MIRA INFORM REPORT
|
Report Date : |
01.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
JET AIRWAYS
(INDIA) LIMITED (w.e.f. 28.12.2004) |
|
|
|
|
Formerly Known
As : |
JET AIRWAYS INDIA
PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Siroya Centre, Sahar Airport Road, Andheri (East), Mumbai – 400 099, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.04.1992 |
|
|
|
|
Com. Reg. No.: |
11-066213 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 863.300 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1992PLC066213 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ00366C /
MUMJ06594A / MUMJ05793ES |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Providing passenger and cargo air transportation services.
|
|
|
|
|
No. of Employees
: |
12849 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a leading private sector airline in It is established and a reputed company having satisfactory track. It
has incurred heavy loss during 2012. However, financial position of the
company appears sound. Directors are reported as well experienced,
knowledgeable businessmen. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct. The company can be considered for business dealing on a usual trade
terms and conditions. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loan : ICRA BB+ |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
Nov 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
Long term fund based limits: BB+ |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
Nov 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered / Corporate Office : |
Siroya Centre, |
|
Tel. No.: |
91-22-61211000 / 28505080/ 4271/ 5627/ 5628/ 5629 |
|
Fax No.: |
91-22-6121s1950 / 28560622 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Engineering Office
: |
Jet Airways Hanger, Opposite Indian Airlines Sports Club, Kalina, Santacruz (East), Mumbai – 400029, Maharashtra, India |
|
Tel No.: |
91-22-26675112 / 5120 |
|
Fax No.: |
91-22-26675242 |
|
|
|
|
Branch Office
: |
Located at:- v Mumbai v Ahmadabad v v v Kolkata v Mangalore v v v Chennai v v |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ali Ghandour |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Victoriano P. Dungca |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Javed Akhtar |
|
Designation : |
Director |
|
Date of Birth/ Age : |
17.01.1945 |
|
Qualification : |
Bachelors degree in Arts |
|
Expertise in specific functional area : |
Mr. Akhtar, a nominated Member of the Rajya Sabha, is a well-known
scriptwriter, lyricist, poet, activist and is a famous media personality. Mr.
Akhtar was awarded the Padma Bhushan in 2007. Mr. Akhtar has won several
awards, including the National Award for Best Lyricist five times. |
|
|
|
|
Name : |
Mr. I.M. Kadri |
|
Designation : |
Director |
|
Date of Birth/ Age : |
01.12.1929 |
|
Qualification : |
Bachelors degree in Engineering from |
|
Expertise in specific functional area : |
Mr. Kadri, is a member of the Council of Architecture, |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yash Raj Chopra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Whole-time Director and Manager |
KEY EXECUTIVES
|
Name : |
Ms. Monica Chopra |
|
Designation : |
Company Secretary and Associate Legal Counsel |
|
|
|
|
Name : |
Capt. Hameed Ali |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sudheer Raghavan |
|
Designation : |
Chief Commercial Officer |
|
|
|
|
Name : |
Ms. Anita Goyal |
|
Designation : |
Executive Vice President - Revenue
Management and Network Planning |
|
|
|
|
Name : |
Mr. Sitham Nadarajah |
|
Designation : |
Executive Vice President - Technical |
|
|
|
|
Name : |
Mr. M. Shivkumar |
|
Designation : |
Senior Vice President – Finance |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Senior Vice President - Commercial |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10,995 |
0.01 |
|
|
10,995 |
0.01 |
|
|
|
|
|
|
69,057,210 |
79.99 |
|
|
69,057,210 |
79.99 |
|
Total shareholding of Promoter and Promoter Group (A) |
69,068,205 |
80.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3459807 |
4.01 |
|
|
289604 |
0.34 |
|
|
2430864 |
2.82 |
|
|
6143674 |
7.12 |
|
|
12323949 |
14.27 |
|
|
|
|
|
|
886832 |
1.03 |
|
|
|
|
|
|
3386650 |
3.92 |
|
|
118535 |
0.14 |
|
|
|
|
|
|
197565 |
0.23 |
|
|
668 |
0.00 |
|
|
351607 |
0.41 |
|
|
4941857 |
5.72 |
|
Total Public shareholding (B) |
17,265,806 |
20.00 |
|
Total (A)+(B) |
86,334,011 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
86,334,011 |
- |
%20LIMITED%20-%20192293%2001-Sep-2012_files/image009.gif){kind=small}
%20LIMITED%20-%20192293%2001-Sep-2012_files/image010.gif){kind=small}
%20LIMITED%20-%20192293%2001-Sep-2012_files/image011.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
Providing passenger and cargo air transportation services.
|
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
12849 (Approximately) |
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Bankers : |
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Facilities : |
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Banking Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name 1 : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address : |
12, |
|
|
|
|
Auditors 2 : |
|
|
Name 2 : |
Chaturvedi and
Shah Chartered
Accountants |
|
Address : |
|
|
|
|
|
Legal Advisors : |
Gagrats |
|
|
|
|
Holding Company
: |
Tail Winds Limited |
|
|
|
|
Wholly Owned
Subsidiary Company (Control exists) : |
Jet Lite ( |
|
|
|
|
Enterprises over which controlling shareholder of
Holding Company and his relatives are able to exercise significant influence
directly or indirectly : |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
180000000 |
Equity Shares |
Rs.10/- each |
Rs.1800.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.2000.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
86334011 |
Equity Shares |
Rs.10/- each |
Rs.863.300
millions |
|
|
|
|
|
a. Reconciliation of
Number of Shares
|
Particulars |
As at 31st March, 2012 |
|
|
|
Number of shares |
Rs. In millions |
|
Equity Shares : Face value of Rs. 10/- each |
86,334,011 |
863.300 |
|
As at the beginning of the year As at the end of the year |
86,334,011 |
863.300 |
b. Shareholders holding more than 5% of equity share capital and shares held by Holding / Ultimate Holding Company
|
Particulars |
As at 31st March, 2012 |
|
|
|
Number of shares |
Percentage of holding |
|
Name of the
Shareholder |
|
|
|
Tail Winds Limited (Holding Company) and its nominee |
69067205 |
80.00% |
c. Terms / Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of ^ 10/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends if any, in Indian rupees. The dividend proposed if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by
the Shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
863.300 |
863.300 |
863.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12354.700 |
25180.100 |
32847.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(7290.800) |
|
|
NETWORTH |
13218.000 |
26043.400 |
26419.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
35288.900 |
35669.900 |
38361.800 |
|
|
2] Unsecured Loans |
73388.600 |
79337.000 |
99233.000 |
|
|
TOTAL BORROWING |
108677.500 |
115006.900 |
137594.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
336.300 |
1375.000 |
|
|
|
|
|
|
|
|
TOTAL |
121895.500 |
141386.600 |
165389.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
137824.500 |
136158.100 |
144299.200 |
|
|
Capital work-in-progress |
20.700 |
319.800 |
2996.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
16459.600 |
17250.900 |
17450.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7783.500
|
7111.800 |
5847.900 |
|
|
Sundry Debtors |
12664.400
|
9657.700 |
8107.700 |
|
|
Cash & Bank Balances |
4978.800
|
5877.100 |
7728.300 |
|
|
Other Current Assets |
1409.400
|
0.000 |
0.000 |
|
|
Loans & Advances |
29060.100
|
30498.400 |
16138.100 |
|
Total
Current Assets |
55896.200
|
53145.000 |
37822.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
31851.800
|
20900.400 |
17255.500
|
|
|
Other Current Liabilities |
54667.200
|
42717.900 |
18480.000
|
|
|
Provisions |
1786.500
|
1868.900 |
1442.100
|
|
Total
Current Liabilities |
88305.500
|
65487.200 |
37177.600 |
|
|
Net Current Assets |
(32409.300)
|
(12342.200) |
644.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
121895.500 |
141386.600 |
165389.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
148159.100 |
127367.600 |
104696.400 |
|
|
|
Other Income |
3571.700 |
1955.100 |
1532.800 |
|
|
|
TOTAL (A) |
151730.800 |
129322.700 |
106229.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Aircraft Fuel Expenses |
66306.700 |
43667.000 |
|
|
|
|
Employee Benefit Expenses |
15994.900 |
13396.900 |
|
|
|
|
Selling and Distribution Expenses |
13616.700 |
12617.200 |
|
|
|
|
Aircraft Lease Rentals |
9060.000 |
8443.600 |
|
|
|
|
Other Expenses |
40926.600 |
32321.200 |
|
|
|
|
Exceptional Items |
(731.900) |
(1891.900) |
|
|
|
|
TOTAL (B) |
145173.000 |
108554.000 |
91355.000
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6557.800 |
20768.700 |
14874.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9712.300 |
11197.100 |
9930.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(3154.500) |
9571.600 |
4944.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9398.800 |
9106.200 |
9619.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(12553.300) |
465.400 |
(4675.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(192.300) |
368.500 |
0.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(12361.000) |
96.900 |
(4676.400) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(7193.900) |
(7290.800) |
(2614.400) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(19554.900) |
(7193.900) |
(7290.800) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Passenger and Cargo Revenue |
62844.000 |
51337.500 |
41016.100 |
|
|
|
Interest on Bank Account |
3.400 |
2.300 |
4.100 |
|
|
|
Other Income |
161.500 |
448.300 |
292.600 |
|
|
|
Leasing Operations |
4521.200 |
5172.400 |
7176.800 |
|
|
TOTAL EARNINGS |
67530.100 |
56960.500 |
48489.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
3525.200 |
3618.800 |
1912.300 |
|
|
|
Capital Goods |
1568.500 |
643.800 |
2706.700 |
|
|
TOTAL IMPORTS |
5093.700 |
4262.600 |
4619.000 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(143.18) |
1.12 |
(54.17) |
|
%20LIMITED%20-%20192293%2001-Sep-2012_files/image005.gif){kind=small}
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30 .06.2012 (Unaudited) |
|
Net Sales |
44705.300 |
|
Total Expenditure |
41233.700 |
|
PBIDT (Excl OI) |
3471.600 |
|
Other Income |
2411.000 |
|
Operating Profit |
5882.600 |
|
Interest |
2499.300 |
|
Exceptional Items |
(646.400) |
|
PBDT |
2736.900 |
|
Depreciation |
2403.600 |
|
Profit Before Tax |
333.300 |
|
Tax |
86.300 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
247.000 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
247.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(8.15)
|
0.07 |
(4.40) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.47)
|
0.36 |
(4.47) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.48)
|
0.24 |
(2.57) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.94)
|
0.01 |
(0.18) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
14.90
|
6.93 |
6.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.63
|
0.81 |
1.02 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check
List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year
of Establishment |
Yes |
|
2] |
Locality
of the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type
of Business |
Yes |
|
6] |
Line
of Business |
Yes |
|
7] |
Promoter's
background |
Yes |
|
8] |
No.
of employees |
Yes |
|
9] |
Name
of person contacted |
No |
|
10] |
Designation
of contact person |
No |
|
11] |
Turnover
of firm for last three years |
No |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons
for variation <> 20% |
-- |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital
in the business |
Yes |
|
16] |
Details
of sister concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
No |
|
20] |
Export
/ Import details (if applicable) |
No |
|
21] |
Market
information |
-- |
|
22] |
Litigations
that the firm / promoter involved in |
-- |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct
of the banking account |
-- |
|
26] |
Buyer
visit details |
-- |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last
accounts filed at ROC |
Yes |
|
30] |
Major
Shareholders, if available |
No |
|
31] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN
of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
Note:
The Registered
Office of the Company has shifted to Siroya Centre, Sahar Airport Road, Andheri
(East), Mumbai - 400 099 with effect from 18th July, 2011.
HISTORY
Subject was
incorporated on 1st April, 1992 at Mumbai in
Subject commences
the operations as an Air Taxi Operator on 5th May, 1993 with a fleet
of four leased Boeing 737 aircraft. They were granted scheduled airline status
on 14th January, 1995.
At the time of
incorporation of the company, its shareholders were Mr. P.V.V. Chalam and mrs.
Anita Goyal. These shares were transferred to Tail Winds on 12 May, 1994, and
Mr. Naresh Goyal holds them on behalf of Tail Winds in terms of RBI approval
letter No. EC.BY.CO. (S) 250/2251/TS/93/94 dated 30th December,
1993.
Subject currently
provide regular scheduled services to 42 destinations in
DIRECTORS’ REPORT
Review of
Operations
The year has been a challenging one for the Company not only because of
the events around the world over which the Company has little control but also
because of severe overcapacity in the domestic market in India. The domestic
overcapacity led to fare wars in the domestic business with nearly all airlines
selling seats below cost. This led to severe losses for the Industry as a
whole. For the year ended 31 St March 2012, the domestic airline industry is
estimated to have lost over Rs.120000.000 millions.
There were other major events across the world which impacted the
business:
a) Slowdown in other
economies which led to a drop in yields in international markets
b) The weakening of
the Indian Rupee vis-ŕ-vis the United States Dollar
c) Increase in crude
oil prices and resultant price of Aviation Turbine Fuel, which forms close to
50% of their operating cost
d) General stress in
the Indian economy which not only meant that interest rates hardened but also
made it difficult for airlines like ourselves to raise short term/ working
capital debt Towards the second half of the financial year, things started
giving way and a major airline in India had to significantly reduce capacity in
the market. Also, airlines had no choice but to make fare increases and there
were two rounds of fare increases; one in November 2011 of around 10% and
another one in March 2012 of around 12%. This had very little impact on the
passenger traffic because of the capacity reduction in the market, which also
led to a steady increase in their corporate and business class bookings.
The Company, on its part, has taken various initiatives to improve its
operating efficiency and revenue earning potential to bring down the break even
load factor.
Initiatives such as enhancing ancillary revenues, discontinuing loss
making routes, Sale/ Sale and lease back of aircraft, re-negotiation of major
contracts including, for aircraft maintenance, ground handling, selling and
distribution costs, etc., have been either implemented or in the process of being
implemented, which will bring down the break even load factor.
The Company raised funds from the sale of development rights of its
lease hold property at Bandra-Kurla Complex, Mumbai and from the sale and lease
back of engines.
As part of its strategic re-branding exercise, the Company has
consolidated its low fare service products under the JetKonnect brand to
simplify the group’s service proposition and enhance brand recall.
Thus, effective 25th March, 2012, the erstwhile JetLite and
Jet Airways Konnect services have started operating under the JetKonnect brand,
enabling guests to avail of a single superior in-flight product in the full
service (Jet Airways) and low-fare (JetKonnect) categories. For the financial
year ended 31st March, 2012, their capacity on JetKonnect services
formed 64% of their overall domestic capacity in terms of number of seats. With
its mixed fleet of Boeings and ATR aircraft and 400 daily flights connecting 56
destinations across India, JetKonnect provides more flexibility and choice to
its guests, making it India’s largest low fare brand.
For the financial year 2012, the Company has had the best On Time
Performance (OTP) and has reported an OTP of 91.1%, which was higher than all
other domestic carriers in India. Their vision and focus has been to
consistently be not only the biggest, but also the best in their service to
customers and in all their operational metrics vis-a-vis the industry. They are
pleased to inform you that the benefits of these measures have translated in
the Company continuing to dominate the Indian domestic skies with a market
share of 26.1% during the year.
The Indian aviation market is one of the only markets in the world which
continues to grow at a healthy pace and it therefore presents an enviable
opportunity for companies like theirs, to take advantage of the strong
franchise that they have created over the last few years.
The domestic traffic in India grew by 13% for fiscal year 2012 and over
the next few years, they expect the domestic aviation market to grow at around
15% per annum and this has also been supported by various studies and analysis
carried out by independent agencies like IATA, CAPA, etc. However, there will
be short term challenges to grow profitably because of high operating costs and
overcapacity in both domestic market as well as international traffic into and
out of India.
During the year , domestic passenger traffic for the Company, reported a
17.9% growth as compared to the same period last year while international
passenger traffic registered an increase of 18.1%.
The Company ended the financial year with a system-wide seat factor of
74.8% on the domestic and 81.6% on the international sectors.
The Company carried Rs.17.305 millions revenue passengers on its
international and domestic services during the year , up from Rs.14.667
millions in the previous financial year.
The financial year 2012 was a year of consolidation and there were not
many new routes that the Company began operations on. The focus was largely on
building traffic flows between domestic and international as well as
international traffic flows over their key hubs at Mumbai and New Delhi. The
International business of the Company has now posted several consecutive
quarters of consistent growth in terms of seat factor of above 80% and increase
in the capacity in terms of ASKMs reflecting the growing impact of their
network synergies, major strategic international code shares and customer
centric product and service focus
The Company will take deliveries of 4 Airbus A330 – 300 aircraft this
financial, of which 2 will be replacements for lease expiries while the other 2
will be deployed on long haul international routes. There are various
international route rights that the Company has applied for to fly into
European countries and the new aircraft capacity will be deployed on some of
these routes. Additionally, they will also free some A330 aircraft capacity due
to temporary suspension of their loss making routes like Mumbai-Johannesburg in
June 2012. These aircraft will be redeployed on to other routes.
Fleet
As on date, the Company had a fleet of 102 aircraft, comprising 10
Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 60 Next Generation
Boeing 737-700/800/900/900ER aircraft and 20 modern ATR 72-500 Turboprop
aircraft. With an average fleet age of 6.04 years, the airline has one of the
youngest aircraft fleets in the world.
Of the 10 B777-300ER aircraft, 5 aircraft have been sub-leased to Thai
Airways Public Company Limited (“Thai Airways”). The lease in respect of these
aircraft expires between May, 2013 and November, 2013.
Flights to 76 destinations span the length and breadth of India and
beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam,
Dhaka, Doha, Dubai, Hong Kong, Jeddah, Johannesburg, Kathmandu, Kuala Lumpur,
Kuwait, London (Heathrow), Milan, Muscat, New York (both JFK and Newark),
Riyadh, Sharjah, Singapore and Toronto.
5. Subsidiary
Company
Jet Lite (India) Limited (‘Jet Lite’) is a wholly owned subsidiary which
was acquired by the Company on 20
Th April, 2007.
Jet Lite is a non-material, non-listed subsidiary company as defined
under Clause 49 of the Listing Agreement(s) entered into with the Stock
Exchanges.
Jet Lite follows the low-cost, no-frills business model. Effective 25 th
March, 2012, the service offered under the JetLite brand was re-christened as
JetKonnect.
For the financial year ended 31st March, 2012, Jet Lite posted a total income
of Rs.19038.600 millions (2010-11: Rs.17861.500 millions) and a Net Loss of
Rs.1840.300 millions (2010-11: Net Loss of Rs. 1074.700 millions). In view of
the loss, the Board of Directors of Jet Lite has not recommended a dividend;
neither on the Equity Shares nor on the Compulsorily Fully Convertible
Non-Cumulative Preference Shares for the financial year ended 31 St March, 2012
(Previous Year : Nil). The Company continues to support the operations of Jet
Lite.
As on date, Jet Lite had an all Boeing fleet of 19 aircraft, comprising
9 Boeing 737-700, 8 Boeing 737-800 and 2 Boeing 737-900 ER aircraft. The
airline flies to 56 destinations across India and 1 international destination -
Nepal. Pursuant to Circular No. 2/2011 dated 8th February, 2011,
issued by the Ministry of Corporate Affairs read with the provisions of Section
212(8) of the Companies Act, 1956, the Annual Report of Jet Lite, for the
financial year ended 31st March, 2012, is not annexed to this
Report. A summary of the financial performance of Jet Lite is given in this
Annual Report. The Company will make available copies of the Annual Accounts of
Jet Lite and the related detailed information, free of cost to Members, on
request. The same are also available for inspection at the Registered Office
between 10 a.m. and 12 noon on any working day of the Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure
and Development
1.1 The aviation industry in India has gone through another very
difficult year of operation and continued to show
substantial losses for Fiscal 2012. This was mainly due to extremely
high costs of operations as well as excess
capacity in the industry. In the second half of the fiscal year, some of
this capacity started getting out of the market because of cancellations by a
major player in the industry.
1.2 Crude oil prices continued to be very high especially in the latter
half of the year and this diluted any major impact of capacity reduction. In
addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued
to be negative for the industry players. Since many of the carriers have more
US Dollar costs than US Dollar revenues, this put significant pressure on the
cost line.
1.3 The difficult financial environment in Europe, USA and other
countries also resulted in the airlines’ inability to
increase yields into and out of these markets. This put significant
pressure on the financials of airlines. Added to this pressure, was the issue
of Banks and other partners taking a negative stance on aviation companies in
India which precluded airlines from getting any kind of financial support in
the short term.
1.4 Towards the end of the year, because of some demand – supply
imbalance being reduced, airlines were able to make some fare increases, the
impact of which will be seen in Fiscal 2013.
2. Analysis of
Operational Performance Fiscal 2012 Compared to Fiscal 2011 Revenues
2.1 Total operating revenues of Rs. 148159.100 millions in Fiscal 2012
compared to Rs. 127367.600 millions in Fiscal 2011 shows an increase of 16%.
The higher revenues are on account of increase in the level of operations
resulting in increase in Passenger and Cargo revenues.
Passenger Revenues
2.2 In Fiscal 2012 passenger revenues were at Rs. 125820.500 millions as
compared to Rs.105708.100 millions in Fiscal 2011. The growth of 19% is mainly
due to increase in number of passengers carried compared to the previous year.
Revenues from
Excess Baggage
2.3 Revenues from excess baggage revenue increased by 63% to Rs. 913.900
millions in Fiscal 2012 from Rs.559.600 millions in Fiscal 2011.
Revenues from
Cargo
2.4 Revenues from carriage of cargo increased by 13% to Rs.13084.100
millions in Fiscal 2012 from Rs.11599.500 millions in Fiscal 2011. This was
mainly on account of increase in the cargo yield over the last year along with
the rise in cargo tons carried.
Other Revenues
2.5 Other revenues decreased to Rs.8340.600 millions in Fiscal 2012 from
Rs. 9500.400 millions in Fiscal 2011. The reduction can be mainly attributed to
reduced leasing income from Rs.5172.400 millions in Fiscal 2011 to Rs. 4521.200
millions in Fiscal 2012.
Non-Operating
Revenues
2.6 Non-operating Revenues increased to Rs.3571.700 millions in Fiscal
2012, up by 83% from Rs.1955.100 millions in Fiscal 2011.
The increase was mainly on account of profit on sale of engines and sale
of development rights of BKC Land.
Expenses
2.7 Their total expenses amounting to Rs.165016.000 millions in Fiscal
2012 increased by 26% from Rs.130749.200 millions in Fiscal 2011.
Aircraft Fuel
2.8 Fuel costs increased by 52% to Rs. 66306.700 millions for Fiscal
2012 from Rs.43667.000 millions in Fiscal 2011. This increase was mainly due
to:
● Increase in Aviation Turbine Fuel (ATF) rates on account of increase
in crude oil prices. The average rate per litre of fuel for domestic operations
in Fiscal 2012 was ` 60.20 vs ` 45.01 for Fiscal 2011. The rates for
International operations were ` 43.36 in Fiscal 2012 vs ` 30.29 in Fiscal 2011.
● There was also an increase in block hours flown from 350,161
hours in Fiscal 2011 to 400,060 hours in Fiscal
2012, as a result of increase in the level of operations.
Other Operating
Expenses
2.9 Other Operating Expenses increased by 27% to Rs.40926.600 millions
for Fiscal 2012 from Rs.32321.200 millions in Fiscal 2011 as summarized below:
The increase in maintenance and repair costs in 2012 was essentially due
to:
● Increase in block hours from 350,161 hours in Fiscal 2011 to
400,060 hours in Fiscal 2012.
● The landing and navigation charges were high because of increase
in number of flights operated over previous year; additionally some of the
International routes were upgraded to wide body aircraft.
● The increase in general and administrative expenses in Fiscal
2012 over Fiscal 2011 is attributable to:
➡ Increase in Food and Cabin expenses by 13% from Rs. 5306.900 millions to Rs. 6009.500 millions is primarily due to the change in the mix of full service and JAK operations over the last year along with the level of operations going up.
➡ The increase in expenses relating to crew accommodation, transportation and allowances by 27% from Rs.1785.400 millions in Fiscal 2011 to Rs.2263.900 millions in Fiscal 2012 was due to the expansion of services in the Domestic market along with the addition of frequencies on International routes.
➡ Loss on foreign exchange fluctuation amounting to Rs.1725.700 millions which is included in general and administrative charges.
Employee
Remuneration and Benefits
2.10 Expenses with regard to employee remuneration and benefits
increased by 19% to Rs.15994.900 millions in Fiscal 2012 from Rs.13396.900
millions in Fiscal 2011 due to increase in the personnel employed to support
the increase in the flights operated i.e. number of departures increased by
around 19% over the last year. As on 31st March, 2012, the Company had 12,849
permanent employees as against 12,811 permanent employees on 31st March, 2011.
Selling and
Distribution Costs
2.11 Selling and distribution costs increased by 8% to Rs.13616.700
millions for Fiscal 2012 from Rs.12617.200 millions for Fiscal 2011. Commission
costs, which forms a part of selling and distribution costs, did not go up in
the same proportion as increase in the revenues. This was due to decrease in the
performance linked incentives and commission paid to agents / general selling
agents. Hence, increase in the selling and distribution cost was restricted to
only 8%.
Lease Rentals
2.12 Aircraft rentals increased by 7% to Rs, 9060.000 millions in Fiscal
2012 from Rs. 8443.600 millions in Fiscal 2011 mainly on account of
● The induction of 4 Boeing 737-800 aircrafts and 1 Boeing
737-900ER
● Impact of exchange rate difference of Rupee moving from 44.595
to 50.875 to a Dollar. Depreciation
Depreciation
2.13 increased by 3% to Rs. 9398.800 millions in Fiscal 2012 from
Rs.9106.200 millions in Fiscal 2011 mainly on account of depreciation of Rupee
against the Dollar in the current year.
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30TH JUNE, 2012
|
Sr.No. |
Particulars |
30.06.2012 (Rs. In millions) |
|
|
|
Quarter Ended |
|
|
|
(Unaudited) |
|
1. |
Income from
Operations |
|
|
|
a. Income from Operations (Net) |
43449.200 |
|
|
b. Other Operating Income (Refer Note 3) |
24,23.500 |
|
|
Total Income from
Operations |
45872.700 |
|
2. |
Expenses : |
|
|
|
a. Aircraft Fuel Expenses |
19674.100 |
|
|
b. Aircraft Lease Rentals |
2755.700 |
|
|
c. Employees Remuneration and Benefits |
4017.100 |
|
|
d. Depreciation and Amortization |
2403.600 |
|
|
e. Selling and Distribution Expenses |
3741.000 |
|
|
f. Other Expenses |
11045.800 |
|
|
Total Expenses |
43637.300 |
|
3. |
Profit / (Loss) from
Operations before Other Income, Finance Cost and Exceptional Items (1-2) |
2235.400 |
|
4. |
Other Income : (Refer Note 4) |
1243.600 |
|
5. |
Profit /(Loss) from
Operations before Finance Cost and Exceptional Items (3+4) |
3479. 000 |
|
6. |
Finance Cost |
2499.300 |
|
7. |
Profit / (Loss)
Profit after Finance Cost but before Exceptional Items (5-6) |
979.700 |
|
8. |
Exceptional Items : (Refer Note 5) a. Contribution receivable from Lessors towards maintenance b. Unrealised Exchange Gain / (Loss) c. Marked to Market - Derivatives |
(689.400) 43. 000 |
|
9. |
Profit / (Loss)
from Ordinary Activities before Tax (7+8) |
333.300 |
|
10. |
Tax Expense : Current Tax Deferred Tax MAT Credit Reversal / (Entitlement) Short / (Excess) Tax Provisions (Net) for Earlier Years |
86.300 86.300 |
|
11. |
Profit / (Loss)
from Ordinary Activities after Tax ( 9-10) |
247.000 |
|
12. |
Extraordinary Item |
.- |
|
13. |
Net Profit / (Loss) (11-12) |
247.000 |
|
14. |
Paid up Equity Share Capital (Face Value of Rupees 10/- each) |
8,633 |
|
15. |
Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) |
|
|
16. |
Basic and Diluted EPS before and after Extraordinary Item (in Rupees) * |
2.86 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
17. |
Public Shareholding |
|
|
|
Number of Shares (Face Value of Rupees 10/- each) |
17,265,806 |
|
|
Percentage of holding (%) |
20% |
|
18. |
Promoters and
Promoter Group Shareholding a) Pledged / Encumbered - Number of Shares - Percentage of Total Promoters and Promoter Group Shareholding (%) - Percentage of Total Share Capital of Company (%) b) Non - Encumbered |
- |
|
|
- Number of Shares |
69,068,205 |
|
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
100% |
|
|
- Percentage of Total Share Capital of Company (%) |
80% |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Received during the quarter |
3 |
|
|
Disposed off during the quarter |
3 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
UNAUDITED STANDALONE
SEGMENTWISE REVENUE, RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012
|
1 |
Standalone |
|
|
|
Particulars |
Quarter Ended |
|
|
|
30.06.2012 (Unaudited) |
|
|
Segment Revenue : (Primarily
Passenger, Cargo, Excess |
|
|
|
Baggage and Leasing
of Aircraft) |
|
|
|
Domestic |
19853.900 |
|
|
International |
26018.800 |
|
|
Total |
45872.700 |
|
|
Segmental Result : |
|
|
|
Domestic |
10130.500 |
|
|
International |
10971.100 |
|
|
Total |
21101.600 |
|
Less : |
Finance Cost |
2499.300 |
|
|
Depreciation and Amortization |
2403.600 |
|
|
Other Unallocable Expenditure |
16462.600 |
|
Add : |
Other Unallocable Revenue |
1243.600 |
|
Add : |
Exceptional Items (Net) |
(646.400) |
|
|
Profit / (Loss)
before tax |
333.300 |
|
Less : |
Taxes |
86.300 |
|
|
Profit / (Loss)
after Tax |
247.000 |
Notes:
1. The above results have been reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors at its Meeting held on 3rd August, 2012. The Statutory Auditors have carried out a limited review of the above results pursuant to Clause 41 of the Listing Agreement.
2. The figures for the quarter ended 31st March, 2012 are the balancing figures between the audited figures in respect of the full financial year ended 31st March, 2012 and the published year-to-date figures upto the third quarter ended 31st December, 2011.
3. Other Operating Income include income from leasing of Aircraft. For the Quarter ended 30th June, 2012 income from such activity stood at Rs.1167.400 millions. The corresponding income for the Quarter ended 30th June, 2011 was Rs. 1366.800 millions. The income for the Quarter and year ended 31st March, 2012 was Rs. 1107.1 millions and Rs. 4521.200 millions respectively.
4. Other Income includes :
a) Profit on Sale and Leaseback of Aircraft amounting to T Rs. 523.700 millions during the Quarter ended 30th June, 2012. Profit on Sale and Leaseback of Aircraft Engines amounting to Rs.760.900 millions is included in the results for the year ended 31st March, 2012.
During the F.Y 2011-12, the company finished an agreement with Godrej Buildcon Private Limited, Mumbai (GBPL) for the development of its land situated at Bandra-Kurla Complex, Mumbai taken on long term lease from MMRDA. Consequent to the said agreement, the Company has been reimbursed all cost incurred on the above said land and to the extent such cost were charged to the Statement of Profit and Loss in earlier years the same has been credited to the Statement of Profit and Loss. This credit amounting to Rs. 1028.600 millions is included in the results for the year ended 31st March, 2012.
5 a) During the F.Y. 2009-10, the Company entered into "Power by the Hour" (PBTH) engine maintenance arrangement with a service provider. Subsequent to which the PBTH cost are being charged to the Statement of Profit and Loss and the variable rentals payable to the Lessors, based on maintenance plan, are being recognised as "Receivable From Lessors". Based on a joint validation of the Company's maintenance plan with the service provider, the Company has recognised the expected refunds of variable rentals accrued till 31st March, 2009 as "Contribution receivable from Lessors towards maintenance".
b) Unrealised exchange Gain / (Loss) in refers to the notional Gain / (Loss) arising out of the restatement of the unhedged portion of foreign currency monetary assets and liabilities (other than asset backed borrowings). Due to unusual and steep depreciation in the value of the Rupee over last one year, the net unrealised loss has been considered by the Company to be exceptional in nature. In line with the Notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs, the Company exercised the option given in the paragraph 46A of Accounting Standard - 11 "The Effects of Changes in foreign exchange rates". Accordingly, the Company has, with effect from April 1, 2011, amortized the foreign exchange loss incurred on long term foreign currency monetary items over the balance period of such long term foreign currency monetary items. The amortized portion of foreign exchange loss (net) incurred on long term foreign currency monetary items for the Quarter ended 30th June, 2012 is Rs. 118.500 millions (for the Quarter and year ended 31st March, 2012 it was Rs. 254.100 millions and Rs. 400.600 millions respectively). The unamortised portion carried forward as on 30th June, 2012 is Rs.2887.300 millions (Rs.1409.400 millions for the year ended 31st March, 2012).
6.The Company had acquired 100% of the shareholding of Sahara Airlines Limited (SAL) (now known as Jet Lite (India) Limited) in April, 2007. As per the Share Purchase Agreement (SPA) as amended by the subsequent Consent Award, the mutually agreed sale consideration was to be paid to the Selling Shareholders (SICCL) in four equal interest free instalments by 30th March, 2011. As a result of certain disputes that arose between the parties, both the parties had filed petitions in the Hon'ble Bombay High Court for breach of SPA as amended by the subsequent Consent Award. The Hon'ble Bombay High Court delivered its Judgment on 4th May, 2011 whereby SICCL's demand for restoration of the original price of Rs.20000.000 millions was denied and the Purchase Consideration was sealed at the revised amount of Rs. 14500.000 millions. However, in its judgment, the Hon'ble Bombay High Court has awarded interest at 9% p.a. on the delayed payments made to SICCL largely on account of ongoing legal dispute. In view of this Order, a sum of Rs.1164.300 millions became payable as interest which has been duly discharged by the Company. As a result of this discharge, the undertaking given by the Company in April 2009 for not creating any encumbrance or alienation of its moveable or immoveable assets and properties in any manner other than in the normal course of the business, stands released.
Though the Company had complied with the order of the Hon'ble Bombay High Court, based on legal advice, it filed an appeal with the Division Bench of the Hon'ble Bombay High Court contesting the levy of interest. SICCL also filed an appeal with the Division Bench of the Hon'ble Bombay High Court for restoration of the purchase consideration to Rs. 20000.000 millions and for interest to be awarded at 18% p.a. as against the 9% p.a. awarded by the Hon'ble Bombay High Court.
The Division Bench of the Hon'ble Bombay High Court heard the matter and vide its order dt.17th October, 2011 dismissed both the appeals as being not maintainable in view of jurisdictional issue. The Company has since filed Special Leave Petitions (SLP) before the Hon'ble Supreme Court challenging both the orders of 4th May, 2011 and 17th October, 2011. SICCL had earlier filed a SLP before the Hon'ble Supreme Court for increased compensation and interest.
Both the SLPs, filed by Jet Airways as well as SICCL, came up for hearing before the Supreme Court. The Supreme Court directed the parties to file the Counter and Rejoinder which has since been filed. The Supreme Court also recorded that the statement made by Jet Airways, as recorded in the order dated 6th May, 2011 passed by the Hon'ble Bombay High Court, would continue till further orders.
Pending adjudication of the matter by the Hon'ble Supreme Court, the interest payment of Rs. 1164.300 millions effected by the Company on 5th May 2011 has not been recognised in the Statement of Profit and Loss.
7.The Company has equity and preference investments aggregating to Rs. 16450.000 millions in Jet Lite (India) Limited, a wholly owned subsidiary, and has advanced an interest free loan amounting to Rs. 13322.700 millions as on 30th June, 2012. An external reputed valuer based on revised business plans as approved by the Board of subsidiary company, has recently valued the equity interest in the subsidiary, which supports the carrying value of such investment. The Company continues to provide financial support to the subsidiary's operations to further such business plans and expects it to turnaround. Accordingly, the subsidiary’s financial statements have been prepared on a "Going Concern" basis and no provision is considered necessary at this stage in respect of the Company's investments and loans outstanding from the said subsidiary.
8. In view of the seasonality of the business, the financial results for the Quarter ended 30th June, 2012 are not indicative of the full year's performance.
9. The Airline Industry continues to be overshadowed by high fuel and other operating cost besides weakening Rupee, which significantly impacted the performance and cash flows of the Company and its subsidiary resulting in substantial erosion of the net worth. The Management has been constantly implementing initiatives to improve the operating cash flows through cost control measures, route rationalisation, leasing out Aircraft, exploring avenues of enhancing ancillary revenues etc. The Company is also exploring options of raising finances to meet its various operational and financial obligations including financial support to its Subsidiary - Jet Lite (India) Limited. These measures are expected to result in sustainable cash flows and accordingly these financial statements continue to be presented on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the normal course of business.
10. The figures for the previous corresponding periods have been regrouped / reclassified, wherever necessary, to make them comparable.
WEBSITES DETAILS:
PRESS RELEASE:
Jet Airways and ICICI
bank launch co-branded credit cards
Exclusive travel and lifestyle benefits await the country’s frequent flyers
August 27, 2012
MUMBAI: Jet Airways, India’s premier international airline and ICICI Bank Ltd., India’s largest private sector bank, today announced the launch of the “Jet Airways ICICI Bank Credit Cards”, a suite of co-branded cards offering exceptional value to JetPrivilege members and the country’s growing community of frequent flyers. In keeping with the lifestyle of the evolved traveller, the card privileges extend beyond exclusive travel benefits to offer premium lifestyle benefits as well.
The Jet Airways ICICI Bank Credit Cards will be available in three premium variants – Sapphiro, Rubyx and Coral in partnership with American Express and Visa. Customers will have the option to apply for a standalone American Express or Visa Credit Card or enjoy the benefits of applying for both cards with a single application. The Jet Airways ICICI Bank Credit Cards’ unique features allow customers to convert their everyday purchases into flight awards, while enjoying an array of exclusive privileges and world class services.
The Jet Airways ICICI Bank Credit Cards will be available under an attractive pre-booking offer of up to 5000 JP Miles valid until September30th, 2012.
The Jet Airways American Express Cards from ICICI Bank offer an unsurpassed earn rate of up to 7 JPMiles for every Rs.100 spent, making this the most rewarding card for frequent flyers in India. In addition, from now to October 31st, 2013 customers will earn an additional 2 JPMiles per Rs 100 spent on the Rubyx and Sapphiro variants and 1 JPMile per Rs 100 spent on the Coral variant.
The Visa Chip Credit Cards will provide enhanced security, wealth of luxury benefits and unrivalled global acceptance.
Mr. Nikos Kardasis, CEO, Jet Airways (India) Limited said, “Jet Airways prides itself in fostering long-term relationships with their guests and frequent flyers through constant customer centric innovations. The co-branded card is another significant milestone in partnership with ICICI Bank and highlights the quality of collaboration between the two partners. The new card brings together ICICI Bank’s expertise in credit cards and affluent banking with Jet Airways’ strength in service excellence with a wide network to provide customers with an innovative card that will reward them with benefits at home and when travelling abroad.”
Ms. Chanda Kochhar, Managing Director and CEO, ICICI Bank said, “They are delighted to bring to their customers these unique credit card propositions. These co-branded credit cards will provide superior customer experience thus enabling us to deepen their relationship with their existing customers.”
The Jet Airways ICICI Bank Credit Cards, depending on the card variant, offer the following attractive benefits to card members:
Up to 7 JP Miles per Rs 100 spent on all spends on the Jet Airways - American Express Cards issued by ICICI Bank. As a promotional offer from now until 31st October 2013, customers will earn up to 9 JPMiles per Rs 100 spent on all spends Up to 10,000 JP Miles on joining. Up to an additional 5,000 JPMiles if customers pre-book their Jet Airways ICICI Bank Credit Cards One complimentary Jet Airways economy class base fare waived off ticket on joining and every year thereafter 5% discount for bookings on the Jet Airways website, excess baggage allowance and dedicated check-in Complimentary access to Altitude Lounges at Mumbai and Delhi airports with the Jet Airways American Express Card issued by ICICI Bank Complimentary airport lounge access at Visa affiliated Lounges Buy one get one on movie tickets, complimentary golf rounds at 9 premier golf courses in India and complimentary fraud insurance cover courtesy the ‘ICICI Bank Credit Cards Experience’ programme Minimum savings of 15% on dining bills across 800 restaurants in 11 cities in India courtesy ICICI Bank Culinary Treats Enhanced security against fraud with embedded microchip technology for Jet Airways ICICI Bank Visa Credit Cards
The card will be complimentary for JP Platinum members.
JET AIRWAYS PRESS
STATEMENT
August 24, 2012
The commander of 9W12 from Mumbai to Singapore was on a take off roll when he was informed by ATC to reject take off as an incoming aircraft had carried out a go around. The commander of Jet Airways could not reject take off since he had gone past the decision speed and it did not result in an unsafe situation. The procedure established by Airport Authorities for an aircraft that carries out a go-around verses an aircraft that is taking off provides adequate separation so that there is no threat to safety. There were 142 guests and crew on board the flight.
Jet Airways enhances Gulf connectivity with three new flights
Will now operate eight daily flights between India and the UAE
Effective October 18, 2012, Jet Airways, India’s premier
international airline is set to enhance connectivity to the Gulf with the
launch of its new Mumbai-Sharjah service, the airline's sixth daily flight to
the UAE from Mumbai, in addition to the resumption of its services to Kuwait
and Bahrain from Kochi.
Guests from the above Gulf destinations will now enjoy seamless connectivity
with Jet Airways' pan-India domestic network, as also the Far East and SAARC
countries, through the airline's international hub in Mumbai.
Jet Airways' new daily return service Mumbai to Sharjah (9W558 / 557) will be the sixth daily service between Mumbai and the UAE, in addition to the existing four daily services to Dubai and one daily service to Abu Dhabi.
|
Flight No. |
Origin |
Destination |
Departure Time |
Arrival Time |
|
9W558 |
Mumbai |
Sharjah |
2100 hrs |
2245 hrs |
|
9W557 |
Sharjah |
Mumbai |
2345 hrs |
0405 hrs |
All timings are in local time. The airline's return services on the Kochi-Kuwait sector (9W576 / 575) will operate four times a week- on Mondays, Thursdays, Saturdays and Sundays respectively.
|
Flight No. |
Origin |
Destination |
Departure Time |
Arrival Time |
|
|
|
|
|
|
|
9W576 |
Kochi |
Kuwait |
1900 hrs |
2155 hrs |
|
9W575 |
Kuwait |
Kochi |
2255 hrs |
0615 hrs |
All timings are in local time. Jet Airways' Kochi-Bahrain return services (9W594 / 593) will operate three days a week- on Tuesdays, Wednesdays and Fridays respectively.
|
Flight No. |
Origin |
Destination |
Departure Time |
Arrival Time |
|
|
|
|
|
|
|
9W594 |
Kochi |
Bahrain |
1900 hrs |
2115 hrs |
|
9W593 |
Bahrain |
Kochi |
2215 hrs |
0515 hrs |
All timings are in local time. The introduction of these flights will further strengthen Jet Airways' presence in the Gulf where it has emerged as one of the leading carriers to and from India in a relatively short period of time. The airline will deploy its state-of-the-art Next-Generation Boeing 737-800 aircraft, offering Premiere and Economy configurations. Guests will be offered the airline's superior in-flight product, which boasts of warm service, award winning entertainment and cuisine. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said “In keeping with the growing demand from their guests for seamless connections between the Gulf and India, as well as onwards via their international hub in Mumbai, Jet Airways is delighted to enhance its services on the India-Gulf sector in the winter schedule. Having emerged as among the leading airlines on the highly competitive Indo-Gulf sector in a relatively short period of time, they are confident that the new services will prove popular with their guests.”
About Jet Airways
Jet Airways currently operates a fleet of 99 aircraft, which
include 10 Boeing 777-300 ER aircraft, 11 Airbus A330 200 aircraft, 58 next
generation Boeing 737-700/800/900 aircraft and 20 modern ATR 72-500 turboprop
aircraft. With an average fleet age of 6.13 years, the airline has one of the
youngest aircraft fleets in the world. Flights to 74 destinations span the
length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok,
Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu,
Kuwait, London (Heathrow), Milan, Muscat, New York (both JFK and Newark),
Riyadh, Sharjah, Singapore and Toronto.
About JetKonnect
A consolidation of the erstwhile JetLite and Jet Airways
Konnect brands, the new JetKonnect service is a dedicated product designed to
meet the needs of the low fare segment. JetKonnect will also offer guests a
Premiere service on certain select routes. With its mixed fleet of Boeings and
ATR aircraft and 400 daily flights connecting 56 destinations across India,
JetKonnect provides more flexibility and choice to its guests, making it
India’s largest low fare brand. JetKonnect’s convenient schedules, reliable
service and low fares promise to bring greater value and a seamless flying
experience to their customers.
CONTINGENT LIABILITIES:
|
Particulars |
As at 31st March |
|
|
|
2012 |
2011 |
|
(a) Guarantees : |
|
|
|
i. Letters of Credit Outstanding |
149,671 |
151,627 |
|
ii. Bank Guarantees Outstanding |
126,640 |
75,829 |
|
iii. Corporate Guarantee given to Banks and Financial Institutions against |
|
|
|
credit facilities and to Lessors against financial obligations extended to Subsidiary Company : |
|
|
|
- Amount of Guarantee |
53,598 |
42,166 |
|
- Outstanding Amounts against the Guarantee |
53,074 |
42,166 |
|
(b)Claims against the
Company not acknowledged as debt (Refer note below) : |
|
|
|
i. Service Tax Demands in Appeals |
176,331 |
137,052 |
|
ii. Fringe Benefit Tax Demands in Appeals |
10,630 |
9,586 |
|
iii. Pending Civil and Consumer Suits |
5,849 |
6,656 |
|
iv. Inland Air Travel Tax Demands under Appeal |
426 |
426 |
|
Amount deposited with the Authorities for the above Demands |
105 |
105 |
|
v. Octroi |
Nil |
2,899 |
|
vi. Customs |
143 |
- |
|
vii. Income Tax Demands in Appeals |
33,711 |
35,805 |
|
viii. Wealth Tax Demands in Appeals |
21 |
21 |
(xi) The Holding Company had acquired 100% of the shareholding of Sahara Airlines Limited (SAL) (now known as Jet Lite (India) Limited) in April, 2007. As per the Share Purchase Agreement (SPA) as amended by the subsequent Consent Award, the mutually agreed sale consideration was to be paid to the Selling Shareholders (SICCL) in four equal interest free instalments by 30th March, 2011. As a result of certain disputes that arose between the parties, both the parties had filed petitions in the Hon'ble Bombay High Court for breach of SPA as amended by the subsequent Consent Award. The Hon'ble Bombay High Court delivered its Judgment on 4th May, 2011 whereby SICCL's demand for restoration of the original price of Rs. 20000.000 millions was denied and the Purchase Consideration was sealed at the revised amount of Rs. 14500.000 millions. However, in its judgment, the Hon'ble Bombay High Court has awarded interest at 9% p.a. on the delayed payments made to SICCL largely on account of ongoing legal dispute. In view of this Order, a sum of Rs. 1164.300 millions became payable as interest which has been duly discharged by the Holding Company. As a result of this discharge, the undertaking given by the Holding Company in April 2009 for not creating any encumbrance or alienation of its moveable or immoveable assets and properties in any manner other than in the normal course of the business, stands released.
Though the Holding Company had complied with the order of the Hon'ble Bombay High Court, based on legal dvice, it filed an appeal with the Division Bench of the Hon'ble Bombay High Court contesting the levy of interest. SICCL also filed an appeal with the Division Bench of the Hon'ble Bombay High Court for restoration of the purchase consideration to Rs.20000.000 millions and for interest to be awarded at 18% p.a. as against the 9% p.a. awarded by the Hon'ble Bombay High Court. The Division Bench of the Hon'ble Bombay High Court heard the matter and vide its order dt.17th October, 2011 dismissed both the appeals as being not maintainable in view of jurisdictional issue. The Holding Company has since filed Special Leave Petitions (SLP) before the Hon'ble Supreme Court challenging both the orders of 4th May, 2011 and 17th October, 2011. SICCL had earlier filed a SLP before the Hon'ble Supreme Court for increased compensation and interest.
Both the SLPs, filed by Jet Airways as well as SICCL, came up for hearing before the Supreme Court. The Supreme Court directed the parties to file the Counter and Rejoinder which has since been filed. The Supreme Court also recorded that the statement made by Jet Airways, as recorded in the order dated 6th May, 2011 assed by the Hon'ble Bombay High Court, would continue till further orders. Pending adjudication of the matter by the Hon'ble Supreme Court, the interest payment of Rs.1164.300 millions effected by the Holding Company on 5th May, 2011 has not been recognized in the Statement of Profit and Loss.
Note:
The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of these proceedings to have any adverse effect on its financial conditions, results of operations or cash flows. Further, claims by parties in respect of which the Management have been legally advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the possibility of an outflow of resources embodying economic benefit is highly remote.
FIXED ASSETS
Owned Tangible Assets:
v Freehold Land
v Plant and Machinery
v Furniture and Fixtures
v Electrical Fittings
v Data Processing Equipments
v Office Equipments
v Vehicles
v Ground Support Equipments
v Simulator
Leased Assets:
v
v Aircraft and Spare Engine (Narrow Body)
v Aircraft and Spare Engine (Wide Body)
v Improvement on Leased Aircraft
v Improvement on Leased Property
Intangible Assets:
(Other than
internally generated)
v Software
v Landing Rights
v Trademarks
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.65 |
|
|
1 |
Rs.88.10 |
|
Euro |
1 |
Rs.69.84 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
44 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.