolidated revenues for fiscal year 2013-14.
We remain the ‘numero uno’ pan India player providing end to end
connectivity, as against some of our peers whose presence is restricted The ongoing boom in the e-tailing industry whose size is expected to
to certain geographies only. grow at about 52% CAGR till 2020* augurs well for our industry.
With intensified competition amongst players in the Air Express This growth is likely to be triggered by two significant developments.
Segment, we have been able to continuously drive our edge by virtue One, mobile devices such as smartphones and tablets make it easier
of the dedicated cargo aviation infrastructure. This is a remarkable for shoppers to access the web on the go. Secondly, traditional retailers
achievement for our Company as it puts us way ahead of competition too are investing heavily in bolstering their web divisions, fearing loss
within the Organised Express Segment of the Logistics industry. of sales to e-enabled competitors.
Our dedicated aviation infrastructure gives an edge over our peers Additionally, our technological superiority results in creating significant
as others in the air express segment rely on space available with monetary and non-monetary value for its customer base with features
passenger airlines, where passenger luggage is accorded priority over like ease of shipment track and trace controls and timely deliveries.
cargo. This enables us to improve our service quality on account of Incorporation of features in our operations such as Weight Dimension
discipline in time schedules and secured cargo space. Labelling, Ground Technical Support through GPS, Smart Truck
System and Hand Held Devices go a long way in increasing the
Opportunities and Solutions
speed of our operations, automates processes, enhances security and
Even as India is increasingly integrating with the world economy, Tier improves efficiency across our service offerings.
II and III cities in India are evolving as huge consumer markets, driving
As a technological knowledge leader for the Industry in the country, Blue
trade and commerce.
Dart partnered with Yes Bank to offer Mobile Point of Sales (MPOS)
Our business in these cities continues to grow, notwithstanding the solutions. Being the first of its kind payment mechanism introduced
overall economic slowdown. With its dense domestic air and road in the country, it provides the first mover advantage to Blue Dart for
networks, Blue Dart can seamlessly operate across India as one offering this new age payment mechanism to its customers. The MPOS
market, giving it an competitive edge. mechanism uses mobile device based GPRS connectivity to facilitate
Our solutions are industry-specific and include time-critical deliveries, payments (debit/credit card). This unique device when connected to
dedicated air and road freight services and value-added activities. any mobile device can be used as a Point of Sale (POS) terminal to
facilitate card payments. Adoption of this facility enables the customers
Time Definite Solutions (Domestic Priority 1030, Domestic Priority (e-tailing companies) to reduce risk of fraud, counterfeit, mutilation and
1200, Dart Apex 1200), Day Definite Solutions (Domestic Priority, theft. This in turn, reduces operational costs and enhances efficiency.
Dart Apex, Dart Surfaceline), Packaging Solutions including Express
Pallet (Air and Ground) and Smart Box (Air and Ground) continue to
* KPMG e-fulfillment study

BLUE DART EXPRESS LIMITED | CHAIRMAN’S STATEMENT | ANNUAL REPORT 2013-2014 7

 Widening the Market Leadership Gap Volunteers also spent time and resources to bring happiness to the
hearts of senior citizens and underprivileged children in many old age
Our leadership positioning as a pan India player providing superior
homes and orphanages.
last mile connectivity has been further bolstered by our expansion
into Tier II and Tier III cities. Our long-term strategy is in place and Efforts to conserve energy are an ongoing aspect of our ‘GoGreen’
we believe this will improve our competitive position and our financial initiative. Under the ‘GoHelp’ initiative the Company joined hands with
performance over the next several years. However, it is important for a Urja Foundation and Dr. Harivanshrai Bachchan Memorial Trust as the
business like ours to stay constantly in touch with our consumers and Official Logistics Partner for providing solar powered lights to around
adapt very quickly to their changing needs. 3,000 homes across India. Blue Dart also provided Free of Cost
support to various NGOs and logistics support to victims of Cyclone
We have devised various methodologies and availed of external
Phailin and Uttarakhand floods.
agencies to develop deeper and more relevant consumer insights
from a 360o viewpoint. More importantly, these insights are used to The ‘GoTeach’ program was another landmark event where Blue Dart
strengthen product development and delivery across the business and DHL share the Teach for India (TFI) vision that one day all children
verticals that we cater to. will attain an excellent education. To fulfil the same, Blue Dart and DHL
have joined hands with TFI to support equal opportunity in education.
The Brand Equity Study, Customer Satisfaction Surveys, First Choice
Program, Net Promoter Approach, and many such initiatives continue Blue Dart believes in supporting initiatives for equal educational
to ensure that we constantly improve on parameters such as timely opportunities for children and youth. Blue Dart in collaboration with
departure of aircrafts, maintaining superior service quality level, Oasis India runs an initiative called ‘Blue Edge: Empowering Lives’
increasing revenue per shipment and kilos per shipment which are in Mumbai and Chennai. Together, the aim is to enrich and empower
the key performance benchmarks in our Industry. The idea at Blue the lives of young adults thereby improving their opportunities for a
Dart is to set Industry benchmarks and hence we follow an extremely better tomorrow. A total of 715 young adults have benefited from this
scientific approach to understanding our customer’s requirements and program. It has helped them to break the shackles of poverty and
their Blue Dart experience, on a monthly basis. unemployment, providing the much needed edge in this competitive
world.
Our association with DHL has gone a long way towards increasing our
presence, optimising our operations and sharing global best practices. Stepping Forward Confidently, Together
Corporate Governance I have absolutely no hesitation in admitting that our employees are
Blue Dart’s strength and backbone. It is their personal commitment
Blue Dart places a premium on and remains committed to good
to meeting the Company’s goals which drives our success. The
Corporate Governance, aligned to the best corporate practices.
Company’s Board and I would like to thank all the employees of
Good Corporate Governance has always been an integral part of the
Blue Dart for ensuring excellent business results notwithstanding a
Company’s business philosophy. Your Company continues to deliver
challenging business environment.
value to stakeholders though its People Philosophy and Corporate
Governance, based on distinctive customer service, business ethics, It thus pleases me to inform you that, the company has further
accountability and profitability. strengthened the First Choice Methodology aimed to position
the brand as the ‘Provider of Choice’, ‘Employer of Choice’ and
With the enforcement of the Companies Act, 2013, as a good corporate
‘Investment of Choice’. As a result of this focussed approach, the
citizen, your company adhered to the provisions of this new Act. As a
Company was ranked 10th amongst ‘Best Companies to Work for in
progressive and proactive compliance of the same, Blue Dart realigned
India 2013’ by Great Places to Work Institute, India in collaboration
its accounting year during the previous fiscal ended March 31, 2013.
with the Economic Times and 1st in the Transport Industry. This would
Corporate Social Responsibility have not been possible but for the employee centric policies of the
Corporate and Social Responsibility (CSR) is another key area for company. During the year, the company introduced 5S and GEMBA,
Blue Dart. It remains committed to excelling and this commitment is Japanese techniques to help maintain a well organised, clean, highly
equally extended to the society which Blue Dart considers an integral effective and qualitative workplace.
stakeholder. Blue Dart & DHL as socially responsible corporate I conclude here, with a special vote of thanks to each one of you,
citizens organized the 3rd Blue Dart World CSR Day and Global CSR stakeholders who have placed your faith in Blue Dart and assure you
Excellence & Leadership Awards in Mumbai on 18th February, 2014 of our very best efforts, always.
to recognize excellence in CSR across the industry. In September,
2013, the Company conducted the Global Volunteer Day 2013 where
employees, partners and customers were encouraged to give back to Warm regards,
society in wide ranging programs encompassing saving lives through
blood donation, making our planet greener through tree plantation
initiatives, investing in future generations by teaching and motivating Mumbai Sharad Upasani
children from marginalized sections of society and cleaning schools. June 21, 2014 Chairman

8 BLUE DART EXPRESS LIMITED | CHAIRMAN’S STATEMENT | ANNUAL REPORT 2013-2014

Financial Summary
Financial Summary of last Eight years

Apr 2013
Particulars December December December December December December March March
Mar 2014
2006 2007 2008 2009 2010 2011 2013* 2014

Income from Operations 66,802 80,872 97,446 90,523 114,741 149,271 216,651 193,415
Other Income 175 311 1,071 760 532 2,115 3,941 4,197

Total Income 66,977 81,183 98,517 91,283 115,273 151,386 220,592 197,612
Total Expenditure 56,831 68,083 84,935 80,150 99,324 131,338 190,021 176,162

Operating Profit 10,146 13,100 13,582 11,133 15,949 20,048 30,571 21,450
Interest (Expense) 158 40 50 55 1 0 1 3
Gross Profit 9,988 13,060 13,532 11,078 15,948 20,048 30,570 21,447
Depreciation 2,201 2,403 1,657 1,776 1,922 2,160 3,448 2,710
Profit Before Tax 7,787 10,657 11,875 9,302 14,026 17,888 27,122 18,737

Taxation 2,764 3,664 4,140 3,232 4,589 5,664 8,256 6,297

Profit After Tax 5,023 6,993 7,735 6,070 9,437 12,224 18,866 12,440
Equity 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376
Reserves 22,646 29,354 36,811 42,605 51,765 63,437 62,593 61,153

Gross Fixed Assets 24,404 25,692 28,562 30,036 32,544 39,325 39,446 42,149

Networth 25,022 31,730 39,187 44,981 54,141 65,813 64,969 63,529

Book Value (`) 105.39 133.72 165.15 189.57 228.17 277.38 273.82 267.75

ROCE (in percentage) 32.92 37.13 33.63 22.24 28.30 29.83 41.48 29.17

Debt Equity (in times) 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00

* Consequent to change of Accounting Year from 31st December to 31st March, the figures as of March 2013 are not comparable with
previous / following year as March 2013 figures are for fifteen months period from January 1, 2012 to March 31, 2013.

BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2013-2014 9

 Financial Summary
Eight years review
Eight years review

220,592

197,612

151,386

115,273
98,517
`

91,283
81,183
66,977

December December December December December December March March

2006 2007 2008 2009 2010 2011 2013* 2014

* Consequent to change of Accounting Year from 31st December to 31st March, the figures as of March 2013 are not comparable with
previous / following year as March 2013 figures are for fifteen months period from January 1, 2012 to March 31, 2013.

18,866

12,440
12,224
`

9,437

7,735
6,993 6,070
5,023

December December December December December December March March

2006 2007 2008 2009 2010 2011 2013* 2014

* Consequent to change of Accounting Year from 31st December to 31st March, the figures as of March 2013 are not comparable with
previous / following year as March 2013 figures are for fifteen months period from January 1, 2012 to March 31, 2013.

10 BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2013-2014

Financial Summary

65,813 64,969
63,529
54,141

44,981
`

39,187
31,730
25,022

December December December December December December March March

2006 2007 2008 2009 2010 2011 2013* 2014

* Consequent to change of Accounting Year from 31st December to 31st March, the figures as of March 2013 are not comparable with
previous / following year as March 2013 figures are for fifteen months period from January 1, 2012 to March 31, 2013.

277.38 273.82
267.75

228.17
189.57
165.15
`

133.72

105.39

December December December December December December March March

2006 2007 2008 2009 2010 2011 2013* 2014

* Consequent to change of Accounting Year from 31st December to 31st March, the figures as of March 2013 are not comparable with
previous / following year as March 2013 figures are for fifteen months period from January 1, 2012 to March 31, 2013.

BLUE DART EXPRESS LIMITED | FINANCIAL SUMMARY | ANNUAL REPORT 2013-2014 11

 Sustainability at Blue Dart
Blue Dart as a company has always understood its responsibility Under the motto ‘Living Responsibility’, Blue Dart (along with DP
towards the environment and society. Sustainability has been an DHL) focuses its corporate responsibility on championing education
integral part of DP DHL’s Strategy 2015 and is adopted by Blue Dart (GoTeach), protecting the environment (GoGreen) and delivering
too. We believe in making a positive contribution to the world by using help (GoHelp). These are supported and complemented by regional
our knowledge and domestic / global presence in ways that benefit community initiatives, which demonstrate the voluntary commitment,
people and the planet. special abilities and enthusiasm of our employees from across Blue
Dart Country.
As a company with a global outlook, we endeavour to maintain
a delicate balance between economic, environmental and social
interests.

GoGreen GoHelp GoTeach

A comprehensive strategy for fulfilling our corporate responsibility

– ‘Living Responsibility’

Striking a balance between

Pure Win-win:
economic benefit and assuming business Combines societal and
responsibility for communities is the
bedrock of successful CR
commitment and a contributing Pure philanthropy
factor to achieving group targets

12 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

Sustainability at Blue Dart

Global Volunteer Day (GVD) Detailed volunteering and donation activities during GVD 2013:

GoGreen
Blue Dart in collaboration with DHL, conducts a massive volunteering
exercise known as “Global Volunteer Day” across the globe every year. All India – 9,114 saplings were planted on the periphery of Sundarbans
Over 8,394 X BU volunteers from India and 1,00,000 globally joined National Park, West Bengal.
hands to make a difference during Global Volunteer Day 2013 (GVD),
held between 5 and 15 September 2013, showcasing exemplary unity Chennai, Hyderabad & Bengaluru - Volunteers across Chennai,
in spirit, vision and purpose. In 2013, GVD saw an added enthusiasm, Hyderabad & Bengaluru planted 221 saplings in five schools, doing
active participation and highest ever response surpassing last year’s their bit towards a green environment.
count.
Indore - Saplings plantation drive at the Public Works Department in
Through Global Volunteer Day 2013, many internal as well as external Old Palasia, Indore.
stakeholders participated in a wide range of activities such as blood
donation, planting saplings, teaching the new generation from Delhi - Planted 100 saplings of Ashoka, Arjuna and Benjamin at
marginalized sections of society, cleaning school premises, spending a Government authorized park in association with Delhi Forest
time with underprivileged children and providing necessary resources Department.
to many old age homes and orphanages. Ahmedabad – Sapling plantation drive at the warehouse. Provided
GoGreen saplings to walk-in customers at retail counters in Ahmedabad and
also conducted one hour lights off initiative at Blue Dart facilities in
3,145 X BU volunteers across India supported planting of a staggering Ahmedabad.
9,114 saplings with Grow-Trees.com (official partner of the United
Nations Environment Program’s Billion Tree Campaign and WWF’s Pune – Volunteers conducted a sapling plantation drive at Seva
Cities for Forests Campaign). These saplings were planted in the Matimand Vidyalaya.
periphery of Sundarbans National Park, West Bengal. Apart from this, Chikalthana - Sapling plantation drive was carried out at Chikalthana,
266 X BU volunteers participated in plantation drives across various Maharashtra.
parts of the country.
GoTeach
GoHelp
Teach For India (TFI)
2,215 X BU volunteers across 18 cities in India donated blood to save
lives. 2,541 X BU volunteers also donated essential utilities, medicines, Mumbai, Pune, Delhi, Chennai & Hyderabad - 162 X BU volunteers
undertook lake cleaning, sponsored meals at various children/old age across five cities conducted interactive and fun filled sessions at 10
homes and created traffic awareness amongst citizens. Teach For India schools (Vinay High School, Gumpha Road Municipal
School, SVN English School, Powai MCGM, Kilbil EMS, Babu
GoTeach Jagjeevan Ram, Babul Uloom School, Nigam Pratibha Vidhyalaya,
227 X BU volunteers across the country invested time in the lives of Vidhyaniketan, Government Model School Aliya and GPS - New
over 2,000 children through activities such as story reading sessions, Bhoiguda) through drawing competitions, story reading sessions,
quiz sessions, drawing competitions and talk on health and hygiene. implementing lesson plans, career counseling, sharing life experiences,

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 13

 Sustainability at Blue Dart
talk on health and hygiene and lastly awareness on GoGreen, thereby South
creating a refreshing buzz with students. Bengaluru, Chennai, Cochin, Hyderabad and Pondicherry:
Volunteers donated material such as groceries, stationery, floor
Non-TFI Schools mats, sports goods, towels, bathing kits and water purifiers to various
orphanages such as Maher Sneha Bhavan, Shade and Gypsy.
Besides this, over 65 X BU volunteers participated in interactive and
teaching sessions at non-TFI schools at various locations. Bengaluru and Coimbatore: Volunteers donated stationery to school
children at Karunai Illam, S. Periyapalayam, Tirupur & Nesakarangal
Gurgaon - Volunteers taught Science, Mathematics & Political Science
Orphanage, Salem. They also donated sewing machines, fans, CFL
to Grade 5, 6, 8 & 11 children at Senior Secondary School Dadri Toyi.
bulbs and CD players.
Ahmedabad – An interactive session was conducted at Prakash
East
School for differently abled children.
Kolkata: Volunteers visited Ashaniketan, an old-age home which
Ahmedabad & Gwalior – Volunteers conducted drawing houses about 12 women senior citizens. They recited poems and folk
competitions, storytelling, quizzes and recreational activities at Jeevan songs for all the ‘Didimas’ (grandmothers).
Tirth Ambawadi Open School (Ahmedabad) and Tribal Girls School
Volunteers visited SOS Children’s Village, a home for underprivileged
(Gwalior).
children which houses about 200 children. This home is different from
Pune - School children from Seva Matimand Vidhyalaya were the regular orphanages. It provides the children with a shelter and a
educated on health and safety measures. mother.

Walunj – Volunteers held a drawing competition for the children of Patna: At Missionaries of Charity Sisters (orphanage), volunteers
loaders, casual staff, drivers, housekeeping staff & security guards at donated clothes and edible items for the less fortunate.
Walunj, Maharashtra.
West
GoHelp Mumbai: Volunteers organized a material donation drive in association
with Goonj. Volunteers donated story books, school uniforms, water
Blood Donation Drive bottles, toys, notebooks, stationery, shoes and umbrellas.
Blood Donation Drives have always formed a vital part of GVD. A session on Ergonomics was conducted for employees in association
2,215 X BU volunteers across India donated blood to save lives. with Young Concepts India Incorporated. Volunteers donated food
Organized in association with several blood banks such as Think grains and stationery items to orphan children and to Good Samaritan
Foundation, Lions Blood Bank, Madras Voluntary Blood Bureau, IMA, Mission, an old age home.
Sankalp India, Central Blood Bank, GTB Hospital, AIIMS, Rotary
Blood, Hemophilia Society and medical institutions like the Red Cross Goa: Volunteers visited El-Shaddai, a home for underprivileged
Society, these drives played a vital role in creating awareness on the children and donated toys, books, clothes and sponsored meals.
importance of regular blood donation amongst the volunteers. These
Pune: First Aid Training, TT injection camp, Blood Group checking
drives also helped in the effort to aid Thalassemia patients.
camp and Pest Control awareness camp was organized. Volunteers
2,541 X BU volunteers also donated and served mid-day meals to also donated three months supply of groceries to Matoshree
underprivileged children in association with Akshaya Patra & Seva Orphanage in Pimple Gurav. They also carried out traffic awareness
Matimand Nivas Vidhyalaya besides mobilizing essential utilities, activity along with the Pune Traffic Control Police. Mid-Day meals were
medicines and volunteering at various children/old age homes and donated to children from Seva Matimand Nivas Vidhyalaya.
lastly creating traffic awareness amongst citizens.
Ahmedabad: Volunteers interacted with orphan children, deprived
North senior citizens, differently abled, poor and blind people, sick & dying
New Delhi: Volunteers visited Manav Vikas, a special school and destitutes, leprosy patients & juveniles from Mother Teresa Children’s
donated clothes, utensils, food items, medicines and also spent time Home, Blind People Association, Mahipat Ram Ashram, Giriraj Seva
with abandoned senior citizens at The Earth Saviours Foundation Kendra, Manav Seva and Lok Bhavna Trust, Manav Smruti, Home for
“Ayurda” Old Age Home. They also visited mentally and physically Leprosy Patients, Sanjivani and Samarpan. Volunteers also funded
challenged children at Cheshire Homes and distributed refreshments cataract operations for 15 patients who could not afford to pay for
to all. surgery. Volunteers also donated sewing machines, towels, food
grains, clothes, personal care products etc. along with donating cash
Volunteers organized a clothes donation drive for Uttarakhand victims. to procure benches, sponsored books, rent for the place and winter
Donation boxes were kept at various centers and were distributed by wear at Jeevan Tirth Ambawadi Open School (Ahmedabad) and Tribal
Goonj (NGO) to the victims thereafter. Girls School (Gwalior) respectively.

14 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 15
 Sustainability at Blue Dart
3rd Blue Dart World CSR Day and Change, Carbon Footprint Accounting, Community Development,
Regulation of Corporate Social and Environmental Behaviour, Social
Global CSR Excellence & Leadership Entrepreneurship and CSR Leadership Award.

Awards The advisory council included Alan Ernest Aicken, Vice President and
Chief Sustainability Officer, Huawei Technologies Co. Ltd.; Anuradha
Blue Dart being a socially responsible corporate organized the 3rd Bhavnani, Regional Director, Shell Foundation; Andrew Bryson,
Blue Dart World CSR Day and Global CSR Excellence & Leadership Regional Director of Sustainability – Asia Pacific, Saatchi & Saatchi;
Awards in India on 18 February 2014 at Mumbai. The awards Dr. Charu Jain, Global Sustainability Manager, DyStar Group; Martin
recognized Corporate Social Responsibility (CSR) champions Neureiter, CEO, CSR Company International, Austria to name a few.
across various industries. The event was graced by the Chief Guest
Dr. Bhaskar Chatterjee, Director General & CEO, Indian Institute of
Corporate Affairs.

Blue Dart World CSR Day

The event was well attended by leading organisations like United

Nations, Sanofi, KPMG, Hewlett Packard, CRY, Indian Institute of
Corporate Affairs and many more comprising of panel discussions
about ‘CSR Good to Great - The Path Ahead’, ‘Assessing and
developing potential for leadership’, ‘Measuring the success of
CSR’, ‘The Vision of CSR’ and ‘New Insights into the Correlation
Between CSR and Brand Strength’. The panel discussions were
focused on the way forward over the CSR regulation in the Companies
Bill and its impact on various organizations undertaking CSR activities.
Some of the speakers and panel members included Dr. Wolfgang
Engshuber, Advisory Council of Principle, UN Principles of Responsible
Investments; Sandeep Juneja, Vice President – Commercial, DHL
Express Pvt. Ltd.; Simone Mechiche, Director – CSR, Sanofi; Paul
Ellingstad, Director of Human Progress Initiatives, HP Corporate
Affairs, Hewlett Packard; Kim Feinberg, CEO & Founder, Tomorrow
Trust; Kewal Handa, Ex-Managing Director, Pfizer; Puja Marwaha,
Chief Executive Officer, CRY; Santhosh Jayaram, Technical Director,
Advisory – Sustainability, KPMG; Gayatri Lobo, Chief Operating
Officer, Teach For India; Joanne Yeoh, Immediate Past President –
Region of Malaysia, National Representative – Elect of Malaysia and
many more.

Blue Dart Global CSR Excellence & Leadership Awards

The 3rd Blue Dart World CSR Day culminated in the Blue Dart
Global CSR Excellence & Leadership Awards which recognized
contributions made to the society and environment by various
organizations in India and overseas. Yogesh Dhingra, Chief Financial
Officer and Chief Operating Officer, Blue Dart Express Limited delivered
the keynote address highlighting the CSR initiatives undertaken by
the company and pledging to continue to work towards betterment of
our communities and environment. The Chief Guest of the evening,
Dr. Bhaskar Chatterjee, shared important information on the 2% spend
on CSR and its rules.

The event acknowledged contribution 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

16 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 17
 Sustainability at Blue Dart
Blue Edge: Empowering Lives This year the Blue Edge: Empowering Lives’ programme saw the
completion of the 12th and 13th batches in Mumbai and 4th and 5th
The lack of opportunity for children to develop in a nourishing batches in Chennai. The 14th and 6th batches in Mumbai and Chennai
environment is rooted in poverty and its cultural manifestations. respectively are currently underway. Many of the graduates have taken
Desperate families need their children to produce immediate income admission in various colleges to complete further studies.
and the subsequent denial of education creates a cycle that traps
Testimonials from Students:
families in poverty. Proper schooling is prohibitively expensive
or inaccessible to much of the developing world due to a lack of “In January, I joined Blue Edge course. I made many friends through this
government support. course. I am now placed in a leading AC Company as a saleswoman.
This course enabled me to converse in English with my customers
Blue Dart in association with Oasis India (NGO) started an initiative
confidently. After getting this job, I got a new life and confidence and
called ‘Blue Edge: Empowering Lives’ in Mumbai, which is aimed
believe that I can come up in life and achieve my goals. I thank Blue
at enriching the lives of young adults from difficult environments,
Dart for this opportunity.”
who have not been able to complete their education. This life-
transforming programme has helped in impacting young adults from - Sasikala, a Blue Edge student.
the underprivileged sections of society. It focuses on helping these
students to complete their education through a vocational programme “This course is very helpful and informative. It helped me to build my
held for a duration of six months, bettering their chances of finding confidence in spoken English and totally changed my life through Life
employment and guiding them to lead a more accomplished life. The skill sessions. I also learned how to use a Computer. I’m very grateful
program provides training in English Speaking, Computer Skills, Life to Blue Dart and my Blue Edge teachers.”
Skills and Customer Orientation.
- Shaheda, a Blue Edge student.
Facts on
Blue Edge: Empowering Lives program:
“Before coming to Blue Edge I lacked knowledge on spoken English,
• Project run in Mumbai and Chennai computer and life skills. I am very thankful to Blue Edge for choosing
me for this course, now I can speak in English, use the computer and
• Over 715 young lives already transformed
also my life has changed through the Life Skills sessions. I am grateful
• A six month course on English Speaking, Computer Skills, Life Skills to all my teachers for changing my life and my thinking towards it.”
and Customer Orientation.
- Bushra, a Blue Edge student.
• Employee Participation

• The project received the ‘Sustainable Education Strategy’ – Blue

Edge: Empowering Lives – Responsible Business Awards 2012

Since 2008, over 715 students have successfully completed this

programme. Students are felicitated at a Graduation Ceremony held at
Blue Dart. Senior management team members of both Blue Dart and
DHL are invited for the occasion, to share their life experiences with
the students and advise them on leading a meaningful life. They are
also encouraged to share their experiences about the course.

Students who have graduated from this programme have been placed
in successful and reputed organizations in Telecom, Retail, and FMCG
sectors etc. This ensures that the underprivileged section of 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.

18 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 19
 Sustainability at Blue Dart
Teach for India (TFI) The students were given a warm welcome and were handed out the
Indian tricolor. They were introduced to employees on each floor by
India has by far the largest population of illiterate adults at 287 million, various volunteers. Floor champions were also appointed to assist and
amounting to 37 per cent of the global total, a United Nations report engage with the students.
said highlighting the huge disparities existing in education levels of the
Blue Dart’s Customer Service team wonderfully put together a special
country’s rich and poor. In India today, 4% of our children never start
program for the children since the event coincided with Republic Day.
school. 58% don’t complete primary schools. And 90% don’t complete
The program was followed by a drawing competition on the theme
school.* Around 30% of children remain illiterate even after attending
of “The India of My Dreams”. Certificates were handed to each
five-six years of school.
participant with the top ten best drawings receiving a certificate and
Within the GoTeach programme, our partnership with Teach For India also a prize.
(TFI) began in 2011 and now is a major initiative. Teach For India is
The prizes were handed out by Chief Guest Yogesh Dhingra, Chief
a nationwide movement of outstanding college graduates and young
Finance Officer & Chief Operating Officer. The panel of judges for the
professionals who teach full time in low income schools for two years.
drawing competition included Arun Nangpal, Senior Vice President –
The Fellowship enables them to become lifelong leaders advocating
Customer Service; Balfour Manuel, Senior Vice President – West 1 and
for educational equity. We have had a highly successful year enabling
Ketan Kulkarni, VP & Head – Marketing, Corporate Communications
Blue Darters to volunteer in several activities that benefited more than
and Sustainability.
300 classrooms in the TFI schools in Mumbai, Pune and Delhi. Blue
Dart and DHL have also partnered with TFI across Mumbai, Pune and
Delhi to help educate children from underprivileged families. Activities Solar home lighting with Urja Foundation
include Stationery Drive, Leadership Development Programme (for Modern energy services are crucial to human well-being and to
TFI Fellows in association with TISS), TFI Volunteering Week and TFI a country’s economic development. But in parts of India, many
End of the Year Volunteering. households still lack electrical power, despite the nation’s intention
Activities with TFI: more than six decades ago to bring electricity to all its citizens. India
is not entirely electrified yet, the grid does not go everywhere, and it is
Teach for India Week - Teach For India Week (27th - 31st January a vast country with many remote places that remain difficult to access
2014) provides an opportunity for Blue Dart leaders to take on the role or supply electricity to.
of teachers and intermingle with students at Teach For India. During
this week, these leaders in Delhi, Mumbai, Hyderabad, Chennai and With the noble intention to serve our country men, who are deprived
Pune stepped inside the Teach For India classrooms to get a glimpse of electricity, Dr. Harivansh Rai Bachchan Memorial Trust launched
of the lives of these students and experience the harsh reality of the the rural electrification initiative which was announced on Amitabh
education crisis. For sixty minutes they interacted directly with the Bachchan’s birthday on October 11, 2013.
students under the guidance of a Teach For India Fellow thus sharing The objective is to provide feasible and sustainable renewable energy
their insights and knowledge. During their respective sessions, these solutions for inclusive growth. Millions of citizens have no access to
leaders experienced the challenges of an under-resourced classroom. electricity and since our country is blessed with abundant sunlight, we
They also saw the optimism, ambition and resourcefulness of the Teach aim to provide electricity to our countrymen through this project.
for India Fellows working relentlessly to overcome these challenges.
The rural initiative commenced by providing solar powered lights to
Teach for India Students visit to Blue Dart office - On the eve of around 3000 homes all across India. The initiative is also supported
Republic Day, 41 students aged between 10 to 12 years from Shivner by the United Nations Information Centre for India and Bhutan (UNIC).
Vidya Mandir supported by Teach For India, Mumbai were given a
Anil Khanna, Managing Director, Blue Dart Express Limited was
once-in-a-lifetime opportunity to visit the Blue Dart headquarters.
felicitated by Amitabh Bachchan at an event held on November 19,
The students were taken on a tour around the organization to interact
2013 for partnering towards a noble cause of electrifying rural India.
with the SMT and employees from various functions. The aim of the
Blue Dart is proud to partner this program.
initiative was to familiarize them with corporate culture and give them
a view of a workplace environment, an opportunity which is rarely
bestowed on them.

*Source: www.teachforindia.org

20 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 21
 Sustainability at Blue Dart
One of the biggest concerns facing today’s world is global warming. Hyderabad and Chennai. NGOs and social enterprises such as World
A warmer earth may lead to changes in rainfall patterns, a rise in sea Wildlife Fund, SEWA Trade Felicitation Centre, Mumbai Goes Green,
level, and a wide range of impact on plants, wildlife and humans. The Shilpin, Ecoart, Isha Foundation and Scopeplus were invited to set up
main cause of global warming is emission of CO2. stalls and sell eco-friendly and hand-made products. Employees from
all the branches showed their complete support in making this initiative
Blue Dart under the Living Responsibility pillar of GoGreen conducted
a success. The momentum was also built through articles in Daily
various activities to encourage its employees to contribute towards the
News (Blue Dart’s internal newsletter) about environmental concerns
noble cause of saving the environment.
and tips to reduce-recycle-reuse.

Power Saver: Lights Off FOC activities:

Blue Dart practices Lights Off for an hour between 1pm – 2pm on the
In November 2013, the Phailin cyclone in Orissa affected thousands of
last Saturday of every month across all its offices in India. Employees
lives, causing damage to belongings, property and crops. Blue Dart in
too are encouraged to switch off the lights at their residence between
association with Balasore Social Service Society provided Free of Cost
8.30pm to 9.30pm on the same day. This initiative is championed by
(FOC) delivery of relief material to the affected areas in Orissa. Blue
Anil Khanna, Managing Director, who sends out a mail encouraging all
Dart also provided a FOC consignment for delivering invites on the
the employees to conserve energy.
occasion of Joy of Giving Week in association with Dignity Foundation.

Earth Hour Donation Drive:

This year too Blue Dart observed Earth Hour and continued its practice
The devastation caused by the cloud burst and floods in Uttarakhand
of switching off lights for one hour across all its offices between 1.00pm
affected a large number of people. Many people lost their lives.
to 2.00 pm. 654 Blue Darters pledged to switch off lights during Earth
Property worth millions was damaged and numerous houses were
Hour at their homes, more than double the count of last year’s 290
washed away in the floods. It was a nightmare for them. Keeping this
and the highest ever number of pledges taken by Blue Darters for
compassion within, Blue Darters joined hands and donated cash to
Earth Hour. The buzz was created amongst all the employees through
the PM’s Relief Fund to lend a hand to the victims. In order to create
mailers sent directly from the office of Anil Khanna, Managing Director
awareness EDMs were rolled out and were also printed in the Daily
encouraging the employees to come forward and take part in the noble
News to generate more contribution. The response was overwhelming
cause and pledge their support on the DP DHL site by following six
with Blue Darters contributing ` 4,54,276. The donation drive was
simple steps.
carried out for 20 days, starting from June 25 till July 15, 2013.

Earth Day Blue Dart along with DHL, conducted a material donation drive in
association with ‘Goonj’ in Delhi, Bengaluru, Kolkata, Hyderabad,
On the occasion of Earth Day, on April 22, 2013, Blue Dart celebrated Chennai and Mumbai. Materials such as utensils, clothes, woolens,
by putting up a stall in alliance with Mumbai Goes Green, an online blankets, tarpaulins etc. were donated.
portal. The stall was inaugurated by Russel de San Lazaro, Vice
President, West 1. Many employees participated by purchasing Blue Dart also undertook Feed-A-Child initiative along with Akshaya
these products. Mumbai Goes Green came into existence with the Patra where employees volunteered by contributing a small part of
vision to educate citizens on following an eco friendly lifestyle and to their salary towards the Mid-Day meal scheme.
motivate citizens to embrace green culture. It is a one stop shop for
all eco friendly products and services that make less use of the earth’s Supporting a Cause:
resources. Electronic Direct Mailers (EDMs) were circulated internally
The city of Mumbai, Pune, Bengaluru and Chennai went pink with
to promote Earth Day and create awareness by giving information
Pinkathon. Many women Blue Darters along with their family, friends
about the degrading environment situation and what are the measures
and not to forget spouses of our male colleagues joined other women
that can be taken in order to overcome these issues.
across these cities to participate in the Pinkathon Women’s 10Km,
5Km & 3Km run. The initiative aimed to raise awareness for women’s
World Environment Day health and breast cancer, educate women about its prevention and
Under the GoGreen - Living Responsibility pillar, Blue Dart celebrated treatment, partnered with the Women’s Cancer Initiative and Tata
World Environment Day (WED) 2013 from May 31st till June 5th Memorial Hospital.
2013. EDMs were sent on a daily basis encouraging Blue Darters
to Carpool, Say No to Printing / Plastic, Save Water / Electricity and
register their GoGreen activities on the DP DHL site. To mark the World
Environment Day on June 5, 2013, Blue Dart conducted stall activities
across 7 cities i.e. Mumbai, Ahmedabad, Delhi, Kolkata, Bengaluru,

22 BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014

BLUE DART EXPRESS LIMITED | SUSTAINABILITY | ANNUAL REPORT 2013-2014 23
 Awards & Accolades
The list of the awards received for the year 2013-14. Human Resources
Brand / Customer Service / Retail / Loyalty / Sustainability • Ranked 10th amongst top 100 ‘Best companies to Work for in
• Supply Chain Risk Management Company of the Year 2013 – India 2013’ – Great Place to Work Institute, India and 1st in the
ICICI Lombard India Risk Manager Award 2013 transport industry
• India Green Company of the Year – Awarded by India Green • Innovation in HR – SAP Awards 2013
Business Award 2013 Individual
• Ethical Brand in Logistics Sector – Awarded by Ethical Brand • CEO with HR Orientation – Anil Khanna – Awarded by Global HR
Awards 2014 Excellence Awards 2014
• IIA Excellence Award 2014 – Awarded by The Institute of Internal • Recognised as the Most Valuable CEO – Anil Khanna - By
Auditors Business World Magazine
• Service Quality Award 2014 – Awarded by National Quality • Voted at No. 4 position amongst India’s Top 50 CEOs – Anil
Excellence Awards 2014 Khanna - By Entrepreneur Magazine
• Master Brand Award – Awarded by 4th Master Brand Awards • Voted amongst India’s Top 100 CEOs – Anil Khanna - By Business
2013 Today Magazine
• Environment Communications Award – Awarded by 53rd Annual
• Super Boss of the Year 2013 – Anil Khanna
Awards of the Association of Business Communicators of India
(ABCI). • Life Time Achievement Award – Anil Khanna – Awarded by 7th
Express, Logistics and Supply Chain Conclave 2013
• Regional Service Provider of the Year – Awarded by Payload Asia
Awards 2013 • CEO of the Year – Anil Khanna – Awarded by Asian Leadership
• Brand Excellence Award in the FMCG (Logistics) Sector - Awards 2013
Awarded by ABP Brand Excellence Award 2013 • Brand Builder of the Year – Anil Khanna – 4th CMO Asia Awards
• Best Service Provider of the Year – Awarded by 7th Express, for Branding & Marketing 2013
Logistics and Supply Chain Conclave 2013 • Thought Leader Award – Anil Khanna – Thought Leaders Award
• Cost Management Excellence Award – Awarded by 10th National 2013
Award for Excellence in Cost Management • Asia’s Best CFO Award – Yogesh Dhingra – 4th CMO Asia Awards
• Award for Brand Excellence in Supply Chain & Logistics Sector – for Branding & Marketing 2013
Awarded by 4th CMO Asia Awards for Branding & Marketing 2013 • Responsible Business Leader – Yogesh Dhingra – Responsible
• Community Development – Awarded by 3rd Asia’s Best Practices Business Awards 2013
Award 2013 • Best CFO of an MNC (Mid-sized companies) – Yogesh Dhingra –
• Carbon Footprint Accounting – Awarded by 3rd Asia’s Best 4th Business Today – Yes Bank CFO Award 2013
Practices Award 2013 • Women Leadership Achievement Award – Arun Nangpal -
• Best Corporate Responsibiltiy Practice – Awarded by 3rd Asia’s Awarded by World Women Leadership Congress Awards 2014
Best Practices Award 2013 • CFONEXT100 Award – Varun Dhawan – Second Annual
• Best Communications Campaign – Awarded by Corporate CFONEXT100 2013
Excellence Awards 2013 • Sustainability Leadership Award – Ketan Kulkarni – Awarded by
• Marketplace Behaviour (Responsible Supply Chain Award) – Global Sustainability Leadership Awards 2014
Awarded by Responsible Business Awards 2013 • 50 Most Talented CMOs Award – Ketan Kulkarni – Awarded by
• Reader’s Digest Most Trusted Brand Platinum Award 2013 Golden Globe Tigers Award 2013
• Best of Class Cold Chain Logistics Supported by Air – Awarded • Outstanding CMO of the Year – Ketan Kulkarni – Awarded by
by a leading pharmaceutical company Asian Leadership Awards 2013
• Best Customer Feedback Strategy of the Year – Indian Retailer
Customer Service Awards 2013
• Best Logistics Partner 2013 – Awarded by a leading e-tailing
company
• Outstanding Contribution 2012 – Awarded by a leading
pharmaceutical and FMCG company

24 BLUE DART EXPRESS LIMITED | AWARDS & ACCOLADES | ANNUAL REPORT 2013-2014
BLUE DART EXPRESS LIMITED | AWARDS & ACCOLADES | ANNUAL REPORT 2013-2014 25
 DIRECTORS’ REPORT

To the Members, The Indian economy, Asia’s third largest, showed a declining growth
since the last two years from the growth it witnessed few years ago.
Your Directors have great pleasure in presenting the Twenty Third This can be attributed to multiple factors viz; high inflation, high interest
Annual Report of your Company for the financial year ended March rates, slowing global economy, delay in implementation of projects,
31, 2014. policy logjam, slowing industrial growth and subdued business
sentiment. As a result of these factors, the Indian economy grew at
FINANCIAL RESULTS 4.7%* during Financial Year 2014, with the fourth quarter growing at
(` in Lacs) 4.6%*, marginally higher than 4.4%* recorded in the same quarter last
year. This marks a second consecutive year of sub-5% growth; the
Particulars For the For 15 worst slowdown in more than a quarter of a century.
year Months
ended period In the recent years, the economic and business environment in
March ended India has become much more challenging. Against the backdrop of
31, 2014 March this economic scenario, your Company continued its efforts towards
31, 2013 maximising customer satisfaction, enhancing value for its stakeholders
and delivered quality, value, speed, efficiency, responsiveness and
Revenues service excellence. Over the years, these efforts have gone a long
way towards the evolution of your Company becoming synonymous
Service Charges 193,415 216,651 with reliability and trustworthiness.
Other Income 4,197 3,941 Your Company posted ` 12,440 lacs profit after tax for the year ended
Less : Operating Expenses 176,162 190,021 March 31, 2014 as compared to ` 18,866 lacs profit after tax for the
fifteen months period ended March 31, 2013. Income from operations
Operating Profit (EBIDTA) 21,450 30,571 for the year ended March 31, 2014 was ` 193,415 lacs as compared
to ` 216,651 lacs for the fifteen months period ended March 31, 2013.
Less : Interest Cost (Net) 3 1
With a new Government in place post the general elections held a
Depreciation/Amortisation 2,710 3,448 couple of months ago, there is an air of cautious optimism that
economic reforms will be put back on track and a business friendly set
Earnings before tax 18,737 27,122
of initiatives will be put in place to revive overall growth of the economy.
Less : Provision for Income tax 6,297 8,256
With a dedicated air and ground network optimised by the cutting-edge
Earnings after tax 12,440 18,866 technology, your Company continues to be South Asia’s number one
air and integrated transportation, distribution and logistics Company. It
Profit and Loss Account also offers a wide range of innovative and simplified solutions across
balance brought forward 53,405 56,136 industry verticals.
Profit available for appropriation 65,845 75,002 Blue Dart is a Company with an impeccable service record driven by
a motivated and passionate team, the testimony for which rests in the
Interim Dividend 8,305 -
numerous awards bestowed on the Company over the years. As a
Proposed Dividend 3,559 16,847 responsible corporate entity, your Company continues to pay close
attention to the environmental and social responsibilities.
Dividend Distribution Tax 2,016 2,863
E-tailing express deliveries are the linchpin of an e-tailer’s success.
Transfer to General Reserves 1,244 1,887 ‘Cash on Delivery’ is the most preferred payment mode for the e-tailing
buyers. In a short period of time, Blue Dart has established itself as
50,721 53,405 the preferred service provider and currently holds the dominant market
REVIEW OF PERFORMANCE share. E-tailing constitutes one of the fastest growing and top industry
verticals for the Company. To provide enhanced customer satisfaction
The Indian economy has gone through different cycles of growth and qualitative service offerings, your Company continues to invest
since independence. The growth rates reflected promise and renewed in the areas which could contribute to a enhanced and wide reach
optimism with opening up of the economy in the early 90’s, but in for customers, better turn-around time for remittance of cash collected
the recent past, economic growth has not been able to sustain its during delivery cycle, vendor pick-ups and registration, reverse
northward trajectory. logistics, intelligent API Integration and periodic reconciliation of ‘Cash
on Delivery’ amounts.
*Source – CMIE – Centre for Monitoring Indian Economy

26 BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 DIRECTORS’ REPORT

Your Company recently introduced securitised service viz; Critical During the year, your Company has further strengthened its “First
Express to cater to the huge domestic needs for safe carriage and Choice Methodology” aimed at positioning as the ‘Provider of Choice’,
movement of key documents viz; passports, tenders and other ‘Employer of Choice’ and ‘Investment of Choice’.‘First Choice’
securitised (or valuable) items. During the year, Blue Dart successfully continues to play a critical role in strengthening our quality initiatives
launched ‘International Time Definite Offering’ of DHL Express (DHLE) and will continue to be a ‘way of life’ for us.
for its customers.
‘First Choice’ is a systematic and sustainable approach to transform
The domestic express offerings include “Time Definite Solutions” the business by aligning it to the customer’s needs on a continuous
(Domestic Priority 1030, Domestic Priority 1200, Dart Apex 1200) basis. `First Choice’ is an initiative which transforms the way your
and “Day Definite Solutions” (Domestic Priority, Dart Apex, Dart Company does business and enables your Company to consistently
Surfaceline). Packaging Solutions include Express Pallet (Air and deliver superior service experience to its customers to become their
Ground), Smart Box (Air and Ground). The Company also offers Cargo ‘first choice’. NPA initiative aims at gauging the customer’s loyalty and
Solutions like “Airport to Airport”, “Interline” and “Charters” besides delivers a ‘Net Promoter Score’ which is an international benchmark
offering Festive Solutions. for customer advocacy. NPA is a two–step customer call process,
which identifies customer issues which need to be addressed.
Blue Dart also offers industry specific solutions viz; Temperature
Controlled Logistics (TCL), Dart Surfaceline Plus (DSP), Point to Implementation of First Choice and Net Promoter Approach Programs
Point (P2P) and a host of value added services viz; Demand Draft on were designed to improve service quality and ability to capture `Voice
Delivery (DOD), Freight on Delivery (FOD), Freight on Value (FOV) of Customers’ in a systematic manner to ensure that, meaningful,
and Cash on Delivery (COD). E-tailing growth continues to outpace corrective and improvisation measures could be undertaken as soon
traditional lines of business and your Company has witnessed good as possible.
scalability in its E-tailing vertical.
DIVIDEND
Your Company’s Information Technology remains one of its key
differentiators. The use of technology to optimise products, minimise The Board of Directors of the Company in its meeting held on
costs and innovative offerings have driven successful efforts of the February 5, 2014 approved the payment of an Interim Dividend of
Company to provide Indian customers high service quality. ` 35/- (Rupees Thirty five only) per equity share of ` 10/- each. After
analyzing the Company’s financial position and keeping in mind the
Your Company continues to focus on innovation and would strive to future growth and expansion and adequate investment made in the
keep delivering beyond the expectations of its stakeholders. infrastructure and facilities over a period of time, the Board of Directors
are pleased to recommend a final dividend of ` 15/- (Rupees Fifteen
As per Management - Internal estimates, based on the ATKearney only) per equity share of ` 10/- each subject to necessary approval
(ATK) Total Market Study (TMS) 2010, your Company, today, is a by the Shareholders of the Company at the ensuing Annual General
dominant leader in the domestic air express industry and commanded Meeting of the Company.
a 52% market share in 2013 in organised air express as compared
to 49% market share in 2012. In the ‘ground’ segment, the Company The total dividend (interim and final) payout including Dividend
garnered a market share of 14.5% in 2013 as compared to 13.3% Distribution Tax will sum up to a total of ` 13,880 lacs, as compared to
in 2012. In both the segments viz; air express and ground express, ` 19,710 lacs in the previous period.
market share is growing every year.
TRANSFER TO RESERVES
Blue Dart continues to focus on reach, expansion, transit time
improvements, small towns (Tier-II and III) activation and strengthening Your Company proposes to transfer ` 1,244 lacs to the General
channels to enhance its market share. Your Company increased its Reserves. An accumulated balance of ` 50,721 lacs is carried forward
reach to over 34,116 locations. to Profit and Loss Account.

Your Company is certified to the ISO 9001 standards since 1996 and SCHEME OF ARRANGEMENT
has successfully re-certified in September 2011 for 3 years to the The Board of Directors of the Company in its meeting held on October
new global ISO 9001-2008 standards for “design, management and 15, 2013 approved the `Scheme of Arrangement’ under the Provisions
operations of the countrywide express transportation and distribution of Sections 391 and other applicable provisions of the Companies
services within an Indian sub-continent and international destinations Act, 1956 and/or Companies Act, 2013 (the “Scheme”) for issuance of
serviced through multinational express companies.” unsecured, redeemable, non-convertible, fully paid up debentures, by
Your Company continues to drive “First Choice” and “Net Promoter way of Bonus, to be allotted out of Surplus in the Statement of Profit
Approach” (NPA) initiatives. and Loss of the Company, to the shareholders as viz; 7 Debentures
under Series I Debentures, 4 Debentures under Series II Debentures
and 3 Debentures under Series III Debentures respectively for every

BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 27

 DIRECTORS’ REPORT

1 (one) equity share of the Company held by the Shareholders on the During the year, Blue Dart Aviation Limited posted excellent technical
Record date to be fixed for this purpose. dispatch reliability (TDR) of 98.58% for Boeing 737 and 99.04% for
its Boeing 757 fleet, with an overall TDR of 98.98% and continued its
After submitting requisite documents with BSE Ltd. (“BSE”) (Designated focus on safety which forms the benchmark for all aviation activities.
Stock Exchange) and National Stock Exchange of India Ltd. (“NSE), Further, Blue Dart Aviation Limited rolled out package level tracking
BSE and NSE vide their letters dated March 21, 2014 issued their ‘No successfully at Chennai, Bengaluru, Mumbai, Delhi, Kolkata and
Objection’ to the proposed scheme. The Company has initiated steps Hyderabad stations.
for sanction of the said scheme as is required under the applicable
laws. Blue Dart Aviation Limited replaced one ‘C’ powered Boeing 757
aircraft with the fuel efficient ‘E4’ powered Boeing 757 aircraft. Further,
OPERATIONS REVIEW Blue Dart Aviation Limited undertook 3 major checks on Boeing 757
and 1 phase check on the Boeing 737, including a Boeing 757 4C
Your Company, Blue Dart, South Asia’s number one express air and
Check. A major pylon modification was carried out on a Boeing 757
integrated transportation, distribution and logistics company, offers
aircraft, first in Blue Dart Aviation Limited and was carried out in a
secure and reliable delivery of consignments to over 34,116 locations
timely manner and cost effectively.
in India, across the length and breadth of the Country. As part of the
DHL Group, Blue Dart accesses the largest and most comprehensive Blue Dart Aviation Limited continued its efforts at reduction of fuel
express and logistics network worldwide, covering over 220 countries consumption with Project ‘Golden Drops’ and Single Engine Taxi
and territories and offers an entire spectrum of distribution services which gave significant cost savings in a difficult year. Further, Blue
including an air express, freight forwarding supply chain solutions and Dart Aviation Limited successfully carried out CAT III landings to
customs clearance. maintain the high qualitative service offerings and to avert disruptive
and expensive flight diversions.
Your Company has an unmatched infrastructure, extensive reach,
a mixed fleet of Boeing 737 and 757 freighters offering a revenue During the year, Blue Dart Aviation Limited set up the Security Training
payload of over 385 tonnes per night, a flotilla of over 8,685 vehicles, Institute (ASTI) at Bengaluru which would support the Company to
439 facilities and over 8,860 committed and trained Blue Darters conduct mandatory security training independently and to substantially
driven by a unified passion of delivering service excellence and value. reduce cost. Further, the Safety Management System is implemented
in compliance with the regulatory requirements. BDAL has constituted
Your Company carried over 1263.96 lacs domestic shipments and
‘safety action groups’ at all stations and at Head Office to ensure safety
over 9.11 lacs international shipments weighing over 513,474 tonnes
across the Organisation.
during the financial year ended March 31, 2014.
Blue Dart Aviation Limited, as part of its “GoGreen initiatives” planted
FACILITIES / INFRASTRUCTURE
saplings across 10 acres of temple land at the Sriperumbudur,
During the year, your Company added 28 new and additional facilities Chennai and organised various social awareness programs as part of
and 5 replacement facilities taking the total number of facilities to the ‘Global Volunteer Day’.
439, with a total area of over 2,193,673 sq.ft. across the country.
FINANCE
Hubs were added at various locations viz; Raipur, Noida Sector 81,
Faridabad, Thrissur, etc. Your Company plans to further strengthen Your Company’s financial position is strong and it continues to enjoy
and consolidate its infrastructure, including air and ground fleet. “zero-debt” status.
AVIATION SYSTEM During the year, your Company efficiently managed its surplus funds
by investing into various high rated debt schemes (liquid category) of
The Company’s ACMI contract with Blue Dart Aviation Limited, its
mutual funds for optimum working capital management. Liquidity in
Associate Company for dedicated air carriage capacity, ensured a
the Balance Sheet requires to be balanced between earning adequate
strong support in sustaining Blue Dart’s leadership position through its
returns and need to cover adequate financial risk. The Company’s
unique aviation network with a mixed fleet of Boeing 757 and Boeing
growth has been entirely financed through cash generation from
737 freighters, the only scheduled domestic cargo airline in the Indian
its Operations. The Company has adequate cash generated from
skies.
its operations to support its working capital and capital expenditure
Your Company has during the year, granted an additional inter- requirements.
corporate loan of ` 1,464 lacs to Blue Dart Aviation Limited which
In a challenging global and domestic market scenario, your Company
was repaid as on March 31, 2014. Further, your Company received a
efficiently managed its working capital which is considered to be the
repayment of ` 3,266 lacs as per agreed Loan amortization schedule.
best in the industry and within the benchmarks laid down by the Global
The residual tenure (weighted average) of the said loan works out to
Parent Group.
4.22 years as on the Balance Sheet date. The loan carries an interest
computed at an average `base’ rate of IDBI Bank and ICICI Bank with
an interest re-set bi-annually.

28 BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 DIRECTORS’ REPORT

The Company’s Earnings Per Share (basic & diluted) for the year The acquisition of majority shares by DHL Express (Singapore) Pte.
ended March 31, 2014 stood at ` 52.43 per share as compared Ltd. in the year 2005 provides the Company and its customers with a
to ` 79.51 per share for the previous fifteen months ended March 31, firm strategic advantage. The combined service offerings of both the
2013. Organisations cover the entire spectrum of distribution within India
and, between India and the rest of the world. Blue Dart is a leading
CREDIT RATING brand in the country with an unmatched domestic network, robust
infrastructure and skilled personnel. DHL is an acknowledged global
Your Company continues to enjoy the highest credit quality rating for
leader with a strong and long-standing presence in India. Together,
its commercial paper programme / short-term debt programme:
both present a powerful backbone to business and trade success for
1. “[ICRA] A1+” (ICRA A one plus) assigned by ICRA Ltd. (an India and its trading partners.
Associate of Moody’s Investors Service) for the Company’s
In our efforts to constantly collaborate and optimise more with the
commercial paper/ short-term debt programme of ` 2,500 lacs
support of our group Companies viz; DHL Express, DHL Supply Chain,
(outstanding – ` Nil). The rating indicates highest credit quality
DHL Global Forwarding, the India Steering Committee made significant
for short term instruments.
progress in the past year to maximise the synergies amongst cross
2. IND “A1+(ind)” (A one plus (ind)) assigned by India Ratings business functional units with focus on improving infrastructure,
and Research Private Ltd. for the Company’s short-term debt service quality and cost efficiencies.
programme of ` 3,000 lacs (outstanding – ` nil), indicating
OUTLOOK FOR THE FUTURE
the strongest capacity of timely payment of its financial
commitments. Emerging markets and developing economies like India are doing
relatively well as compared to advanced economies. This is
ICRA has assigned ICRA AA (stable) (ICRA double A) (long term
notwithstanding the slowdown in the economy over the past few years.
rating) to the Company’s Bank limits (working capital) of ` 3,615 lacs
(including fund based and non- fund based limits). The rating indicates The rapidly growing internet penetration and usage is the key growth
high credit quality rating to long term debt instruments. ICRA also driver of e-commerce in India. The Country has over 250 e- tailing
assigned ICRA A1+ (ICRA A one plus) (short term rating) for the said portals. The Indian e-tailing market is estimated to grow at 52% CAGR
limits. The rating indicates highest credit quality rating assigned by till 20201. E-tailing contributes 50% of non-travel ecommerce in India
ICRA to short term instruments and carries the lowest credit risk. and was estimated at Euro 1.3 billion2 in 2013.
SUBSIDIARY AND ASSOCIATE COMPANY In terms of opportunities, the Company is putting all its efforts to further
The audited Statements of Accounts for the year ended March 31, enhance its reach, explore a ‘same day delivery’ service and review
2014 of Concorde Air Logistics Ltd., the Company’s Wholly-owned ‘cross border deliveries’.
Subsidiary, together with the reports of Directors and Auditors, as Air Express remains the preferred option for reliability, speed and
required pursuant to the provisions of Section 212 of the Companies security given the nature of goods it transports. Ground Express also
Act, 1956, are attached. offers huge opportunities due to an increased affluence expanding
The Consolidated Financial Results represent those of Blue Dart to Tier II and III towns which are emerging as important nodes of
Express Limited and its Wholly-owned Subsidiary viz; Concorde Air production, consumption and distribution.
Logistics Ltd. and of Associate Company viz; Blue Dart Aviation Ltd. The growth of the industry is largely based on the general economic
to the extent of 49% shareholding of Blue Dart Express Ltd. into Blue situation in the country and any upswing in economic activity would
Dart Aviation Ltd. The Company has consolidated its results based lead to an increase in domestic and international trade, creating
on the Accounting Standard on Consolidation of Financial Statements incremental demand for the express industry.
(AS-21) and Accounting Standard on Accounting for Investments in
Associates in Consolidated Financial Statements (AS-23) issued by The current logistics spend in India is relatively higher as compared
the Institute of Chartered Accountants of India. to a notably lesser percentage in more developed countries which
makes opportunities even more attractive. In order to meet and
DHL EXPRESS (SINGAPORE) PTE. LTD., PROMOTER sustain the forecasted growth, the industry is likely to further invest in
SHAREHOLDER its infrastructure and systems.
Your Company is in compliance with the SEBI norms on the minimum Your Company is geared to face the challenges of 2014-2015. Your
public shareholding of 25%. DHL Express (Singapore) Pte. Ltd. came Directors look forward to improved performance over the coming years.
out with an ‘Offer for Sale (OFS)’ to divest its shareholding from 81.03%
to 75% which was successfully concluded in 2012.

1. KPMG e-fulfillment study.

2. IAMAI

BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 29

 DIRECTORS’ REPORT

AWARDS AND RECOGNITIONS COMPANIES ACT, 2013

Our innumerable efforts in the pursuit of excellence were recognised The Ministry of Corporate Affairs has made a major part of the
through the year ended March 2014 and our position as an industry provisions of the Companies Act, 2013 effective April 1, 2014. The
leader was re-iterated by the accolades received from several industry new Companies Act, 2013 aims at enhanced disclosures and reporting
bodies and customers. Your Company won several awards to validate for the Corporate sector with numerous compliance requirements.
its Brand Equity and Leadership, Human Resource Philosophy, The new Act is a positive step towards strengthening the corporate
Operational Efficiency and Corporate Governance and it is heartening governance regime in the country.
to note that numerous industry bodies and customers validate our
stupendous efforts. Your Company is geared to implement and comply with the new
requirements of law. As a beginning towards this, your Company
Efforts made by your Company gained wide recognition. Blue Dart is constituted and re-aligned various Committees of the Board of
benchmarked to international standards and has won several brand Directors in accordance with the Provisions of Companies Act, 2013
leadership awards viz; Master Brand Award by 4th Master brand Awards as under :
2013, Brand Excellence Award in the FMCG (Logistics) Sector by ABP
Brand Excellence Award 2013, Award for Brand Excellence in Supply AUDIT COMMITTEE
Chain and Logistics Sector by 4th CMO Asia Awards for Branding and The Audit Committee comprises three Non-Executive Directors, viz;
Marketing 2013, ranked 10th amongst top 100 ‘Best Companies to Mr.Sharad Upasani, Mr. Malcolm Monteiro and Mr. Suresh Sheth.
Work for in India 2013’ – Great place to Work Institute and 1st in the
transport Industry. The Chairman of the Committee is Mr. Sharad Upasani.
Mr. Anil Khanna, Managing Director, was conferred with the `Most The terms of reference of the Audit Committee are in accordance with
Valuable CEO’ by Business World Magazine, Super Boss of the year, the provisions of Section 177 of the Companies Act, 2013 and Clause
2013, Life Time Achievement Award by 7th Express, Logistics and 49 of the Listing Agreement pertaining to corporate governance norms.
supply Chain Conclave 2013, CEO of the year by Asian Leadership In the meeting of the Board of Directors of the Company held on May
Awards 2013. 9, 2014, the Board of Directors enhanced the terms of reference and
scope and functioning of the Audit Committee to align with the new
Mr. Yogesh Dhingra, CFO & COO, was conferred with the Asia’s Best requirements of the Companies Act, 2013 and Listing Agreement
CFO Award by 4th CMO Asia Awards for Branding and Marketing 2013, norms.
Responsible Business Leader by Responsible Business Awards 2013,
Best CFO of an MNC (Mid – sized companies) by 4th Business Today Mr. Anil Khanna, Managing Director; Mr. Yogesh Dhingra, Chief
and Yes Bank CFO Award 2013. Financial Officer & Chief Operating Officer; the Statutory Auditors and
the Internal Auditor are the permanent invitees to the Audit Committee
Your Company was voted a “Superbrand”, seventh time in a row and Meetings.
for the seventh consecutive year, your Company became a recipient of
the Reader’s Digest Most Trusted Brand Award. CORPORATE SOCIALRESPONSIBILITY (CSR) COMMITTEE
DIRECTORS As a progressive and pro-active compliance to the requirements of
Companies Act, 2013, your Company constituted CSR Committee on
During the year under review, Mr. Jerry Hsu, CEO, DHL Express February 5, 2014. The CSR Committee of the Company comprises
Asia Pacific and a nominee of DHL Express (Singapore) Pte. Ltd. of Mr. Sharad Upasani as Chairman of the Committee and Mr. Anil
tendered his resignation as a Director with effect from March 25, 2014. Khanna and Mr. Malcolm Monteiro as members of the Committee.
The Board accepted his resignation and placed on record, its sincere
appreciation and thanks for his valuable contribution during his tenure Mr. Yogesh Dhingra, CFO and COO is permanent invitee to the CSR
as a Director. Consequently, Mr.George Berczely, an Alternate Director Committee of the Board.
to Mr. Jerry Hsu, ceased to be a Director with effect from March 25,
2014 under the statutory provisions of the Companies Act, 1956. The NOMINATION AND REMUNERATION COMMITTEE
Board placed on record, its sincere appreciation and thanks for his
In compliance with the provisions of Companies Act, 2013, your
valuable contribution during his tenure as an Alternate Director.
Company re-aligned its existing ‘Compensation Committee’ as
In accordance with the provisions of the Companies Act, 1956, and ‘Nomination and Remuneration Committee’ with an enhanced scope
Articles of Association of the Company, Mr. Malcolm Monteiro, Director, and functions as stipulated under the new law. The Nomination &
retires by rotation at the ensuing Annual General Meeting and, being Remuneration Committee of the Company comprises of Mr. Suresh
eligible, offers himself for re-appointment. Sheth as Chairman of the Committee and Mr. Sharad Upasani and
Mr. Malcolm Monteiro as members of the Committee.

30 BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 DIRECTORS’ REPORT

Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra, CFO of Corporate Governance practices and has implemented all the
and COO are permanent invitees to the Nomination & Remuneration stipulations as prescribed.
Committee.
Your Company believes that Corporate Governance is the application
STAKEHOLDERS RELATIONSHIP COMMITTEE of best management practices, compliance of law in true letter and
spirit and adherence to ethical standards for effective management
Your Company re-aligned its existing ‘Investors Grievance Committee’ and distribution of wealth and discharge of social responsibility for
as ‘Stakeholders Relationship Committee’ with an enhanced scope sustainable development of all stakeholders.
and functioning. The Stakeholders Relationship Committee comprises
of Mr.Suresh Sheth as Chairman of the Committee and Mr. Anil Khanna Good corporate governance is a culture and a climate of Consistency,
as member of the Committee. Responsibility, Accountability, Fairness, Transparency and Effectiveness
that is promoted throughout the organisation. Good governance
CHANGE OF FINANCIAL YEAR cannot be mandated; it should flow within the organisation and should
integrate with the corporate culture. This not only helps make the world
As a pro-active compliance to the provisions of New Companies Act,
better and more sustainable, but it also reflects good business sense.
2013, your Company had changed its accounting/financial year from
31st December to 31st March in the previous year 2013 itself. A section on Corporate Governance, along with a certificate from the
Auditors confirming compliance of conditions of Corporate Governance
DIRECTORS’ RESPONSIBILITY STATEMENT
as stipulated under Clause 49 of the Listing Agreement with the Stock
Pursuant to the provisions of Section 217 (2AA) of the Companies Act, Exchange(s) is annexed and forms part of the Directors’ Report.
1956, your Directors confirm that;
A detailed review of operations, performance and future outlook of the
(i) In the preparation of annual accounts, the applicable Company and its business is given in the Management Discussion and
accounting standards have been followed, along with proper Analysis Report which forms an integral part of this Report and is set
explanation relating to material departures; and that no out as a separate Section to this Annual Report.
material departures have been made from the same.
CEO/CFO CERTIFICATION
(ii) They have selected such accounting policies and applied
In accordance with the provisions of the Listing Agreement pertaining
them consistently and made judgments and estimates that
to corporate governance norms, Mr. Anil Khanna, Managing Director
are reasonable and prudent, so as to give a true and fair
and Mr.Yogesh Dhingra, CFO and COO, have certified, inter-alia,
view of the state of affairs of the Company at the end of the
on review of financial statements and establishing and maintaining
financial year and of the profit and loss of the Company for
internal controls for the financial reporting for the year ended March
that year;
31, 2014. The said certificate forms an integral part of the Annual
(iii) They have taken proper and sufficient care for the Report.
maintenance of adequate accounting records in accordance
FIXED DEPOSITS
with the provisions of the Act, for safeguarding the assets
of the Company and for preventing and detecting fraud and Your Company has not accepted any fixed deposits under the
other irregularities; and provisions of Section 58A of the Companies Act, 1956.
(iv) They have prepared the annual accounts on a going concern AUDITORS
basis.
The Statutory Auditors, M/s. Price Waterhouse, Chartered Accountants,
LISTING ARRANGEMENT (Firm Registration no. 301112E), retire at the ensuing Annual General
Meeting and, being eligible, offer themselves for re-appointment. Your
The Company’s Equity Shares are listed on The BSE Ltd. and National
Company has received necessary certificate from them confirming
Stock Exchange of India Ltd. (NSE). The Company has paid its Annual
that, their re-appointment, if made, will be in accordance with the
Listing fees to the above stock exchanges for the Financial Year 2014-
provisions of Section 139 of the Companies Act, 2013 and they satisfy
2015.
the criteria provided under section 141 of the Companies Act, 2013.
CORPORATE GOVERNANCE
The Board of Directors recommends re-appointment of M/s.Price
Your Company adopts high standards of Corporate Governance in all Waterhouse, Chartered Accountants, (Firm Registration no. 301112E),
areas of functioning with strong emphasis on transparency, integrity as Statutory Auditors of the Company from the conclusion of Twenty
and accountability. Your Company adheres to the requirements set Third Annual General Meeting upto a conclusion of next Annual
out by the Securities and Exchange Board of India (SEBI) in terms General Meeting, subject to necessary approval by the Shareholders
of the Company at the ensuing Annual General Meeting.

BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 31

 DIRECTORS’ REPORT

HUMAN RESOURCE DEVELOPMENT revenue roles with an overall retention rate of 80%. The Management
has received good feedback about their performance and assimilation
HUMAN RESOURCES: STRATEGY IN LINE WITH BUSINESS in the organisational culture. The Company continues to groom and
nurture them with regular review, guidance and mentoring support.
Employees are the backbone of any good organisation. Our employees
continue to be our core strength and we continue to focus on enhancing Blue Dart Mentoring Programme
and developing their capabilities.
The Company’s senior management and key managers continues to
Your Company has been built on the foundation of ‘People First’ drive the mentoring initiatives for the management trainees and other
philosophy, resulting in it being recognised as one of India’s top 10 new recruits especially in key roles and handhold them for all-round
amongst the Best Companies To Work For and No. 1 in the transport exposure and perspective about the company’s functioning, culture
industry in a study conducted by Great Places To Work Institute, India and values. The mentoring initiatives enhance comfort level, remove
in collaboration with The Economic Times. apprehensions and difficulties faced by the new entrant and create a
culture of continuous learning and development which in turn will result
This ‘Employer of Choice’ position is a result of an overwhelmingly
in employee retention and engagement.
people-focused vision. Your Company views HR (Human Resources)
function as the support system for its business growth and as a crucial The above is being actualized through the pool of Mentors created
value addition towards meeting organisational goals through proactive which included Managers, Senior Managers, Vice Presidents, Senior
business partnership. Vice Presidents and the Managing Director.
Organisation Health and Employee Motivation and Morale Training and Development
In the year 2013, 99% of eligible employees participated in the annual The Company recorded an average of around 2 training man days.
Employee Satisfaction Survey (ESS). The mean satisfaction score for
the year 2013 is 4.60. ‘Pride for Working in Blue Dart’ continues to rank Some of the Key Soft Skill Training and Technical Trainings conducted
highest with a score of 4.80 and ‘My future in Blue Dart’ scored 4.68. for the employees were:
Besides the above, few other parameters such as ‘Job secured with
good performance’, ‘BDE does a good job for customers’ and ‘Working • Delivering Smiles, the service spirit
in BDE is good for me’, have also ranked high. • Dangerous Goods and Radioactive – Train the Trainer
The high score on “Pride for working in Blue Dart” (96%), Employee • Counter Handling
engagement score (94.55%) and Active Leadership by Managers
(93.89%) reflects very good organisational health, employee • Dangerous Goods Regulation
commitment, motivation and morale the key drivers of customer
satisfaction, organisational excellence which continues to position • Fire Fighting and Security
Blue Dart as one of the top 10 best companies to work for.
• Package Handling
Building a stronger Employer of Choice brand Performance
• Personal Effectiveness
Appraisal
• Products
Motiv-8, the online performance management is used to assess
the performance and potential for all executive personnel in terms • Effective Business Communication
of their key result areas, competency framework and manager’s
recommendation on the individual developmental plan (IDP) for their • Time Management
career growth. The appraisals for the assessment period of January-
December 2013 were successfully concluded ‘online’ covering around • Effective Presentation Skills
2500 executives. The key talent retention rate in 2013 stood at 97%, • Conflict Management
reflecting an improvement over the year 2012 where the overall
retention rate was 86%. Your Company conceptualized and introduced an integrated “New
Age Leadership development programme” structured around 3 levels
Management Trainee Programme i.e. Prarambh (Supervisory Development), Neev (Front Line OPS
35 Management Trainees were inducted into the company to Executive Development) and Uddan (Managers Development) in
strengthen future leadership preparedness in sales and operations 2013. Prarambh-a 2 day intensive training programme for supervisory
and were successfully absorbed in the company in January 2013 post development was launched through “Train the Trainer model”. Of the
completion of their training. They were assigned various operational and 900 Operation supervisors, 482 have already been trained in 2013.

32 BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 DIRECTORS’ REPORT

In order to continuously develop customer service capability, Magic of PARTICULARS REGARDING CONSERVATION OF ENERGY,
Service Excellence, a customised programme for Blue Dart customer TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
service contact center executives was conducted covering 130 EARNINGS AND EXPENDITURE
executives.
The particulars regarding foreign exchange earnings and expenditure
Employee Communication are annexed hereto as Annexure “A” and forms part of this Report.
Since your Company does not own any manufacturing facility, the
To communicate, share and align employees on organisational plans, other particulars relating to conservation of energy and technology
business performance, policies, processes, initiatives and strategies absorption stipulated in the Companies (Disclosure of Particulars in
for the future, the Team Briefing sessions by the Managing Director the Report of the ‘Board of Directors’ Rules, 1988) are not applicable.
with the Senior Management Team were held periodically. 10 Team
Brief sessions were held in the year 2013. This initiative was very well CORPORATE SOCIAL RESPONSIBILITY (CSR)
received by the employees.
Living Responsibility
To further re-inforce the communication, HR conducts Open House
sessions for front line staff on regular basis. The open house sessions Living Responsibility or in common parlance ‘Corporate Responsibility’
are conducted every quarter at all the locations and service centers of is a core element of Blue Dart’s corporate strategy. As a socially
Blue Dart. These open house sessions allow employees to express responsible corporate, Blue Dart’s commitment towards community
their concern areas which affect their work life, morale and motivation causes has been unwavering since its inception in 1983. Blue Dart,
for solution/clarification. A total of 405 Open Houses were conducted as a responsible corporate citizen believes that giving back to society
in the year 2013. is not just a ‘corporate social responsibility’, but is a duty towards its
communities and the environment from where it draws its resources.
Culture Building More than ‘responsibility’ it is ‘sustainability’ that is its cornerstone.

The Company continues to invest in enhancing and spreading a In line with Deutsche Post DHL’s (DP DHL) ‘Living Responsibility’, Blue
strong service culture. All efforts were put in to ensure that employees Dart takes its responsibility to society, communities, employees and
see value in the brand through manifestations in areas like equity in the environment seriously. Under this credo, Blue Dart (along with DP
rewards, reliable, caring and impartial management. On a continuous DHL) focuses its corporate responsibility on environmental protection
and regular basis, employees also participated in various employee (GoGreen), disaster management (GoHelp) and championing
engagements around festivals, national events, sports, talent contest education (GoTeach).
etc.
Under GoTeach platform, the flag bearer is the ‘Blue Edge: Empowering
Employee Recognition Lives’ programme, a 6-month program aimed at enriching the lives of
young adults from difficult environments, who have not been able to
7 employees were conferred the Employee of the Year award for complete their education. This life-transforming initiative has helped
their outstanding performance while 3 employees were conferred the in impacting young adults from the underprivileged sections of society.
Outstanding Sales Performer award. 1024 employees were awarded The program saw completion of the 12th and 13th batches in Mumbai
the on-the-spot Bravo award by individual managers for excellent and 4th and 5th batch in Chennai in 2013. The 14th and 6th batches
work. 21 employees were awarded the prestigious Super Darter award in Mumbai and Chennai respectively are currently underway. Over 715
for achievements beyond the call of duty. The Company is proud that young adults have been through this effective intervention programs
754 Blue Darters joined the True Blue club, on completion of 5 years dealing with english speaking ability, life skills, customer orientations
of service. and computer skills which has helped them break the chains of poverty
EMPLOYEES and unemployment, by providing the much needed edge of education
in this competitive world.
Your Directors place on record their deep appreciation for the
contribution made by employees of the Company at all levels. Strengthening Blue Dart’s association with Teach for India, this year
Blue Dart hosted 39 students aged between 10 to 12 years from Teach
Information on the particulars of employees’ remuneration as per For India-supported Shivner Vidya Mandir, Mumbai who were given
Section 217(2A) of the Companies Act, 1956, read with Companies a once-in-a-lifetime opportunity to visit the Blue Dart (HQC) followed
(Particulars of Employees) Rules, 1975, forms part of this Report. by a drawing competition on the theme of ‘The India of my Dreams’.
However, as per the provisions of Section 219(1)(b)(iv) of the The students interacted with the Senior Management Team (SMT) and
Companies Act, 1956, the report and accounts are being sent to all employees to familiarise themselves with the corporate culture and
shareholders of the Company, excluding the Statement of Particulars gain a view of a workplace environment, an opportunity which is rarely
of Employees which is available for inspection at the Registered Office bestowed on them.
of the Company during working hours. Any shareholder interested in
such particulars may inspect the same.

BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 33

 As part of its Power Saver-Lights Off initiative under GoGreen, Blue ACKNOWLEDGEMENT
Dart continued with its practice of switching lights off for an hour every
month across all its offices in India. This year too Blue Dart observed The Board of Directors wishes to express its sincere appreciation
Earth Day, World Environment Day and Earth Hour. This year, 654 and thanks to all customers, suppliers, banks, financial institutions,
Blue Darters pledged to switch off all lights at their homes for an hour solicitors, advisors, Government of India, concerned State Governments
on March 29, 2014, the highest ever record number of pledges taken and other authorities for their consistent support and co-operation in
by Blue Darters for Earth Hour. contributing to Organisation’s success.

Under GoHelp, Blue Dart joined hands with Urja Foundation and Your Directors appreciate the contribution made by the employees
Dr. Harivansh Rai Bachchan Memorial Trust as the Official Logistics of the Company and acknowledge their hard work and dedication to
Partner for providing solar powered lights to around 3000 homes ensure that the Company consistently performs well.
across India. Anil Khanna, Managing Director was felicitated by In these trying times, the enthusiasm and unstinting efforts of
Amitabh Bachchan at an event in Mumbai for partnering towards the employees enabled your Company to remain a leading player in the
noble cause of electrifying rural India. Express Industry.
Blue Dart provided free of cost (FOC) support to various NGOs and We are also deeply grateful to our Shareholders for the confidence and
logistics support to Phailin cyclone victims and Uttarakhand flood faith that they have always placed in us.
victims.
For and on behalf of the Board of Directors,
Blue Dart also partnered with Pinkathon where women employees
participated in the Women’s 10 km, 5 km & 3 km run, an initiative
aimed to raise awareness for women’s health and breast cancer,
educate women about its prevention and treatment. Other partners Sharad Upasani Anil Khanna
were Women’s Cancer Initiative and Tata Memorial Hospital. Chairman Managing Director

On February 18, 2014, Blue Dart successfully organised the 3rd Blue Malcolm Monteiro Suresh Sheth
Dart World CSR Day and Global CSR Excellence & Leadership Awards Director Director
in Mumbai. The event was graced by the Chief Guest Dr. Bhaskar
Chatterjee, Director General & CEO, Indian Institute of Corporate
Affairs. The event was well attended by leading organisations like
Sanofi, KPMG, Hewlett Packard, CRY, Indian Institute of Corporate Mumbai,
Affairs, NGOs and sustainability champions from across the globe, June 21, 2014
including representatives from the United Nations Organisation.

In addition to this, Blue Dart also conducted various volunteering

initiatives during Global Volunteer Day (GVD) 2013. Over 8,394
volunteers from Blue Dart, DHL Express, DHL Supply Chain and DHL
Global Forwarding joined hands to make a difference during GVD
2013, showcasing exemplary unity in spirit, vision and purpose. 3,145
X BU volunteers across India supported the plantation of a staggering
9,114 saplings with Grow-Trees.com (official partner of the United
Nations Environment Program’s Billion Tree Campaign and WWF’s
Cities for Forests Campaign) in the periphery of Sundarbans National
Park, West Bengal. Apart from this, 266 X BU volunteers participated
in sapling plantation drives carried out in various parts of the country.
2,215 X BU volunteers across 18 cities in India donated blood to
save lives. 2,541 X BU Volunteers also donated essential utilities,
medicines, lake cleaning and sponsoring meals at various children’s
/ old age homes and creating traffic awareness amongst citizens. 227
X BU volunteers across the country invested time in the lives of over
2,000 children through activities such as story reading sessions, quiz
sessions, drawing competitions and talk on health and hygiene.

34 BLUE DART EXPRESS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 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 year ended March 31, 2014 were ` 3,301(lacs) [previous fifteen months: ` 3,558 (lacs)]

Expenditure in Foreign Currency

Expenditure in foreign currency during year ended March 31, 2014 was ` 250 (lacs) [previous fifteen months: ` 308 (lacs)]

BLUE DART EXPRESS LIMITED | ANNEXURE TO THE DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 35
 REPORT ON CORPORATE GOVERNANCE

1. Blue Dart’s philosophy on Corporate Governance Organisation’s commendable performance during the same period.
The basic philosophy of Corporate Governance at Blue Dart is to He possesses over 21 years of experience in various functions
achieve business service excellence and to create and enhance of Blue Dart. Mr. Malcolm Monteiro is credited with setting up of
value for its Shareholders, Customers, Employees, Society and much acknowledged ‘Track and Trace’ System & ERP System
Business Associates thereby making a significant contribution (COSMAT 2) as well as Aviation ‘Space Management’ System
to the economy. Since inception, Blue Dart has inculcated and (SMART) amongst other cutting edge technologies. He was the
maintained a strong culture of values, ethics and integrity. prime mover in re-launch of Blue Dart’s website, www.bluedart.com -
quick responsive, interactive e-Business solutions site and he also
Companies who have demonstrated adherence to corporate
contributed towards building of an extensive, secured countrywide
governance in spirit, more than letter, have reaped the benefits.
IT network.
Corporate Governance is the mechanism by which the values,
principles, policies and procedures of the Organisation are Mr. Monteiro was primarily responsible in developing committed
inculcated and manifested. The essence of good corporate and trained human resources resulting into highly reliable
governance lies in promoting and maintaining integrity, operations and unmatched service excellence which were major
transparency and accountability across the organisation. contributors in making Blue Dart an undisputed Market Leader in
the Domestic Express Industry.
For Blue Dart, Corporate Governance is a continuous journey,
seeking to provide an enabling environment to harmonise Mr. Monteiro holds a post-graduate degree in Management from
the goals of maximising stakeholder value and maintaining a IIM, Ahmedabad and is a graduate in an Electrical Engineering
customer-centric focus. Blue Dart has established systems and from IIT, Mumbai, both of which are world-renowned top ranking
procedures to ensure that its Board of Directors is well informed institutions in their respective fields.
and well equipped to fulfill its overall responsibilities and to provide Directorship in Other Companies
management with the strategic direction needed to create long- 1. DHL Global Mail (Singapore) Pte. Ltd.
term shareholders’ value. Effective and transparent corporate
2. DHL Global Mail (Hong Kong) Ltd.
governance guarantees that Blue Dart is managed and monitored
in a responsible manner focused on value creation. 3. Deutsche Post Global Mail (Australia) Pty. Ltd.
The Board of Directors of the Company continues to accord 4. Just Dial Ltd.
the highest priority to adherence of principles of Corporate Mr. Malcolm Monteiro, Director is a member of the Audit Committee
Governance. It believes in upholding the highest standards of and Nomination & Remuneration Committee of Just Dial Limited
accountability and actively participates in overseeing risks and and Member of the Audit Committee, Nomination & Remuneration
strategic management. The Board of Directors has the basic Committee and CSR Committee of Blue Dart Express Limited.
responsibility to ensure sustainable improvement in corporate Besides this, he is not a member of any other Committees as
valuations by providing strategic guidance regarding management contemplated under the provisions of Clause 49 of the Listing
decisions. Blue Dart is conscious of its responsibility to establish Agreement and do not hold any shares in the Company.
a culture that creates an atmosphere of `trust’ amongst all its Mr. Malcolm Monteiro and any of the other Directors of the
stakeholders. Company do not have any inter-se relationship.
2. Board of Directors As on March 31, 2014, composition of the Board of Directors
During the year under review, Mr. Jerry Hsu, resigned as a Director comprises of one Executive Director and four Non-Executive
with effect from March 25, 2014. Consequently, Mr.George Directors. All key decisions are taken only after detailed
Berczely, an Alternate Director to Mr. Jerry Hsu, ceased to be deliberations and discussions by the Board. The Board of Directors
a Director with effect from March 25, 2014 under the statutory possesses adequate experience, expertise and skills necessary
provisions of the Companies Act, 1956. to manage affairs of the Company in the most efficient manner.
In accordance with the provisions of Companies Act, 1956 and The Board acts with an autonomy and independence in the
Articles of Association of the Company, Mr. Malcolm Monteiro, strategic decision-making process and discharging its fiduciary
Director, retires by rotation at the ensuing Annual General Meeting responsibilities.
and being eligible, offers himself for re-appointment. The DHL nominee Directors hold the firm belief that DHL’s best
Mr. Malcolm Monteiro is CEO - DHL eCommerce Asia Pacific with interests are aligned with the continued growth and success of the
effect from April 1, 2014. Prior to his present role, he acted as a Company.
CEO DHL Express South Asia since 2007 and was responsible for As regards appointment and tenure of the Independent Directors,
reinforcing the vision of DHL, aggressively growing the international following policy is adopted by the Board:
and domestic businesses and market share, enhancing customer i) Company has adopted the provisions with respect to
experience at every customer touch point, encouraging a high appointment and tenure of Independent Directors which is
level of employee engagement through active leadership for India, consistent with the Companies Act, 2013.
Sri Lanka, Pakistan, Nepal, Maldives, Bangladesh and Bhutan.
ii) The Independent Directors would serve a maximum of two
Mr. Monteiro was Managing Director of Blue Dart Express Ltd. terms of five years each.
during the period viz; March 13, 2006 to February 21, 2007 and led

36 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

iii) In the transition to the Companies Act, 2013, which is effective Board Procedure
April 1, 2014, those Independent Directors who have already The Board of Directors is presented with all the relevant information
served for ten or more years will serve for a maximum period on vital matters that affect working of the Company as well as those
of one term of five years. which require deliberations at the highest level. It is ensured that
iv) With above changes, the Company would not have any upper information, as required under Annexure I A to the provisions of
age limit of retirement of Independent Directors from the Clause 49 of the Listing Agreement is made available to the Board
Board and their appointment and tenure would be governed of Directors to enable them to discharge their functions effectively.
by provisions of the Companies Act, 2013. There is no relationship between the Directors inter-se.
Board Independence The size and composition of the Board conforms to the requirements
Our definition of `Independence’ of Directors is derived from Clause of Corporate Governance norms as stipulated under the provisions
49 of the Listing Agreement with Stock Exchanges and Section of the Listing Agreements entered into with the Stock Exchanges.
149 (6) of the Companies Act, 2013. Based on the confirmation/ The meetings of the Board of Directors are scheduled well in
disclosures received from the Directors and on evaluation of advance and generally held at the Company’s Registered Office in
the relationships disclosed, Mr. Sharad Upasani, Chairman Mumbai. The Notice of the Board Meeting and Board Agenda with
and Mr. Suresh Sheth, Director are Independent in terms of the detailed enclosures are sent in advance to all Directors.
provisions of Clause 49 of the Listing Agreement and Section
During the year under review, six Board Meetings were held, viz;
149(6) of the Companies Act, 2013.
May 2, 2013, July 23, 2013, September 24, 2013, October 15,
2013, December 10, 2013 and February 5, 2014.

The details of attendance of each Director at the Board Meetings, last Annual General Meeting, and number of other directorship and membership in
the 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 Independent & Chairman 6 Yes 2 Nil Nil

Non-Executive Director
Mr. Anil Khanna Executive Director Managing Director 6 Yes Nil 1 Nil
Mr. Malcolm Monteiro Non-Independent & Director 5 Yes 1 3 Nil
Non-Executive Director
Mr. Clyde Cooper Non-Independent & Director 3 No 1 1 Nil
Non-Executive Director
Mr. Suresh G Sheth Independent & Director 6 Yes 2 Nil Nil
Non-Executive Director
Mr. Jerry Hsu * Non-Independent & Director Nil No Nil Nil Nil
Non-Executive Director
Mr. George Berczely ** Non-Independent & Alternate Director 5 No Nil Nil Nil
Non-Executive Director

Notes :

*1) Mr. Jerry Hsu, CEO, a Nominee Director of DHL Express (Singapore) Pte. Ltd, resigned as a Director of the Company with effect from March 25,
2014.
**2) Consequent to resignation of Mr. Jerry Hsu as a Director with effect from March 25, 2014, Mr. George Berczely, an Alternate Director to Mr. Jerry
Hsu, ceased to be a Director with effect from March 25, 2014.
3) The Directorships held by Directors as mentioned above, includes Directorships in the Private Limited Companies and Companies registered
under Section 25 of the Companies Act, 1956, but do not include Directorships in Foreign Companies.

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 37
 REPORT ON CORPORATE GOVERNANCE

3. Audit Committee b. Changes, if any, in the accounting policies and practices

and reasons for the same.
The Audit Committee of the Board deals with all matters relating
to financial reporting, internal controls, risk management etc. and c. Major accounting entries involving estimates based on
reports to the Board from time to time. The Board of Directors the exercise of judgment by the management.
of the Company constituted an Audit Committee at its Board d. Significant adjustments made in the financial statements
Meeting held on May 8, 2001. arising out of audit findings.
Composition e. Compliance with listing and other legal requirements
relating to financial statements.
The Audit Committee comprises two Independent Non-Executive
Directors, viz. Mr. Sharad Upasani and Mr. Suresh Sheth and f. Disclosure of any related party transactions.
one Non-Independent and Non-Executive Director, Mr. Malcolm
g. Qualifications in the draft audit report.
Monteiro. The Chairman of the Committee is Mr. Sharad Upasani.
Mr. Tushar Gunderia, Company Secretary, acts as Secretary to 5. Reviewing with the management, the quarterly financial
the Audit Committee. statements before submission to the board for approval;

Mr. Anil Khanna, Managing Director; Mr. Yogesh Dhingra, Chief 6. Reviewing with the management the statement of uses /
Financial Officer & Chief Operating Officer; the Statutory Auditors application of funds raised through an issue (public issue,
and the Internal Auditor are the permanent invitees to the Audit rights issue, preferential issue etc.), the statement of funds
Committee Meetings. utilized for the purposes other than those stated in the
offer document / prospectus / notice and report submitted
The powers, role and terms of reference of the Audit Committee by the monitoring agency, monitoring the utilisation of
are in accordance with the provisions of Clause 49 of the Listing proceeds of a public or rights issue and making appropriate
Agreement entered into with the Stock Exchanges and Section recommendations to the Board to take up steps in this
292A of the Companies Act, 1956. matter;

Pursuant to the provisions of Section 177 of the Companies Act, 7. Review and monitor the auditor’s independence and
2013 which is notified and effective from April 1, 2014, the Board performance, and effectiveness of audit process;
of Directors of the Company in its meeting held on May 9, 2014 8. Approval or any subsequent modification of transactions of
enhanced terms of reference and scope of the Audit Committee the Company with related parties;
to align with the new requirements of Companies Act, 2013 and
amended norms of Listing Agreement. 9. Scrutiny of the inter-corporate loans and investments;

The terms of reference of the Audit Committee, inter-alia 10. Valuation of undertakings or assets of the company,
include the following :- wherever it is necessary;
11. Evaluation of internal financial controls and risk management
1. Oversight of the Company’s financial reporting process and
systems;
the disclosure of its financial information to ensure that the
financial statement is correct, sufficient and credible; 12. Reviewing with the management the performance of
statutory and internal auditors, an adequacy of the internal
2. Recommendation for appointment, remuneration and terms
control systems;
of appointment of Auditors of the Company;
13. Reviewing the adequacy of internal audit function, if any,
3. Approval of payment to Statutory Auditors for any other
including structure of the internal audit department, staffing
services rendered by the Statutory Auditors;
and seniority of the official heading the department, reporting
4. Reviewing, with the management, the annual financial structure, coverage and frequency of internal audit;
statements and auditor’s report thereon, before submission
14. Discussion with the internal auditors of any significant
to the Board for approval, with particular reference to:
findings and follow up thereon;
a. Matters required to be incorporated in the Director’s
15. Reviewing the findings of any internal investigations by the
Responsibility Statement to be included in the Board’s
internal auditors into matters where there is a suspected
report in terms of clause (c) of sub-section 3 of section
fraud or irregularity or a failure of internal control systems of
134 of the Companies Act, 2013.
a material nature and reporting the matter to the board;

38 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

16. Discussions with the statutory auditors before the audit Mr. Malcolm Monteiro. The Committee is chaired by Mr. Suresh
commences, about the nature and scope of audit as well as Sheth, Director.
post-audit discussions to ascertain any area of concern;
Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra, CFO
17. To look into the reasons for substantial defaults in the and COO are the permanent invitees to the Nomination and
payment to the depositors, debenture holders, shareholders Remuneration Committee
(in case of non-payment of declared dividends) and
creditors; The details of attendance of each Member at the Nomination and
18. To review the functioning of Whistle Blower mechanism; Remuneration Committee Meeting held during the year ended
March 31, 2014 are as under:
19. Approval of appointment of CFO (i.e. the whole-time Finance
Director or any other person heading the finance function or Names of Director Position No. of Meetings
discharging that function) after assessing the qualifications, Held Attended
experience and background etc. of the candidate;
20. Carrying out any other function as mentioned in the terms of Mr. Suresh G Sheth Chairman 1 1
reference of the Audit Committee.
The Audit Committee of the Company meets and interacts
Mr. Sharad Upasani Member 1 1
at least twice a year with the Senior Management Personnel
which gives the Audit Committee a deeper insight into the
Mr. Malcolm Monteiro Member 1 1
workings of major departments and regions.
The Executive Director is paid remuneration in terms of a
During the year under review, eight Audit Committee resolution passed by the members at the General Meetings.
Meetings were held, viz; May 2, 2013, July 23, 2013 (two
meetings, one of which was with the Senior Management of The terms of reference of `Nomination and Remuneration
the Company), October 15, 2013 (two meetings), December Committee’ inter-alia includes :
10, 2013 and February 5, 2014 (two meetings, one of which
i) To identify persons who are qualified to become directors
was with the Senior Management of the Company).
and who may be appointed in the senior management in
The constitution of the Audit Committee and other related accordance with the criteria laid down, recommend to the
information as on March 31, 2014, is as under: Board their appointment and removal and to carry out
evaluation of every Director’s performance.
Names of Director Position No. of Meetings
Held Attended ii) To formulate the criteria for determining qualifications,
positive attributes and independence of a director
and recommend to the Board a Policy, relating to the
Mr. Sharad Upasani Chairman 8 8 remuneration for the Directors, Key Managerial Personnel
and other employees.
Mr. Suresh G Sheth Member 8 8
The Board of Directors of the Company at its Meeting held on
Mr. Malcolm Monteiro Member 8 6 October 14, 2003, decided to pay sitting fees of ` 20,000/- per
meeting to the Non-Executive Directors for each meeting of the
4. Nomination and Remuneration Committee Board, Audit Committee and Nomination and Remuneration
Committee attended by them. The Board of Directors of the
The Board of Directors of the Company had constituted a Company at its Meeting held on May 9, 2014, further decided to
Compensation Committee of the Directors at the Board Meeting pay sitting fees of ` 20,000/- per meeting to the Non-Executive
of the Company held on May 7, 2002. Directors for each meeting of the Corporate Social Responsibility
(CSR) Committee. DHL nominated Directors do not accept any
The Board of Directors at its meeting held on February 5, sitting fees as per their internal guidelines.
2014 approved constitution of ‘Nomination and Remuneration
Committee’ (by re-aligning/ renaming existing Compensation In terms of the provisions of Clause 49 of the Listing Agreement,
Committee) under the Companies Act, 2013 The `Nomination the Board is required to have at least one third of the members
and Remuneration Committee’ comprises two Independent of the Board as Independent Directors if the Chairman is Non-
Non-Executive Directors viz. Mr. Suresh Sheth and Mr. Sharad Executive. The Company’s present Board comprises Mr. Sharad
Upasani, and a Non-Independent and Non-Executive Director, Upasani and Mr. Suresh Sheth, who are Independent Directors
on the Board of the Company.

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 39
 REPORT ON CORPORATE GOVERNANCE

Mr. Sharad Upasani, the Independent Director, holds a Masters In addition to above amount, Mr. Anil Khanna shall be
in Commerce and an LLB degree from the Mumbai University, entitled to the following;
besides an MBA degree from USA.
(i) The Company’s contribution to Provident Fund, in
Mr. Upasani was Chairman, Company Law Board and retired accordance with the Rules and Regulations of the Company.
as Chief Secretary, Government of Maharashtra. He is now
a consultant on Corporate Law and acts as an Arbitrator in (ii) Gratuity payable at a rate not exceeding half a month’s
corporate disputes. salary for each completed year of service.

Mr. Suresh Sheth, Independent Director, is a Commerce (iii) Encashment of an unavailed leave at the end of each year.
graduate from the Sydenham College of Commerce and
(iv) Re-imbursement of telephone expenses at residence for
Economics, Mumbai and a Fellow Chartered Accountant (FCA)
official purpose.
and has been a Member of the Institute of Chartered Accountants
of India (ICAI) for the past 43 years. Mr. Sheth is a partner in (v) A chauffeur – driven vehicle.
M/s. Sheth & Company, a firm of Chartered Accountants. His
areas of specialisation include Audit, Taxation and Financial (vi) Coverage under Company’s Group Insurance Cover.
Consultancy.
(vii) Fees of club, subject to a maximum of one club. This will not
In the Annual General Meeting of the Company held on April 26, include admission and life membership fees.
2011, Shareholders of the Company had approved payment of
commission to the Non-Executive Directors, not exceeding 1% (viii) Subscription and Annual fees for the Corporate Credit Card.
of Net Profit of the Company in accordance with the provisions of (ix) The Managing Director shall be entitled to an incentive
the Companies Act, 1956 for a period of 5 years. For their valuable payment based on achievement of profitability levels for the
contribution by way of advice for various project works from time calendar year ended December 31, 2013, upto a maximum
to time, the Company pays a commission to Mr. Sharad Upasani of ` 75 lacs, as may be decided by the Board of Directors
and Mr. Suresh Sheth, Non-Executive Directors, at such rate as from time to time.
determined by the Board of Directors of the Company and within
the ceiling as prescribed under the provisions of the Companies (x) Increment for each year shall be determined by the
Act, 1956. ‘Nomination and Remuneration Committee’ and which
shall be subject to approval of the Board of Directors
During the period, the Company paid commission to Mr. Sharad and members of the Company at the General Meeting of
Upasani and Mr. Suresh Sheth, Non–Executive Directors, members.
aggregating to ` 25 lacs for the fifteen months period ended
March 31, 2013. (xi) Such other benefits in accordance with the schemes and
rules as applicable from time to time and not exceeding the
The Compensation Committee (now reconstituted as Nomination sum of ` 3.5 lacs per annum.
and Remuneration Committee) Meeting of the Company was
held on May 2, 2013. During the term of employment of the Managing Director, if in
any financial year, the Company does not earn any profits or
In terms of Agreements executed with the Company, Mr. Anil earns inadequate profits as contemplated under the provisions
Khanna, has been appointed as Managing Director of the of Schedule XIII of the Companies Act, 1956, unless otherwise
Company with effect from February 21, 2012 to February 20, approved by such Statutory Authority, as may be required,
2015 and details of terms of remuneration paid/ payable to the remuneration shall be paid as per the conditions and monetary
Managing Director are as under: ceiling prescribed in Schedule XIII to the Companies Act, 1956,
1 a) Mr. Anil Khanna, Managing Director or any re-enactment thereof.

(with effect from April 1, 2013 to March 31, 2014) 1 b) Mr. Anil Khanna, Managing Director

(with effect from April 1, 2014 to February 20, 2015)

Basic - ` 8.18 lacs per month
Basic - ` 12.35 lacs per month
House Rent Allowance - ` 0.825 lacs per month
House Rent Allowance - ` 0.825 lacs per month
Special Allowance - ` 2.09 lacs per month
Special Allowance - ` 2.09 lacs per month
Sr. Management Allowance - ` 0.856 lacs per month
Sr. Management Allowance - ` 0.856 lacs per month

40 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

In addition to above amount, Mr. Anil Khanna shall be entitled to The ‘Nomination and Remuneration’ Committee of Directors
following; and Board of Directors of the Company are authorised to decide
remuneration of Whole–Time Directors, subject to approval of
(i) The Company’s contribution to Provident Fund, in Members and Central Government, if required.
accordance with the Rules and Regulations of the Company.
The Non–Executive Directors are paid remuneration by way of
(ii) Gratuity payable at a rate not exceeding half a month’s a sitting fees and commission except DHL- nominated Directors
salary for each completed year of service. who are not paid any sitting fees or commission, as per their
internal guidelines.
(iii) Encashment of an unavailed leave at the end of each year.
None of the Directors hold any shares of the Company.
(iv) Re-imbursement of telephone expenses at residence for
official purpose. The Company does not have any ‘stock options’ scheme.

(v) A chauffeur – driven vehicle. 5. Stakeholders Relationship Committee

(vi) Coverage under Company’s Group Insurance Cover. The Board of Directors had at its meeting held on February
5, 2014 approved constitution of ‘Stakeholders Relationship
(vii) Fees of club, subject to a maximum of one club. This will not Committee’ (by re-aligning/ renaming existing Investors
include admission and life membership fees. Grievance Committee) under the New Companies Act, 2013
consisting of Mr. Suresh Sheth as Chairman and Mr. Anil
(viii) Subscription and Annual fees for the Corporate Credit Card. Khanna as member of the Committee.

(ix) The Managing Director shall be entitled to an incentive The Stakeholders Relationship Committee’ of the Company
payment based on achievement of profitability levels for the approves and monitors transfers and transmission of shares and
calendar year ended December 31, 2014, upto a maximum replacement, split and consolidation of share certificates. The
of ` 75 lacs, as may be decided by the Board of Directors Committee also monitors redressal of complaints received from
from time to time. the shareholders relating to transfers/transmissions of shares,
non-receipt of annual reports, transfer of credit of shares to
(x) Increment for each year shall be determined by the demat accounts, dividend and other investor-related matters.
‘Nomination and Remuneration Committee’ and which The Meetings of Stakeholders Relationship Committee are held
shall be subject to approval of the Board of Directors once in a fortnight to consider matters placed before it.
and members of the Company at the General Meeting of
members. The Committee consists of Mr. Suresh Sheth, Non-Executive
Director, acting as Chairman of the Committee and Mr. Anil
(xi) Such other benefits in accordance with the schemes and Khanna, Managing Director.
rules as applicable from time to time and not exceeding the
sum of ` 3.5 lacs per annum. Mr. Tushar Gunderia, Company Secretary, has been designated
as Compliance Officer under the provisions of the Listing
During the term of employment of the Managing Director, if in Agreements entered into with the Stock Exchanges.
any financial year, the Company do not earn any profits or earns
an inadequate profits as contemplated under the provisions During the period under review, 241 correspondences were
of Schedule V of the Companies Act, 2013, unless otherwise received from the investors. These include 7 complaints received
approved by such Statutory Authority, remuneration shall be and disposed off during the year ended March 31, 2014. All
paid as per the conditions and monetary ceiling prescribed in Investors correspondence were attended expeditiously. There
Schedule V to the Companies Act, 2013 or any re-enactment were no investors’ complaints pending as on March 31, 2014.
thereof. Severance term agreed between the Company and the
Managing Director is six months notice or payment of six months’ All valid share transfers/transmissions and other requests
salary in lieu thereof. received during the period were approved and attended by
the Committee. There were no pending requests for transfer of
The remuneration policy of the Company is performance- Equity Shares as on March 31, 2014.
driven and is structured to motivate the employees, recognise
their merits and achievements and promote excellence in their
performance.

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 41
 REPORT ON CORPORATE GOVERNANCE

The details of Investors’ Correspondence received during the period of seven years statutorily get transferred to the Investors
year ended March 31, 2014 were as under: Education and Protection Fund (IEPF) administered by the
Central Government and thereafter cannot be claimed by
Nature of No. of No. of investors. In order to ensure maximum disbursement of an
Correspondence Correspondence Correspondence unclaimed dividend, the Company sends periodic reminders to
received resolved/attended the concerned shareholders prior to transfer of dividend to the
IEPF. As on date, the Company has transferred an unclaimed
Revalidation / Duplicate / 62 62 dividend declared for the financial years 1995-96, 1996-97,
Non-Receipt of Dividend 1998-99, 1999-2000 (interim and final dividend), 2000-2001,
Warrants 2001-2002, 2002-2003, 2003-2004, 2004-2005, December 2005
and December, 2006 to “The Investors Education and Protection
Non-Receipt of Share 18 18 Fund” established by the Central Government. All Members who
certificates / Transfers / have either not received or have not yet encashed their dividend
Transmissions warrant(s) for the financial year December 2007 till the year
ended March 31, 2014 are requested to write to the Company’s
Change of Address 46 46
Registrar and Share Transfer Agent for obtaining duplicate
Request for loss / duplicate/ 34 34 dividend warrant without any further delay.
replacement of Share
Certificates In accordance with the provisions of Clause 5A (II) of the Listing
Agreement, the Company has dematerialized and transferred
Others* 81 81 12,602 nos. of unclaimed equity shares pertaining to 119
shareholders in favour of “Blue Dart Express Ltd. – Unclaimed
Total 241 241 Suspense Account’ maintained with the Stock Holding
Corporation of India Ltd. During the year, Company received
*Others include correspondence pertaining to updating new signatures, one request from the shareholder for credit of 100 shares in
non-receipt of rejected dematerialisation request forms, registration his account and Company transferred shares in his favour. As
of Power of Attorneys, procedure for transmission of shares, dividend on March 31, 2014, 12,502 (twelve thousand five hundred and
mandate instructions, request for Annual Reports, letters from SEBI and two) unclaimed equity shares pertaining to 118 shareholders
Stock Exchanges and such other administrative matters. are in dematerialized mode with the Stock Holding Corporation
of India Ltd. The voting rights on these equity shares retained
The Company and the Registrar & Transfer Agent have attended as outstanding in the suspense account as on March 31, 2014
to most of the investors’ correspondence within a period of 8 would remain frozen till the rightful owner of such shares claim
days from the date of receipt of correspondence during the year these shares.
ended March 31, 2014.
7. Corporate Social Responsibility Committee
M/s. Link Intime India Pvt. Limited acts as the Registrar and
Share Transfer Agent of the Company. As a progressive and pro-active compliance to the requirements
of Companies Act, 2013, the Company has constituted a
In accordance with the provisions of the Securities and Exchange Corporate Social Responsibility (CSR) Committee on February
Board of India (Prohibition of Insider Trading) Regulations, 5, 2014. The CSR Committee of the Company comprises of
1992, as amended, the Company has formulated, adopted Mr. Sharad Upasani as the Chairman of the Committee and
and implemented ‘Blue Dart Code of Conduct for Prevention of Mr. Anil Khanna and Mr. Malcolm Monteiro as members of the
Insider Trading’ and `Code for Corporate Disclosure Practices’ Committee.
and it is strictly adhered to by all the designated personnel
notified for the purpose of application of the aforesaid Codes. The permanent invitee to the CSR Committee is Mr. Yogesh
Dhingra, CFO and COO.
The Stakeholders Relationship Committee monitors compliance
of the provisions of ‘Blue Dart Code of Conduct for Prevention of The role of Corporate Social Responsibility (CSR) Committee is
Insider Trading’ and `Code for Corporate Disclosure Practices’. as follows :

6. Unclaimed Dividend/Shares i) formulating and recommending to the Board, CSR Policy

and the activities to be undertaken by the Company.
Pursuant to the provisions of the Companies Act, 1956, (now
Companies Act, 2013) dividends which are unclaimed for a ii) recommending amount of expenditure to be incurred on the
activities undertaken.

42 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

iii) To constitute Management Committee for implementation d) The following Special Resolution was passed by the
and execution of CSR initiatives/ activities. Members during the previous three Annual General
Meetings.
iv) reviewing performance of the Company in the area of CSR.
At the Annual General Meeting held on April 26, 2011:
v) Monitoring CSR Policy of the Company from time to time.
To approve mode of payment of remuneration to Non-Executive
8. General Body Meetings Directors of the Company in the form of commission for a period
of five years from August 1, 2011.
a) The details of Annual General Meetings held during the last
three years are as under: At the Annual General Meeting held on April 24, 2012:

AGM for Day & Date Time Location No Special Resolution was passed.
Financial
Year ended At the Annual General Meeting held on July 23, 2013:

December Tuesday 4:30 p.m. Hotel Hilton Mumbai No Special Resolution was passed.
31, 2010 26.04.11 International Airport,
Sahar Airport Road, 9. Subsidiary Company
Andheri (East),
Mumbai – 400 099. The Company do not have any material non-listed Indian
subsidiary Company whose turnover or net worth (i.e. paid-up
December Tuesday 3:30 p.m. Hotel Hilton Mumbai Capital and Free Reserves) exceed 20% of the consolidated
31, 2011 24.04.12 International Airport, turnover or Net Worth of the Company and its subsidiary in the
Victoria Suite,Sahar immediately preceding accounting year.
Airport Road, Andheri
(East), Mumbai – 400 099. The Company monitors performance of its subsidiary, inter-alia,
by the following means:
Fifteen Tuesday 4:30 p.m. Hotel Hilton Mumbai
Months 23.07.13 International Airport, • The Financial Highlights of the unlisted subsidiary company are
Period Chancellor I,Sahar reviewed by the Audit Committee of the Company.
Ended March Airport Road, Andheri
31, 2013 (East), Mumbai – 400 099. • The Minutes of the Board Meetings of the subsidiary company
are placed before the Board Meeting of the Company.
b) All the resolutions set out in the respective Notices were • The details of any significant transactions and arrangements
passed by the Members. No Postal Ballot was conducted entered into by the unlisted subsidiary company are placed
during the period under review. None of the resolutions are before the Board of the Company.
proposed to be passed by the Postal Ballot method.
• The Company has its Senior Management personnel on the
c) Court Convened Meeting of Equity Shareholders :
Board of Directors of its subsidiary company.
A Court Convened Meeting of Equity Shareholders of the
10. Disclosures
Company was held on June 13, 2014 at 10.00 a.m. at Hotel
Hilton Mumbai International Airport, Sahar Airport Road,
Transactions with the ‘related parties’ as per the requirements
Andheri (East),Mumbai – 400 099, in terms of the Order
of the Accounting Standard 18 on “Related Party Disclosures”
dated May 2, 2014 of the Hon’ble High Court of Judicature
have been disclosed elsewhere in the Annual Report.
at Bombay, for obtaining approval from the Shareholders
of the Company in respect of the Scheme of Arrangement
Financial statements of the Company are prepared in compliance
for issue of unsecured, redeemable, non-convertible, fully
with Accounting Standards notified under the Companies Act,
paid up bonus debentures of Blue Dart Express Ltd. At the
1956 read with the General Circular 15/2013 dated September
meeting the proposed resolution was passed with requisite
13, 2013 of the Ministry of Corporate Affairs in respect of Section
majority.
133 of the Companies Act, 2013.

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 43
 REPORT ON CORPORATE GOVERNANCE

The Company has not entered into any other transaction of a Committee. This Code of Conduct is applicable to all Directors
material nature with the Promoters, Directors, its Management, and designated employees of the Company who are expected
relatives or with its subsidiaries which may have a potential to have access to an unpublished price-sensitive information
conflict with the interests of the Company at large. relating to the Company.

No penalties or strictures were imposed on the Company during 12. Auditor’s Certificate on Corporate Governance
the last three years by any Stock Exchanges, SEBI or any other
statutory authorities on any matters related to capital markets. As required by the provisions of Clause 49 of the Listing
Agreement, the Auditor’s Certificate is given as an Annexure to
The Company has in place a mechanism to inform the Board the Directors’ Report.
on risk assessment and minimisation procedures and periodic
review is conducted in order to ensure that Management controls 13. CEO and CFO Certification
risk through a properly defined framework.
As required by Clause 49 V of the Listing Agreement, the CEO
11. Code of Conduct and CFO certification on Financial Statements, Cash Flow
Statement and Internal Control Systems for financial reporting
Blue Dart has always adhered to the highest standards of quality for the year ended March 31, 2014, has been obtained from
and ethics while maintaining its leadership position in the express Mr. Anil Khanna, Managing Director and Mr. Yogesh Dhingra,
air and integrated transportation and distribution industry in the Chief Financial Officer and Chief Operating Officer and it has
country. The cornerstone of our success have been our people been incorporated in the Company’s Annual Report.
who are guided by the Company’s “Guiding Principles”.
14. Means of Communication
The Board of Directors of the Company laid down a Code of
Conduct for the Board Members and Senior Management Team The Quarterly, Half-yearly and Yearly results are published in
of the Company. The same has been posted on the website of The Economic Times and a regional language newspaper viz;
the Company. Maharashtra Times. The financial results and press releases
are also immediately posted on the Company’s website,
The Code of Conduct is a comprehensive document which www.bluedart.com.
articulates the Company’s expectations from its people, to reflect
the ethics and values of the organisation and resultantly earn the For information of the investors, the Company also publishes
goodwill of its customers and enhance its reputation. Notice of the Board Meeting in which financial results are
proposed to be approved by the Board of Directors in the national
All the Board Members and members of Senior Management newspaper, at least seven days in advance.
have affirmed compliance with the provisions of “Code of
Conduct’ for the year ended March 31, 2014. A certificate from The Quarterly, Half-yearly and Yearly results are published in
Mr. Anil Khanna, Managing Director confirming compliance the newspapers with adequate disclosures for information and
on the “Blue Dart Code of Conduct” has been attached to this knowledge of the shareholders /public at large. The Company do
Report. not have a system of intimating shareholders individually about
financial results, but, queries if any, are replied to, immediately.
Pursuant to the requirements of Securities and Exchange Board
of India (Prohibition of Insider Trading) Regulations, 1992, The Company also uploads “Investors Presentation” on the
as amended, the Company has adopted “Blue Dart Code of Company’s website viz; www.bluedart.com on a quartely basis.
Conduct for Prevention of Insider Trading” in the Equity Shares
of the Company. Mr. Tushar Gunderia, the Company Secretary, Management Discussion and Analysis Report forms an integral
acts as ‘Compliance Officer’ for administration of the Code in part of the Directors’ Report.
consultation with the Company’s Stakeholders Relationship

44 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

15. Details of compliance with mandatory requirements and The Company has in place the “Grievance Redressal Program”
adoption of non-mandatory requirements (GRP).The GRP can be availed by all the employees. The GRP
affirms an employee’s right to appeal on any issue through a
The Company has complied with all the mandatory requirements process of a systematic review by progressively higher levels
of Clause 49 of the Listing Agreement with the Stock Exchanges of Management. This process guarantees that any grievance or
and compliance with the non-mandatory requirements of clause issue raised by an employee is reviewed and addressed and
49 is as detailed hereunder: results into a decision on the grievance raised in accordance with
the guidelines and processes prescribed. No personnel of the
1. The Company has in place Nomination and Remuneration Company has been denied an access to the Audit Committee.
Committee, details of which are provided in this Report under
section viz; “Nomination and Remuneration Committee”. In the meeting of the Board of Directors of the Company held
on June 11, 2014, the Company has adopted a ‘Whistle Blower
2. The Company always endeavours to present an unqualified Policy’ as contemplated under the provisions of New Companies
financial statements. There are no audit qualifications in the Act, 2013. The Company is in the process of institutionalizing and
Company’s financial statements for the period under review. operating of Whistle Blower mechanism within the Organisation.

3. The Board Members are provided with all the necessary

documents/ reports and internal policies to enable them to
familiarise with the Company’s procedures and practices.

Periodic presentations are made at the Board and Board

constituted Committee Meetings pertaining to business
and performance updates of the Company, global business
environment, business strategies and risks involved.

4. Directors attend training programmes/ conferences on

relevant subject matters and keep themselves abreast of
the latest corporate, regulatory and industry developments.

5. Directors are completely briefed on all business related

matters, risk assessment and new initiatives proposed to be
adopted by the Company.

6. The Company is committed to maintaining the highest

standards of integrity, transparency and accountability. It
acknowledges that each employee of the Company has a
key role to achieve Organisational goals. Hence, it is Policy
of the Company to encourage employees to report on any
grievances or concerns to the Company Management, as
and when they have any reasons to suspect or question
certain practices.

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 45
 REPORT ON CORPORATE GOVERNANCE

16. General Shareholders Information

Annual General Meeting : Wednesday, July 23, 2014 at 4:30 p.m. at Hotel Hilton Mumbai International
Airport, Chancellor I, Sahar Airport Road, Andheri (East), Mumbai – 400 099.

Financial Year April 1 to March 31

Financial Calendar : Schedule of Board Meetings Date

(tentative and subject to change)
First Quarter ending June 30, 2014 July 23, 2014

Second Quarter & Half-year ending October 15, 2014

September 30, 2014

Third Quarter ending December 31, 2014 January 28, 2015

Last Quarter & Year ending March 31, 2015 May 8, 2015

Financial Calendar : Schedule of Audit Committee Meetings Date

(tentative and subject to change)
First Quarter ending June 30, 2014 July 23, 2014
Second Quarter & Half-year ending October 15, 2014
September 30, 2014
Third Quarter ending December 31, 2014 January 28, 2015
Last Quarter & Year ending March 31, 2015 May 8, 2015

Book Closure period July 16, 2014 to July 23, 2014 (both days inclusive)

Dividend Payment Date : July 25, 2014

Listing on Stock Exchanges : 1. BSE Limited.

2. The National Stock Exchange of India Limited.

(The Company has paid its Annual Listing fees to the above Stock Exchanges for the Financial Year 2014-2015)

Stock market Performance

Stock Code/Symbol : BSE : 526612

NSE : Symbol - BLUEDART

Series – EQ
ISIN : INE233B01017

46 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

Stock Market Data:

High and Low quotations of shares at Bombay & National Stock Exchange

Period (2013-2014) BSE NSE

High Low High Low
April – 2013 2,565.00 2,205.45 2,560.00 2,200.05
May – 2013 2,755.00 2,430.00 2,770.00 2,423.00
June – 2013 2,746.00 2,351.00 2,790.00 2,365.00
July – 2013 2,613.95 2,350.00 2,610.00 2,356.05
August – 2013 2,447.95 2,140.00 2,490.00 2,109.95
September – 2013 2,660.60 2,166.00 2,695.00 2,165.00
October – 2013 2,928.85 2,596.05 2,920.00 2,593.95
November – 2013 2,990.00 2,700.00 2,990.00 2,706.25
December – 2013 3,701.00 2,997.60 3,699.00 2,985.00
January – 2014 4,040.00 3,200.00 4,048.00 3,210.00
February – 2014 3,505.00 2,961.90 3,509.95 2,967.90
March – 2014 3,729.00 3,180.00 3,790.00 3,175.50

Stock Price Performance in comparison to the BSE Sensex:

4,000.00 25000
3,500.00
20000
3,000.00
2,500.00 15000
Share price

Sensex
2,000.00
1,500.00 10000

1,000.00
5000
500.00
0.00 0
4
3

14
3

14
3

13
3

3
3

’1
’1
r’1

’1

1
’1

’1

’1
’1

n’

b’
y’

g’

pt

ar
ay

ne

ov

ec
ct
Ap

Ja

Fe
Au
Ju

Se

M
M

D
Ju

Months ended (April 2013 to March 2014) Price

Sensex

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 47
 REPORT ON CORPORATE GOVERNANCE

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: +9122-2596 3838

Fax : +9122-2594 6969
Email : [email protected]

Share Transfer System : Share Transfers which are received in physical form are processed well within
the statutory prescribed period from the date of receipt, subject to documents
lodged being valid and complete. All share transfers are approved in the
Stakeholders Relationship Committee Meeting held once in a fortnight.

Distribution of Shareholding as on March 31, 2014

No of Shares No. of Shareholders % of Share Holders Shares held % of shares

1 - 500 5,357 94.08 401,196 1.69
501 - 1000 130 2.28 102,160 0.43
1001 - 2000 72 1.26 111,424 0.47
2001 - 3000 19 0.33 46,447 0.20
3001 - 4000 9 0.16 31,649 0.13
4001 - 5000 19 0.33 89,150 0.38
5001 - 10000 25 0.44 180,142 0.76
10001 - above 62 1.11 22,765,766 95.94
5,693 100.00 23,727,934 100.00

Categories of shareholders as on March 31, 2014

Category No. of Shareholders No of Shares held Voting Strength %

Promoter* 1 17,795,950 75.0000

Foreign Body Corporate 1 100 0.0004
Banks, Financial Institutions and Mutual Funds 44 1,509,762 6.3628
Individuals 5,199 954,007 4.0206
Companies 202 1,755,346 7.3978
NRIs and FIIs 153 1,700,123 7.1651
Clearing Member 93 12,646 0.0533
Total 5,693 23,727,934 100.000

* under two demat accounts

48 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 REPORT ON CORPORATE GOVERNANCE

Scheme of Arrangement approved by the Equity Shareholders by the requisite majority and
unanimously approved by the Unsecured Creditors of the Company.
During the year under review, the Board of Directors of the Company As required under law, results of voting were intimated to the Stock
in its meeting held on October 15, 2013 approved the `Scheme of Exchanges, posted on the Company website and displayed at the
Arrangement’ under the Provisions of Sections 391 and any other registered office of the Company.
applicable provisions of the Companies Act, 1956 and/or Companies
Act, 2013 (the “Scheme”) for issuance of unsecured, redeemable, non- Dematerialisation of Shares and Liquidity:
convertible, fully paid up debentures, by way of Bonus, to be allotted
out of Surplus in the Statement of Profit and Loss of the Company, Trading in the Company’s equity shares is compulsory in dematerialised
to the shareholders as viz; 7 Debentures under Series I Debentures, mode for all investors with effect from August 28, 2000. As on March
4 Debentures under Series II Debentures and 3 Debentures under 31, 2014, 23,602,916 Equity Shares of the Company representing
Series III Debentures respectively for every 1 (one) equity share of the 99.47% of the paid- up Equity Share Capital of the Company are in
Company held by the Shareholders on the Record date to be fixed for dematerialised mode.
this purpose. As Shareholders may be aware, dematerialisation of shares offers
After submitting requisite documents with BSE Ltd. (Designated Stock various advantages which inter-alia includes the following:
Exchange) (‘BSE’) and National Stock Exchange of India Ltd.,(‘NSE’), 1. No scope for any risk of loss, theft, or fraud with regard to
BSE and NSE vide their letter dated March 21, 2014 issued their ‘No share certificates.
Objection’ to the proposed scheme. The Company has initiated steps
for sanction of the said scheme as is required under the applicable 2. Bad deliveries are almost eliminated.
laws. Immediately, upon receipt of No Objection from the BSE and 3. Shorter settlements thereby enhancing liquidity.
NSE, Company Summons for seeking directions for convening
Meetings of Equity Shareholders and Unsecured Creditors were filed 4. No stamp duty on transfer of securities held in demat mode.
with the Hon’ble Bombay High Court on March 25, 2014.
5. No concept of Market Lots.
The Hon’ble Bombay High Court vide its Order dated May 2, 2014,
6. No requirement of lodging transfer deeds and lodging/
directed that a meeting of the (i) Equity Shareholders; and (ii)
dispatching transfer documents with the Company, thereby
Unsecured Creditors of the Company be convened on Friday, June
avoiding a lot of paperwork.
13, 2014 at 10:00 am and 1:00 pm respectively at Hotel Hilton Mumbai
Internation Airport, Andheri (East), Mumbai, for approval of the In view of the above advantages of dematerialisation of shares,
Scheme. Accordingly, Meetings of Equity Shareholders and Unsecured shareholders who still hold their equity shares in the physical form are
Creditors of the Company were held on June 13, 2014 for approval requested to get their shares dematerialised as soon as possible.
of the Scheme of Arrangement. The Scheme of Arrangement was duly

BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014 49
 REPORT ON CORPORATE GOVERNANCE

Outstanding GDR/ADR : NIL

Plant Location : 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 439 offices spread
across India.

Address for communication : Investors should address their correspondence to the Registrar &
Share Transfer Agents: M/s. Link Intime India Pvt. Ltd. at the
address mentioned hereinabove.

Contact Officials:

Mr. Ralph Gonsalves, Assistant Vice President – Corporate Registry

Mr. Vishal Punjabi, Sr. Associate Client Relations - Corporate Registry

Ms. Ashwini Nemlekar, Associate Client Relations - 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 : +9122 2839 6444

Ext. Nos. : 33422 or 33451

Email : [email protected]

[email protected]

Analyst Contact : Mr. Yogesh Dhingra - Chief Financial Officer and Chief Operating Officer
Mr. Rajesh Joshi, General Manager – Finance and Treasury

General Information Contact : Mr. Ketan Kulkarni, Head - Marketing, Corporate Communication &
Sustainability.

50 BLUE DART EXPRESS LIMITED | REPORT ON CORPORATE GOVERNANCE | ANNUAL REPORT 2013-2014
 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
March 31, 2014, as stipulated in Clause 49 of the Listing Agreements of the Company with stock exchanges in India.

The compliance of conditions of Corporate Governance is the responsibility of the Company’s 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. 055158
Place: Mumbai
Date : June 21, 2014

BLUE DART
BLUE EXPRESS
DART LIMITED
EXPRESS | AUDITORS’
LIMITED CERTIFICATE
| AUDITORS’ ONON
CERTIFICATE CORPORATE GOVERNANCE
CORPORATE | ANNUAL
GOVERNANCE REPORT
| ANNUAL 2013-2014
REPORT 2013-2014 51
 MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW economy. It employs over a million people in a direct or indirect

manner and also significantly contributes to the national exchequer
The neo-liberalization efforts of the past two and a half decades in terms of contributions to service and corporate tax.
have piqued the curiosity of the world towards opportunities in the
country. During this period, India has grown at twice the global REVIEW OF PERFORMANCE
rate; however the current prolonged slowdown in the global and
domestic macro-environment situation is a matter of grave concern. Inspite of a slowing GDP and a very tough macro-economic
environment, the Company has fought hard to ensure all initiatives
India’s logistics sector is expected to touch US$ 200 billion by under its ‘Grow India’ plans remained well on track. Blue Dart’s
20201. India’s consumption is expected to rise to US$ 3.6 trillion share in the Organized Air Express Market went up to 52% in 2013
by 20202. Agriculture, Housing, Manufacturing and Transport are and in the Organized Ground Express Market went up to 14.5% in
expected to be key industries that will drive growth in the Indian 20134 .
economy.
The Company posted ` 12,440 Lacs profit after tax for the year
On account of its unique position of having to service a market, ended March 31, 2014. Income from operations for the year ended
the sheer size of India, the logistics industry is expected to be March 31, 2014 was `193,415 Lacs.
a beneficiary of this growth. Compared to the overall logistics
industry, the express industry is niche with high levels of customer At Blue Dart, various cost saving measures such as Fuel
centricity, integration and automation. Surcharge Mechanism (FSM), Currency Adjustment Factor (CAF),
Diesel Surcharge Mechanism (DSM), reduction in working capital,
The express industry has a large number of players, including re-negotiation of real estate costs and attractive long term contracts
a sizeable number of small and medium players. The industry have contributed to maintaining our operating performance as well
caters to multiple segments as well as to individual customers by as the bottomline.
providing time bound services. Express delivery services are used
for various products, including documents like letters, applications, Amongst the various efforts undertaken by the organisation in
cheque books, credit cards, trade papers and non-documents both the air and ground express network, most notable have been
like electronic products, machine spare parts, trade samples and measures such as reduction of Operating Cost Per Move (OCPM),
equipments. The e-tailing segment is also expected to be a growth Operating Cost Per Kg (OCPK), Cost Per Kg (CPK), Sweating of
driver for the industry. Assets, better Return on Capital Employed and others.

The size of the Indian Organised Express Market (Air and Ground) Whilst staying focused on cost, the highly able and skilled
which is part of the overall logistics sector is estimated to be about management team has propelled the organisation in the direction
` 5,043 crores in 2013. Of the total Organised Express Market, of innovation and sustainability which ensure Blue Dart’s leadership
the Air and Ground Express Segment contributed about ` 2,237 in its space continues.
crores and ` 2,806 crores respectively3. Air Express has grown at The Company has posted strong CAGR across different aspects of
around 5% CAGR between 2011 and 2013 while Ground Express the business. In the period 2008 to 2013, the Company recorded
industry clocked a CAGR of about 8% in the same period. The CAGR of 17.2% in tonnage handled; 9.6% in shipments handled.
slower than expected pace of growth witnessed in the Organised
Express market is attributed to continued economic slowdown, Blue Dart carried over 1,263.96 lac domestic shipments and over
higher inflationary pressures and subdued sentiments. 9.11 lac international shipments weighing over 513,474 tonnes.
The CAGR for Air and Ground Express Industry are likely to remain The Company has consistently outperformed the Sensex
steady and grow at 5% and 8% respectively over the next couple of delivering close to 10 times returns on its acquisition price in the
years as per Management – Internal estimates. year 2005 by DHL Express (Singapore) Pte. Ltd. Blue Dart has
consistently generated high cash flows and delivered superior
The Express market is driven by High Value - Low Weight returns to shareholders with strong growth in net worth and market
products which do not have a safer alternate mode of transport, capitalization.
eg. the e-tailing segment which relies hugely on this industry.
Manufacturing and services growth will play a crucial role in further Blue Dart, a zero debt Company, continues to enjoy the highest
bolstering demand for Express services. credit ratings such as A1+ assigned by ICRA for Blue Dart’s
commercial paper / short-term debt program, ICRA has also
Apart from providing critical services and aiding economic growth, assigned AA (long-term rating) and A1+ (Ind) assigned by Fitch
the Express Industry makes a significant contribution to the Ratings for Blue Dart’s short-term program.
1. Economic Times, 30th July 2013 3. Internal estimates based on ATK TMS 2010 model
2. Economic Times, 12th June 2013 4. Internal estimates based on ATK TMS 2010 model

52 BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014
 MANAGEMENT DISCUSSION AND ANALYSIS

The key game changer remains Blue Dart’s air infrastructure A CUSTOMER CENTRIC BRAND
comprising a mixed fleet of Boeing 757 and Boeing 737 freighters
that offer Indian industry a payload of over 385 tonnes per night. Net Promoters Approach (NPA) is a tool adopted by our Company.
It is a Customer Loyalty measuring tool for “Complaint Handling”.
Blue Dart continues to strengthen its market share in the ground Touch points are also assessed through NPA. Customers who
express space with a fleet of 8,685 vehicles for delivery across the have registered their complaints are connected with by an external
Indian terrain. agency where they are asked to rate their satisfaction levels of a
complaint being handled on the scale of 0-10.
The Company has 439 facilities, 330 Blue Dart ‘One Retail’ stores
[548 stores including DHL Express (DHLE)] and a promised delivery A rating between 0-6 is considered as ‘Detractors’ which means the
by over 8,860 passionate Blue Darters. customer was unhappy with the way the complaint was addressed.
A rating score of 7-8 is considered as ‘Passives’ which means the
PRODUCTS customer was satisfied with the way the complaint was addressed.
Blue Dart is the premium express market leader in India with the A rating score of 9-10 is considered as ‘Promoters’ which suggest
widest range of services. The Company offers services in air, that the customer was satisfied and happy with the way the
ground and multi modes in day definite and time definite delivery complaint was addressed. After the rating, customers are called
schedules. to find out the areas of improvement, feedback is provided to each
At the core of the product mix strategy is the constant effort to and every employee who handled the complaint to take immediate
develop specific solutions for various industries. The key domestic corrective actions to avoid any recurrence of such gaps that led to
express offerings include Time Definite Solutions (Domestic a low rating being given. The feedback is divided into two parts:
Priority 1030, Domestic Priority 1200, Dart Apex 1200) and Day Quick Wins - Corrective Action can be immediately initiated and
Definite Solutions (Domestic Priority, Dart Apex, Dart Surfaceline). First Choice Initiatives - which need process improvements. There
Packaging Solutions include Express Pallet (Air and Ground) and is a rewards and recognition system in place to recognize the
Smart Box (Air and Ground). The Company also offers Cargo employees who receive maximum ‘Promoters’ ratings given by the
Solutions like Airport to Airport, Interline and Charters besides customer.
offering Festive and Student Solutions like Rakhi Express, Mango During the year, the Company further strengthened its First Choice
Express, Student Express etc. methodology, aimed to position the brand as the ‘Provider of
Blue Dart also offers industry specific solutions like Temperature Choice’, ‘Employer of Choice’ and ‘Investment of Choice’. The First
Controlled Logistics (TCL), Dart SurfacelinePlus (DSP), Point to Choice portfolio offers several elements supporting a culture for
Point (P2P) and a host of value added services like Demand Draft continuous improvement based on the ACT (Accelerating Change
on Delivery (DOD), Freight on Delivery (FOD), Freight on Value and Transition) methodology, DMAIC, an acronym for Define,
(FOV), and Cash on Delivery (COD) etc. Measure, Analyze, Improve and Control is a data based five phase
model for improving quality by reducing waste and improving
The Company’s global presence is established through DHL flexibility and reliability in a process.
Document Express (DOX), DHL Worldwide Package Express
(WPX) and a wide range of packaging solutions. The service offers CREATING ENTRY BARRIERS
access to 220 countries and territories worldwide. DHL Import Blue Dart’s brand equity, a measure of the customer’s loyalty
Express is a unique single-window importing service that takes care towards the brand is the highest in the market. The brand is
of all importing needs by offering door-to-door convenience. Duties associated with international standards, reliability, trustworthiness,
& Taxes Paid (DTP), Express Pallet, Shipper Interest Insurance hi-technology, strong corporate social responsibility and customer
(SII) and Express Easy-Student are some of the other offerings. centricity.
The Company has recently introduced a securitised service - Critical The Company stands for value, quality, speed, efficiency,
Express to cater to the huge domestic need for safe movement of responsiveness and service experience. Blue Dart’s service culture
items like passports, tenders and other securitised items. During is further bolstered through the quality program – First Choice
the year, Blue Dart also launched the successful International Time and initiatives such as Net Promoter Score and Key Account
Definite offering of DHLE to all its customers. Management programs which serve as means of listening closely
to the voice of the customer, and acting on it to deliver delight in a
process driven manner.

BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014 53
 MANAGEMENT DISCUSSION AND ANALYSIS

The brand has been successfully creating strong exit barriers for its Express deliveries are the linchpin of a e-tailer’s success. Cash
customers with end-to-end express services covering a document on Delivery is the most preferred payment mode for the e-tailing
to a charter load within India and through a varied service offering consumer. In a short period of time, Blue Dart has established itself
through the DPDHL group companies – DHL Express, DHL Supply as the preferred service provider and currently holds the dominant
Chain and DHL Global Forwarding. market share and e-tailing forms one of the fastest growing and top
industry segments for the Company. The Company has invested in
Blue Dart’s own dedicated aviation and ground infrastructure is widening reach, fastest remittance of cash collected during delivery,
unique and one of its kind in India. vendor pickups and registration, reverse logistics, intelligent API
Advanced technology deployment across products, services, integration and regular reconciliation of Cash on Delivery amount.
customers and internal processes have further enhanced customer In terms of opportunities, the Company is continuously bolstering
delight. its efforts to further enhance reach, develop a same day delivery
Blue Dart has created distinct market differentiation in the service service and is also exploring cross border deliveries & e-fulfilment.
to e-tailing companies through advanced automation like field Air Express remains the preferred option for reliability, speed and
pickup process on handheld devices, credit card payments on security given the nature of goods it transports. Ground Express too
field, proactive SMS notification on “Out for Delivery”, smarter offers huge opportunities due to an increased affluence expanding
reverse pickup registration and improved Net Service Levels and into Tier II and III towns, which are emerging as important nodes of
Operations Service Quality Monitors. production, consumption and distribution.
Blue Dart has the largest retail footprint in the country. The 548 The growth of the industry is largely based on the general economic
Blue Dart – DHL ‘One Retail’ stores give access to every segment situation in the country and any upswing in economic activity will
of the potential market, an opportunity to experience Blue Dart’s lead to increase in domestic and international trade, creating
express delivery services within the country and internationally incremental demand for the express industry.
through DHLE.
On the flip side, an economic slowdown could suppress demand
A RESPONSIBLE CORPORATE CITIZEN and create pricing pressure. The Goods and Service Tax (GST)
Living Responsibility or in common parlance, ‘Corporate regime, when implemented, is expected to give a fillip to the
Responsibility’ is a core element of Blue Dart’s corporate strategy. logistics industry as it is expected to reduce complexities and bring
As a socially responsible corporate, Blue Dart’s commitment in efficiencies in movement of goods across state borders and
towards community causes has been unwavering since its inception boost the overall demand scenario in the Indian economy.
in 1983. Blue Dart, as a responsible corporate citizen believes that The industry will continue to remain a major employer in the country
giving back to society is not just ‘corporate social responsibility’, but as every player expands in the wake of growth, thus creating direct
a duty towards its communities and the environment from where it and indirect employment.
draws its resources. More than ‘responsibility’ it is ‘sustainability’
that is its cornerstone. Although on an absolute basis, the logistics spend in India is low,
on a relative basis and as a percentage of GDP, it is high as against
In line with Deutsche Post DHL’s ‘Living Responsibility’, Blue Dart USA and Germany, two of the most developed economies.
takes its responsibility to society, communities, employees and
the environment seriously. Under this credo, Blue Dart (along with Resultantly, there are plenty of opportunities for growth. In order
DP DHL) focuses its corporate responsibility on environmental to meet and sustain the forecasted growth, the industry is likely to
protection (GoGreen), disaster management (GoHelp) and further invest in its infrastructure and systems.
championing education (GoTeach).
RISKS AND CONCERNS
OPPORTUNITIES AND FUTURE OUTLOOK
The industry faces infrastructure issues, high operating costs,
E-tailing bottlenecks in state border clearance and other disadvantages like
the proposed Postal Bill, Carriage by Road Act, Local Body Tax etc.
The rapidly growing internet penetration and usage is the key
growth driver of e-commerce in India. The country has over 250 Economic Factors
e-tailing portals. The Indian e-tailing market is estimated to grow
at 52% CAGR till 20205. E-tailing contributes 50% of non-travel Weak domestic and global demand and India’s inability to move
e-commerce in India and is estimated at Euro 1.3 billion6 in 2013. forward on policy initiatives over a fairly long period has now
resulted into an economic slowdown.
5. KPMG e-fulfillment Study
6. IAMAI

54 BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014
 MANAGEMENT DISCUSSION AND ANALYSIS

The Indian economy7 grew at 4.7% during FY2014, with the fourth FSM has been in place since 2002 and has been an effective
quarter growing at 4.6%, marginally higher than the 4.4% recorded mechanism to mitigate risks arising out of fuel price volatility. The
in the same quarter last year. This marks the second consecutive CAF introduced since September 1, 2013 has aided the Company’s
year of sub-5% growth; the worst slowdown in more than a quarter efforts to minimize the impact of currency fluctuation on its financial
of a century. Industry continues to be the primary laggard registering performance.
growth of mere 0.35% during FY2014.
Under these systems, the Company’s margins will be shielded
Services however, surprised on the upside boosted by higher from both, the currency and fuel price fluctuation to the extent of
government spending and robust export growth. Agriculture the variable component included in the contracts. This is turning
disappointed with registering a growth of 4.71% despite the boost out to be a win-win situation for both the Company as well as the
from normal monsoons. customer from the point of being able to maintain its margins and
business growth.
The Express industry is affected by economic factors like macro-
economic growth, inflation, crude oil rates, interest rates, foreign Despite these challenges, Blue Dart performed reasonably well on
exchange rates, investments, tax rates etc. These affect the all fronts and capitalized on its strong brand equity and focused
demand and cost structure. growth plans, customer loyalty, service quality and strong working
with group companies.
As per the India Development Report of the World Bank published
in October 2013, the Indian Economy is expected to witness Government Policy
gradual growth over the next couple of years. The improved
outlook is primarily on account of improving macroeconomic - Postal Bill :
fundamentals, reforms push, sustained decline in Current Account The New Postal Bill which was proposed earlier, which also covers
Deficit and continued measures to improve fiscal sustainability and the Express Industry, was withdrawn due to the opposition from
business environment. In FY2015, economic growth could step up stakeholders. However, the Postal Department had revived the Bill
further as manufacturing activity accelerates and new and existing with the same provisions which were in existence in the previous
investment projects get on track. Probably this continued growth Bill. The Postal Bill, if implemented, is likely to have an adverse
momentum over FY2015 and FY2016 will act as a catalyst for impact on the express industry, resulting in market share loss due
growth in businesses including logistics. to restrictions and higher service charges.
Foreign Exchange Volatility - Carriage by Road Act, 2007 and Carriage by Road Rules 2011 :
The Aviation Turbine Fuel (ATF) price with its high price volatility As few of the provisions of Carriage by Road Act, 2007 and
and multiple rates across states due to different tax rates directly Carriage by Road Rules, 2011 could impact the express industry,
impacts operating margins and constitutes about more than 20 per the Express Industry Council of India (EICI), on behalf of its
cent of the Company’s total operating costs depending upon the members has made representations before the ‘Ministry of Road
network or type of fleet. Transport and Highways’ and has requested exclusion of ‘courier
Rupee depreciation impacts the aviation industry significantly as companies’ from the definition of ‘Common Carrier’. The Ministry
over 70% costs are in US Dollars. However, it’s not just the cost of has responded to EICI that the representations are being reviewed
ATF that has been impacted but also those of aircraft lease and & examined by it.
maintenance, associated overheads like petrol and diesel costs, Regulatory Hurdles
computer and software license costs, annual maintenance contract
(AMC) and other allied input costs. Thus with the Indian Rupee The industry faces a threat from the implementation of long standing
plunging to a record low of ` 68.8 per US Dollar8 its adverse impact restrictive regulations.
was witnessed across industries and companies including Blue
Dart. Furthermore, the rising inflation on both fronts, the Wholesale The inter-state movement of goods in India is subject to multiple
Price Inflation (WPI) as well as the Consumer Price Inflation (CPI) taxes and clearances, which are unique in each state, resulting
contributed to increased overall costs of operations. However, in considerable paperwork and transactions in the inter-state
your Company was able to arrest the dual impact of rise in prices movement of goods and increase in transit time. This leads to
and Rupee depreciation due to measures undertaken in FY2014. considerable delays and affects overall operations.
Of these, notable has been the introduction of customer friendly Customs clearance also remains an area of concern since few
mechanisms such as Currency Adjustment Factor (CAF), Fuel shipments require additional NOCs from the regulatory authorities.
Surcharge Mechanism (FSM) and Diesel Surcharge Mechanism (DSM).
7. CMIE- Centre for Monitoring Indian Economy
8. Moneycontrol.com Aug 2013

BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014 55
 MANAGEMENT DISCUSSION AND ANALYSIS

The cumbersome checking process and verification of documents express services delivering shipments of e-tailers only with limited
makes the process inefficient and results into increased operational geographical reach.
costs and delays.
The third type comprises captive / outsourced manpower in which
INFRASTRUCTURE ISSUES e-tailing players have set up their own logistics primarily within
metro locations. These are initiatives undertaken towards cost
Air Infrastructure control.
The operating cost at most airports across India has also multiplied INTERNAL CONTROLS AND ITS ADEQUACY
manifold without any significant improvement or differentiation in
services offered, post the privatisation of major airports. Across industries, internal process control and systems play a
critical role in the health of a Company. An effective system of
The air infrastructure in the country continues to be inadequate internal controls form a keystone necessary for building, maintaining
in terms of cities covered and cargo handling capacities leading and improving shareholder’s value and helps to enhance the
to significantly higher dwell time as compared to international overall quality of the business and enterprise. Blue Dart remains
standards. Insufficient aircraft bays, truck docking stations, limited committed to ensuring an effective internal control environment that
space for express terminals, clearance processes lead to delays provides assurance on the efficiency of operations and the security
and impact operational cost. of assets. Blue Dart has a sound internal control system to ensure
The Aviation Turbine Fuel (ATF) price with its high price volatility that all assets are protected against loss from unauthorised use. All
and multiple rates across states due to different tax rates directly transactions are recorded and reported correctly. The Company’s
impacts operating margins. internal control system is further supplemented by internal audits
carried out by the in-house internal audit team and the outsourced
Road Infrastructure audit firm, KPMG. Well-established and robust internal audit
processes, both at business and corporate levels, continuously
While a lot of efforts are underway to improve the Indian road monitor the adequacy and effectiveness of the internal control
infrastructure, the average speed of travel still remains dismally environment across the Company and the status of compliance with
low with an average speed of 30kms/hour as compared to world operating systems, internal policies and regulatory requirements.
averages of 80kms/hour in advanced economies. In addition, road
transport has to pass through numerous checkpoints which impact The Audit Committee of the Board addresses significant issues
the transit time and efficiency. The need to use smaller vehicles raised by both the Internal Auditors and Statutory Auditors.
during day hours in cities leads to an increase in operating cost per The Company also conducts Risk Assessment Workshops to
move. With increased budgeted outlays, if infrastructure reforms define and identify what the Company’s most significant risks
are implemented, it could have a significant impact on the overall are and how those risks can be mitigated. The members of the
logistics segment. Senior Management actively participate and deliberate in the risk
workshops.
COMPETITION
HUMAN RESOURCES: STRATEGY IN LINE WITH BUSINESS
The organised and unorganised segments have their own share
of competition and unique positioning and challenges. The smaller Express service is labour intensive and creates employment for
and regional players have limited network and operate in specific a large number of people directly and indirectly. The industry has
regions. These players also act as agents for larger players and been grappling with issues such as lack of skilled manpower.
price plays a major differentiator. The larger players have wider
national and global network and systems. Brand Equity plays a In the background of such a challenge, Blue Dart has been built
major role to garner market share and charge premium. on the foundation of people-first philosophy, resulting in it being
recognized as one of India’s top 10 Best Companies To Work For
The rise of the e-tailing industry has also resulted into the sprouting and ranked 1st in the transportation sector by the Great Places To
of three distinct types of express logistics solutions in India. Express Work in association with The Economic Times.
companies like Blue Dart offer the widest solutions to e-tailiers such
as API integration, proof of delivery, consumer verification and data This employer of choice position is a result of an overwhelmingly
validation. people-focused vision. Blue Dart views the HR function as the
support system for its business growth and as a crucial value
The second type consists of dedicated express service providers addition towards meeting organizational goals through proactive
delivering e-tailing shipments only, those that offer niche, dedicated business partnership.

56 BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014
 MANAGEMENT DISCUSSION AND ANALYSIS

Pursuant to the Sexual Harassment of Women at Workplace building consensus by getting people to agree on the existing
(Prevention, Prohibition & Redressal ) Act, 2013 and rules made problems, launching improvement activities, achieving goals at
thereunder, the Company has, during the year, rolled out a policy the desired speed by being personally engaged in the activity and
for prevention of Sexual Harassment in the Company. checking regularly how much the teams have progressed.

ORGANISATION HEALTH AND EMPLOYEE MOTIVATION AND PERFORMANCE APPRAISAL

MORALE
Motiv-8, the online performance management is used to assess the
In 2013, 99% of eligible employees participated in the annual performance and potential for all the executive personnel in terms
Employee Satisfaction Survey (ESS). The mean satisfaction score of their key result areas, competency framework and manager’s
for the year 2013 is 4.60. recommendation on the individual developmental plan (IDP) for
their career growth. The appraisals for the assessment period of
‘Pride for Working in Blue Dart’ continues to rank highest with a January-December 2013 were held successfully online covering
score of 4.80 and ‘My future in Blue Dart’ scored 4.68. around 2500 executives. The key talent retention rate in 2013 also
Besides the above, few other parameters such as ‘Job secure stood at 97%, which was an improvement over 2012 which was
with good performance’, ‘BDE does a good job for customers’ and 86%.
‘Working in BDE is good for me’ also ranked high. MANAGEMENT TRAINEE PROGRAMME
The high score on Pride for working in Blue Dart (96%), Employee 35 Management Trainees were inducted in the company to
engagement score (94.55%) and Active Leadership by Managers strengthen the future leadership pipeline in sales and operations and
(93.89%) reflects very good organizational health, employee they have been successfully absorbed in the company in January
commitment, motivation and morale, the key drivers of customer 2013 post completion of their training. They have been assigned
satisfaction & organizational excellence which continues to position various operational and revenue roles. The overall retention rate
Blue Dart as one of the top 10 best companies to work for. is 80%. The Management has received good feedback about their
BUILDING A STRONGER EMPLOYER OF CHOICE BRAND performance and assimilation in the organizational culture. The
Company continues to groom and nurture them with regular review,
Performance Dialogue Maps, aimed to align the Company’s guidance and mentoring support.
daily activities with its long term goals and ensure that the Key
Performance Indicators are linked to those goals while ensuring that BLUE DART MENTORING PROGRAMME
targets are achieved. Performance Dialogue Maps enable teams to The Company’s Senior Management and key managers continue
understand their current performance and how it contributes to the to drive the mentoring initiatives for the management trainees and
overall target achievement of the unit, it enables managers to react other new recruits especially in key roles and handhold them for
on deviations in a timely manner and predict the degree of overall exposure and perspectives about the Company’s functioning,
target achievement. This aids creation of a platform for continuous culture and values. Enhance comfort levels, remove apprehensions
improvement and conforms to a Kaizen culture. and difficulties faced by the new entrant and create a culture of
The Company introduced another innovative methodology – continuous learning and development which in turn will result in
‘5S’ for creating and maintaining a well organized, clean, highly employee retention and engagement.
effective and a qualitative workplace. The results are an effective The above is being actualized through the pool of Mentors created
organization of the workplace, elimination of losses connected with which included Managers, Senior Managers, Vice Presidents and
failure and breaks, improvement in the quality of work and safety Senior Vice Presidents, including the Managing Director.
of workers.
TRAINING AND DEVELOPMENT
The name 5S is an acronym derived from five Japanese words
which mean - Seiri (sort), Seiton (set in order), Seiso (shine), The Company recorded an average of around 2 training man days.
Seiketsu (standardize), Shitsuke (sustain)
Some of the Key Soft Skill Training and Technical Trainings done
‘GEMBA’ is a Japanese term which means ‘the real place, the during the year were:
real thing, the real people’. It literally means a place where ‘value
is created’. Managers at all levels are encouraged to be the driving • Delivering Smiles, the service spirit
force for continuous improvements by understanding the process, • Dangerous Goods and Radioactive – Train the Trainer
developing their own judgment about improvements to be made,

BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014 57
 MANAGEMENT DISCUSSION AND ANALYSIS

• Counter Handling see value in the brand through manifestations in areas like equity in
rewards, reliable, caring and impartial management. On a continuous
• Dangerous Goods Regulation and regular basis, employees also participated in various employee
engagements around festivals, national events, sports, talent contest
• Fire Fighting and Security
etc.
• Package Handling
EMPLOYEE RECOGNITION
• Personal Effectiveness
7 employees were conferred the Employee of the Year award for
• Products their outstanding performance while 3 employees were conferred
the Outstanding Sales Performer award. 1024 employees were
• Effective Business Communication awarded the on-the-spot Bravo award by individual managers
for excellent work. 21 employees were awarded the prestigious
• Time Management
Super Darter award for achievements beyond the call of duty. The
• Effective Presentation Skills Company is proud that 754 Blue Darters joined the True Blue club,
on completion of 5 years of service.
• Conflict Management
GREAT PLACES TO WORK RECOGNITION
The Company conceptualized and introduced an integrated
“New Age Leadership development programme” i.e Prarambh Blue Dart participated in Great Places to Work study conducted
(Supervisory Development), Neev (Front Line OPS Executive by Great Places to Work Institute, India in collaboration with The
Development) and Uddan (Managers Development) in 2013. Economic Times in 2012-13 and has been ranked as one of the Top
Out of this, Prarambh - a 2 day intensive training programme for 10 Best Companies to work for (10th Rank) and 1st in the transport
supervisory development was launched through “Train the Trainer industry. This is a proud and great recognition for Blue Dart to
model”. Out of 900 Operation supervisors, 482 have been trained be featured as one of the top 10 companies to work for in which
in 2013. more than 550 companies including Multinationals and Public
Sector participated. This confirms the people centric policies and
Besides, to continuously develop the customer service capability,‘ practices, organisational culture and values and able leadership.
Magic of Service Excellence’ , a customized programme for Blue
Dart customer service contact centre executives was conducted AWARDS AND RECOGNITIONS
covering 130 executives.
Blue Dart is undoubtedly the most awarded Company in its category
EMPLOYEE COMMUNICATION and perhaps the country for consistently outperforming competition
and offering customer value in terms of its brand value, service
To communicate, share and align employees on organisational plans, orientation, products and services, financial performance, corporate
business performance, policies, processes, initiatives and strategies governance, management leadership and social responsibility.
for the future, the Team Briefing sessions by the Managing Director
with the Senior Management Team were held periodically. 10 Team CAUTIONARY STATEMENT
Brief sessions were held in the year 2013. This initiative was very well
received by the employees. The statement forming part of this Report may contain certain
forward looking remarks with the meaning of applicable
To further re-inforce the communication, HR conducts Open House Securities Law and Regulations. Many factors could cause
sessions for front line staff on regular basis. The open house sessions the actual results, performances, or achievements of the
are conducted every quarter at all the locations and service centers of Company to be materially different from any future results,
Blue Dart. These open house sessions allow employees to express performances, or achievements. Significant factors that
their concern areas which affect their work life, morale and motivation could make a difference to the Company’s operations include
for solution/clarification. A total of 405 Open Houses were conducted domestic and international economic conditions, changes in
in the year 2013.
government regulations, tax regime and other statutes.
CULTURE BUILDING

The Company continues to invest in enhancing and spreading a

strong service culture. All efforts were put in to ensure that employees

58 BLUE DART EXPRESS LIMITED | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2013-2014
 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, Chief Financial Officer 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 March 31, 2014 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 Company’s 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 Company’s 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 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 Company’s internal control system over financial reporting.

Anil Khanna Yogesh Dhingra

Managing Director Chief Financial Officer &
Chief Operating Officer
Mumbai, May 9, 2014

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, June 21, 2014

BLUE DART EXPRESS LIMITED | CEO AND CFO CERTIFICATION | ANNUAL REPORT 2013-2014 59
 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF BLUE DART EXPRESS LIMITED

Report on the Financial Statements

1. We have audited the accompanying Financial Statements of Blue Dart Express Limited (the “Company”), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have signed under reference to this report.

Management’s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the preparation of these Financial Statements that give a true and fair view of the financial
position, financial performance and Cash Flows of the Company in accordance with the Accounting Standards notified under the Companies
Act, 1956 (the “Act”) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted our audit in accordance with
the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India.
Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the Financial Statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the Financial Statements. The
procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the Financial
Statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the
Company’s preparation and fair presentation of the Financial Statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the Financial Statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying Financial Statements
give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by ‘the Companies (Auditor’s Report) Order, 2003’, as amended by ‘the Companies (Auditor’s Report) (Amendment) Order,
2004’, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the
“Order”), 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.

8. As required by section 227(3) of the Act, 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 purpose
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;

60 BLUE DART EXPRESS LIMITED | INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014
 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF BLUE DART EXPRESS LIMITED

(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of
account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013; and

(e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Neeraj Gupta
Place: Mumbai Partner
Date: May 9, 2014 Membership Number: 055158

BLUE DART EXPRESS LIMITED | INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014 61
 ANNEXURE TO AUDITORS’ REPORT
Referred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of Blue Dart Express Limited on the Financial
Statements as of and for the year ended March 31, 2014
1. (a) The Company is maintaining proper records showing full the balance tranches is repayable over seven years with
particulars, including quantitative details and situation, of the first two years as moratorium. The party is regular in
fixed assets. repaying the principal amounts as stipulated.
(b) The fixed assets are physically verified by the Management (d) In respect of the aforesaid loans, there is no overdue
according to a phased programme designed to cover some amount more than Rupees One Lac.
items of assets every year, some items once every two
(e) The Company has not taken any loans, secured or
years and the rest once every three years, basis the cost
unsecured, from companies, firms or other parties covered
threshold specified by the Management for this purpose,
in the register maintained under Section 301 of the Act.
which, in our opinion, is reasonable having regard to the
Therefore, the provisions of Clause 4(iii)[(f) and (g)] of the
size of the Company and the nature of its assets. Pursuant
said Order are not applicable to the Company.
to the programme certain fixed assets covered by the
program have been physically verified by the Management 4. In our opinion, and according to the information and explanations
during the year, and no material discrepancies between given to us, there is an adequate internal control system
the book records and the physical inventory have been commensurate with the size of the Company and the nature of
noticed. its business for the purchase of inventory and fixed assets and
for the sale of services. Further, on the basis of our examination
(c) In our opinion and according to the information and
of the books and records of the Company, and according to
explanations given to us, a substantial part of fixed assets
the information and explanations given to us, we have neither
has not been disposed of by the Company during the year.
come across, nor have been informed of any continuing failure
2. (a) The inventory of packing and stationery consumables to correct major weaknesses in the aforesaid internal control
has been physically verified by the Management during system.
the year. In our opinion, the frequency of verification is
5. (a) According to the information and explanations given to us,
reasonable.
we are of the opinion that the particulars of all contracts
(b) In our opinion, the procedures of physical verification of or arrangements that need to be entered into the register
inventory followed by the Management are reasonable and maintained under section 301 of the Act have been so
adequate in relation to the size of the Company and the entered.
nature of its business.
(b) In our opinion and according to the information and
(c) On the basis of our examination of the inventory records, explanations given to us, the transactions made in
in our opinion, the Company is maintaining proper records pursuance of such contracts or arrangements and
of inventory. The discrepancies noticed on physical exceeding the value of Rupees Five Lacs in respect of any
verification of inventory as compared to book records were party during the year have been made at prices which are
not material. reasonable having regard to the prevailing market prices at
the relevant time except to the extent of ` 62,562 (in lacs)
3. (a) The Company has granted unsecured loans and inter-
in respect of air charter service cost where we are unable
corporate deposits to a party covered in the register
to comment as there are no comparable market prices
maintained under Section 301 of the Act. The maximum
available, being services of specialized nature.
amounts involved during the year aggregated to ` 23,506
(in lacs) and ` 6,810 (in lacs) respectively, and the year- 6. The Company has not accepted any deposits from the public
end balance aggregated to ` 19,499 (in lacs) and ` Nil, within the meaning of Sections 58A and 58AA of the Act and the
respectively. There are no firms/other parties covered in rules framed there under.
the register maintained under section 301 of the Act.
7. In our opinion, the Company has an internal audit system
(b) In our opinion, the rate of interest and other terms and commensurate with its size and the nature of its business.
conditions of such unsecured loans and inter-corporate
8. The Central Government of India has not prescribed the
deposits are not prima facie prejudicial to the interest of
maintenance of cost records under clause (d) of sub-section (1)
the Company.
of Section 209 of the Act for any of the products of the Company.
(c) The Company to whom unsecured loans and inter-corporate
9. (a) According to the information and explanations given to us
deposits has been granted, as referred to in (a) above, has
and the records of the Company examined by us, in our
been regular in the payment of interest as stipulated. In
opinion, the Company is generally regular in depositing
respect of the aforesaid loans which have been granted in
undisputed statutory dues in respect of employees’ state
tranches, the principal amount for one tranche is repayable
insurance, income tax and other material statutory dues
over three years with the first year as moratorium and for

62 BLUE DART EXPRESS LIMITED | ANNEXURE TO AUDITORS’ REPORT | ANNUAL REPORT 2013-2014
 ANNEXURE TO AUDITORS’ REPORT
Referred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of Blue Dart Express Limited on the Financial
Statements as of and for the year ended March 31, 2014
though there has been a slight delay in a few cases, and is 14. In our opinion, the Company is not dealing in or trading in shares,
regular in depositing undisputed statutory dues, including securities, debentures and other investments. Accordingly, the
provident fund, investor education and protection fund, provisions of Clause 4(xiv) of the Order are not applicable to the
wealth tax and service tax with the appropriate authorities. Company.
As informed to us, sales tax, customs duty and excise duty
15. In our opinion, and according to the information and explanations
are not applicable to the Company for the current year.
given to us, the terms and conditions of the guarantees given
(b) According to the information and explanations given to us by the Company, for loans taken by its associate company
and the records of the Company examined by us, there from banks and financial institutions, considering the service
are no dues of income tax, wealth tax and service tax agreement between the two companies, is not prejudicial to the
which have not been deposited on account of any dispute. interest of the Company.
As informed to us, customs duty and excise duty are not
16. The Company has not raised any term loans. Accordingly, the
applicable to the Company for the current year. In respect
provisions of Clause 4(xvi) of the Order are not applicable to the
of sales tax, as referred to in Note 32 to the attached
Company.
Financial Statements, during the year, the Company has
received notices and an order under Kerala VAT Act, 2003 17. According to the information and explanations given to us and
(the “VAT Act”) proposing penalties amounting to ` 909 (in on an overall examination of the balance sheet of the Company,
lacs) on the grounds that the Company is liable to pay VAT we report that the no funds raised on short-term basis have
on moneys collected for delivering goods in the state of been used for long-term investment.
Kerala and that the Company is acting as a selling agent 18. The Company has not made any preferential allotment of shares
of its customers. The Company believes that VAT is not to parties and companies covered in the register maintained
applicable to it and therefore not leviable. under Section 301 of the Act during the year. Accordingly, the
10. The Company has no accumulated losses as at March 31, 2014 provisions of Clause 4(xviii) of the Order are not applicable to
and it has not incurred any cash losses in the financial year the Company.
ended on that date or in the immediately preceding financial 19. The Company has not issued any debentures during the year
period. and does not have any debentures outstanding as at the
11. As the Company does not have any borrowings from any beginning of the year and at the year end. Accordingly, the
financial institution or bank nor has it issued any debentures as provisions of Clause 4(xix) of the Order are not applicable to the
at the balance sheet date, the provisions of Clause 4(xi) of the Company.
Order are not applicable to the Company. 20. The Company has not raised any money by public issues during
12. The Company has not granted any loans and advances on the the year. Accordingly, the provisions of Clause 4(xx) of the
basis of security by way of pledge of shares, debentures and Order are not applicable to the Company.
other securities. Therefore, the provisions of Clause 4(xii) of the 21. During the course of our examination of the books and records
Order are not applicable to the Company. of the Company, carried out in accordance with the generally
13. As the provisions of any special statute applicable to chit fund/ accepted auditing practices in India, and according to the
nidhi/mutual benefit fund/societies are not applicable to the information and explanations given to us, we have neither come
Company, the provisions of Clause 4(xiii) of the Order are not across any instance of material fraud on or by the Company,
applicable to the Company. noticed or reported during the year, nor have we been informed
of such case by the Management.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Neeraj Gupta
Place: Mumbai Partner
Date: May 9, 2014 Membership Number: 055158

BLUE DART EXPRESS LIMITED | ANNEXURE TO AUDITORS’ REPORT | ANNUAL REPORT 2013-2014 63
 Balance Sheet as at March 31, 2014

Note As at March As at March

31, 2014 31, 2013
in ` Lacs in ` Lacs
EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS
Share Capital 3 2,376 2,376
Reserves and Surplus 4 61,153 62,593
63,529 64,969
NON-CURRENT LIABILITIES
Deferred Tax Liabilities (Net) 5 1,754 1,486
Long-term Provisions 6 916 940
2,670 2,426

CURRENT LIABILITIES
Trade Payables 7 10,588 7,288
Other Current Liabilities 8 11,700 8,791
Short-term Provisions 9 4,589 20,541
26,877 36,620
TOTAL 93,076 104,015
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Tangible Assets 10 18,773 18,248
Intangible Assets 10 3,999 3,770
Capital Work-in-Progress 112 486
Intangible Assets under development 734 742
23,618 23,246
Non-Current Investments 11 1,977 1,977
Long-term Loans and Advances 12 23,195 26,782
Other Non-Current Assets 13 43 26
25,215 28,785
CURRENT ASSETS
Inventories 14 272 235
Trade Receivables 15 26,672 22,721
Cash and Bank Balances 16 10,593 23,649
Short-term Loans and Advances 17 6,702 5,354
Other Current Assets 18 4 25
44,243 51,984
TOTAL 93,076 104,015
The accompanying notes are an integral part of these financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

64 BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 STATEMENT OF Profit and Loss for the YEAR ENDED March 31, 2014

Note Year Ended 15 Months Ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
REVENUE
Revenue from Operations 19 193,415 216,651
Other Income 20 4,197 3,941

Total Revenue 197,612 220,592

EXPENSES
Freight, Handling and Servicing Costs (Net) 21 132,729 141,023
Employee Benefits Expense 22 26,485 29,828
Finance Costs 23 3 1
Depreciation and Amortisation Expense 24 2,710 3,448
Other Expenses 25 16,948 19,170

Total Expenses 178,875 193,470

PROFIT BEFORE TAX 18,737 27,122

Tax Expense:
Current Tax 6,038 8,594
Deferred Tax 268 (338)
Taxation in Respect of Earlier Years (9) -

PROFIT FOR THE YEAR/PERIOD 12,440 18,866

Earnings Per Equity Share [Refer note 26]
[Nominal value of share ` 10 each] (Previous Period - ` 10)
Basic Earnings Per Share (in `) 52.43 79.51
Diluted Earnings Per Share (in `) 52.43 79.51

The accompanying notes are an integral part of these financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 65

 Cash Flow Statement for the YEAR ENDED March 31, 2014

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
A. Cash flows from Operating activities:
Profit before Taxation 18,737 27,122
Adjustments for:
Depreciation and Amortisation Expense 2,710 3,448
Interest expense 3 1
Interest income (2,823) (2,788)
Dividend from mutual funds (466) (953)
Dividend from Subsidiary (440) -
(Gain)/Loss on sale/scrapping of fixed assets (Net) (219) 1,075
Gain on account of Foreign exchange (56) (45)
Bad debts written off 100 87
Liabilities no longer required written back (164) (445)
Provision for Compensated Absences 53 386
Provision for Gratuity (483) 500
Provision for Managing Directors’ commission 75 73
Operating profit before working capital changes 17,027 28,461
Adjustments for changes in working capital:
(Increase)/Decrease in Inventories (37) 27
(Increase) in Trade Receivables (3,995) (3,865)
(Increase)/Decrease in Loans and advances (1,371) 304
Increase in Trade payables and other current liabilities 6,209 1,942
Cash generated from Operations 17,833 26,869
Taxes paid (net of refunds) (5,862) (8,650)
Net cash from Operating activities 11,971 18,219
B. Cash flows from Investing activities:
Purchase of fixed assets (3,420) (3,192)
Changes in capital work in progress 391 (1,003)
Proceeds from sale of fixed assets 309 47
Interest received/settled 2,844 2,763
Dividend from mutual funds 466 1,031
Dividend from Subsidiary 440 -
Investments in mutual funds (194,860) (217,657)
Redemptions from mutual funds 194,860 222,827
Loans granted to Associate (1,464) (3,956)
Loans repaid/settled by Associate 4,730 1,379
Inter-corporate Deposits granted to Associate (15,170) (7,505)
Inter-corporate Deposits repaid/settled by Associate 15,170 7,505
Investment in Bank fixed deposits (17) (11)
Net cash from Investing activities 4,279 2,228

66 BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 Cash Flow Statement for the YEAR ENDED March 31, 2014

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs

C. Cash flows used in Financing activities:

Interest paid (3) (1)
Dividend paid (25,152) (475)
Dividend distribution tax paid (4,199) (77)

Net cash used in Financing activities (29,354) (553)

Net change in Cash and Cash Equivalents (13,104) 19,894
Cash and cash equivalents at the beginning of the year/period 23,642 3,748
Cash and cash equivalents at the end of the year/period 10,538 23,642

Cash and Cash Equivalents:
Cash on hand 187 80
Cheques and Drafts on hand 1,552 1,415
Balances with banks:
In current accounts 6,099 5,897
Deposits with maturity period less than 3 months 2,700 16,250
10,538 23,642
Other Bank balances:
On Unpaid dividend accounts 55 7
10,593 23,649

Notes:
1 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 the Companies Act, 1956 (the “Act”) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
2 Previous period’s figures have been regrouped/rearranged wherever necessary to conform to the current year’s classification (Refer note 37).

This is the Cash Flow Statement referred to in our report of even date.
As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 67

 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
1 General Information Intangible Assets:
Blue Dart Express Limited (‘the Company’) is engaged in Intangible assets are stated at acquisition cost, net of
the business of integrated air and ground transportation and accumulated amortisation. The Company capitalises all costs
distribution of time sensitive packages to various destinations, relating to development of internally generated software, which
primarily within India. The Company is a public limited company are stated net of accumulated amortization.
and is listed on the Bombay Stock Exchange (BSE) and the
Goodwill represents the excess of the value of the erstwhile
National Stock Exchange (NSE).
partnership business as a whole over its net asset value as at
2 Significant Accounting Policies the date of incorporation as a Company.
a. Basis of preparation Intangible assets under development comprises cost relating
These Financial Statements have been prepared in accordance to development of software that are not yet ready for their
with the generally accepted accounting principles in India intended use at the reporting date.
under the historical cost convention on accrual basis. Pursuant Depreciation
to circular 15/2013 dated 13.09.2013 read with circular
08/2014 dated 04.04.2014, till the Standards of Accounting or Depreciation on tangible assets is calculated on a straight-line
any addendum thereto are prescribed by Central Government basis as per the rates as prescribed under Schedule XIV to the
in consultation and recommendation of the National Financial Act, except in respect of the following assets where such rates
Reporting Authority, the existing Accounting Standards notified arrived at are higher based on the useful lives estimated by the
under the Companies Act, 1956 shall continue to apply. management.
Consequently, these financial statements have been prepared Office Equipment 2 to 16 years
to comply in all material aspects with the accounting standards Electrical Equipment 6 to 16 years
notified under Section 211(3C) [Companies (Accounting Computers 3 to 6 years
Standards) Rules, 2006, as amended] and the other relevant Aircraft Engines 2 to 7 years
provisions of the Companies Act, 1956. Aircraft 14 years
All assets and liabilities have been classified as current or Estimated useful life of the following asset which is not
non-current as per the Company’s normal operating cycle included in Schedule XIV has been arrived at by management
and other criteria set out in the Revised Schedule VI to the as follows:
Companies Act, 1956. Based on the nature of services and the D-Check on Aircraft 7 years
time between the rendering of services and their realisation in
cash and cash equivalents, the Company has ascertained its Depreciation for assets purchased/sold during a year is
operating cycle as 12 months for the purpose of current-non proportionately charged. Individual assets costing upto
current classification of assets and liabilities. ` 5,000 are depreciated over a period of one year from the
date its put to use.
b. Fixed Assets and Depreciation/Amortisation
Computer software, other than internally generated, is
Tangible Assets: amortised under straight line method over the estimated useful
Tangible assets, other then freehold land, are stated at economic life at the rates specified in Schedule XIV to the Act,
acquisition cost, net of accumulated depreciation. as prescribed for Computers. Internally generated software is
amortised using the straight-line method over a period of 10
Subsequent expenditure related to an item of fixed assets
years, based upon its estimated useful economic life.
are added to its book value if it increases the future economic
benefits from the existing asset beyond its previously assessed Goodwill is amortised over a period of 20 years using the
standard of performance. straight-line method.
Freehold land is stated at cost. c. Impairment of Assets
Aircraft Components and Overhaul represent the cost of The Company assesses at each reporting date whether there
engines overhaul, components and modifications of airframes is any indication that an asset (tangible or intangible) may be
owned and contractually liable to be incurred by the Company. impaired. If any indication exists, the Company estimates the
Such costs are depreciated/amortised on the basis of hours asset’s recoverable amount. An asset’s recoverable amount is
flown or the life cycle of the overhaul program, as applicable. the higher of an asset’s or cash generating unit’s (CGU) net
Capital work-in-progress comprises outstanding advances selling price and its value in use. Where the carrying amount
paid to acquire fixed assets that are not yet ready for their of an asset or CGU exceeds its recoverable amount, the asset
intended use at the reporting date. is considered impaired and is written down to its recoverable
amount. Impairment losses are recognised in the Statement

68 BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
of Profit and Loss. Assessment is also done at each Balance h. Employee Benefits
Sheet Date as to whether there is any indication that an
Defined Contribution Plans:
impairment loss recognised for an asset in prior accounting
periods may no longer exist or may have decreased and such Contribution towards Provident Fund is made to the
reversal is recorded in the Statement of Profit and Loss. regulatory authorities. Such benefits are classified as Defined
Contribution Schemes as the Company does not carry any
d. Investments
further obligations, apart from the contributions made on a
Investments, which are readily realizable and intended to be monthly basis.
held for not more than one year from the date on which such
Superannuation is classified as a defined contribution scheme
investments are made, are classified as current investments.
of the Company. Contribution due towards Superannuation
All other investments are classified as non-current investments.
Fund for eligible employees is made to an insurance company,
Current investments are carried at cost or fair value, whichever and the Company has no further obligation beyond making the
is less. Non-current investments are stated at cost. Provision payment.
for diminution in value is made, if necessary, to recognise
The Company also contributes to State plans, namely
a decline, other than temporary, in the value of non-current
Employee’s State Insurance Fund and Employee’s Pension
investments.
Scheme 1995, and has no further obligation beyond making its
e. Inventories contribution.
Inventories are stated at lower of cost and net realisable value. Company’s contributions to the above funds are charged to
the Statement of Profit and Loss for the year for which the
Inventories primarily consist of packing and stationery
contributions are due for payment.
consumables which are valued at cost (arrived at using First-in
First-out basis). Defined Benefit Plans:
f. Revenue Recognition Gratuity:
Service Charges: The Company provides for gratuity, under a defined benefit plan
(the “Gratuity Plan”) covering eligible employees in accordance
Service charges for transportation of shipments are recognised
with the Payment of Gratuity Act, 1972. The Gratuity Plan
as income when shipments are manifested and represent
provides a lump sum payment to vested employees at
amounts invoiced, net of service tax and all discounts and
retirement, death, incapacitation or termination of employment,
allowances.
of an amount based on the respective employee’s salary and
Interest Income: the tenure of employment. The Company’s liability is actuarially
determined (using the Projected Unit Credit Method) at the
Interest income is recognised on a time proportion basis
end of each year. Actuarial losses/gains are recognised in the
taking into account the amount outstanding and the applicable
Statement of Profit and Loss in the year in which they arise.
interest rate.
Compensated absences
Dividend Income:
(i) Accumulated compensated absences, which are expected
Dividend Income is recognised when the right to receive the
to be availed or encashed within 12 months from the
dividend is established.
end of the Balance Sheet Date are treated as short term
g. Foreign Currency Transactions employee benefits. The liability in respect of compensated
absences of short term nature is not actuarially valued and
Initial Recognition:
is provided on an estimated basis.
On initial recognition, all foreign currency transactions are
(ii) Accumulated compensated absences, which are expected
recorded by applying to the foreign currency amount the
to be availed or encashed beyond 12 months from the
difference in exchange rate between the reporting currency
end of Balance Sheet Date are treated as other long term
and the foreign currency at the date of the transaction.
employee benefits. The Company’s liability is actuarially
Exchange differences on restatement of monetary assets and determined (using the Projected Unit Credit Method) at the
liabilities denominated in foreign currencies are recognised in end of each year. Actuarial losses/gains are recognised in
the Statement of Profit and Loss. the Statement of Profit and Loss in the year in which they
arise.

BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 69

 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
i. Leases Current tax assets and current tax liabilities are offset when
there is a legally enforceable right to set off the recognised
Leases in which a significant portion of the risks and rewards of
amounts and there is an intention to settle the asset and the
ownership are retained by the lessor are classified as operating
liability on a net basis.
leases. Operating lease rental payments are recognized as an
expense in the Statement of Profit and Loss on a straight line k. Provisions
basis over the lease term. Provisions are recognised when there is a present obligation
j. Current and Deferred Tax as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to
Tax expense for the year, comprising current tax and deferred
settle the obligation and there is a reliable estimate of the
tax, are included in the determination of the net profit or loss
amount of the obligation. Provisions are measured at the
for the year. Current tax is measured at the amount expected
best estimate of the expenditure required to settle the present
to be paid to the tax authorities in accordance with the taxation
obligation at the Balance Sheet Date and are not discounted to
laws during the relevant assessment year.
its present value.
Deferred tax is recognised for all timing differences, subject to
l. Contingent Liabilities
consideration of prudence, in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to Contingent liabilities are disclosed when there is a possible
the extent that there is a reasonable certainty (virtual certainty obligation arising from past events, the existence of which
in respect of any carried forward losses) that sufficient future will be confirmed only by the occurrence or non occurrence
taxable income will be available against which such deferred of one or more uncertain future events not wholly within the
tax assets can be realised. Deferred tax assets and liabilities control of the Company or a present obligation that arises from
are measured using the tax rates and tax laws that have past events where it is either not probable that an outflow of
been enacted or substantively enacted by the Balance Sheet resources will be required to settle or a reliable estimate of the
Date. At each Balance Sheet Date, the Company reassesses amount cannot be made.
unrecognised deferred tax assets, if any.

70 BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
3 Share Capital
Authorised
4,00,00,000 equity shares of ` 10 each 4,000 4,000
Issued, Subscribed and Paid up
2,37,27,934 equity shares of ` 10 each fully paid-up 2,373 2,373
Add: Forfeited Shares 3 3
Total 2,376 2,376

a. Reconciliation of the number of shares

As at March 31, 2014 As at March 31, 2013
Number of Amount Number of Amount
shares (` In lacs) shares (` In lacs)
Balance as at the beginning of the year/period 2,37,27,934 2,373 2,37,27,934 2,373
Additions/Deletions during the year/period - - - -
Balance as at the end of the year/period 2,37,27,934 2,373 2,37,27,934 2,373
b. Rights, preferences and restrictions attached to equity shares
The Company has only one class of equity shares having a par value of ` 10 per share. Each shareholder of equity shares is entitled to
one vote per share.
The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their share holding.
c. Shares held by holding company
Out of the above equity shares issued by the Company, shares held by the holding company:
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
DHL Express (Singapore) Pte. Limited, the Holding Company
1,77,95,950 (Previous Period : 1,77,95,950) equity shares of ` 10 each fully 1,780 1,780
paid up
d. Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
As at 31st March 2014 As at 31st March 2013
Number of % held as at Number of % held as at
shares shares
DHL Express (Singapore) Pte. Ltd., Singapore 1,77,95,950 75.00% 1,77,95,950 75.00%
Derive Trading Private Limited (along with persons acting in concert) 1,270,147 5.35% 1,282,239 5.40%

BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 71

 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at As at March
March 31, 2014 31, 2013
in ` Lacs in ` Lacs
4 RESERVES AND SURPLUS
Securities Premium Reserve
Balance as at the beginning of the year/period 3,941 3,941
Addition/utilisation during the year/period - -
Balance as at the end of the year/period 3,941 3,941
General Reserve
Balance as at the beginning of the year/period 5,247 3,360
Add: Transferred from Surplus in Statement of Profit and Loss during the year/period 1,244 1,887
Balance as at the end of the year/period 6,491 5,247
Surplus in the Statement of Profit and Loss
Balance as at the beginning of the year/period 53,405 56,136
Add: Profit for the year/period 12,440 18,866
Less: Appropriations
Interim Dividend 8,305 -
Proposed Dividend 3,559 16,847
 Dividend Distribution Tax 2,016 2,863
Transfer to General Reserve 1,244 1,887
Balance as at the end of the year/period 50,721 53,405
Total 61,153 62,593

5 DEFERRED TAX LIABILITY (NET)

[Refer note 2(j)]
As at As at March
Deferred Tax Liability March 31, 2014 31, 2013
Depreciation in ` 2,484
Lacs in ` 2,373
Lacs
Gross Deferred Tax Liability 2,484 2,373
Deferred Tax Assets
Provision for Compensated Absences 438 420
Provision for Bonus 249 267
Provision for Gratuity 18 182
Others 25 18
Gross Deferred Tax Assets 730 887
Total 1,754 1,486

6 LONG-TERM PROVISIONS
Provision for employee benefits:
Provision for Compensated Absences [Refer notes 2(h), 2(k) and 22] 916 940
Total 916 940

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at As at March
March 31, 2014 31, 2013
in ` Lacs in ` Lacs

7 TRADE PAYABLES
Trade Payables (Refer note 30 for details of dues to Micro and Small enterprises) 10,588 7,288
Total 10,588 7,288

8 OTHER CURRENT LIABILITIES

Employee benefits payable 1,257 1,305
Unpaid Dividends (Refer note below) 55 7
Statutory dues (including Provident Fund, Superannuation, Employees State Insurance and Tax
Deducted at Source) 374 381
Trade Deposits 1,250 1,219
Payables towards ‘Cash on Delivery’ shipments (Refer note 16) 4,847 3,643
Other payables 3,917 2,236
Note: There are no amounts due for payment to the Investor Education and Protection Fund
under Section 205(C) of the Companies Act, 1956 as at year/period end
Total 11,700 8,791

9 SHORT TERM PROVISIONS

Provision for employee benefits:
Provision for Gratuity [Refer notes 2(h), 2(k) and 22] 53 536
Provision for Compensated Absences [Refer notes 2(h), 2(k) and 22] 372 295
Other Provisions:
Provision for Proposed Dividend on Equity Shares 3,559 16,847
Provision for Dividend Distribution Tax on Proposed Dividend on Equity shares 605 2,863
Total 4,589 20,541

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
10. FIXED ASSETS
[Refer notes 2(b), 2(c), 24 and 31] in ` Lacs
Description of Assets GROSS BLOCK (At Cost) DEPRECIATION NET BLOCK
Opening Closing Opening Closing Closing Closing
Balance Deductions/ Balance as Balance For the Deductions/ Balance as Balance as Balance as
Additions
as at April Adjustments at March as at April Year Adjustments at March at March at March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Tangible Assets:
Land - Freehold 3,963 - - 3,963 - - - - 3,963 3,963
Buildings 2,014 - 1 2,013 446 52 0* 498 1,515 1,568
Office Equipment 1,804 236 60 1,980 616 126 48 694 1,286 1,188
Electrical Equipment 3,919 425 99 4,245 1,485 274 72 1,687 2,558 2,434
Computers 5,646 1,368 394 6,620 3,779 615 391 4,003 2,617 1,867
Furniture and Fixtures 6,244 485 127 6,602 1,997 409 90 2,316 4,286 4,247
Vehicles 444 42 164 322 303 30 151 182 140 141
Aircraft Engines 1,087 - - 1,087 1,087 - - 1,087 - -
Aircraft 3,002 - - 3,002 1,881 203 - 2,084 918 1,121
Aircraft Components and Overhaul 2,052 - - 2,052 1,784 45 - 1,829 223 268
D-Check on Aircraft [Refer Note (a) below] 1,146 - - 1,146 1,146 - - 1,146 - -
Ground Handling Equipment 864 29 (8) 901 208 44 0* 252 649 656
Machinery and Equipment 1,155 16 12 1,159 360 187 6 541 618 795
Total Tangible Assets 33,340 2,601 849 35,092 15,092 1,985 758 16,319 18,773 18,248
Previous Period 33,612 2,971 3,243 33,340 14,350 2,558 1,816 15,092 18,248

Description of Assets GROSS BLOCK (At Cost) AMORTISATION NET BLOCK

Opening Closing Opening Closing Closing Closing
Balance Deductions/ Balance as Balance For the Deductions/ Balance as Balance as Balance as
Additions
as at April Adjustments at March as at April Year Adjustments at March at March at March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Intangible Assets:
Goodwill 300 - - 300 300 - - 300 - -
Computer Software [Refer note (b) below] 3,790 572 2 4,360 1,784 523 3 2,304 2,056 2,006
Internally Generated Software [Refer note
(b) below] 2,016 381 - 2,397 252 202 - 454 1,943 1,764
Total Intangible Assets 6,106 953 2 7,057 2,336 725 3 3,058 3,999 3,770
Previous Period 5,713 345 (48) 6,106 1,702 890 256 2,336 3,770

* Amount is below the rounding off norm adopted by the Company

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. During the previous period, an amount of ` 301 Lacs from the block of Computers, and ` 1,715 Lacs from the block of Computer Software had been restated/reclassified into
Internally generated software aggregating to ` 2,016 Lacs. Consequently, depreciation for the previous period was lower by ` 156 Lacs and Profit Before Tax was higher by the
same amount.
c. Deductions/Adjustments include reclassification from one category to another category of asset.

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
11 NON-CURRENT INVESTMENTS
Trade investments (valued at cost)
[Refer note 2(d)]
Unquoted equity investments
Investment in Subsidiary
1,10,000 (Previous Period - 1,10,000) equity shares of ` 10 each fully paid up in Concorde Air
Logistics Limited 146 146
Investment in Associate
1,17,60,000 (Previous Period - 1,17,60,000 ) equity shares of ` 10 each in Blue Dart Aviation
Limited 1,831 1,831
Total 1,977 1,977
Aggregate amount of unquoted investments 1,977 1,977

12 LONG-TERM LOANS AND ADVANCES

(Unsecured, considered good, unless otherwise stated)
Loan to Associate (Refer note 33) 15,930 19,499
Aircraft Payload Deposit to Associate 2,150 2,150
Advance income tax [net of provision for taxation ` 30,353 (in lacs), Previous Period ` 24,249
(in lacs)] [Refer note 2(j)] 939 1,181
Capital advances 86 188
Deposits 4,013 3,705
Other loans and advances:
Prepaid expenses 77 59
Total 23,195 26,782

13 OTHER NON-CURRENT ASSETS

Margin money deposit 29 14
Long term deposits with banks with maturity period more than 12 months 14 12
Total 43 26

14 INVENTORIES [Refer note 2(e)]

Packing and Stationery Consumables 272 235
Total 272 235

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
15 TRADE RECEIVABLES [Refer note 29(D)(i)]
(Unsecured, considered good)
Outstanding for a period exceeding six months from the date they are due for payment - -
Other receivables 26,672 22,721
Total 26,672 22,721

16 CASH AND BANK BALANCES

Cash and Cash Equivalents:
Cash on hand 187 80
Cheques and Drafts on hand 1,552 1,415
Balances with banks:
In current accounts 6,099 5,897
Deposits with maturity period less than 3 months 2,700 16,250
10,538 23,642
Other Bank balances:
Unpaid dividend accounts 55 7
Total 10,593 23,649
Bank balances in current account includes ` 3,902 (lacs) [Previous Period - ` 3,519 (lacs)] being
collections on ‘Cash on Delivery’ shipments held on behalf of customers. (Refer note 8)

17 SHORT-TERM LOANS AND ADVANCES

(Unsecured, considered good, unless otherwise stated)
Loan to Associate (Refer note 33) 3,569 3,266
Other loans and advances:
Prepaid expenses 746 626
Loan and advances to employees 40 54
Octroi Recoverable 821 988
Balances with Government Authorities 315 230
Others 1,211 190
Total 6,702 5,354
Loans to employees include:
Due from an officer 12 15

18 OTHER CURRENT ASSETS

(Unsecured, considered good)
Interest accrued on Deposits 4 25
Total 4 25

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
19 REVENUE FROM OPERATIONS
Service charges [Refer note 2(f)] 193,251 216,206
Other Operating income:
Liabilities no longer required written back 164 445
Total 193,415 216,651

20 OTHER INCOME
Dividend from Mutual Funds 466 953
Dividend from Subsidiary 440 -
Gain on sale/scrapping of fixed assets (Net) 219 -
Interest on Loan to Associate [Refer note 2(f)] 2,262 2,616
Interest on Inter-Corporate Deposit to Associate [Refer note 2(f)] 155 54
Interest on deposits with banks [Refer note 2(f)] 406 118
Net Gain on Foreign Currency Transactions and Translation 56 45
Miscellaneous income 193 155
Total 4,197 3,941

21 FREIGHT, HANDLING AND SERVICING COSTS

Aircraft charter costs 62,562 71,227
Domestic network operating costs 42,733 42,968
International servicing charges 10,447 10,762
Domestic excess baggage 9,501 8,576
Handling and clearing charges 4,970 4,961
Printing, stationery and consumables 2,516 2,529
Total 132,729 141,023

22 EMPLOYEE BENEFITS EXPENSE

Salaries, Bonus and Leave Encashment 22,713 25,148
Contribution to Provident and other funds 1,465 1,596
Gratuity 63 772
Staff welfare expenses 2,244 2,312
Total 26,485 29,828

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
The Company has classified the various employee benefits provided to employees as under:
I Defined Contribution Plans
a. Superannuation Fund
b. State Defined Contribution Plans
i. Employers’ Contribution to Employee’s State Insurance
ii. Employers’ Contribution to Employee’s Pension Scheme 1995
During the year/period, the Company has recognised the following amounts in the Statement of Profit and Loss under “Contribution to
Provident and other funds” -
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
- Employers’ Contribution to Provident Fund 495 524
- Employers’ Contribution to Superannuation Fund 71 86
- Employers’ Contribution to Employee’s State Insurance 368 396
- Employers’ Contribution to Employee’s Pension Scheme 1995 426 475

II Defined Benefit Plans

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
March 31, 2014 March 31, 2013
Discount Rate (per annum) 9.31% 8.00%
Rate of increase in Compensation levels (Refer note below) 7.25% 7.25%
Rate of Return on Plan Assets 9.31% 8.00%
The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other
relevant factors, such as demand and supply in the employment market.
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
A) Changes in the Present Value of Obligation
Present Value of Obligation at the beginning of the year/period 3,145 2,335
Interest Cost 252 270
Past Service Cost NIL NIL
Current Service Cost 279 263
Curtailment Cost/(Credit) NIL NIL
Settlement Cost/(Credit) NIL NIL
Benefits Paid (167) (232)
Acturial (gain)/loss on obligations (226) 509
Present Value of Obligation as at year/period end 3,283 3,145
B) Changes in the Fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the year/period 2,609 2,299

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs

Expected Return on Plan Assets 209 223

Acturial Gains and (Loss) on Plan Assets 33 47
Contributions 547 272
Benefits Paid (167) (232)
Fair Value of Plan Assets at year/period end 3,231 2,609
C) Reconciliation of Present Value of Defined Benefit Obligation and the
Fair value of Assets
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
Present Value of funded obligation as at the year/period end 3,283 3,145
Fair Value of Plan Assets as at the end of the year/period 3,231 2,609
Funded Status (52) (536)
Present Value of unfunded Obligation as at the year/period end (52) (536)
Unrecognised Actuarial (gains)/losses NIL NIL
Unfunded Net Liability recognised in Balance Sheet (52) (536)
D) Amount recognised in the Balance Sheet
Present Value of Obligation at the end of the year/period (3,283) (3,145)
Fair Value of Plan Assets at year/period end 3,231 2,609
Liability recognised in the Balance Sheet (52) (536)
Recognised under:
Short term provisions (Refer note 9) 52 536
E) Expenses recognised in the Statement of Profit and Loss
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
Current Service Cost 279 263
Past Service Cost NIL NIL
Interest Cost 252 270
Expected Return on Plan Assets (209) (223)
Curtailment Cost/(Credit) NIL NIL
Settlement Cost/(Credit) NIL NIL
Net actuarial (gain)/loss recognised in the year/period (259) 462
Total expenses/(gain) recognised in the Statement of Profit and Loss 63 772
F) Percentage of each category of Plan Assets to total Fair Value of Plan Assets
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 Regulatory and Development Authority (‘IRDA’) regulations.

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
G) Expected gratuity contribution for the next year is aggregating ` 314 (lacs) [Previous Period ` 567 (lacs)].

I. Net Asset/(Liability) recognised in Balance Sheet:

Year ended 15 Months Year ended Year ended Year ended
March Period ended December December December
31, 2014 March 31, 2013 31, 2011 31, 2010 31, 2009
in ` Lacs
a) Present Value of Obligation at the close of the year/period (3,283) (3,145) (2,335) (2,121) (1,762)
b) Fair Value of Plan Assets at the close of the year/period 3,231 2,609 2,299 2,029 1,706
c) Asset/(Liability) recognised in the Balance Sheet (52) (536) (36) (91) (56)
Change in Define Benefit Obligation (DBO) during the
year/period
d) Actuarial (Gain)/Loss (226) 509 (65) 84 (204)
Change in the Fair Value of Plan Assets during the
year/period
e) Actuarial Gain/(Loss) 33 47 33 (10) 19
Experience Adjustments
f) Experience Adjustment on plan liabilities (gain)/loss 238 (6) 149 84 (86)
g) Experience Adjustment on plan assets (gain)/loss (33) (47) 33 (10) 19

II. Actuarial Assumptions:

Year ended 15 Months Year ended Year ended Year ended
March Period ended December December December
31, 2014 March 31, 2013 31, 2011 31, 2010 31, 2009
Discount Rate 9.31% 8.00% 9.25% 8.50% 8.50%
Expected Return on Plan Assets 9.31% 8.00% 7.75% 7.75% 7.75%
Salary Growth Rate 7.25% 7.25% 7.25% 7.25% 7.25%
Attrition Rate 1.00% 1.00% 1.00% 1.00% 1.00%

III. Compensated Absences:

The liabilities for Compensated Absences as at year end were Rs. 1,288 (lacs) [Previous Period Rs. 1,235 (lacs)] (Refer note 6 and 9)

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
23 FINANCE COSTS
Interest on Bank Overdraft 3 1
Total 3 1

24 DEPRECIATION AND AMORTISATION EXPENSE

Depreciation on Tangible assets 1,985 2,558
Amortisation on Intangible assets 725 890
Total 2,710 3,448

25 OTHER EXPENSES
Rent [Refer note 2(i)] 7,735 8,571
Office expenses 1,939 1,913
Security expenses 1,553 1,618
Electricity 1,456 1,521
Repairs and maintenance - others 1,260 1,261
Communication expenses 805 1,018
Directors sitting fees 5 7
Legal and professional 550 497
Payment to Auditors
As auditor:
Statutory Audit fees 40 40
Tax Audit fees 5 8
Reimbursement of Expenses 11 8
Other Matters 34 33
Rates and taxes 461 494
Travelling and conveyance 276 292
Lease rentals [Refer note 2(i)] 225 262
Insurance 263 232
Sales promotion and advertising 198 215
Bad debts written off 100 87
Loss on sale/scrapping of fixed assets (Net) - 1,075
Miscellaneous expenses 32 18
Total 16,948 19,170

26 EARNINGS PER SHARE

Profit for the year/period 12,440 18,866
Weighted average number of shares (Nos.) 23,727,934 23,727,934
Basic and Diluted Earnings Per Share (In `) 52.43 79.51
Nominal value of shares outstanding (In `) 10 10

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
27 OPERATING LEASES [Refer note 2(i)]
a. The Company has entered into various non-cancellable operating lease agreements for official/residential premises for a period of two
to five years. Future minimum rentals payable under non-cancellable operating leases are as follows:
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
Not later than one year 2,014 2,271
Later than one year and not later than five years 2,154 2,594
Later than five years 351 103
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 ` 358 (lacs) [Previous period ` 394 (lacs)] has been included under the head “Employee
Benefits Expense - Salaries, Bonus and Leave Encashment” under Note 22 forming part of the Statement of Profit and Loss. Lease
rentals for office equipments of ` 225 (lacs) [Previous period ` 262 (lacs)] has been included under the head “Other Expenses - Lease
Rentals” under Note 25 forming part of the Statement of Profit and Loss and lease rentals for official and residential premises of ` 4,601
(lacs) [ Previous period ` 5,504 (lacs)] has been included under the head “Other Expenses - Rent” under Note 25 forming part of the
Statement of Profit and Loss.

28 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.

29 RELATED PARTY DISCLOSURES

(A) Names of related parties and related party relationship
(i) Enterprises where control exists
Ultimate Holding Company Deutsche Post AG, Germany
Holding Company DHL Express (Singapore) Pte. Limited, Singapore
Wholly Owned Subsidiary Company Concorde Air Logistics Limited, India
Fellow Subsidiary Company DHL Express (India) Private Limited, India
Fellow Subsidiary Company DHL Supply Chain India Private Limited, India (Effective from
February 1, 2014)
Fellow Subsidiary Company DHL Logistics Private Limited, India
Fellow Subsidiary Company Skyline Air Logistics Limited, India
Associate Company Blue Dart Aviation Limited, India
(ii) Key Management Personnel
Managing Director Anil Khanna
(B) Related party relationships where transactions have taken place during the year/period
(i) Enterprises where control exists
Holding Company DHL Express (Singapore) Pte. Limited, Singapore
Wholly Owned Subsidiary Company Concorde Air Logistics Limited, India
Fellow Subsidiary Company DHL Express (India) Private Limited, India
Fellow Subsidiary Company DHL Supply Chain India Private Limited, India (Effective from
February 1, 2014)
Fellow Subsidiary Company DHL Logistics Private Limited, India
Associate Company Blue Dart Aviation Limited, India

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
(ii) Key Management Personnel
Anil Khanna Managing Director

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
(C) Transactions with related parties during the year/period
(i) With Holding/Subsidiary/Fellow Subsidiaries/Associate Company
DHL Express (Singapore) Pte. Limited
Dividend paid 18,864 385
Concorde Air Logistics Limited
Reimbursements towards air freight 5,989 5,630
Dividend received (440) -
DHL Express (India) Private Limited
International servicing cost 10,447 10,762
Domestic service charges income (5,713) (6,477)
Reimbursements of expenses 25 57
DHL Supply Chain India Private Limited
Domestic service charges income (505) -
Deposit received/(paid) (11) -
DHL Logistics Private Limited
Domestic service charges income (2,427) (3,365)
Deposit received/(paid) - 11
Reimbursements of expenses 14 16
Blue Dart Aviation Limited
Aircraft Charter Service Cost 62,562 71,150
Inter Corporate Deposit Granted 15,170 7,505
Inter-Corporate Deposits settled/adjusted (15,170) (7,505)
Inter Corporate Loan granted 1,464 3,956
Inter-Corporate Loan settled/adjusted (4,730) (1,379)
Interest income on Loan (2,262) (2,616)
Interest income on Inter-Corporate Deposit (155) (54)
Domestic service charges income (35) (36)
(ii) Corporate guarantees given on behalf of Blue Dart Aviation Limited 10,600 4,600
Note:For the external loan taken by the associate during the year the debt
covenants will be met by the company (Previous period- Not Applicable).
(iii) With Key Management Personnel
Anil Khanna
Remuneration 218 249

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15 Months ended Year ended
March 31, 2013 December 31, 2011
Notes forming part of Financial Statements as of and for the year ended March 31, 2014 in ` Lacs in ` Lacs
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs

(D) Related party balances as at the year/period end

(i) Receivable/(Payable) from/to Subsidiary/Fellow Subsidiaries/Associate company
Concorde Air Logistics Limited (96) (216)
DHL Express (India) Private Limited (Net) (1,750) (1,428)
DHL Supply Chain India Private Limited (Net) 856 -
DHL Logistics Private Limited (Net) 39 353
Blue Dart Aviation Limited (Net) 20,796 24,756
(ii) Payable to Key Management Personnel
Anil Khanna 75 73

30 DUES TO MICRO AND SMALL ENTERPRISES

Principal amount due to suppliers registered under the MSMED Act and remaining unpaid
as at year/period end 191 124
Interest due to suppliers registered under the MSMED Act and remaining unpaid as at
year/period end 2 1
Principal amounts paid to suppliers registered under the MSMED Act beyond the appointed
day during the year/period 6 10
Interest paid, other than under Section 16 of MSMED Act to suppliers registered under the
MSMED Act beyond the appointed day during the year/period - -
Interest paid, under Section 16 of MSMED Act to suppliers registered under the MSMED
Act beyond the appointed day during the year/period - -
Interest due and payable towards suppliers registered under MSMED Act for payments
already made - *0
Further interest remaining due and payable for earlier years 1 1
* Amount is below the rounding off norm adopted by the Company
The above information regarding Micro, Small and Medium Enterprises given in note 7 - Trade Payables has been determined to the
extent such parties have been identified on the basis of information available with the Company.
As at As at
March 31, 2014 March 31, 2013
in ` in `
DETAILED BREAK-UP OF INTEREST IS AS FOLLOWS:
Interest due to suppliers registered under the MSMED Act and remaining
unpaid as at year end 150,102 121,285
Interest due and payable towards suppliers registered under MSMED Act
for payments already made - 9,694
Further interest remaining due and payable for earlier years 121,285 108,011
Interest Charge to Statement of Profit and Loss 28,817 13,274
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
31 CAPITAL AND OTHER COMMITMENTS
Estimated amount of contracts remaining to be executed on capital account and not
provided for [net of advances ` 86 (lacs) (Previous Period ` 188 (lacs))] 521 292

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
32 CONTINGENT LIABILITIES [Refer note 2(l)]
Claims against the Company not acknowledged as debt
a) Penalty under Kerala Value Added Tax Act, 2003 909 -
During the year, the Company received an order and penalty notices from the Department of Commercial Taxes, Kerala claiming that
Cash on Delivery (COD) sales made are to be considered as local Kerala sales liable to VAT in Kerala and the Company is a selling
agent to its customers for such COD sales shipments delivered in Kerala and therefore liable to pay VAT.
The Company has filed a Writ Petition against the order passed by the Department of Commercial Taxes, Kerala which has been
admitted by the Honourable Kerala High Court with directions issued to the Revenue Authorities to file its counter statement and in the
interim has directed the Revenue Authorities not to initiate recovery proceedings.
In response to the said penalty notices and based on the legal counsel advise received, the Company has filed its reply submitting that
on various grounds it is a settled position of law that the sales are inter-state sales and not a local sale in Kerala, hence provisions of
the said Kerala VAT Act are not applicable and in any event the Company cannot be considered as a selling agent of its customers and
therefore should not be considered as liable to penalties on transactions carried out by third parties.
b) Stamp Duty - Karnataka Not ascertainable -
In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka
Stamp Act, 1957, based on the legal counsel advise received, the Company has filed its reply with both those authorities submitting
that on various grounds, it does not consider an air waybill to be an ‘acknowledgement’ chargeable to stamp duty under the Schedule
of the said Act.

33 During the year, the Company has further granted an unsecured interest bearing loan 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 of ` 1,464 (lacs) [Previous period ` 3,956 (lacs)] and received a repayment of ` 4,730 (lacs) [Previous period ` 1,379 (lacs)].
As at March 31, 2014 the outstanding loan balance is ` 19,499 (lacs), [Previous period ` 22,765 (lacs)] of which ` 3,569 (lacs) [Previous
period ` 3,266 (lacs)] is receivable within 12 months of balance sheet date. In respect of the aforesaid loans which have been granted in
tranches, the principal amount for one tranche is repayable over three years with the first year as moratorium and for the balance tranches
is repayable over seven years with the first two years as moratorium. The loan carries an interest computed at an average ‘base’ rate of IDBI
Bank and ICICI Bank with an interest re-set bi-annually.

As at As at
March 31, 2014 March 31, 2013
34 PROPOSED DIVIDEND
The final dividend proposed for the year/period is as follows:
On Equity Shares of ` 10/- each
Amount of dividend proposed (in ` lacs) 3,559 16,847
Dividend per equity share 15 71

35 REMITTANCE IN FOREIGN CURRENCY ON ACOUNT OF DIVIDENDS:

Year ended 15 Months Ended
March 31, 2014 March 31, 2013
Number of Non-resident shareholders 1 1
Number of Equity Shares held 17,795,950 19,227,887
Amount of dividend remitted 12,635 385
Year to which dividend relates January 1, 2012 to January 1, 2011 to
March 31, 2013 December 31, 2011

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months Ended
March 31, 2014 March 31, 2013
Amount of Interim dividend remitted 6,229 -
Year to which Interim dividend relates April 1, 2013 to
March 31, 2014 -

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
EARNINGS IN FOREIGN CURRENCY:
Service income 3,301 3,558
CIF VALUE OF:
Capital Goods 156 219
EXPENDITURE IN FOREIGN CURRENCY:
Foreign Travel 24 12
Others 70 77

36 The Board of Directors of the Company in its meeting held on October 15, 2013 approved a `Scheme of Arrangement’ under Sections
391 and any other applicable provisions of the Companies Act, 1956 and/or Companies Act, 2013 (the “Scheme”) for issuance of
unsecured, redeemable, non-convertible, fully paid up debentures of ` 10/- each (Rupees Ten Only), by way of Bonus, to be allotted
out of Surplus in the Statement of Profit and Loss of the Company, to the shareholders as viz; 7 Debentures under Series I Debentures,
4 Debentures under Series II Debentures and 3 Debentures under Series III Debentures respectively for every 1 (one) equity share of
the Company held by the Shareholders on the Record date to be fixed for this purpose.
BSE Ltd. and National Stock Exchange of India Ltd. have given their no-objection to the Scheme vide their letter dated March 21, 2014.
Further, the Hon’ble Bombay High Court has directed that a meeting of the (i) Equity Shareholders; and (ii) unsecured creditors of the
Company be convened on Friday, June 13, 2014 at 10:00 am and 1:00 pm respectively at Hotel Hilton, Andheri (East), Mumbai, for the
approval of Scheme. The Company is in process of issuing notice of Court Convened Meeting to Equity Shareholders of the Company.

37 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The current accounting year is for twelve months from April 1, 2013 to March 31, 2014, whereas the previous accounting period was for
fifteen months from January 1, 2012 to March 31, 2013. Hence, figures for the current year are not comparable with those of the previous
period. Previous period’s figures have been regrouped/rearranged, wherever necessary to confirm to the current year’s classification.
Signatures to Notes 1 to 37 form an integral part of the financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

86 BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 STATEMENT PURSUANT TO SECTION 212(1) (e) OF THE COMPANIES ACT, 1956 RELATING
TO SUBSIDIARY COMPANIES

Name of the Subsidiary Company : Concorde Air Logistics Limited

Holding Company’s Interest : 110,000 Equity Shares of ` 10 each fully paid up

Extent Holding : 100%

The “Financial Year” of the Subsidiary Company ended on : March 31, 2014

Net aggregate amount of the Subsidiary Company’s profits/

(losses) dealt with in the Holding Company’s accounts

For the Subsidiary’s aforesaid financial year : Nil

For the previous financial years : N.A.

Net aggregate amount of the Subsidiary Company’s profits/

(losses) not dealt with in the Holding Company’s accounts

For the Subsidiary’s aforesaid financial year (` In lacs) : 102

For the previous financial period (` In lacs) : 206

For and on behalf of the Board of Directors

Sharad Upasani Anil Khanna Malcolm Monteiro
Chairman Managing Director Director

Suresh G. Sheth Yogesh Dhingra Tushar Gunderia

Director Chief Financial Officer & Company Secretary
Chief Operating Officer

Place: Mumbai
Date: May 9, 2014

BLUE DART EXPRESS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 87

 BOARD OF DIRECTORS

CONCORDE AIR LOGISTICS LIMITED

BOARD OF DIRECTORS

Vaidhyanathan Iyer

Tushar Gunderia

D. Basappa

PRINCIPAL BANKER

ICICI Bank Ltd.

AUDITORS

Price Waterhouse

REGISTERED OFFICE

17, Adarsh Industrial Estate,

Sahar Road, Chakala,
Andheri (East),
Mumbai - 400 099
CIN - U60230MH2004PLC146141

88 CONCORDE AIR LOGISTICS LIMITED | BOARD OF DIRECTORS | ANNUAL REPORT 2013-2014

 DIRECTORS’ REPORT

To the Members DIRECTORS

Your Directors have great pleasure in presenting Tenth Annual In accordance with the provisions of the Companies Act, 1956 and
Report of your Company for the financial year ended March 31, 2014. Articles of Association of the Company, Mr. V.N. Iyer, Director, retire
by rotation at the ensuing Annual General Meeting and, being eligible,
FINANCIAL RESULTS offer himself for re-appointment.
(` in lacs) DIRECTORS’ RESPONSIBILITY STATEMENT
Year ended 15 Months ended Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
March March 1956, your Directors confirm that;
31, 2014 31, 2013
Revenues: (i) in the preparation of annual accounts, the applicable accounting
Services 367.85 429.99 standards have been followed, along with proper explanation
relating to material departures; and that no material departures
Commission 45.06 89.81 have been made from the same.
Other Income 13.31 58.38 (ii) they have selected such accounting policies and applied them
Less: Operating Expenses 253.79 266.84 consistently and made judgments and estimates that are
reasonable and prudent, so as to give a true and fair view of
Operating Profit (EBIDTA) 172.43 311.34 the state of affairs of the Company at the end of the financial
year and of the profit and loss of the Company for that year;
Less: Depreciation / Amortisation 19.45 23.88
(iii) they have taken proper and sufficient care for the maintenance
Earnings before Tax 152.98 287.46 of adequate accounting records in accordance with the
provisions of the Act, for safeguarding the assets of the
Less: Provision for income tax 50.66 82.09
Company and for preventing and detecting fraud and other
Earnings after tax 102.32 205.37 irregularities; and

(iv) they have prepared the annual accounts on a going concern

basis.
DIVIDEND
AUDITORS
Since your Company has strong reserves position and accumulated
balance in the Profit & Loss Account, the Board of Directors of the The Statutory Auditors, M/s. Price Waterhouse, Chartered Accountants,
Company at its Meeting held on June 25, 2013 declared an interim (Firm Registration no. 301112E), retire at the ensuing Annual General
dividend of ` 400/- per share on the equity share of ` 10/- each, for Meeting and, being eligible, offer themselves for re-appointment. Your
the financial year 2013-2014 Company has received necessary certificate from them confirming
that, their re-appointment, if made, will be in accordance with the
In view of an interim Dividend already declared, your Directors do not provisions of Section 139 of the Companies Act, 2013 and they satisfy
wish to recommend final Dividend. the criteria provided under section 141 of the Companies Act, 2013.

INDUSTRY The Board of Directors recommends re-appointment of M/s. Price

Waterhouse, Chartered Accountants, (Firm Registration no. 301112E),
Your Company is engaged in the business of clearing and forwarding as Statutory Auditors of the Company from the conclusion of Tenth
of time sensitive air cargo packages. Annual General Meeting upto a conclusion of next Annual General
Meeting, subject to necessary approval by the Shareholders of the
Your Company is a registered Air Cargo Agent with the International Air Company at the ensuing Annual General Meeting.
Transport Association (IATA) and licensed Custom House Agent under
the provisions of Customs Act, 1962. FIXED DEPOSIT
Your Company is also engaged in the business of clearance of import The Company has not accepted any deposits within the meaning of
cargo in addition to export cargo at Mumbai. the provisions of Section 58A of the Companies Act, 1956.
Your Company has a valid break-bulk license to handle consolidated
shipments.

CONCORDE AIR LOGISTICS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014 89

 DIRECTORS’ REPORT

COMPLIANCE CERTIFICATE A Conservation of Energy : Not applicable

In accordance with the provisions of Section 383(A) of the Companies B Technology Absorption : Not applicable
Act, 1956, M/s. Nilesh Shah & Associates, Company Secretaries in
Whole time Practice has issued ‘Compliance Certificate’ for the year CForeign Exchange
ended March 31, 2014 which has been attached as an Annexure to Earnings & Outgo :
this Report. Earnings : Nil
Outgo : Nil
EMPLOYEES (previous Year : Nil)

Your Directors hereby wish to place on record their appreciation on the ACKNOWLEDGEMENT
efficient services rendered by the Employees.
Your Directors express their deep sense of gratitude to the customers,
During the year under review, your Company did not have any associates, banks, suppliers and government authorities for their
employee falling under the provisions of Service 217 (2A) of the continuous support during the year under review.
Companies Act, 1956.
For and on behalf of the Board Directors
PARTICULARS REGARDING CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE Vaidhyanathan Iyer Tushar Gunderia
EARNINGS AND EXPENDITURE Director Director
D. Basappa
The information pursuant of Section 217(1) (e) of the Companies
Director
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is as under:
Mumbai,
May 9, 2014

90 CONCORDE AIR LOGISTICS LIMITED | DIRECTORS’ REPORT | ANNUAL REPORT 2013-2014

 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF CONCORDE AIR LOGISTICS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

1. We have audited the accompanying financial statements of Concorde Air Logistics Limited (the “Company”), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information, which we have signed under reference to this report.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies
Act, 1956 (the “Act”) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the
Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as
evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion .

OPINION

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

7. As required by ‘the Companies (Auditor’s Report) Order, 2003’, as amended by ‘the Companies (Auditor’s Report) (Amendment) Order,
2004’, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the
“Order”), 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.

8. As required by section 227(3) of the Act, 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 purpose
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 ;

CONCORDE AIR LOGISTICS LIMITED | INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014 91
 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF CONCORDE AIR LOGISTICS LIMITED

(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books
of account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and

(e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Act.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Neeraj Gupta
Place: Mumbai Partner
Date: May 9, 2014 Membership Number: 055158

92 CONCORDE AIR LOGISTICS LIMITED | INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014
 ANNEXURE TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of Concorde Air Logistics Limited on the financial
statements as of and for the year ended March 31, 2014.
1. (a) The Company is maintaining proper records showing full 9. (a) According to the information and explanations given to us
particulars, including quantitative details and situation, of and the records of the Company examined by us, in our
fixed assets. opinion, the Company is generally regular in depositing
undisputed statutory dues in respect of provident fund
(b) The fixed assets of the Company have been physically and service tax, though there has been a slight delay
verified by the Management during the year and no material in a few cases, and is regular in depositing undisputed
discrepancies have been noticed on such verification. In statutory dues, including investor education and protection
our opinion, the frequency of verification is reasonable. fund, employees’ state insurance, income tax, wealth tax
and other material statutory dues, as applicable, with
(c) In our opinion, and according to the information and
the appropriate authorities. As informed to us sales tax,
explanations given to us, a substantial part of fixed assets
customs duty and excise duty are not applicable to the
has not been disposed off by the Company during the year.
Company for the current year.
2. The Company is in the business of rendering services, and
(b) According to the information and explanations given to us
consequently, does not hold any inventory. Therefore, the
and the records of the Company examined by us, there are
provisions of Clause 4(ii) of the said Order are not applicable to
no dues of income tax, wealth tax, service tax and cess
the Company.
which have not been deposited on account of any dispute.
3. The Company has not granted/taken any loans, secured or As informed to us sales tax, customs duty and excise duty
unsecured, to/from companies, firms or other parties covered in are not applicable to the Company for the current year.
the register maintained under Section 301 of the Act. Therefore,
10. The Company has no accumulated losses as at the end of the
the provisions of Clause 4(iii)[(b),(c) and (d) /(f) and (g)] of the
financial year and it has not incurred any cash losses in the
said Order are not applicable to the Company.
financial year ended on that date or in the immediately preceding
4. In our opinion, and according to the information and explanations financial year.
given to us, there is an adequate internal control system
11. As the Company does not have any borrowings from any
commensurate with the size of the Company and the nature of
financial institution or bank nor has it issued any debentures as
its business for the purchase of fixed assets and for the sale
at the balance sheet date, the provisions of Clause 4(xi) of the
services. Further, on the basis of our examination of the books
Order are not applicable to the Company.
and records of the Company, and according to the information
and explanations given to us, we have neither come across, nor 12. The Company has not granted any loans and advances on the
have been informed of, any continuing failure to correct major basis of security by way of pledge of shares, debentures and
weaknesses in the aforesaid internal control system. other securities. Therefore, the provisions of Clause 4(xii) of the
Order are not applicable to the Company.
5. (a) According to the information and explanations given to us,
there have been no contracts or arrangements that need 13. As the provisions of any special statute applicable to chit fund/
to be entered in the register maintained under Section 301 nidhi/ mutual benefit fund/ societies are not applicable to the
of the Act. Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
(b) In our opinion, and according to the information and
explanations given to us, there are no transactions made 14. In our opinion, the Company is not dealing in or trading in shares,
in pursuance of such contracts or arrangements exceeding securities, debentures and other investments. Accordingly, the
the value of Rupees Five Lakhs in respect of any party provisions of Clause 4(xiv) of the Order are not applicable to the
during the year. Company.
6. The Company has not accepted any deposits from the public 15. In our opinion, and according to the information and explanations
within the meaning of Sections 58A and 58AA of the Act and the given to us, the Company has not given any guarantee for loans
rules framed there under. taken by others from banks or financial institutions during the
year. Accordingly, the provisions of Clause 4(xv) of the Order are
7. In our opinion, the Company has an internal audit system
not applicable to the Company.
commensurate with its size and the nature of its business.
16. The Company has not raised any term loans. Accordingly, the
8. The Central Government of India has not prescribed the
provisions of Clause 4(xvi) of the Order are not applicable to the
maintenance of cost records under clause (d) of sub-section (1)
Company.
of Section 209 of the Act for any of the products of the Company.

CONCORDE AIR LOGISTICS LIMITED | ANNEXURE TO INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014 93
 ANNEXURE TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of Concorde Air Logistics Limited on the financial
statements as of and for the year ended March 31, 2014.

17. According to the information and explanations given to us and provisions of Clause 4(xix) of the Order are not applicable to the
on an overall examination of the balance sheet of the company, Company.
we report that funds amounting to Rs. 10,025 (‘000) in the nature
of short-term working capital have prima facie being deployed in 20. The Company has not raised any money by public issues during
long-term loans and advances. the year. Accordingly, the provisions of Clause 4(xx) of the
Order are not applicable to the Company.
18. The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained 21. During the course of our examination of the books and records
under Section 301 of the Act during the year. Accordingly, the of the Company, carried out in accordance with the generally
provisions of Clause 4(xviii) of the Order are not applicable to accepted auditing practices in India, and according to the
the Company. information and explanations given to us, we have neither come
across any instance of material fraud on or by the Company,
19. The Company has not issued any debentures during the year noticed or reported during the year, nor have we been informed
and does not have any debentures outstanding as at the of any such case by the Management.
beginning of the year and at the year end. Accordingly, the

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Neeraj Gupta
Place: Mumbai Partner
Date: May 9, 2014 Membership Number: 055158

94 CONCORDE AIR LOGISTICS LIMITED | ANNEXURE TO INDEPENDENT AUDITORS’ REPORT | ANNUAL REPORT 2013-2014
 COMPLIANCE CERTIFICATE

(Under Section 383A (1) of the Companies Act, 1956) 9. The Company has not entered into any contract in violation of the
provisions of Section 297 of the Act in respect of contracts
CIN: U60230MH2004PTC146141 specified in that section.
Authorised Capital: ` 2,000,000/-
10. The Company has made necessary entries in the register
To the Members of maintained under Section 301 of the Act.
CONCORDE AIR LOGISTICS LIMITED
Mumbai 11. As there were no instances falling within the purview of Section
314 of the Act, the Company was not required to obtain any
We have examined the necessary registers, records, books and approvals from the Board of Directors, Members or the Central
papers of CONCORDE AIR LOGISTICS LIMITED (‘the Company’) as Government.
required to be maintained under the Companies Act, 1956, (‘the Act’)
and the rules made thereunder and also the provisions contained in 12. The Company has not issued duplicate share certificates during
the Memorandum and Articles of Association of the Company for the the financial year under review and hence no comment is
financial year ended on 31st March, 2014. In our opinion and to the invited.
best of our information and according to the examinations carried out
by us and the explanations furnished to us by the Company, its officers 13. The Company has:
and agents, we certify that in respect of the aforesaid financial period: (i) not allotted any shares / securities or received any request
1. The Company has kept and maintained all registers as stated in for transfer / transmission of any shares or other securities
Annexure “A” to this certificate, as per the provisions of the Act during the year under review and hence no comment is
and the rules made there under and all entries therein have been invited in this respect.
duly recorded. (ii) paid the amount of interim dividend within the stipulated time
2. The Company has duly filed the forms and returns as stated in limits of 5 days to the shareholders;
Annexure “B” to this certificate with the Registrar of Companies, (iii) paid the amount of dividend declared within the statutory
Maharashtra, Mumbai or such other authorities within the time time limit from the date of declaration of such dividend and
prescribed under the Act and the rules made thereunder. The hence there was no amount required to be transferred to the
Company was not required to file any forms and returns with the unpaid dividend account;
Regional Director, Central Government, Company Law Board or
other authorities. (iv) no amount due to be transferred to the Investor Education
and Protection Fund in respect of unpaid dividend account
3. The status of the Company, being Public Limited Company, or application money due for refund or matured deposits or
comments are not required. matured debentures and the interest accrued thereon which
4. The Board of Directors duly met 5 (Five) times on 02.05.2013, have remained unclaimed or unpaid for a period of seven
25.06.2013, 22.07.2013, 14.10.2013 and 04.02.2014 years;
respectively, in respect of which meetings proper notices were (v) duly complied with the requirements of Section 217 of the
given and the proceedings were properly recorded and signed in Act.
the Minutes Book maintained for the purpose.
14. The Board of Directors of the Company is duly constituted. There
5. The Company was not required to close its Register of Members were no appointment of additional directors, alternate directors
or Debenture holders during the financial year under review. and directors to fill casual vacancies, during the financial year
6. The Annual General Meeting for the year ended 31st March, under review.
2013 was held on 22nd July, 2013 after giving due notice to the 15. The Company has not appointed any Managing Director / Whole
members of the Company and the resolutions passed thereat time Director / Manager during the financial year under review.
were duly recorded in the Minutes Book maintained for the
purpose. 16. The Company has not appointed any sole-selling agents during
the financial year under review.
7. No Extra Ordinary General Meeting was held 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,
8. The Company has not advanced any loans to its directors and / Registrar or such other authorities as may be prescribed under the
or persons or firms or Companies referred to in the Section 295 of various provisions of the Act during the financial year under
the Act, during the period under review. review.

CONCORDE AIR LOGISTICS LIMITED | COMPLIANCE CERTIFICATE | ANNUAL REPORT 2013-2014 95

 COMPLIANCE CERTIFICATE

18. The directors have disclosed their interest in other firms/ 26. The Company has not altered the provisions of the memorandum
companies to the Board of Directors pursuant to the provisions of with respect to situation of the Company’s registered office from
the Act and the rules made there under. one state to another during the financial year under review.

19. The Company has not allotted any equity shares or any other 27. The Company has not altered the provisions of the memorandum
securities during the financial year under review and hence no with respect to the objects of the Company during the financial
comment is invited. year under review.

20. The Company has not bought back any shares during the financial 28. The Company has not altered the provisions of the Memorandum
year under review. of Association with respect to name of the Company 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/ 29. The Company has not altered the provisions of the memorandum
debentures during the year under review. with respect to share capital of the Company during the financial
year under review.
22. There were no transactions necessitating the Company to keep in
abeyance any corporate benefits of the members pending 30 The Company has not altered any provisions of its Articles of
registration of transfer of shares. Association during the financial year under review.

23. The Company has not invited/accepted any deposits including 31. As explained to us, there was no prosecution initiated against or
any unsecured loans falling within the purview of the provisions of show cause notices received by the Company for alleged offenses
Sections 58A and 58AA read with Companies (Acceptance of under the Act and no fines and penalties or any other punishment
Deposit) Rules, 1975 during the financial year under review. was imposed on the Company 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 32. As explained to us, the Company has not received any money as
the financial year ending 31st March, 2014. security from its employees during the financial year under
review.
25. The Company has not made any loans or advances or
investments or given guarantees or provided securities to other 33. The Company has no outstanding amount to be deposited with
bodies corporate attracting the Provisions of Section 372 A of the the prescribed authority pursuant to the provisions of Section 418
Act. The Company was not required to make any entries in the of the Act.
register required to be kept for the purpose.

For Nilesh Shah & Associates

Company Secretaries
(Nilesh Shah)
Partner (FCS – 4554)
C.P.No.: 2631

Place : Mumbai
Date : May 9, 2014

96 CONCORDE AIR LOGISTICS LIMITED | COMPLIANCE CERTIFICATE | ANNUAL REPORT 2013-2014

 COMPLIANCE CERTIFICATE
Annexure - A

Sr. No. Registers maintained by the Company Under Section

1. Register of Members 150

2. Minutes Books of proceedings of: 193

1. Meetings of the Board of Directors.
2. General Meetings

3. Register of contracts, companies and firms in which directors are interested 301

4. Register of Directors, Managers and Secretary 303

5. Register of Directors’ Shareholdings 307

6. Register of Charges 143

7. Register of Renewed and Duplicate Certificate Issue of Share Certificate Rules

8. Register of Share Application and Allotment Voluntary

9. Register of Directors Attendance Voluntary

10. Register of Members Attendance Voluntary

11. Register of Share Transfer Voluntary (108)

For Nilesh Shah & Associates

Company Secretaries
(Nilesh Shah)
Partner (FCS – 4554)
C.P.No.: 2631
Place : Mumbai
Date : May 9, 2014

Annexure - B

Sr. No. Form No. Section Purpose Date of Filing & SRN

1 Form 66 (Compliance Cert) 383A As required under Companies (Compliance Certificate) Rules, 2001. Q10033132
Dated: 31.03.2013 12.08.2013

2 Form 23AC / Form 23ACA 210 As per requirement of the Act Q10250520
XBRL (Annual Accounts) 20.08.2013
Dated: 31.03.2013

3 Form 20B 159 As per requirement of the Act Q10632099

(Annual Return) 31.08.2013
Dated: 22.07.2013

For Nilesh Shah & Associates

Company Secretaries
(Nilesh Shah)
Partner (FCS – 4554)
C.P.No.: 2631
Place : Mumbai
Date : May 9, 2014

CONCORDE AIR LOGISTICS LIMITED | COMPLIANCE CERTIFICATE | ANNUAL REPORT 2013-2014 97

 CONCORDE AIR LOGISTICS LIMITED
BALANCE SHEET AS AT MARCH 31, 2014

As at As at
Note March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)

EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS
Share Capital 3 1,100 1,100
Reserves and Surplus 4 30,064 71,310
31,164 72,410
NON-CURRENT LIABILITIES
Long-term Provisions 5 2,640 2,590

CURRENT LIABILITIES
Trade Payables 6 24,099 21,915
Other Current Liabilities 7 1,434 1,374
Short-term Provisions 8 190 80
25,723 23,369
TOTAL 59,527 98,369
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Tangible Assets 9 2,732 3,034
Intangible Assets 9 176 1,612
2,908 4,646
Non-Current Investments 10 50 50
Deferred Tax Assets (Net) 11 852 747
Long-term Loans and Advances 12 39,610 18,973
Other Non-current Assets 13 409 356
43,829 24,772
CURRENT ASSETS
Trade Receivables 14 9,632 21,574
Cash and Bank Balances 15 5,126 51,637
Short-term Loans and Advances 16 940 299
Other Current Assets 17 - 87
15,698 73,597
TOTAL 59,527 98,369
The accompanying notes are an integral part of these financial statements

As per our report of even date.

For and on behalf of the Board of Directors

For Price Waterhouse V. N. Iyer Tushar Gunderia

Firm Registration Number: 301112E Director Director
Chartered Accountants
Neeraj Gupta D. Basappa
Partner Director
Membership No. 055158
Place : Mumbai Place : Mumbai
Date: May 9, 2014 Date: May 9, 2014

98 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 CONCORDE AIR LOGISTICS LIMITED
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2014

Year ended 15 Months ended

Note March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)
REVENUE
Revenue from Operations 18 41,291 51,980
Other Income 19 1,331 5,838
Total Revenue 42,622 57,818
EXPENSES
Freight, Handling and Servicing Costs 20 5,278 4,772
Employee Benefits Expense 21 17,301 19,022
Depreciation and Amortisation Expense 22 1,945 2,388
Other Expenses 23 2,800 2,890
Total Expenses 27,324 29,072
PROFIT BEFORE TAX 15,298 28,746
Tax expense :
Current Tax 5,171 9,130
Deferred Tax (105) (212)
Taxation in respect of earlier years - (709)
PROFIT FOR THE YEAR/PERIOD 10,232 20,537
Earnings per Equity share [Refer note 24]
[Nominal value of share ` 10 each] (Previous Period - ` 10)
Basic Earnings Per Share (in `) 93.02 186.70
Diluted Earnings Per Share (in `) 93.02 186.70

The accompanying notes are an integral part of these financial statements

As per our report of even date.

For and on behalf of the Board of Directors

For Price Waterhouse V. N. Iyer Tushar Gunderia

Firm Registration Number: 301112E Director Director
Chartered Accountants
Neeraj Gupta D. Basappa
Partner Director
Membership No. 055158
Place : Mumbai Place : Mumbai
Date: May 9, 2014 Date: May 9, 2014

CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014 99

 CONCORDE AIR LOGISTICS LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)
A. Cash flows from Operating activities:
Profit before Tax 15,298 28,746
Adjustments for:
Depreciation and Amortisation Expense 1,945 2,388
Interest Income (709) (1,754)
Dividend Income (612) (3,148)
Provision for Gratuity 186 287
Provision for Compensated Absences (26) 272
Operating profit before working capital changes 16,082 26,791
Adjustments for changes in working capital :
Decrease / (Increase) in Trade Receivable 11,942 (10,795)
(Increase) / Decrease in Loans and Advances (640) 1,016
Increase in Trade and Other Payables 2,244 2,296
Cash generated from Operations 29,628 19,308
Taxes paid (Net of refunds) (25,808) (17,057)
Net cash generated from Operating activities (A) 3,820 2,251
B. Cash flows from Investing activities:
Purchase of Fixed Assets (208) (2,440)
Interest Received 744 2,693
Dividend Received 611 3,866
Investments in Mutual funds (126,500) (123,000)
Investments in Bank Deposits as Margin money for Bank Guarantees - (100)
Redemptions from mutual funds 126,500 143,000
Net cash generated from Investing activities (B) 1,147 24,019
C. Cash flows from Financing activities:
Net cash from Financing activities (C)
Dividend Paid (44,000) -
Dividend distribution tax paid (7,478) -
Net cash used in Financing activities (C) (51,478) -
Net (Decrease) / Increase in Cash and Cash Equivalents (A+B+C) (46,511) 26,270
Cash and cash equivalents at the beginning of the year/period 51,637 25,367
Cash and cash equivalents at the end of the year/period 5,126 51,637
As at As at
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)
Cash and cash equivalents comprise of:
Cash on hand 46 8
Balance with Scheduled Banks
on Current Accounts 5,080 6,629
on Deposit Accounts - 45,000
5,126 51,637
Notes :
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 the Companies Act, 1956 (the “Act”) read with the General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

This is the Cash Flow Statement referred to in our report of even date For and on behalf of the Board of Directors
For Price Waterhouse V. N. Iyer Tushar Gunderia
Firm Registration Number: 301112E Director Director
Chartered Accountants
Neeraj Gupta D. Basappa
Partner Director
Membership No. 055158
Place : Mumbai Place : Mumbai
Date: May 9, 2014 Date: May 9, 2014

100 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 SCHEDULES
Notes forming part of Financial Statements as of and for the year ended March 31, 2014
1 General Information such rates arrived at are higher based on the useful lives
The Company is an International Air Cargo Agent with estimated by the Management.
International Air Transport Association (‘IATA’) and engaged Description of Assets Useful Life
inter alia in the business of clearing and forwarding of time (in years)
sensitive air cargo packages. Office Equipment 15
2 Significant Accounting Policies Electrical Equipment 15
a. Basis of preparation of Financial Statements Depreciation for assets purchased/sold during a year is
These financial statements have been prepared in proportionately charged. Individual assets costing upto
accordance with the generally accepted accounting principles ` 5,000 are depreciated over a period of one year from the
in India under the historical cost convention on accrual date its put to use.
basis. Pursuant to circular 15/2013 dated 13.09.2013 read Computer software is amortised under straight line method
with circular 08/2014 dated 04.04.2014, till the Standards over the estimated useful economic life at the rates specified
of Accounting or any addendum thereto are prescribed by in Schedule XIV to the Act, as prescribed for computers.
Central Government in consultation and recommendation Goodwill is amortised over a period of 10 years using the
of the National Financial Reporting Authority, the existing straight-line method.
Accounting Standards notified under the Companies Act,
1956 shall continue to apply. Consequently, these financial c. Impairment of Assets
statements have been prepared to comply in all material The Company assesses at each reporting date whether there
aspects with the accounting standards notified under Section is an indication that assets (tangible or intangible) may be
211(3C) [Companies (Accounting Standards) Rules, 2006, as impaired. If any indication exists, the Company estimates the
amended] and the other relevant provisions of the Companies assets’ recoverable amount. An assets’ recoverable amount
Act, 1956. is the higher of an assets’ or cash generating unit’s (CGU) net
All the assets and liabilities have been classified as current selling price and its value in use. Where the carrying amount
or non-current as per the Company’s normal operating cycle of an asset or CGU exceeds its recoverable amount, the asset
and other criteria set out in the Revised Schedule VI to the is considered impaired and is written down to its recoverable
Companies Act, 1956. Based on the nature of services and the amount. Impairment losses are recognised in the Statement
time between the rendering of services and their realisation in of Profit and Loss. Assessment is also done at each Balance
cash and cash equivalents, the Company has ascertained its Sheet date as to whether there is an indication that an
operating cycle as 12 months for the purpose of current-non impairment loss recognised for an asset in prior accounting
current classification of assets and liabilities. periods may no longer exist or may have decreased and such
reversal is recorded in the Statement of Profit and Loss.
b. Fixed Assets and Depreciation/Amortisation
d. Investments
Tangible Assets
Investments, which are readily realisable and intended to be
Tangible assets are stated at acquisition cost, net of held for not more than one year from the date on which such
accumulated depreciation. investment are made, are classified as current investments. All
Subsequent expenditure related to an item of fixed assets are other investments are classified as non-current investments.
added to its book value if it increases the future economic Current investments are carried at cost or fair value whichever
benefits from the existing asset beyond its previously is less. Non-Current investments are stated at cost. Provision
assessed standard of performance. for diminution in value is made, if necessary, to recognise
Intangible Assets a decline other than temporary in the value of non-current
Intangible assets are stated at acquisition cost, net of investments.
accumulated amortisation.The Company capitalises all costs e. Revenue Recognition
relating to development of internally generated software, Service Charges:
which are stated net of accumulated amortization.
Service charges for clearing and forwarding of shipments
Goodwill represents the excess of the value of the erstwhile are recognised as income when shipments are manifested
partnership business as a whole over its net asset value as at and represent amounts invoiced, net of service tax and all
the date of incorporation as a Company. discounts and allowances.
Depreciation Commission Income:
Depreciation on tangible assets is calculated on a straight- Commission is accrued when cargo is delivered to the custody
line basis as per the rates as prescribed under the Schedule of the airline and the master airway bill is issued.
XIV to the Act, except in respect of the following assets where

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
Interest Income: for the year. Current tax is measured at the amount expected
Interest income is recognised on a time proportion basis to be paid to the tax authorities in accordance with the taxation
taking into account the amount outstanding and the applicable laws during the relevant assessment year.
interest rate. Deferred tax is recognised for all timing differences, subject to
Dividend Income: consideration of prudence, in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to
Dividend Income is recognised when the right to receive the extent that there is a reasonable certainty (virtual certainty
dividend is established. in respect of any carried forward losses) that sufficient future
f. Employee Benefits taxable income will be available against which such deferred
tax assets can be realised. Deferred tax assets and liabilities
Defined Contribution Plan:
are measured using the tax rates and tax laws that have
Contribution towards Provident Fund is made to the been enacted or substantively enacted by the Balance Sheet
Regulatory Authorities. Such benefits are classified as date. At each Balance Sheet date, the Company reassesses
Defined Contribution Schemes as the Company does not unrecognised deferred tax assets, if any.
carry any further obligations, apart from the contributions
Current tax assets and current tax liabilities are offset when
made on a monthly basis.
there is a legally enforceable right to set off the recognised
The Company also contributes to State plans, namely amounts and there is an intention to settle the asset and the
Employee’s State Insurance Fund and Employee’s Pension liability on a net basis.
Scheme 1995, and has no further obligation beyond making
h. Provisions
its contribution.
Provisions are recognised when there is a present obligation
Company’s contributions to the above funds are charged to
as a result of a past event, it is probable that an outflow of
the Statement of Profit and Loss for the year for which the
resources embodying economic benefits will be required to
contributions are due for payment.
settle the obligation and there is a reliable estimate of the
Defined Benefit Plan amount of the obligation. Provisions are measured at the
Gratuity: best estimate of the expenditure required to settle the present
obligation at the Balance sheet date and are not discounted to
The Company provides for gratuity, a defined benefit plan (the
its present value.
“Gratuity Plan”) covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity Plan provides i. Contingent Liabilities
a lump sum payment to vested employees at retirement, Contingent liabilities are disclosed when there is a possible
death, incapacitation or termination of employment, of an obligation arising from past events, the existence of which will
amount based on the respective employee’s salary and the be confirmed only by the occurrence or non occurrence of one
tenure of employment. The Company’s liability is actuarially or more uncertain future events not wholly within the controls
determined (using the Projected Unit Credit Method) at the of the Company or a present obligation that arises from past
end of each year. Actuarial losses/ gains are recognised in the events where it is either not probable that an outflow of re-
Statement of Profit and Loss in the year in which they arise. sources will be required to settle or a reliable estimate of the
Compensated absences amount cannot be made.
(i) Accumulated compensated absences, which are expected
to be availed or encashed within 12 months from the end of
the Balance sheet date are treated as short term employee
benefits. The liability in respect of compensated absences of
short term nature is not actuarially valued and is provided on
an estimated basis.
(ii) Accumulated compensated absences, which are expected to
be availed or encashed beyond 12 months from the end of
the Balance sheet are treated as other long term employee
benefits. The Company’s liability is actuarially determined
(using the Projected Unit Credit Method) at the end of each
year. Actuarial losses/ gains are recognised in the Statement
of Profit and Loss in the year in which they arise.
g. Current and Deferred Tax
Tax expense for the year, comprising current tax and deferred
tax, are included in the determination of the net profit or loss
102 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014
 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` (‘000) in ` (‘000)
3. Share Capital
Authorised
200,000 equity shares of ` 10 each 2,000 2,000
Issued, Subscribed and Paid up
110,000 equity shares of ` 10 each fully paid-up 1,100 1,100
Total 1,100 1,100
a. Reconciliation of the number of shares
As at March 31, 2014 As at March 31, 2013
Number of shares Amount Number of shares Amount
in ` (‘000) in ` (‘000)
Balance as at the beginning of the year/period 110,000 1,100 110,000 1,100
Additions/Deletions during the year/period - - - -
Balance as at the end of the year/period 110,000 1,100 110,000 1,100

b. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ` 10 per share. Each shareholder of equity shares is entitled to one
vote per share.
The Company has declared and paid interim dividend in Indian Rupees.
In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their share holding.
c. Shares held by holding company As at March As at March
31, 2014 31, 2013
Out of the above equity shares issued by the Company, shares held by the holding company: in ` (‘000) in ` (‘000)
Blue Dart Express Limited, the Holding Company and its nominees
110,000 (Previous Period: 110,000) equity shares of ` 10 each fully paid up 1,100 1,100

d. Details of shares held by shareholders holding more than 5% of the aggregate

shares in the Company.
As at March 31, 2014 As at March 31, 2013
No. of shares % held as at No. of shares % held as at
Blue Dart Express Limited 110,000 100 110,000 100

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` (‘000) in ` (‘000)
4 RESERVES AND SURPLUS

Securities Premium Reserve

Balance as at the beginning of the year/period 13,500 13,500
Addition/utilisation during the year/period - -
Balance as at the end of the year/period 13,500 13,500

General Reserve
Balance as at the beginning of the year/period - -
Add : Transferred from Surplus in Statement of
Profit and Loss during the year/period 4,500 -
Balance as at the end of the year/period 4,500 -

Surplus from the Statement of Profit and Loss

Balance as at the beginning of the year/period 57,810 37,273
Add: Net Profit for the year/period 10,232 20,537
Less: Appropriations - -
Interim Dividend 44,000 -
Dividend Distribution Tax 7,478 -
Transfer To General Reserve 4,500 -
Balance as at the end of the year/period 12,064 57,810
Total 30,064 71,310
5 Long term provision
Provision for Employee benefits:
- Provision for Gratuity [Refer notes 2(f), 2(h) and 21] 2,044 1,948
- Provision for Compensated Absences [Refer notes 2(f), 2(h) and 21] 596 642
Total 2,640 2,590
6 Trade Payables
Trade Payables (Refer note 27 for details of dues to micro and small enterprises) 24,099 21,915
Total 24,099 21,915
7 Other current liabilities
Employee benefits payable 150 160
Statutory Dues (including Providend Fund, Employee State Insurance, Professional tax and
Tax deducted at Source) 1,284 1,214
Total 1,434 1,374
8 Short Term Provisions
Provision for Employee benefits:
Provision for Gratuity [Refer notes 2(f), 2(h) and 21] 121 31
Provision for Compensated Absences [Refer notes 2(f), 2(h) and 21] 69 49
Total 190 80

104 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014

9 Fixed Assets [Refer Notes 2(b), 2(c) and 22] in ` (‘000)

Description of Assets GROSS BLOCK (At Cost) DEPRECIATION NET BLOCK
Opening Closing Opening Closing Closing Closing
Balance Balance Balance Balance Balance Balance
Deductions/ For the Deductions/
as at Additions as at as at as at as at as at
Adjustments Year Adjustments
April March April March March March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Tangible Assets:
Buildings 2,022 - - 2,022 2,018 - - 2,018 4 4
Office Equipment 195 - - 195 107 7 - 114 81 88
Electrical Equipment 764 - - 764 118 58 - 176 588 646
Computers 682 144 - 826 488 85 - 573 253 194
Furniture and Fixtures 1,655 - - 1,655 84 105 - 189 1,466 1,571
Vehicles 2,016 - - 2,016 1,485 191 - 1,676 340 531

Total Tangible Assets 7,334 144 - 7,478 4,300 446 - 4,746 2,732 3,034
Previous Year 4,739 2,595 - 7,334 3,776 524 - 4,300 3,034

Description of Assets GROSS BLOCK (At Cost) AMORTISATION NET BLOCK

Opening Closing Opening Closing Closing Closing
Balance Balance Balance Balance Balance Balance
Deductions/ For the Deductions/
as at Additions as at as at as at as at as at
Adjustments Year Adjustments
April March April March March March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Intangible Assets:
Goodwill 14,900 - - 14,900 13,291 1,490 - 14,781 119 1,609
Computer Software 33 63 - 96 30 9 - 39 57 3
Total Intangible Assets 14,933 63 - 14,996 13,321 1,499 - 14,820 176 1,612
Previous Year 14,933 - - 14,933 11,457 1,864 - 13,321 1,612

As at March As at March
31, 2014 31, 2013
in ` (‘000) in ` (‘000)
10 Non current Investments
[Refer note 2(d)]
In Government Securities - Unquoted National Saving Certificates 50 50
(6 year NSCs - VIII issue)
[Given as security to the Custom Authorities]
Total 50 50
11 Deferred Tax Assets (Net)
[Refer note 2(g)]
Deferred Tax Assets
Provision for Compensated Absences 216 224
Provision for Gratuity 702 642
Provision for Bonus 49 -
967 856
Deferred Tax Liability
Depreciation/Amortisation 115 119
Total 852 747

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` (‘000) in ` (‘000)
12 Long term loans and advances
(Unsecured, considered good)
Trade deposits 25 25
Rental deposits (staff accommodation) 100 100
Advance income taxes [Net of provision for taxation `21,006 (‘000) Previous 39,485 18,848
Period ` 16,601 (‘000)] Total 39,610 18,973

13 Other Non-Current Assets

Current bank balances held as Margin money deposit against Guarantees 356 356
Interest accrued but not due 53 -
Total 409 356
14 Trade Receivables [Refer note 26(d)]
(Unsecured, considered good)
Outstanding for a period exceeding six months - -
Other Receivables 9,632 21,574
Total 9,632 21,574
15 Cash and Bank balances
Cash and cash equivalents
Cash on Hand 46 8
Balance with banks :
In current accounts 5,080 6,629
Deposits with maturity period less than 3 months - 45,000
Total 5,126 51,637
16 Short term loans and advances
(Unsecured, considered good)
Prepaid Expenses 258 268
Balance with from Government authorities 66 22
Other advances 616 9
Total 940 299
17 Other current assets
Interest accrued but not due - 87
Total - 87

106 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)
18 Revenue from Operations
Income from Service Charges [Refer note 2(e)] 36,785 42,999
Income from Commission [Refer note 2(e)] 4,506 8,981
Total 41,291 51,980
19 Other Income [Refer note 2(e)]
Interest on
- Fixed deposits 709 1,082
- Income tax refund - 672
Dividend income 612 3,148
Miscellaneous Income 10 936
Total 1,331 5,838
20 Freight, Handling and Servicing Costs
Handling and clearing charges 4,146 3,487
Domestic network operating costs 1,005 1,164
Printing, stationery and consumables 127 121
Total 5,278 4,772
21 Employee Benefits Expense
Salaries, Wages, Bonus and Leave Encashment 16,273 17,462
Contribution to Provident and other funds 902 1,408
Staff welfare expenses 126 152
Total 17,301 19,022
The Company has classified the various employee benefits provided to employees as under :-
I. Defined Contribution Plans
a. Provident Fund
b. State Defined Contribution Plans
i. Employers’ Contribution to Employee’s State Insurance
ii. Employers’ Contribution to Employee’s Pension Scheme 1995.

During the year/period, the Company has recognised the following amounts in the Statement of Profit and Loss under “Contribution to provident
and other funds” -
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)

- Employers’ Contribution to Provident Fund 395 404
- Employers’ Contribution to Employee’s State Insurance 69 114
- Employers’ Contribution to Employee’s Pension Scheme 1995 198 227
II. Defined Benefit Plan
GRATUITY
Valuations in respect of gratuity have been carried out by an independent actuary, as at the Balance Sheet Date,based on the following
assumptions.
As at As at
March 31, 2014 March 31, 2013
Discount Rate (per annum) 9.31% 8.00%
Rate of increase in Compensation levels (Refer note below) 6.75% 6.75%
Rate of Return on Plan Assets Nil Nil
The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant
factors, such as demand and supply in the employment market.

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
As at As at
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)

A) Changes in the Present Value of Obligation

Present Value of Obligation at the beginning of the year/period 1,979 1,691
Interest Cost 159 196
Past Service Cost Nil Nil
Current Service Cost 175 174
Curtailment Cost / (Credit) Nil Nil
Settlement Cost / (Credit) Nil Nil
Benefits Paid Nil (319)
Actuarial (gain) / loss on obligations (148) 237
Present Value of Obligation as at Year/Period end 2,165 1,979
B) Amount recognised in the Balance Sheet
Present Value of Obligation at the end of the year/period (2,165) (1,979)
Fair Value of Plan Assets as at the end of the year/period Nil Nil
Unfunded net Liability recognised in the Balance Sheet (2,165) (1,979)
Recognised under:
Long term provisions (Refer note 5) 2,044 1,948
Short term provisions (Refer note 8) 121 31
C) Expenses recognised in the Statement of Profit and Loss
Current Service Cost 175 174
Past Service Cost Nil Nil
Interest Cost 159 196
Expected Return on Plan Assets Nil Nil
Curtailment Cost / (Credit) Nil Nil
Settlement Cost / (Credit) Nil Nil
Net actuarial (gain) / loss recognised in the year/period (148) 237
Total Expenses recognised in the Statement of Profit and Loss 186 607
(D) Net Asset/ (Liability) recognised in the Balance Sheet
Year ended 15 Months Year ended Year ended Year ended
March ended March December December December
31, 2014 31, 2013 31, 2011 31, 2010 31, 2009
in ` (‘000) in ` (‘000) in ` (‘000) in ` (‘000) in ` (‘000)

Present Value of Obligation at the end of the year/period

2,165 1,979 1,691 1,471 1,207
Fair value of Plan Assets at the end of the year/period Nil Nil Nil Nil Nil
Asset / (Liability) recognised in the Balance Sheet (2,165) (1,979) (1,691) (1,471) (1,207)
Experience Adjustments:
On Plan Liabilities (gain)/ loss (148) 237 (43) 108 (54)
On Plan Assets gain/ (loss) Nil Nil Nil Nil Nil

III. COMPENSATED ABSENCES

The liabilities for Compensated Absences as at the year end were ` 665 (‘000) [Previous Period ` 691 (‘000)]. (Refer notes 5 and 8)

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
Year ended 15 months ended
March 31, 2014 March 31, 2013
in ` (‘000) in ` (‘000)
22 Depreciation and Amortisation expense
Depreciation on Tangible assets 446 524
Amortisation on Intangible assets 1,499 1,864
Total 1,945 2,388
23 Other Expenses
Legal & Professional charges 601 651
Payment to Auditors :
Statutory Audit fees 300 300
Tax Audit fees 100 100
Reimbursement of Expenses 19 14
Office expenses 171 238
Electricity 217 154
Communication expenses 269 354
Rates and taxes 49 49
Repairs and maintenance - others 140 80
Travelling and conveyance 615 646
Insurance 319 304
Total 2,800 2,890
24 Earnings Per Share (EPS)
Profit for the year/Period (in ` ‘000) 10,232 20,537
Weighted Average number of Equity shares (Nos.) 110,000 110,000
Basic and Diluted Earnings per share (in `) 93.02 186.70
Face value per Equity share (in `) 10 10
25 The Company is primarily engaged in a single segment business of clearing and forwarding of time sensitive shipments within India and is
governed by a similar set of risks and returns for all its services. Thus the segment revenue, segment result, total carrying amount of segment
assets, total carrying amount of segment liabilities, total cost incurred to acquired segments assets, the total amount of charge for depreciation
and amortisation during the year are all as reflected in the financial statements for the year ended March 31, 2014 and as on that date.
26 Related party disclosures
(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 / Period
(i) Blue Dart Express Limited Holding Company
(ii) Blue Dart Aviation Limited Enterprise over which Blue Dart Express
Limited is able to exercise significant influence.
(iii) DHL Express (India) Private Limited Enterprise where common control exists

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` (‘000) ` (‘000)
(c) Transactions with related parties during the year/period :
(i) With Holding Company
Blue Dart Express Limited
Recoveries towards air freight,etc (598,817) (563,034)
Dividend paid 44,000 -
(ii) With Enterprises over which Blue Dart Express Limited is
able to exercise significant influence.

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 SCHEDULES

Notes forming part of the Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` (‘000) ` (‘000)
Blue Dart Aviation Limited
Reimbursement of expenses (14,485) (15,562)
Service Charges (1,974) (2,101)
(iii) Other related parties where common control exists and
transactions have taken place during the year
April 01,2013 - March 31,2014
DHL Express (India ) Private Limited
Reimbursement of expenses - (11)
Service Charges - (21)
(d) Related party balances at the year/period end:
Receivable/(Payable) from Holding Company
Blue Dart Express Limited 9,625 21,561
Receivable/(Payable) - Other
DHL Express (India ) Private Limited - 12

27 DUES TO MICRO AND SMALL ENTERPRISES

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance
Sheet date. The Micro and Small Enterprises have been identified on the basis of the information available with the Company and has been
relied upon by the Auditors.

28 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The current accounting year is for twelve months from April 1, 2013 to March 31, 2014, whereas the previous accounting period was for fifteen
months from January 1, 2012 to March 31, 2013. Hence, figures for the current year are not comparable with those of the previous period.
Previous period’s figures have been regrouped/rearranged, wherever necessary to confirm to the current year’s classification.

Signatures to Notes 1 to 28 from an integral part of the financial statements.

As per our report of even date For and on behalf of the Board of Directors
For Price Waterhouse V. N. Iyer Tushar Gunderia
Firm Registration Number: 301112E Director Director
Chartered Accountants
Neeraj Gupta D. Basappa
Partner Director
Membership No. 055158
Place : Mumbai Place : Mumbai
Date: May 9, 2014 Date: May 9, 2014

110 CONCORDE AIR LOGISTICS LIMITED | FINANCIALS | ANNUAL REPORT 2013-2014

 INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Blue Dart Express Limited

1. We have audited the accompanying Consolidated Financial Statements (the “Consolidated Financial Statements”) of Blue Dart Express
Limited (“the Company”) and its subsidiary and associate company, hereinafter referred to as the “Group” (refer Note 37 to the attached
Consolidated Financial Statements), which comprise the Consolidated Balance Sheet as at March 31, 2014 and the Consolidated Statement
of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended, and a summary of significant accounting policies and
other explanatory information, which we have signed under reference to this report.

Management’s Responsibility for the Consolidated Financial Statements

2. The Company’s Management is responsible for the preparation of these Consolidated Financial Statements that give a true and fair view
of the consolidated financial position, consolidated financial performance and Consolidated Cash Flows of the Group in accordance with
accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the Consolidated Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the Consolidated Financial Statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial
Statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement
of the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal
control relevant to the Company’s preparation and fair presentation of the Consolidated Financial Statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall presentation of the Consolidated Financial Statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. We report that the Consolidated Financial Statements have been prepared by the Company’s 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 the Companies Act, 1956 read with the General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

7. In our opinion and to the best of our information and according to the explanations given to us, the accompanying Consolidated Financial
Statements give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2014;

(b) in the case of the Consolidated Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date.

For Price Waterhouse

Firm Registration Number: 301112E
Chartered Accountants

Neeraj Gupta
Place: Mumbai Partner
Date: May 9, 2014 Membership Number: 055158

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | AUDITORS’ REPORT | ANNUAL REPORT 2013-2014 111
 BLUE DART EXPRESS LIMITED (CONSOLIDATED)
BALANCE SHEET AS AT MARCH 31, 2014

Note As at March As at March

31, 2014 31, 2013
in ` Lacs in ` Lacs
EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS
Share Capital 3 2,376 2,376
Reserves and Surplus 4 61,920 63,615
64,296 65,991
NON-CURRENT LIABILITIES
Deferred Tax Liabilities (Net) 5 1,746 1,479
Long-term Provisions 6 942 966
2,688 2,445
CURRENT LIABILITIES
Trade Payables 7 10,733 7,291
Other Current Liabilities 8 11,714 8,805
Short-term Provisions 9 4,591 20,541
27,038 36,637
TOTAL 94,022 105,073
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Tangible Assets 10 18,800 18,278
Intangible Assets 10 4,001 3,786
Capital Work-in-Progress 112 486
Intangible Assets under development 734 742
23,647 23,292
Non-Current Investments 11 2,433 2,275
Long-term Loans and Advances 12 23,591 26,971
Other Non-Current Assets 13 47 31
26,071 29,277
CURRENT ASSETS
Inventories 14 272 235
Trade Receivables 15 26,672 22,721
Cash and Bank Balances 16 10,644 24,165
Short-term Loans and Advances 17 6,711 5,357
Other Current Assets 18 5 26
44,304 52,504
TOTAL 94,022 105,073

The accompanying notes are an integral part of these financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

112 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
 BLUE DART EXPRESS LIMITED (CONSOLIDATED)
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2014

Note Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
REVENUE
Revenue from Operations 19 193,828 217,171
Other Income 20 3,770 3,999
Total Revenue 197,598 221,170

EXPENSES
Freight, Handling and Servicing Costs (Net) 21 132,782 141,070
Employee Benefits Expense 22 26,658 30,019
Finance Costs 23 3 1
Depreciation and Amortisation Expense 24 2,729 3,472
Other Expenses 25 16,976 19,199
Total Expenses 179,148 193,761

PROFIT BEFORE TAX 18,450 27,409

Tax Expense:
Current Tax 6,090 8,678
Deferred Tax 267 (340)
Taxation in Respect of Earlier Years (9) -

PROFIT AFTER TAXATION, BEFORE SHARE OF ASSOCIATE’S PROFIT 12,102 19,071

Share of Associate’s Profit 158 257

PROFIT AFTER SHARE OF ASSOCIATE’S PROFIT 12,260 19,328

Earnings Per Equity Share [Refer note 26]
[Nominal value of share ` 10 each] (Previous Period - ` 10)
Basic Earnings Per Share (in `) 51.67 81.46
Diluted Earnings Per Share (in `) 51.67 81.46

The accompanying notes are an integral part of these financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014 113
 BLUE DART EXPRESS LIMITED (CONSOLIDATED)
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2014

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
A. Cash flows from Operating activities:
Profit before Taxation 18,450 27,409
Adjustments for:
Depreciation and Amortisation Expense 2,729 3,472
Interest expense 3 1
Interest income (2,830) (2,799)
Dividend from mutual funds (472) (984)
Dividend from subsidiary - -
(Gain)/Loss on sale/scrapping of fixed assets (Net) (219) 1,075
Gain on account of Foreign exchange (56) (45)
Bad debts/advances written off 100 87
Liabilities no longer required written back (164) (445)
Provision for Compensated Absences 53 390
Provision for Gratuity (481) 501
Provision for Managing Directors’ commission 75 73
Operating profit before working capital changes 17,188 28,735
Adjustments for changes in working capital:
(Increase)/Decrease in Inventories (37) 27
(Increase) in Trade Receivables (3,995) (3,864)
(Increase)/Decrease in Loans and advances (1,377) 313
Increase in Trade payables and other current liabilities 6,351 1,859
Cash generated from Operations 18,130 27,070
Taxes paid (net of refunds) (6,121) (8,819)
Net cash from Operating activities 12,009 18,251

B. Cash flows from Investing activities:

Purchase of fixed assets (3,422) (3,223)
Changes in capital work in progress 391 (1,003)
Proceeds from sale of fixed assets 309 50
Interest received/settled 2,851 2,773
Dividend from mutual funds 472 1,070
Investments in mutual funds (196,125) (218,887)
Redemptions from mutual funds 196,125 224,257
Loans granted to Associate (1,464) (3,956)
Loans repaid/settled by Associate 4,730 1,379
Inter-corporate Deposits granted to Associate (15,170) (7,505)
Inter-corporate Deposits repaid/settled by Associate 15,170 7,505
Investment in Bank fixed deposits (16) -
Net cash from Investing activities 3,851 2,460

C. Cash flows used in Financing activities:

Interest paid (3) (1)
Dividend paid (25,152) (476)
Dividend tax paid (4,274) (77)

114 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
 BLUE DART EXPRESS LIMITED (CONSOLIDATED)
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2014

Year ended 15 Months ended

March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
Net cash used in Financing activities (29,429) (554)
Net change in Cash and Cash Equivalents (13,569) 20,157
Cash and cash equivalents at the beginning of the year/period 24,158 4,001
Cash and cash equivalents at the end of the year/period 10,589 24,158

Cash and Cash Equivalents:

Cash on hand 187 80
Cheques and Drafts on hand 1,552 1,415
Balances with banks:
In current accounts 6,150 5,963
Deposits with maturity period less than 3 months 2,700 16,700
10,589 24,158
Other Bank balances:
On Unpaid dividend accounts 55 7
10,644 24,165

Notes:
1 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 the Companies Act, 1956 (the “Act”) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
2 Previous period’s figures have been regrouped/rearranged wherever necessary to conform to the current year’s classification (Refer note 36).

This is the Cash Flow Statement referred to in our report of even date.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014 115
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
1. General Information are added to its book value if it increases the future
economic benefits from the existing asset beyond its
Blue Dart Express Limited (‘the Company’) is engaged in the
previously assessed standard of performance.
business of integrated air and ground transportation and distri-
bution of time sensitive packages to various destinations, pri- Freehold land is stated at cost.
marily within India. The Company is a public limited company
Aircraft Components and Overhaul represent the cost
and is listed on the Bombay Stock Exchange (BSE) and the
of engines overhaul, components and modifications of
National Stock Exchange (NSE).
airframes owned and contractually liable to be incurred by
2 Significant Accounting Policies the Company. Such costs are depreciated/amortised on
the basis of hours flown or the life cycle of the overhaul
a. Basis of preparation
program, as applicable.
These Financial Statements have been prepared in
Capital work-in-progress comprises outstanding advances
accordance with the generally accepted accounting
paid to acquire fixed assets that are not yet ready for their
principles in India under the historical cost convention
intended use at the reporting date.
on accrual basis. Pursuant to circular 15/2013 dated
13.09.2013 read with circular 08/2014 dated 04.04.2014, Intangible Assets:
till the Standards of Accounting or any addendum thereto
Intangible assets are stated at acquisition cost net of
are prescribed by Central Government in consultation
accumulated amortisation. The Company capitalises all
and recommendation of the National Financial Reporting
costs relating to development of internally generated
Authority, the existing Accounting Standards notified
software and stated net off accumulated amortisation.
under the Companies Act, 1956 shall continue to apply.
Consequently, these financial statements have been Goodwill represents the excess of the value of the erstwhile
prepared to comply in all material aspects with the partnership business as a whole over its net asset value as
accounting standards notified under Section 211(3C) at the date of registration.
[Companies (Accounting Standards) Rules, 2006, as
Intangible assets under development comprises cost
amended] and the other relevant provisions of the
relating to development of software that are not yet ready
Companies Act, 1956.
for their intended use at the reporting date.
The Consolidated Financial Statements have been
Depreciation
prepared in accordance with Accounting Standard 21 (AS
21) - “Consolidated Financial Statements” and Accounting Depreciation on tangible assets is calculated on a
Standard 23 (AS 23) - “Accounting for Investments in straight-line basis as per the rates as prescribed under the
Associates in Consolidated Financial Statements” issued Schedule XIV to the Act, except in respect of the following
by the Institute of Chartered Accountants of India and assets where such rates arrived at are higher based on the
notified under the Companies Act, 1956 (the “Act”) read useful lives estimated by the management.
with the General Circular 15/2013 dated September 13, Office Equipment 2 to 16 years
2013 of the Ministry of Corporate Affairs in respect of Electrical Equipment 6 to 16 years
Section 133 of the Companies Act, 2013. Computers 3 to 6 years
All assets and liabilities have been classified as current or Aircraft Engines 2 to 7 years
non-current as per the Company’s normal operating cycle Aircraft 14 years
and other criteria set out in the Revised Schedule VI to Estimated useful life of the following asset which is
the Companies Act, 1956. Based on the nature of services not included in Schedule XIV has been arrived at by
and the time between the rendering of services and their management as follows:
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for the D-Check on Aircraft 7 years
purpose of current-non current classification of assets and Depreciation for assets purchased/sold during a year is
liabilities. proportionately charged. Individual assets costing upto
b. Fixed Assets and Depreciation/Amortisation ` 5,000 are depreciated over a period of one year from the
date its put to use.
Tangible Assets:
Computer software, other than internally generated, is
Tangible assets, other then freehold land, are stated at amortised under straight line method over the estimated
acquisition cost, net of accumulated depreciation. useful economic life at the rates specified in Schedule
Subsequent expenditure related to an item of fixed assets XIV to the Act, as prescribed for Computers. Internally

116 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
generated software is amortised using the straight-line custody of the airline and the master airway bill is issued.
method over a period of 10 years, based upon its estimated
Interest Income:
useful economic life.
Interest income is recognised on a time proportion basis
Goodwill is amortised over a period of 10 to 20 years using
taking into account the amount outstanding and the
the straight-line method.
applicable interest rate.
c. Impairment of Assets
Dividend Income:
The Company assesses at each reporting date whether
Dividend Income is recognised when the right to receive
there is any indication that an asset(tangible or intangible)
the dividend is established.
may be impaired. If any indication exists, the Company
estimates the asset’s recoverable amount. An asset’s g. Foreign Currency Transactions
recoverable amount is the higher of an asset’s or cash
Initial Recognition:
generating unit’s (CGU) net selling price and its value
in use. Where the carrying amount of an asset or CGU On initial recognition, all foreign currency transactions
exceeds its recoverable amount, the asset is considered are recorded by applying to the foreign currency amount,
impaired and is written down to its recoverable amount. the difference in exchange rates between the reporting
Impairment losses are recognised in the Statement of currency and the foreign currency at the date of the
Profit and Loss. Assessment is also done at each Balance transaction.
Sheet Date as to whether there is any indication that an Exchange differences on restatement of monetary assets
impairment loss recognised for an asset in prior accounting and liabilities denominated in foreign currencies are
periods may no longer exist or may have decreased. recognised in the Statement of Profit and Loss.
d. Investments h. Employee Benefits
Investments, which are readily realizable and intended to Defined Contribution Plans:
be held for not more than one year from the date on which
such investments are made, are classified as current Contribution towards Provident Fund is made to the
investments. All other investments are classified as non- regulatory authorities, where the Company has no further
current investments. obligations. Such benefits are classified as Defined
Contribution Schemes as the Company does not carry any
Current investments are carried at cost or fair value further obligations, apart from the contributions made on a
whichever is less. Non-current investments are stated at monthly basis.
cost. Provision for diminution in value is made, if necessary,
to recognise a decline, other than temporary, in the value Superannuation is classified as a defined contribution
of such investments. scheme of the Company. Contribution due towards
Superannuation Fund for certain employees is made to an
e. Inventories insurance company, and has no further obligation beyond
Inventories are stated at lower of cost and net realisable making the payment.
value. The Company contributes to State plans, namely
Inventories primarily consist of packing and stationery Employee’s State Insurance Fund and Employee’s
consumables which are valued at cost (arrived at using Pension Scheme 1995, and has no further obligation
First-in First-out basis). beyond making its contribution.
f. Revenue Recognition Company’s contributions to the above funds are charged
to the Statement of Profit and Loss for the year when the
Service Charges:
contributions are due for payment.
Service charges for transportation and for clearing and
Defined Benefit Plans:
forwarding of shipments are recognised as income when
shipments are manifested and represent amounts invoiced, Gratuity: The Company provides for gratuity, under
net of service tax and all discounts and allowances. a defined benefit plan (the “Gratuity Plan”) covering
eligible employees in accordance with the Payment of
Commission Income:
Gratuity Act, 1972. The Gratuity Plan provides a lump
Commission is accrued when cargo is delivered to the sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an
amount based on the respective employee’s salary and

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014 117
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
the tenure of employment. The Company’s liability is Deferred tax is recognised for all timing differences,
actuarially determined (using the Projected Unit Credit subject to consideration of prudence, in respect of deferred
Method) at the end of each year. Actuarial losses/gains tax assets. Deferred tax assets are recognised and carried
are recognised in the Statement of Profit and Loss in forward only to the extent that there is a reasonable
the year in which they arise. certainty (virtual certainty in respect of any carried forward
losses) that sufficient future taxable income will be
Compensated absences
available against which such deferred tax assets can be
(i) Accumulated compensated absences, which are expected realised. Deferred tax assets and liabilities are measured
to be availed or encashed within 12 months from the using the tax rates and tax laws that have been enacted
end of the Balance Sheet Date are treated as short term or substantively enacted by the Balance Sheet Date.
employee benefits. The liability in respect of compensated At each Balance Sheet Date, the Company reassesses
absences of short term nature is not actuarially valued and unrecognised deferred tax assets, if any.
is provided on an estimated basis.
Current tax assets and current tax liabilities are offset when
(ii) Accumulated compensated absences, which are expected there is a legally enforceable right to set off the recognised
to be availed or encashed beyond 12 months from the amounts and there is an intention to settle the asset and
end of Balance Sheet Date are treated as other long term the liability on a net basis.
employee benefits. The Company’s liability is actuarially
k. Provisions
determined (using the Projected Unit Credit Method) at the
end of each year. Actuarial losses/gains are recognised in Provisions are recognised when there is a present
the Statement of Profit and Loss in the year in which they obligation as a result of a past event, it is probable that
arise. an outflow of resources embodying economic benefits will
be required to settle the obligation and there is a reliable
i. Leases
estimate of the amount of the obligation. Provisions are
Leases in which a significant portion of the risks and measured at the best estimate of the expenditure required
rewards of ownership are retained by the lessor are to settle the present obligation at the Balance Sheet Date
classified as operating leases. Operating lease rental and are not discounted to its present value.
payments are recognized as an expense in the Statement
l. Contingent Liabilities
of Profit and Loss on a straight line basis over the lease
term. Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
j. Current and Deferred Tax
will be confirmed only by the occurrence or non occurrence
Tax expense for the year, comprising current tax and of one or more uncertain future events not wholly within the
deferred tax, are included in the determination of the control of the Company or a present obligation that arises
net profit or loss for the year. Current tax is measured from past events where it is either not probable that an
at the amount expected to be paid to the tax authorities outflow of resources will be required to settle or a reliable
in accordance with the taxation laws during the relevant estimate of the amount cannot be made.
assessment year.

118 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
3. Share Capital
Authorised

4,00,00,000 equity shares of ` 10 each 4,000 4,000
Issued, Subscribed and Paid up
2,37,27,934 equity shares of `10 each fully paid-up 2,373 2,373
Add: Forfeited Shares 3 3

Total 2,376 2,376

a. Reconciliation of the number of shares As at 31st March, 2014 As at 31st March, 2013
Number of shares Amount (` in lacs) Number of shares Amount (` in lacs)
Balance as at the beginning of the year/period 2,37,27,934 2,373 2,37,27,934 2,373
Additions/Deletions during the year/period - - - -
Balance as at the end of the year/period 2,37,27,934 2,373 2,37,27,934 2,373

b. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ` 10 per share. Each shareholder of equity shares is entitled to
one vote per share.
The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their share holding.
c. Shares held by holding company
Out of the above equity shares issued by the Company, shares held by the holding company:
As at As at
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
DHL Express (Singapore) Pte. Limited, the Holding Company
1,77,95,950 (Previous Period: 1,77,95,950) equity shares of ` 10 each fully paid up 1,780 1,780
d. Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
As at 31st March, 2014 As at 31st March, 2013
Number of shares % held as at Number of shares % held as at
DHL Express (Singapore) Pte. Ltd. Singapore 1,77,95,950 75.00% 17,795,950 75.00%
Derive Trading Private Limited (along
with persons acting in concert) 1,270,147 5.35% 1,282,239 5.40%

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014 119
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
4 RESERVES AND SURPLUS
Securities Premium Reserve
Balance as at the beginning of the year/period 3,941 3,941
Addition/Utilisation during the year/period - -
Balance as at the end of the year/period 3,941 3,941
General Reserve
Balance as at the beginning of the year/period 5,282 3,395
Add: Transferred from Surplus in Statement of Profit and Loss 1,289 1,887
during the year/period
Balance as at the end of the year/period 6,571 5,282
Surplus in the Statement of Profit and Loss
Balance as at the beginning of the year/period 54,392 56,661
Add: Profit for the year/period 12,260 19,328
Less: Appropriations
Interim Dividend 8,305 -
Proposed Dividend 3,559 16,847
Dividend Distribution Tax 2,091 2,863
Transfer to General Reserve 1,289 1,887
Balance as at the end of the year/period 51,408 54,392
Total 61,920 63,615

5 DEFERRED TAX LIABILITY (NET)

[Refer note 2(j)]
Deferred Tax Liability
Depreciation 2,485 2,374
Gross Deferred Tax Liability 2,485 2,374
Deferred Tax Asset
Provision for Compensated Absences 440 422
Provision for Bonus 249 267
Provision for Gratuity 25 188
Others 25 18
Gross Deferred Tax Asset 739 895
Total 1,746 1,479

120 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
6 LONG-TERM PROVISIONS
Provision for Employee Benefits:
Provision for Gratuity 20 19
Provision for Compensated Absences [Refer notes 2(h), 2(k) and 22] 922 947
Total 942 966

7 TRADE PAYABLES
Trade Payables (Refer note 30 for details of dues to Micro and Small Enterprises) 10,733 7,291
Total 10,733 7,291

8 OTHER CURRENT LIABILITIES

Employee Benefits Payable 1,259 1,307
Unpaid Dividends (Refer note below) 55 7
Statutory Dues (including Provident Fund, Superannuation,
Employees State Insurance and Tax Deducted at Source) 386 393
Trade Deposits 1,250 1,219
Payables towards ‘Cash on Delivery’ shipments (Refer note 16) 4,847 3,643
Other payables 3,917 2,236
Note: There are no amounts due for payment to the Investor Education
and Protection Fund under Section 205(C) of the Companies Act, 1956 as at period end
Total 11,714 8,805

9 SHORT TERM PROVISIONS

Provision for Employee Benefits:
Provision for Gratuity [Refer notes 2(h), 2(k) and 22] 54 536
Provision for Compensated Absences [Refer notes 2(h), 2(k) and 22] 373 295
Other Provisions:
Provision for Proposed Dividend on Equity Share 3,559 16,847
Provision for Dividend Distribution Tax on Proposed Dividend on Equity Share 605 2,863
Total 4,591 20,541

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
10. FIXED ASSETS
[Refer notes 2(b), 2(c), 24 and 31] in ` Lacs
Description of Assets GROSS BLOCK (At Cost) DEPRECIATION NET BLOCK
Opening Closing Opening Closing Closing Closing
Balance Balance Balance Balance Balance Balance
Deductions/ For the Deductions/
as at Additions as at as at as at as at as at
Adjustments Year Adjustments
April March April March March March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Tangible Assets:
Land - Freehold 3,963 - - 3,963 - - - - 3,963 3,963
Buildings 2,034 - 1 2,033 466 52 0* 518 1,515 1,568
Office Equipment 1,806 236 60 1,982 617 126 48 695 1,287 1,189
Electrical Equipment 3,926 425 99 4,252 1,484 274 72 1,686 2,566 2,442
Computers 5,653 1,369 394 6,628 3,784 616 391 4,009 2,619 1,869
Furniture and Fixtures 6,261 485 127 6,619 1,998 410 90 2,318 4,301 4,263
Vehicles 464 42 164 342 318 32 151 199 143 146
Aircraft Engines 1,087 - - 1,087 1,087 - - 1,087 - -
Aircraft 3,002 - - 3,002 1,881 203 - 2,084 918 1,121
Aircraft Components and
Overhaul 2,052 - - 2,052 1,786 45 - 1,831 221 266
D-Check on Aircraft
[Refer Note (a) below] 1,146 - - 1,146 1,146 - - 1,146 - -
Ground Handling Equipment 864 29 (8) 901 208 44 0* 252 649 656
Machinery and Equipment 1,155 16 12 1,159 360 187 6 541 618 795
Total Tangible Assets 33,413 2,602 849 35,166 15,135 1,989 758 16,366 18,800 18,278
Previous Period 33,660 2,997 3,244 33,413 14,388 2,563 1,816 15,135 18,278

Description of Assets GROSS BLOCK (At Cost) AMORTISATION NET BLOCK

Opening Closing Opening Closing Closing Closing
Balance Balance Balance Balance Balance Balance
Deductions/ For the Deductions/
as at Additions as at as at as at as at as at
Adjustments Year Adjustments
April March April March March March
1, 2013 31, 2014 1, 2013 31, 2014 31, 2014 31, 2013
Intangible Assets:
Goodwill 449 - - 449 433 15 - 448 1 16
Internally Generated Software 2,016 381 - 2,397 252 202 - 454 1,943 1,764
Computer Software 3,791 573 2 4,362 1,785 523 3 2,305 2,057 2,006

Total Intangible Assets 6,256 954 2 7,208 2,470 740 3 3,207 4,001 3,786
Previous Period 5,863 345 (48) 6,256 1,817 909 256 2,470 3,786
* Amount is below the rounding off norm adopted by the Company
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. During the previous period, an amount of ` 301 Lacs from the block of Computers, and ` 1,715 Lacs from the block of Computer Software had
been restated/reclassified into Internally generated software aggregating to ` 2,016 Lacs. Consequently, depreciation for the previous period
was lower by ` 156 Lacs and Profit Before Tax was higher by the same amount.
c. Deductions/Adjustments include reclassification from one category to another category of asset.

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
11 NON-CURRENT INVESTMENTS
Trade investments (valued at cost)
[Refer note 2(d)]
Unquoted equity investments
Investment in Associate
1,17,60,000 (Previous Period - 1,17,60,000 ) equity shares of `10
each in Blue Dart Aviation Limited 1,831 1,831
Add: Group’s share of Profit 602 444
Total 2,433 2,275
Aggregate amount of unquoted investments 2,433 2,275
Other Investments (valued at cost unless stated otherwise)
In Government Securities - Unquoted
National Saving Certificates (6 year NSCs - VIII issue) 0* 0*
[Given as security to the Custom Authorities]
0* 0*
* Amount is below the rounding off norm adopted by the Company

12 LONG-TERM LOANS AND ADVANCES

(Unsecured, considered good, unless otherwise stated)
Loan to Associate (Refer note 33) 15,930 19,499
Aircraft Payload Deposit to Associate 2,150 2,150
Advance income tax [net of provision for taxation
` 30,571 (in lacs), Previous period ` 24,415 (in lacs)] [Refer note 2(j)] 1,334 1,369
Capital advances 86 188
Deposits 4,014 3,706
Other loans and advances:
Prepaid expenses 77 59
Total 23,591 26,971

13 OTHER NON-CURRENT ASSETS

Margin money deposit 33 18
Long term deposits with banks with maturity period more than 12 months 14 13
Total 47 31

14 INVENTORIES [Refer note 2(e)]

Packing and Stationery Consumables 272 235
Total 272 235

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
15 TRADE RECEIVABLES [Refer note 29(D)(i)]
(Unsecured, considered good)
Outstanding for a period exceeding six months from the date they are due for payment - -
Other receivables 26,672 22,721
Total 26,672 22,721

16 CASH AND BANK BALANCES

Cash and Cash Equivalents:
Cash on hand 187 80
Cheques and Drafts on hand 1,552 1,415
Balances with banks:
In current accounts 6,150 5,963
Deposits with maturity period less than 3 months 2,700 16,700
10,589 24,158
Other Bank balances:
Unpaid dividend accounts 55 7
Deposits with maturity period more than 3 months but less than 12 months - -
Total 10,644 24,165
Bank balances in current account includes ` 3,902 (lacs) [Previous Period - ` 3,519 (lacs)]
being collections on ‘Cash on Delivery’ shipments held on behalf of customers. (Refer note 8)

17 SHORT-TERM LOANS AND ADVANCES

(Unsecured, considered good, unless otherwise stated)
Loan to Associate (Refer note 33) 3,569 3,266
Other loans and advances:
Prepaid expenses 748 629
Loan and advances to employees 40 54
Octroi Recoverable 821 988
Balances with Government Authorities 316 230
Others 1,217 190
Total 6,711 5,357
Loans to employees include:
Due from an officer 12 15

18 OTHER CURRENT ASSETS

(Unsecured, considered good)
Interest accrued on Deposits 5 26
Total 5 26

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year Ended 15 Months Ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
19 REVENUE FROM OPERATIONS

Service charges [Refer note 2(f)] 193,619 216,636

Other Operating income:
Liability no longer required written back 164 445
Commission 45 90
Total 193,828 217,171

20 OTHER INCOME
Dividend from Mutual Funds 472 984
Gain on sale/scrapping of fixed assets (Net) 219 -
Interest on Loan to Associate [Refer note 2(f)] 2,262 2,616
Interest on Inter-Corporate Deposit to Associate [Refer note 2(f)] 155 54
Interest on deposits with banks [Refer note 2(f)] 413 129
Net Gain on Foreign Currency Transactions and Translation 56 45
Miscellaneous income 193 171
Total 3,770 3,999

21 FREIGHT, HANDLING AND SERVICING COSTS

Aircraft charter costs 62,562 71,227
Domestic network operating costs 42,744 42,980
International servicing charges 10,447 10,762
Domestic excess baggage 9,501 8,576
Handling and clearing charges 5,011 4,995
Printing, stationery and consumables 2,517 2,530
Total 132,782 141,070

22 EMPLOYEE BENEFITS EXPENSE

Salaries, Bonus and Leave Encashment 22,876 25,323

Contribution to Provident and other funds 1,472 1,604
Gratuity 65 778
Staff welfare expenses 2,245 2,314
Total 26,658 30,019

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
The Company has classified the various employee benefits provided to employees as under:

I Defined Contribution Plans

a. Superannuation Fund
b. State Defined Contribution Plans
i. Employers’ Contribution to Employee’s State Insurance
ii. Employers’ Contribution to Employee’s Pension Scheme 1995
During the year/period, the Company has recognised the following amounts in the Statement of Profit and Loss under “Contribution to Provident
and other funds” -
Year Ended 15 Months Ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
- Employers’ Contribution to Provident Fund 498 528
- Employers’ Contribution to Superannuation Fund 71 86
- Employers’ Contribution to Employee’s State Insurance 369 397
- Employers’ Contribution to Employee’s Pension Scheme 1995 428 477

II Defined Benefit Plans

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 March As at March
31, 2014 31, 2013
Discount Rate (per annum) 9.31% 8.00%
Rate of increase in Compensation levels (refer note below) 7.25% / 6.75% 7.25% / 6.75%
Rate of Return on Plan Assets 9.31% 8.00%
The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other
relevant factors, such as demand and supply in the employment market.
Year Ended 15 Months Ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs

A) Changes in the Present Value of Obligation

Present Value of Obligation at the beginning of the year/period 3,164 2,353

Interest Cost 254 272
Past Service Cost NIL NIL
Current Service Cost 281 265
Curtailment Cost/(Credit) NIL NIL
Settlement Cost/(Credit) NIL NIL
Benefits Paid (167) (236)
Acturial (gain)/loss on obligations (227) 510
Present Value of Obligation as at year/period end 3,305 3,164
B) Changes in the Fair value of Plan Assets

Fair Value of Plan Assets at the beginning of the year/period 2,609 2,299
Expected Return on Plan Assets 209 223
Acturial Gains and (Loss) on Plan Assets 33 47
Contributions 547 272
Benefits Paid (167) (232)
Fair Value of Plan Assets at year/period end 3,231 2,609

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
C) Reconciliation of Present Value of Defined Benefit Obligation and the Fair value of Assets
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
Present Value of funded obligation as at the year/period end 3,305 3,164
Fair Value of Plan Assets as at the end of the year/period 3,231 2,609
Funded Status (74) (555)
Present Value of unfunded Obligation as at the year/period end (74) (555)
Unrecognised Actuarial (gains)/losses NIL NIL
Unfunded Net Liability recognised in Balance Sheet (74) (555)
D) Amount recognised in the Balance Sheet
Present Value of Obligation at the end of the year/period (3,305) (3,164)
Fair Value of Plan Assets at year/period end 3,231 2,609
Liability recognised in the Balance Sheet (74) (555)
Recognised under:
Long term provisions (Refer note 6) 20 19
Short term provisions (Refer note 9) 54 536

E) Expenses recognised in the Statement of Profit and Loss

Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
Current Service Cost 281 265
Past Service Cost NIL NIL
Interest Cost 254 272
Expected Return on Plan Assets (209) (223)
Curtailment Cost/(Credit) NIL NIL
Settlement Cost/(Credit) NIL NIL
Net actuarial (gain)/loss recognised in the year/period (261) 464
Total expenses/(gain) recognised in the Statement of Profit and Loss 65 778

F) Percentage of each category of Plan Assets to total Fair Value of Plan Assets
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 Regulatory and Development Authority (‘IRDA’) regulations.

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
G) Expected gratuity contribution for the next year is aggregating ` 324 (lacs) [Previous Period ` 567 (lacs)].
I. Net Asset/(Liability) recognised in Balance Sheet:
Year ended Period ended Year ended Year ended Year ended
March March December December December
31, 2014 31, 2013 31, 2011 31, 2010 31, 2009
in ` Lacs
a) Present Value of Obligation at the close of the year/period 3,305 3,164 3,164 (2,121) (1,762)
b) Fair Value of Plan Assets at the close of the year/period 3,231 2,609 2,299 2,029 1,706
c) Asset/(Liability) recognised in the Balance Sheet (74) (555) (555) (91) (56)
Change in Define Benefit Obligation (DBO) during
the year/period
d) Actuarial (gain)/loss (227) 510 (65) 84 (204)
Change in the Fair Value of Plan Assets
e) Actuarial gain/(loss) 33 47 33 (10) 19
Experience Adjustments
f) Experience Adjustment on plan liabilities (gain)/loss 238 (6) 149 84 (86)
g) Experience Adjustment on plan assets (gain)/loss (33) (47) 33 (10) 19

II. Actuarial Assumptions:

Year ended Period ended Year ended Year ended Year ended
March March December December December
31, 2014 31, 2013 31, 2011 31, 2010 31, 2009
Discount Rate 9.31% 8.00% 9.25% 8.50% / 8.25% 8.50% / 8.25%
Expected Return on Plan Assets 9.31% 8.00% 7.75% 7.75% 7.75%
Salary Growth Rate 7.25% / 6.75% 7.25% / 6.75% 7.25% / 6.75% 7.25% / 6.75% 7.25% / 6.75%
Attrition Rate 1.00% 1.00% 1.00% 1.00% 1.00%

III. Compensated Absences:

The liabilities for Compensated Absences as at year end were ` 1,295 (lacs) [Previous Period ` 1,242 (lacs)] (Refer note 6 and 9)

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
23 FINANCE COSTS
Interest on Bank Overdraft 3 1
Total 3 1
24 DEPRECIATION AND AMORTISATION EXPENSE
Depreciation on Tangible assets 1,989 2,563
Amortisation on Intangible assets 740 909
Total 2,729 3,472
25 OTHER EXPENSES
Rent [Refer note 2(i)] 7,735 8,571
Office expenses 1,941 1,915
Security expenses 1,553 1,618
Electricity 1,458 1,523
Repairs and maintenance - others 1,261 1,262
Communication expenses 808 1,022
Directors sitting fees 5 7
Legal and professional 556 504
Payment to Auditors
As auditor:
Statutory Audit fees 43 43
Tax Audit fees 6 9
Reimbursement of Expenses 11 8
Other Matters 34 33
Rates and taxes 462 494
Travelling and conveyance 282 298
Lease rentals [Refer note 2(i)] 225 262
Insurance 266 235
Sales promotion and advertising 198 215
Bad debts written off 100 87
Loss on sale/scrapping of fixed assets (Net) - 1,075
Miscellaneous expenses 32 18
Total 16,976 19,199

26 EARNINGS PER SHARE

Profit for the year/period 12,260 19,328
Weighted average number of shares (Nos.) 23,727,934 23,727,934
Basic and Diluted Earnings Per Share (In `) 51.67 81.46
Nominal value of shares outstanding (In `) 10 10

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
27 OPERATING LEASES [Refer note 2(i)]
a. The Company has entered into various non-cancellable operating lease agreements for official/residential premises for a period of two to
five years. Future minimum rentals payable under non-cancellable operating leases are as follows:
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
Not later than one year 2,014 2,271
Later than one year and not later than five years 2,154 2,594
Later than five years. 351 103
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 ` 365 (lacs) [Previous period ` 400 (lacs)] has been included under the head “Employee Benefits
Expense - Salaries, Bonus and Leave Encashment” under Note 22 forming part of the Statement of Profit and Loss. Lease rentals for
office equipments of ` 225 (lacs) [Previous period ` 262 (lacs)] has been included under the head “Other Expenses - Lease Rentals”
under Note 25 forming part of the Statement of Profit and Loss and lease rentals for official and residential premises of ` 4,601 (lacs)
[ Previous period ` 5,504 (lacs)] has been included under the head “Other Expenses - Rent” under Note 25 forming part of the Statement
of Profit and Loss.
28 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.
29 RELATED PARTY DISCLOSURES
(A) Names of related parties and related party relationship
(i) Enterprises where control exists
Ultimate Holding Company Deutsche Post AG, Germany
Holding Company DHL Express (Singapore) Pte. Limited, Singapore
Fellow Subsidiary Company DHL Express (India) Private Limited, India
Fellow Subsidiary Company DHL Supply Chain India Private Limited, India
(Effective from February 1,2014)
Fellow Subsidiary Company DHL Logistics Private Limited, India
Fellow Subsidiary Company Skyline Air Logistics Limited, India
Associate Company Blue Dart Aviation Limited, India
(ii) Key Management Personnel
Managing Director Anil Khanna

(B) Related party relationships where transactions have taken place during the year/period
(i) Enterprises where control exists
Holding Company DHL Express (Singapore) Pte. Limited, Singapore
Fellow Subsidiary Company DHL Express (India) Private Limited, India
Fellow Subsidiary Company DHL Supply Chain India Private Limited, India
(Effective from February 1, 2014)
Fellow Subsidiary Company DHL Logistics Private Limited, India
Associate Company Blue Dart Aviation Limited, India
(ii) Key Management Personnel
Anil Khanna Managing Director

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 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
Year ended 15 Months ended
March 31, 2014 March 31, 2013
in ` Lacs in ` Lacs
(C) Transactions with related parties during the year/period
(i) With Holding/Subsidiary/Fellow Subsidiaries/Associate Company
DHL Express (Singapore) Pte. Limited
Dividend paid 18,864 385
DHL Express (India) Private Limited
International servicing cost 10,447 10,762
Domestic service charges income (5,713) (6,477)
Reimbursements of expenses 25 57
DHL Supply Chain India Private Limited
Domestic service charges income (505) -
Deposit received/(paid) (11) -
DHL Logistics Private Limited
Domestic service charges income (2,427) (3,365)
Deposit received/(paid) - 11
Reimbursements of expenses 14 16
Blue Dart Aviation Limited
Aircraft Charter Service Cost 62,562 71,150
Inter Corporate Deposit Granted 15,170 7,505
Inter Corporate Deposit settled/adjusted (15,170) (7,505)
Inter Corporate Loan granted 1,464 3,956
Inter Corporate Loan settled/adjusted (4,730) (1,379)
Interest income on Loan (2,262) (2,616)
Interest income on Inter-Corporate Deposit (155) (54)
Domestic service charges income (35) (36)
Reimbursements towards air freight, etc 145 156
Recoveries towards Agency charges 20 21
(ii) Corporate guarantees given on behalf of Blue Dart Aviation Limited 10,600 4,600
Note:For the external loan taken by the associate during the year the debt
covenants will be met by the company (Previous period- Not Applicable).
(iii) With Key Management Personnel
Anil Khanna
Remuneration 218 249
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
(D) Related party balances as at the year/period end
(i) Receivable/(Payable) from/to Subsidiary/
Fellow Subsidiaries/Associate company
DHL Express (India) Private Limited (Net) (1,750) (1,428)
DHL Supply Chain India Private Limited (Net) 856 -
DHL Logistics Private Limited (Net) 39 353
Blue Dart Aviation Limited (Net) 20,796 24,756
(ii) Payable to Key Management Personnel
Anil Khanna 75 73

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
30 DUES TO MICRO AND SMALL ENTERPRISES
Principal amount due to suppliers registered under the MSMED Act and remaining

unpaid as at year/period end 191 124
Interest due to suppliers registered under the MSMED Act and remaining
unpaid as at year/period end 2 1
Principal amounts paid to suppliers registered under the MSMED Act beyond the
appointed day during the year/period 6 10
Interest paid, other than under Section 16 of MSMED Act to suppliers registered
under the MSMED Act beyond the appointed day during the year/period - -
Interest paid, under Section 16 of MSMED Act to suppliers registered under the
MSMED Act beyond the appointed day during the year/period - -
Interest due and payable towards suppliers registered under MSMED
Act for payments already made - *0
Further interest remaining due and payable for earlier years 1 1
* Amount is below the rounding off norm adopted by the Company
The above information regarding Micro, Small and Medium Enterprises given in note 7 - Trade Payables has been determined to the extent
such parties have been identified on the basis of information available with the Company.
As at March As at March
31, 2014 31, 2013
in ` in `
DETAILED BREAK-UP OF INTEREST IS AS FOLLOWS:
Interest due to suppliers registered under the MSMED Act and remaining 150,102 121,285
unpaid as at year end
Interest due and payable towards suppliers registered under MSMED Act - 9,694
for payments already made
Further interest remaining due and payable for earlier years 121,285 108,011
Interest Charge to Statement of Profit and Loss 28,817 13,274
As at March As at March
31, 2014 31, 2013
in ` Lacs in ` Lacs
31 CAPITAL AND OTHER COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and not provided for [net of advances ` 86 (lacs)
(Previous Period ` 188 (lacs)] 618 1,204
32 CONTINGENT LIABILITIES [Refer note 2(l)]
Claims against the Company not acknowledged as debt
a) Penalty under Kerala Value Added Tax Act, 2003 909 -
During the year, the Company received an order and penalty notices from the Department of Commercial Taxes, Kerala claiming that Cash
on Delivery (COD) sales made are to be considered as local Kerala sales liable to VAT in Kerala and the Company is a selling agent to its
customers for such COD sales shipments delivered in Kerala and therefore liable to pay VAT.

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Notes forming part of Financial Statements as of and for the year ended March 31, 2014
The Company has filed a Writ Petition against the order passed by the Department of Commercial Taxes, Kerala which has been admitted
by the Honourable Kerala High Court with directions issued to the Revenue Authorities to file its counter statement and in the interim has
directed the Revenue Authorities not to initiate recovery proceedings.
In response to the said penalty notices and based on the legal counsel advise received, the Company has filed its reply submitting that on
various grounds it is a settled position of law that the sales are inter-state sales and not a local sale in Kerala, hence provisions of the said
Kerala VAT Act are not applicable and in any event the Company cannot be considered as a selling agent of its customers and therefore
should not be considered as liable to penalties on transactions carried out by third parties.
b) Stamp Duty - Karnataka Not ascertainable Not ascertainable
In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka
Stamp Act, 1957, based on the legal counsel advise received, the Company has filed its reply with both those authorities submitting that
on various grounds, it does not consider an air waybill to be an ‘acknowledgement’ chargeable to stamp duty under the Schedule of the
said Act.
33 During the year, the Company has further granted an unsecured interest bearing loan 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 of `1,464 (lacs) [Previous period `3,956 (lacs)] and received a repayment of `4,730 (lacs) [Previous period `1,379 (lacs)]. As at
March 31, 2014 the outstanding loan balance is `19,499 (lacs), [Previous period `22,765 (lacs)] of which `3,569 (lacs) [Previous period `3,266
(lacs)] is receivable within 12 months of balance sheet date. In respect of the aforesaid loans which have been granted in tranches, the principal
amount for one tranche is repayable over three years with the first year as moratorium and for the balance tranches is repayable over seven
years with the first two years as moratorium. The loan carries an interest computed at an average ‘base’ rate of IDBI Bank and ICICI Bank with
an interest re-set bi-annually.

34 REMITTANCE IN FOREIGN CURRENCY ON ACOUNT OF DIVIDENDS:

Year ended 15 Months ended
March 31, 2014 March 31, 2013
Number of Non-resident shareholders 1 1
Number of Equity Shares held 1,77,95,950 1,92,27,887
Amount of dividend remitted (in ` Lacs) 12,635 385
Year to which dividend relates January 1, 2012 to January 1, 2011 to
March 31, 2013 December 31, 2011
Amount of Interim dividend remitted 6,229 -
Year to which Interim dividend relates April 1, 2013 to -
March 31, 2014 -
35 The Board of Directors of the Company in its meeting held on October 15, 2013 approved a ‘Scheme of Arrangement’ under Sections 391
and any other applicable provisions of the Companies Act, 1956 and/or Companies Act, 2013 (the “Scheme”) for issuance of unsecured,
redeemable, non-convertible, fully paid up debentures of ` 10/- each (Rupees Ten Only), by way of Bonus, to be allotted out of Surplus in
the Statement of Profit and Loss of the Company, to the shareholders as viz; 7 Debentures under Series I Debentures, 4 Debentures under
Series II Debentures and 3 Debentures under Series III Debentures respectively for every 1 (one) equity share of the Company held by the
Shareholders on the Record date to be fixed for this purpose.
BSE Ltd. and National Stock Exchange of India Ltd. have given their no-objection to the Scheme vide their letter dated March 21, 2014. Further,
the Hon’ble Bombay High Court has directed that a meeting of the (i) Equity Shareholders; and (ii) unsecured creditors of the Company be
convened on Friday, June 13, 2014 at 10:00 am and 1:00 pm respectively at Hotel Hilton, Andheri (East), Mumbai, for the approval of Scheme.
The Company is in process of issuing notice of Court Convened Meeting to Equity Shareholders of the Company.

BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014 133
 SCHEDULES

Notes forming part of Financial Statements as of and for the year ended March 31, 2014
36 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
The current accounting year is for twelve months from April 1, 2013 to March 31, 2014, whereas the previous accounting period was for
fifteen months from January 1, 2012 to March 31, 2013. Hence, figures for the current year are not comparable with those of the previous
period. Previous period’s figures have been regrouped/rearranged, wherever necessary to confirm to the current year’s classification.
37 (a) The subsidiaries (which along with Blue Dart Express Limited, the parent, constitute the Group) considered in the Consolidated Financial
Statements are:
Name of the Company Country of Incorporation % voting power % voting power
held as at held as at
March 31, 2014 March 31, 2013

Concorde Air Logistics Limited

(with effect from May 11, 2004) India 100% 100%

(b) Investment in Associate
Blue Dart Aviation Limited
(with effect from March 11, 2005) India 49% 49%

Signatures to Notes 1 to 37 form an integral part of the financial statements.

As per 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
Suresh G. Sheth Yogesh Dhingra Tushar Gunderia
Neeraj Gupta Director Chief Financial Officer & Company Secretary
Partner Chief Operating Officer
Membership No. 055158

Place: Mumbai Place: Mumbai

Date: May 9, 2014 Date: May 9, 2014

134 BLUE DART EXPRESS LIMITED (CONSOLIDATED) | FINANCIALS | ANNUAL REPORT 2013-2014
Notes:

135
 Notes:

136