MIRA INFORM REPORT

 

 

Report Date :

19.04.2014

 

IDENTIFICATION DETAILS

 

Name :

SINGAPORE AIRLINES LIMITED

 

 

Branch Office :

Ground Floor, Air India Building, Nariman Point, Mumbai – 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

16.08.1972

 

 

Capital Investment / Paid-up Capital :

1856.1 (In $ Millions)

 

 

Legal Form :

It is a Branch of a Foreign Register Company

 

 

Line of Business :

The principal activity of the company consists of passenger air transportation.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

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

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a foreign registered company having fine track record.

 

The rating takes into consideration company’s established track of business operation marked by healthy financial risk profile and decent profitability levels of the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.  

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

 

 

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 DENIED

 

MANAGEMENT NON CO-OPERATIVE (91-22-22048845)

 

 

LOCATIONS

 

Registered Office / Headquarters :

25 Airline Road, Airline House, Singapore 819829

Tel. No.:

Not Available

Fax No.:

Not Available

 

 

Branch Office :

Ground Floor, Air India Building, Nariman Point, Mumbai – 400021, Maharashtra, India 

Tel. No.:

91-22-22852477

Fax No.:

Not Available

E-Mail :

Ninaz_panthaky@singaporeair.com.sg 

Website :

www.singaporeair.com

 

 

Reservation and Ticketing Office :

2nd Floor Setu Complex, S. P. Nagar Road, Off C. G. Road, Navrangpura, Ahmedabad - 380009, Gujarat, India

Tel. No.:

91-79-30012828

Fax No.:

91-79-30012850

E-Mail :

Amd_feedback@singaporeair.com

 

 

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

 

 

Town Offices :

Located At:

 

·         Delhi

·         Kolkata

·         Chennai

·         Mumbai

·         Bangalore

·         Ahmedabad

 

 

Airport Offices :

Located at:

 

·         Delhi

·         Kolkata

·         Chennai

·         Mumbai

·         Bangalore

 

 

DIRECTORS

 

As on 31.03.2013

 

Name:

Stephen Lee Ching Yen

Designation:

Chairman (Independent)

 

 

Name:

William Fung Kwok Lun

Designation:

Director (Independent)

 

 

Name:

Goh Choon Phong

Designation:

Chief Executive Officer

 

 

Name:

Euleen Goh Yiu Kiang

Designation:

Director (Independent)

 

 

Name:

Christina Ong

Designation:

Director (Independent)

 

 

Name:

Helmut Gunter Wilhelm Panke

Designation:

Director (Independent)

 

 

Name:

Lucien Wong Yuen Kuai

Designation:

Director (Non Independent)

 

 

Name:

Jackson Peter Tai

Designation:

Director (Independent)

 

 

Name:

Hsieh Tsun-Yan

Designation:

Director (Independent)  (Appointed as Director on 1 September, 2012)

 

 

Name:

Gautam Banerjee

Designation:

Director (Independent)  (Appointed as Director on 1 January, 2013)

 

 

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

 

Banking Relations :

--

 

 

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 31.03.2013

 

(In $ Millions)

Particulars

Share

capital

Treasury

shares

Capital

reserve

Share-Based Compensation

reserve

Fair value

reserve

General

reserve

Total

Balance at 1 April 2012

1,856.1

(258.4)

(8.1)

133.7

(9.8)

11,133.4

12,846.9

Comprehensive income

 

Net fair value changes on

available-for-sale assets

--

--

--

--

2.2

--

2.2

Net fair value changes on

cash flow hedges

--

--

--

--

10.5

--

10.5

Other comprehensive income  for the financial year

--

--

--

--

12.7

--

12.7

Loss for the financial year

--

--

--

--

--

(694.1)

(694.1)

Total comprehensive income

for the financial year, net of tax

--

--

--

--

12.7

(694.1)

(681.4)

Transactions with owners, recorded directly in equity

 

Share-based compensation expense

--

--

--

3.2

--

--

3.2

Share options  Share awards lapsed

--

--

--

(3.0)

--

3.0

--

Purchase of treasury shares

--

(37.7)

--

--

--

--

(37.7)

Treasury shares reissued pursuant

to equity compensation plans

--

26.3

(1.3)

--

--

--

15.6

Dividends

--

--

--

(9.4)

--

(188.0)

(188.0)

Total transactions with owners

--

(11.4)

(9.2)

--

--

(185.0)

(206.9)

Balance at 31 March 2012

1,856.1

(269.8)

124.5

124.5

2.9

10254.3

11,958.6

 


 

FINANCIAL DATA

[all figures are in $ Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT

 

 

 

Share Capital

1856.1

1856.1

1832.4

Other Reserves

10372.3

11249.2

12345.7

Share-Based Compensation Reserve

0.0

0.0

0.0

General Reserve

0.0

0.0

0.0

Fair Value Reserve

0.0

0.0

0.0

Treasury Shares

(269.8)

(258.4)

(43.0)

TOTAL

11958.6

12846.9

14135.1

 

 

 

 

Total Equity

11958.6

12846.9

14135.1

Deferred Account

127.8

199.9

330.7

Deferred Taxation

1621.3

1694.8

1814.1

Long-Term Liabilities

803.9

807.9

803.4

Provisions

376.1

259.1

162.0

 

 

 

 

TOTAL

14887.7

15808.6

17245.3

 

 

 

 

REPRESENTED BY:

 

 

 

PROPERTY, PLANT AND EQUIPMENTS

 

 

 

Aircraft, Spares and Spare Engines

8746.8

9223.9

9479.1

Land and Building

70.7

79.4

92.5

Others

1581.8

1525.0

1805.8

Intangible Assets

159.0

111.2

90.8

Subsidiary Companies

2030.1

2038.8

1755.8

Associated Companies

532.5

1701.1

1715.7

Joint Venture Companies

0.0

0.0

0.0

Long-Term Investments

626.8

293.7

18.8

Other Receivables

213.9
215.6

119.6

Deferred Account

0.0
33.7

0.0

 

 

 

 

CURRENT ASSETS

 

 

 

Inventories

192.7

221.7

253.9

Trade Debtors

1080.9

870.2

913.6

Deposits and Other Debtors

36.6

26.7

33.5

Prepayments

75.8

74.8

89.5

Amounts Owing by Subsidiary Companies

189.9

195.2

194.0

Investments

289.4

565.2

339.9

Derivative Assets

77.7

57.4

63.1

Cash and Bank Balance

4834.3

4450.7

7217.8

TOTAL

6777.3

6461.9

9105.3

 

 

 

 

LESS: CURRENT LIABILITIES

 

 

 

Sales in Advance of Carriage

1367.7

1409.5

1421.1

Deferred Revenue

532.5

497.0

445.1

Current Tax Payable

130.2

186.0

370.3

Trade and Other Creditors

2510.1

2210.2

2161.8

Amounts Owing to Subsidiary Companies

1219.8

1525.2

1529.0

Notes Payable

0.0

0.0

900.0

Provisions

65.2

35.1

62.3

Derivatives Liabilities

25.7

12.7

48.5

TOTAL

5851.2

5875.7

6938.1

NET CURRENT ASSETS

926.1

586.2

2167.2

 

 

 

 

TOTAL

14887.7

15808.6

17245.3

 

 

 

REVENUE STATEMENT

 

PARTICULAR

 

31.03.2013

31.03.2012

31.03.2011

TOTAL REVENUE

 

 

 

External Revenue

12169.3

11582.3

11227.0

Inter-Segment Revenue

1243.3

1234.9

1178.5

TOTAL

13412.6

12817.2

12405.5

 

 

 

 

RESULTS

 

 

 

Segment Result

262.0

279.1

972.8

 

 

 

 

Finance Charges

(35.2)

(65.9)

(58.8)

Interest Income

62.2

50.1

36.8

(Loss)/Surplus on Disposal of Aircraft, Spares and Spare Engines

56.3

(28.9)

103.1

Dividend From Subsidiary Companies

--

266.4

173.0

Dividends From Long-Term Investments

10.3

4.4

11.3

Other Non-Operating Items

(5.8)

(13.4)

81.5

Share of Profits of Joint Venture Companies

--

0.0

0.0

Share of (Losses)/Profits of Associated Companies

(1.9)

(29.3)

22.3

Exceptional Items

--

(4.1)

0.00

Taxation

(32.4)

(45.2)

(210.0)

 

 

 

 

Profit/(Loss) For the Financial Year

315.5

413.2

1132.0

 


 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE: Current Maturities of Long Term Debts is Not Available.

 

 

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

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

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

 

 

GENERAL

 

Subject 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. A list of the Group’s associated companies is shown in Note 24 to the financial statements.

 

 

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. Additional disclosures on each of these segments are shown in Note 4, including the factors used to identify the reportable segments and the measurement basis of segment information. 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.

 

 


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

62

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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