MIRA
INFORM REPORT
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Report Date : |
25.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SPICEJET LIMITED |
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Formerly Known as: |
Royal Airways Limited |
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Registered Office : |
Cargo Complex, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.02.1984 |
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Com. Reg. No.: |
17509 |
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CIN No.: [Company
Identification No.] |
L51909DL1984PLC017509 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR07528D |
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PAN No.: [Permanent
Account No.] |
AACCR1459F |
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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 : |
To provide domestic airlines and passenger and cargo services. |
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. |
Small |
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Maximum Credit Limit : |
USD 7383200 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate trade.
Company’s profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
Cargo Complex, |
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Tel. No.: |
91-11-25673330 / 55515063 / 64 |
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Fax No.: |
91-11-2567332 |
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E-Mail : |
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Corporate Office : |
319, Udyog Vihar, Phase IV, Gurgaon, |
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Tel. No.: |
1800 180 3333 / 91-987180 3333 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr Ajay Singh |
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Designation : |
Director |
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Name : |
Mr. Atul Sharma |
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Designation : |
Director |
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Name : |
Mr. B S Kansagra |
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Designation : |
Director |
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Name : |
Mr. Baljit Sobti |
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Designation : |
Director |
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Name : |
Mr. Kishore Gupta |
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Designation : |
Director |
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Name : |
Mr. Mukkaram Jan |
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Designation : |
Director |
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Name : |
Mr. Osman Qureshi |
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Designation : |
Director |
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Name : |
Mr. R S Kansagra |
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Designation : |
Director |
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Name : |
Mr. Vijay Kumar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Siddhanta Sharma |
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Designation : |
Executive Chairman |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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(A) PROMOTER AND PROMOTER GROUP |
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(1) FOREIGN |
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(a) Bodies Corporate (erstwhile NRI OCB) |
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12.91 |
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(B) PUBLIC SHAREHOLDING |
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(1) INSTITUTIONS |
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(a) Mutual Funds / UTI |
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6.88 |
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(b) Financial / Banks |
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0.02 |
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(c) Foreign Institutional |
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18.84 |
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(2) NON – INSTITUTIONS |
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(a) Bodies Corporate |
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21.45 |
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(b) individuals |
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(i) Individuals holding nominal share capital upto Rs. 0.100 million |
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6.97 |
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(ii) Individuals holding nominal share capital in excess of Rs. 0.100
millions |
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3.81 |
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(c) Others |
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Director |
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4.16 |
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Trusts |
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0.00 |
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Clearing Members |
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0.07 |
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Overseas Corporate Bodies |
|
1.32 |
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Non Resident Indians |
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10.15 |
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Foreign Companies |
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13.42 |
BUSINESS DETAILS
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Line of Business : |
To provide domestic airlines and passenger and cargo services. |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Khanna and Annadhanam Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity shares |
Rs. 10/- each |
Rs. 3500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
184239000 |
Equity shares |
Rs. 10/-
each |
Rs.1843.390
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2406.500 |
1843.400 |
1544.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(560.700) |
(1971.100) |
(1912.500) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1845.800 |
(127.700) |
(367.800) |
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LOAN FUNDS |
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1] Secured Loans |
3571.800 |
3596.400 |
0.000 |
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2] Unsecured Loans |
749.700 |
610.900 |
1120.400 |
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TOTAL BORROWING |
4321.500 |
4207.300 |
1120.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6167.300 |
4079.600 |
752.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
483.800 |
490.400 |
129.200 |
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Capital work-in-progress |
6943.500 |
3629.000 |
484.900 |
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INVESTMENT |
812.200 |
0.000 |
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 |
91.800
|
46.400 |
30.400 |
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Sundry Debtors |
55.600
|
37.200 |
17.600 |
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Cash & Bank Balances |
3527.200
|
651.000 |
306.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1153.800
|
798.800 |
674.400 |
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Total
Current Assets |
4828.400
|
1533.400 |
1028.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
6473.000
|
1512.700 |
870.700 |
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Provisions |
427.600
|
154.300 |
31.200 |
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Total
Current Liabilities |
6900.600
|
1667.000 |
901.900 |
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Net Current Assets |
(2072.200)
|
(133.600) |
126.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
93.800 |
11.600 |
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TOTAL |
6167.300 |
4079.600 |
752.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
6404.400 |
4196.500 |
20.100 |
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Other Income |
1078.400 |
393.600 |
18.600 |
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Total Income |
7482.800 |
4590.100 |
38.700 |
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Profit/(Loss) Before Tax |
(697.500) |
(401.100) |
(285.600) |
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Provision for Taxation |
9.900 |
13.100 |
1.500 |
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Profit/(Loss) After Tax |
(707.400) |
(414.200) |
(287.100) |
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Expenditures : |
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Raw Materials |
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Power and Fuel Cost |
3500.600 |
1995.000 |
0.900 |
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Other Manufacturing Expenses |
1472.300 |
939.600 |
85.700 |
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Employee cost |
692.300 |
461.600 |
66.100 |
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Selling and Administration Expenses |
2269.100 |
1428.500 |
138.400 |
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Miscellaneous Expenses |
144.800 |
43.300 |
16.900 |
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Interest and Financial Charges |
42.700 |
41.600 |
11.100 |
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Depreciation |
58.500 |
81.600 |
5.200 |
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Total Expenditure |
8180.300 |
4991.200 |
324.300 |
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QUARTERLY
|
PARTICULARS |
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|
30.06.2007 |
|
Type |
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|
1st
Qtr. |
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Sales Turnover |
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|
2653.800 |
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Other Income |
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|
460.400 |
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Total Income |
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|
3114.200 |
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Total
Expenditure |
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2899.500 |
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Operating Profit
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|
214.700 |
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Interest |
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|
9.700 |
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Gross Profit |
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|
205.000 |
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Depreciation |
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|
16.300 |
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Tax |
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|
3.300 |
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Reported PAT |
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185.400 |
200706 Quarter 1 --------------- NOTES: 1.The above Financial Results of the Company for the period ended June 30, 2007, were reviewed by the Audit Committee on July 25, 2007 and approved by the Board of Directors in their meeting held on July 30, 2007. 2.The Company changed its financial year from June-May to April-March. Under the previous financial year, the Company had not published results for the quarter ended June 30 2006. Accordingly, the financial results for quarter ended June 30 2006 as produced above have not been reviewed or audited by auditors. 3.Other income during the current period includes net Foreign Exchange fluctuation gain on outstanding liabilities amounting to Rs 206 Million and Profit on Sale of Aircrafts amounting to Rs. 127 Million. 4.Accounting Standard (AS) 17 on Segment Reporting' requires the Company to disclose certain information about operating segments. The Company is managed as a single operating unit that provides air transportation only and has no other segment operation. 5.As the company has substantial unabsorbed depreciation and carry forward losses under Income Tax Act, 1961 and there is no virtual certainity to have taxable income in the foreseeable future,in accordance with Accounting Standard (AS) 22 issued by the Institute of Chartered Accountants of India, the net deferred tax assets have not been recognised in these accounts. 6.In respect of qualification in the audit report dated May 24,2007 on accounts for the period ended March 31, 2007,had an impact of matters reported in paragraphs 3.1, 3.3, 3.5, 3.6 and 3.7, (the matters specified therein are related to cases which are pending in courts and the matters are sub-judice) been considered for accounting purposes the reported quarter would ;have had a loss of Rs. 442.29 Million. 7.71 Investor's complaints/ queries were received which were resolved/ replied during the quarter ended June 30, 2007.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
|
4.96 |
0.00 |
0.00 |
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Long
Term Debt-Equity Ratio |
|
4.85 |
0.00 |
0.00 |
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Current
Ratio |
|
0.73 |
0.86 |
0.85 |
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TURNOVER
RATIOS |
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Fixed
Assets |
|
12.70 |
11.03 |
0.18 |
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Inventory |
|
111.22 |
109.28 |
0.94 |
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Debtors |
|
165.63 |
153.16 |
1.86 |
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Interest
Cover Ratio |
|
(25.69) |
(12.90) |
(24.73) |
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Operating
Profit Margin(%) |
|
(16.21) |
(10.84) |
(1339.80) |
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Profit
Before Interest And Tax Margin(%) |
|
(17.13) |
(12.78) |
(1365.67) |
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Cash
Profit Margin(%) |
|
(17.03) |
(12.14) |
(1402.49) |
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Adjusted
Net Profit Margin(%) |
|
(17.95) |
(14.09) |
(1428.36) |
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Return
On Capital Employed(%) |
|
0.00 |
0.00 |
0.00 |
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Return
On Net Worth(%) |
|
0.00 |
0.00 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
Biodata
Royal Airways (RAL),(earlier Modiluft), came out with a Rs
968.0 millions rights issue of 24.2
millions equity shares (premium : Rs 30) in Oct.'94. The company which
commenced operations as a private air-taxi operator with a single airline in
1993 has at present a fleet of four aircraft and operates between 15 cities in
Royal Airways has tied up with Deutsche Lufthansa (Lufthansa), in the areas of
personnel training, maintenance, repairing of engines, etc. In 1994, RAL was
awarded the coveted Scheduled Airline status and consequently it obtained the
associate membership of the International Air Transport Association (IATA).
The company has inter-line agreements with all major foreign airlines, an
extensive network of sales agents and worldwide communication network for
making reservations from any part of the world which enables the company to
earn revenue in foreign exchange.
In 1999-2000, the RAL entered into an agreement with Royal Holding Services,
The company is taking steps to relaunch its Airline Operations with the
conditions imposed in the NOC issued by the Ministry of Civil Aviation.
During May 2005 the company has commenced its commercial operations with its
filght and it currently operates with a fleet of three leased Boeing aircraft
connecting Ahemdabad,
Corporate Overview
Subject’s mission is to become
With
The power to fly for everyone
Subject is a low fare airline that will not treat passengers as sheep. With a dynamic fare structure, subject will not only offer limited seats at Red Hot Fares, but even it’s Everyday Spicy Fares, available up to the day of travel, will be well below industry standards. With contemporary interiors, modern graphics and vibrant colours, subject is very much like today’s traveler - practical yet stylish. A subject will feel ‘this is the smart, international way to travel; I've made the smart choice’. Subject is committed to make sure you feel good at the end of a flight, arriving at the destination uncrumpled and ready for anything.
The power of technology
Subject's new generation fleet of aircraft is backed by cutting edge technology and infrastructure to ensure the highest standards in operating efficiency. With maintenance support by KLM and state of the art technology from world leaders like Star Navigation, Russell Adams and Tech Log there will be no compromise on safety, reliability or on-time travel. The company has tied up with Navitaire the world’s renowned low-cost support for reservations and revenue management. E-booking and e-ticketing facilities are available online along with tele-booking.
The power of performance.
From aircraft to crew and ground staff the focus is on performance. Each Subject employee is groomed to be smart, friendly, efficient and well-informed, ensuring that any interaction will make you feel welcome and looked after. Experienced pilots, well-trained cabin crew will make every flight a comfortable one. The philosophy is no-frills but high-performance.
The power of safety
Subject invests heavily in safety, impeccable maintenance and a high level of expertise. Experienced pilots, engineers and maintenance crew go through rigorous training and are hand-picked for their technical knowledge and expertise. So you can rest assured that there is no cut-back in this key area of modern day flying.
The power behind the power to fly
Subject's key management personnel are all senior, seasoned
professionals and have significant international experience in both launching
and managing low-cost airlines. With thousands of cumulative man hours in the
industry, the management is committed to bring to customers in
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.41.18 |
|
|
1 |
Rs.82.41 |
|
Euro |
1 |
Rs.55.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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. |
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 |
|