|
Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SINGAPORE AIRLINES LIMITED |
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Branch Office : |
Ground Floor,
Air India Building, Nariman Point, Mumbai – 400021, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
16.08.1972 |
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Capital Investment
/ Paid-up Capital : |
1856.1 [$ Million] |
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Legal Form : |
It is a Branch of a Foreign Register Company |
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Line of Business
: |
The principal activity of the company consists of passenger air
transportation. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is the one of the leading airlines in the world. It is a well established airline having a good track record. There
appears slight dip in profitability during the current year due to global
crisis. However, general financial position of the subject appears to be
strong. Liquidity position is good. Fundamental seems to be healthy. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
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 DECLINED BY
|
Name : |
Mr. Amit |
|
Designation : |
Finance Department |
|
Contact No.: |
91-22-22852477 |
|
Date : |
08.03.2013 |
LOCATIONS
|
Registered
Office/ Headquarters : |
25 Airline Road,
Airline House, Singapore 819829 |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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|
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|
Branch Office : |
Ground Floor,
Air India Building, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22852477 |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Reservation and
Ticketing Office : |
2nd Floor Setu Complex, S. P. Nagar Road, Off C. G. Road, Navrangpura, Ahmedabad - 380009, Gujarat, India |
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Tel. No.: |
91-79-30012828 |
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Fax No.: |
91-79-30012850 |
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E-Mail : |
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Airport/ Lost and
Found Office : |
Room Number 02, Office Ground Level, Sardar Vallabhbhai International (SVP), Airport Terminal – 2, Ahmedabad – 380003, Gujarat, India |
|
Tel. No.: |
91-79-22858116/ 8117 (SQ Office) / 22869237/ 9238 |
|
Fax No.: |
91-79-22866623 |
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Town Offices : |
Located At: ·
Delhi Kolkata Chennai Mumbai Bangalore Ahmedabad |
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Airport Offices
: |
Located at: ·
Delhi Kolkata Chennai Mumbai Bangalore |
DIRECTORS
AS ON 31.03.2012
|
Name: |
Stephen Lee Ching Yen |
|
Designation: |
Chairman |
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|
Name: |
William Fung Kwok Lun |
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Designation: |
Director |
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|
Name: |
Goh Choon Phong |
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Designation: |
Director |
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|
Name: |
Euleen Goh Yiu Kiang |
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Designation: |
Director |
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|
Name: |
David Michael Gonski |
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Designation: |
Director |
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|
Name: |
Christina Ong |
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Designation: |
Director |
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|
|
Name: |
Helmut Gunter Wilhelm Panke |
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Designation: |
Director |
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|
Name: |
Lucien Wong Yuen Kuai |
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Designation: |
Director |
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|
|
Name: |
James Koh Cher Siang (until 31 August 2011) |
|
Designation: |
Director |
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|
|
|
Name: |
Jackson Peter Tai (from 1 September 2011) |
|
Designation: |
Director |
KEY EXECUTIVES
|
Name: |
Ethel Tan |
|
Designation: |
Company
Secretary |
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|
|
|
Name: |
Mr. Amit |
|
Designation: |
Finance Department |
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BOARD COMMITTEES: |
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|
Board Executive Committee: |
Board Executive
Committee – Chairman Goh Choon Phong Euleen Goh Yiu Kiang James Koh Cher Siang (until
31 August 2011) Lucien Wong Yuen Kuai (from 1
September 2011) |
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|
|
|
Board Audit Committee: |
Euleen Goh Yiu Kiang - Chairperson William Fung Kwok Lun David Michael Gonski Lucien Wong Yuen Kuai (until
31 August 2011) Jackson Peter Tai (from 1
September 2011) |
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|
|
|
Board
Compensation and Industrial Relations Committee: |
Stephen Lee Ching Yen - Chairman David Michael Gonski Helmut Gunter Wilhelm Panke James Koh Cher Siang (until
31 August 2011) Jackson Peter Tai (from 1
September 2011) |
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|
|
|
Board Nominating Committee: |
Lucien Wong Yuen Kuai - Chairman Stephen Lee Ching Yen Christina Ong |
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|
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Board Safety and Risk Committee: |
James Koh Cher Siang - (until
31 August 2011)- Chairman Helmut Gunter Wilhelm Panke (from
1 September 2011) Christina Ong Helmut Gunter Wilhelm Panke (until
31 August 2011) Lucien Wong Yuen Kuai (from 1
September 2011) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
The principal activity of the company consists of passenger air
transportation. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Available |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Ernst and Young
LLP Public
Accountants and Certified Public Accountants |
|
Address : |
One Raffles Quay North Tower #18-01 Singapore 048583 |
CAPITAL STRUCTURE
AS ON 31.03.2012
|
Particulars |
Share capital |
Treasury shares |
Capital reserve |
Share-Based Compensation reserve |
Fair value reserve |
General reserve |
Total |
|
Balance at 1 April 2011 |
1,832.4 |
(43.0) |
2.5 |
138.5 |
(94.2) |
12,298.9 |
14,135.1 |
|
Comprehensive income |
|||||||
|
Net fair value changes on available-for-sale
assets |
-- |
-- |
-- |
-- |
(0.3) |
-- |
(0.3) |
|
Net fair value changes on cash flow hedges |
-- |
-- |
-- |
-- |
84.7 |
-- |
84.7 |
|
Other
comprehensive income for the financial
year |
-- |
-- |
-- |
-- |
84.4 |
-- |
84.4 |
|
Profit for the
financial year |
-- |
-- |
-- |
-- |
-- |
390.2 |
390.2 |
|
Total comprehensive income for the
financial year, net of tax |
-- |
-- |
-- |
-- |
84.4 |
390.2 |
474.6 |
|
\Transactions with owners, recorded directly in
equity |
|||||||
|
Share-based
compensation expense |
-- |
-- |
-- |
14.7 |
-- |
-- |
14.7 |
|
Share options
exercised |
23.7 |
-- |
-- |
(4.1) |
-- |
-- |
19.6 |
|
Share options
lapsed |
-- |
-- |
-- |
(1.5) |
-- |
1.5 |
-- |
|
Purchase of
treasury shares |
-- |
(272.1) |
-- |
-- |
-- |
-- |
(272.1) |
|
Treasury shares reissued pursuant to equity compensation
plans |
-- |
56.7 |
(10.6) |
(13.9) |
-- |
-- |
32.2 |
|
Dividends |
-- |
-- |
-- |
-- |
-- |
(1557.2) |
(1557.2) |
|
Total
transactions with owners |
23.70 |
(215.4) |
(10.6) |
(4.8) |
-- |
(1555.7) |
(1762.8) |
|
Balance at 31 March 2012 |
1856.10 |
(258.4) |
(8.1) |
133.7 |
(9.8) |
111344.4 |
12846.9 |
FINANCIAL DATA
[All figures are
in $ Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT |
|
|
|
|
Share Capital |
1856.1 |
1832.4 |
1750.6 |
|
Other Reserves |
11249.2 |
12345.7 |
2.5 |
|
Share-Based Compensation Reserve |
0.0 |
0.0 |
147.9 |
|
General Reserve |
0.0 |
0.0 |
11668.5 |
|
Fair Value Reserve |
0.0 |
0.0 |
(85.3) |
|
Treasury Shares |
(258.4) |
(43.0) |
(0.9) |
|
TOTAL |
12846.9 |
14135.1 |
13483.3 |
|
|
|
|
|
|
Total Equity |
12846.9 |
14135.1 |
13483.3 |
|
Deferred Account |
199.9 |
330.7 |
443.9 |
|
Deferred Taxation |
1694.8 |
1814.1 |
1945.6 |
|
Long-Term
Liabilities |
807.9 |
803.4 |
900.0 |
|
Provisions |
259.1 |
162.0 |
133.1 |
|
|
|
|
|
|
TOTAL |
15808.6 |
17245.3 |
16905.9 |
|
|
|
|
|
|
REPRESENTED BY: |
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENTS |
|
|
|
|
Aircraft, Spares and Spare Engines |
9223.9 |
9479.1 |
10739.5 |
|
Land and Building |
79.4 |
92.5 |
105.8 |
|
Others |
1525.0 |
1805.8 |
1520.1 |
|
Intangible Assets |
111.2 |
90.8 |
55.0 |
|
Subsidiary Companies |
2038.8 |
1755.8 |
1805.8 |
|
Associated Companies |
1701.1 |
1715.7 |
1715.7 |
|
Joint Venture Companies |
0.0 |
0.0 |
0.0 |
|
Long-Term Investments |
293.7 |
18.8 |
18.8 |
|
Other Receivables |
215.6
|
119.6 |
114.4 |
|
Deferred Account |
33.7
|
0.0 |
0.0 |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Inventories |
221.7 |
253.9 |
309.8 |
|
Trade Debtors |
870.2 |
913.6 |
958.0 |
|
Deposits and Other Debtors |
26.7 |
33.5 |
41.9 |
|
Prepayments |
74.8 |
89.5 |
82.0 |
|
Amounts Owing by Subsidiary Companies |
195.2 |
194.0 |
141.0 |
|
Investments |
565.2 |
339.9 |
80.0 |
|
Derivative Assets |
57.4 |
63.1 |
0.0 |
|
Cash and Bank Balance |
4450.7 |
7217.8 |
4260.7 |
|
TOTAL |
6461.9 |
9105.3 |
5873.4 |
|
|
|
|
|
|
LESS: CURRENT
LIABILITIES |
|
|
|
|
Sales in Advance of Carriage |
1409.5 |
1421.1 |
1301.9 |
|
Deferred Revenue |
497.0 |
445.1 |
460.1 |
|
Current Tax Payable |
186.0 |
370.3 |
96.5 |
|
Trade and Other Creditors |
2210.2 |
2161.8 |
1876.6 |
|
Amounts Owing to Subsidiary Companies |
1525.2 |
1529.0 |
1298.0 |
|
Notes Payable |
0.0 |
900.0 |
0.0 |
|
Provisions |
35.1 |
62.3 |
9.5 |
|
Derivatives Liabilities |
12.7 |
48.5 |
0.0 |
|
TOTAL |
5875.7 |
6938.1 |
5042.6 |
|
NET CURRENT ASSETS |
586.2 |
2167.2 |
830.8 |
|
|
|
|
|
|
TOTAL |
15808.6 |
17245.3 |
16905.9 |
REVENUE STATEMENT
|
PARTICULAR |
31.03.2012 |
31.03.2011 |
|
TOTAL REVENUE |
|
|
|
External Revenue
|
11582.3 |
11227.0 |
|
Inter-Segment
Revenue |
1234.9 |
1178.5 |
|
TOTAL |
12817.2 |
12405.5 |
|
|
|
|
|
RESULTS |
|
|
|
Segment Result |
279.1 |
972.8 |
|
|
|
|
|
Finance Charges |
(65.9) |
(58.8) |
|
Interest Income |
50.1 |
36.8 |
|
(Loss)/Surplus
on Disposal of Aircraft, Spares and Spare Engines |
(28.9) |
103.1 |
|
Dividend From
Subsidiary Companies |
266.4 |
173.0 |
|
Dividends From
Long-Term Investments |
4.4 |
11.3 |
|
Other
Non-Operating Items |
(13.4) |
81.5 |
|
Share of Profits
of Joint Venture Companies |
0.0 |
0.0 |
|
Share of
(Losses)/Profits of Associated Companies |
(29.3) |
22.3 |
|
Exceptional Items
|
(4.1) |
0.00 |
|
Taxation |
(45.2) |
(210.0) |
|
|
|
|
|
Profit/(Loss)
For the Financial Year |
413.2 |
1132.0 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Trade and Other Creditors |
2210.2 |
2161.8 |
1876.6 |
|
|
|
|
|
|
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
two years |
Yes |
|
12] |
Profitability for last
two 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 |
No |
|
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 |
No |
|
24] |
Banking facility details |
No |
|
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 |
No |
|
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 |
No |
OPERATING REVIEW
THE YEAR IN REVIEW
The Singapore
Airlines Group achieved a net profit attributable to equity holders of $336
million in the financial year ended 31 March 2012.
The first nine
months of the year in review saw the Group record weaker operating results
amidst a climate of economic uncertainty and weak consumer confidence, with
both passenger and cargo yields coming under pressure. The Group earned a net
profit of $374 million during the period. The last quarter of the year saw a
further decline in performance in the face of persistently high fuel prices,
with the Group recording a net loss of $38 million.
Fuel prices are
expected to remain high going forward, which will continue to impact the
Group’s operating performance. An intensifying competitive landscape has
necessitated various promotional activities, which have weighed on yields.
Major world events also continue to have an impact on the Airline’s operations.
Despite the
continuing difficulties in the operating environment, the Airline will maintain
a long-term approach to product and service excellence, by introducing new
in-flight offerings and cabin renewal programmes. The Group is also committed
to optimizing operating efficiency and containing costs.
The Airline has
embarked on several strategic initiatives to expand its network and respond
more aggressively to competition. In addition to several new code share
agreements, the year in review saw the launch of a groundbreaking alliance with
Virgin Australia, with the aim of connecting Singapore Airlines’ extensive
international network more seamlessly with Virgin Australia’s wide range of
Australian and Pacific destinations. The Airline also announced the
establishment of Scoot, a wholly owned, independently operated and separately
managed low-fare airline, to cater to the growing demand among consumers for
low-fare travel.
NETWORK
The year in saw
strategic capacity management of Singapore Airlines’ global network to meet the
changes in demand patterns.
The Airline increased
frequency to points in Southeast Asia, North Asia, the Indian subcontinent and
other markets during the Northern Winter operating season as a result of
continued growth in travel demand. As demand recovered for travel to and from
Japan, services between Singapore and Tokyo Haneda doubled to twice daily.
Frequency on the Singapore-Osaka route also increased from 10 to 11 flights per
week.
Services to
Guangzhou doubled to 14 flights per week from seven, catering to increased
demand on the route. The Airbus A380 continued to extend its reach during the
year in. Los Angeles, Frankfurt and New York joined the A380 network as the
eighth, ninth and tenth destinations served by the superjumbo. Closer to home,
in the Southeast Asia region, a fifth daily Bangkok service was added to the
network, proving the resilience of the route.
Towards the end of
the financial year from Northern Summer 2012, the Airline made some frequency
adjustments to match capacity to prevailing demand for travel. To serve the
highly popular destination, frequency to the Maldives’ capital Male increased
to 12 flights per week from the previous 10 flights. It further increased to
twice daily flights offering customers a choice of daily day and night flights
out of Singapore from 30 April 2012.
An additional
daily service was introduced to Seoul, increasing frequency to four flights per
day from three, including one flight that continues to San Francisco. Services
to Mumbai were also increased to 19 per week from 17.
In Southwest Pacific,
frequency to points in Australia was increased. Adelaide services were boosted
to 10 times per week from seven, while Brisbane and Perth would each be served
21 times per week, from 19 and 18 respectively. Frequency reductions were also
implemented in select markets to match travel demand.
Singapore-Moscow-Houston
services were reduced to five times weekly and Singapore-Munich-Manchester
services were reduced to six times weekly from daily.
The
Singapore-Taipei route also saw a reduction from 18 to 14 services per week.
Demand patterns
will continue to be closely monitored and changes made to the Airline’s network
when necessary.
FLEET MANAGEMENT
The year in saw
the delivery of an additional five Airbus A380-800 aircraft, bringing the total
to 16, with three more on order and a further six on option.
Another six Boeing
777-300s completed a cabin refresh programme while four B777-300 and three
B777-200 aircraft left the operating fleet. Two of these B777-200s were
transferred to new subsidiary Scoot.
Six B747-400s were
progressively phased out during the year as they bade a fond farewell to the
“Queen of the Skies” from our fleet.
In their continual
pursuit to offer a young and modern fleet to their customers, Singapore
Airlines also announced new aircraft orders for 15 Airbus A330-300s on
operating leases and purchase of eight Boeing 777-300ER aircraft. In addition
to the 20 Airbus A350-900s and 20 Boeing 787-9s on order, our total firm
aircraft orders stood at 66 aircraft as at 31 March 2012.
The Singapore
Airlines passenger aircraft fleet, as at 31 March 2012, comprised 100 aircraft,
with an average age of six years and two months.
SIA Cargo’s fleet
as at 31 March 2012 comprised 13 Boeing 747-400 freighters, with an average age
of 11 years and three months.
The fleet of Silk
Air as at 31 March 2012 comprised 14 Airbus A320s and six Airbus A319s, with an
average age of six years and three months.
GENERAL
The company is a
limited liability company incorporated in the Republic of Singapore which is
also the place of domicile. The Company is listed on the Singapore Exchange
Securities Trading Limited (“SGX-ST”) and is a subsidiary company of Temasek
Holdings (Private) Limited, incorporated in the Republic of Singapore.
The registered
office of the Company is at Airline House, 25 Airline Road, Singapore 819829.
The principal
activities of the Group consist of passenger and cargo air transportation,
engineering services, training of pilots, air charters and tour wholesaling and
related activities. The principal activity of the Company consists of passenger
air transportation.
The financial
statements for the financial year ended 31 March 2012 were authorised for issue
in accordance with a resolution of the Board of Directors on 9 May 2012.
SUBSIDIARY, ASSOCIATED AND JOINT VENTURE COMPANIES
In the Company’s
separate financial statements, investments in subsidiary and associated
companies are accounted for at cost less accumulated impairment losses.
A subsidiary
company is defined as an entity over which the Group has the power to govern
the financial and operating policies so as to obtain benefits from its
activities, generally accompanied by a shareholding giving rise to the majority
of the voting rights.
An associated
company is defined as an entity, not being a subsidiary company or joint
venture company, in which the Group has significant influence, but not control,
generally accompanied by a shareholding giving rise to not less than 20% of the
voting rights.
The Group’s
investments in associated companies are accounted for using the equity method.
Under the equity method, the investment in associated company is measured in
the statement of financial position at cost plus postacquisition changes in the
Group’s share of net assets of the associated company. Goodwill relating to an
associated company is included in the carrying amount of the investment and is
neither amortised nor tested individually for impairment. Any excess of the
Group’s share of the net fair value of the associated company’s identifiable
assets, liabilities and contingent liabilities over the cost of investment is
deducted from the carrying amount of the investment and is recognised as income
as part of the Group’s share of profit or loss of the associated company in the
period in which the investment is acquired.
The profit or loss
reflects the share of the results of operations of the associated company.
Where there has been a change recognised in other comprehensive income by the associated
company, the Group recognises its share of such changes in other comprehensive
income. Unrealised gains and losses resulting from transactions between the
Group and the associated company are eliminated to the extent of its interest
in the associated company.
The Group’s share
of profit or loss of its associated company is shown on the face of the profit
and loss account. When the Group’s share of losses in an associated company
equals or exceeds its interest in the associated company, the Group does not
recognise further losses, unless it has incurred obligations or made payments
on behalf of the associated company.
After application
of the equity method, the Group determines whether it is necessary to recognise
an additional impairment loss on the Group’s investment in its associated
companies. The Group determines at the end of each reporting period whether
there is any objective evidence that the investment in the associated company
is impaired.
If this is the
case, the Group calculates the amount of impairment as the difference between
the recoverable amount of the associated company and its carrying value and
recognises the amount in the profit and loss account.
A joint venture
company is a contractual arrangement whereby two or more parties undertake an
economic activity that is subject to joint control, where the strategic
financial and operating decisions relating to the activity require the
unanimous consent of the parties sharing control.
The Group’s share
of the results of the joint venture companies is recognised in the consolidated
financial statements under the equity method on the same basis as associated
companies.
The most recently
available audited financial statements of the associated and joint venture
companies are used by the Group in applying the equity method. Where the dates
of the audited financial statements used are not co-terminous with those of the
Group, the share of results is arrived at from the last audited financial
statements available and unaudited management financial statements to the end
of the accounting period. Where necessary, adjustments are made to bring the
accounting policies in line with those of the Group.
BUSINESS SEGMENT
For management
purposes, the Group is organised into operating segments based on the nature of
the services provided which are independently managed by the respective segment
managers responsible for the performance of the respective segments under their
charge. The segment managers report directly to the management of the Company
who regularly review the segment results in order to allocate resources to the
segments and to assess the segment performance. The significant business
segments of the Group are airline operations, engineering services and cargo
operations.
GEOGRAPHICAL SEGMENT
The analysis of
revenue by area of original sale from airline operations is derived by
allocating revenue to the area in which the sale was made. Revenue from other
operations, which consist principally of engineering services and cargo operations,
is derived in East Asia and therefore, is not shown.
Assets, which
consist principally of flight and ground equipment, support the entire
worldwide transportation system, and are mainly located in Singapore. An
analysis of assets and capital expenditure of the Group by geographical
distribution has therefore not been included.
WEBSITE DETAILS
PRESS RELEASE
SINGAPORE AIRLINES
EXPLORES END TO TROUBLED VIRGIN INVESTMENT
HONG KONG—When Richard Branson sold a 49% stake in Virgin Atlantic Airways Limited to Singapore Airlines Limited in 1999, the British billionaire described the tie-up as a "marriage made in heaven," with hopes that the alliance would offer customers a much wider choice of destinations.
But the relationship never quite blossomed the way both partners envisioned and now looks set to end after 13 years. Singapore Airlines said Monday that it was in talks to sell its investment in Virgin Atlantic, a move that would free the premium Asian carrier from one of its most disappointing ventures. Mr. Branson's Virgin Group Holdings Limited owns the rest of London-based Virgin Atlantic.
"It was pretty clear for a long time that the partnership didn't go deep enough," said Timothy Bacchus, head of transportation research at CCB International Securities.
Delta Air Lines Inc. has approached the Singapore flag carrier to discuss buying its Virgin Atlantic stake, with no certainty the talks would succeed, people familiar with the situation said.
Singapore Airlines said it was in discussions with "interested parties" on a possible sale, but noted the talks "may or may not result in a transaction." The airline's shares ended flat Monday at 10.71 Singapore dollars (US$8.78).
Delta and Virgin Atlantic declined to comment.
Singapore Airlines, frustrated over its lack of involvement in Virgin Atlantic despite the big stake, has been considering the sale for several years and has held talks with airlines, according to analysts and industry executives. But interest was muted because of a weak aviation market since the global financial crisis, they said.
Heard on the Street
Heathrow Would Fill Big Hole for Delta
Singapore Airlines Is Better Off Closer to Home
Delta Descends on Heathrow
With its initial investment in Virgin Atlantic having been written down long ago, cash from the sale could help Singapore Airlines fund a substantial fleet expansion. In October the airline ordered 25 new Airbus aircraft, valued at US$7.5 billion at list prices. It also has 20 Boeing Co. 787 Dreamliners on order for the airline's new budget carrier unit, Scoot.
"This is definitely good news for Singapore Airlines," said Kelvin Lau, an analyst at Daiwa Research based in Hong Kong. The investment "didn't really deliver what the airline was looking for and hasn't been really been financially performing."
Singapore Airlines paid Ł600.3 million (US$961.1 million) for the stake in Virgin Atlantic and was criticized by financial analysts for paying too much for a share in the closely held airline. Cooperation between the carriers largely has been limited to code-sharing agreements and reciprocal recognition of frequent-flier miles—arrangements that Singapore Airlines also has with nearly 20 other airlines. Virgin Atlantic doesn't fly to Singapore.
Though it was unclear what prevented further cooperation between Singapore Airlines and Virgin Atlantic, some analysts said divergent markets could have been partly to blame. Virgin Atlantic was prominent in trans-Atlantic routes, while Singapore Airlines was strong on long-distance and regional flights from its home city.
Singapore Airlines had hoped the investment would give it rights to fly on the important London-New York route. Those plans, however, never materialized.
Also, Virgin Atlantic's financial results have been dismal. Though it posted operating losses for only two of the last five fiscal years, the total losses far exceeded its earnings for the period.
As a result, analysts expect that Virgin Atlantic will be valued at far less than it was when Singapore Airlines bought the stake. Specific estimates were difficult to assemble, however, because the unlisted U.K. carrier doesn't release detailed financial statements.
Singapore Airlines meanwhile has been hurt by high fuel prices and the downturn in first- and business-class traffic, reporting a 54% decline in net profit for the quarter through September. It plans to cease nonstop flights to Los Angeles and Newark, N.J., at the end of next year because of high operating costs, marking the end of the world's two longest distance commercial flights. Meanwhile, competition with thriving low-cost carriers is putting pressure on ticket prices on short regional flights.
The relationship between Singapore Airlines and Virgin Group also has been rocky at times. Singapore Airlines with its investment acquired the right to veto the use of the Virgin brand on other international airlines. Without the Singapore Company’s consent, Mr. Branson had been unable to use the Virgin brand on new international ventures operating out of Australia.
The ice finally broke last year when Virgin Australia Holdings Limited, of which Virgin Group owns 26%, entered a wide-ranging alliance with Singapore Airlines involving coordinated schedules, code sharing and marketing ties. Virgin Group's international ventures also were folded into the Virgin Australia brand. Singapore Airlines in October bought a 10% stake in Virgin Australia.
SINGAPORE AIRLINES
LINKS WITH STAR ALLIANCE PARTNER AEGEAN AIRLINES
20th Nov 2012
From December Singapore Airlines customers will be able to fly to the Greek cities of Athens and Thessaloniki through a code-share agreement with Star Alliance partner Aegean Airlines.
Under the agreement, SIA will add its ‘SQ’ code to Aegean-operated flights serving the Greek capital Athens from Frankfurt, London, Milan and Munich, as well as to flights serving Greece’s second-largest city Thessaloniki from Frankfurt and Munich.
On a reciprocal basis, Aegean will add its ‘A3’ code to SIA-operated flights serving Singapore from Frankfurt, Milan and Munich, and flights beyond Singapore to Melbourne and Sydney. Aegean’s code-share on SIA-operated flights will commence once regulatory approvals have been obtained.
“This new code-share arrangement with our Star Alliance partner Aegean Airlines will provide our customers convenient connections to Greece and broaden our network for both business and leisure travellers,” said Singapore Airlines acting senior vice president sales and marketing, Chin Yau Seng.
Tickets for the code-share flights are now open for sale, for travel from December 1st 2012.
TOURISM AUSTRALIA AND
SINGAPORE AIRLINES JOIN FORCES
5th Feb 2013
Tourism Australia and Singapore Airlines have partnered on a national advertising campaign inviting British holidaymakers to experience Australia for their next long haul trip.
The UK-wide campaign, which runs from February 7th to March 7th 2013, uses TA’s ‘There’s nothing like Australia’ global creative and includes multi-channel TV and online advertising.
Costing close to Ł1 million, each execution directs consumers to a new website.
The TV advertisement is a 30 second spot that will reach 71 per cent of the targeted leisure audience.
The film highlights why there’s nothing like an Australian holiday and showcases the multi award-winning service that comes with flying in the highest quality, comfort and style onboard Singapore Airlines.
Rodney Harrex, Tourism Australia regional general manager UK/Northern Europe commented: “We are delighted to be working with Singapore Airlines to show British holidaymakers why there’s nothing like Australia.
“The advertising creative showcases our wonderful wildlife, incredible coastal experiences and our fantastic food and wine – all experiences we know motivate UK travellers to make a booking.”
To support the latest campaign, Singapore Airlines is offering a range of great value fares to each of its Australian destinations.
Available for travel in both business and economy5, customers will also benefit from a free airport voucher6 and the Singapore Boarding Pass Privileges Programme7, ensuring the Singapore Airlines Changi Airport experience remains the best value for those making the trip Down Under.
SIA DEEPENS COMMITMENT
TO AUSTRALIA
22 November 2012 - Singapore Airlines has signed agreements with six tourism organisations in Australia in line with the Airline’s ongoing efforts to promote tourism to the country. The agreements are for a period of between two and four years, with the total investment for the current financial year amounting to more than A$5 million.
New agreements were signed between July and October with the South Australia Tourism Commission and Destination New South Wales, while existing agreements with Tourism Australia, Tourism Queensland, Tourism Victoria and Tourism Western Australia were expanded to increase their value and include new markets. Key markets covered under the agreements include selected countries in Europe and Asia including the UK, Germany, India, Indonesia and Singapore, among others.
Under the partnerships, Singapore Airlines and the tourism organisations are jointly funding marketing campaigns and activities, including mounting advertising campaigns and organising familiarisation visits for travel agents and media, with the aim of actively promoting tourism to the different states in Australia.
Singapore Airlines has been serving Australia for 45 years and continues to expand capacity to the country. Services between Singapore and Adelaide were recently increased to 10 flights per week from seven, while a fourth daily service has been introduced to Perth, up from three. The Airbus A380 superjumbo is also being used for two of the three daily flights to Melbourne, up from one, and for two of the four daily flights to Sydney.
“Australia has always been an important market for Singapore Airlines, and these partnerships serve to strengthen our ties with the country’s tourism organisations,” said Singapore Airlines Acting Senior Vice President Sales and Marketing, Mr Chin Yau Seng.
“Through our extensive global network we are continuing to promote travel to Australia, enabling visitors to discover the wide variety of experiences that the country offers, from rugged natural wonders to cutting-edge lifestyle offerings.”
Singapore Airlines operates 108 flights a week to five Australian cities, namely Adelaide, Brisbane, Melbourne, Perth and Sydney, while subsidiary SilkAir serves Darwin with four weekly flights. Including codeshare services through a comprehensive alliance with Virgin Australia, SIA offers customers access to 32 Australian cities.
SINGAPORE AIRLINES
EXTENDS DISTRIBUTION AGREEMENT WITH SABRE
Sabre to increase marketing
campaigns for airline
SINGAPORE, Feb. 12, 2013 /PRNewswire/ -- Singapore Airlines has renewed its full-content distribution agreement with Sabre Travel Network, meaning all Sabre-connected travel agents will continue to have access to all Singapore Airlines' fares, schedules and inventory.
"Sabre is very pleased to extend our distribution agreement with Singapore Airlines and to further strengthen our existing strong and long-term relationship. We look forward to implementing this new distribution agreement, which will support Singapore Airlines strategies and its position as a premier full-service airline," said Hans Belle , vice president and general manager, Asia Pacific, Sabre Travel Network.
With this agreement, Sabre will also support Singapore Airlines' growth through increased global distribution system (GDS) media marketing by building awareness through promotions and campaigns via the Sabre GDS.
About Sabre Travel Network
Sabre Travel Network®
provides technology to the travel industry. It operates the world's largest
travel marketplace, connecting travel buyers and sellers through the Sabre
global distribution system (GDS). Its innovative technology connects 350,000
travel agents to more than 400 airlines, 100,000 hotels, 25 car rental brands,
50 rail providers, 13 cruise lines and other global travel suppliers. More than
$100 billion of travel is purchased through this channel
annually.
Sabre Travel Network is part of Sabre Holdings®, a global travel technology company serving the world's largest industry- travel and tourism. For more information please visit: www.sabretravelnetwork.com.
VIRGIN AMERICA,
SINGAPORE AIRLINES LAUNCH PARTNERSHIP
Reuters – Thu, Dec 13,
2012
(Reuters) - U.S.
carrier Virgin
America said on
Thursday it reached a code-share agreement with Singapore Airlines that will give passengers more travel
options.
Under code-sharing agreements, an airline sells seats on another carrier's flights as if they were its own. Virgin America, based in San Francisco, said Singapore Airlines will code-share on select flights.
Virgin America, a U.S.-controlled carrier in which Richard Branson's Virgin Group is a minority shareholder, said the deal will allow it to connect travelers to more destinations across continents.
This week, Singapore Airlines agreed to sell its entire 49 percent stake in Branson's British carrier Virgin Atlantic to Delta Air Lines for $360 million. That deal, which is subject to regulatory approval, would create a joint venture that would expand Delta's access to London's Heathrow Airport, a key business market.
(Reporting by Karen Jacobs; Editing by Tim Dobbyn)
SINGAPORE AIR TO CUT
76 PILOTS FROM PAYROLL
SINGAPORE |
SINGAPORE (Reuters) - Singapore Airlines Limited said on Wednesday it will cut 76 pilots from its payroll by the end of June as part of cost-saving measures.
The pilots, who are employed on fixed-term contracts, are being let go before the end of their contracts, SIA said in a statement. SIA currently employs around 2,300 pilots.
"Singapore Airlines currently has a surplus of pilots to its operational requirements as the global financial crisis of 2009-10 had resulted in excess capacity and slower-than-expected growth," the Singapore flag carrier said.
The airline had previously suspended cadet pilot recruitment and asked pilots to take voluntary unpaid leave.
The airline did not release financial details of the cuts. (Reporting by Kevin Lim)
DELTA TO BUY VIRGIN
ATLANTIC STAKE FROM SINGAPORE AIRLINES
11 December 2012 last updated at 22:03
GMT
Delta Air Lines has agreed a deal to buy Singapore Airlines' 49% stake in Virgin Atlantic for $360m (Ł224m).
Virgin Group and Sir Richard Branson will retain their 51% shareholding, and the Virgin brand will remain in place, the new partners said in a joint statement.
The deal is subject to regulatory approval in the US and Europe.
Investors in Delta shrugged off any concerns over that and closed up 5.1% in New York trading.
It follows a spat between Sir Richard and Willie Walsh, boss of BA-owner International Airlines Group, over the future of Virgin Atlantic.
Earlier, Mr Walsh offered to wager a "knee in the groin" in a bet with Sir Richard over whether the Virgin brand would still be around in five years.
He was responding to a Ł1m bet offered by Sir Richard on Monday.
'Exciting day'
Virgin and Delta said the deal would allow them to "overcome slot constraints" and offer more flights from Heathrow.
The carriers will operate 31 peak-day round trips between the UK and North America.
"Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the UK, particularly on the New York-London route," said Delta boss Richard Anderson.
Sir Richard said it was an "exciting day" in Virgin's history.
"It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business."
Singapore Airlines says it is selling its stake, which it has owned since 1999, because of increased competition in its local market, where it wants to keep its focus.
Loizos Heracleous, professor of strategy and organisation at Warwick Business School, said the airline had always faced this issue and that the move really reflected Singapore Airline's disappointment with its investment.
"Singapore Airlines has made it known years ago that it was considering options with respect to its Virgin stake. Virgin Atlantic has not been very profitable, posting a loss for the most recent financial year and slim returns in the years where it did make profits.
Singapore Airlines has itself launched a low-cost carrier, Scoot, and has been putting money into its regional service, SilkAir.
SIA INVESTS IN
NEXT-GENERATION IN-FLIGHT ENTERTAINMENT SYSTEMS
12 September 2012 - Singapore Airlines has signed a major agreement with Panasonic Avionics for advanced in-flight entertainment and communications (IFEC) systems for more than 40 new aircraft on firm order with Airbus and Boeing.
The agreement is valued at nearly US$400 million, based on the list prices of the systems and spares.
Under the agreement, Panasonic Avionics will supply IFEC systems for 20 Airbus A350s due for delivery from 2014, as well as for 15 more Airbus A330-300 and eight more Boeing 777-300ER aircraft, deliveries of which are due to begin next year.
Singapore Airlines will be the launch customer for Panasonic Avionics’ next-generation eX3 system for the A350s, as well as the first to deliver eX3 features on the B777-300ERs. In addition, SIA’s eX3 system will be the first to offer Panasonic’s Global Communications Suite on the A350s, which has the capability to provide broadband Internet services to passenger devices and the seat-back, mobile phone services, as well as a global live television service.
The eX3 is Panasonic’s most advanced IFEC system which will offer the latest video screen technology and touch-screen handsets in all classes of travel, powering the Airline’s award-winning KrisWorld entertainment system. Customers will experience higher levels of personalisation with KrisWorld providing intelligent content recommendations based on passenger ratings and preferences. Customers can expect the latest games and applications, an e-Library containing newspapers and magazines, social networking functions, as well as an innovative new touch-screen graphical user interface.
“SIA has always been a leader in providing the best in-flight entertainment to our customers but we need to constantly innovate to stay ahead of the competition. The contract with Panasonic Avionics will help us do just that,” said SIA Senior Vice President Product and Services, Mr Tan Pee Teck.
Panasonic Avionics CEO, Mr. Paul Margis, added: “For many years, Singapore Airlines has been an important and valued customer for Panasonic, and we are honoured to once again have the opportunity to partner with one of the world’s leading pioneers in IFEC.”
Ahead of the introduction of the new systems, enhancements are planned for existing KrisWorld systems on SIA’s aircraft. These will include a wider programme selection, new and exclusive video games, as well as possible hardware upgrades.
The newly-signed contracts are part of a major investment programme to enhance the Airline’s IFE and connectivity offerings. Last week SIA formally introduced in-flight connectivity services as part of a separate US$50 million investment. Under this programme the Airline’s A340-500, A380-800 and B777-300ER aircraft are being equipped with wireless Internet and mobile data services over two years, enabling customers to stay connected even at 35,000ft. Fourteen aircraft have been equipped to date.
ABOUT KRISWORLD
KrisWorld, Singapore Airlines’ award-winning in-flight entertainment system, is currently powered by eX2 technology from Panasonic Avionics. The eX2 system is fitted on the Airline’s A330-300, A340-500, A380-800 and B777-300ER aircraft.
It offers more than 1,000 on-demand entertainment and information options including more than 140 movies and stage performances, 200 TV programmes and nearly 800 CDs. The extensive selection also consists of interactive games, audio books, hosted radio programming and a variety of learning applications.
All programmes are presented on high-resolution wide-screen LCD TVs with
crystal-clear audio across all classes. The graphical user interface makes
navigating through programmes and menus a breeze. Customers can play, pause,
rewind and resume at their convenience at any point of a video or audio
programme.
ABOUT PANASONIC
Panasonic Avionics Corporation is the world’s leading supplier of in-flight entertainment and communication systems. The company’s best-in-class solutions, supported by professional maintenance services, fully integrate with the cabin enabling airlines to deliver the ultimate travel experiences with a rich variety of entertainment choices, resulting in improved quality communication systems and solutions, and lower overall costs.
Established in 1979, Panasonic Avionics Corporation, a U.S. corporation, is a subsidiary of Panasonic Corporation of North America, the principal North American subsidiary of Panasonic Corporation (NYSE: PC).
Headquartered in Lake Forest, California with over 2,600 employees and operations in 50 locations worldwide, it serves over 200 customers worldwide and provides IFEC systems on over 3,700 aircraft. For additional information, please visit www.panasonic.aero.
SIA TO INCREASE COPENHAGEN SERVICES AS SAS JOINT VENTURE
WINS FINAL APPROVAL
Singapore Airlines will increase services between Singapore and the Danish capital Copenhagen, following final regulatory approval for a joint venture with Scandinavian Airlines (SAS).
SIA currently operates three weekly flights between Singapore and Copenhagen. Subject to airport slot availability, frequency will increase to five flights per week from 31 March 2013. Star Alliance partner SAS will add its code to the flights.
The Competition Commission of Singapore (CCS) confirmed today that it has cleared the joint venture between SIA and SAS. As announced in May, the partnership will encompass joint operations including the co-ordination of flight schedules and joint sales activities.
“We are very pleased to announce an increase in frequency to Copenhagen now that regulatory approvals have been obtained for our wide-ranging partnership with SAS. We look forward to further building on our ties with SAS to provide more travel choices for our customers,” said Singapore Airlines Executive Vice President Commercial, Mr Mak Swee Wah.
SIA and SAS have been codesharing since December 2010. SIA adds its code to SAS-operated flights beyond Copenhagen to Helsinki, Oslo and Stockholm, while SAS has been codesharing on SIA-operated flights between Copenhagen and Singapore, and on selected flights between Singapore and Bangkok. An expansion of codeshare ties is currently under discussion. New services between Singapore and Scandinavia will also be explored, subject to market conditions.
VIRGIN AND DELTA TO
AGREE JV ON TRANSATLANTIC ROUTES-SOURCE
LONDON |
Dec 10 (Reuters) - Virgin Atlantic and Delta Air Lines will agree a partnership on transatlantic flights once the U.S. carrier seals a deal to buy Singapore Airlines' 49 percent stake in the British airline, a source close to the UK carrier said.
The source said Virgin founder Richard Branson was not immediately looking to sell any of his 51 percent stake in the airline and that he was "concentrating on working with Delta" if the U.S. group successfully buys Singapore's stake.
Virgin and Delta plan to set up a revenue sharing deal on flights between Britain and the U.S. which would involve a code-share agreement, allowing both to sell flights on the other airline and share revenues from ticket sales, the source said.
The partnership would be similar to that operated by IAG's British Airways and American Airlines on transatlantic routes.
Weekend press reports said Air France-KLM, which also has a partnership with Delta on some transatlantic routes, was in talks to buy part of Branson's stake - a deal which would give Delta and Air France-KLM control over Virgin Atlantic.
However, Branson is unlikely to sell down his stake in the near future, the source added.
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 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. 54.34 |
|
|
1 |
Rs. 80.90 |
|
Euro |
1 |
Rs. 70.73 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
BVA / NIT / TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.