%20LIMITED%20-%20ICICL%2014-Dec-2007_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
14.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
JET AIRWAYS
(INDIA) LIMITED |
|
|
|
|
Formerly Known
as : |
JET AIRWAYS INDIA
LIMITED PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
SM Centre, Near Marol
Naka, Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2007 |
|
|
|
|
Date of
Incorporation : |
01.04.1992 |
|
|
|
|
Com. Reg. No.: |
11-66213 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1992PLC066213 |
|
|
|
|
TAN No.: (Tax
Deduction & Collection Account No.) |
MUMJ00366C /
MUMJ06594A / MUMJ05793ES |
|
|
|
|
Legal Form : |
A Public Limited Liability
Company. The company’s shares are listed on the Stock Exchanges. At present, it is
quoted below offer price to the public. |
|
|
|
|
Line of
Business : |
Domestic Airline
operations in India on main Trunk routes. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Ba |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
||
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
||
|
Maximum Credit
Limit : |
USD 890000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment
Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a
leading private sector airline in India. It is respectable and reputed airlines
and known for better services in comparison to public sector airlines and
Hence fetches premium price. Due to fierce competition, the profit margin is
under severe pressure. It’s financial position can be regarded as average. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered/
Head Office : |
SM Centre, Near
Marol Naka, Andheri Kurla Road, Andheri (East), Mumbai – 400 059,
Maharashtra, India |
|
Tel. No.: |
91-22-28505080 /
4271 / 5627 / 5628 / 5629 / 2875091 |
|
Fax No.: |
91-22-28560622 /
2046861 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branches : |
Located at:- Y Mumbai, Maharashtra Y Ahmedabad, Gujarat Y Goa Y Kochi, Kerala Y Kolkata, West Bengal Y Mangalore, Kerala Y Bangalore, Karnataka Y Hyderabad, Andhra Pradesh Y Chennai, Tamilnadu Y Coimbatore Y Delhi |
DIRECTORS
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ali Ghandour |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Victoriano
P. Dungca |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Charles A.
Adams |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. R. Gagrat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Javed Akhtar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. I. M. Kadri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. R. S.
Oberoi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Vijay L
Kelkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. G.
Pitroda |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Saroj K.
Datta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yash Raj
Chopra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shah Rukh
Khan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Pierre J.
Jeanniot |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman (Non Resident Indian) |
|
Date of
Birth/Age : |
64 years |
|
Experience : |
32 years |
|
|
|
|
Name : |
Mr. Steve Forte |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Narendra Mehra |
|
Designation : |
Company Secretary |
|
|
|
|
MANAGEMENT : |
|
|
|
|
|
Name : |
Mr. Wolfgang Prock-Schauer |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Saroj K.
Datta |
|
Designation : |
Executive Officer |
|
|
|
|
Name : |
Mr. Dale Moss |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Garry
Kingshott |
|
Designation : |
Chief Commercial Officer |
|
|
|
|
Name : |
Mr. Carl Saldanha |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Raja
Parthasarathy |
|
Designation : |
Executive Vice President – Finance |
|
|
|
|
Name : |
Ms. Anita Goyal |
|
Designation : |
Executive Vice President – Marketing and Sales |
|
|
|
|
Name : |
Capt. Werner
Borchert |
|
Designation : |
Vice President – Flight Operations |
|
|
|
|
Name : |
Mr. Sepp Heinrich |
|
Designation : |
Vice President – Technical |
|
|
|
|
Name : |
Mr. Sitham
Nadarajah |
|
Designation : |
Vice President – Technical (Projects) |
|
|
|
|
Name : |
Capt. Ray
Heiniger |
|
Designation : |
Vice President – Flight Operations |
|
|
|
|
Name : |
Capt. Gustav
Baldauf |
|
Designation : |
Vice President – Flight Operations |
|
|
|
|
Name : |
Mr. B. P. Baliga |
|
Designation : |
Vice President – Support Services
|
|
|
|
|
Name : |
Capt. K. Mohan |
|
Designation : |
Vice President – Flight Operations (Special Projects) |
|
|
|
|
Name : |
Mr. P. K. Sinha |
|
Designation : |
Vice President – Passenger Sales |
|
|
|
|
Name : |
Dato' K. Jeyakanthan |
|
Designation : |
Vice President – Engineering Services |
|
|
|
|
Name : |
Mr. Poh Leong Choo |
|
Designation : |
Vice President – Inflight and Catering Services |
|
|
|
|
Name : |
Mr. Prasun Sengupta |
|
Designation : |
Vice President – Corporate Administration |
|
|
|
|
Name : |
Ms. Nandini Verma |
|
Designation : |
Vice President – Corporate Affairs and Public Relations |
|
|
|
|
Name : |
Mr. N. Hariharan |
|
Designation : |
Vice President – Office of the Chairman |
|
|
|
|
Name : |
Mr. Rajesh Sharma |
|
Designation : |
Vice President – Controller |
|
|
|
|
Name : |
Mr. Ashok Barimar |
|
Designation : |
General Counsel and Vice President – Legal
|
|
|
|
|
Name : |
Ms. Ragini Chopra |
|
Designation : |
Vice President – North India |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Vice President – Marketing |
|
|
|
|
Name : |
Ms. Sonu Kripalani |
|
Designation : |
Vice President – Passenger Sales (India) |
|
|
|
|
Name : |
Mr. Sarat Chandran |
|
Designation : |
Vice President – Human Resources and Development |
|
|
|
|
Name : |
Mr. Anind Datta |
|
Designation : |
Vice President – Purchase and Properties |
|
|
|
|
Name : |
Mr. V. Raja |
|
Designation : |
Vice President – Asia Pacific |
|
|
|
|
Name : |
Mr. Mike Johnson |
|
Designation : |
Vice President – Engineering and Maintenance |
SHAREHOLDING
PATTERN
Category
|
No. of shares
|
% of shareholding
|
Promoters' holdings
|
|
|
|
Promoters |
69067205 |
80.00% |
|
Persons acting in
concert |
553 |
0.00% |
|
|
|
|
Non promoter's holdings
|
|
|
Institutional Investors
|
|
|
|
Mutual Funds and
UTI |
2503189 |
2.90% |
|
Banks, Financial
Institutions and Insurance Companies |
1898779 |
2.20% |
|
FIIs |
9074567 |
10.51% |
|
|
|
|
Others
|
|
|
|
Private Corporate
Bodies |
966268 |
1.12% |
|
Indian Public |
2632049 |
3.05% |
|
NRIs / OCBs |
58492 |
0.07% |
|
Any Other |
132909 |
0.15% |
|
|
|
|
|
TOTAL |
86334011 |
100.00% |
BUSINESS DETAILS
|
Line of
Business : |
Domestic Airline
operations in India on main Trunk routes. |
GENERAL
INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
No. of
Employees : |
About 8815 |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Bankers : |
v
Abu Dhabi
Commercial Bank Limited Rehmat Manzil, 75 – B Veer Nariman
Road, Mumbai – 400038 Tel : 91-22-22839509 Fax : 91-22-22870686 v
Barclays
Bank Plc 21/23 Maker Chambers VI,
Nariman Point, Mumbai – 400021 Tel : 91-22-56387114 Fax : 91-22-56387184 v
Calyon Bank Hoechst house, 11th
Floor, Nariman Point, Mumbai – 400021 Tel : 91-22-56319000 Fax : 91-22-56351813 v
Citibank
N.A. 7th Floor, Plot C –
61, Bandra Kurla Complex, G – Block, Bandra,
Mumbai 400051. Tel : 91-22-26535029/5030 Fax : 91-22-26535861/5862 v
Corporation
Bank Veena Chambers, 21 Dalal
Street, Mumbai – 400023 Tel : 91-22-22671715 Fax : 91-22-22672101 v
Deutsche Bank
AG Kodak House, 222, Dr. D.N.
Road, Fort, Mumbai – 400001 Tel : 91-22-22061050/22070692 Fax : 91-22-22072966/22067322 v
HDFC Bank
Limited Ground Floor, Maneckji Wadia
Building (Kalpataru Heritage), Nanik Motwani Marg, Fort, Mumbai – 400023 Tel : 91-22-24902961 Fax : 91-22-24963994 v
The Hong
Kong and Shanghai Banking Corporation 52/60, Mahatma Gandhi Road,
Mumbai – 400001 Tel : 91-22-22681020 Fax : 91-22-22653812 v
ICICI Bank
Limited Free Press House, 215, Nariman
Point, Mumbai – 400021 Tel :
91-22-22818077/26536457/35 Fax : 91-22-26531233 v
IDBI Bank
Limited Mittal Tower, ‘A’ Wing, Nariman
Point, Mumbai – 400021 Tel : 91-22-22824057/65 Fax : 91-22-22824071 v
ING Vysya
Bank Limited Mittal Tower, ‘A’ Wing, Nariman
Point, Mumbai – 400021 Tel : 91-22-22882616/ 56666419 Fax : 91-22-22818558 v
Standard
Chartered Bank 90 Mahatma Gandhi Road, Mumbai
– 400001 Tel : 91-22-22683575 Fax : 91-22-22624912 v
State Bank
of India Overseas Branch, World Trade
Centre, Cuffe Parade Mumbai – 400005 Tel : 91-22-22181518/ 22189161 Fax : 91-22-22188343/8741 v
UTI Bank
Limited 1st Floor,
Jamnabhoomi Bhavan, jamnabhoomi Marg, Fort, Mumbai – 400005 Tel :
91-22-22835782/84/86/87/88 Fax : 91-22-22844113 v
DBS Bank
Limited v
Kotak
Mahindra Bank Limited v
Dena Bank v
Canara Bank |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors 1 : |
Deloitte Haskins
and Sells Chartered
Accountants, |
|
Address : |
12, Dr. Annie
Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018,
Maharashtra, India |
|
|
|
|
Auditors 2 : |
Chaturvedi and
Shah Chartered
Accountants |
|
Address : |
Laxmi Towers, “A”
Wing, Bandra-Kurla Complex, Mumbai – 400 051, Maharashtra, India |
|
|
|
|
Associates/Subsidiaries
: |
Ř Tailwinds Limited Ř Jet Air Skyline Transport Private Limited Activity - Travel, Ticketing and C
& F business Ř Jetair Private Limited Ř Jet Enterprises Private Limited Ř Jet Airways LLC Ř Jet Aieways of India Inc Ř Jetan Tours Private Limited Ř Vimpal Holding Private Limited Ř International Cargo Carriers Private
Limited Ř National Travel Services |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
180,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1800.000 millions |
|
20,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 200.000 millions |
|
|
Total |
|
Rs. 2000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
86,334,011 |
Equity Shares |
Rs. 10/- each |
Rs. 863.340 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
863.300 |
863.300 |
863.300 |
|
|
2] Reserves &
Surplus |
21509.200 |
22195.500 |
19238.300 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
22372.500 |
23058.800 |
20101.600 |
|
|
|
|
|
|
|
|
Subordinated Debt |
0.000 |
0.000 |
3341.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7424.600 |
2060.200 |
600.000 |
|
|
2] Unsecured
Loans |
53138.400 |
46895.800 |
25707.300 |
|
TOTAL BORROWING
|
60563.000 |
48956.000 |
26307.300 |
|
|
DEFERRED TAX
LIABILITIES |
3310.600 |
3206.600 |
1948.500 |
|
|
|
|
|
|
|
TOTAL
|
86246.100 |
75221.400 |
51698.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
32974.900 |
21224.800 |
26086.300 |
|
Capital work-in-progress
|
39945.200 |
26656.700 |
320.200 |
|
|
|
|
|
|
|
INVESTMENT
|
689.300 |
1872.300 |
15957.300 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
4389.900 |
4052.500 |
3325.200 |
|
|
Sundry Debtors
|
6039.000 |
4331.500 |
2523.100 |
|
|
Cash & Bank Balances
|
10966.400 |
21042.500 |
12242.400 |
|
|
Loans & Advances
|
12249.400 |
11348.800 |
2353.300 |
Total Current Assets
|
33644.700 |
40775.300 |
20444.000 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
18526.400 |
10656.200 |
7731.700 |
|
|
Provisions
|
2481.600 |
4651.500 |
3377.600 |
Total Current Liabilities
|
21008.000
|
15307.700
|
11109.300
|
|
Net Current Assets
|
12636.700 |
25467.600 |
9334.700 |
|
|
|
|
|
|
|
TOTAL
|
86246.100 |
75221.400 |
51698.500 |
|
PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales Turnover [including other
income]
|
74013.100 |
61354.700 |
44201.700 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
513.600 |
7222.600 |
5821.300 |
Provision for Taxation
|
234.200 |
2702.200 |
1901.400 |
Profit/(Loss) After Tax
|
279.400 |
4520.400 |
3919.900 |
|
|
|
|
|
Export Value
|
NA |
13726.600 |
6058.200 |
|
|
|
|
|
Import Value
|
NA |
1420.500 |
1103.200 |
|
|
|
|
|
Total Expenditure
|
73499.500 |
54132.100 |
38380.400 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
|
|
|
|
|
|
Sales
Turnover |
|
18066.700 |
18185.500 |
|
Other
Income |
|
1763.600 |
4356.200 |
|
Total
Income |
|
19830.300 |
22541.700 |
|
Total
Expenditure |
|
17363.400 |
19193.500 |
|
Operating
Profit |
|
2466.900 |
3348.200 |
|
Interest |
|
644.300 |
1179.900 |
|
Gross
Profit |
|
1822.600 |
2168.300 |
|
Depreciation |
|
1327.800 |
1743.300 |
|
Tax |
|
81.100 |
(41.800) |
|
Reported
PAT |
|
308.800 |
283.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.37 |
7.36
|
8.86 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.69 |
11.77
|
13.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.77 |
11.64
|
12.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
0.31
|
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.93 |
1.10
|
0.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.60 |
1.60
|
2.19 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject was
incorporated on 1st April, 1992 at Mumbai in Maharashtra having
Company Registration Number 66213 as a private limited company under the
Companies Act, 1956. the Company became a deemed public limited company on 1st
July, 1996 and was converted into a private limited company on 19th
January, 2001. The company became a public limited company on 28th
December, 2004.
Subject commence
the operations as an Air Taxi Operator on 5th May, 1993 with a fleet
of four leased Boeing 737 aircraft. They were granted scheduled airline status
on 14th January, 1995.
At the time of
incorporation of the company, its shareholders were Mr. P.V.V. Chalam and mrs.
Anita Goyal. These shares were transferred to Tail Wi9nds on 12 May, 1994, and
Mr. Naresh Goyal holds them on behalf of Tail Winds in terms of RBI approval
letter No. EC.BY.CO. (S) 250/2251/TS/93/94 dated 30th December,
1993.
Subject currently
provide regular scheduled services to 42 destinations in India and two
destinations outside India, operating 1924 flights weekly. Its aircraft fleet
has grown from four aircraft in 1993 to currently 42 aircraft comprising 34
Boeing 737 aircraft and eight ATR 72-500 aircraft. They have also accepted
delivery of one additional Boeing 737-800 aircraft, which will be included in
to services after it is refurbishing and upon receipt by them of final DGCA
approval to operate the aircraft.
Business:
Subject is engaged
in Domestic Airline operations in India on main Trunk routes.
Generic Names of the
Principal Products/Services of the company are:-
Ř Passenger Services
Ř Cargo
Ř Excess Baggage
Subject has the
following aircrafts in its' service.
|
Aircraft |
No. of services |
|
B 737-800 |
9 |
|
B 737-700 |
10 |
|
B 737-400 |
10 |
|
ATR 500 |
6 |
Subject covers the
following routes:-
- Mumbai-Delhi
- Mumbai-Kolkata
- Mumbai-Goa
- Mumbai-Hyderabad
- Mumbai-Mangalore
- Mumbai-Bangalore
- Mumbai-Coimbatore
- Mumbai-Chennai
- Delhi-Jammu
- Delhi-Guwahati-Bargoda
Subject started its
operations on 5th March, 1993.
It purchases its
requirements 100% from international market against Contract, Cash or L/C
terms.
It sells 84.73% in
local market and 15.27% in international market against Cash or L/C terms.
It imports from
U.S.A., Australia and Singapore.
Subject operates over
225 flights daily to 44 destinations across the country. The rapid expansion of the route network has
earned the prestigious Air Transport World Award 2001 for market development.
It has 7 Nos. of
Boeing 737-300 & 300 services of which 2 are owned and 5 are wet leased and
also owns 5 Nos. of 50 senter Air-crafts, and 7 Nos. of ATR – 72 Air-crafts.
Subject has
alliances with some of the best airlines, hotels and car rental services such
as :
Ř The Park Hotels
Ř The Oberoi Group
Ř The Leela Hotels and Resorts
Ř Radisson Hotels and Resorts Worldwide
Ř AVIS
Ř Citibank
Ř KLM Royal Dutch Airlines
Ř Northwest Airlines
Ř British Airways
The company has
entered into tie up for Interline agreement with 12 International Airlines to
fly their passengers in India. Some of them are British Airways, KLM Royal
Dutch Airlines, Northwest Airlines, Air-Canada, Malaysian Airways, Swiss Air,
Delta, Gulf Air, etc.
Subject is the
first Indian airline to receive the World Travel Market Global Award, the
world's premier global travel event in London.
It has also won the H & FS Domestic Airline of the year Award
twice.
Employee Remuneration and Benefits :
Expenses pertaining
to Employee Remuneration and Benefits increased by 51.4% from Rs. 3747 million in
Fiscal 2005 to Rs. 5672 million in Fiscal 2006. This increase reflects
increases in salaries and benefits, as well as the increase in average
headcount from 7082 during Fiscal 2005 to 8285 during Fiscal 2006. To meet
operational requirements in Fiscal 2006, the Company employed expatriate pilots
on short-term contracts, which also contributed to the increase in payroll and
related costs.
Selling and Distribution Costs :
Selling and Distribution Costs increased by 38.4% from Rs. 5591 million in Fiscal
2005 to Rs. 7740 million in Fiscal 2006. This increase is attributable
to:
1] increase of 29.7% in costs related to Computerised Reservation Systems (CRS)
and Global Distribution Systems (GDS) from Rs. 1036 million in Fiscal 2005 to
Rs. 1344 million in Fiscal 2006
essentially due to the increase in the number of passengers;
2] increase of 34.3% in commission costs paid to General Sales Agents (GSAs)
and travel agents from Rs. 4208 million in Fiscal 2005 to Rs. 5653 million in
Fiscal 2006. This was due to the increased passenger revenues and revised
productivity-based incentives given to travel agents. The increase was partly
offset by an agreement to reduce the overriding commission paid to our General
Sales Agent (GSA) in India from 3% to 2% for passenger revenues and from 2.5%
to 2% for cargo revenues with effect from 1st April, 2005; and
3] increase in advertisement expenses incurred in Fiscal 2006, which was in
part due to advertising for the launch of international operations to
Singapore, London (Heathrow) and Kuala Lumpur.
Aircraft Rentals :
Aircraft Rentals increased by 118.5% from Rs. 1986 million in Fiscal 2005 to
Rs. 4340 million in Fiscal 2006, due to the induction of more leased aircraft
during Fiscal 2006; including wide-bodied aircraft for long-haul international
operations. This was offset to a small extent by the reduction in lease rentals
negotiated with lessors at the time of renewal of leases of certain
aircraft.
Subject has
received the following Awards
|
February, 2004 |
Subject won all
three awards, instituted during the year by “feBusiness Traveller”, viz for
“Best Business Class”, “Best Economy Class” and “Best Service (Airport and
Inflight)’, in the Domestic Airline Category. |
|
December, 2003 |
Subject won the
first ever Galileo-express Travel and Tourism Award for “India’s Best
Domestic Airline” for the year 2003. |
|
August, 2003 |
Subject was
declared a “Superbrand” by the world’s leading authority on branding, the
Superbrands Council. |
|
May, 2003 |
Subject awarded
the Boeing Company Award for maintaining “Best Technical Despatch
Reliability” for 2002, in view of maintaining technical despatch reliability
in excess of 99% during the calendar year 2002. |
|
February, 2001 |
Air Transport World's
Market Development Award |
|
March. 2000 |
H & FS – Best
Domestic Airline of the year 1999 for excellence in hospitality |
|
January, 2000 |
Vocational
Excellence Award by Rotary Club of Mumbai North End |
|
December, 1998 |
H & FS – Best
Domestic Airline of the year 1998 for excellence in hospitality |
|
November 5 to 8,
1998 |
The International
Brand Summit |
|
1996-97 |
Best Airline of
the year 1996-97 Award conducted by IATA Agents Association, Calicut,
Tamilnadu |
|
November 20 &
22, 1997 |
Best Domestic
Airline Award for Service Excellence – Key to Competitiveness |
|
September 18
& 21, 1997 |
H & FS Award
by The Rangaswamy Tourism Foundation associated wit the Karnataka State
Tourism Development Corporation |
|
December 13, 1996 |
Best Domestic
Airline of the year for excellence in hospitality |
|
November 12, 1996 |
The World Travel
Market Global Award by Reed Exhibition Companies in conjunction with Trav
Talk for contribution to travel and tourism in the respective media sponsor
regions worldwide |
|
October 24, 1996 |
The Great
Management Show Award for punctuality, safety, quality of service and
customer orientation |
|
September 12,
1996 |
Citibank Diners
Club Blue Moon Award for Service Excellence |
|
October 17, 1994 |
Service Excellence
Award at an International seminar called "Global Managers in Jurassic
Park" hosted by Global Managers. |
SOME KEY EVENTS
The chronology of
some key events since the company was incorporated on 1st April,
1992 is as follows :
|
April 1, 1992 |
Incorporated as a
Private Limited Liability company. |
|
May 5, 1993 |
Commence the
operations as an Air Taxi Operator |
|
April 4, 1994 |
First Airline in
India to operate the Boeing 737-400 aircraft. |
|
January 14, 1995 |
Granted scheduled
airline status |
|
December 30, 1996 |
First private
airline in India to execute purchase agreement for Boeing aircraft. |
|
November 12, 1997 |
First private
airline in India to acquire its own aircraft using US EXIM guarantee. |
|
September 16,
1998 |
First private
airline in India to fly Boeing 737 NG aircraft |
|
October 6, 1998 |
First private
airline in India to fly ATR 72-500 aircraft. |
|
July 1, 2000 |
Introduced “Jet Mobile”.
An online system that provides flight schedule updates to passengers on their
mobile phones. |
|
February 5, 2001 |
Won the
prestigious Air Transport World’s Market Development Award. |
|
April 22, 2002 |
30 millions
passengers flown since commencement of operations. |
|
May 14, 2003 |
First airline in
India to operate the Boeing 737-900 aircraft. |
|
March 23, 2004 |
Commenced
operations to Colombo, Sri Lanka. |
|
May 14, 2004 |
Commenced
operations to Kathmandu, Nepal |
Its major customers
include Individuals, Government Bodies and all types of passengers.
Object of the company
Subjects main
objects as contained in their Memorandum of Association are:
To established, maintain,
operate and provide safe, efficient, economical and properly coordinated air
transport services and lines of aerial conveyance (including scheduled and
chartered domestic and international services) for the carriage of passengers,
baggage, mail and freight.
To purchase, take
on lease and/or hire or otherwise acquire, own, employ, maintain, work, manage,
control, let on hire, charter, lease, demise all forms of aerial conveyance for
the purpose of transporting or carrying passengers, baggage, mail and freight,
and merchandise of all and every kind and description, whether as principals,
agents or otherwise on national and international routes.
The main objects
clause and objects incidental or ancillary to the main object of the Memorandum
of Association of the company enable them to undertake their existing
activities and the activities for which the funds are being raised through this
offer.
The company’s fixed
assets of important value include:
Plant and Machinery
Furniture and
Fixtures
Electrical Fittings
Data Processing
Equipment
Office Equipment
Ground Support
Equipment
Vehicles
Aircraft and Spare
Engine
Leased Aircraft
Leased Property
Simulator
Software
Directors Reports:
DIVIDEND
The Board of Directors has recommended a dividend of Rs. 6 per Equity Share
(Previous year: Rs. 6 per Equity Share). The dividend together with tax on
distributed profits will absorb a sum of Rs. 606.000 millions(Previous Year:
Rs. 590.700 millions) and will be paid to those Members whose names appear on
the Register of Members of the Company as at the close of business hours on
Friday, 14th September, 2007.
REVIEW OF OPERATIONS
During the year under review, air travel in India continued to show
strong growth, both domestic and international. The Company carried 10.73
million revenue passengers, an increase of 12.2% over the previous financial
year. Revenue Passenger Kilometers (RPKms) grew by 28.5% to 12,307 million.
Operating revenues at Rs. 70577.800 milllions were 25.0% higher than the previous
year.
Increased competition in the domestic market impacted the yield per passenger
and, consequently, the overall revenues. The Company significantly increased
its international operations during the year under review. The Company's
international flights have been well received, and both the product and the
service appreciated. International routes usually require around eighteen
months to two years to achieve profitability, particularly since the Company is
competing and will compete with a number of well-established carriers on the
routes that it operates and intends to operate. The Delhi-Kathmandu-Delhi,
Mumbai-Singapore-Mumbai, Delhi-Bangkok-Delhi, Chennai-Colombo-Chennai,
Chennai-Kuala Lumpur-Chennai and Chennai-Singapore-Chennai routes have broken
even and the Directors are confident that over the years the Company's
international operations will contribute significantly to the Company's
future.
During the year under review, the Company commenced operations on following new
international routes:
* Delhi-Bangkok-Delhi* Kolkata-Bangkok-Kolkata* Amritsar-London-Amritsar*
Delhi-Singapore-Delhi* A second frequency on Mumbai-London-Mumbai
During the year under review, the Company added seven Boeing 737-800s and two
Airbus 330-200 aircraft to its fleet. The fleet size as on 31st March, 2007 was
62 aircraft compared to 53 aircraft as on 31st March, 2006.
In
December 2006, the Company entered into an agreement with the Boeing Company
for the purchase of 10 Boeing 787-800 aircraft to be delivered between July
2011 and December 2012 subject to the regulatory approvals.
SALE AND LEASEBACK OF AIRCRAFT
During
the year, the Company sold and leased back four Boeing 737-700s aircraft. The Company's
profit attributable to this transaction was Rs.2110.700 millions.
POST
BALANCE SHEET EVENTS
Jet
Lite (India) Limited
On
12th April, 2007, the Company reached a settlement with the shareholders of
Sahara Airlines Limited to implement the Share Purchase Agreement dated 18th
January, 2006, as amended, and to purchase the entire issued equity and
preference shares of Sahara Airlines Limited for a revised total consideration
which amounts to Rs. 14650.000 millions. The Company has paid Rs. 9150.000
millions and the remaining Rs. 5500.000 millions is payable in four equal
instalments of Rs.1375.0000 millions each, free of interest, on or before 30th
March, 2008, 30th March,2009, 30th March, 2010 and 30th March, 2011
respectively.
Pursuant
to the said settlement, a Consent Award was passed by the Arbitration Tribunal
before whom the parties had referred the disputes with regard to the above
Share Purchase Agreement, as amended.
Sahara Airlines Limited became a 100% subsidiary of the Company with effect
from 20th April, 2007. Subsequently with effect from 15th May, 2007 Sahara
Airlines Limited has been renamed Jet Lite (India) Limited. The Directors of
Jet Lite (India) Limited are presently Mr. Naresh Goyal, Mr.
Victoriano
P. Dungca, Dr. Vijay L. Kelkar, Mr. Javed Akhtar and Mr. Saroj K. Datta.
A team
of executives has been seconded by the Company to oversee the day-to-day
operations of Jet Lite (India) Limited.
Fleet
The Company has taken delivery and put into operations four Boeing 777-300 Extended
Range (ER) aircraft between May 2007 and July 2007. These wide-bodied aircraft
are being used on the Mumbai-London-Mumbai and
Mumbai-Brussels-Newark-Brussels-Mumbai routes. The innovative layout,
configuration and interiors of the aircraft, the in-flight entertainment
systems and the other facilities have been well received.
The aircraft have 8 First class, 30 Premier and 274 Economy seats. The
aircraft have been acquired on finance leases.
The Company has added two Airbus 330-200 aircraft to its fleet, which have been
acquired on finance leases, in April and May 2007 respectively.
The
configuration is 30 Premiere and 190 Economy seats with a layout similar to
that of the Boeing 777-300 ERs. The interiors, configuration and seats and
other facilities have also been well received. These aircraft are being used on
the London sectors. Additional aircraft to be delivered later in the Financial
Year 2007-08, will be deployed on the Johannesburg, Nairobi and Hong Kong
routes that are scheduled to be introduced, and will also be used to upgrade
the product on the Singapore and Kuala Lumpur routes from Winter 2007.
The Company has spent considerable time and effort in the design and planning
of these facilities as well as the in-flight product and services, to ensure
that they compare favourably with those offered by other world-class
carriers.
The Company has inducted one Boeing 737-700 aircraft on lease in August 2007
and one Boeing 737-800 on hire purchase in June 2007.
The
Company has, on expiry of the leases, returned to South African Airways, the
three Airbus 340-300 aircraft, which it had taken on operating leases in 2005.
The Company has also returned two Boeing 737-400 aircraft to the respective
lessors, on the expiry of the respective lease agreements, in April and May
2007 respectively.
As on 25th August, 2007, the Company's fleet comprised 65 aircraft.
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 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.39.37 |
|
UK Pound |
1 |
Rs.80.49 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|