MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	SPICEJET LIMITED
Registered Office :	Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai – 600028, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.02.1984
Com. Reg. No.:	18-082330
Capital Investment / Paid-up Capital :	Rs.4053.780 Millions
CIN No.: [Company Identification No.]	L51909TN1984PLC082330
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	To provide domestic airlines and passenger and cargo services.
No. of Employees :	2349 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 12800000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. There appears some accumulated losses recorded by the company. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai – 600028, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	ashok.maheshwary@spicejet.com
Website :	www.spicejet.com
Corporate Office :	319, Udyog Vihar, Phase – IV, Gurgaon – 122016, Haryana, India
Tel. No.:	91-124-3913939
Fax No.:	91-124-3913844

DIRECTORS

As on 31.03.2011

Name :	Kalanithi Maran
Designation :	Chairman
Name :	Kavery Kalanithi
Designation :	Director
Name :	Nicholas Martin Paul
Designation :	Director
Name :	M. K. Harinarayanan
Designation :	Director
Name :	Mr. J. Ravindran
Designation :	Director
Name :	Mr. S. Sridharan
Designation :	Director (upto 12.08.2011)

KEY EXECUTIVES

Name :	A. K. Maheshwary
Designation :	Vice President (Legal) and Company Secretary
MANAGEMENT COMMITTEE :
Name :	Mr. Neil Raymond Mills
Designation :	Chief Executive Officer
Name :	S. Natrajhen
Designation :	Chief Operating Officer
Name :	Mr. R. Neelakantan
Designation :	Chief Financial Officer
Name :	Mr. Sridharan Samyukth
Designation :	Chief Commercial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	10300	--
Bodies Corporate	156518005	38.59
Sub Total	156528305	38.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	156528305	38.60
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	57359601	14.14
Financial Institutions / Banks	500	--
Foreign Institutional Investors	25021171	6.17
Sub Total	82381272	20.31
(2) Non-Institutions
Bodies Corporate	56877247	14.02
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	55505110	13.69
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	47489118	11.71
Any Others (Specify)	6768678	1.67
Trusts	27200	0.01
Non Resident Indians	5586144	1.38
Clearing Members	1155334	0.28
Sub Total	166640153	41.09
Total Public shareholding (B)	249021425	61.40
Total (A)+(B)	405549730	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	405549730	100.00

BUSINESS DETAILS

Line of Business :

To provide domestic airlines and passenger and cargo services.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Domestic Airlines	88024000
Passenger and Cargo Services	88024000

GENERAL INFORMATION

No. of Employees :

2349 (Approximately)

Bankers :

· Allahabad Bank

· Yes Bank Limited

· ICICI Bank Limited

· HDFC Bank Limited

· City Union Bank Limited

· Citibank N.A.

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan	300.000	339.890
Interest accrued and due	2.170	1.400
Total	302.170	341.290
Notes : **Amount due within one year Rs.300.00 million (Previous year Rs.13.300 Millions)
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Demand Loan from Bank	500.000	0.000
Interest accrued and due	5.400	0.000
Inter corporate deposits from others	50.000	50.000
External commercial borrowings from others	0.000	389.460
Zero Coupon Foreign Currency Convertible Bonds (FCCB's) of face value of $100,000 each	0.000	3602.170
Total	555.400	4041.630

*Includes amounts due within one year:

Working Capital Demand Loan from Bank, including interest thereon – Rs.505.400 Millions

External commercial borrowings – Rs. Nil

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Party exercising significant influence :	· Kal Airways Private Limited and Mr. Kalanithi Maran from November 11, 2010 · Royal Holdings Service Limited, Neveda, USA (upto November 10, 2010)
Enterprises over which parties above or their relatives have control/significant influence ('Affiliates') :	· Sun TV Network Limited (from November 11, 2010) · Digital Radio (Delhi) Broadcasting Limited (from November 11, 2010
Subsidiary company :	· Spice Enterprises Private Limited (ceased to be a related party on September 11, 2009)

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital : Rs.5650.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.4414.497 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.10/- each	Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
405378065	Equity Shares	Rs.10/- each	Rs.4053.780 Millions

Notes:

*Includes

a) 147,215,040 equity shares of Rs.10/- each issued on conversion of Foreign Currency Convertible Bonds ('FCCBs') during the year.

b) 15,360,715 equity shares of Rs.10/- each issued on conversion of share warrants during the year.

c) 919,600 equity shares of Rs.10/- each issued under the Company's Employee Stock Option Scheme 2007

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		4053.780	2418.830	2410.200
2] Share Warrants		0.000	60.610	60.610
3] Stock options outstanding		52.670	102.820	0.000
4] Reserves & Surplus		6316.800	2200.770	2072.940
5] (Accumulated Losses)		(7212.200)	(8223.750)	(8838.240)
NETWORTH		3211.050	(3440.720)	(4294.490)
LOAN FUNDS
1] Secured Loans		302.170	341.290	332.700
2] Unsecured Loans		555.400	4041.630	4555.390
TOTAL BORROWING		857.570	4382.920	4888.090
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		0.000	18.950	0.000
TOTAL		4068.620	961.150	593.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		867.480	670.010	675.660
Capital work-in-progress (including capital advances)		6114.300	3249.140	1852.760
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	203.500	147.210	124.720
	Sundry Debtors	171.820	189.600	123.930
	Cash & Bank Balances	1922.310	4506.950	3079.960
	Other Current Assets	0.000	0.000	108.000
	Loans & Advances	1816.650	1094.950	1542.870
Total Current Assets		4114.280	5938.710	4979.480
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2535.770	1548.470	1563.650
	Other Current Liabilities	4408.220	5873.470	4093.580
	Provisions	83.450	1474.770	1257.070
Total Current Liabilities		7027.440	8896.710	6914.300
Net Current Assets		(2913.160)	(2958.000)	(1934.820)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4068.620	961.150	593.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating Revenue	28795.080	21810.780	16894.480
		Other Income	810.960	610.130	1240.900
		TOTAL (A)	29606.040	22420.910	18135.380
Less	EXPENSES
		Operating Expenses	22535.940	16939.560	17034.310
		Employees remuneration and benefits	2406.150	1814.110	1548.210
		Selling Expenses	2237.190	1921.520	1095.530
		General and Administration Expenses	943.930	821.560	1408.000
		Loss on Settlement of Litigations	0.000	0.000	187.820
		TOTAL (B)	28123.210	21496.750	21273.870
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1482.830	924.160	(3138.490)
Less	FINANCIAL EXPENSES (D)		112.040	113.820	160.220
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1370.790	810.340	(3298.710)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		89.100	76.430	(72.540)
	PROFIT BEFORE TAX AND PRIOR PERIOD ITEMS (E-F) (G)		1281.690	733.910	(3371.250)
Less	TAX (H)		(247.370)	(63.660)	(33.190)
	PROFIT AFTER TAX AND BEFORE PRIOR PERIOD ITEMS (G-H) (I)		1034.320	670.250	(3404.440)
	PRIOR PERIOD ITEMS		(22.770)	(55.760)	121.230
	NET PROFIT		1011.550	614.490	(3525.670)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(8223.750)	(8838.240)	(5074.480)
	FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		0.000	0.000	(238.090)
	BALANCE CARRIED TO THE B/S		(7212.200)	(8223.750)	(8838.240)
	EARNINGS IN FOREIGN CURRENCY
		Passenger revenue credit cards	0.000	455.810	444.080
		Lease rentals	0.000	0.000	77.170
		Reimbursement/ credit from supplies/others	0.000	105.960	311.300
		Profit on sale and lease back	0.000	34.670	617.860
	TOTAL EARNINGS		0.000	596.440	1450.410
	IMPORTS
		Capital Goods	0.000	0.000	8.080
		Components and Spares parts	0.000	284.200	178.140
		Rotables/ galley equipments/ tools	0.000	5.830	119.330
	TOTAL IMPORTS		0.000	290.030	305.550
	Earnings Per Share (Rs.)
	- Basic		2.80	2.55	(14.64)
	- Diluted		2.49	1.56	(14.64)

QUARTERLY RESULTS

(Rs. In Millions)

PARTICULARS	30.06.2011	30.09.2011
	1^st Quarter	2^nd Quarter
Net Sales	9456.410	7664.930
Total Expenditure	10124.200	9983.020
PBIDT (Excl OI)	(667.790)	(2318.090)
Other Income	33.430	43.060
Operating Profit	(634.360)	(2275.030)
Interest	59.910	88.660
Exceptional Items	0.000	0.000
PBDT	(694.270)	(2363.690)
Depreciation	25.370	36.980
Profit Before Tax	(719.640)	(2400.670)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(719.640)	(2400.670)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(719.640)	(2400.670)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.41	2.74	19.44
Net Profit Margin (PBT/Sales)	(%)	4.45	3.36	(19.95)
Return on Total Assets (PBT/Total Assets}	(%)	25.72	11.10	(59.61)
Return on Investment (ROI) (PBT/Networth)		0.39	0.21	(0.78)
Debt Equity Ratio (Total Liability/Networth)		2.45	3.86	2.75
Current Ratio (Current Asset/Current Liability)		0.58	0.66	0.72

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

Subject ('SpiceJet' or the 'Company') was incorporated on February 9, 1984 as a limited company under the Companies Act, 1956 and is listed on the Bombay Stock Exchange Limited ('BSE'). The Company is engaged in the business of providing air transport services for the carriage of passengers. The Company is a low cost carrier ('LCC') operating under the brand name of 'SpiceJet' in India since May 23, 2005. The Company currently operates a fleet of 27 aircrafts across various routes in India as at March 31, 2011. SpiceJet has also obtained the permission of the Directorate General of Civil Aviation (DGCA) to operate on selected routes outside India and has commenced international operations from October 2010.

During the year, pursuant to an Open Offer made by KAL Airways Private Limited and Mr. Kalanithi Maran (collectively referred to as the 'Acquirers'), the Acquirers have acquired, in aggregate, 156,528,305 equity shares of the Company constituting 38.66% of the then paid-up capital of the Company, including 31,077,500 equity shares acquired from Royal Holdings Services Limited (the 'Erstwhile Promoter'). Consequently, the Acquirers have become the largest shareholders in the Company and the Promoters of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

Global and Indian Economy

The economy grew at 8.5% in 2010-11 buoyed by a 6.6% growth in the agricultural output. However, the inflation challenge that India has been facing over the last 12-18 months continues to be an area of concern. While food inflation trended down from last year's highs, rising crude prices and a more generalized inflation pose threats to the government's plan of achieving about 9 percent growth in the next financial year.

The Deloitte Global Economic Outlook Q2 2011 report notes - After slowing to a 20-month low in December 2010, industrial production grew 3.7 percent in January 2011. The production of capital goods weighed heavily on the sluggish performance as the sector logged an 18.6% decline during the month. Interestingly, consumer durables and consumer non-durables recorded growth rates of 23.3% and 6.9% respectively, indicating that domestic demand is still quite robust and that the fiscal stimulus program has indeed succeeded in encouraging spending. On the face of it, the positive movement in industries bodes well for economic growth. However, growth despite aggressive interest rate hikes by monetary authorities suggests that consumer demand is still very strong and could very well fuel demand-side inflation.

Most analysts have tempered India's growth forecast for the new fiscal from the Government's target of 9% to the 8.3-8.5% range. But, this growth, though moderated from earlier expectations, is still quite a robust one from a global view-point.

Indian Aviation Industry and Domestic Market Trends

Domestic passenger traffic grew by 18.8% during FY 2010-11 over the previous year while cycling a heady 16.5% growth during the previous fiscal clearly indicating robustness in the demand side of the business. The supply-side was however a story of 2 contrasting periods – the first half of the fiscal saw a supply-side growth of only 8% while the second half saw a 14% growth in capacity which was concentrated towards the latter part of the year.

Domestic passenger traffic crossed the 50 Million mark for the first time in India's aviation history ending the year at 54.5 Million passengers. And, needless to say, this growth was driven largely by the low-cost carriers including SpiceJet (28%) growing ahead of the domestic market 18.8% rate. As a result of this, the share of low-cost carriers in the domestic traffic continued to increase during FY 2010-11 and by end of the financial year nearly 45% of all domestic traffic was carried by the low-cost carriers. And if the low-fare services of the full-service carriers is included in this mix the share of the low-fare products reached 70% during the fiscal.

It is significant to note that despite such robust growth in the domestic aviation market, the share of Full Service Carriers continued to decline dropping to 31% of the total domestic travel from 37% during the previous fiscal. Clearly, Low Cost Carriers is the preferred option for passengers on domestic travel.

With the robust demand growth, there was a perceptible slow-down in the capacity conversion of Premium Service aircraft to Low Fare service by two large competitors. Despite this, the Low Fare product maintained a 24% share of the market and combined with the growing share of the traffic on Low Cost Carriers nearly accounted for 70% of the domestic traffic.

SpiceJet increased its market share during FY 2010-11 to 13.4% from 12.4% in the previous financial year and touched a historic high of 14.3% during January 2011.

Continuing the trend from the previous fiscal, the only market-share gainers in the domestic market were the Low Cost Airlines including SpiceJet gained 1.0 point to reach an annual market share of 13.4%.

Domestic Demand-Supply Scenario

During FY2009-10, the industry had seen the demand supply gap narrowing with capacity growing only at 4% while domestic demand grew by 16%. This trend continued during the first half of FY2010-11 too with a capacity growth of 8% while the demand grew by 17%. However, over the second half of the fiscal this trend started showing signs of reversal. During the Oct-Dec 2010 quarter the industry witnessed an 11% capacity growth and a 19% demand growth and during the Jan-Mar quarter the capacity growth was nearly 16% while the demand growth was 21%.

Recognitions and Awards

At SpiceJet, they continue to listen to the feedback from their customers and based on this they continued to refine their on-board menu and introduced a wider range of Hot Indian Meals toward the end of FY2010-11.

During the last two years SpiceJet received the following awards:

· India's best low-fare airline in a survey conducted by MaRs on behalf of Hindustan Times (December 2009)

· Award for Best Website at 'World Low Cost Airlines Asia Pacific Conference' (January 2010, Singapore)

· Outlook Traveler's Best Low Cost Airline (Feb 2008 & Feb 2010)

· Smart Travel Asia's Top 5 Best Budget Airlines in Asia (Aug 2010) and in Top 10 list for 2 consecutive years (Aug 2008 & Sept 2009, Hong Kong)

· World Travel Market Award for multi-channel approach in distribution (November 2009, London)

· National Award (ICWAI) for excellence in Cost Management (March 2009)

· CIO 100 Award for IT efforts for customer satisfaction and business growth (2007, 2008 & 2009)

FUTURE OUTLOOK FOR SPICEJET

SpiceJet is the only listed airline in India to declare two consecutive years of an annual profit. In its six years of operations, the company's practices have set benchmarks for best cost management, aircraft utilization and brand image. It is the only airline that continues to invest heavily behind the brand with aggressive marketing strategies.

The industry outlook for FY 2011-12, is a little challenging. The second half of 2010-11 clearly demonstrated a surge in capacity induction and they expect that industry traffic growth will lag behind capacity growth for FY12 by atleast 4-5% points. This would mean that the industry would experience lower seat factors going forward. Also, Q4 FY11 clearly demonstrated the desperation by some of their larger competitors to irrationally drop fares in an effort to boost their seat-factors. They can clearly expect that yields during FY12 will remain under severe pressure due to these factors.

The rise in Crude Oil prices continued unabated during FY11 with 12 consecutive fortnightly increases in fuel price from October 2010 onwards. They expect that fuel prices will stabilize at these elevated levels especially with the current level of political uncertainty in the Middle-East and North African oil-producing nations. This will result in large fuel-cost driven cost pressures during FY 2012.

SpiceJet's foray into newer Tier-II and Tier-III markets, on the back of the Q-400 NextGen Turbo-prop aircraft during Q2 of FY12 will open up a completely new market for the company. The company has announced its plans for selecting Hyderabad as the first base for these aircraft and has planned to base the first 5 aircraft from the Rajiv Gandhi International Airport in Shamshabad. SpiceJet plans to operate a point-to-point service originating from Hyderabad and connecting over 10 cities in the south and central part of the country in the initial phase of launch.

The Q-400 routes will open up short-haul routes that are currently only served by some of the Full Service competitors and is strategically a very different direction than some of SpiceJet's direct low-cost competitors. The company is very optimistic that this strategic differentiation will add immensely to the share-holder value of the business.

With the planned induction of 5 new B-737 aircraft in 2011-12 SpiceJet will continue to grow their fleet of 28 B-737 aircraft as on March 31, 2011 while taking delivery of 11 new Q-400 Next Gen Turbo-prop aircraft from Bombardier Inc.

With the Boeing fleet, the company will continue to augment its current domestic network and increase frequency on high potential routes. Having seen reasonable success with the initial foray into Nepal and Sri Lanka, SpiceJet is looking to add more international destinations in the SAARC, Middle-East, CIS and South-East Asian regions and looks forward to building a larger South Asian network.

With a differentiated strategic ability with the induction of the Q-400 turbo-prop aircraft and the added international expansion SpiceJet believes that their business model will be robust in the long-term to add great value to their employees, partners, customers and share-holders.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2011

(Rs. In Millions)

	Quarter Ended 30.06.2011 (UnAudited)
Net Sales / Income from Operations	9328.470
Other Operating Income	127.940
Total Income	9456.410
Total Expenditure
a) Operating Expenses
- Aircraft Fuel	5051.720
- Aircraft Lease Rentals	1319.380
- Airport Charges	563.100
- Aircraft Maintenance	994.930
- Other Operating Costs	362.680
b) Staff Cost	769.310
c) Other Expenditure	1063.080
Depreciation	25.370
Profit/ (Loss) from operations before other income and interest	(693.160)
Other Income	33.430
Profit/ (Loss) before Interest	(659.730)
Interest	59.910
Prior Period Adjustment – (Gain0/ Loss	0.000
Profit/ (Loss) before Tax	(719.640)
Provision for Taxation
- Fringe Benefits Tax	0.000
- Income Tax	0.000
Net Profit/ (Loss) from Ordinary Activities	(719.640)
Extraordinary Items – (Gain)/ Loss	0.000
Net Profit/ (Loss)	(719.640)
Paid-up Equity Capital (Number of shares) (Face value Rs,10/- per Equity Shares)	405378065
Reserves excluding Revaluation Reserves
Debit Balance Profit and Loss A/c
-Basic EPS – In Rs.	(1.78)
-Diluted EPS – In Rs.	(1.78)
Total Public Shareholding a defined under clause 40A of the Listing Agreement
-Number of Shares	248849760
-Percentage of Shareholding	61.39%
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	90967308
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	58.12%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	22.44%
b) Non Encumbered
- Number of Shares	65560997
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	41.88%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	16.17%

Notes :

1 The above unaudited financial results have been reviewed by the Audit Committee and approved by the Hoard of Directors at their meeting held on August 12, 201) and have been subjected to a limited review by the auditors of the Company.

2 Accounting Standard (AS) 17 on ‘Segment Reporting’ requires the Company to disclose certain information about operating segments. The Company is managed as a single operating unit that provides air transportation only and has no other segment operation.

3 The unaccrued interest on inter corporate deposit of Rs.50.000 Millions under litigation at Bombay High Court since November 30. 2001, amounts to Rs.73.710 Millions The auditors have qualified their limited reviews report for the above matter.

Had the Company accrued for the outstanding interest as described above, the net loss reported for the quarter would have been higher by Rs.73.710 Millions and the accumulated loss as at June 30, 2011 would have been higher by the same amount. The Company’s management believes that pending finality of the suit filed against the Company in the Bombay High Court, no Interest needs to be accrued or the deposit at this point in time on account of its defence in the court proceedings.

4 During the previous year, KM. Airways Private Limited and Mr. Kalanithi Maran (collectively referred to as the Acquirers”) have acquired, in aggregate, l5i,528,305 equity shares of the Company, including 31,077,500 equity shares acquired from Royal Holdings Services limited (the “Erstwhile Promoter”). On account of the above acquisition, the Acquirers have become Promoters of the Company. Consequently, the details of promoters and promoter group shareholding disclosed for the quarter ended June 30. 2010 above represent the shareholding of the Erstwhile Promoter of the Company.

5 Previous periods/years’ figures have been regrouped / reclassified wherever considered necessary to conform to current promoter’s classification.

6 Details of number of investor complaint for the quarter ended June 30, 2011 Beginning. Nil; Received -57: Disposed off- 56; Pending. 1.

Contingent liabilities (As on 31.03.2011)

Claims against the Company not acknowledged as debts

· Demand raised under the provisions of. Employees' State Insurance Act, 1948 for the period November 1996 to September 1997 inclusive of interest and penalty. (The Company has obtained stay against recovery of said demand from the Hon'ble High Court of Delhi) – Rs. Nil

· Liability arising out of legal cases filed against the Company in various Courts/ Consumer Redressal Forums, Consumer Courts, disputed by the Company – Rs.22.990 Millions

· Liability arising out of Arbitration proceedings on account of cancellation of leased premises – Rs.33.32

· Liability towards labour cases filed against the Company in various Courts, disputed by the Company – Rs.0.480 Millions

· Liability towards Penalty levied by customs department on late payments which is disputed and is pending in the Hon'ble High Court of Delhi – Rs.82.690 Millions

· Liability towards additional claim received from a vendor who was already covered in the settlement scheme approved by the Hon'ble High Court of Delhi – Rs.17.500 Millions

· Unaccrued interest – Rs.74.710 Millions

FIXED ASSETS

· Plant and Machinery

· Rotable and Tools

· Office equipment

· Computers

· Furniture and Fixture

· Motor Vehicles

· Capital expenditure on leased property

· Software

BUSINESS DESCRIPTION

Subject is an India-based airline company. SpiceJet Cargo, a division of SpiceJet airlines, offers safe, on-time and efficient air freight transportation across India backed by SpiceJet's infrastructure and professional expertise. The Company operates 202 flights daily to 21 Indian cities through Agartala, Ahmedabad, Bangalore, Bagdogra, Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Madurai, Mumbai, Nagpur, Pune, Srinagar, Varanasi and Visakhapatnam and two international destinations, Kathmandu and Colombo. Its international airlines include Colombo and Kathmandu. The Company offers products, such as domestic travinsure, privilege pass program and SBI SpiceJet Card. Spice Enterprises Private Limited is a subsidiary of the Company. During the fiscal year ended March 31, 2011, the Company added two domestic stations to its network which are Agartala and Madurai. For the nine months ended 31 December 2010, subject revenues increased 33% to RS22.02B. Net income totaled RS1.6B, up from RS340M. Revenue reflects an increase in income from operations and higher other operating income. Net income reflects a decrease in interest expenses, a fall in prior period adjustment and a rise in gross profit of the company. Subject is Indian based company listed in BSE.

BOARD OF DIRECTORS

Mr. Kalanithi Maran (Non-Executive Chairman of the Board)

Mr. Kalanithi Maran is Non-Executive Chairman of the Board of subject. He holds a Bachelor of Commerce from the University of Madras, Chennai and MBA from Scranton University, Pennsylvania, USA. He was awarded the "Entrepreneur of the Year 2009”by the TiE Con and awarded the Entrepreneurship Award instituted by CNBC Television and received the same from Dr. Man Mohan Singh, Hon'ble Prime Minister of India in the year 2005 and "Outstanding Businessman Award' in the Entertainment and Information Sector instituted by the International Audit Firm Ernst and Young in the year 2004. He represented India for the World Young Business Achiever Award, 1999 held in Portugal and was awarded with the coveted title of World Young Business Achiever Award 1999 for Creativity. Mr. Maran who saw a business opportunity in regional language television much before anyone else realized the true potential of this space, gave shape to his vision on April 14, 1993 with the launch of the network's flagship channel Sun TV in Tamil. What began as a single channel with three hours of programming a day has since grown to a network of 20 channels in south four Indian languages. In the process, Sun TV Network has emerged as India's television networks and one of Asia's most respected media companies.

Mrs. Kavery Kalanithi (Non-Executive Director)

Mrs. Kavery Kalanithi is Non-Executive Director of subject. She holds a Bachelor's Degree in Arts from University of Madras, Chennai. She is actively involved in the business and operations of M/s. Sun TV Network Limited including monitoring the viewer feedback with regard to the programming and deciding the content mix on various channels. She is also actively involved in philanthropic activities and is on the board of trustees of Sun Foundation, a public charitable organization, supervising day to day functioning of the Sun Foundation. Mrs. Kalanithi was appointed as director on the Board of the Company with effect from November 15, 2010. Mrs. Kalanithi is also a director on the Board of Sun TV Network Limited, Kal Radio Limited, South Asia FM Limited, Udaya FM Private Limited, Kungumam Publications Private Limited, Kungumam Nithiyagam Private Limited, Kal Investments (Madras) Private Limited, Kal Comm Private Limited, Sun Direct TV Private Limited, Kal Publications Private Limited, Kal Media Services Private Limited, Kal Airways Private Limited, Kal Holdings Private Limited, Sun Business Solutions Private Limited. She also holds committee memberships in Sun TV Network Limited (Share Transfer and Transmission Committee), South Asia FM Limited (Audit Committee) and Kal Radio Limited (Audit Committee and Remuneration Committee). Mrs. Kavery Kalanithi does not hold any shares in subject.

PRESS RELEASES

29 emergency, wrong landings since 2010

New Delhi, December 04 2011 (PTI) -- There were 16 instances of landing under emergency conditions and 13 wrong landings in the country between 2010 and now, with Kingfisher Airlines accounting for the largest number of incidents in both categories, official figures show.

The Vijay Mallya-owned carrier accounted for eight emergency landings for medical or technical reasons and seven wrong landings, defined as those which are either hard landings or involve tail scraping or nose-wheel landings.

Compared to Kingfisher, Jet Airways accounted for only one emergency landing and four wrong landings and Air India two emergency landings, the figures show.

Air India Charters which runs no-frill Air India Express as well as IndiGo had two emergency landings and one wrong landing each, while GoAir had only one emergency landing.

JetLite, SpiceJet, Alliance Air and cargo carriers Blue Dart and Deccan Cargo did not account for a single such incident, the figures showed.

Most of the emergency landings or wrong landings were made by turboprop ATR-72 aircraft which accounted for 12 incidents, while Airbus A-320s accounted for eight such incidents. Four incidents involved Boeing 737s, while A-319s and A-321s recorded two each. (More) PTI ARC ZMN DEP 12041116

EIILM Workshop on battling stress

KOLKATA: In the wake of recession and the stress that it amounts to, the first year PGPM students of Eastern Institute for Integrated Learning in Management (EIILM) organised a workshop on how to survive under the hammer? Stress vs. Recession.

Prarrthana Pal Chowdhury, corporate sales manager Eastern India, Spicejet Limited and Kunal Chakraborty, head HRD, Metro Dairy were the panelists for the discussion, and were present to elucidate on recession related stress and give the students an overview on the industry they are employed in. When recession hit in 2008 it wrecked major havoc but in India we faced it the least. As Indians we are more panic stricken and hence the hue and cry over it, said Prarrthana. Speaking about the aviation industry she talked about the advent of low cost airlines and how they started emerging successfully from the time recession struck. The low-cost operating structure of the no-frills carrier aids in its success, she said.

Prarrthana spoke of a pragmatic approach to stress. According to her, one needs to have self-confidence and accept what comes their way; recession or not, a job doesnt come with a guarantee therefore one has to be prepared for unforeseen circumstances and take it in their stride. Being stressed would only add to the problem, she avered.

Kunal Chakraborty had something different to offer. He said, Stress is not always negative. It can bring out the best in individuals and this is called enstress. He gave a short presentation on how to survive from recession related stress.

From talking about the macroeconomic parameters that are affected due to recession, the behavioral manifestation and organisational level strategies for managing stress to employee level strategies and the kind of communication that has to be there between the employer and the employee, Kunal Chakraborty answered all questions students raised before him.

Students who attended the workshop had a lot to take back with them. We encourage students to organise workshops as frequently as possible. It gives them an insight into reality and they learn better, said professor Rajeshwari Deb, programme coordinator, PGPM.

Fog delays Bangalore-Pune flight by 2 hrs

PUNE: Low-cost carrier Spice-Jet's Bangalore-Pune flight was delayed by two hours after it was diverted to Mumbai due to poor visibility conditions caused by fog at the city's Lohegaon airport on Thursday morning.

The flight SG-343, carrying 113 passengers, eventually returned to Pune from Mumbai at 9.47 am, an airport official said. A SpiceJet spokesperson confirmed that flight SG-342, which took off from Bangalore at 5.55 am, was expected to land at the Lohegaon airport around 7.25 am. "However, poor visibility caused by fog at the Lohegaon airport forced the airline to divert the flight to Mumbai at 7.37 am," she said. "Later, the flight took off from Mumbai to finally land at the Lohegaon airport at 9.47 am," she said.

The flight later left for Ahmedabad. No other SpiceJet flights, operating in and out of Pune on Thursday morning, were affected, she added.

No plan for bailout package to private airlines: Aviation Minister

India, December 2002 -- The government has once again clarified that there is no proposal under consideration for any kind of bailout package for loss making private airlines. The Indian aviation sector has been under pressure because of the high Jet fuel prices or Aviation turbine fuel (ATF), which account for almost 40% of the airlines total cost in India and depreciating rupee. 'No such proposal is under consideration of the Ministry' Civil Aviation Minister Vyalar Ravi said. However, he accepted that the several leading airlines in the country were suffering losses. During 2009-10, the Kingfisher Airlines has accrued a loss of Rs.12393.000 Millions whereas Jet Airlines had suffered a loss of Rs.4676.000 Millions and the Air India had accrued loss of Rs.55524.400 Millions. However, few private carrier such as Indigo and Spicejet were able to make profit of Rs.4847.000 Millions and Rs.670.000 Millions respectively. As per the latest report, Air India owed a sum of Rs.18804.000 Millions to Indian Oil Corporation (IOC) and Rs.4843.000 Millions to Bharat Petroleum Corporation Limited (BPCL) as on September 30, Air India was also having due of Rs.4170.000 Millions to Hindustan Petroleum Corporation Limited (HPCL). Besides Air India, private airlines such as Jet Airways' owe Rs.6959.000 Millions outstanding due on September 30 to IOC and Rs.1532.400 Millions to BPCL. Kingfisher's outstanding debt to HPCL is around Rs.6367.900 Millions as on September 30. Meanwhile, it has been reported that the government is thinking of a close to Rs.300000.000 Millions bailout package for the national carrier, Indian Airlines over a period of 10 years. It will include considering writing-off Rs.45000.000 Millions cash loss of Air India, infusing an additional equity of Rs.67500.000 Millions and Rs.170000.000 Millions – 180000.000 Millions for its fleet acquisition programme.

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.51.83
UK Pound	1	Rs.79.42
Euro	1	Rs.65.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.