MIRA INFORM REPORT

Report Date :

09.03.2007

IDENTIFICATION DETAILS

Name :	KINGFISHER AIRLINES LIMITED

Registered Office :	“UB Anchorage”, 5^th Floor, 100/1, Richmond Road, Bangalore – 560 025, Karnataka, India

Country :	India

Financials (as on) :	31.03.2005

Date of Incorporation :	26^th July, 2004

CIN No.:	U62100KA2004PTC034399

Com. Reg. No.:	08-34399

TAN No.: (Tax Deduction & Collection Account No.)	MUMK14346D / BLRK04894B

PAN No.: (Permanent Account No.)	AACCK3949H

Legal Form :	A Closely Held Public Limited Liability Company.

Line of Business :	Engaged in as Airline Operators, Promoted by UB Group.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :

Status :	New Company

Payment Behaviour :	No Experience

Litigation :	Clear

Comments :	Subject is a new company of UB Group, Chaired by Dr. Vijay Mallya, well known industrialist and member of Parliament. Trade relations are fair. No payment are available. However, the company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	“UB Anchorage”, 5^th Floor, 100/1, Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-30510600, 22272806-7/22274097
Fax No.:	91-80-22274890/22272973
E-Mail :	vcd@ubmail.com sbudhiraja@ubmail.com info@flykingfisher.com bharath.raghavan@flykingfisher.com
Website :	http://www.flykingfisher.com

Corporate Office :	Kingfisher House, Western Express Highway. Vile Parle (E) Mumbai 400057
Tel. No.:	91-22 2626 2200
Fax No.:	91-22 5502 0625

Head Office :	G 5-A, Kilfire House, Ground Floor, Dalia Industrial Estate, Near Fun Republic, Andheri New Link Road, Andheri (West), Mumbai – 400 053, Maharashra
Tel. No.:	91-22-26730216, 26720209
Fax No.:	info@flykingfisher.com

Branches :	Mumbai Airport Office S.O.C.C, Terminal 1 A , Arrival Hall, 1st Floor, Domestic Airport Santa Cruz (W), Mumbai Tel: 91-22 26262013 / 17 Delhi Office: UB Group, UB House, F 44 A, South Extension – I, New Delhi – 110049 Tel: 91-11 24617138 Fax: 91-11 2469 1845 / 2469 8007 Delhi Flight Operations Office VIII/2, Mehram Nagar, Near Airport Hotel, Opp Domestic Airport, Delhi-110037. Bangalore Airport H.A.L. Airport, Vimapura Post, Bangalore 560017. Tel : 080-51527872 Fax : 080-51527874 Goa Airport Dabolim Airport, Goa 403 801 Mob: 09823208182

DIRECTORS

Name :	Dr. Vijay Mallya
Designation :	Director
Address :	3, Vittal Mallya Road, Bangalore-560001, Karnataka, India
Date of Birth/Age :	18/12/1955
Date of Appointment :	26/07/2004

Name :	Mr. Rup Narayan Pillai (Aka : Mr. R. N. Pillai)
Designation :	Director in Charge
Address :	No 17 first Block, First Main, Koramangala, Bangalore-560034, Karnataka, India
Date of Birth/Age :	14/09/1950
Date of Appointment :	26/07/2004

Name :	Mr. Subhash Raghunath Gupthe
Designation :	Director
Address :	Sarojini 4^th Floor, 4 Golflinks Khar, Mumbai, Maharashtra-400052, India
Date of Birth/Age :	06/03/1939
Date of Appointment :	26/07/2004

Name :	Mr. A. K. Ravi Nedungadi
Designation :	Director
Address :	No 103, Dephi III, Prestige Acropolis, Hosur Road, Bangalore, Karnataka-560020, India
Date of Birth/Age :	26/10/1957
Date of Appointment :	26/07/2004

Name :	Mr. Vispi Damania
Designation :	Chief Executive

Name :	Mr. Alex Wilcox
Designation :	Chief Operating Officer

Name :	Mr V K Rekhi
Designation :	Director
Address :	Camelot Apartment 203, Kensington Road, Ulsoor, Bangalore- 560042, Karnataka, India
Date of Birth/Age :	14/09/1945
Date of Appointment :	21/01/2005

Name :	Mr. Mahesh Nedungadi
Designation :	Director
Address :	No 486, 10^th Cross 27^th Main, Sector 1, HSR Layout, Bangalore- 560034, Karnataka, India
Date of Birth/Age :	06/04/1960
Date of Appointment :	28/07/2004

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
UB General Investments Limited	29999994
UB General Investments Limited and PA Murali	1
UB General Investments Limited and Mr. S Ramanujam	1
UB General Investments Limited and Mr. Rupnarayaa Pillai	1
UB General Investments Limited and Mr. S. N. Prasad	1
UB General Investments Limited and Mr. V. S. Venkataraman	1
UB General Investments Limited and Mr. A Harish Bhat	1
Mr. S Ramanujam	1
Mr. A Harish Bhat	1

BUSINESS DETAILS

Line of Business :	Engaged in as Airline Operators, promoted by UB Group.

Imports from :	USA, France and Europe.

GENERAL INFORMATION

Suppliers :

Airbus Industrie, France
GE Capital Aviation Services, USA
Indian Airlines (For Outsourcing)
Snecma (Engineers)

Bankers :

UTI Bank Limited, Nariman point, Mumbai-400021

Facilities :

Secured Loan	(Rs in millions)
ILFS (Secured on pledge of shares held by UB Group and personal guarantee of chairmen)	504.244


Banking Relations :	-

Auditors :	Mr. S. Vishnu Murthy Chartered Accountant

Associates/Subsidiaries :	UB Group of Companies

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 10/- Each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 10/- Each	Rs. 300.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		300.000
2] Share Application Money		1249.500
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(91.435)
NETWORTH		1458.065
LOAN FUNDS
1] Secured Loans		504.244
2] Unsecured Loans		0.000
TOTAL BORROWING		504.244
DEFERRED TAX LIABILITIES

TOTAL		1962.309

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		13.298
Advance for capital assets		1570.596
Amount pending capitalization		31.413

INVESTMENT
DEFERREX TAX ASSETS		51.382
		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	103.829
	Other Current Assets	6.238
	Loans & Advances	202.033
Total Current Assets		312.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	16.480
	Provisions
Total Current Liabilities		16.480
Net Current Assets		295.620

MISCELLANEOUS EXPENSES		0.000

TOTAL		1962.309

PROFIT & LOSS ACCOUNT

PARTICULARS			31.03.2005
Sales Turnover [including other income]			5.207

Profit/(Loss) Before Tax			(142.816)
Provision for Taxation			51.381
Profit/(Loss) After Tax			(91.435)

Total Expenditure			147.046

KEY RATIOS

PARTICULARS		31.03.2005
PAT / Total Income	(%)	(1756.00)

Net Profit Margin (PBT/Sales)	(%)	(2742.77)

Return on Total Assets (PBT/Total Assets}	(%)	(43.89)

Return on Investment (ROI) (PBT/Networth)		(0.10)

Debt Equity Ratio (Total Liability/Networth)		0.36

Current Ratio (Current Asset/Current Liability)		18.94

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets :

Ø Office equipments

Ø Computer and accessories

Ø Vehicles

Ø Furniture and Fixture

Financial Result :

During the year under the company commenced business as a commercial airline. The company has made a loss of Rs. 142.816 millions during the period.

Operations :

Kingfisher Airlines is a “Value” carrier promoted by the UB Group. It will leverage on the brand strength of “Kingfisher” by bringing to the skies the same “fun and good times” which are the attributes of the brand.

The company has signed an agreement with Airbus industries to purchase 10 brand new A/320 and 3 A /319 aircrafts. It also has an option to purchase 20 further A/320 aircrafts at the same attractive price.

In order to accelerate the roll-out, the company has also taken 4 brand new A-320 on dry operating lease from Debis Air Finance.

Holding Company :

Consequent to the allotment of shares to UB General Investment Limited, which in turn is a wholly owned subsidiary of United Breweries (Holding) Limited, the company is an unlimited subsidiary of United Breweries (Holding) limited, the holding company of the UB Group.

Contact

To Fly : 1600 1800 101 (Toll Free)
      or : +91 124 284 4700
      or : Mumbai on
             +91 22 6649 9393
      or : Bangalore
             +91 80 4197 9797

As per website :

Vision

“The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.”

Values

Safety
This is their overriding value. In their line of business, there is no compromise.

Service
They are all in the hospitality business; they must always seek to serve their guests and gain their trust, goodwill and loyalty.

Happiness
They seek to build an organisation with people who choose to be happy, and will endeavour to influence their guests and co-workers to be happy too.

Teamwork
They will succeed or fail as a team. Each one of us must respect their colleagues regardless of their rank, and they must work together to ensure their mutual success.

Accountability
Each one of us will be held accountable for the successful execution of their duties, commitments and obligations, and they will strive to lead by example.

Press Room

Kingfisher Airlines soars higher- Introduces Kingfisher First

Business Travellers can now experience First Class Service between Mumbai, Delhi, Goa and Kochi at Business Class Fares

April 15 2006 - The finest way to fly in the Indian skies is now here! Kingfisher Airlines, India's fastest growing airline, introduces its premium service - Kingfisher First, which will redefine business class flying in India.

On offer are, the plushest Sleeperette seats in the Indian skies with a 48 inch pitch, 125 degree recline, adjustable headrests and fully extendable footrests. In-flight entertainment has been taken to a new level with the latest Audio and Video on Demand system that is available on Kingfisher First. Air Travellers can now watch the biggest show in the Indian skies with the latest Hollywood and Hindi blockbusters, music videos & concerts, engaging video games and lots more. All available on the extra-wide personalized video screens with the comfort of noise-cancelling stereo headphones.

Kingfisher First is the ideal way to fly for the discerning, business class traveler who appreciates the fine things in life. He is demanding and wants to be pampered and at the same time being a trendy socialite is exposed to international cultures, customs and the good life. Last but not the least, this profile of air traveler has exposure to frequent international travel and clearly understands the superiority of a First Class experience over a Business Class experience.

"I'm very proud to introduce Kingfisher Airlines' latest offering, Kingfisher First to the world. I have personally taken care of each and every detail and am very happy that the discerning Indian business travelers will now have an option that they truly deserve. Kingfisher First is truly a first class experience and is all set to redefine business class flying in the country. Our service remains unmatched and now with the launch of Kingfisher First they have raised the bar further. I invite all business travelers to fly Kingfisher First and experience the difference," urged Dr. Vijay Mallya, Chairman and Chief Executive Officer, Kingfisher Airlines Limited.

In Kingfisher First, each and every service has been designed to perfection. Culinary works of art with the exclusive three course menu complete with a Kingfisher sparkling welcome drink, signature dessert and freshly brewed coffee on board, world-class service experience at the hands of a superbly trained and hand-picked cabin crew. Other services available onboard are an international-class welcome pack, spectacle cleaning services, stain removers, laptop and mobile phone chargers in each seat and lots more.

All in all, an experience that's bound to leave the discerning business class traveler charmed and wanting to come back for more.

The Kingfisher First experience is currently available between Mumbai, Delhi, Goa and Kochi and will be extended to other cities shortly.

About Kingfisher Airlines

Kingfisher Airlines is India's first and only private airline to receive the prestigious, 'Best New Airline of the Year' award in the Asia-Pacific and Middle East region from Centre for Asia Pacific Aviation (CAPA). Kingfisher Airlines has also been voted as the 3rd Most Successful Brand Launch of the Year 2005, in the annual Brand Derby Survey conducted by India's leading business daily-Business Standard. In another Survey conducted by agencyfaqs.com and Brand Reporter, Kingfisher was voted as the 7th Buzziest Brand of 2005 amongst 2000 leading national and international brands. More recently, Kingfisher Airlines has bagged the "Service Excellence for a New Airline" award from Skytrax, a UK based specialist global air transport advisor. The latest addition to the list of laurels is the "Best New Domestic Airline for Excellent Services and Cuisine" award from Pacific Area Travel Writers Association (PATWA), the biggest travel writers' organization, representing members from 70 countries across the globe, that conducts independent annual surveys across various industries related with Travel and Tourism in order to select the best in each category.

Kingfisher Airlines commenced operations on May 9th, 2005 with a brand new fleet of aircraft. Kingfisher Airlines offers Full Service at True Value and promises an unparalleled experience to the Indian air traveler. On offer are extra-wide seats and spacious leg room, delicious gourmet meals, international-class cabin crew and a whole host of comforts and delights. Kingfisher Airlines also facilitates doorstep delivery of tickets on guest request. Fly the Good Times with Kingfisher Airlines. For more information on Kingfisher Airlines log on to www.flykingfisher.com

Archives

Ø Kingfisher Airlines ready to bring home its first ATR72-500 Aircraft

Ø Kingfisher Airlines wins yet another international award at ITB Berlin, the world's largest travel industry platform

Ø Kingfisher Airlines wins the 2006 Skytrax Award for "Service Excellence for a New Airline"

Ø Kingfisher Airlines amongst Successful brands of the Year 2005

Ø Direct Daily flights between Mumbai and Mangalore

Ø Best New Airline of the Year 2005- Kingfisher Airlines Announces New Routes

Ø Best New Airline of the Year and India's 3rd Most Successful Brand launched in 2005, announces "Scent of Good Times" Offer

Ø Kingfisher Airlines wins the CAPA award for “Best New Airline Of The Year” in Asia Pacific & Middle East

Ø Kingfisher Airlines orders 20 new ATR72-500 Aircraft worth US$350 Million

Ø Kingfisher Airlines orders 30 new Airbus A320 family jets worth US$1.9 Billion

Ø Kingfisher Airlines strengthens Executive Management team

Ø Kingfisher Airlines purchases three new Airbus A319s to be based at Bangalore

Ø Kingfisher Airlines takes delivery of its first brand new Airbus A320 aircraft

Ø Kingfisher Airlines Limited appoints an Advisory Board

Name of the company

Kingfisher Airlines Limited

Presented By

UTI Bank Limited, Nariman point, Mumbai-400021

1) Date and description of instrument creating the change

Composite Hypothecation Deed dated 30.08.2005

2) Amount secured by the charge/amount owing on the securities of charge

	(Rs in millions)
Fund Based and Non fund Based working capital limit	500.000
Term Loan	500.000
Total	1000.000

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All present and future movable goods and assets viz, stocks of raw materials, work in progress, semi-finished goods and finished goods such as fuel , stores, spares etc. packing materials, consumable stores and spares etc. whatever situate and or in transit or held by any party to the order and disposition of the company.

All the present and future book-debts, outstanding monies, receivable, claims, bills, contracts, engagements and securities which are due and owing in the course of its business more particularly described in schedule II to the composite hypothecation deed.

For term loan hypothecation by way of first exclusive charge on the existing movable assets to be acquired form the term loan. Plant and machinery etc. fixture, fittings other installations, canes, furniture, computers and other accessories, vehicles together with spares, tools and accessories and all other articles lying on the premises at Mumbai, Bangalore, Delhi, Goa and elsewhere or in the custody of any person or in acquired on hire purchase lease,. More particularly described in schedule II to the composite hypothecation deed.

4) Gist of the terms and conditions and extent and operation of the charge.

The aforesaid assets are given as securities to secure the following limits along with rate of interest land margin as under

Nature of facility

Limit

Rate of interest

Margin

CC/WCDL/

Bills disc/ LLC/FLC/

BG (Domestic/ Foreign) (Fully inter changeable)

Rs. 500.000 millions

CC/WCDL PLR 2.00 % ie. 10.00 % payable monthly

Bill discounting PLR 2.50 % i.e. 9.50 % p.a. PLR 2.50 % i.e. 9.50 % p.a. payable monthly

CC inventory 20 % Receivable 25 % LC 10 % (100 % in case of disputed liability)

Term Loan

Rs. 500.000 millions

Other term and conditions as pr sanction letter.

5) Name and Address and description of the person entitled to the charge.

UTI bank Limited

Nariman Point Branch

Atlanta, group Floor

Nariman Point, Mumbai- 400021

6) Date and brief description of instrument modifying the charge

Not Available

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Available

Name of the company

Kingfisher Airlines Limited

Presented By

Mr. R N Pillan , Director

1) Date and description of instrument creating the change

Deed of Hypothecation dated 28^th December, 2005

Agreement No LOQ 258 dated 28^th December, 2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 22.172 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

3 Nos 2^nd Hand Tata 1610 Resls E2 Tarmac Coach.

5 Nos Tata 1610 Reels E2, Tarmac Coach.

4) Gist of the terms and conditions and extent and operation of the charge.

Amount republic in 35 nos installment of Rs. 712380/- each p.m. interest charge as per the rate at bank as agreed.

5) Name and Address and description of the person entitled to the charge.

SREI Infrastructure Finance Limited

Vishwakarma

86/C, Topisa Road (South)

Kolkata- 700046

6) Date and brief description of instrument modifying the charge

Not Available

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Available

Name of the company

Kingfisher Airlines Limited

Presented By

Mr. R N Pillan , Director

1) Date and description of instrument creating the change

Description of instruments dated 22^nd May 2005

Deed of Hypothecation dated 22^nd May 2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 50.000 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

Exclusive first charge on fixed movable assets of the Borrower comprising of equipments in the nature of Group Cooling Units, ground Power Units, Jet Starter units and conventional push back, used in the normal course of business of the company more fully described in the enclosed annexure, in or about of the borrowers airport situate at Mumbai, Delhi, and Bangalore or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery howsoever or where over in the possession of the borrower and either by way of substitution or addition.,

4) Gist of the terms and conditions and extent and operation of the charge.

Interest Rate: 10 % per annum on diminishing balance

Repayment : 60 monthly commencing from 8^th July 2005, the each installment amount is Rs. 1.062 millions

5) Name and Address and description of the person entitled to the charge.

SREI Infrastructure Finance Limited

Vishwakarma

86/C, Topisa Road (South)

Kolkata- 700046

6) Date and brief description of instrument modifying the charge

Not Available

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Available

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.44
UK Pound	1	Rs.85.89
Euro	1	Rs.58.54

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions