MIRA INFORM REPORT
|
Report Date : |
17.05.2013 |
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 : |
B (39) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 5200000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a leading private sector airline in It is established and a reputed company having a moderate track
record. It has incurred heavy loss during 2012. Financial position of the
company is affected due to huge external borrowing. 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 some caution.
. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Series 1 PTCs = AAA (Withdrawn) |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
12.02.2013 |
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 DECLINED
Management Non-Cooperative (91-22-61211000)
LOCATIONS
|
Registered Office /
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:-
|
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ali Ghandour |
|
Designation : |
Director |
|
Date of Birth/ Age : |
28.05.1931 |
|
Qualification : |
Aeronautical Engineer from New York University, U.S. A. |
|
Expertise in specific functional area : |
Mr. Ghandour, a Jordian national, has over 50 years of experience in the civil aviation industry. He was an advisor of the late King Hussein of Jordan and was earlier the Chairman of the Royal Jordanian Airlines. He has also been associated with the development of a number of airlines in Middle East. |
|
|
|
|
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 |
|
Date of Birth/ Age : |
18.09.1932 |
|
Qualification : |
Bachelor of Arts |
|
Expertise in specific functional area : |
Mr. Chopra, an Indian national, has been appointed a Director of the Company since April 2006. Mr. Chopra has had a distinguished career spanning over five decades in the Indian film industry. His work has been recognized in India and overseas and he has received several prestigious awards for his outstanding contribution to Indian Cinema. He is also the Chairman of one of India’s most vibrant, innovative and successful film production houses of all times – Yash Raj Films. |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Whole-time Director and Manager |
|
Date of Birth/ Age : |
08.10.1956 |
|
Qualification : |
Bachelor of Science |
|
Expertise in specific functional area : |
Mr. Shetty, an Indian national, joined the Company in 1996 as General Manager – Marketing and was promoted to Vice President – Marketing in 2004. Currently, Mr. Shetty is Senior Vice President – Commercial. Prior to joining the Company, he was with British Airways as its Marketing Manager – South Asia. He is currently responsible for Customer Services, Cargo, Cabin Crew and Marketing departments. |
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 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10995 |
0.01 |
|
|
10995 |
0.01 |
|
|
|
|
|
|
69057210 |
79.99 |
|
|
69057210 |
79.99 |
|
Total shareholding of Promoter and Promoter Group (A) |
69068205 |
80.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3524129 |
4.08 |
|
|
304292 |
0.35 |
|
|
2430864 |
2.82 |
|
|
3690776 |
4.27 |
|
|
9950061 |
11.53 |
|
|
|
|
|
|
2485186 |
2.88 |
|
|
|
|
|
|
3950563 |
4.58 |
|
|
335752 |
0.39 |
|
|
544244 |
0.63 |
|
|
159742 |
0.19 |
|
|
653 |
0.00 |
|
|
383849 |
0.44 |
|
|
7315745 |
8.47 |
|
Total Public shareholding (B) |
17265806 |
20.00 |
|
Total (A)+(B) |
86334011 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
86334011 |
0.00 |
%20LIMITED%20-%20221686%2017-May-2013_files/image010.gif){kind=small}
%20LIMITED%20-%20221686%2017-May-2013_files/image011.gif){kind=small}
%20LIMITED%20-%20221686%2017-May-2013_files/image012.gif){kind=small}
Shareholding belonging
to the category "Promoter and Promoter Group"
|
Sr. No.: |
Name of the
Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
|
1 |
Tail Winds Limited |
6,90,57,210 |
79.99 |
79.99 |
|
2 |
Naresh Goyal |
9,995 |
0.01 |
0.01 |
|
3 |
Anita Naresh Goyal |
1,000 |
0.00 |
0.00 |
|
|
Total |
6,90,68,205 |
80.00 |
80.0 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
1 |
Life Insurance Corporation of India |
2355864 |
2.73 |
2.73 |
|
2 |
Platinum Investment Management Limited A/c Platinum Asia Fund |
1247872 |
1.45 |
1.45 |
|
3 |
Birla Sun Life Trustee Company Private Limited A/c Birla Sun Life Frontline Equity Fund |
912897 |
1.06 |
1.06 |
|
|
Total |
4516633 |
5.23 |
5.23 |
BUSINESS DETAILS
|
Line of Business : |
Providing passenger and cargo air transportation services.
|
GENERAL INFORMATION
|
No. of Employees : |
12849 (Approximately) |
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|
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Bankers : |
|
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|
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|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Rs.
In Millions
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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 Rs. 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 |
91355.000 |
|
|
|
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-%20221686%2017-May-2013_files/image005.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
44705.300 |
40132.800 |
40857.600 |
|
Total Expenditure |
41233.700 |
38194.900 |
36459.700 |
|
PBIDT (Excl OI) |
3471.600 |
1937.900 |
4397.900 |
|
Other Income |
2411.000 |
1814.200 |
1654.600 |
|
Operating Profit |
5882.600 |
3752.100 |
6052.500 |
|
Interest |
2499.300 |
3221.200 |
2483.900 |
|
Exceptional Items |
(646.400) |
779.300 |
(408.900) |
|
PBDT |
2736.900 |
1310.200 |
3159.700 |
|
Depreciation |
2403.600 |
2393.200 |
2241.900 |
|
Profit Before Tax |
333.300 |
(1083.000) |
917.800 |
|
Tax |
86.300 |
(86.300) |
67.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
247.000 |
(996.700) |
850.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
247.000 |
(996.700) |
850.000 |
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 Debt /Networth) |
|
8.22
|
4.42 |
5.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.63
|
0.81 |
1.02 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
Rs.
In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Total outstanding dues to Micro and Small Enterprises |
11.600 |
8.700 |
|
|
Others for Goods and Services |
31840.200 |
20891.700 |
|
|
Total |
31851.800 |
20900.400 |
17255.500 |
%20LIMITED%20-%20221686%2017-May-2013_files/image006.gif){kind=small}
|
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 |
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 |
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 |
UNSECURED LOANS
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Long Term Loan |
|
|
|
Long Term Maturities of Finance Lease Obligations (Refer note a below) |
71014.000 |
72839.700 |
|
Short Term Loan |
|
|
|
From Banks Rupee Loans (Refer note b below) |
994.400 |
1207.000 |
|
Foreign Currency Loans (Refer note b below) |
0.000 |
1290.300 |
|
From Others |
|
|
|
Rupee Loans (Refer note b below) |
0.000 |
40,000 |
|
Total |
73388.600 |
79337.000 |
|
a. (i) Finance Lease obligation for six Aircraft are secured by Corporate Guarantee given by the Subsidiary Company. (ii) Repayable in quarterly instalments over period of twelve years from the date of disbursement of respective loan. Interest rate is linked with LIBOR plus margin. b. The rates of interest for the above said loans ranges
from 200 base points to 850 base points over LIBOR plus Margin for
Foreign Currency Loans and 12 % to 15
% for Rupee Loans. |
||
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 31st 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.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
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.
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.
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.
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.
ANALYSIS OF
OPERATIONAL PERFORMANCE FISCAL 2012 COMPARED TO FISCAL 2011 REVENUES
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
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
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
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
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
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
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
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 Rs.60.20 vs Rs. 45.01 for Fiscal 2011. The rates for
International operations were Rs.43.36 in Fiscal 2012 vs Rs.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
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
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
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
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
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.
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
WEBSITES DETAILS:
BOARD OF DIRECTORS
Mr. Naresh
Goyal | Chairman
Mr. Naresh Goyal, the founder Chairman of Jet Airways, India’s premier airline,
has over 39 years of experience in the Civil Aviation industry. With his vast experience
in the field of aviation, Mr. Goyal is the recipient of several national and
international awards. Mr. Goyal currently serves on the prestigious
International Air Transport Association (IATA) Board of Governors for the year
2009-2010.
Mr. Ali Ghandour | Director
Mr. Ali Ghandour, a Jordanian national, has been a Director of the Company
since February 1998. Mr. Ghandour is a qualified aeronautical engineer from New
York University, U.S.A. Mr. Ghandour has over 50 years of experience in the
civil aviation industry. He was an advisor to the late King Hussein of Jordan
and was earlier the Founder and Chairman of the Royal Jordanian Airlines. He
has also been associated with the development of a number of airlines in the
Middle east including: ARAB WINGS, Arab Air Cargo, Sierra Leon Airline, and the
Royal Academy of Aeronautics.
Mr. Victoriano P.
Dungca | Director
Mr. Victoriano P. Dungca, an American national, has been a Director of the
Company since January 1999. Mr. Dungca holds an MBA from Cornell University,
U.S.A. and is a Certified Public Accountant from the U.S.A. Mr. Dungca has had
a long and distinguished career with Philippine Airlines and retired as its
Executive Vice President. He is currently a financial advisor based in
California, U.S.A.
Mr. Javed
Akhtar | Director
Mr. Javed Akhtar, an Indian national has been a Director of the Company since
March 1993. Mr. Akhtar holds a Bachelor of Arts degree. Mr. Akhtar is a well-known
poet, lyricist, screenplay and scriptwriter and is a famous media personality.
Mr. Akhtar has won the Filmfare Award Fifteen times, and is a five-time
National Award winner for the best lyricist.
Mr. Iftikar M.
Kadri | Director
Mr. Iftikar M. Kadri, an Indian national, has been a Director of the Company
since February 2000. Mr. Kadri holds a Bachelors degree in Engineering from
Pune University. He is a member of the Council of Architecture, New Delhi and a
Fellow of the Indian Institute of Architects and a fellow of the Indian
Institute of Interior Design. Mr. Kadri set up his practice as an architect in
1960 and is actively involved with the problems relating to rebuilding of
dilapidated buildings in Mumbai and exploring technological solutions for mass
housing schemes. He was also a member of the Steering Committee appointed by
the Government of Maharashtra to suggest strategies for solving the housing
problems of Mumbai. Mr. Kadri was awarded a citation in 1993 as an Outstanding
Architectural Engineer by the Institution of Engineers in India. He was the
Sheriff of Mumbai in 1994. He is also the General Secretary of the prestigious
Nehru Centre in Mumbai.
Mr. Aman
Mehta | Director
Mr. Aman Mehta, an Indian national, has been a Director of the Company since
September 2004. Mr. Mehta holds a Bachelors degree in Economics from Delhi
University. He joined the HSBC group in 1968. He subsequently held several
senior positions with the HongKong Shanghai Banking Corporation and was
appointed Chief Executive Officer of HSBC Asia Pacific in January 1999, a
position he held until his retirement in December 2003. Mr. Mehta is also a
member of the governing board of the Indian School of Business, Hyderabad. Mr.
Mehta serves as an independent director on the boards of several companies in
India as well as in the UK, Hong Kong and Singapore.
Mr. Gaurang
Shetty | Director
Mr. Gaurang Shetty, an Indian national, is a Bachelors in Science with over 32
years experience in the aviation industry. He joined the Company in 1996 as
General Manager - Marketing and was promoted to Vice President - Marketing in
2004. Currently, at Jet Airways he is Sr. Vice President - Commercial and is
responsible for all commercial activities related to In-flight Services and
Customer Services including Cargo for both domestic and international
operations. Prior to joining the Company, he was with British Airways as its
Marketing Manager - South Asia, where he was responsible for passenger
marketing, customer service and cargo. He was appointed as a Director of the
Company on May 24, 2012. On the said date he was also appointed as
"Manager" under the provisions of the Companies Act, 1956.
PRESS RELEASE:
Jet Airways announces
daily services to Kuwait and Abu Dhabi from Kochi effective May 16, 2013
Mumbai, May 13, 2013
Jet Airways, India’s premier international airline, will introduce daily services from Kochi to Kuwait via Abu Dhabi, effective May 16, 2013.
Jet Airways presently operates double daily flights between Mumbai and Kuwait.
The airline will deploy a state-of-the-art Boeing 737-800 Next Generation (NG) aircraft on this route, offering Premiere and Economy guests the best in-flight product and services along with award-winning in-flight Entertainment (IFE), as also meals that are regional favorites.
The introduction of the new daily service will further strengthen Jet Airways’ presence in the Gulf, where it has emerged as one of the leading carriers on this sector, catering to the large number of Indians in the Gulf. The new service from the city will complement the airline’s existing daily Gulf operations to Abu Dhabi, Bahrain, Dubai, Doha, Kuwait, Muscat and Sharjah, as well as Jeddah, Riyadh and Dammam, from several cities in India. Jet Airways presently operates over 50 flights between India and the Gulf.
Jet Airways flight 9W 576 will depart Kochi at 1755 hrs (Local Time), arrive Abu Dhabi 2030 hrs (LT), depart at 2120 hrs (LT) and arrive Kuwait at 2205 hrs (LT). On the return direction, flight 9W 575 will depart Kuwait at 2305 hrs LT; arrive Abu Dhabi at 0150 hrs (LT); depart at 0240 hrs and arrive in Kochi at 0810 hrs LT the following day, providing early morning connections to metro and non-metro destinations on Jet Airways network.
Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said Jet Airways is
happy to provide a daily service from Kochi to Abu Dhabi and Kuwait, an
indication of the strong demand on this sector. Jet Airways has established
itself as a prestigious brand on account of the warmth of its service and
quality of its in-flight product and we are confident that this daily service
would also prove equally popular with its guests.
About Jet Airways:
Jet Airways currently operates a fleet of 115 aircraft, which include 10 Boeing 777-300 ER aircraft, 10 Airbus A330-200 aircraft, 4 Airbus A330-300 aircraft, 73 next generation Boeing 737-700/800/900 aircraft, 17 ATR 72-500 and 1 ATR 72-600 turboprop aircraft. With an average fleet age of 5.45 years, the airline has one of the youngest fleet of aircraft in the world. Flights to 72 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), Muscat, New York (Newark), Riyadh, Sharjah, Singapore and Toronto.
About JetKonnect
JetKonnect is a dedicated product designed to meet the needs of the low fare
segment. JetKonnect will also offer guests a Premiere service on nearly all
domestic routes. With its mixed fleet of Boeings and ATR aircraft with over 500
daily flights connecting 52 destinations across India, JetKonnect provides more
flexibility and choice to its guests. JetKonnect’s convenient schedules,
reliable service and low fares, promise to bring greater value and a seamless
flying experience to our customers.
Jet Airways revises
baggage allowance on domestic routes
May 9, 2013
Jet Airways and JetKonnect have revised the free baggage allowance (FBA) to 15 kgs in Economy on all domestic travel within India, effective May 15, 2013. Cabin baggage will be restricted to seven kgs, as before.
JetPrivilege members will continue to enjoy the additional free baggage allowance as per their JetPrivilege membership status (Platinum / Gold / Silver), while Premičre guests would continue to avail 30 kg of free baggage allowance on Jet Airways and JetKonnect flights.
A flat rate of Rs. 250 per kg will be applicable for baggage over and above the free baggage allowance.
Jet Airways launches
the first airline mobile application (App) for Windows Phone in association
with Nokia
May 8, 2013
Jet Airways, India's premier international airline, today announced the launch of its first mobile application for Windows Phone in association with Nokia. This makes it India’s first native airline mobile application across any platform, which allows customers to effortlessly book tickets, check flight status, manage their JetPrivilege account, and also avail of special offers among other features.
In view of the growing popularity of smart phone usage, the app has been designed in a highly innovative and interactive manner to enhance guests travel experience. The Jet Airways mobile application includes display of flight updates, notifications and allows the user to 'pin' the booked ticket onto the home screen for easy access. The safe and secure travel tool would help guests to plan their travel and stay connected at any place, any time.
Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “Continual innovation has been Jet Airways' operating philosophy since it commenced operations in 1993 and this new mobile app is further testimony of the same. The Jet Airways app has been created with a clear focus on enhancing overall guest travel experience through the use of evolving technology, by empowering them with tools to interface with the airline , right from the palm of their hand. The recent years have witnessed a noteworthy increase in the acceptance and usage of smart which has led to a significant surge in the use of mobile devices to access the internet. The rapid adoption of app utilisation by travelers using smart is accelerating the growth of travel bookings among mobile devices.”
The Jet Airways mobile app is compatible with Windows Phone 7.5, Windows Phone 7.8 and Windows Phone 8. It leverages the Windows Phone UI, which gives it a smart and elegant look. The application is available for free download from the Windows Phone App Store. Alternately, consumers may SMS JetApp to 56388 to download the app. For further information guests may log on to jetairways.com or m.jetairways.com
“This will be India’s first native app for an airline on any mobile platform which will help travelers to access information and book tickets seamlessly. Nokia in collaboration with Jet Airways have developed this software to make travel planning convenient, simple and smart. Today a smart phone is intrinsic to the way we live and we believe this is a step towards creating pioneering travel apps for the airline industry”, said Gerard Rego, Director Developer Experience, Nokia India.
Jet Airways
celebrates 20 years of excellence in the skies
May 06, 2013
Jet Airways, India’s premier international airline, yesterday celebrated the completion of two decades of service excellence in the skies, since it began operations as an Air Taxi Operator on May 5th 1993. The mission at Jet Airways, even 20 years ago was simple, the airline wanted to widen connectivity within India and overseas and facilitate the movement of people, encouraging both tourism and trade, while contributing in tandem to the development of the Indian economy. Thus, when the Jet Airways took delivery of its first aircraft at Mumbai in the presence of Mr. J R D Tata, the father of Indian Civil Aviation, it marked the beginning of a glorious new chapter for civil aviation in the country. The airline has since then emerged as the first private airline to introduce the Indian air traveller to the reliability, safety and comfort of new technologies – a paradigm that Jet Airways has pioneered throughout the past two decades.
Undeterred by its humble beginnings, Jet Airways even in its formative years challenged and changed the concept of guest satisfaction, constantly evolving and continuously innovating to create the legend of India’s most preferred domestic airline. Benchmarking itself with the best, not in the country but internationally, both in terms of inducting the latest technology in terms of new aircraft and also service, both on the ground and in the air. Thus, enabling its staff to deliver a new and superior air travel experience, ensuring that guests truly experienced the ‘Joy of Flying’.
Following Jet Airways’ domestic success story and growing liberalisation, the airline then embarked on a phase of international expansion in March 2004 with a flight between Chennai and Colombo. Jet Airways then opened new international routes initially within the SAARC region and then onto Singapore, Bangkok, and London. Once again became the first private Indian airline to fly to international destinations. Little wonder than that Jet Airways has today emerged as India’s premier international airline and one of the few iconic Indian service brands to successfully create a name for itself globally. The airline, today, with over 105 aircraft, offers customers in India and abroad a schedule of over 600 flights daily, spanning 20 international destinations across the globe and over 52 destinations pan-India.
Thus, it has been Jet Airways Indian roots, coupled with its legendary service, that have helped the airline emerge as one of the few iconic Indian service brands to successfully create a name for itself globally. Looking ahead to the future, Jet Airway’s will continue to afford its guests significant benefits through an expanded international network and enhanced codeshares. The airline will also attempt to connect guests from 23 cities across India seamlessly through its primary home hubs of New Delhi and Mumbai onto the US, Europe, Africa Middles East in the West and the SAARC and South East Asian markets in the East.
Speaking on the occasion of its 20th Anniversary, Mr. Naresh Goyal – Chairman, Jet Airways Group - said, “The Jet Airway’s Group is justifiably proud to celebrate over two decades of service excellence and imparting the Joy of Flying amongst our most valued guests. What has made this important milestone possible, has been the unstinted support, trust and confidence of the millions of guests who have flown and loved our services, and our partners who have imbibed the values of adhering to the strict quality standards of the airline, of that I have no doubt. Lastly, I would like to thank each and every single member of our staff across all departments and at all levels, for their unstinting support, commitment and belief in a dream, which has evolved into a beautiful journey of twenty years. To each and everyone that has been a part of the Jet Airways journey over these past two glorious decades I say thank you for giving us the self belief and strength to spread our wings and soar.
Mr. Goyal further added, “As India’s premier airline, we are committed to offering our guests the very best travel experience both in the skies and on the ground. As we set our sights firmly on the future with even bigger goals for the years ahead, together with all of my staff at Jet Airways, we re-dedicate ourselves to ensuring that the flying experience of all our guests, will always be nothing but the best, with a truly world-class in-flight product and the very same warm service that has made Jet Airways – India’s premier international airline. The Jet Airways family looks forward to welcoming all our guests on board now and in the future and we hope our guests truly partake of the Joy of Flying with us.”
Jet Airways shares up
as founder firm plans share sale
Apr 30, 2013
Jet Airways shares rise as much as 2.59 percent a day after a founder group company of the carrier said it would sell a stake as part of public float rules
Tail Winds Limited, which owned almost 80 percent of Jet before the deal, will sell shares to Naresh Goyal and other investors to comply with a rule that requires companies to have a minimum 25 percent public shareholding.
Abu Dhabi's Etihad Airways agreed last week to acquire a 24 percent stake in India's No. 1 carrier, giving it a bigger foothold in the fast-growing aviation market.
India's Jet set to
order over 100 planes at airshow-consultancy
NEW
DELHI | Thu May 9, 2013
May 9 (Reuters) - India's Jet Airways is expected to order more than 100 planes from Boeing Company and Airbus at the Paris Airshow next month, a leading aviation consultancy said.
The Centre for Asia Pacific Aviation (CAPA) said in a report it understood Jet has already confirmed an order for 50 737-MAX planes together with up to 10 777-300ERS from Boeing.
CAPA said it expected a further order of 50 Airbus A320neo planes to be used by Jet's low-cost unit.
A spokeswoman for Jet Airways, which recently agreed to sell a 24 percent stake to Abu Dhabi's Etihad in a $380 million deal, was not immediately available for a comment.
There has been speculation for months of a 100-plane order by Jet, but so far the deal, which would be worth some $10 billion at list prices, remains unconfirmed.
FIPB nod sought for
Etihad stake in Jet
May 16, 2013,
Jet Airways and Etihad have sought the FIPB nod for Etihad’s purchase of a 24-percent stake in Jet . Sources in the finance ministry told CNBC-TV18 that the deal seems to be in line with FDI regulations and should see no problem in it being cleared by the FIPB.
Sebi though, will be a different ball game, since it has raised questions on if the 24-percent stake actually transfers control to Etihad, thus triggering an open offer.
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. |
|
|
1 |
Rs. |
|
Euro |
1 |
Rs. |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
NTH |
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 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
39 |
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.