A Report On

Financial Analysis of Indian Aviation Industry

FRA Group 5
Section F
Udayan sharma

FPM16004

Vaibhav Lalwani

FPM16005

Shradha Meryline Panna

PGP30280

Anant Kumar

PGP31309

Sandeep Vijyakumar

PGP31343

Vaibhav Bhagwat

PGP31358

Ksheer Sagar Prasad

PGP31426

FINAL REPORT SUBMISSION

Indian Institute of Management, Lucknow

September 25, 2015

Interglobe Aviation Limited (Indigo)

Interglobe Aviation Limited (Indigo) is characterized by low profit margins and high fixed costs, including lease and
other aircraft acquisition charges, engineering and maintenance charges, financing commitments, staff costs and IT
costs. As quoted by the official significant operating expenses, such as airport charges, do not vary according to
passenger load factors. High utilization of our aircraft, low levels of operating and other costs, careful management
of passenger load factors and revenue yields, acceptable service levels and a high degree of safety, such that we
continue to generate high revenues in order to grow profitably. As some of the factors affecting these tasks are not
totally under control, there are no assurance to achieve any one or more of these aims to a sufficient degree for
business and growth plans to succeed at all to cover the fixed costs of our operations or achieve acceptable
operating or net profit margins.
Analysis of variety of areas are as follows:
1. Liquidity Analysis
a. Quick Ratio:

Quick ratio of the Indigo remains around and above one from 2010 to 2014, implying that liquidity position of
the company is better and have the capability to meet its short term obligations with its most liquid assets is
higher.
b. Current Ratio:

Due to high investment in asset procurement total current liability grew from INR 416.95 crore to INR 2860.83
Crore. Whereas current asset grew from INR 1423.94 crore to 2914.69 Crore. As the current asset is always
higher than the current liability. It shows the efficiency of the company to meet its working capital requirement.
The company is capable in paying its obligations regularly.

2. Solvency Analysis
a. Total Debt/Equity (x):

(!) =

The company has been using debt capital more than the equity to pay its long term obligations.
Debt Equity Ratio varies from 4.16 in 2010 to 8.21 in 2014 and always has been more than 2.5 times which shows
company is using much debt capital to finance its assets relative to amount of value represented in equity.
b. Interest Cover (x):
%

(!) =

& ' (
%

)*

Even with the high debt capital, company`s interest coverage ratio has been more than 4 times since 2010 except
in 2012. This shows the company has been generating sufficient revenues to satisfy its interest expenses.

3. Efficiency Analysis
a. Days in Receivables:

360

In aviation industry most of the transition with the end users happen before hand, so the amount receivables
are lesser as compare with the other industries. Most of the transaction regarding purchase of items can happen
which leads to account receivables. As this amount is very less, thus the days in receivables are always on the
lower side and remains almost constant. It varies from 1.71 in 2010 to 2.59 in 2014.
b. Payable Days:
.

# 0 (

365

0
.

# .

Most of the payable in Indigo fuel purchases, food items purchased and raw material procurements. From 2010
to 2014 Annual Purchases of Indigo goes up as compare to the average trade payables, causing the Days
Payables Outstanding going down from 21.6 days in 2010 to 16.4 days in 2014.

4. Profitability Analysis
a. Gross Profit Margin:
4

5 /4

100

Operating income of Indigo kept on increasing from INR 2,601.57 crore in 2010 to INR 11,116.58 crore in 2014.
Though raw material consumed grew down the year from INR 12.89 crore to INR 59.33 Crore but as compare to
operating cost, raw material consumed was very less. Hence the overall change in Gross Profit Margin
throughout the years is not significant. It varies from 6.73 in 2011 to 7.02 in 2014. The high gross profit margin
indicates that the company can make a reasonable profit, as long as it keeps the overhead cost in control.
b.

Inventory Turnover:
%

' 0

0 %

'

/4
+
2

# 0 %

'

It measures company's efficiency in turning its inventory into sales. Purpose of it is to measure the liquidity of
the inventory. Average inventory is be used for inventory level to minimize the effect of seasonality. In aviation
industry the majority of inventory are Stores and Spare, Consumable tools and Goods in trade. It grew from
74.99 in 2010 to 185.96 in 2014. Though inventory increases with the years but not as fast as COGS grew, hence
we can observe a drastic hike in inventory turnover over the years. It also implies strong sales and ineffective
buying.
c. Return on Assets:
/ =

: %

&

100

Total assets of Indigo grew from INR 904.50 Crore in 2010 to INR 4450.46 Crore in 2014. Whereas operating
income hiked from 2601.5 in 2010 to 11,116.58 Crore in 2014. This causes overall decrease in ROA from
34.15 to 4.2 over 2010-14 depicts that initially they were having higher return on assets because the
4

company is earning more money on its assets. Later on they procured assets rapidly causing low return on
assets. This implies that they are still finding the ways to utilize their procured assets. So the earnings
generated from invested capital are good for Indigo.
d. Return On Capital Employed:
/

0 ' (
%

*
&*

#
#

) ( '% )

It started with 51.72 in 2010 then goes down to 9.55 in 2012 then up gain to 57.13 in 2013. And finally
ended up with 20.42 in 2014. In year 2012 they invested heavily in asset procurement causing decrease in
operating profit and hence the profit before tax was very less for Indigo, forcing them to make negative
provision for income tax, thus the return on capital employed goes down but later they picked up.

Spicejet Profitability Ratios:

1. Gross profit margin: A company's total sales revenue minus its cost of goods sold, divided by the total sales
revenue, expressed as a percentage. The gross margin represents the percent of total sales revenue that the
company retains after incurring the direct costs associated with producing the goods and services sold by a
company.
4

0 (%) =

2010
19.35

Gross profit margin

2011
17.24

2012
-15.9

2013
-4.9

2014
-15.8

Gross profit margin

40
20

19.35

17.24

2010

2011

0
-20

2012
-15.9

-4.9
2013

2014
-15.8

Analysis: By 2012 ending, Spicejet inducted 9 additional jets. This Asset purchase activity to increase the overall
capacity and future revenues lead to additional expense and reduced the profit margin in 2012 to 2014.

2. Net Profit Margin: The ratio of net profits to revenues for a company or business segment - typically expressed
as a percentage that shows how much of each dollar earned by the company is translated into profits.
:

0 =

Net profit margin

/4 /*

2010
3.02

0 )*

2011
3.51

2012
-15.3

2013
-3.3

2014
-15.9

Net profit margin

10
0

3.02

3.51

2010

2011

2012

-3.3
2013

2014

-10
-15.3
-20

-15.9

Analysis: Explanation is same as for gross profit margin. Additional purchases of jet planes reduced net profits
and had impact on upcoming years.
3. Return on Assets Including Revaluations: A ratio that measures a company's earnings before interest and taxes
(EBIT) against its total net assets. The ratio is considered an indicator of how effectively a company is using its
assets to generate earnings before contractual obligations must be paid.

2010
-14.4

Return on Assets Including Revaluations (%)

2011
7.79

2012
-3.34

2013
-4.91

2014
-19.67

Return on Assets Including

Revaluations(%)
20
7.79

0
-20

2010
-14.4

2011

-3.34
2012

-4.91
2013

2014
-19.67

-40

Analysis: Due to heavy purchase of assets during 2012, the net income decreased and the total assets
increased hence we observe a zero (negative) value in 2012 to 2014.
4. Current Ratio
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt
and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the
more capable the company is of paying its obligations.
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its
product into cash. Companies that have trouble getting paid on their receivables or have long inventory
turnover can run into liquidity problems because they are unable to alleviate their obligations.

Current Ratio

2014
0.39

2013
0.68

2012
0.76

2011
0.54

2010
0.64

Current Ratio
0.8

0.76

0.68

0.6

0.64

0.54

0.4

0.39

0.2
0
2014

2013

2012

2011

2010

Analysis:

Increase in Forward Sales account (FSA) has led to an increase in Current Liabilities. Online ticketing
services are growing in leaps & bounds in India hence causing more people booking advanced flight
tickets online. Airline companies do not recognize this revenue until the service has been rendered
and put this amount into FSA. (As a result Denominator goes up)
SpiceJet purchased nine more aircrafts in 2012 causing increase in current liabilities.
Also in 2010 SpiceJet started international operations hitting its current assets.
Aviation turbine fuel prices account for 40-45% of an airlines revenue. A persistent increase trend
in ATF since 2012 has affected ratios across the industry.

5. Quick Ratio
A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate
liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio,
primarily because the working capital ratio allows for the inclusion of inventory assets.
Furthermore, if the acid-test ratio is much lower than the working capital ratio, it means current assets are
highly dependent on inventory. Retail stores are examples of this type of business.

2014
0.42

Quick Ratio

2013
0.76

5 %

2012
0.86

2011
0.56

2010
0.65

Quick Ratio
1
0.8

0.76

0.86

0.6
0.4

0.65

0.56
0.42

0.2
0
2014

2013

2012

2011

2010

Analysis:
Less reliance on Cash and using current liabilities to fund fixed assets.

Increase in Current liabilities over time because of use of forward sales account (as described in
Current Ratio Analysis)

Increase in inventory over time as Jet is spending more on maintenance of its aging fleet.

6. Debt Equity Ratio

It is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders'
equity. It indicates what proportion of equity and debt the company is using to finance its assets.
If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially
generate more earnings than it would have without this outside financing. If this were to increase earnings
by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being
spread among the same amount of shareholders. However, the cost of this debt financing may outweigh
the return that the company generates on the debt through investment and business activities and become
too much for the company to handle.

) =

2014
-1.49

Debt Equity Ratio

Shareholders Equity

2013
-7.48

2012
-5.81

2011
0.17

2010
-1.28

Debt Equity Ratio

2
0
-2

2014-1.49

2013

2012

0.17
2011

2010-1.28

-4
-5.81

-6
-7.48

-8

Analysis:
The debt equity ratio of spice jet has been negative during the period of study (except in 2011)
This has been due to negative net worth arising out of huge losses.
D/E ratio is not comparable in negative figures.
7. Fixed Assets Turnover Ratio
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to
generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net
of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in
using the investment in fixed assets to generate revenues. Fixed assets are important because they usually
represent the largest component of total assets. A declining trend in fixed asset turnover may mean that
the company is over investing in the property, plant and equipment
M ) #

M ) #

Fixed Assets Turnover Ratios

60
45.46

40

44.12

20
6.59

3.52

2.76

2014

2013

2012

2011

2010

Analysis:
The rapid reduction in the ratio after 2011 is due to addition of 7 Boeing 737 and 2 Q400 NextGen
turboprop aircrafts to its fleet in 2011-12. This led to a sharp increase in it Fixed Assets from INR.
86.75 Cr. In the year ending march 2011 To 850.22 Cr in the year ending March 2012. Whereas the
sales increased from INR 2,876.97 Cr. to 3,943.26 Cr. during the corresponding period.
Again during the FY 2012-2013 the company added 4 Boeing 737 and 5 Bombardier Q400
Turboprop aircrafts, which lead to increase in it Fixed Assets from INR. 850.22 Cr. In the year
ending march 2012 To 1,793.52 Cr in the year ending March 2013.
There was a slight decline in the ratio from 2013 to 2014 as the sales fell from 6304 Cr to 5172 Cr.
8. Debtors Turnover Ratio
It measures how many times a business can turn its accounts receivable into cash during a period. In
some ways the receivables turnover ratio can be viewed as a liquidity ratio as well. Companies are more
liquid the faster they can convert their receivables into cash.

#
0

Since the receivables turnover ratio measures a business' ability to efficiently collect its receivables, it
only makes sense that a higher ratio would be more favourable.
2014
48.35

Debtors Turnover Ratio

2013
89.3

2012
209.8

2011
159.34

2010
139.13

Debtors Turnover Ratio

300
209.8

200

159.34

100
48.35

2014

139.13

89.3
2013

2012

2011

2010

Analysis:

This ratio is very helpful when used in conjunction with short term solvency ratios i.e., current ratio
and quick ratio. Short term solvency ratios measure the liquidity of the company as a whole and
accounts receivable turnover ratio measures the liquidity of accounts receivables.
10

A high ratio for Spice Jet indicates that the receivables are more liquid and are being collected
promptly.

9. Total Assets Turnover Ratio

The ratio of the value of a companys sales or revenues generated relative to the value of its assets. The
Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying
its assets in generating revenue.

Generally speaking, the higher the asset turnover ratio, the better the company is performing, since higher
ratios imply that the company is generating more revenue per dollar of assets.
2014
12.79

Total Assets Turnover Ratio

2013
3.86

2012
5.57

2011
7.1

2010
22

Total Assets Turnover Ratio

30
22

20
10

12.79
3.86

0
2014

2013

5.57
2012

7.1
2011

2010

Analysis:

Spice Jets TAT ratio fell from 2010 to 2013 despite sharp increases in sales turnover (72% CAGR).
This was due to high increases in fixed assets due to fleet expansion.
This ratio increased in 2014 due to decrease in total assets 1453 Cr to 496 Cr. (This occurred due to
sharp increase in current liabilities due to fuel costs and as a result fall in net current assets)

11

Jet airways (India) Ltd.

1. Liquidity Ratios
a. Current Ratio:
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt
and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the
more capable the company is of paying its obligations.
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its
product into cash. Companies that have trouble getting paid on their receivables or have long inventory
turnover can run into liquidity problems because they are unable to alleviate their obligations.

Analysis

Increase in Forward Sales account (FSA) in Current Liabilities. Airlines industry is growing in leaps &
bounds in India hence causing more people booking flight tickets online. Airline companies do not
recognize this revenue until the service has been rendered and put this amount into FSA.
(denominator going up)
SpiceJet purchased nine more aircrafts in 2012 causing increase in current liabilities.
Also in 2010 SpiceJet started international operations hitting its current assets.
Aviation turbine fuel prices account for 40-45% of an airlines revenue. A sharp increase in ATF in
2011- 12 has affected ratios across the industry.

b. Quick Ratio:
A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate
liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio,
primarily because the working capital ratio allows for the inclusion of inventory assets.
Furthermore, if the acid-test ratio is much lower than the working capital ratio, it means current assets are
highly dependent on inventory. Retail stores are examples of this type of business.

12

Analysis

Less reliance on Cash and using current liabilities to fund fixed assets.
Increase in Current liabilities over time because of use of forward sales account (as described in
Current Ratio Analysis)
Increase in inventory (which is subtracted from Current Account in case of quick ratio) over time as
Jet is spending more on maintenance of its aging fleet.
Market Share of spice jet suddenly rose to 12.5 % from 10.5 % in 2013 causing a high current ratio
compared to other years. This has been possible due to better aircraft utilization.

c. Debt Equity Ratio:

It is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders'
equity. It indicates what proportion of equity and debt the company is using to finance its assets.
If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially
generate more earnings than it would have without this outside financing. If this were to increase earnings
by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being
spread among the same amount of shareholders. However, the cost of this debt financing may outweigh
the return that the company generates on the debt through investment and business activities and become
too much for the company to handle.

) =

13

Analysis

A noticeable dip in the Jet Airways Debt equity ratio in 2013 is due to heavy losses coming via profit
and loss account affecting reserves and surplus, which is turn, caused Net worth of shareholders
funds to be negative.
Fleet size of Jet has increased from 61 to 115 in 5 years. Majority of airplanes are leased on financial
lease and hence are considered as debts (Unsecured Loan under Loan Funds) in the balance sheet
of Jet Airways in 2013.
Secured loans to finance negative working capital (Current ratio is less than 1) have also gone up
for Jet Airways. Equity has remained same and debt has gone up for Jet Airways.

2. Efficiency Ratios
a. Fixed Assets Turnover Ratio
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to
generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net
of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in
using the investment in fixed assets to generate revenues. Fixed assets are important because they usually
represent the largest component of total assets. A declining trend in fixed asset turnover may mean that
the company is over investing in the property, plant and equipment.
M ) #

M ) #

14

Analysis
SpiceJet: During the FY 2011-2012 SpiceJet added 7 Boeing 737 and 2 Q400 NextGen turboprop aircrafts to
its fleet. This led to a sharp increase in it Fixed Assets from INR. 86.75 Cr. In the year ending march 2011
To 850.22 Cr in the year ending March 2012. Whereas the sales increased from INR 2,876.97 Cr. to 3,943.26
Cr. during the corresponding period. This led to a sharp decline in Fixed Asset Turnover Ratio.
Again during the FY 2012-2013 the company added 4 Boeing 737 and 5 Bombardier Q400 Turboprop
aircrafts, which lead to increase in it Fixed Assets from INR. 850.22 Cr. In the year ending march 2012 To
1,793.52 Cr in the year ending March 2013. But during the corresponding period sales also increased from
INR 3,943.26 Cr. To 5,600.68 Cr. Hence there was only a marginal decrease in the Ratio.

b. Inventory Turnover Ratio:

It shows how effectively inventory is managed by comparing cost of goods sold with average inventory for
a period. This ratio is important because total turnover depends on two main components (stock
purchasing & sales) of performance. That's why the purchasing and sales departments must be in tune with
each other.
%

/4

A higher value of inventory turnover indicates better performance and lower value means inefficiency in
controlling inventory levels.

Inventory Turnover Ratio

150
100
50
0
Mar '10

Mar '11

Mar '12

Mar '13

Mar '14
-50
-100

Spicejet

Jet Airways

Analysis

A lower inventory turnover ratio for Jet Airways is possibly an indication of over-stocking which
may pose risk of obsolescence and increased inventory holding costs. However, a very high value
of this ratio for Spice Jet suggests loss of sales due to inventory shortage.
Spice jet fleet capacity is 57 planes compared to 89 working planes of jet airways. Market share of
Spice jet is 14.3% compared to 17.3% of Jet airways. With comparable market share and big
difference in number of planes (major part of inventory in aviation sector) difference is ratio is
justified. From here it can be said that operational efficiency of Spice jet is better than others.

15

c. Debtors Turnover Ratio

It measures how many times a business can turn its accounts receivable into cash during a period. In some
ways the receivables turnover ratio can be viewed as a liquidity ratio as well. Companies are more liquid
the faster they can convert their receivables into cash. Debtors Turnover Ratio = Net Credit Sales / Average
Debtors
Since the receivables turnover ratio measures a business' ability to efficiently collect its receivables, it only
makes sense that a higher ratio would be more favorable.

Analysis

This ratio is very helpful when used in conjunction with short term solvency ratios i.e., current ratio
and quick ratio. Short term solvency ratios measure the liquidity of the company as a whole and
accounts receivable turnover ratio measures the liquidity of accounts receivables.
A high ratio for Spice Jet indicates that the receivables are more liquid and are being collected
promptly. A low ratio for jet is a sign of less liquid receivables and may reduce the true liquidity of
the business in the eyes of the analyst even if the current and quick ratios are satisfactory.

3. Profitability Ratios
a. Gross Margin
A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed
as a percentage. The gross margin represents the percent of total sales revenue that the company retains
after incurring the direct costs associated with producing the goods and services sold by a company.
4

0 (%) =

* (
Sales

16

Analysis:
Spicejet: By 2012 ending, Spicejet inducted 9 additional jets. This Asset purchase activity to increase the
overall capacity and future revenues lead to additional expense and reduced the profit margin in 2012 and
2013
Jet Airways: There was rise in earnings due to the change in the depreciating policy adapted by Jet Airways
from written down method to straight line method in 2009. This resulted in to one time impact of MRs.
9,159 but it raised the net earnings afterwards.

b. Net Profit Margin

The ratio of net profits to revenues for a company or business segment - typically expressed as a percentage
that shows how much of each dollar earned by the company is translated into profits.
:

/4 /*

0 =

0 )*

Analysis
The gross profit shows similar trend as the net profit due to the same reasons mentioned above

c. Return on Total Assets

A ratio that measures a company's earnings before interest and taxes (EBIT) against its total net assets. The
ratio is considered an indicator of how effectively a company is using its assets to generate earnings before
contractual obligations must be paid.
/

: %

& + %

)*

17

Analysis
Spicejet: Due to heavy purchase of assets during 2012, the net income decreased and the total assets
increased hence we observe a zero (negative) value in 2012 and 2013.

d. Return on Capital Employed

A financial ratio that measures a company's profitability and the efficiency with which its capital is
employed. Return on Capital Employed (ROCE) is calculated as:
/

0 ' (

&*

#
#

) ( '% )

Capital Employed as shown in the denominator is the sum of shareholders' equity and debt liabilities; it
can be simplified as (Total Assets Current Liabilities). Instead of using capital employed at an arbitrary
point in time, analysts and investors often calculate ROCE based on Average Capital Employed, which
takes the average of opening and closing capital employed for the time period.
A higher ROCE indicates more efficient use of capital. ROCE should be higher than the companys capital
cost; otherwise it indicates that the company is not employing its capital effectively and is not generating
shareholder value.

18

e. Return on Equity
The amount of net income returned as a percentage of shareholders equity. Return on equity measures a
corporation's profitability by revealing how much profit a company generates with the money shareholders
have invested.
ROE is expressed as a percentage and calculated as:

= : %

& /

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to
preferred stock.) Shareholder's equity does not include preferred shares.

Analysis
Spicejet's high ROE of 2012 indicates higher management's effectiveness when compared with Jet Airways.
Spicejets Get more when you fly campaign received a fresh thrust with the launch of i Vista Digital
solutions. This increased their online presence and helped drive the customers to the Spicejet website, as
evident by the high ratio of 2012.
Jet Airways: The reason for the low ratios evident in the years 2009-2010 was that their debt increased
which in-turn increased the interest liability of the company. The underlying reasons were:

f.

Cost Structure
Aggressive expansion in the airline industry
Dearth of experienced pilots
Foreign pilots commanding higher salaries
Depreciation of rupee.

Earnings per Share

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share
serves as an indicator of a company's profitability.
. = .

/ : . (

When calculating, it is more accurate to use a weighted average number of shares outstanding over the
reporting term, because the number of shares outstanding can change over time. However, data sources
sometimes simplify the calculation by using the number of shares outstanding at the end of the period.
19

Diluted EPS expands on basic EPS by including the shares of convertibles or warrants outstanding in the
outstanding shares number.

Analysis
Though all the companies do not seem to be very profitable, Spicejet tended to generate some profits over
2010- 2011, while Jet Airways generated some profits in 2011.

4. Du Pont Analysis
Du Pont Analysis tells us, assets are measured at their gross book value rather than at net book value in
order to produce a higher return on equity (ROE). It is also known as "DuPont identity".
The return on equity (ROE) ratio is used to evaluate how effectively assets are used. It measures the
combined effects of profit margins and asset turnover.
DuPont analysis tells us that three things affect ROE:
Operating efficiency, which is measured by profit margin
Asset use efficiency, which is measured by total asset turnover
Financial leverage, which is measured by the equity multiplier
ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)
Analysis
Spicejet and JetAirways: Both companies are underperforming and have poor financial leverage to invest
in future. Return on equity has taken a severe hit as net profit is in negative, which implies both airlines are
in heavy losses.

20

Exhibit 1. Balance Sheet of Interglobe Aviation Ltd.

Interglobe Aviation Ltd. Balance Sheet (New) - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14
Mar-13
Mar-12
Mar-11
EQUITY AND LIABILITIES
Share Capital
Share Warrants & Outstandings
Total Reserves
Shareholder's Funds
Long-Term Borrowings
Secured Loans
Unsecured Loans
Deferred Tax Assets / Liabilities
Other Long Term Liabilities
Long Term Trade Payables
Long Term Provisions
Total Non-Current Liabilities
Current Liabilities
Trade Payables
Other Current Liabilities
Short Term Borrowings
Short Term Provisions
Total Current Liabilities
Total Liabilities
ASSETS
Non-Current Assets
Gross Block
Less: Accumulated Depreciation
Less: Impairment of Assets
Net Block
Lease Adjustment A/c
Capital Work in Progress
Intangible assets under development
Pre-operative Expenses pending
Assets in transit
Non Current Investments
Long Term Loans & Advances
Other Non Current Assets
Total Non-Current Assets
Current Assets Loans & Advances
Currents Investments
Inventories
Sundry Debtors
Cash and Bank
Other Current Assets

Mar-10

34.37
0.00
373.26
407.63

34.37
0.00
498.02
532.39

34.37
0.00
348.31
382.68

34.37
0.00
220.43
254.81

189.77
0.00
179.58
369.35

3080.74

1617.33

905.55

54.28
2661.22

53.72
1891.24

-66.51
1154.22

773.05
33.93
-2.54
569.28

900.39
636.35
-61.67

36.83
5833.07

23.16
3585.45

15.83
2009.09

13.38
1387.10

393.54
2002.78
464.51
2860.83
9101.52

279.74
1500.99
81.43
30.79
1892.95
6010.78

179.34
1120.44
30.56
15.32
1345.66
3737.43

120.55
682.43
54.03
579.74
1436.75
3078.65

17.32
416.95
2261.38

4450.46
494.49

2036.21
271.75

1073.72
187.71

952.79
121.65

904.50
68.20

3955.97

1764.46

886.01

831.14

836.30

1475.08
146.08
253.56

6.85

1.13

0.05
799.29
1431.52
6186.83

0.04
681.75
487.01
2940.10

0.00
443.76
98.96
1428.73

285.95
11.90
1128.98

837.44

1271.48
67.29
89.12
1101.53
265.64

1138.34
52.28
68.52
1340.59
201.09

523.42
37.39
38.92
1308.83
142.43

802.24
44.67
16.66
775.69
97.89

657.09
34.03
18.05
318.49
42.46

21

Short Term Loans and Advances

Total Current Assets
Net Current Assets (Including Current Investments)
Total Current Assets Excluding Current Investments
Miscellaneous Expenses not written off
Total Assets
Contingent Liabilities
Total Debt
Book Value
Adjusted Book Value

119.63
2914.69
53.87
1643.21

269.87
3070.68
1177.74
1932.34

257.72
2308.70
963.04
1785.28

212.50
1949.66
512.92
1147.42

353.82
1423.94
1006.99
766.85

9101.52 6010.78 3737.43 3078.65 2261.38

35.67
241.90
250.70 11317.01 13865.98
3346.24 1800.42 1015.57
931.36 1536.74
13158.24 17221.99 12345.57 8180.23 6849.54
13158.24 17221.99 12345.57 8180.23 6849.54

Exhibit 2. Profit and Loss Account of Interglobe Aviation Ltd.

Interglobe Aviation Ltd. Profit And Loss - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14
Mar-13 Mar-12
No of Months
INCOME :
Operating Income
Less: Inter divisional transfers
Less: Sales Returns
Less: Excise Duty
Operating Income (Net)
EXPENDITURE :
Increase/Decrease in Stock
Raw Material Consumed
Power & Aircraft Fuel Expenses
Employee Cost
Operating Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Expenses Capitalised
Total Expenditure
Operating Profit (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional
Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax

Mar-11

Mar-10

12.00

12.00

12.00

11116.58

9203.08 5564.66

3825.41

2601.57

11116.58

9203.08 5564.66

3825.41

2601.57

0.71
59.33
5518.50
928.94
83.01
2154.33
637.40
1217.47

-1.87
-0.68
55.99
34.66
4316.55 2876.28
697.23 521.81
59.56
38.05
1772.61 1102.90
511.98 393.90
894.83 561.25

-0.11
19.09
1523.63
293.82
29.60
594.21
292.45
370.24

-0.92
12.89
913.63
224.21
335.03
351.89
240.37
4.52

10599.68
516.90
330.44
847.34
143.58
703.76
226.01

8306.89 5528.16
896.19
36.51
255.23 153.41
1151.43 189.91
72.58
59.49
1078.84 130.43
85.62
66.52

3122.93
702.48
121.93
824.41
52.09
772.32
62.87

2081.63
519.94
71.14
591.08
56.04
535.05
46.00

12.00

12.00

477.76

993.22

63.90

709.45

489.05

477.76
160.76
316.99

993.22
205.88
787.35

63.90
-63.97
127.88

709.45
59.13
650.33

489.05
-61.65
550.70
22

Extra items
Adjustments to PAT
Profit Balance B/F
Appropriations
Equity Dividend %
Earnings Per Share
Adjusted EPS

198.85
515.84
1230.00
10325.44
10325.44

127.88
915.22 127.88
1787.00
25646.48 4165.34
25646.48 4165.34

-194.88
179.58
635.02
1597.49
21183.22
21183.22

-369.00
181.70
17938.14
17938.14

Exhibit 3. Cash flow Account of Interglobe Aviation Ltd.

Interglobe Aviation Ltd. Cash Flow - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14
Mar-13
Profit Before Tax
Adjustment
Changes In working Capital
Cash Flow after changes in Working Capital
Interest Paid
Tax Paid
Other Direct Expenses paid
Extra & Other Item
Cash From Operating Activities
Cash Flow from Investing Activities
Cash from Financing Activities
Net Cash Inflow / Outflow
Opening Cash & Cash Equivalents
Cash & Cash Equivalent on Amalgamation / Take over /
Merger
Cash & Cash Equivalent of Subsidiaries under liquidations
Translation adj. on reserves / op cash balances frgn
subsidiaries
Effect of Foreign Exchange Fluctuations
Closing Cash & Cash Equivalent

Mar-12

Mar-11

Mar-10

477.76
94.35
1130.94
1703.04

993.22
-48.62
981.85
1926.45

63.90 709.45
-5.08
26.27
873.95 268.49
932.78 1004.21

489.05
45.26
198.94
733.25

-107.54

-185.15

-37.11

-132.22

-79.69

1595.50
-2913.78
1284.84
-33.43
144.55

1741.30
-1889.69
36.08
-112.30
257.47

895.67
-46.65
-637.60
211.43
45.60

871.98
-590.21
-272.07
9.71
35.90

653.56
-1377.98
594.64
-129.78
201.72

-0.47
110.64

-0.61
144.55

0.44
257.47

45.60

71.95

Exhibit 4. Balance Sheet of Jet Airways (India) Ltd.

Jet Airways (India) Ltd. Balance Sheet (New) - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-15
Mar-14
Mar-13
Mar-12
EQUITY AND LIABILITIES
Share Capital
Share Warrants & Outstandings
Total Reserves
Shareholder's Funds
Long-Term Borrowings
Secured Loans

Mar-11

Mar-10

113.60
0.00
-4203.88
-4090.28

113.60
0.00
-2341.37
-2227.77

86.33
0.00
-428.86
-342.53

86.33
0.00
1094.53
1180.86

86.33
0.00
2518.01
2604.34

86.33
0.00
2555.65
2641.98

1394.13

551.27

1046.67

1672.18

1763.98

3836.18
23

Unsecured Loans
Deferred Tax Assets / Liabilities
Other Long Term Liabilities
Long Term Trade Payables
Long Term Provisions
Total Non-Current Liabilities
Current Liabilities
Trade Payables
Other Current Liabilities
Short Term Borrowings
Short Term Provisions
Total Current Liabilities
Total Liabilities
ASSETS
Non-Current Assets
Gross Block
Less: Accumulated Depreciation
Less: Impairment of Assets
Net Block
Lease Adjustment A/c
Capital Work in Progress
Intangible assets under development
Pre-operative Expenses pending
Assets in transit
Non Current Investments
Long Term Loans & Advances
Other Non Current Assets
Total Non-Current Assets
Current Assets Loans & Advances
Currents Investments
Inventories
Sundry Debtors
Cash and Bank
Other Current Assets
Short Term Loans and Advances
Total Current Assets
Net Current Assets (Including Current
Investments)
Total Current Assets Excluding Current
Investments
Miscellaneous Expenses not written off
Total Assets
Contingent Liabilities
Total Debt
Book Value
Adjusted Book Value

5213.17

5994.80

5821.93

7101.40

1148.41

365.00

365.00

422.39

7283.97 10060.80
33.63
30.41

247.92
8003.63

214.26
7125.33

125.18
7358.78

98.71
9294.68

96.06
9208.05 13896.98

5427.82 4778.18 4691.77 3744.81 2090.04 1725.55

5811.37 6514.13 4988.81 4484.70 4241.38 1848.00
3644.29 2039.72 1952.59 2094.17 2452.74
52.39
139.53
105.13
79.94
90.83
144.21
14935.87 13471.56 11738.30 10403.62 8874.99 3717.76
18849.22 18369.12 18754.55 20879.16 20687.38 20256.72

16191.75 15820.28 16224.47 19031.49 17940.46 17932.75

5831.34 5056.12 4617.39 5249.04 4324.65 3502.83
1129.20 1129.20
830.04
9231.21 9634.96 10777.04 13782.45 13615.81 14429.92
2.07

31.98

299.60

19.42

696.17 1641.21 1646.01 1645.96 1645.09 1645.00

3433.54 3087.23 2281.37 2108.50 2231.35
15.96
11.16
0.00
0.00
13396.30 14374.56 14704.42 17538.98 17524.23 16374.52

927.02
1374.48
2068.60
318.59
764.23
5452.92

803.76
1209.22
1145.41
240.72
595.45
3994.56

786.67
1184.58
837.07
483.06
758.75
4050.13

778.35
1266.44
497.88
181.19
616.32
3340.18

80.00
711.18
965.77
587.71
429.15
389.34
3163.15

100.00
584.79
810.77
772.83

-9482.95

-9477.00

-7688.17

-7063.44

-5711.84

164.44

5452.92

3994.56

4050.13

3340.18

3083.15

3782.20

1613.81
3882.20

18849.22 18369.12 18754.55 20879.16 20687.38 20256.72

5963.66 6996.67 5657.63 4842.30 4198.86 4165.30
11902.67 10448.32 11248.95 13118.61 13480.40 13896.98
-387.82
-223.87
-113.58
-62.49
96.92
95.80
-387.82
-223.87
-113.58
-62.49
96.92
95.80
24

Exhibit 5. Profit and Loss Account of Jet Airways (India) Ltd.

Jet Airways (India) Ltd. Profit And Loss - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-15
Mar-14
Mar-13
Mar-12
No of Months
INCOME :
Operating Income
Less: Inter divisional transfers
Less: Sales Returns
Less: Excise Duty
Operating Income (Net)
EXPENDITURE :
Increase/Decrease in Stock
Raw Material Consumed
Power & Aircraft Fuel Expenses
Employee Cost
Operating Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Expenses Capitalised
Total Expenditure
Operating Profit (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Extra items
Adjustments to PAT
Profit Balance B/F
Appropriations
Equity Dividend %
Earnings Per Share
Adjusted EPS

12.00

12.00

12.00

12.00

Mar-11

Mar-10

12.00

12.00

20132.13 17805.26 17360.46 15266.17 12933.53 10548.52

20132.13 17805.26 17360.46 15266.17 12933.53 10548.52

6702.05
2243.00
7120.76
1065.56
2040.94
1075.77

7192.54
1899.59
6821.84
955.76
1448.29
971.89

7007.66
1544.24
4926.78
939.51
1358.56
680.78

6648.41
1599.49
4032.13
901.23
1361.67
497.82

4385.38
1339.69
3381.09
573.70
1261.72
299.78

3170.88
1225.28
3132.62
432.29
984.91
338.85

20248.08 19289.91 16457.53 15040.75 11241.36

-115.95 -1484.65
902.93
225.42 1692.17
707.30
411.58
550.58
357.17
195.51
591.35 -1073.07 1453.51
582.59 1887.68
884.06
997.16 1118.98
971.23 1119.71
-292.71 -2070.23
334.53
-388.64
767.97
762.50
875.75
926.57
939.88
910.62
-1055.21 -2945.98
-592.04 -1328.52
-142.65
-758.50
-721.99
106.54
73.19
189.19
-1813.71 -3667.97
-485.50 -1255.33
46.54
-0.12
-19.23
36.85
-1813.71 -3667.85
-485.50 -1236.10
9.69

9284.83
1263.69
153.28
1416.97
993.01
423.96
961.96
-538.00
70.45
-467.55
0.09
-467.64

-28.61
-6108.84
-7951.16

-2440.99
-6108.84

-1955.49
-2440.99

-719.39
-1955.49

-729.08
-719.39

-261.44
-729.08

-159.66
-159.66

-322.87
-322.87

-56.24
-56.24

-143.18
-143.18

1.12
1.12

-54.17
-54.17

25

Exhibit 6. Cash flow Account of Jet Airways (India) Ltd.

Jet Airways (India) Ltd. CashFlow - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-15 Mar-14
Mar-13

Profit Before Tax

Adjustment
Changes In working Capital
Cash Flow after changes in Working Capital
Interest Paid
Tax Paid
Other Direct Expenses paid
Extra & Other Item
Cash From Operating Activities
Cash Flow from Investing Activities
Cash from Financing Activities
Net Cash Inflow / Outflow
Opening Cash & Cash Equivalents
Cash & Cash Equivalent on Amalgamation /
Take over / Merger
Cash & Cash Equivalent of Subsidiaries under
liquidations
Translation adj. on reserves / op cash
balances frgn subsidiaries
Effect of Foreign Exchange Fluctuations
Closing Cash & Cash Equivalent

1813.71 3667.97
2156.18 2606.68
193.95 2038.71
536.42 977.42

Mar-12

Mar-11

Mar-10

-485.50
1745.11
609.32
1868.93

-1255.33
1789.10
1737.67
2271.44

46.54
1757.89
-485.75
1318.68

-467.55
1806.28
330.25
1668.98

-8.39

-56.16

-29.89

-30.83

-0.04

-17.56

528.03
-172.45
304.76
660.34
295.18

921.26
-341.57
-426.63
153.06
142.12

1839.04
1677.24
-3443.55
72.73
69.39

2240.61
293.43
-2610.26
-76.22
145.61

1318.64
13.83
-1297.46
35.01
110.60

1651.42
160.10
-2083.52
-272.00
382.72

955.52

295.18

142.12

69.39

145.61

110.72

Exhibit 7. Balance Sheet of Spicejet Ltd.

Spicejet Ltd. Balance Sheet (New) - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14
Mar-13
Mar-12
EQUITY AND LIABILITIES
Share Capital
Share Warrants & Outstandings
Total Reserves
Shareholder's Funds
Long-Term Borrowings
Secured Loans
Unsecured Loans
Deferred Tax Assets / Liabilities
Other Long Term Liabilities
Long Term Trade Payables
Long Term Provisions
Total Non-Current Liabilities
Current Liabilities

535.28
36.86
-1591.62
-1019.48

484.35
17.49
-726.28
-224.45

441.45
4.39
-593.08
-147.23

14.35
1221.93

201.76
1228.20

88.65
561.79

29.12
110.36
16.02
1391.78

22.53
100.34
11.68
1564.50

13.52
71.87
8.47
744.29

Mar-11

Mar-10

405.38
5.27
-89.54
321.11

241.88
16.34
-600.40
-342.18
34.13
404.16

19.52
5.69
25.21

438.29

26

Trade Payables
Other Current Liabilities
Short Term Borrowings
Short Term Provisions
Total Current Liabilities
Total Liabilities
ASSETS
Non-Current Assets
Gross Block
Less: Accumulated Depreciation
Less: Impairment of Assets
Net Block
Lease Adjustment A/c
Capital Work in Progress
Intangible assets under development
Pre-operative Expenses pending
Assets in transit
Non Current Investments
Long Term Loans & Advances
Other Non Current Assets
Total Non-Current Assets
Current Assets Loans & Advances
Currents Investments
Inventories
Sundry Debtors
Cash and Bank
Other Current Assets
Short Term Loans and Advances
Total Current Assets
Net Current Assets (Including Current
Investments)
Total Current Assets Excluding Current
Investments
Miscellaneous Expenses not written off
Total Assets
Contingent Liabilities
Total Debt
Book Value
Adjusted Book Value

1040.38
1236.14
280.00
5.65
2562.17
2934.47

671.52
805.86
248.15
5.42
1730.95
3071.01

470.13
691.58
205.00
6.57
1373.28
1970.34

268.75
436.89
55.00
2.65
763.29
1109.61

147.48
889.67
985.79

2172.60
295.93

1945.29
151.77

919.61
69.40

127.62
40.87

102.71
35.71

1876.66

1793.52

850.21

86.75

67.00

0.77

1.21

0.06

0.16

324.91

154.85
587.35

0.00
328.56
266.45
2472.44

227.90
262.71
2285.34

469.55
216.21
1536.04

571.70
169.16
827.76

391.92

45.15
155.74
5.06
157.61
98.47
462.02

45.62
105.03
217.08
279.44
138.50
785.67

31.65
20.41
235.91
66.60
79.74
434.30

20.35
17.18
14.00
46.87
183.44
281.84

14.72
18.96
450.70
24.73
84.77
593.87

-2100.14

-945.28

-938.97

-481.45

-295.80

462.02

785.67

434.30

281.84

593.87

2934.47
37.44
1708.92
-19.73
-19.73

3071.01
36.34
1802.19
-5.00
-5.00

1970.34
37.60
1008.58
-3.43
-3.43

1109.61
23.17
85.00
7.79
7.79

985.79
19.57
438.29
-14.82
-14.82

27

Exhibit 8. Profit and Loss Account of Spicejet Ltd.

Spicejet Ltd. Profit And Loss - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14
Mar-13
No of Months
INCOME :
Operating Income
Less: Inter divisional transfers
Less: Sales Returns
Less: Excise Duty
Operating Income (Net)
EXPENDITURE :
Increase/Decrease in Stock
Raw Material Consumed
Power & Aircraft Fuel Expenses
Employee Cost
Operating Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Expenses Capitalised
Total Expenditure
Operating Profit (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Extra items
Adjustments to PAT
Profit Balance B/F
Appropriations
Equity Dividend %
Earnings Per Share
Adjusted EPS

Mar-12

Mar-11

Mar-10

12.00

12.00

12.00

12.00

12.00

6304.23

5600.68

3943.26

2876.97

2181.08

6304.23

5600.68

3943.26

2876.97

2181.08

3255.79
575.70
2732.33
211.38
352.15
25.36

2806.71
526.80
1983.63
198.22
279.15
1.30

2199.07
402.87
1498.56
152.53
270.42
16.63

1228.54
243.93
1017.27
105.82
209.47
12.78

816.58
181.41
722.53
216.35
192.15
26.22

7152.70
-848.46
132.82
-715.64
139.34
-854.98
148.26
-1003.24

5795.80
-195.13
204.46
9.34
116.87
-107.53
83.55
-191.08

4540.08
-596.82
76.09
-520.73
54.04
-574.77
31.00
-605.77

2817.81
59.16
86.95
146.11
11.31
134.80
8.91
125.89

2155.25
25.83
61.01
86.84
11.38
75.46
7.64
67.82

-1003.24

-191.08

-605.77

-1003.24

-191.08

-605.77

125.89
24.74
101.16

67.82
6.37
61.45

-1518.06
-2521.31

-1326.99
-1518.06

-721.22
-1326.99

-822.38
-721.22

-883.82
-822.38

-18.74
-18.74

-3.94
-3.94

-13.72
-13.72

2.50
2.50

2.54
2.54

28

Exhibit 9. Cash flow Account of Spicejet Ltd.

Spicejet Ltd. CashFlow - Standalone - Actual - Abridged- [INR-Crore]
DESCRIPTION
Mar-14 Mar-13
Profit Before Tax
Adjustment
Changes In working Capital
Cash Flow after changes in Working Capital
Interest Paid
Tax Paid
Other Direct Expenses paid
Extra & Other Item
Cash From Operating Activities
Cash Flow from Investing Activities
Cash from Financing Activities
Net Cash Inflow / Outflow
Opening Cash & Cash Equivalents
Cash & Cash Equivalent on Amalgamation / Take
over / Merger
Cash & Cash Equivalent of Subsidiaries under
liquidations
Translation adj. on reserves / op cash
balances frgn subsidiaries
Effect of Foreign Exchange Fluctuations
Closing Cash & Cash Equivalent

Mar-12

Mar-11

Mar-10

-1003.24
265.27
801.47
63.49

-191.08
149.54
-5.30
-46.83

-605.77
51.94
446.16
-107.67

128.17
-19.94
-128.25
-20.02

73.39
-20.81
77.88
130.46

-4.53

-6.98

2.43

-25.50

-3.10

58.96
-49.66
-221.29
-212.00
217.08

-53.81
-741.20
791.41
-3.60
220.41

-105.25
-665.68
977.38
206.46
14.00

-45.52
-118.41
51.90
-112.03
126.03

127.37
-23.95
-2.66
100.76
25.27

-0.03
5.06

0.27
217.08

-0.05
220.41

14.00

126.03

29