ISSUE 1 | AUGUST 2018

THE BEACON A KERRY INDEV ISSUE

I� thi� Editio� Chariman's Message

Kerry Indev Acquires Velex India

Kerry Logistics New Agent for US Air Imports

Kerry Indev's New Shipping Venture - The PACC Lines

An Article from the CFO's Desk

Our Esteemed Customer Mr. Rajender Hinduja shares his Experience

Team Meeting & Awards

HR Highlights

2018

We over the past 3 decades have kept redefining the existing things in a modern way. We maintain a single point of agenda for rendering services. I believe, by working together in an environment of trust and support, we would be able to achievore success and fame in the years to come. A core part of our long-term strategy is the desire to work with world-class partners across the group and as part of this, in 2016 we signed a landmark deal with the KERRY LOGISTICS, HONGKONG led to the creation of the “KERRY INDEV LOGISTICS, INDIA”. Since we combined our regional experiences with the KERRY GROUP’s industry knowledge to build a broad-based and sustainable relationship to enhance better businesses across the globe. We are proud of our past and passionate about our future and keep continuing the way we work. We are blessed with capable, caring professionals who go the extra mile to fulfill our corporate mission and meet their high personal standards. We are sharpening our strategy to be one of the world’s most valuable, most innovative and most admired companies.

Chairma�'� Messag�

Kerr� Indev Acquire� Vel� Indi�

Kerry Indev has signed a Binding Offer to make a strategic investment in Velex on 16-04-18 to supplement & compliment each other in the Last Mile Connectivity in India. We will be the First entrant in the Industry to provide First Mile - Last Mile Connection with Kerry’s Global Network to Kerry Indev’s Comprehensive Logistics Solution. Kerry Indev is evolving from B2B to B2C player.

Velex Logistics Private Limited was established during July 2013 which is

primarily engaged in business of last mile delivery, especially

to cater e-com industry and

premium document segments for Banks

/ Government agencies.

Now Velex has its presence in six

states and servicing nearly 1500

pincodes. Flipkart, Snapdeal, NSDL, ICICI Bank, Kotak Bank, Citi Bank is some of its major

customers, to name a few.

Mr. Xavier Britto Announcing the LaunMr. Xavier Britto Announcing the Laun……Watch later Share

Our Chairman has foreseen a Turnover of Rs.100 Crores in Velex in 2 years’ time from now by reaching 5000 pin codes across India. Chairman informed the team that Mr. Parthiban will take over as CFO of Velex Logistics with immediate effect. He also indicated that in due course of time, Velex will be renamed as Kerry Indev Express, and the vehicles of Velex may start running with Kerry Indev name and logo.

Kerr� Indev'� new shippin� ventur� - �� PACC Lin� /PCL

Kerry Indev's new shipping venture, the PACC Line, operates out of eight major ports across the Indian coastline. We own and operate

dry bulk vessels, gas carriers, tankers, multi-purpose vessels as well as feeders and container ships.

The biggest tax reform since independence, Goods and Services Tax (GST) was launched in the midnight of June 30, 2017.It has been one year since INDIA’s switchover to this new indirect taxation system. One single tax has subsumed over a dozen taxes and multiple cesses imposed by the Central and the State Governments. During pre-GST regime, it was a mandatory case for every assessee -

i) to file multiple returns with different authorities under different statues; ii) to interface with multiple inspectors and assessing authorities; iii) to suffer the cascading effect of having to pay tax even on the tax component already paid; iv) to pay tax separately in every State when movement of goods took place; v) to suffer the inordinate delays of multiple checkpoints and obstacles;

GST- A� overview a�er � year of it� implementatio� i� Indi�

Articl� b� Mr. Vishwanatha�, CFO

The very basic idea of the Goods and Services Tax was not originated in India itself. It was experimented in several countries of the world. The Indian model had to be devised keeping several facts in mind. An indirect tax, unlike a direct tax, is regressive. The rate cannot be different for the wealthy and the not so wealthy as in the case of a direct tax. But in the selection of the commodities which are tax-free or less taxed, a differential could be made in a society like India. Another aspect is that India had multiple markets, each constituting a different market, which needed to be consolidated. In addition, the essence of India’s federal structure of democracy had to be respected. India is a union of states where both the union and the states have to be fiscally strong.

When the government announced the implementation date for GST in 2016, it seemed that the industry was not ready to accept and adopt GST, and was caught by surprise when the government refused to extend the date of implementation any further. Even though industry was not completely ready for the implementation, one must give credit to the government for its commendable efforts to demonstrate a strong will to go ahead with this landmark tax reform. The Government and tax department conducted several workshops and issued GST – FAQs, handbooks, advisories, updates and even social media to reduce the information gap and to clarify issues to the taxpayers. The GST law has also introduced the concept of anti-profiteering to ensure that the benefits of GST are passed on to consumers. The anti-profiteering provision is taken seriously by the Industry, as the law has given adequate machinery to the taxman with penal provisions. The GST law introduced a mechanism for taxpayers to get advance rulings, to avoid future disputes with the department.

It is said that India has successfully improved a good 19 positions (from 54th to 35th) in the Logistics Performance Index, after GST rollout. The implementation of e-way bills was a bold move. After a shaky start, the second innings of e-way bill system implementation has seen success. Physical check-posts have been removed from the State boarders, thereby reducing the transit time and increasing the revenue per vehicle. Once fast-tags are accepted in tolls, the transportation time would be further reduced. n, etc.

Impact of GST on Logistics Sector

With GST in place, today it is clearly a possible scenario to estimate how much time it takes to transport from one location to another across the country, and you can better manage your inventory and production across the sectors. In addition, today logistics companies and e-commerce companies are setting up big warehouses in States where consumption is huge, and service the smaller ones from such warehouses. This move when compared to the previous practice of locating warehouses geography wise, results in cost savings due to economies of scale. It is estimated that a cost saving of 2-3% in the next 3-5 years range can be achieved due to combination of various factors post GST. Another incidental benefit post GST is that Govt is planning to create a single Nodal Agency through the Special Secretary, Logistics, due to which, unlike earlier practice, there is no need to deal with many ministries like Railways, Shipping, Aviation, etc.

iAfter the initial glitches, the GST system has stabilised and tax collection has started picking up pace. In overall situation, the taxpayers in India and the Government have both undergone tremendous difficulties in the last one year and one can hope that the journey might get easier in the years to come. Although it can take a few years before the country can truly begin to enjoy the full benefits of GST, it would be a journey, which would be worthwhile for the Indian economy.

Conclusion

Our Esteeme� Cusotmer Mr. Rajender Hinduj� share�

hi� �perienc�

KerryIndev | Customer Impact StorieKerryIndev | Customer Impact Storie……Watch later Share

Gokaldas is our pioneer customer since 1983 till date. Our most valuable and respected customer from the inception of Indev Logistics. Mr. Kannan Sheshadri gets in coverstation with Mr. Rajender Hinduja to share his views and relationship with our Chairman, Mr. Xavier Britto as an esteemed customer and a good friend.

Tea� Meetin� a� Maca�

Tea� Meetin�

Awar� Ceremon�

Kerry Indev Chairman Mr Xavier Bri�o Awarded Star of Loyola Award at the Loyola Alumni Awards 2018

15+ Year� of Servic�

Notabl� Wor� Anniversarie�