MIRA INFORM REPORT

Report Date :

31.08.2013

IDENTIFICATION DETAILS

Name :	GO AIRLINES (INDIA) LIMITED (w.e.f. March 1, 2011)
Formerly Known As :	GO AIRLINES (INDIA) PRIVATE LIMITED
Registered Office :	C/O Britania Industries Limited, A-33, Lawrence Road Industrial Area, New Delhi – 110 035
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.04.2004
Com. Reg. No.:	55-217305
Capital Investment / Paid-up Capital :	Rs.700.000 Millions
CIN No.: [Company Identification No.]	U63013DL2004PLC217305
PAN No.: [Permanent Account No.]	AAACG2599K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is managed as a single operating unit that provides air transportation.
No. of Employees :	Information declined by the management.

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Wadia Group is an established company having moderate track record. There appears huge accumulated losses recorded by the company which has eroded the networth of the company However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with great 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	long Term bank Facilities = BBB- (So) (117.50)
Rating Explanation	Moderate credit quality and average credit risk
Date	12.03.2013

Rating Agency Name	CARE
Rating	Short Term bank Facilities = A4 (So)
Rating Explanation	Minimal degree of safety and very high credit risk
Date	12.03.2013

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.

INFORMATION DENINED

Management Non-Co-operative. (Tel No. 91-22-67410000)

LOCATIONS

Registered Office :	C/O Britania Industries Limited, A-33, Lawrence Road Industrial Area, New Delhi – 110 035, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	manoj.pillai@goair.in
Website :	http://www.goair.in
Head/ Corporate Office :	1^st Floor, C-1, Wadia International Centre (WIC), Pandurang Budhkar Marg, Worli, Mumbai - 400 025, Maharashtra, India
Tel. No.:	91-22-67410000 (Board Line)
Fax No.:	91-22-67410001
Airport Offices :	Located at: · Ahmedabad · Bagdogra · Bengaluru · Chandigarh · Chennai · New Delhi · Goa · Guwahati · Jaipur · Jammu · Kochi · Kolkata · Leh, Jammu and Kashmir · Lucknow · Mumbai · Nagpur · Nanded · Patna · Port Blair · Pune · Ranchi · Srinagar

DIRECTORS

As on 14.09.2012

Name :	Mr. Jehangir Nusli Wadia
Designation :	Managing Director
Address :	Springs – I, Flat 3704, GD Ambedkar Marg, Naigaon, Mumbai – 400 014, Maharashtra, India
Date of Birth/Age :	06.07.1973
Date of Appointment :	29.04.2004
DIN No.:	00088831
PAN No.:	AAAPW0989N
Name :	Mr. Ness Nusli Wadia
Designation :	Director
Address :	Beach House, P. Balu Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	30.05.1971
Date of Appointment :	29.04.2004
DIN No.:	00036049
PAN No.:	AAAPW0814G
Name :	Mr. Nusli Nevile Wadia
Designation :	Director
Address :	Beach House, P. Balu Marg, Prabhadevi, Mumbai - 400 025, Maharashtra, India
Date of Birth/Age :	15.02.1944
Date of Appointment :	01.06.2004
DIN No.:	00015731
PAN No.:	AAAPW0990M
Name :	Ms. Vinita K. Bali
Designation :	Director
Address :	Flat No.1104, Tulip Prestige Exotica, Cunningham Crescent Road, Bangalore – 560 001, Karnataka, India
Date of Birth/Age :	11.11.1955
Date of Appointment :	24.08.2006
DIN No.:	00032940
PAN No.:	AFDPB1852R
Name :	Mr. Vijay Laxman Kelkar
Designation :	Director
Address :	A701, Blossom Boulevard, Plot No.421/2 South Main Road, Koregaon Park, Pune – 411 001, Maharashtra, India
Date of Birth/Age :	15.05.1942
Date of Appointment :	21.06.2011
DIN No.:	00011991
PAN No.:	ACSPK8324P
Name :	Mr. Ishaat R. Hussain
Designation :	Director
Address :	222-A NCPA Apartments, Nariman Point, Mumbai – 400 021, Maharashtra, India
Date of Birth/Age :	02.09.1947
Date of Appointment :	21.06.2011
DIN No.:	00027891
PAN No.:	AAVPH6348F
Name :	Mr. Apurva Shishir Diwanji
Designation :	Director
Address :	Wyoming Building, 5th Floor, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	17.01.1969
Date of Appointment :	21.06.2011
DIN No.:	00032072
PAN No.:	AECPD8099L
Name :	Mr. Ranendra Sen
Designation :	Director
Address :	A-42, IFS Apartment, Mayur Vihar, Phase – I, Delhi – 110091, India
Date of Birth/Age :	09.04.1944
Date of Appointment :	15.02.2012
DIN No.:	03043868
PAN No.:	ATXPS1539C

KEY EXECUTIVES

Name :	Mr. Manoj Rajan Pillai
Designation :	Company Secretary
Address :	B-404, Panchsheel CHS, Dr. E. Moses Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	15.01.1984
Date of Appointment :	01.08.2012
PAN No.:	AYEPP6866H

MAJOR SHAREHOLDERS

As on 14.09.2012

Names of Shareholders	No. of Shares
Jeh Nusli Wadia	727500
Ness Nusli Wadia	727500
Sea Wind Investment and Trading Company Limited, India	5000
Nidhivan Investments and Trading Company Private Limited, India	727400
Sahara Investments Private Limited, India	727500
Heera Holdings and Leasing Private Limited, India	727500
Go Investments and Trading Private Limited, India	66357520
R. Chandrasekharan Jointly Go Investments and Trading Private Limited, India	10
Jairaj Bham Jointly Go Investments and Trading Private Limited, India	10
Kaioz Nalladaru Jointly Go Investments and Trading Private Limited, India	10
N. Venkat Krishnan Jointly Go Investments and Trading Private Limited, India	10
Ashish Mehta Jointly Go Investments and Trading Private Limited, India	10
Tejash Rane Joint Go Investments and Trading Private Limited, India	10
Shankar Kanhere Jointly Go Investments and Trading Private Limited, India	10
Akash Seth Jointly Go Investments and Trading Private Limited, India	10
Total	70000000

Equity Share Break up (Percentage of Total Equity)

As on 14.09.2012

Category	Percentage
Bodies corporate	97.92
Directors or relatives of directors	2.08
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is managed as a single operating unit that provides air transportation.

Products :

Products Description	Item Code No.
Domestic Airlines Passenger and Cargo Services	88024000

Exports To :

No Export

Imports From :

No Import

Payment Terms :

Not Divulged

GENERAL INFORMATION

Supplier :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information denied by management

Bankers :

· The Jammu and Kashmir Bank Limited, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India

· Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, M.G. Road, Fort, Mumbai – 400 023, Maharashtra, India

· Axis Bank Limited, Royal Accord IV, Lokhandwala Complex, Andheri (West), Mumbai – 400 053, Maharashtra, India

· IDBI Bank Limited, 224-A, Mittal Court, A-Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India

· ICICI Bank Limited, ICICI Bank Towers, Corporate office, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

· Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, M.G. Road, Fort, Mumbai – 400 023, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Rupee Term Loans from others	3208.333	3097.000
Loan taken for vehicle	26.067	38.642
Short Term Borrowings
Loan repayable on demand from bank	1445.177	2445.662
Total	4679.577	5581.304

Note:

Long Term Borrowing

· Borrowings from Central Bank of India consist of one term-loan of Rs. 2125.000 Millions and two term-loans each of Rs. 1000.000 Millions. These term loans are secured by way of a first pari passu charge on all the current and moveable fixed assets, present and future, charge over the escrow receivables of the Company and collateral security by a mortgage on the property owned by a Group Company along with its corporate guarantee. Term-loan of Rs. 2125.000 Millions carries interest rate of BR+3% p.a. and is repayable in 20 equal quarterly installments of Rs. 125.000 Millions each starting from August 13, 2011. Term-loan of Rs. 1000.000 Millions carries interest rate of BR+3.5% p.a. and is repayable in 12 equal quarterly installments of Rs. 83.300 Millions each starting from June 14, 2012 and other term-loan of Rs. 1000.000 Millions carries interest rate of BR+3.5% p.a. and is repayable in 24 equal quarterly installments of Rs. 41.800 Millions each starting from October 05, 2012.

· Vehicle finance secured by hypothecation of vehicles, includes loans from Tata Motors Finance Limited, Tata Capital Limited and Reliance Capital Limited for seven vehicles purchased. These loans are payable in equated monthly installments ranging between Rs. 0.012 Million to Rs.0.171 Million over a period of 3-4 years at the interest rates ranging from 10.70% to 12.05%.

Banking Relations :	--
Financial Institutions :	Tata Capital Limited,One Forbes, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	Maneekji Wadia Building, 127, Mahatma Gandhi Road, Mumbai – 400023, Maharashtra, India
PAN No.:	AAAFK7554R
Entities over which key management personnel and their relatives exercise Significant influence :	· Bombay Dyeing and Manufacturing Company Limited · Virtual Education Network Private Limited · Go Holdings Private Limited · Go Engineering Private Limited · Go Training Private Limited · Go Cargo Private Limited · Go Airways Private Limited · Integrated Clinical Research Sciences Private Limited · Paradiso Entertainment Private Limited · Go Investments and Trading Private Limited · Trieste Trading Private Limited · Boyztoyz Trading Company Private Limited

CAPITAL STRUCTURE

As on 14.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
120000000	Equity Shares	Rs.10/- each	Rs.1200.000 Millions
50000000	Preference Shares	Rs.10/- each	Rs.500.000 Millions
	Total		Rs.1700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	700.000	700.000
(b) Reserves & Surplus	(6568.866)	(5231.650)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(5868.866)	(4531.650)
(3) Non-Current Liabilities
(a) long-term borrowings	5071.900	3635.642
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	226.450
(d) long-term provisions	28.750	20.765
Total Non-current Liabilities (3)	5100.650	3882.857
(4) Current Liabilities
(a) Short term borrowings	1445.177	2888.046
(b) Trade payables	3915.411	2314.103
(c) Other current liabilities	3364.224	2401.348
(d) Short-term provisions	8.174	5.673
Total Current Liabilities (4)	8732.986	7609.170
TOTAL	7964.770	6960.377
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	646.327	568.790
(ii) Intangible Assets	23.627	27.614
(iii) Capital work-in-progress	3179.562	1301.835
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.051	0.051
(c) Deferred tax assets (net)	3082.520	2585.294
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	575.995	458.035
Total Non-Current Assets	7508.082	4941.619
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	78.289	53.367
(c) Trade receivables	7.943	31.915
(d) Cash and cash equivalents	52.313	1316.104
(e) Short-term loans and advances	318.035	617.332
(f) Other current assets	0.108	0.040
Total Current Assets	456.688	2018.758
TOTAL	7964.770	6960.377

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		700.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(5832.112)
NETWORTH		(5132.112)
LOAN FUNDS
1] Secured Loans		3647.131
2] Unsecured Loans		3446.811
TOTAL BORROWING		7093.942
DEFERRED TAX LIABILITIES		0.000
TOTAL		1961.830
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		427.437
Capital work-in-progress		0.000
INVESTMENT		0.051
DEFERRED TAX ASSETS		2577.794
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.037
	Sundry Debtors	26.393
	Cash & Bank Balances	23.907
	Other Current Assets	0.000
	Loans & Advances	2283.671
Total Current Assets		2363.008
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	526.885
	Other Current Liabilities	2862.672
	Provisions	16.903
Total Current Liabilities		3406.460
Net Current Assets		(1043.452)
MISCELLANEOUS EXPENSES		0.000
TOTAL		1961.830

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	14610.991	12606.736	7519.619
		Other Income	95.027	118.233	769.604
		TOTAL	14706.018	12724.969	8289.223
Less	EXPENSES
		Employee benefit expenses	1336.028	1063.113
		Other Expenses	14034.581	10383.071
		Prior Period Items	122.329	(33.549)
		Extraordinary items	18.476	(135.278)
		TOTAL	15511.414	11277.357	8641.215
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(805.396)	1447.612	(351.992)
Less	FINANCIAL EXPENSES		960.992	802.253	870.233
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(1755.388)	645.359	(1222.225)
Less/ Add	DEPRECIATION/ AMORTISATION		67.812	48.916	18.766
	PROFIT/ (LOSS) BEFORE TAX		(1834.200)	596.443	(1240.991)
Less	TAX		(496.984)	(4.019)	(342.138)
	PROFIT/ (LOSS) AFTER TAX		(1337.216)	600.462	(898.853)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5231.650)	(5832.112)	(4933.259)
	BALANCE CARRIED TO THE B/S		(6568.866)	(5231.650)	(5832.112)
	EARNINGS IN FOREIGN CURRENCY
		Deferred incentive/leased subsidy & allowance	0.000	0.000	271.367
		Passenger Revenue Credit Cards	0.000	0.000	138.250
		Royalty, know-how, professional and Consultation fees	124.117	301.385	0.000
	TOTAL EARNINGS		124.117	301.385	409.617
	IMPORTS
		Raw Materials	4.172	1.395	0.000
		Components and spare parts	45.510	28.284	0.000
		Capital Goods	23.244	120.471	306.081
	TOTAL IMPORTS		72.926	150.150	306.081
	Earnings Per Share (Rs.)		(19.10)	8.58	(12.84)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(9.09)	4.72	(10.83)
Net Profit Margin (PBT/Sales)	(%)	(12.55)	4.73	(16.50)
Return on Total Assets (PBT/Total Assets}	(%)	(177.62)	28.08	(44.47)
Return on Investment (ROI) (PBT/Networth)		0.31	(0.13)	0.24
Debt Equity Ratio (Total Debt /Networth)		(1.11)	(1.44)	0.24
Current Ratio (Current Asset/Current Liability)		0.05	0.27	0.69

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
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
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	Yes
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

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Rupee Term Loan from bank	1837.500	500.000
Short Term Borrowings
Working capital loan from bank	0.000	442.384
Total	1837.500	942.384

Long Term Borrowings

a) Term-loan from Bank of India of Rs. 500.000 Millions carries interest rate of BR+3.25% p.a. and is repayable in four equal installments of Rs. 125.000 Millions each starting from July 03, 2012. This loan is collaterally secured by pledging share of two listed group companies held by private companies in the same group.

b) Term-loan from Indian Overseas Bank of Rs. 1000.000 Millions carries interest rate of BR+3% p.a. and is repayable in four tranches:

1. Four equal installments of Rs. 37.500 Millions each starting November 12, 2012,

2. Four equal installments of Rs. 25.000 Millions each starting from January 10, 2013,

3. Four equal installments of Rs. 25.000 Millions each starting from February 02, 2013 and

4. Four equal installments of Rs. 162.500 Millions each starting from February 06, 2013. This loan is collaterally secured by pledging share of three listed group companies held by companies in the same group.

c) Term-loan from Housing Development Finance Corporation of Rs. 1000.000 Millions carries interest rate of CPLR-3.75% p.a. and is repayable in four equal installments of Rs. 2500 Millions each starting from April 30, 2013. This loan is secured by a corporate guarantee of a company in the

Short Term Borrowings

a) Working Capital loan from Central Bank of India carries interest rate of BR+3% p.a.

b) Working capital loan from Axis Bank carries interest rate of BR+4% p.a. and is secured by first pari passu charge on current assets of the Company.

c) Working Capital loan from IDBI Bank Limited carries interest rate of BR+3.5% p.a. This loan is collaterally secured by pledging share of three listed group companies held by companies in the same group

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10284372	14/04/2011	366,897.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12138814
2	10284380	14/04/2011	366,897.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12139739
3	10284381	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12140406
4	10284383	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12140844
5	10284385	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12141149
6	10284386	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12141370
7	10284387	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12141677
8	10284389	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12142188
9	10284391	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12142261
10	10284393	14/04/2011	1,086,398.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12142337

* Date of charge modification

OPERATIONS AND OUTLOOK:

During the fiscal 2011-12 the Company has increased its fleet from 10 to 12 aircraft with the induction of one short term lease aircraft in the month of October 2011 and one new aircraft in the month January 2012. After the end of the Financial Year, the Company also inducted two additional aircraft in the months of April 2012 and July 2012 and redelivered the short term lease aircraft in the month of May 2012, making the total fleet size presently in operation at 13 aircraft. The Company has the youngest fleet in the Indian aviation industry with an average aircraft age of approximately 34 months in fiscal 2011-12. At the end of the Financial Year the Company connected 21 destinations across India. In May 2012, Chennai has been added as 22nd destination. Your Company is among the best rated in the industry in terms of on-time performance and in number of cancelled flights. Due to significant increase in aviation fuel prices, a consistently weak Rupee against the US dollar, and an overall insane competitive environment characterized by a persistent and fierce price war among bigger players in

the domestic airline market, the Company has incurred losses in the fiscal 2011-12. In particular, the additional cost borne by the Company due to fuel, net of the incremental activity, amounted to Rs. 2180.000 Millions. Weakness of the INR impacted mainly lease rentals and maintenance reserves with an additional negative contribution of Rs. 160.000 Millions in the fiscal 2011-12. However, at the end of the Fiscal Year 2011/12 a new and stronger trend in average fares has allowed a significant increase in passengers revenues and has allowed the Company to deliver profitable results for the 1st Quarter ended as on June 2012. In fact, Your Company recorded a 4.7% net profit on revenues, significantly outperforming the budget approved by the Board. Provided fuel cost does not increase further (Barrel = USD 110 and KL= Rs. 66,000) and the exchange rate INR/USD does not further deteriorate (above Rs. 54.50) the management expects to approach break even at total cost for the full Financial Year 2012/13 with a significant improvement in respect to the approved budget.

FIXED ASSETS:

· Leasehold Improvements

· Office Equipments

· Ground Handling Equipments

· Computer Equipments

· Furniture and Fixtures

· Vehicle on Finance Lenses

· Other Vehicles

· Ratable

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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. 66.57
UK Pound	1	Rs. 103.34
Euro	1	Rs. 88.16

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
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	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.