MIRA
INFORM REPORT
|
Report Date : |
07.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
AIR INDIA LIMITED |
|
|
|
|
Registered Office : |
Hansalaya
Building, 5th Floor, 15, Barakhamba Road, New Delhi – 110 001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
01-05-1992 |
|
|
|
|
Com. Reg. No.: |
55-48581 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U62100DL1992PLC048581 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA00110F |
|
|
|
|
Legal Form : |
Government of
India undertaking company |
|
|
|
|
Line of Business : |
Air Transport
Services |
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 13500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a
Government of India company having satisfactory track. Profit margin is under
pressure. As gathered, payments to local suppliers are slow but correct.
Management is trying to improve it’s profitability amidst growing competition.
It intends to go public in due course. As the subject is
a Government of India Company, lenders and Creditors can feel confident due
to the exposure of Government of India. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Hansalaya
Building, 5th Floor, 15, Barakhamba Road, New Delhi – 110 001,
India |
|
Tel. No.: |
91-11-23736446 /
23731225 / 23313091 |
|
Fax No.: |
91-11-23328809 |
|
E-Mail : |
s.venkat@airindia.in |
|
Website : |
|
|
Telex : |
011-78127 /
011-78223 |
|
Gram : |
AIR India |
|
|
|
|
Corporate Office
/ Head Office : |
Air India
Building, 21st Floor, Nariman Point, Mumbai – 400 021, India |
|
Tel. No.: |
91-22-22024142 |
|
Fax No.: |
91-22-22023686 |
|
|
|
|
Sales Office : |
Ahmedabad, Gujarat Amritsar, Punjab Anand, Gujarat Bhopal, Madhya Pradesh Bangalore, Karnataka Kolkata, West Bengal Baroda, Gujarat Chandigarh Calicut Chennai, Tamilnadu Coimbatore Goa Delhi Hyderabad, Andhra Pradesh Jalandhar, Punjab Jaipur, Rajasthan Kanpur, Uttar Pradesh Lucknow, Uttar Pradesh Mumbai, Maharashtra Malappuram, Kerala Mangalore, Kerala Nagpur, Maharashtra Pune, Maharashtra Rajkot, Gujarat Surat, Gujarat Thiruvananthapura, Kerala Trichy, Kerala Thiruvalla Trichur, KErala Varanasi, Uttar Pradesh Kozhikode Kochi, Kerala |
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|
|
|
Oversea
Offices : |
Abu Dhabi Amsterdam Bangkok Bahrain Chicago Copenhagen Dar-Es-Salam Dhahran Doha Dubai Hong Kong Jeddah Jakarta Kula Lumpur Kuwait Lagos Los Angles Muscow Mauritius Muscat Nairobi New York Osaka Paris Riyadh Singapore Tokyo Vienna Zurich |
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|
|
|
Online Offices
: |
Ahmedabad Amritsar Bangalore Kolkata Kozhikode Chennai Delhi Goa Hyderabad Kochi Mumbai Thiruvananthapuram |
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|
|
|
Guest House : |
Welfare Section, HRD Department, Santacruz (East), Mumbai – 400 029 Tel No.
91-22-26157777 (Extn. 5275) Mr. Ajay Thakur –
Senior Manager – Personnel HRD Department, IGI Airport, New Delhi Tel No.
91-11-25696621 Mr. D. S. Kohli –
General Manager – NI |
DIRECTORS
|
Name : |
Mr. V. Thulasidas |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
22B, Sterling Apartment, 38 Peddar Road, Mumbai – 400026, Maharashtra,
India |
|
Date of Birth/Age : |
25.03.1948 |
|
Date of Appointment : |
22.12.2003 |
|
|
|
|
Name : |
Mr. Vaghul Narayan |
|
Designation : |
Director |
|
Address : |
3, Sudarshan Apartment, 32, 1st Main Road, RA Puram,
Chennai – 600028 |
|
Date of Birth/Age : |
04.08.1936 |
|
Date of Appointment : |
12.12.1998 |
|
|
|
|
Name : |
Mr. Prashant Kumar Mishra |
|
Designation : |
Director |
|
Address : |
C – II, 40 Tilak Lane, New Delhi – 110001, India |
|
Date of Birth/Age : |
07.08.1948 |
|
Date of Appointment : |
30.12.2004 |
|
|
|
|
Name : |
Mr. Sunil Arora |
|
Designation : |
Director |
|
Address : |
C – II, 73 Shahjehan Road, New Delhi – 110001, India |
|
Date of Birth/Age : |
13.04.1956 |
|
Date of Appointment : |
16.06.2000 |
|
Date of Ceasing : |
11.06.2005 |
|
|
|
|
Name : |
Mr. V. Subramanian |
|
Designation : |
Director |
|
Address : |
E – 12, Hudco Place, Andrews Ganj, New Delhi – 110049, India |
|
Date of Birth/Age : |
17.06.1948 |
|
Date of Appointment : |
26.06.2000 |
|
Date of Ceasing : |
30.12.2004 |
|
|
|
|
Name : |
Mr. Raghu Menon |
|
Designation : |
Director |
|
Address : |
C – II, 38 Tilak Lane, New Delhi – 110001, India |
|
Date of Birth/Age : |
10.09.1951 |
|
Date of Appointment : |
10.09.2003 |
|
|
|
|
Name : |
Mr. Ramalingam K. |
|
Designation : |
Director |
|
Address : |
1 Airport Lane, Jor Bagh, Opposite Safdarjung Airport, New Delhi –
110003 |
|
Date of Birth/Age : |
10.12.1948 |
|
Date of Appointment : |
30.12.2004 |
|
DIN / PAN No. : |
00207932 |
|
Passport No. : |
Z1378767 |
|
|
|
|
Name : |
Mr. Kunamkumarath Muralidharan Unni |
|
Designation : |
Director |
|
Address : |
F – 24 Panch Jyot Co-operative Housing Society, Sector 29, Vashi,
Turbhe, Navi Mumbai -400705, Maharashtra, India |
|
Date of Birth/Age : |
10.11.1955 |
|
Date of Appointment : |
13.12.2006 |
|
DIN / PAN No. : |
01202428 |
|
Passport No. : |
E1669876 |
|
|
|
|
Name : |
Mr. Rajesh Kumar Singh |
|
Designation : |
Director |
|
Address : |
D – II/325, Vinay Marg, Chanakyapuri, New Delhi – 110003, India |
|
Date of Birth/Age : |
12.06.1963 |
|
Date of Appointment : |
22.01.2006 |
|
DIN / PAN No. : |
00241665 |
|
|
|
|
Name : |
Mr. V. K. Verma |
|
Designation : |
Commercial Director |
|
|
|
|
Name : |
Mr. Jitendra
Bhargava |
|
Designation : |
Director Public Relations |
|
|
|
|
Name : |
Mr. V. K. Mehra |
|
Designation : |
Director – Engineer Overhaul |
|
|
|
|
Name : |
Mr. Hasan Gafoor |
|
Designation : |
Director – Security |
|
|
|
|
Name : |
Mr. S. Punhani |
|
Designation : |
Director – Finance |
|
|
|
|
Name : |
Mr. Babu Peter |
|
Designation : |
Director – Engineering |
|
|
|
|
Name : |
Mr. Amod Sharma |
|
Designation : |
Director – Inflight Service & Corporate Affairs |
|
Address : |
A – 22, Sterling
Apartments, Peddar Road, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
04.09.1955 |
|
Date of Appointment : |
17.10.2005 |
|
|
|
|
Name : |
Capt. M. K. Hathi
|
|
Designation : |
Director – Operations |
|
|
|
|
Name : |
Mr. V.
Chandramouli |
|
Designation : |
Director – Internal Audit & Executive Director – Mumbai Airport |
|
|
|
|
Name : |
Mr. S.
Ranganathan |
|
Designation : |
Director – Ground Services |
|
|
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|
Name : |
Mr. S. Mukherji |
|
Designation : |
Director – Information Technology |
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|
|
|
Name : |
Mr. V. A.
Ferreira |
|
Designation : |
Director – Human Resources Development |
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|
|
|
Name : |
Mr. V.
Srikrishnan |
|
Designation : |
Director – Materials Management |
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|
|
|
Name : |
Mrs. S. Lalwani |
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Designation : |
Director – Planning & International Relations |
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|
|
|
Name : |
Capt. Deepak
Anand |
|
Designation : |
Director – Air Safety |
KEY EXECUTIVES
|
Name : |
Mr. S. Venkat |
|
Designation : |
Secretary |
|
Address : |
Flat # 8, Air India Apartments, 61B, Pali Hill, Bandra [West], Mumbai –
400050, Maharashtra, India |
|
Date of Birth/Age : |
17.10.1957 |
|
Date of Appointment : |
18.09.2002 |
|
|
|
|
Name : |
Mrs. M. Kacker |
|
Designation : |
Chief Vigilance Officer |
|
|
|
|
Name : |
Mr. I. S. Vhatkar |
|
Designation : |
General Manager – Properties and Facilities |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
President of India |
|
153836347 |
|
Mr. Raghu Menon |
|
10 |
|
Mr. V. Thulasidas |
|
10 |
|
Ms. Neelam Sanghi |
|
10 |
|
Mr. K. R. Singh |
|
10 |
|
Mr. Ajay Prasad |
|
10 |
|
Mr. Sanjay Narayen |
|
10 |
|
Mr. P. K. Mishra |
|
10 |
|
Mr. Sunil Arora |
|
10 |
BUSINESS DETAILS
|
Line of Business : |
Air Transport
Services |
|
|
|
|
Products : |
Air Transport
Carrier (of passengers and cargo) |
GENERAL
INFORMATION
|
No. of Employees : |
15603 |
|
|
|
|
Bankers : |
State Bank of India, New Delhi State Bank of India, Madame Cama Road, Nariman Point, Mumbai - 400 021 State Bank of India, Overseas Branch, World Trade Centre, Cuffe
Parade, Mumbai – 400005, Maharashtra, India Bank of Baroda, Kalina Branch, Santacruz East, Mumbai – 400029,
Maharashtra, India Bank of Baroda, New Delhi United Bank of India, New Delhi Central Bank of India, New Delhi ABN Bank, Amsterdam Standard Chartered Grindlays Bank Limited, Sydney Standard Chartered Grindlays Bank Limited, Auckland Bank Tejarat, Tehran Banco Central Hispano, Madrid Banco Do Roma, Rome Banco Nazionale Dal Lavord, Rome Bank for Foreign and Economic Affairs, Moscow Bank for Foreign Trade, Moscow Bank Handlowy, Warsaw Bank of Alexandria, Cairo Bank of America, Los Angeles Bank of America, San Francisco Bank of America, Washington Bank of America, Baroda (Uganda) Limited, Kampala Bank of Tokyo Mitsubishi, Tokyo Bank Tejarat, Teheran Banque Nationale De Paris, Paris Barclays Bank, Nairobi (APT) Barclays Bank, Gabarone British Bank of Middle East, Beirut Cesko Obchodni Bank , Prague Chase Manhattan Bank, New York Christiana Bank, Oslo Citi Bank, Jakarta Citi Bank, Dar-Es-Salam Citi Bank, New York Citi Bank, Manila Citi Bank, JFK APT-New York Citi Bank (USD A/C), Jakarta Commercial Bank of Greece, Athens Commerz Bank, Franfurt Cteditanstalt Bankverien, Vienna Den Danske Bank, Copenhagen Fleet Bank, New York Hungarian Foreign Trade Bank, Budapest Indo Nigerian Merchant Bank, Lagos Indo Zambia Bank, Lusaka Libyan Bank, Tripoli Myanma Economic Bank, Rangoon National Bank of Commerce, Dar-Es-Salam National Bank of Kuwait, Kuwait Natwest Bank, London Ned Bank, Johannesburg Nepali SBI Bank Limited, Katmandu Osnova Privredno Invest Bank, Belgrade Postal Account, Rome Royal Bank of Canada, Montreal Royal Bank of Canada, Toronto Saudi African Bank, Jeddah Skandinaviska Enskilda Banken, Stockholm Societe Generale Bank, Brussels Standard Bank of Ghana, Accra Standard Chartered Bank, Harare Standard Chartered Bank, Chittagaon Standard Chartered Bank, Kualalumpur UBS (SFR Coll/DISB Account), Geneva UBS (USD Coll cum DISB Account), Geneva UBS (SFR Refund Account), Geneva) Uttara Bank Limited, Dacca Wahda Bank, Tripoli Zambia National Commercial Bank, Lusaka Allied Bank of Nigeria, Lagos Banco De Roma, Rome Bank of Ceylon, Colombo Bank of Switzerland, Geneva Banque Paribas – (JPY Deposit), Paris Barclays Bank – (JPY Deposit), Paris BNL, Paris Citi Bank (JPY Deposit), Hong Kong Citi Bank (USD Deposit), Hong Kong Credit Anstalt Bankyerein, Vienna European Asian Bank, New York Hong Kong Shanghai Bank Corporation, Sydney HSBC Bank, Sydney Indo Nigerian Merchant Bank, Lagos Royal Bank of Canada, Montreal Security Bank, Manila Skandinaviska
Enskilda Bankens, Stockholm |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
G. S. Mathur & Company Chartered
Accountants Chhajed and Doshi Chartered Accountants Kalyaniwalla & Mistry Charterd Accountants, Kalapataru Heritage, 127 M. G. Road, Mumbai – 400023, Maharashtra,
India S. K. Mehta & Company Chartered Accountants, 2682 Gali No. 2, Beadon Pura Ajmal Khan Road Market, Karol Bagh, New
Delhi – 110005 |
|
|
|
|
Associates: |
All Government of
India Enterprises |
|
|
|
|
Subsidiaries : |
Hotel Corporation
of India Limited CIN No. :
U55101MH1971GOI015217 Air India
Charters Limited CIN No. :
U62100MH1971PLC015328 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
425636820 |
Equity Shares |
Rs. 10/- each |
Rs. 4256.400 millions |
|
7436318 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 743.600 millions |
|
|
TOTAL |
|
Rs. 5000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
153836427 |
Equity Shares |
Rs. 10/-
each |
Rs. 1538.400
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1538.400 |
1538.400 |
1538.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1859.600 |
1711.200 |
920.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3398.000 |
3249.600 |
2458.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12432.400 |
5659.500 |
9177.700 |
|
|
2] Unsecured Loans |
23786.700 |
6957.400 |
5579.300 |
|
|
TOTAL BORROWING |
36219.100 |
12616.900 |
14757.000 |
|
|
DEFERRED TAX LIABILITIES |
2086.400 |
2147.100 |
2611.100 |
|
|
|
|
|
|
|
|
TOTAL |
41703.500 |
18013.600 |
19826.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21954.500 |
24804.200 |
28202.300 |
|
|
Capital work-in-progress |
11853.300 |
219.100 |
171.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
870.200 |
582.600 |
596.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4613.600
|
3534.500 |
3469.500 |
|
|
Sundry Debtors |
14484.200
|
10437.300 |
9283.700 |
|
|
Cash & Bank Balances |
1879.100
|
2317.600 |
1872.800 |
|
|
Other Current Assets |
301.100
|
358.200 |
267.200 |
|
|
Loans & Advances |
10347.000
|
4476.600 |
3982.300 |
|
Total
Current Assets |
31625.000
|
21124.200 |
18875.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
21049.800
|
25182.400 |
24440.800 |
|
|
Provisions |
3572.400
|
3571.200 |
3650.600 |
|
Total
Current Liabilities |
24622.200
|
28753.600 |
28091.400 |
|
|
Net Current Assets |
7002.800
|
[7629.400] |
[9215.900] |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
22.700 |
37.100 |
72.300 |
|
|
|
|
|
|
|
|
TOTAL |
41703.500 |
18013.600 |
19826.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
88337.100 |
65347.100 |
53242.900 |
|
|
Handling, Servicing and Incidental |
0.000 |
10534.600 |
8223.600 |
|
|
Other Income |
4959.000 |
418.200 |
995.000 |
|
|
Total Income |
93296.100 |
76299.900 |
62461.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
124.300 |
501.400 |
146.300 |
|
|
Provision for Taxation |
25.100 |
[462.200] |
[777.000] |
|
|
Profit/(Loss) After Tax |
99.200 |
963.600 |
923.300 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
3450.500 |
N.A. |
N.A. |
|
|
Commission Earnings |
0.000 |
N.A. |
N.A. |
|
|
Other Earnings |
0.000 |
N.A. |
N.A. |
|
Total Earnings |
3450.500 |
N.A. |
N.A. |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Payments to and Provisions for Employees
including Crew Allowances |
0.000 |
11821.400 |
11123.800 |
|
|
Fuel and Oil |
0.000 |
21877.400 |
13397.500 |
|
|
Navigation, Landing, Housing and Parking |
0.000 |
5132.800 |
4020.100 |
|
|
Hire and Lease Rental Charges |
0.000 |
6831.900 |
4943.200 |
|
|
Handling Charges |
0.000 |
4515.700 |
3445.700 |
|
|
Material Consumed |
0.000 |
3946.000 |
2797.900 |
|
|
Passenger Amenities |
0.000 |
3731.900 |
2861.600 |
|
|
Commission [Net] |
0.000 |
3768.400 |
3593.300 |
|
|
Communication Charges |
0.000 |
1810.900 |
1782.800 |
|
|
Traveling Expenses |
0.000 |
3207.000 |
2938.700 |
|
|
Raw Material Consumed |
4651.800 |
0.000 |
0.000 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
12443.700 |
0.000 |
0.000 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Payment to Auditors |
4.400 |
0.000 |
0.000 |
|
|
Interest |
838.800 |
0.000 |
0.000 |
|
|
Insurance Expenses |
679.600 |
0.000 |
0.000 |
|
|
Power & Fuel |
31407.700 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
4061.900 |
4260.300 |
4433.100 |
|
|
Other Expenditure |
39083.900 |
4485.100 |
5799.400 |
|
Total Expenditure |
93171.800 |
75388.800 |
61137.100 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.10
|
1.26 |
1.47 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.13
|
0.65 |
0.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.23
|
1.09 |
0.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.15 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
17.90
|
12.73 |
17.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
0.73 |
0.67 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was originally
formed in the year 1946 as a Corporation under Indian Parliament Control and
later, on March 1, 1994 it was incorporated as a company under Indian
Corporation Act 1956.
The undertaking of
Air India was transferred to and vested in Air India Limited, a public limited
company registered under company’s act w.e.f. 1st March, 1994 after
Air Corporation (Transfer of Undertaking and Repeal) Act 1994 came into effect.
The Company
Registration Number is 48581.
The company at
present operates from 48 destinations.
Subjects Registered Office was shifted from 3rd Floor,
Towerii, Jeevan Bharati Building, 124 Connaught Circus, New Delhi – 110001,
India to the present address w.e.f. 07.08.2006
Tata Airlines
started the first scheduled airmail service in India on October 15, 1932 using
various small single-engined aircraft to operate domestic services all over
India. To emphasize its new civilian
status and its role as a public utility, Tata Airlines was converted into a
public limited company on 29th July, 1946 and renamed Air
India.
In 1952, the
Planning Commission recommended the nationalisation of Air Transport Industry to provide safe,
efficient, adequate, economical, properly coordinated International Air
services and to develop such services to the best advantage. This was effected on August 1, 1953 with the
creation of two nationalised corporations – Air India International Limited,
which retained its identity and international flag carrier status, and Indian
Airlines, to operate domestic services.
On 1st
May, 1992, Air India Limited was incorporated as a public limited company under
the Companies Act, 1956 with the main objectives of succeeding the
undertaking of Air India. The
President of India promulgated an ordinance called Air Corporation
(Transfer of Undertakings and Repeal) Ordinance 1994, repealing Air Corporation
Act, 1953. On March 7, 1994 Parliament
passed the Air Corporations (Transfer of Undertakings and Repeal) Ordinance,
1994. On March 1, 1994 under this
ordinance, undertakings of Indian Airlines and Air India was transferred to and
vested in Indian Airlines Limited and Air India Limited respectively.
Main activities of
the company are to provide safe, efficient, adequate, economical and properly
coordinated inland and international air services to passengers and customers
on ground and in air and also provide cargo services.
The entire
subscribed capital is held by the Government of India. The Government of India has decided to
disinvest its shareholding to bring down its stake to 40% in Air India.
One summer day in
1929, late Mr. Nevill Vintcent, a former Royal Air Force pilot came to India
from Britain on a barnstorming tour during which he surveyed a number of possible
air routes. He saw the immense potential for aviation in India. It came to pass
that he met late Mr. J.R.D. Tata, a young Indian who was the first to get his
A-licence in India and that too in the shortest number of hours.
Mr. Vintcent worked
out a scheme, secured Mr Tata’s approval and together they showed it to Mr.
Peterson, a Director of Tata Sons and Mr. J.R.D. Tata’s mentor. Sir Dorab Tata,
the then Chairman of Tata Sons, pleasantly surprised all by giving the scheme
his okay. So they went ahead and drew plans for the operation of an air service
from Karachi to Mumbai with one stop at Ahmedabad.
All that they asked
from the Government was a guarantee for only a year for the sum of Rs.1,
00,000. This, however, was turned down. The Tata-Vintcent combination was
naturally disappointed, but not dismayed. A second scheme was prepared. This
time the guarantee asked for was only Rs. 0.050 million for the first year, Rs.
0.025 million for the second year and after that no guarantee at all. This scheme
too was not accepted. The team tried a third time. This time they offered to
donate an air service to the Government of India, with no strings attached. The
Government agreed and thus was born Tata Airlines, which later became
Air-India.
On October 15, 1932,
a light single-engine Puss
Moth took off from Karachi on its flight to Mumbai (then known as Bombay)
via Ahmedabad. At the controls of the tiny plane was Mr Tata, operating the
first scheduled air service in the country. He landed with his precious load of
mail on a grass strip at Juhu. Life was simple then. There were no runways, no
radio facilities in the aircraft or on the ground. There were no pretty
hostesses, no aerodrome officers and no airport buildings. At Mumbai, Mr
Vintcent, took over from Mr. Tata and flew the Puss Moth to Chennai (then known
as Madras) via Bellary.
In 1933, the first
full year of its operations, Tata Airlines flew 160,000 miles, carried 155
passengers and 10.71 tonnes of mail. In the next few years, Tata Airlines
continued to rely for its revenue on the mail contract with the Government of
India for carriage of surcharged mail, including a considerable quantity of
overseas mail brought to Karachi by the Imperial Airways for destinations in
India. On the Karachi-Chennai route, frequency was stepped up to twice a week
in 1934, and a year later, a weekly service was started between Mumbai and
Trivandrum (now known as Thiruvananthapuram) with stops at Goa and Cannanore. In
1937, the frequency was stepped up to two per week and another flight between
Mumbai-Delhi via Indore, Bhopal and Gwalior was started. New planes began to
appear in the fleet. In addition to the original Puss Moth and Leopard Moth,
there were Wacos, DH-86s, DH-89s and Stinson Trimotors.
The introduction of
the Empire Airmail Scheme in February 1938 brought the
opportunity for further expansion and renovation of fleet. Tata Airlines
received a ten-year contract under the Scheme with guaranteed minimum payment
for the carriage of first class mail on the Karachi-Colombo and Karachi-Lahore
routes.
When the war came, the Empire Air Mail Scheme was suspended and the Government
took over the fleet of bigger DH-89s leaving the
airline to make do with the smaller Wacos and Stinsons. Later, during the war,
some Beachcraft Expeditors and DC-2s were loaned to Tata
Airlines, with the famous DC-3
(more popularly known as the Dakota) joining the fleet towards the end of the
war. Four surplus DC-3s were allotted to the airline by the US surplus property
authorities and in addition, about eight DC-3s were brought directly from the
US office of the Foreign Liquidation Commissioner.
If the war
interrupted the airline’s smooth progress, it provided other opportunities. The
airline was involved in a survey of South Arabia route, carriage of supplies to
Iraq, movement of refugees from Burma and overhaul and maintenance of RAF
equipment.
The transition to
civilian status immediately after the war caused few problems to the airline,
since it had already acquired considerable operating experience. To stress on
its new civilian status and its role as a public utility, Tata Airlines was
converted into a Public Limited Company on July 29, 1946 and renamed AIR-INDIA.
Around this time, the airline moved its operating base from Juhu to its present
location at Mumbai Airport.
At the beginning of
1947, Air-India turned its attention to the international scene. Towards the
end of the year, an agreement was reached with the Government of India for the
formation of Air-India International Limited to operate international services.
At Air-India’s request, the Government agreed to limit their capital
participation to 49 per cent, subject to an option to acquire, at any time, a
further two per cent from Air-India. Air-India was appointed technical manager
on a ten-year contract.
In order to make
the earliest possible start, Air-India had already placed a provisional order
for three Lockheed Constellations and arranged for the training of pilots and
other staff. Luckily, Lockheed was able to deliver the planes six months
earlier than planned because of cancellation of an order by another airline.
Thus, Air-India International, which was registered on March 8, 1948,
inaugurated its international operations modestly with a weekly service from
Mumbai to London via Cairo and Geneva on June 8, 1948.
On the domestic
front, however, storm clouds had begun to gather. The availability of cheap war
surplus DC-3s in the country had given rise to a number of airlines during the
immediate post war era. 21 companies were registered. However, only 11 were
licensed to operate 51 routes all over the country.
The early Fifties
saw the financial condition of airlines in India deteriorate to such an extent
that the Government decided to step in and nationalize the air transport
industry and accordingly, two autonomous corporations were created on August 1,
1953. Indian Airlines was formed with the merger of eight domestic airlines to
operate domestic services, while Air-India International was to operate the
overseas services (the word 'International' was dropped in 1962. Effective
March 1, 1994, the airline has been renamed Air-India Limited).
Nationalization opened a new chapter in the airline's history, which was marked
by the expansion of its fleet and routes. By mid-Fifties, Air-India had
replaced its fleet of Constellations with the larger, faster and more modern
Super Constellations. New destinations were added – Singapore and Hong Kong in
1954, Tokyo in 1955, Sydney in 1956 and Moscow in 1958.
The Fifties also witnessed Air-India bursting forth on the world air transport
scene with a refreshingly different publicity campaign. The little Maharajah,
who had first made his appearance as a symbol on a note-pad in mid-Forties,
began to appear all over the world in various garbs – in London he wore a
bowler hat and read The Times, in Sydney he was caught sun bathing on Bondi
beach, in Nairobi he went on a Safari and in Europe he went skiing, to the
intense amusement of the locals. No other airline quite matched Air-India’s
panache and subtle humour in promoting its services. Air-India became one of
the most talked about airlines in the world.
The jet age was already looming on the horizon and heralded revolutionary
changes in the air transport industry. Air-India was keeping a sharp eye on the
latest developments and decided to order the Boeing 707 in the late Fifties.
The first Boeing 707 was received in February 1960. This marked the airline’s
entry into the jet age.
The Boeing 707 enabled
Air-India to extend its Mumbai-London service to New York in May 1960. This was
a major step in the airline’s steady expansion into new markets. The other
major route to be added in the Sixties was Mumbai-Mauritius.
As the Sixties closed, Air-India in keeping with its tradition of ordering the
latest and the best planes available, placed an order for the Boeing 747-200s,
the first of which was delivered in April 1971. Over the next nine years,
Air-India received nine more planes at regular intervals, thus achieving the
biggest ever expansion of its fleet and capacity in its history, with
simultaneous expansion of all other facilities.
Another significant event was extraordinary expansion of services to the
various cities in the Gulf region. In 1970, Air-India was operating only a
couple of services a week from Mumbai to the Gulf, but following the oil boom,
there was a mass migration of Indian labour to the Gulf and other countries,
and Air-India had to step up services to meet the demand. At present, Air-India
operates over 75 services per week between India and the Gulf.
The latter half of
the Seventies also saw more services being launched to Africa. Further
expansion into Africa took place in the Eighties when services were started to
Dar-es-Salaam and Harare in Zimbabwe. Unfortunately, because of the economic
downturn in Africa and the consequent fall in traffic, services to Accra,
Lagos, Dar-es-Salaam and Harare were discontinued. The airline currently
operates flights to Nairobi/Dar-es-Salaam in Africa.
Air-India started the Eighties with a programme of fleet renewal. In the first
phase, Air-India purchased three Airbus A300-B4s in 1982. In the second phase,
six A310-300s were inducted into the fleet. The airline acquired two more
Boeing 747-300 Combi aircraft in October/November 1988 and two Airbus A310s in
August 1990. Four Boeing 747-400s were inducted into the fleet between August
1993 and July 1994. Two more Boeing 747-000s were inducted in November 1996. One
B 747-400 and nine Airbus 310s have been inducted on dry lease in the fleet in
the recent months.
Air-India has come
a long way from that far off day, way back in 1932 when all it had was one
palm-thatched hut at Juhu Airport, two single-engine planes – a Puss Moth and a
Leopard Moth - one full time pilot and two apprentice mechanics. From its
inception, Air-India has followed a policy of self-sufficiency. This has been a
matter of necessity for the simple reason that Air-India is located away from
the main centres of air transport activity in the world, and the planes could
not be sent out for either maintenance or major checks without disrupting
services and the subsequent loss of revenue.
This has meant, of course, a considerable investment in building extensive and
often expensive facilities, but the major advantage of this policy has been
that the airline now possesses one of the most modern and up-to-date
engineering bases in the world, capable of handling complete work on its fleet
of seven Boeing 747-400s, four Boeing 747-200s, two Boeing 747-300s and 17
Airbus A310-300s.
The engineering
base located in Mumbai is approved by the Directorate General of Civil
Aviation, the Indian regulating authority, and meets the stringent requirements
of manufacturers and regulatory agencies. Air-India Engineering facility has
been certified by the Federal Aviation Administration of USA as a “FAR 145
Repair Station" for overhaul of engines and Auxiliary Power Units (APUs)
including their accessories. Air-India has also acquired JAR-145 certification
from the Joint Aviation Authority of Europe. The airline has been awarded the
Quality System Certification ISO-9002, by the Bureau of Indian Standards,
accredited to R.V.A., Netherlands for its Engineering and Engine Overhaul
facilities and Ground Services.
Except in the initial stages, Air-India has never relied on either foreign
engineers or pilots and, over the years, has been able to train its own pilots,
engineers and technicians in-house to handle the most complicated pieces of
equipment. Air-India has also trained its cabin crew in the art of looking
after passengers at its own Cabin Crew Training Centre in Mumbai.
The airline's historic and Herculean effort of airlifting over 110,000 stranded
Indian nationals from Amman to Mumbai during August-October 1990 was,
recognized by the Guinness Book of Records for the largest evacuation of
civilians and was featured in its 1993 edition.
Air-India celebrated its 70th anniversary on October 15, 2002.
The President of India
promulgated an ordinance called Air Corporation (Transfer of Undertakings and
Repeal) Ordinance, 1994 repealing Air Corporation Act, 1953. On March 7, 1994 Parliament passed the Air
Corporations (Transfer of Undertakings and Repeal) Ordinance 1994. On March 1, 1994 under this ordinance,
undertakings of Indian Airlines and Air India was transferred to and vested in
Indian Airlines Limited and Air India Limited respectively.
It is in trade
terms with:-
·
Printop
·
Modern Petro
Packaging
·
Navjyoti
Brothers
Profile
Air-India is
India's national flag carrier. Although air transport was born in India on
February 18, 1911 when Henri Piquet, flying a Humber bi-plane, carried mail
from Allahabad to Naini Junction, some six miles away, the scheduled services in
India, in the real sense, began on October 15, 1932. It was on this day that
J.R.D. Tata, the father of Civil Aviation in India and founder of Air-India,
took off from Drigh Road Airport, Karachi, in a tiny, light single-engined de
Havilland Puss Moth on his flight to Mumbai (then known as Bombay) via
Ahmedabad.
He landed with his precious load of mail on a grass strip at Juhu. At Mumbai,
Neville Vintcent, a former RAF pilot who had come to India from Britain three
years earlier on a barn-storming tour, during which he had surveyed a number of
possible air routes, took over from J.R.D.Tata and flew the Puss Moth to
Chennai (then Madras) via Bellary.
Tata Airlines
Tata Airlines, as Air-India
was then known, consisted of one Puss Moth, one Leopard Moth, one palm-thatched
shed, one whole time pilot assisted by Tata and Vintcent, one part-time
engineer, two apprentice-mechanics and unlimited optimism.
In 1933, the first full year of its operations, Tata Airlines flew 160,000
miles, carried 155 passengers and 10.71 tonnes of mail. Tata Airlines was
converted into a Public Company under the name of Air-India in August 1946.
Going Global
By the beginning of
1947, Air-India turned its attention to the international scene. Towards the
end of the year, an agreement was reached with the Government of India for the
formation of Air-India International Limited to operate international services.
At Air-India's request, the Government agreed to limit their capital
participation to 49 per cent, subject to an option to acquire, at any time, a
further two per cent from Air-India.
Air-India International, which was registered on March 8, 1948, inaugurated its
international services on June 8, 1948, with a weekly flight from Mumbai to
London via Cairo and Geneva with a Lockheed Constellation aircraft.
Nationalisation
The early '50s saw the financial condition of various airlines operating in
India deteriorate to such an extent that the Government decided to step in and
nationalise the air transport industry and accordingly two autonomous
Corporations were created on August 1, 1953.
Indian Airlines was formed with the merger of eight domestic airlines to
operate domestic services, while Air-India International was established to
operate the overseas services.
The word 'International' was dropped in 1962. Effective March 1, 1994, the
airline has been functioning as Air-India Limited.
From a total of three stations served at the time of nationalisation,
Air-India's worldwide network today covers 44 destinations by operating
services with its own aircraft and through code-shared flights.
Corporate
Information
This now familiar
lovable figure first made his appearance in Air-India way back in 1946, when
Bobby Kooka as Air-India's Commercial Director and Umesh Rao, an artist with J.
Walter Thompson Limited, Mumbai, together created the Maharajah.
The Maharajah began merely as a rich Indian potentate, symbolising graciousness
and high living. And somewhere along the line his creators gave him a
distinctive personality: his outsized moustache, the striped turban and his
aquiline nose.
What began as an attempt as a design for an inflight memo pad grew to take
Air-India's sales and promotional messages to millions of travelers across the
world. Today, this naughty diminutive Maharajah of Air-India has become a world
figure. He can be a lover boy in Paris, a sumo wrestler in Tokyo, a pavement
artist, a Red Indian, a monk. He can effortlessly flirt with the beauties of
the world. And most importantly, he can get away with it all. Simply because he
is the Maharajah!
He has completed 56 years and become the most recognisable mascot the world
over. His antics, his expressions, his puns have allowed Air-India to promote
its services with a unique panache and an unmatched sense of subtle humour. In
fact he has won numerous national and international awards for Air-India for
humour and originality in publicity.
And as with all great men, he too has had his critics. But the millions of
travelers whose lives he has touched far outnumber them. In fact, to them, the
Maharajah with his inimitable style, charm and wit is a very real person. He's
almost like a friend to every Air-India traveler. A friend who reaches out with
warmth and hospitality, even to the farthest corners of the world.
The Centaur
At Air-India, we believe that this visual image must
be simple, coherent and most importantly, it must be an honest representation
of the ideals we stand for.
After the formation of Air-India International in
1948, four Lockheed Constellations were ordered to commence international
operations. The management began casting about for a symbol that would denote
speed and simultaneously have universal appeal.
Sagittarius, the archer, is the ninth sign of the
Zodiac. The Greeks represented this constellation in the act of shooting an
arrow. As it symbolises movement and speed, the Centaur, a stylized version of
Sagittarius, was selected as Air-India's logo.
The power of the symbol is to influence and people
can never be under-estimated - for symbols have power to play upon the
emotions, memories and sensitiveness.
The Centaur is
symbolic of the airline and stands out as a distinct and sole representative of
the standards Air-India has set for itself.
Cultural Ambassador
Air-India has been
a pioneer patron of art and culture in India. Besides holding a collection of
almost 4,000 pieces of art of various reputed artists, Air-India has promoted Indian
culture abroad by sponsoring programmes of exponents of Indian classical music.
Additionally,
Air-India has provided international exposure to sportsmen in their formative
years to help them attain supremacy at the global level. Air-India has also
provided introduction to Indian cuisine abroad by flying out renowned chefs to
various parts of the world; by hosting food festivals, etc.
The national
carrier takes immense pride in having successfully played a pivotal role in
making various facets of India popular with the people of the world and acting
as the country's cultural ambassador.
AIR INDIA invites
Expression of Interest/Quotations from First Class Hotels to house their
Cockpit Crew in Amritsar Room Requirement and minimum required facilities
- 10 Rooms per day
(average) for a minimum period of two years with an exit clause.
- 24 hours
check-in/check-out facility.
- 24 hours room
service/coffee shop
- Health Club and
swimming pool facilities.
- Internal Security
- Facility for handling
crew wake-up/pick up/delay calls
- Facility to disburse
US $ allowances to cockpit crew
Interested hotels
meeting the above specifications who wish to collect the tender forms for
technical and financial bids may do so from the office of the Station Manager,
Air-India Ltd., M.K. Hotel, Dist. Shopping Centre, Ranjit Avenue, Amritsar,
with a written application. Tel. No.2508122, Fax No.2508133.
Thereafter
technical and financial bids should be submitted in two separate sealed
envelopes by 10th March, 2005 to the above-mentioned address.
Validity of the
Financial Bid offer letter should be for a minimum period of 4 months.
Hotel not qualifying as 1st Class Hotels need not apply.
The company’s fixed
assets of important values includes airframes, aero engines, power plants and
Q.E.C. units, simulator, airframe equipment-rotables, aero engine
equipment-rotables, freehold land, leasehold land, buildings, plant and
machinery, workshop equipment and instruments, ramp equipment, furniture and
fixtures, electrical fittings an dinstallations, computer systems, office
appliances and vehicles.
NEWS
Air India Express Receives Fourth and Fifth Owned aircraft into fleet
The fifth Boeing 737-800 aircraft owned by Air India Express, joins the
fleet on January 27, 2007. The first aircraft three aircraft were
inducted in December 2006 and January 2007 and fourth on January 21, 2007. This
increases the fleet size of AI Express to 12 aircraft, seven of which are on
lease.
The aircraft operate with all economy class seats on the Gulf and
Singapore routes.
As in the past, the tail designs are an innovative and novel feature of
the Air India Express aircraft.
The fifth new aircraft showcases the designs of two important Palaces of India.
Ujjayanta Palace in Agarthala, Tripura on one side and Hawa
Mahal, ‘Palace of the winds’,Jaipur, Rajasthan, on the other
side of the tail.
The fourth aircraft depicts the opulent interiors of Meherangarh
Fort Palace, Jodhpur on one side and the magnificent interiors of the Mysore
Palace, Karnataka, on the other side of the tail.
Air India Express commenced operations on April 29, 2005, and today
operates 57 weekly flights from 9 Indian cities viz. Thiruvananthapuram, Kochi,
Kozhikode, Mumbai, Delhi, Pune, Amritsar, Mangalore and Chennai. Seven foreign
stations on the network are Dubai, Abu Dhabi, Sharjah, Al Ain, Muscat, Salalah
and Singapore.
GoM approves
merger of Air-India, Indian Airlines
Feb. 21, 2007
A Group of Ministers (GoM) today endorsed a proposal to merge the two
state-owned carriers - Air-India and Indian Airlines into a new company in a
bid to take on global competition. The matter would be shortly brought before
the Cabinet and "they intend to complete the process by March 31",
Civil Aviation Minister Praful Patel said after the third meeting of the GoM
headed by External Affairs Minister Pranab Mukherjee. "They wish to make
it very clear that the merged entity will have a PSU character and there will
be no dilution," Civil Aviation Secretary Ashok Chawla said. The merger process
would be completed within two to three months after the Cabinet approval, Patel
said, adding a new company would be formed by merging both the airlines. On
completion of technicalities of the merger, their integration would take place
in a phased manner spread over one to two years, converting the merged entity
into a mega airline.
|
Name of the company |
Air India Limited |
|
Presented By |
HDFC
Bank Limited & Air India Limited |
|
1) Date and description of instrument creating the change |
Dated : 19.03.2003 Letter of Hypothecation of Stocks |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 1000.000 millions |
|
3) Short particular of the property charged. If the property acquired is
subject to charge, date of the acquired of the property should be given |
Hypothecation of all stocks consisting of all kinds of tools, spare parts, appliances, finished and semi finished goods etc. whether raw or in process of manufacture and all products, goods and moveable property of any kind which now or hereafter from time to time during this security shall be brought into stored or be in or about our premises or godowns at Santacruz [E], Old Airport Complex, Mumbai except those in godown location Nos. 10 & 21 |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
1. The goods stated above shall be the continuing security for the due repayment by the borrower to the bank at any time on demand 2. The borrower shall at all times during the continuance of this security maintain the said goods of a sufficient quantity and value so as to provide the margin of security of 20% and shall forthwith as the Bank may require, hypothecate to the bank such further goods and assets approved by the bank and of sufficient value to make up the deficiency or shall reduce the amount for the time being due to the bank by cash payment so as to maintain the said margin |
|
5) Name and Address and description of the person entitled to the
charge. |
HDFC Bank Limited Worli Branch, Sandoz House, Dr. Annie Besant Road, Worli, Mumbai – 400018 |
|
6) Date and brief description
of instrument modifying the charge |
N.A. |
|
7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
N.A. |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.44 |
|
UK Pound |
1 |
Rs.85.89 |
|
Euro |
1 |
Rs.58.54 |
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 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|