MIRA INFORM REPORT
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Report Date : |
6th June, 2006. |
IDENTIFICATION DETAILS
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Name : |
KINGFISHER
AIRLINES LIMITED |
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Registered Office : |
“UB
Anchorage”, 5th Floor, 100/1, Richmond Road, Bangalore – 560 025,
Karnataka, India |
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Country : |
India
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
26th
July, 2004 |
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CIN No.: |
U62100KA2004PTC034399 |
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Com. Reg. No.: |
08-34399 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMK14346D
/ BLRK04894B |
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PAN No.: (Permanent Account No.) |
AACCK3949H |
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Legal Form : |
A
Closely Held Public Limited Liability Company. |
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Line of Business : |
Engaged
in as Airline Operators, Promoted by UB Group. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
New Company |
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Payment Behaviour : |
No Experience |
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Litigation : |
Clear |
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Comments : |
Subject
is a new company of UB Group, Chaired by Dr. Vijay Mallya, well known
industrialist and member of Parliament. Trade
relations are fair. No payment are available. However,
the company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
“UB
Anchorage”, 5th Floor, 100/1, Richmond Road, Bangalore – 560 025,
Karnataka, India |
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Tel. No.: |
91-80-30510600, 22272806-7/22274097 |
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Fax No.: |
91-80-22274890/22272973 |
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E-Mail : |
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Website : |
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Corporate Office : |
Kingfisher House, Western Express Highway. Vile Parle (E) Mumbai
400057 |
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Tel. No.: |
91-22 2626 2200 |
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Fax No.: |
91-22 5502 0625 |
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Branches : |
Mumbai Airport Office Kingfisher Airlines Limited S.O.C.C Delhi Office: Mr. Sanjay Bahadur Head- Delhi Flight Operations Office Kingfisher Airlines Limited Bangalore Airport Kingfisher Airlines Ltd., Inderjeet Pathania Goa Airport Kingfisher Airlines Ltd., |
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Head Office : |
G 5-A, Kilfire House, Ground Floor, Dalia
Industrial Estate, Near Fun Republic, Andheri New Link Road, Andheri (West),
Mumbai – 400 053, Maharashra |
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Tel. No.: |
91-22-26730216,
26720209 |
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Fax No.: |
DIRECTORS
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Name : |
Dr.
Vijay Mallya |
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Designation : |
Director |
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Address : |
3,
Vittal Mallya Road, Bangalore-560001, Karnataka, India |
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Date of Birth/Age : |
18/12/1955 |
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Date of Appointment : |
26/07/2004 |
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Name : |
Mr.
Rup Narayan Pillai (Aka : Mr. R. N. Pillai) |
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Designation : |
Director in Charge |
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Address : |
No
17 first Block, First Main, Koramangala, Bangalore-560034, Karnataka,
India |
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Date of Birth/Age : |
14/09/1950 |
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Date of Appointment : |
26/07/2004 |
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Name : |
Mr.
Subhash Raghunath Gupthe |
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Designation : |
Director |
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Address : |
Sarojini
4th Floor, 4 Golflinks Khar, Mumbai, Maharashtra-400052, India |
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Date of Birth/Age : |
06/03/1939 |
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Date of Appointment : |
26/07/2004 |
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Name : |
Mr.
A. K. Ravi Nedungadi |
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Designation : |
Director |
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Address : |
No
103, Dephi III, Prestige Acropolis, Hosur Road, Bangalore, Karnataka-560020,
India |
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Date of Birth/Age : |
26/10/1957 |
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Date of Appointment : |
26/07/2004 |
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Name : |
Mr. Vispi Damania |
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Designation : |
Chief Executive |
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Name : |
Mr.
Alex Wilcox |
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Designation : |
Chief Operating Officer |
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Name : |
Mr
V K Rekhi |
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Designation : |
Director |
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Address : |
Camelot
Apartment 203, Kensington Road, Ulsoor, Bangalore- 560042, Karnataka,
India |
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Date of Birth/Age : |
14/09/1945 |
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Date of Appointment : |
21/01/2005 |
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Name : |
Mr.
Mahesh Nedungadi |
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Designation : |
Director |
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Address : |
No
486, 10th Cross 27th Main, Sector 1, HSR Layout,
Bangalore- 560034, Karnataka, India |
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Date of Birth/Age : |
06/04/1960 |
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Date of Appointment : |
28/07/2004 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
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UB
General Investments Limited |
29999994 |
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UB
General Investments Limited and PA Murali |
1 |
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UB
General Investments Limited and Mr. S Ramanujam |
1 |
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UB
General Investments Limited and Mr. Rupnarayaa Pillai |
1 |
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UB
General Investments Limited and Mr. S. N. Prasad |
1 |
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UB
General Investments Limited and Mr. V. S. Venkataraman |
1 |
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UB
General Investments Limited and Mr. A Harish Bhat |
1 |
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Mr.
S Ramanujam |
1 |
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Mr.
A Harish Bhat |
1 |
BUSINESS DETAILS
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Line of Business : |
Engaged
in as Airline Operators, promoted by UB Group. |
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Imports from : |
USA, France and Europe. |
GENERAL INFORMATION
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Suppliers : |
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Bankers : |
UTI
Bank Limited, Nariman point, Mumbai-400021 |
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Facilities : |
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Banking Relations : |
- |
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Auditors : |
Mr.
S. Vishnu Murthy Chartered Accountant |
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Associates/Subsidiaries : |
UB
Group of Companies |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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30,000,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 300.000 Millions |
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Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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30,000,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 300.000 Millions |
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FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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300.000 |
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2] Share Application Money |
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1249.500 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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(91.435) |
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NETWORTH
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1458.065 |
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LOAN FUNDS |
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1] Secured Loans |
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504.244 |
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2] Unsecured Loans |
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0.000 |
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TOTAL
BORROWING
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504.244 |
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DEFERRED TAX LIABILITIES |
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TOTAL
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1962.309 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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13.298 |
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Advance for capital assets
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1570.596 |
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Amount pending capitalization
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31.413 |
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INVESTMENT
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DEFERREX TAX ASSETS
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51.382 |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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0.000 |
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Sundry Debtors
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0.000 |
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Cash & Bank Balances
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103.829 |
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Other Current Assets
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6.238 |
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Loans & Advances
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202.033 |
Total Current Assets
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312.100 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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16.480 |
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Provisions
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Total Current Liabilities
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16.480 |
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Net Current
Assets
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295.620 |
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MISCELLANEOUS EXPENSES
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0.000 |
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TOTAL
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1962.309 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
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31.03.2005 |
Sales Turnover [including other income]
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5.207 |
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Profit/(Loss) Before Tax
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(142.816) |
Provision for Taxation
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51.381 |
Profit/(Loss) After Tax
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(91.435) |
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Total Expenditure
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147.046 |
KEY RATIOS
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PARTICULARS |
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31.03.2005 |
PAT / Total Income
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(%)
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(1756.00) |
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Net Profit Margin
(PBT/Sales) |
(%) |
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(2742.77) |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
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(43.89) |
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Return on Investment (ROI)
(PBT/Networth) |
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(0.10) |
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Debt Equity Ratio
(Total Liability/Networth) |
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0.36 |
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Current Ratio
(Current Asset/Current
Liability) |
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18.94 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets :
Ř
Office equipments
Ř
Computer and accessories
Ř
Vehicles
Ř
Furniture and Fixture
Financial
Result :
During
the year under the company commenced business as a commercial airline. The
company has made a loss of Rs. 142.816 millions during the period.
Operations
:
Kingfisher
Airlines is a “Value” carrier promoted
by the UB Group. It will leverage on the brand strength of “Kingfisher” by
bringing to the skies the same “fun and good times” which are the attributes of
the brand.
The
company has signed an agreement with Airbus industries to purchase 10 brand new
A/320 and 3 A /319 aircrafts. It also has an option to purchase 20 further
A/320 aircrafts at the same attractive price.
In
order to accelerate the roll-out, the company has also taken 4 brand new A-320
on dry operating lease from Debis Air Finance.
Holding
Company :
Consequent
to the allotment of shares to UB General Investment Limited, which in turn is a
wholly owned subsidiary of United Breweries (Holding) Limited, the company is
an unlimited subsidiary of United Breweries (Holding) limited, the holding
company of the UB Group.
As per website :
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Name
of the company |
Kingfisher
Airlines Limited |
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Presented By |
UTI
Bank Limited, Nariman point, Mumbai-400021 |
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1)
Date and description of instrument creating the change |
Composite Hypothecation Deed dated 30.08.2005 |
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2)
Amount secured by the charge/amount owing on the securities of charge |
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3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
All
present and future movable goods and assets viz, stocks of raw materials, work
in progress, semi-finished goods and finished goods such as fuel , stores,
spares etc. packing materials, consumable stores and spares etc. whatever
situate and or in transit or held by any party to the order and disposition
of the company. All
the present and future book-debts, outstanding monies, receivable, claims,
bills, contracts, engagements and securities which are due and owing in the
course of its business more particularly described in schedule II to the
composite hypothecation deed. For
term loan hypothecation by way of first exclusive charge on the existing
movable assets to be acquired form the term loan. Plant and machinery etc.
fixture, fittings other installations, canes, furniture, computers and other
accessories, vehicles together with spares, tools and accessories and all
other articles lying on the premises at Mumbai, Bangalore, Delhi, Goa and
elsewhere or in the custody of any person or in acquired on hire purchase
lease,. More particularly described in schedule II to the composite
hypothecation deed. |
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4)
Gist of the terms and conditions and extent and operation of the charge. |
The
aforesaid assets are given as securities to secure the following limits along
with rate of interest land margin as under
Other
term and conditions as pr sanction letter. |
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5)
Name and Address and description of the person entitled to the charge. |
UTI
bank Limited Nariman
Point Branch Atlanta,
group Floor Nariman
Point, Mumbai- 400021 |
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6)
Date and brief description of
instrument modifying the charge |
Not
Available |
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7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Not
Available |
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Name
of the company |
Kingfisher
Airlines Limited |
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Presented By |
Mr.
R N Pillan , Director |
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1)
Date and description of instrument creating the change |
Deed
of Hypothecation dated 28th December, 2005 Agreement
No LOQ 258 dated 28th December, 2005 |
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2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
22.172 millions |
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3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
3
Nos 2nd Hand Tata 1610 Resls E2 Tarmac Coach. 5
Nos Tata 1610 Reels E2, Tarmac Coach. |
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4)
Gist of the terms and conditions and extent and operation of the charge. |
Amount
republic in 35 nos installment of Rs.
712380/- each p.m. interest charge as per the rate at bank as agreed. |
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5)
Name and Address and description of the person entitled to the charge. |
SREI
Infrastructure Finance Limited Vishwakarma 86/C,
Topisa Road (South) Kolkata-
700046 |
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6)
Date and brief description of
instrument modifying the charge |
Not
Available |
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7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Not
Available |
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Name
of the company |
Kingfisher
Airlines Limited |
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Presented By |
Mr.
R N Pillan , Director |
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1)
Date and description of instrument creating the change |
Description
of instruments dated 22nd May 2005 Deed
of Hypothecation dated 22nd May 2005 |
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2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
50.000 millions |
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3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
Exclusive
first charge on fixed movable assets of the Borrower comprising of equipments
in the nature of Group Cooling Units, ground Power Units, Jet Starter units
and conventional push back, used in the normal course of business of the
company more fully described in the enclosed annexure, in or about of the
borrowers airport situate at Mumbai, Delhi, and Bangalore or wherever else
the same may be or be held by any party to the order or disposition of the
borrower or in the course of transit or on high seas or on order or delivery
howsoever or where over in the possession of the borrower and either by way
of substitution or addition., |
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4)
Gist of the terms and conditions and extent and operation of the charge. |
Interest
Rate: 10 % per annum on diminishing balance Repayment
: 60 monthly commencing from 8th July 2005, the each installment
amount is Rs. 1.062 millions |
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5)
Name and Address and description of the person entitled to the charge. |
SREI
Infrastructure Finance Limited Vishwakarma 86/C,
Topisa Road (South) Kolkata-
700046 |
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6)
Date and brief description of
instrument modifying the charge |
Not
Available |
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7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Not
Available |
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.93 |
|
UK
Pound |
1 |
Rs.85.32 |
|
Euro |
1 |
Rs.58.75 |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |