MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
AIR |
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Registered Office : |
Jakkur Aerodrome,
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
15.06.1995 |
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Com. Reg. No.: |
08-18045 |
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CIN No.: [Company
Identification No.] |
L85110KA1995PLC18045 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRD00795E |
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Legal Form : |
Public Limited
Liability Company. The company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Engaged in Chartered
Aviation Services for Commercial and Non-commercial purposes in |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
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 : |
USD 8662000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Exist |
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Comments : |
Subject is a jet airline and recently competitor Kingfisher Airline
Controlled by Vijay Mallya, Liquor King of The company can be considered for small to medium sized business
dealings at usual trade terms and conditions. It may be considered for large business dealings preferably with the
guarantee from Vijay Mallya Group / Kingfisher Airlines. |
LOCATIONS
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Registered/Repair
Facility Office : |
Jakkur Aerodrome,
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Tel. No.: |
91-80-8561378/79/3524/24 |
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Fax No.: |
91-80-8563525/2996529 |
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E-Mail : |
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Website : |
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Area : |
5000 Sq.ft |
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Location : |
Owned |
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Head Office : |
No. 35/2, |
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Tel. No.: |
91-80-51585035/51585016/51585039/28567378 |
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Fax No.: |
91-80-22352645/51148849 |
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Website : |
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Area : |
2000 Sq. ft |
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Location : |
Leased |
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Factory 1 : |
Air Deccan,
214/33, 7th Cross, |
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Tel. No.: |
91-80-56995760/2352646 |
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Fax No.: |
91-80-2352645 |
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E-Mail : |
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Website: |
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Area : |
1500 Sq.ft |
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Location : |
Rented |
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Branches : |
Ř
C/o. MISL
Cargo Complex, Tel. No. 91-80-56995760 Fax No. 91-80-2352645 Ř
202,
Elegant Apartments, Raj Tel./Fax No. 91-40-23308713 E-mail : decanhyd@satyam.net.in Ř
10,
Avatar, 27, Tel. No. 91-44- 24454110/3445 Fax No. 91-44- 24457215 Ř
E-54,
Anand Niketan, Tel. No. 91-11-24103521/21 Fax No. 91-11-24103522 E-mail : deccan@mantronline.com Ř
Near Tel. No. 91-22-25704517 Ř
Jakkur
Aerodrome, Tel. No. 90-80-8567523/8567378 E-mail : deccanair@vsnl.com Ř
Hanger
# 8, Juhu Aerodrome, Mumbai – 400049, Tel. No. 91-22-26611601 E-mail : daplmum@vsnl.net Ř
Tel. No. 91-44-24740560/24714109 E-mail : deplchennai@satyam.net.in Ř
Room
# 605, Tel. No. 91-651-2480377/2480326 E-mail : deplranchi@yahoo.co.in |
DIRECTORS
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Name : |
Captain G. R. Gopinath |
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Designation : |
Managing Director |
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Address : |
G-3, Garden Apartments, Vittal |
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Date of
Birth/Age : |
23.04.1951 |
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Date of
Appointment : |
19.06.1995 |
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Name : |
Captain K. J. Samuel |
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Designation : |
Director |
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Address : |
288 A, 8th Block, Koramangala, |
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Date of
Birth/Age : |
09.04.1951 |
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Date of
Appointment : |
19.06.1995 |
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Name : |
Lt. Gen. N. S. Narahari |
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Designation : |
Chairman |
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Address : |
21, 3rd Cross, |
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Date of
Appointment : |
01.06.1995 |
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Name : |
Mr. A. D. Sinha |
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Designation : |
Director |
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Address : |
609, Manipal Centre, |
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Date of
Appointment : |
01.06.1995 |
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Name : |
Mr. S. N. Ladhani |
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Designation : |
Director |
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Address : |
5/1, I Main, Jayamahal Extension, |
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Date of
Appointment : |
01.06.1995 |
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Name : |
Mr. Vijay Amritharaj |
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Designation : |
Director |
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Name : |
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Designation : |
Director |
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Name : |
Mr. Sudhir Choudhari |
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Designation : |
Director |
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Name : |
Mr. P.N. Thirunarayana |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Ganguly |
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Designation : |
Director |
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Name : |
Mr. Vishnu Singh Rawal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. N. Srivatsa |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Captain G. R. Gopinath |
52000 |
-- |
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Captain K. J.
Samuel |
50000 |
-- |
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Brindavan
Bereages Limited |
19933 |
-- |
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Foreign Holdings |
-- |
39 |
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Bodies Corporate |
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10 |
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Category |
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Directors or relative of director |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in
Chartered Aviation Services for Commercial and Non-commercial purposes in |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Cash or Credit
(30 days) terms. |
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Purchasing : |
Credit (30 to 60
days) terms. |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Retailers and End
Users Wipro Group, TATA Group, ICICI Bank/ ICICI
Group, |
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No. of
Employees : |
2800 |
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Bankers : |
Bank of ICICI Bank
Limited, |
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Facilities : |
Credit of Rs.
20.000 millions |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M/s. S R Batlibai
& Company Chartered
Accountant |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100247887 |
Equity Shares |
Rs.10/- each |
Rs.1002.478
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
981.800 |
161.990 |
155.270 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1183.700 |
159.880 |
79.200 |
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4] (Accumulated Losses) |
0.000 |
(445.600) |
(93.280) |
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NETWORTH |
2165.500 |
(123.730) |
141.190 |
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LOAN FUNDS |
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1] Secured Loans |
4481.600 |
1594.170 |
226.210 |
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2] Unsecured Loans |
35.000 |
1250.600 |
123.000 |
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TOTAL BORROWING |
4516.600 |
2844.770 |
349.210 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6682.100 |
2721.040 |
490.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2309.300 |
2038.190 |
266.820 |
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Capital work-in-progress |
2865.300 |
0.000 |
0.000 |
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INVESTMENT |
04.100 |
4.480 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
572.600
|
363.980 |
119.570 |
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Sundry Debtors |
130.600
|
66.290 |
43.950 |
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Cash & Bank Balances |
2564.800
|
829.280 |
159.760 |
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Other Current Assets |
0.000
|
131.920 |
21.640 |
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Loans & Advances |
2320.300
|
340.940 |
134.660 |
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Total
Current Assets |
5588.300
|
1732.410 |
479.580 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4416.400
|
1082.000 |
257.230 |
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Provisions |
59.300
|
0.000 |
0.000 |
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Total
Current Liabilities |
4475.700
|
1082.000 |
257.230 |
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Net Current Assets |
1112.600
|
650.410 |
222.350 |
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MISCELLANEOUS EXPENSES |
390.800 |
27.960 |
1.230 |
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TOTAL |
6682.100 |
2721.040 |
490.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
12364.000 |
|
629.390 |
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Other Income |
1154.100 |
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Total Income |
13518.100 |
3055.540 |
629.390 |
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Profit/(Loss) Before Tax |
(3368.000) |
(181.130) |
6.680 |
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Provision for Taxation |
(37.500) |
14.190 |
1.080 |
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Profit/(Loss) After Tax |
(3405.500) |
(195.320) |
5.600 |
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Expenditures : |
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Manufacturing Expenses |
4720.700 |
1125.900 |
256.000 |
|
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Administrative Expenses and Selling Expenses |
3475.500 |
811.600 |
185.300 |
|
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Interest and Financial Charges |
319.500 |
102.100 |
38.700 |
|
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Employees Cost |
1617.100 |
311.900 |
71.500 |
|
|
Power & Fuel |
6254.500 |
929.800 |
92.400 |
|
|
Depreciation & Amortization |
133.400 |
30.600 |
11.200 |
|
Total Expenditure |
16520.700 |
3311.900 |
655.100 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.09.2006 1st Quarter |
31.12.2006 2nd
Quarter |
31.03.2007 3rd
Quarter |
|
Sales Turnover |
3587.000 |
4748.900 |
4378.200 |
|
Other Income |
1773.800 |
1619.300 |
196.300 |
|
Total Income |
5360.800 |
6368.200 |
4574.500 |
|
Total
Expenditure |
5586.700 |
6036.800 |
6412.300 |
|
Operating Profit |
(225.900) |
331.400 |
(1837.800) |
|
Interest |
94.300 |
124.300 |
174.100 |
|
Gross Profit |
(320.200) |
207.100 |
(2011.900) |
|
Depreciation |
101.200 |
104.100 |
109.800 |
|
Tax |
08.000 |
06.600 |
10.000 |
|
Reported PAT |
(429.400) |
96.400 |
(2131.700) |
|
|
|
|
|
200609
Quarter 1 –
Notes Expenditure Includes Employee Remuneration &
Benefits Rs 541.40 million Aircraft Fuel Expenses Rs 2401.10 million Other direct
Operation Expenses (incl. aircraft lease rentals) Rs 2293.30 million Selling
General Administrative Expenses Rs 350.90 million EPS is Basic Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 129
Complaints disposed off during the quarter 129 Complaints unresolved at the end
of the quarter Nil 1. The above results have been reviewed by the Audit
Committee and approved by the Board of Directors at the m held on October 30,
2006 and are subject to limited review by the statutory auditors. 2. Since this
is the first instance of publication of quarterly results by the Company, there
are no comparative figures for the corresponding prior period's quarter. 3. The
Company operates in a single business segment i.e., of providing scheduled
& unscheduled air transport services & operates only in
200612 Quarter 2 ----
Notes EPS is Basic Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 13
Complaints disposed off during the quarter 13 Complaints unresolved at the end
of the quarter Nil 1. The above financial results have been reviewed by the
Audit Committee and taken on record by the Board of Directors at the meeting
held on January 25, 2007 and are subject to limited review by the statutory
auditors. 2. The Equity Shares of the company were listed and admitted for
trading on Bombay Stock Exchange and National Stock Exchange of India w.e.f.
June 12, 2006 and as such there are no comparative figures for prior periods.
3. The Company Operates in a single business segment i.e, of providing
scheduled & unscheduled air transport services & operates only in
200703 Quarter 3 ----
- Notes: Expenditure Includes
Employee Remuneration & Benefits Rs 663.80 million Aircraft Fuel Expenses
Rs 2296.90 million Aircraft/Engine Lease Rentals Rs 1092.20 million
Aircraft/Engine Repairs & Maintenance Rs 647.60 million Airport Related
Charges Rs 884.80 million Other Direct Operation Expenses Rs 514.40 million
Selling General Administrative Expenses Rs 312.60 million Tax indicates Fringe
Benefit Tax EPS is Basic Status of Investor Complaints for the quarter ended
March 31, 2007 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 36 Complaints disposed off during the
quarter 36 Complaints unresolved at the end of the quarter Nil 1. The above
financial results have been reviewed by the Audit Committee and taken on record
by the Board of Directors at the meeting held on April 26, 2007 and are subject
to limited review by the statutory auditors. 2. The Equity Shares of the
company were listed and admitted for trading on Bombay Stock Exchange and
National Stock Exchange of India w.e.f. June 12, 2006 and as such there are no
comparative figures for prior periods. 3. The Company Operates in a single
business segment i.e, of providing scheduled & unscheduled air transport
services & operates only in
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
(25.19)
|
(6.39)
|
0.88 |
|
|
|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
(27.24)
|
(5.92)
|
1.06 |
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|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(42.64)
|
(4.80)
|
0.89 |
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
(1.55)
|
(1.46)
|
0.04 |
|
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|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.06
|
(31.73)
|
4.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.60
|
1.86 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.143.90/- |
|
Low |
Rs.140.90/- |
LOCAL AGENCY FURTHER INFORMATION
It is in trade terms with:
Ř
Aerial
Camera Systems,
Ř
Astra
Zeneca
Ř
Badger
Energy / Tractable
Ř
Bank of
Ř
British
American Tobacco/ITC
Ř
Discovery
Channel
Ř
ESPN
Ř
FIAT
Internationa
Ř
Hero
Honda
Ř
Hindustan
Levers Limited
Ř
K Mart
Ř
Larsen
& Toubro
Ř
National
Grid Plc,
Ř
Nestle
Ř
Nortel
Networks
Ř
Reliance
Industries
Ř
Star TV
Ř
Sun
Micro
Ř
Tata
Group
Ř
TWI
Ř
Volvo
Ř
World
Bank
History:
Converted to Public
Limited Company on 5th March, 2005
“Air
Director’s Report:
The last year has been a particularly challenging one for
the company during which the Company successfully scaled up its operations and
also managed to reach the No. 2 position in market share in the domestic
aviation sector in
Air
The Company's Scheduled Airlines operations continues to experience
scorching growth in all areas of its operations and has managed to attain more than
22% market share making it the No. 2 player in the Indian domestic aviation
sector. It has also achieved the distinction of becoming the carrier with the
widest reach covering more destinations than any other domestic carrier.
Air
* carried approximately 5.6 million passengers, through June 30, 2006 (up
from 1.1 million through March 31, 2005);
* expanded its fleet to 34 aircrafts as on June 30, 2006 (16 aircrafts as
of March 31, 2005);
* grown its schedule to 239 flights daily, as on June 30, 2006 (101
flights as of March 31, 2005);
* increased its route network to 55 airports as on June 30, 2006 (30
airports as of March 31, 2005);
* hired and mobilised a workforce of almost 2,600 people as of June 30,
2006 (1,183 as of March 31, 2005).
Based on these factors, they believe that Air Deccan is one of the
fastest-growing scheduled commercial passenger airlines today.
The aviation business is highly capital intensive and requires constant
injection of capital in order to sustain the growth. Additionally, market
development, brand building and awareness require significant investment and
expenditure on an on going basis.
The Company inducted 20 aircrafts (9 Airbus A320s and 11 ATRs) and returned 2
ATRs during the period under review. Aircraft induction and deployment involves
planning and incurring of expenses almost a year in advance with recruitment
and training of pilots, cabin crew, engineers, airport space acquisition and
development, market development, all of which requires sizeable funds outlay
against which the revenues start flowing in much later. Steep increases in fuel
costs during the period (more than 30%), increases in remuneration to skilled
personnel due to market factors, shortage of locally available skilled
personnel leading to recruitment of expatriate personnel, weakening of the Rupee
against the US Dollar, intense competition within the aviation sector leading
to pressure on yields all combined to cause an operating loss during the period
under review. Individual items of the financial statements are more fully
discussed in the section titled 'Management Discussion and Analysis':
Air Deccan has succeeded in changing the face of the aviation sector in
Air Deccan will continue to aggressively grow its operations in the
coming months and years with aircraft induction plans of one every month for
the next 6 years and aims to become the largest people carrier in
In order to execute the strategy of extending air connectivity to all
parts of the country in the fastest possible time, during the period under
review, their Company has signed up firm orders for purchase of another 30
Airbus A-320 aircraft taking the total planned induction of aircrafts to 91
through December 2012. In order to fund this substantial capital requirement,
the Company is already working with its financial and investment advisors to
devise the optimum method of funding this requirement.
Charter Services:
The Helicopter Charter service of the Company logged another year of impressive
growth of 24%. Two
Outlook:
The Indian economy continues to reflect robust growth due to the strong
performance of the services and retail sectors. This has resulted in increased
spending on leisure and related segments which in turn has resulted in
expansion and growth of the travel and tourism sectors. This would serve to
benefit the Scheduled Airline operations of the Company which will continue to
offer cheaper air travel in
.
The Company has drawn up a growth strategy for the Charter service operations
and is pursuing opportunities to expand its business in all segments,
especially off shore operations for the Oil sector. Their Company's tie-up with
a leading off shore helicopter operator company based in
Deccan Aviation (Lanka) Private Limited (DALPL), which was a subsidiary of the
Company, ceased to be a subsidiary consequent to the transfer of 4% of its
shares on June 27, 2005 to Sri Lankan nationals, for which they have received
the necessary approvals from Reserve Bank of
Applicable Sri Lankan civil aviation regulations stipulate that in order
for an entity to be eligible for a 'scheduled operator's licence' in Sri Lanka,
the local/domestic share holding in the entity should be a minimum of 51%. To
comply with these regulatory requirements, it was agreed upon between DALPLs
promoters/partners that Favourite Investments and Navamaga Investments and
their Company would each transfer approximately 4% of their respective
shareholding to certain Sri Lankan nationals, for the purpose of holding the
shares in the capacities of trustees of a trust to be created for the benefit of
DALPL's Sri Lankan employees. The above transfers have been made with a view to
ensure that the proportion of shareholding between the joint venture partners
is maintained, while increasing the percentage of Sri Lankan shareholding in
DALPL to 52%.
Management
Discussion and Analysis:
1. Industry structure and
developments:
The Indian economy continues to reflect a robust growth due to the strong
performance of the services and retail sectors. This has resulted in increased
spending on leisure and related segments which in turn has resulted in
expansion and growth of the travel and tourism sectors.
The Indian aviation sector
is broadly divisible into four main categories:
* domestic airlines, which operate scheduled flights within
* international airlines, which operate scheduled flights to and from
* charter air operators, which include charter operators and air taxi
operators and
* air cargo services, which includes air transportation of cargo and
mail.
Scheduled domestic airlines can also be divided into two categories:
full-service carriers and low-cost carriers. Currently in
The unprecedented growth in passenger traffic in
Charter air operators have, in the past, principally included large
industrial houses that maintain aircraft fleets primarily for their own use and
hire out their spare aircraft capacities to others. However in recent times,
the Indian charter business has also seen the emergence of charter companies
for whom this business is not for captive use but is the business itself.
Competition in the charter sector of the Indian aviation industry has increased
over the last few years with more private dedicated charter services being set
up.
In July 2003, the Ministry of Civil Aviation set up a five-member
committee under the chairmanship of Mr. Naresh Chandra, a retired senior
government official, to prepare a comprehensive roadmap for the promotion of
the Indian civil aviation sector which was intended to provide the basis for a
new National Civil Aviation Policy.
As per Website
Details:
Presenting the pioneers of
heli-chartering in Indian skies.
Stake
Vijay Mallya’s UB Holdings has bought 26% stake in Deccan Aviation
Limited (DAL) which runs budget carrier “
Air Deccan”, for Rs.5.5bn. The group has agreed to pay Rs.155 per share, valuing
DAL at Rs.21.15bn.
Details of the stake sale:
DAL will make preferential allotment of upto 35.2mn equity shares of
Rs.10 each at a price o fRs.155 which shall be 26% of post issue capital in two
tranches to United Breweries Group. The first tranche comprises of 9.68mn
shares at Rs.1555 per shares which has been paid on May 31, 2007 and in case of
the second tranche 25.54mn shares at Rs.155 per shares will be issued by June
29, 2007. Post this deal the UB group will make an open offer in order to acquire
additional 20% stake from the market so as to gain complete a=control of the
low cost carrier. The air charter operations of both companies will be merged
and run as a separate entity.
Benefit arising out of this deal –
˛
1/3rd market Shares – With this strategic alliance, the two airlines will have 71 aircraft
mainly dominated by the Airbus, cover around 70 domestic destinations command a
market share of33% (Air Deccan – 21& and Kingfisher – 12%), overtaking the
combined share of Jet – Jetlite (previously Air Sahara) of 31.5%.
˛
Cost Synergies – With
commonality of fleet and pilots flying these same type of aircrafts, this
alliance will enable the two airlines to exploit the synergies that exist in
the areas of operations and maintenance, ground handling, vastly increased
connectivity, feeder services, distribution penetrating etc. thereby resulting
in decreased costs, increased efficiencies and improved profitability of both
the airlines
˛
Route Rationalization – The two airlines are likely to rationalize their network to ensure that
they don’t cannibalize each other but the networks support each other. Thus
kingfisher will continue to focus on the premium / business class on the key
metro routed and Air Deccan will continue to operate as a low cost carrier
largely covering lower traffic density tier – 2 destinations which are expected
to show a good growth in the coming years. In the coming days this strategy is
likely to give a tough competition to Jetlite the value carrier being run by
Jet Airways.
Impact on the industry start of much
awaited consolidation:
˛
Three Bigger Entities – This alliance brings into light, three big airline combines (Air
˛
Industry capacity still higher than demand – In the short term, we expect the fares to be down for the next 3 – 6
months as the supply from the existing carriers continues to be higher than the
demand. However due to the losses suffered by the existing players in the past
because of higher fuel prices in H1FY07 and aggressive price competition which
continued for 3 years with the launch of Air Deccan in 2003 – a slowdown is
being seen in the expansion plans of players, thus giving room for improvement
in yields over the medium term.
Impact on
˛
Ongoing cash crunch – The Company is facing a severe cash crunch, which has impacted its fleet
expansion plans. This deal provides a cash boost for DAL and ensures that it
continues its operations for next 2 – 3 years at least.
Challenges for Kingfisher:
˛
With DAL having huge
accumulated losses to the tune of Rs.7bn over the last 3 years it remains a
challenge for the management of Kingfisher Airlines on how effectively it
manages to turnaround the operations of the loss making company. However by
having a decent market share of around 12% within just 2 years of operations
Kingfisher has demonstrated high standards of operational deficiency.
Other triggers to watch out for:
˛
Relaxation of rules
for flying overseas – The Ministry of Civil Aviation has put forward a proposal
of reducing the eligibility criterion for flying on international routes to
three years of continuous domestic operations from the present five. If this is
approved possibilities of flying to various destinations in South
˛
In case of
Kingfisher, the airline commenced operations in May 2005. So in absence of
approvals to fly overseas the airline plans to fly from US to
Valuation:
DAL has been able to garner bigger market share and register huge y-o-y
growth in top line but has not been able to replicate the same in its bottom
line. The company adopts a business model with Pan
Except in Q2 FY07 when the company had posted a net profit of RS.96.4mn
due to extraordinary income from aircrafts purchase of Rs.1.3bn, DAL has been
incurring losses since FY04. It has registered a negative EPS of RS.24.93 as on
9 months ended March 31, 2007.
This acquisition by Kingfisher has given the carrier a new lease of life
and the strong backing of an efficient management. In the coming months carrier
plans to raise its ticket fares to make the business profitable. They recommend
investors to hold the stock.
CORPORATE CHARTERS
|
Travel
to Factory Sites/ Mines/Quarries |
|
Aerial
Surveys of Projects/ Sites |
|
Delegate
Entertainment |
|
Travel
to Conference Destinations |
|
Videography
for Road Shows |
|
VVIP
Travel |
|
Power
Line Reconnaissance |
|
Offshore
oilfield logistic support |
|
Underslung
Load Carriage |
GOVERNMENT & ADMINISTRATION
|
Geophysical
Resource Survey |
|
Law
& Order Reconnaissance |
|
Disaster
Management Operations |
|
Election
Campaigning |
Miscellaneous
|
Film
Production |
|
Emergency
Medical Evacuation |
|
Electronic
News Gathering |
|
Aerial
Videography for Motor Sports |
TOURIST CHARTERS
|
Helitours
to Tourist Destinations |
|
Hill
Station Visits |
|
Package
Tours & Overnight Getaways |
|
|
PILGRIMAGE CHARTERS
|
Trips
to Puttaparathi, Tirupathi, Shirdi, Vaishno Devi & Shravanabelagola |
|
|
LEISURE PACKAGES
|
Fishing,
Golfing, Wildlife Sanctuary Packages |
|
Honeymoon
Cruises |
|
City
Aerial Sight Seeing |
|
|
Deccan Aviation's fleet comprises of the latest models of
helicopters in use in the world. Fort Worth, Texas-based Bell Helicopters is
the largest helicopter company in the world with a market share of about 55 per
cent. The Bell Long Rangers and Jet Rangers from Bell Helicopters,
Deccan Aviation's
services are one-of-a-kind. With six operational bases across the country
(Mumbai,
Stringent
International aviation audits are regularly carried out to benchmark ourselves
to global standards
The
sky maybe the limit, but with a Deccan Aviation chopper, it's their
imagination. If its unusual, dramatic or just plain imaginative, a
chopper is the only solution. And they have found themselves in
extraordinary situations. From being the vehicle that gave a couple a
dream start to their honeymoon to showering flower petals on another. Or
being used time and again by the business world for corporate and consumer promotions
and employee motivation. Customised packages also allow you to pick the
time and destination of their choice.
A helicopter's capability of reaching inaccessible areas makes it vital during
emergencies. Deccan Aviation choppers have been used for medical evacuation
and find themselves in need during emergency rescue and disaster
management. The pilots are fully trained to handle search and rescue
operations. Jindal, Tractabel, Badger Energy,
If you are in a
medical emergency like an accident or a heart attack, while on a sight-seeing
or business trip any place within 350 kms of a Deccan Aviation Base - at Delhi,
Bangalore, Hyherabad, Mumbai and Chennai, you can be immediately evacuated to
the closest reputed hospital
Company Details:
AIR
DECCAN,
Captain
G R Gopinath, the Managing Director is a graduate of the prestigious
Captain KJ Samuel is the Executive Director and, along
with Capt Gopinath, is a founder Director. An experienced Army Aviation pilot,
he is a Presidential Gallantry Award winner and still actively flies for the
parent company.
Mr S N Ladhani, Chairman of the Ladhani Group of Companies (
Air
Air
The airline has recently acquired ATR 72 – 500 aircraft.
These are 72 seater aircraft with superior engine power and improved interiors
for a very comfortable flying experience. The aircraft is very reliable with
highly improved productability.
Air
Clients
A random sampling of Deccan Aviation's (institutional) customers:
- Global CEO of
Nestle
- World CEO of
Volvo
- Vice-President
and Managing Director of Jack Welch Technology Centre
- Global Chief
Operating Officer of Bank of
- Senior
Vice-President General Electric (
- Chairman and
MDs of Reliance Industries
- COO of Sun Microsystems
- President of
Astra IDL
- Chairman of
Hero Honda
- His Holiness
the Dalai Lama
- HRH Crown
Princess Mathilde of
- Mr David
Rockefeller
- Mr. John Gray
(best-selling author)
- Political
leaders like Mrs. Sonia Gandhi, Mr. Atal Behari Vajpayee, Mr.L.K.Advani,
Mr. Chandrababu Naidu, Mr. S.M.Krishna, Mr. Naveen Patanaik and Mr. Arjun
Munda to name just a few
Companies
- Fiat
International
- Dell Computers
- World Bank
- Sterlite
- Adidas
- Nortell
Networks
- Jaiprakash
Industries
- Bank of
- Discovery
Channel
- National
Geographic
- World Wildlife
Fund
- Intel Corporation
Services
Deccan Technical Services (DTS) - a Unit of Deccan Aviation is a
Customer Service Facility (CSF) of Bell Helicopter Textron. The CSF is benchmarked
to global standards and capable of repair and overhaul of major components and
assemblies of all models of
- Deccan
Technical Services offers third party maintenance to other
helicopter/airplane operators
- Deccan
Technical Services looks after the BELL Customer Service Facility and
related technical and logistic services
- Deccan
Technical Services is benchmarked to International standards and staffed
by qualified, experienced and licensed engineers trained at
In December 2004, Deccan Technical
Services was awarded the Customer Service Facility (CSF) status for helicopters
manufactured by Bell Helicopter Textron. With this award, Deccan Technical
Services becomes the only helicopter operator to be given this privilege.
Deccan Technical Services is a subsidiary of Deccan Aviation.
DTS Facility
Our state-the-art facility at Jakkur Aerodrome,
The
facility has a Day VFR airfield (3000 ft x 75 ft) and helipads to accommodate
up to five helicopters at a time. Helicopters and small aircraft can be
directly flown to the facility. It can also be accessed by road, being on NH-7,
about 14 km from the centre of
Management
Promoted and operated by senior officers from the Indian Army Aviation, Deccan
Aviation has 34 pilots on its rolls. This, combined with its country-wide
presence provides it great operational depth. To maintain the pilots at a high
level of competency,
Deccan Aviation's Managing Director is Captain G R Gopinath. He is a graduate
of the
Captain KJ Samuel is the Executive Director and, along with Capt Gopinath, is a
founder Director. An experienced Army Aviation pilot, he is a Presidential
Gallantry Award winner and still actively flies for the parent company.
Mr S N Ladhani, Chairman of the Ladhani Group of Companies (
Another
illustrious member of the Board of Directors is Mr Vijay Amritraj,
Accolades
- Deccan
Aviation was awarded the Operator Safety Award for the year 2000 by the
Helicopter Association International in recognition of the company's
outstanding record in flight and maintenance safety standards
- Deccan
Aviation is perhaps the only aviation company in
- Deccan
Aviation has been associated with M/s Cairn Energy (
- In May 2004,
Deccan Aviation (Lanka) Pvt. Ltd. became the first non-military helicopter
operator on the island nation.
- Deccan
Aviation is the only helicopter operator to be awarded the Customer
Service Facility (CSF) status in South Asia by Bell Helicopter Textron for
repair, servicing and overhaul of various models of
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.43 |
|
|
1 |
Rs.82.11 |
|
Euro |
1 |
Rs.55.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
34 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|