AVIATION INDUSTRY

Financial Statement Analysis

Submitted To: Prof. Prachi P

Class / Batch: MBA-N / I Year
Course Name: Financial Accounting for Managers
Date of Submission: 09/08/2017

Submitted By Group 6
Abhishikth Priyatam 1728108
Lawrence Joseph 1728112
Vignesh S -1728123
Sanketh C A 1728124
Vignesh D 1728133
Rajeshwari R 1728155
LIQUIDITY AND EFFICIENCY RATIOS:
The ratios covered under this are to determine the ability of the firm to meet its short run obligations. Hence its more
relevant for short term creditors.

LIQUIDITY RATIOS:

(A) Current Ratio

An important ratio under this category, Current Ratio is defined as:

Current Ratio Total Current Assets

Total Current Liabilities

A Current ratio of >1 implies that company has sufficient liquidity to payback its short term liabilities (debt and payables).

(B) Quick Ratio

This ratio is calculated using Quick Asset and Current Liability. Quick Assets are current assets excluding inventories.

Quick Ratio Quick Assets (Total Current Assets Inventories)

Total Current Liabilities

A Quick ratio of greater than one implies that company has enough cash and other receivables to payback its short term
creditors.

TURNOVER RATIOS:

(A): Fixed Asset Turnover ratio:

The ratio measures a firms efficiency in using its fixed assets to generate revenues. The higher the ratio, better it is for the
Company.

Fixed Asset Turnover Ratio Total Revenues

Total Fixed Assets

(B) Total Asset Turnover ratio:

The ratio measures a firms efficiency in using its total assets to generate revenues. The higher the ratio, better it is for the
Company.

Total Asset Turnover Ratio Total Revenues

Firms Total Assets

(C) Inventory Turnover ratio:

The ratio measures the number of times a companys inventory is turned into sales.

Inventory Turnover Ratio Sales

Inventories

(D) Debtors Turnover ratio:

The ratio measures efficacy of firms credit policy and collection mechanism and shows the number of times each year the
debtors turn into cash.

Debtors Turnover Ratio Sales

Average Debtors

PROFITABILITY RATIOS:

Net Profit ratio:

Net profit ratio (NP ratio) expresses the relationship between net profit after taxes and sales. The ratio indicates what portion
of the net sales is left for the owners after all expenses have been met.

Net Profit Ratio PAT

X 100
 Sales

Operating Profit ratio:

Operating net profit ratio is calculated by dividing the operating net profit by sales. This ratio helps in determining the ability
of the management in running the business.

Operating Profit Ratio EBIT

X 100
Sales

Gross Profit ratio:

Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total revenue and dividing that number by
total revenue. The top number in the equation, known as gross profit or gross margin, is the total revenue minus the direct
costs of producing that good or service.
Gross Profit Ratio Revenue - COGS
Sales
X 100

Return on net worth:

Return on net worth is 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.
Return on net worth Net income
Shareholders equity

Return on capital employed:

Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits
from its capital employed by comparing net operating profit to capital employed.
Return on capital employed Net operating profit
Employed capital

LEVERAGE RATIO/SOLVENCY RATIOS:

These ratios indicate the long term solvency of the firm, as they measure the extent to which the firm is using long term debt.
Hence these ratios are particularly of interest to Long Term creditors.

(A) Earnings per share

Earnings per share (EPS) are the portion of a company's profit allocated to each outstanding share of
common stock. Earnings per share serve as an indicator of a company's profitability.
Earnings per share Net income Dividends
Average outstanding shares

(B) Debt to Equity Ratio

DE ratio indicates the debt financing of the firm w.r.t. its equity. Its calculated as,

DE Ratio Total Debt

Total Equity

(C) Interest Coverage Ratio

Interest Coverage Ratio indicates the firms ability to honor the interest obligation on account of its financial leverage. Its
calculated as

Interest Coverage Ratio EBITDA

Interest
Financial Report
On
SpiceJet

By
Sanketh C A
(1728124)
1MBA - N
ACCOUNTING POLICIES

Significant Accounting Policies

These financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) Notified under Section 133 of the Companies Act, 2013.
The financial statements have also been prepared in accordance with the relevant presentation
requirements of the Companies Act, 2013. The Company adopted Indian AS from 1st April,
2016. Up to the year ended 31st March, 2016, the company prepared its financial statements
in accordance with the requirements of previous Generally Accepted Accounting Principles
(GAAP), which includes Standards notified under the Companies (Accounting Standards)
Rules, 2006.

Basis of Preparation
The financial statements are prepared in accordance with the historical cost convention.

Operating Cycle
All assets and liabilities have been classified as current or non-current as per the companys
normal operating cycle and other criteria set out in the Schedule III to the Companies Act,
2013 and Ind AS 1 Presentation of Financial statements based on the nature of products and
the time between the acquisition of assets for processing and their realization in cash and cash
equivalents
Property, Plant and Equipment Tangible Assets
Property, plant and equipment are stated at cost of acquisition or construction less
accumulated depreciation and impairment, Ind AS 2 Inventories or value in use in Ind AS
36 Impairment of Assets.

1. Significant Accounting Policies (Contd.)

Depreciated in a manner that amortizes the cost (or other amount substituted for cost) of the
assets after commissioning, less its residual value, over their useful lives as specified in
Schedule II of the Companies Act, 2013 on a straight line basis. Land is not depreciated.
DEPRECIATION / AMORTISATION :

a) Depreciation on tangible fixed assets are provided on the ''Straight Line Method'' over
the useful

life of assets as prescribed in Schedule II of the Companies Act, 2013. Further, Parts that
are significant

in cost in relation to the total cost of an asset having a different useful life than the
remaining asset are

depreciated over their respective remaining useful life. Expenditure incurred on

improvements of assets

acquired on operating lease is written off evenly over the balance period of the
lease. Premium on leasehold

land is amortized over the period of lease.

b) Intangible assets are amortized on straight line basis as follows :

i. Landing Rights acquired are amortized over a period not exceeding 20 years.
Amortization period

exceeding 10 years is applied considering industry experience and expected asset usage.

ii. Trademarks are amortized over 10 years.

iii. Computer Software is amortized over a period not exceeding 36 months.

INVESTMENTS :

Current Investments are carried at lower of cost or quoted / fair value. Long Term
Investments are stated

at cost. Provision for diminution in the value of long-term investments is made only if such a
decline is

other than temporary.

INTRODUCTION: (Spicejet Balance sheet)

According to the PL account, the Total revenue of the organization has come down Rs. 5216.74
crores from 5381.83 crores in 2016 when compared to 2015. There is drop in 3.06%. But the
expenses in 2016 have come down to Rs. 4873.24 crores when compared to 2015 which was Rs.
6130.24 crores. They majorly saved in air fuel expenses in 2016 where it was 42.21% less when
compared to 2015. Also, they saved in operating expenses and depreciation which majorly
saved the total expenses of the company.

The Profit before tax in 2016 is 343.51 crores whereas in 2015 they were running under
loss of 748.41 crores. So even though the Revenue reduction happened in 2016 when compared
to 2015, they majorly covered it up in expenses in 2016 when compared to 2015. Thus the
company got into profits whereas in the previous year it was running under loss.
 LIQUIDITY AND EFFICIENCY RATIOS:
Ratios FY FY Analysis
2016 2015
Liquidity Ratios
Current Ratio 0.32 0.25 The General Thumb rule for this ratio is 2:1.
We can see that in 2015 the ratio was 0.25, and
in 2016 it raised to 0.32. It means that in both
the years the company is not able to pay their
current liabilities with the current asset. But the
condition in 2016 was better than previous year.
From balance sheet we can see that the trade
payables (TP), short borrowings etc. have
reduced. TP reduced by 23.18% in 2016 than
previous year. Also, the current investment,
cash and Inventories increased in 2016 when
compared to 2015. Still the company is not at
all in a position to repay its current liabilities.
Quick Ratio 0.29 0.23 Its a supplement of Current ratio. The thumb
rule for quick ratio is 1:1.There is very minor
improvement in 2016 compared to 2015.The
company has improved their ability to convert
its liquid assets into cash. The cash and cash
equivalents we can see in balance sheet that its
increased by 360% in 2016 compared to last
year.
Turnover Ratios
Fixed Asset 2.46 2.49 In the 2016, the ratio came down to 2.46,
Turnover Ratio whereas in 2015 it was 2.49. There are two
reasons for this. This shows that the company
has utilized its fixed assets well in 2016, also
the investment in fixed assets is better in 2016
as when compared to 2015 in terms of plant,
equipment etc.
1) The sales came down in the year 2016
as when compared to 2015.
2) The fixed assets were increased by
37.81% which means the utilization
have reduced accordingly.
Total Asset 12.35 34.32 In 2015 the ratio was 34.32, which came down
Turnover Ratio to 12.35 in 2015. The reason being sales were
went down in 2016 as compared to 2015, also
the effective utilization of total assets werent
happening. The inventory stocks were more in
2016. Also, the company held a lot of cash in
hand as when compared to last year rather than
utilizing it for other operating purposes. The
cash in was 78.34% more in 2016.
Inventory 76.46 115.29 We can see that the ratio in 2016 has come
Turnover Ratio down drastically from 115.29 to 76.46 in 2016
from 2015. The inventories stock has increased
by 32.2% this shows that sales in 2016 has
decreased when compared to 2015. They are
not able to convert inventories into sales faster.
That can be seen in total revenue too. Where
there is reduction in revenue since there is
reduction in sales.
Debtors 61.65 37.50 The ratio in the year 2016 it was 61.65 whereas
Turnover Ratio in the year 2015 it was only 37.50. It shows that
in 2016 the company was efficient enough to
collect their major trade receivables. The
company collected 64.5% better in 2016 as
compared to 2015.

PROFITABILITY RATIOS:
Ratios FY FY Analysis
2016 2015
Operating 8.49% -12.65% In the year 2015, the company was running
Profit ratio loss of 12.65% whereas in 2016 it gained
profit of 8.49%. The major reason being
reduction in fuel expenses which was drastic
in 2016, it was 42.21%. This in turn increased
the profit before tax and hence the ratio.
Net Profit Ratio 8.00% -13.20% The company is running under profits in 2016
@8% whereas in 2015 it was under loss of
13.20%. It shows that the company utilized
working capital effectively in the current year.
Gross Profit 6.18% -15.08% It can be seen that the GPR increased to
Ratio 6.18% in the in the year 2016. The major
reason being the COGS is reduced in 2016.
(The operating expenses in 2016 have
drastically reduced which in turn have
reduced COGS)
Return on net 8.00% -13.20% The Return on net worth has increased from -
worth 13.20% to 8%. The shareholders equity has
been constant for both the years. So the ratio
is varying drastically since net income in 2016
 was
Return on 111.61% -392.72% The ratios in the year 2016 and 2015 are
Capital 111.61% and -392.72% respectively. 2016 the
employed ratio was higher. The company had negative
reserves and surplus in both the year but in
2016 it was 18.25% more than 2015, while
sales have decreased only by lesser margin.

LEVERAGE RATIO/SOLVENCY RATIOS:

Ratios FY FY Analysis
2016 2015
Earnings per 6.79 -11.46 Earnings per share in 2015 were -11.46
Share whereas in 2016 it was 6.79. Since the
company was under loss there were no further
shares outstanding shares. Also this shows the
investors regarding their investments.
Debt to Equity -1.63 -1.12 The ratio has come down to -1.63 in 2016
Ratio when compared to 2015 where it was -1.12. In
both the years the ratio is negative, it means in
both the years the company is not in a position
to repay its debts. Long term borrowings were
reduced in 2016 as when compared to 2015.
The risk investing in the company is very high.
Interest 4.44 -4.20 In 2016, the ratio was 4.44 whereas in 2015 it
Coverage Ratio was -4.20. It shows that in 2015 since the
company was running under loss it was not in a
good position to pay interest for its debts,
whereas in 2016 it gained a drastic difference
in profit range and company was earning
profits which were good sign and hence they
were able to pay the interest on time.
 Financial Report
On
Interglobe Aviation Corporation

BY
Vignesh D
1728133
1 MBA N
Accounting Policy
InterGlobe Aviation Limited (''the Company'') was incorporated on
13 January 2004 as a private limited company. Subsequently, the Company
changed its legal status from a private company to a public company on
11 August 2006. The Company is in the low cost carrier (LCC) segment of
the airline industry in India. The Company had commenced international
operations during the year ended 31 March 2012. The Company got listed
on National Stock xchange (NS) and Bombay Stock xchange (BS) on
10 November 2015.

(i) Basis of accounting and presentation

The financial statements are prepared under the historical cost

convention, on the accrual basis of accounting, in accordance with the
Generally Accepted Accounting Principles in India (''GAAP''), mandatory
accounting standards as notified under section 133 of the Companies Act,
2013, read together with rule 7 of the Companies (Accounts) Rules, 2014,
and the relevant provisions of Companies Act, 2013. All income and
expenditure having a material bearing on the financial statements are
recognised on accrual basis. The financial statements have been presented
based on Schedule III to the Companies Act, 2013.

(ii) Use of estimates

The preparation of financial statements in conformity with GAAP

requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities as at the date of the financial statements, and reported
amounts of income and expenses during the reporting period. Examples of
estimates include useful life of fixed assets, retirement benefits,
provision for inventory obsolescence, provision for redelivery costs,
provision for doubtful trade receivables and loans and advances. Actual
results could differ from these estimates. Any changes in estimates are
adjusted prospectively.
(iii) Fixed assets, capital work-in-progress and depreciation
and amortisation Tangible fixed assets

Owned tangible fixed assets are stated at the cost of acquisition

including incidental costs related to acquisition and installation,
less accumulated depreciation and impairment losses, if any.

The cost of improvements to aircraft have been capitalised

and disclosed separately as leasehold improvement - aircraft.

Capital work-in-progress

Cost of tangible assets not ready for use as at the balance sheet
date are disclosed as capital work-in-progress.

Intangible fixed assets

Intangible fixed assets are recognised only if acquired and it is

probable that the future economic benefits that are attributable to the
assets will flow to the Company and the cost of assets can be
measured reliably. The intangible fixed assets are recorded at cost of
acquisition including incidental costs related to acquisition and
installation and are carried at cost less accumulated amortisation and
impairment losses, if any.

Intangible fixed assets under development

Cost of intangible assets under development as at the balance sheet

date are disclosed as intangible fixed assets under development.

Leased assets

Leased assets under which the Company assumes substantially all

risks and benefits of ownership are classified as finance lease. Other leases are
classified as operating leases.
Depreciation and amortisation

Depreciation on fixed assets, except aircraft and spare engine,

leasehold improvements - leased aircraft, leasehold improvements and
intangible assets, is provided on written down value method at the rates
and in the manner provided in Schedule II of the Companies Act, 2013.
Depreciation on aircraft (including aircraft taken on finance lease) and
spare engine is provided on the straight line method at the rates and in
the manner prescribed in Schedule II of the Companies Act, 2013.

Intangible assets are amortised on a straight line basis over

their estimated useful life of 3 years.

Major inspection costs relating to engine and airframe overhauls

and other heavy maintenance are identified as separate components for
owned and leased aircraft and are depreciated over the expected lives
between major overhauls, estimated to be 4 - 12 years.

Expenditure incurred on improvements to aircraft

(leasehold improvements on leased aircraft) is depreciated on a
straight line basis over the remaining period of the lease of the
aircraft or 5 years, whichever is lower.

Leasehold improvements are depreciated on a straight line basis

over the period of the initial lease.

The useful lives are based on an internal technical evaluation

performed by management and are determined after considering following
factors:

- Expected usage of the asset

- Expected physical wear and tear

- Technical and commercial obsolescence

- Understanding of past practices and general industry experience

 Key Financial Ratios of Interglobe Aviation
Mar- Absolute Percentage
16 Mar-15 Change Change
Profitability Ratios
PBDIT Margin (%) 21.48 16.18 5.3 32.76
PBIT Margin (%) 18.36 14.01 4.35 31.05
PBT Margin (%) 17.52 13.18 4.34 32.93
Net Profit Margin (%) 12.32 9.3 3.02 32.47
Liquidity Ratios
Current Ratio (X) 1.41 1.07 0.34 31.78
Quick Ratio (X) 1.37 1.03 0.34 33.01
Management Efficiency Ratios
Number of Days In Working Capital -51.9 -74.31 22.41 -30.16
Return on Networth (%) 108.47 306.61 -198.14 -64.62
Return on Capital Employed (%) 61.95 48.6 13.35 27.47
Turnover Ratio
Debtors Turnover Ratio 123.36 143.8 -20.44 -14.21
Inventory Turnover Ratio 127.37 106.66 20.71 19.42
Asset Turnover Ratio 3.67 3.7 -0.03 -0.81
Return on Assets (%) 15.28 12.02 3.26 27.12
Solvency Ratio
Earnings per Share 55.22 42,201.40 -42146.18 -99.87
Debt Equity Ratio 1.61 8.49 -6.88 -81.04

Interpretation:
a) Liquidity Ratio: The major indicators of liquidity worsened in the year 2015-
16. The current ratio is increased by 0.34 times, whereas the Quick Ratio is
also increased by 0.34 times, which states that companys current assets as well
as quick assets has decreased in the year 2015-16

b) Turnover Ratio: The major indicators of turnover worsened in the year 2016-
17. The inventories are build up by 20.71 times which suggests a general
slowdown in companys business. There was a fall in companys Asset Turnover
in the year 2015-16 which means company has less per rupee of assets.

c) Profitability Ratio: These ratios measure the ability of the firm to earn profit.
All these ratios are increasing. The increase in Gross profit, net profit and
 operating profit are signs of improvement. Also, the operating profit is based on
the decrease in the operating cost which has led to reduction of operating
ratio.

d) Solvency Ratio: The major indicators of solvency show that companys debt
equity ratio has decreased by -6.88 which means company has more debt than
previous year and less equity than previous year
Financial Report
On
Jet Airways

BY
Vignesh S
1728123
1 MBA
(iv) SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared in accordance with the Generally
Accepted Accounting

Principles in India (Indian GAAP) and complies with Accounting Standards specified
under section 133 of the

Companies Act, 2013 (''the Act'') read with rule 7 of the Companies (Accountants) Rules
2014, to the extent

notified and applicable.

The financial statements are prepared on accrual basis under the historical cost convention,
except for

certain Fixed Assets which are carried at revalued amounts. The financial statements
are presented in Indian

rupees rounded off to the nearest rupees in lakhs.

All assets and liabilities have been classified as current or non-current as per the Company''s
normal

operating cycle and other criteria set out in schedule III to the Act. Based on the nature of
the services

and their realization in cash and cash equivalents, the Company has ascertained its operating
cycle as twelve

months for the purpose of current or non-current classification of assets and liabilities.

- USE OF ESTIMATES :

The preparation of Financial Statements in conformity with generally accepted accounting

principles
requires estimates and assumptions to be made that affect the reported amount of
assets, liabilities and the

disclosure of contingent liabilities on the date of the Financial Statements and the
reported amount of

revenue and expenses during the reporting period. Differences between the actual results
and estimates are

recognized in the period in which the results are known / materialized.

b) REVENUE RECOGNITION :

d) Passenger and Cargo income are recognized on flown basis, i.e. when the services
are rendered.

e) The sales of tickets / airway bills (sales net of refunds) are initially credited to the
Forward

Sales Account. Income recognized as indicated above is reduced from the Forward
Sales Account and the

balance, net of commission and discount thereon, is shown under Other Current Liabilities.

e) The unutilized balances in Forward Sales Account are recognized as income based
on historical

statistics, data and management estimates and considering Company''s refund policy.

d) Lease income on the Aircraft given on operating lease is recognized in the Statement
of Profit and

Loss on an accrual basis over the period of lease to the extent there is no
significant uncertainty about the

measurability and ultimate realization.

D. EXPORT INCENTIVE :

Export incentive available under prevalent scheme is accrued in the year when the right
to receive credit

as per the terms of the scheme is established in respect of exports made and are accounted
to the extent there

is no significant uncertainty about the measurability and ultimate utilization of such duty
credit.

E. COMMISSION :

As in the case of revenue, the commission paid / payable on sales including any over-riding
commission is

recognized only on flown basis.

F. EMPLOYEE BENEFITS :

a) Defined Contribution plan :

A defined contribution plan is a post-employment benefit plan under which entity

pays specified

contributions to a separate entity and has no obligation to pay any future amounts.
Company''s contribution

paid / payable for the year to defined contribution schemes are charged to Statement of Profit
and Loss.

b) Defined Benefit and Other Long Term Benefit plan :

Company''s liabilities towards defined benefit plans and other long term benefit plans
are determined
using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit
Credit Method are

carried out at the balance sheet date. Actuarial gains and losses are recognized in
the Statement of Profit

and Loss in the period of occurrence of such gains and losses. Past service cost is recognized
immediately to

the extent the benefits are vested, otherwise it is amortized on straight-line basis over
the remaining

average period until the benefits become vested.

The employee benefit obligation recognized in the balance sheet represents the present
value of the

defined benefit obligation as adjusted for unrecognized past service cost.

c) Short Term Employee Benefits :

Short-term employee benefits expected to be paid in exchange for the services rendered
by employees are

recognized undiscounted during the period the employee renders services. Such
benefits include salaries,

wages, bonus and ex-gratia.

G. FIXED ASSETS :

a) Tangible Assets :

Owned tangible fixed assets are stated at cost and includes amount added on revaluation less
accumulated

depreciation and impairment loss, if any. All costs relating to acquisition and installation of
fixed assets

upto the time the assets get ready for their intended use are capitalized.
Parts that are significant in cost in relation to the total cost of an asset having a
different useful

life than the remaining asset are identified and accounted as separate components.

The cost of improvements to Leased Properties as well as customs duty / modification cost
incurred on

Aircraft taken on operating lease have been capitalized and disclosed appropriately.

b) Intangible Assets :

Intangible assets are recognized only if acquired and it is probable that the future economic
benefits

that are attributable to the assets will flow to the enterprise and the cost of assets can
be measured

reliably. The intangible assets are recorded at cost and are carried at cost less
accumulated amortization

and accumulated impairment losses, if any.

c) Assets Taken on Lease :

i. Operating Lease: Rentals are expensed with reference to the Lease Term and other

considerations.

ii. Finance Lease / Hire Purchase: The lower of the fair value of the assets and the
present value of

the minimum lease rentals is capitalized as Fixed Assets with corresponding amount
shown as Lease Liability

(Outstanding Hire Purchase / Finance Lease Installments). The principal component of

the lease rentals is
adjusted against the leased liability and interest component is charged to the Statement of
Profit and

Loss.

H. IMPAIRMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable
value. An

impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which
an asset is

identified as impaired. However, any impairment loss on a revalued asset is

recognized directly against the

revaluation surplus held for the asset to the extent that the impairment loss does not exceed
the amount held

in revaluation surplus for the same asset. The impairment loss recognized in prior
accounting periods is

reversed if there has been a change in the estimate of recoverable amount.

I. DEPRECIATION / AMORTISATION :

b) Depreciation on tangible fixed assets are provided on the ''Straight Line Method'' over
the useful

life of assets as prescribed in Schedule II of the Companies Act, 2013. Further, Parts that
are significant

in cost in relation to the total cost of an asset having a different useful life than the
remaining asset are

depreciated over their respective remaining useful life. Expenditure incurred on

improvements of assets

acquired on operating lease is written off evenly over the balance period of the
lease. Premium on leasehold

land is amortized over the period of lease.

c) Intangible assets are amortized on straight line basis as follows :

ii. Landing Rights acquired are amortized over a period not exceeding 20
years. Amortization period

exceeding 10 years is applied considering industry experience and expected asset usage.

iv. Trademarks are amortized over 10 years.

v. Computer Software is amortized over a period not exceeding 36 months.

J. INVESTMENTS :

Current Investments are carried at lower of cost or quoted / fair value. Long Term
Investments are stated

at cost. Provision for diminution in the value of long-term investments is made only if such
a decline is

other than temporary.

K.INVENTORIES :

Inventories are valued at cost or Net Realizable Value (NRV), whichever is lower. Cost of
inventories

comprises of all costs of purchase and other incidental cost incurred in bringing them
to present location

and condition. Cost is determined using the Weighted Average formula. In respect
of reusable items such as

notables, galley equipment and tooling etc., NRV takes into consideration provision for
obsolescence and wear

and tear based on the estimated useful life of the spares and also provisioning for non -
moving / slow moving

items.
 Key Financial Ratios of Jet Airways
Mar- Mar- Absolute Percentage
16 15 Change Change
Profitability Ratios
PBDIT Margin (%) 13.97 3.02 10.95 362.58
PBIT Margin (%) 8.73 -2.03 10.76 -530.05
PBT Margin (%) 5.41 -10.02 15.43 -153.99
Net Profit Margin (%) 5.41 -10.02 15.43 -153.99
Liquidity Ratios
Current Ratio (X) 0.43 0.37 0.06 16.22
Quick Ratio (X) 0.35 0.31 0.04 12.90
Management Efficiency Ratios
Number of Days In Working Capital -99.13 -104.39 5.26 -5.04
Return on Networth (%) -21.92 31.58 -53.5 -169.41
Return on Capital Employed (%) 52.32 -11.84 64.16 -541.89
Turnover Ratio
Inventory Turnover Ratio 20.16 21.11 -0.95 -4.50
Debtors Turnover Ratio 14.71 15.66 -0.95 -6.07
Asset Turnover Ratio 5.59 4.95 0.64 12.93
Return on Assets (%) 5.4 4.55 0.85 18.68
Solvency Ratio
Earnings per Share 103.31 -159.66 262.97 -164.71
Debt Equity Ratio 20.87 21.76 -0.89 -4.09

Interpretation:

a) Liquidity Ratio: The major indicators of liquidity worsened in the year 2015-
16. The current ratio is increased by 0.06 times, whereas the Quick Ratio is also
increased by 0.04 times, which states that companys current assets as well as
quick assets has decreased in the year 2015-16

b) Turnover Ratio: The major indicators of turnover worsened in the year 2016-
17. The inventories are reduced up by 0.95 times which suggests a general
slowdown in companys business. There was a fall in companys Asset Turnover
in the year 2015-16 which means company has less per rupee of assets.
c) Profitability Ratio: These ratios measure the ability of the firm to earn profit. All these ratios are increasing. The increase in Gross
profit, net profit and operating profit are signs of improvement. Also, the operating profit is based on the decrease in the operating
cost which has led to reduction of operating ratio.

d) Solvency Ratio: The major indicators of solvency show that companys debt
equity ratio has decreased by -0.89 which means company has more debt than previous year and less equity than previous year
 Financial Report
On
North Eastern Aviation Corporation

BY
Rajeshwari
1728155
1 MBA N
 ACCOUNTING POLICIES

1. Basis of preparation
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India
(Indian GAAP).

The company has prepared these financial statements to comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013.

The company follows the Mercantile System of Accounting recognizing Income and Expenditure on accrual basis.

The directors have certified that there are no outstanding expenses not provided for and nor there is income which have fallen
due but not accounted for. The accounts are prepared on historical cost basis and as a going concern.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2. Summary of significant accounting policies

From the year ended 31 March 2014, the Schedule III notified under the Companies Act 2013, has become applicable to
the company, for preparation and presentation of its financial statements. The adoption of Schedule III does not impact recognition
and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the
requirements applicable in the current year.

Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although these estimates are based on the managements best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in future periods.

Contingent Liabilities
Contingent Liability are disclosed by way of notes in the Balance Sheet.

Fixed Assets
Fixed Assets are stated at cost. Depreciation of fixed assets is calculated on the basis of useful life of the assets as per Schedule II of
the Companies Act, 2013.

Leases
Lease rentals in respect of operating lease arrangements are recognized as an expense in the profit & loss account on accrual basis
with reference to lease terms and other considerations.

Investment
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term investments. On initial
recognition, all investments are measured at cost.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment
basis. Long-term investments are carried at cost. On disposal of an investment, the difference between its carrying amount and net
disposal proceeds is charged or credited to the statement of profit and loss.

Inventories
Raw materials, components, stores and spares are valued at lower of cost and net realizable value. Work in progress and finished
goods are valued at lower of cost and net realizable value.
 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be
reliably measured.
 FINANCIAL ANALYSIS
A comparative study on the financial statements of North eastern aviation is done for the year 2014-2015 and
2015-2016. The changes are shown below.
 Balance Sheet of North Eastern Carrying Corporation
Mar-16 Mar-15 Absolute Change Percentage Change
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 50.20 50.2 0 0.00
Total Share Capital 50.20 50.2 0 0.00
Reserves and Surplus 22.69 17.05 5.64 33.08
Total Reserves and Surplus 22.69 17.05 5.64 33.08
Total Shareholders Funds 72.89 67.25 5.64 8.39
NON-CURRENT LIABILITIES
Long Term Borrowings 5.04 3.74 1.3 34.76
Deferred Tax Liabilities [Net] 0.00 0.00 0 0.00
Total Non-Current Liabilities 5.04 3.74 1.3 34.76
CURRENT LIABILITIES
Short Term Borrowings 73.26 70.5 2.76 3.91
Trade Payables 4.15 1.00 3.15 315.00
Other Current Liabilities 3.92 1.69 2.23 131.95
Short Term Provisions 7.76 19.01 -11.25 -59.18
Total Current Liabilities 89.09 92.20 -3.11 -3.37
Total Capital And Liabilities 167.02 163.19 3.83 2.35
ASSETS
NON-CURRENT ASSETS
Tangible Assets 18.36 14.77 3.59 24.31
Fixed Assets 18.36 14.77 3.59 24.31
Deferred Tax Assets [Net] 0.49 0.55 -0.06 -10.91
Long Term Loans And Advances 4.19 4.18 0.01 0.24
Total Non-Current Assets 23.04 19.5 3.54 18.15
CURRENT ASSETS
Current Investments 0.01 0.01 0 0.00
Trade Receivables 120.14 113.58 6.56 5.78
Cash And Cash Equivalents 3.24 3.69 -0.45 -12.20
Short Term Loans And Advances 20.58 26.41 -5.83 -22.07
Total Current Assets 143.98 143.69 0.29 0.20
Total Assets 167.02 163.19 3.83 2.35
 Profit & Loss account of North Eastern Carrying Corporation
Mar '16 Mar '15 Absolute Change Percentage Change
Income
Sales Turnover 538.35 530.65 7.7 1.45
Net Sales 538.35 530.65 7.7 1.45
Other Income 1.4 1.28 0.12 9.37
Total Income 539.75 531.93 7.82 1.47
Expenditure
Raw Materials 0 0 0 0.00
Power & Fuel Cost 0 0 0 0.00
Employee Cost 11.37 10.2 1.17 11.47
Other Manufacturing Expenses 493.4 488.72 4.68 0.96
Miscellaneous Expenses 14.31 12.9 1.41 10.93
Total Expenses 519.08 511.82 7.26 1.42
Operating Profit 19.27 18.83 0.44 2.34
PBDIT 20.67 20.11 0.56 2.78
Interest 8.64 8.27 0.37 4.47
PBDT 12.03 11.84 0.19 1.60
Depreciation 3.07 3.31 -0.24 -7.25
Profit Before Tax 8.96 8.53 0.43 5.04
PBT (Post Extra-ord Items) 8.96 8.53 0.43 5.04
Tax 3.32 2.99 0.33 11.04
Reported Net Profit 5.64 5.54 0.1 1.81
Total Value Addition 519.08 511.82 7.26 1.42
Per share data (annualised)
Shares in issue (lakhs) 501.97 501.97 0 0.00
Earning Per Share (Rs) 1.12 1.1 0.02 1.82
Book Value (Rs) 14.52 13.4 1.12 8.36
 Cash Flow of North Eastern Carrying Corporation
Mar '16 Mar '15 Absolute Change Percentage Change
Net Profit Before Tax 8.96 8.54 0.42 4.92
Net Cash From Operating Activities 2.09 1.05 1.04 99.05
Net Cash (used in)/from Investing Activities -6.6 -2.22 -4.38 197.30
Net Cash (used in)/from Financing Activities 4.06 1.65 2.41 146.06
Net (decrease)/increase In Cash and Cash Equivalents -0.44 0.48 -0.92 -191.67
Opening Cash & Cash Equivalents 3.69 3.21 0.48 14.95
Closing Cash & Cash Equivalents 3.24 3.69 -0.45 -12.20
 Key Financial Ratios of North Eastern Carrying Corporation
Mar-16 Mar-15 Absolute Change Percentage Change
Profitability Ratios
PBDIT Margin (%) 3.83 3.79 0.04 1.06
PBIT Margin (%) 3.26 3.16 0.1 3.16
PBT Margin (%) 1.66 1.6 0.06 3.75
Net Profit Margin (%) 1.04 1.04 0 0.00
Liquidity Ratios
Current Ratio (X) 1.62 1.56 0.06 3.85
Quick Ratio (X) 1.62 1.56 0.06 3.85
Debt Equity Ratio 1.07 1.1 -0.03 -2.73
Management Efficiency Ratios
Debtors Turnover Ratio 4.61 4.66 -0.05 -1.07
Number of Days In Working Capital 89.68 86.76 2.92 3.37
Return on Networth (%) 7.73 8.24 -0.51 -6.19
Return on Capital Employed (%) 11.64 11.88 -0.24 -2.02
Asset Turnover Ratio 3.68 3.85 -0.17 -4.42
Return on Assets (%) 3.37 3.39 -0.02 -0.59
 RATIO INTERPRETATION
The interpretation from the the financial analysis over the year 2014-2015 and 2015-2016 are shown below

PBDIT has increased by 1%, this is because of increase in higher increase in PBDIT cost due to increase in other income by 19%
of the company.

PBIT: - PBIT has increased by 13% due to decrease in depreciation amount by 7%. This is because the company follows written
down value method of depreciation.

PBT: - PBT has increased by 3.75% this is because there is decrease in depreciation and increase in interest.

Net Profit Margin: - There is no change in net profit margin because the net profit has been increased by 1% and sales also
has increased by 1%. hence here wont be any change in net profit margin

Return on Net Worth: - Return on net worth has reduced by 6%, this is because there is no change in equity share capital.

Return on Capital Employed: -Return on Capital employed is reduced by 2%. this is because the reserve and surplus of the
company has increased by 33% while sales has increased only by 1%

Debt Equity ratio: - Debt equity ratio of the company is more than 1%, which means that the company have more Debt and
the risk in investing in the company is low

Return on asset: - Return on asset are equal which indicates that there is optimum utilization of asset
 Asset turnover ratio: - Asset turn over ratio has decreased by 1% this is because there is 2.3% increase in net asset and sales
turnover is increased by 1.45%, this indicates that the company is purchasing more asset but there is no effective conversation
of these asset into sales.
Asset turnover is compared with sales and return on asset is compared with income, the income from other sources have gone
up but there is no high change in sales. this is due to the reason why return on asset is same and asset turnover ratio has
reduced.

Current Ratio and quick ratio: - Current ratio and quick ratio is lesser compared to the ideal ratio, there is no higher change
in current ratio and quick ratio because there is no inventory. so the company must concentrate in reducing their current
liability unspecific threw short term borrowings. Also note that the Trade payable of the company has increased by 315%, the
company should also concentrate in reducing this.

Debtor turnover ratio: - Debtor turnover ratio is decreased by 1%, this is because the trade receivables have gone up by 5%
while sales have increased by 1.45%. this indicates that the sale isnt being converted into sales effectively.

No of working days capital: - Operating cycle has been increased by 3days because of 5% increase in trade payable because
of which the companys services are not converted into cash.
Financial Report
On
AIR ASIA
AIR ASIA

Fixed asset evaluation (Plant property , Intangible )

Service potential of 8 years represents the period over which the expected cost of the first major aircraft engine overhaul is
depreciated. Subsequent to the engine overhaul, the actual cost incurred is capitalised and depreciated over the subsequent 8
years.
Service potential of 13 years represents the period over which the expected cost of the first major airframe check is
depreciated. Subsequent to the airframe check
An element of the cost of an acquired aircraft is attributed on acquisition to its service potential, reflecting the maintenance
condition of its engines and airframe.
This cost, which can equate to a substantial element of the total aircraft cost, is amortised over the shorter of the period to
the next checks or the remaining life of the aircraft.
Intangible Assets.
it is technically feasible to complete the intangible asset so that it will be available for use or sale.
management intends to complete the intangible asset and use or sell it;
there is an ability to use or sell the intangible asset;
it can be demonstrated how the intangible asset will generate probable future economic benefits; adequate technical,
financial and other resources to complete the development and to use or sell the intangible asset are available; and
the expenditure attributable to the intangible asset during its development can be reliably measured.

Investments in subsidiaries
In the Companys separate financial statements, investments in subsidiaries, joint ventures and associates are stated at cost
less accumulated impairment losses. Amounts due from associates of which the Company does not expect repayment in the
foreseeable future are treated as part of the parents net investment in associates.
 Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately
to its recoverable amount .
On disposal of investments in subsidiaries, joint ventures and associates, the difference between disposal proceeds and the
carrying amounts of the investments are recognised in profit or loss.

Method of depreciation
Depreciation has been provided on straight line method in terms of expected life span of assets as referred to in Schedule II of
the Companies Act, 2013. In the following category of all assets , the depreciation has been provided on the technical evaluation
of the useful life which is different from the one specified in Schedule II to the Companies Act, 2013.
The residual value and useful life is reviewed annually and any deviation is accounted for as a change in estimate.

Inventories
Inventories which comprise consumables used internally for repairs and maintenance are stated at the lower of cost and net
realisable value. Cost is determined on the weighted average basis, and comprises the purchase price and incidentals incurred
in bringing the inventories to their present location and condition.
Net realisable value represents the estimated selling price in the ordinary course of business, less all applicable variable
selling expenses. In arriving at net realisable value, due allowance is made for all damaged, obsolete and slow-moving items.

Revenue Recognition
Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group commits to
purchase or sell the asset. Financial assets are initially recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at
fair value, and transaction costs are expensed in profit or loss.
 Ratio Analysis of Dabur India Ltd
1) Liquidity Ratios
Types 2017 2016 Analysis
Current ratio 0.97 0.3 The thumb rule for current
ratio is 2:1.In 2016 the firms
ability to cover its current
liabilities with its current
assets was 0.3 and in 2017
the ratio goes up to 0.97 as
compared to 2016 which
implies that the company is
improving their liquidity.
Also by comparing the ratios
with the ideal ratio the
company is having less
current ratio.
Quick ratio 0.564 0.29 The thumb rule for quick ratio
is 1:1.There is a slight
improvement in 2017
compared to 2016.The
company has improved their

2)Turnover Ratios
Sl.No Types
1 Inventory turnover ratio
2 Receivables turnover
ratio
ability to convert its liquid
assets into cash.
2017 2016 Analysis
1.04 0.69 The inventory turnover ratio has
deteriorated from 1.04 times to 0.69
times which means the efficiency in
managing the inventory has
reduced, but still they have an
efficient management of inventory.
7.29 9.21 Here also there is a small decrease
from 9.21 times to 7.29times which
implies that there is a reduction in
 companys ability to collect
amounts due from its customers.
But the ratio indicates that the
receivables are turned into cash at a
relatively good speed.
4 Assets turnover ratio 52.33 44.87 The enterprise is managing its
assets efficiently as the assets
turnover ratio is high. It can also be
observed that there is increase in
assets turnover ratio from
52.33times to 44.87 times which
shows that the efficiency of the
company in managing the assets
has increase.
a) Fixed assets ratio 0.51 0.71 This shows that the company is not
using there fixed assets properly to
generate sales as compared to 2016.
 3)Profitability Ratios (%)
Types 2017 2016 Analysis
Net profit ratio 71.39 37.25 It shows that the
profitability of the
company has
increased.
Operating profit 32.53 25.01 It shows the
ratio operating profit ratio
has increase from
previous years.
Gross profit ratio 36.83 15.70 This indicate that
company profit has
increase
Return on capital 28.90 32.42 It shows that the
employed capital em
Return on net worth 30.34 26.11

4)Solvency Ratios
Types 2017 2016 Analysis
Debt equity .85 .72 The firms debt as compared to equity has
ratio increased from last year
EPS 5.67 5.34 It has increased because profits have
increased as compared to last year
Interest 34.38 56.5 It decreased because the company doesnt
coverage ratio have adequate amount of funds to pay
interest as compared to last year.
 Financial Report
On
Global Vectra Corp

BY
J Abhishikth Priyatham
1728108
1 MBA
Accounting Policy Mar '16
Notes to Financial Statements for the year ended 31st March 2016
(Currency Indian Rupees)

Background

Global Vectra Helicorp Limited (''the Company'') was incorporated in 1998 as a private limited company

and was subsequently listed on 27 October 2006 the Bombay Stock Exchange Limited and the National Stock

Exchange Limited. The Company is mainly engaged in helicopter charter services for offshore transportation,

servicing the oil and gas exploration and production sector in India. The Company is also engaged in

helicopter charter services for onshore transportation.

1 Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these

financial statements.

1.1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting

Principles (GAAP) under the historical cost convention on accrual basis, except for certain fixed assets
which were revalued (at fair value) during the year ended 31 March 2009. GAAP comprises mandatory accounting

standards as prescribed under Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the

Companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a

newly-issued accounting standard is initially adopted or a revision to an existing accounting standard

requires a change in the accounting policy hitherto in use. The financial statements are presented in Indian

rupees.

1.2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles

(GAAP) in India requires the management to make estimates and assumptions that affect the reported amounts of

assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements

and the reported amount of revenues and expenses during the reporting period. The estimates and assumptions

used in the accompanying financial statements are based upon management''s evaluation of the relevant facts

and circumstances as of the date of the financial statements.

Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an

ongoing basis; any revision to accounting estimates is recognized prospectively in current and future
periods.

1.3 Current non current classification

All assets and liabilities are classified into current and noncurrent.

Assets

An asset is classified as current when it satisfies any of the following criteria.

a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal

operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realized within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a

liability for at least

12 months after the reporting date.

Current assets include the current portion of non current financial assets.

All other assets are classified as noncurrent.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for at least

12 months after the reporting date. Terms of a liability that could, at the option of the counter party,

result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non current financial liabilities.

All other liabilities are classified as noncurrent.

Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realization in

cash or cash equivalents.

1.4 Tangible Fixed assets

Fixed assets are stated at cost of acquisition, less accumulated depreciation/amortization and impairment

losses, if any. The cost of an item of tangible fixed asset comprises its purchase price, including import

duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to

its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the

purchase price. During the year ended 31 March 2009, the Company revalued all its leased and owned

helicopters to reflect the current reinstatement cost / market value of the same. These assets are carried at

fair value less accumulated depreciation.

Expenditure incurred on acquisition / constructions of fixed assets which are not ready for their

intended use at each balance sheet date are disclosed under capital work in progress.

Depreciation on tangible fixed assets (including assets acquired under finance leases) except leasehold

improvements is provided on the straight-line method over the useful lives of assets as prescribed under

Schedule
II of the Act which in management''s opinion reflects the estimated useful economic lives of fixed assets

(refer note 10). Leasehold improvements in the nature of hangar and administrative building are amortized over

the primary lease period or the useful life of the assets, whichever is shorter.

Major components of helicopters which require replacement at regular intervals are identified and

depreciated separately over their respective estimated remaining useful life. Accordingly, overhaul costs of

engines are depreciated over 5,000 hours, being their estimated useful life. Depreciation for the year is

recognized in the statement of profit and loss; the amount corresponding to the additional depreciation on

the revalued asset is being transferred from the revaluation reserve to the general reserve.

Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried

at cost are recognized in the Statement of Profit and Loss. In case of disposal of a revalued asset, the

difference between net disposal proceeds and the net book value is charged or credited to the Statement of

Profit and Loss except that to the extent that such a loss is related to an existing surplus on that asset

recognized in revaluation reserve, it is charged directly to that reserve.

The useful life of assets are reviewed by the management at each financial year end and revised if

appropriate. In case of a revision, the unamortized depreciable amount is charged over the remaining useful

life.
1.5 impairment of assets:

Where there is an indication of impairment of the Company''s assets, the Company estimates the

recoverable amount of the asset or a group of assets. The recoverable amount of the asset (or where

applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its

net selling price and its value in use. In assessing value in use, the estimated future cash flows are

discounted to the present values based on an appropriate discount factor. If such recoverable amount of the

asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its

carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an

impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is

an indication that a previously assessed impairment loss no longer exists, the recoverable amount is

reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated

historical cost.

1.6 Maintenance expenditure

Helicopter maintenance expenses including repairs and maintenance that are required to be performed at

regular intervals as enforced by the Director General of Civil Aviation (DGCA) and in accordance with the

maintenance programme laid down by the manufacturers are debited to the statement of profit and loss as and
when incurred.

1.7 Inventories

Inventories comprising of consumables and spares supplies, are valued at lower of cost and net realizable

value. Cost is determined on the basis of weighted average method. Cost of inventory comprises of all cost of

purchase and other incidental cost incurred in bringing the inventories to their present location and

condition.

1.8 Revenue recognition

Service income and reimbursement of expenses is recognized as and when services are rendered in

accordance with the terms of the specific contracts, net of all contractual deductions. Revenue is recognized

net of all taxes and levies.

''Unbilled revenue'' included in ''Other current assets'' represents services rendered for which billing

is pending at the end of the reporting period.

Interest income is recognized on time proportion basis.

 Key Financial Ratios of Global Vectra Corp
Percentage
Mar-16 Mar-15 Absolute Change Change
Profitability Ratios
PBDIT Margin (%) 23.66 25.43 -1.77 -6.96
PBIT Margin (%) 15.13 18.01 -2.88 -15.99
PBT Margin (%) 7.17 14.63 -7.46 -50.99
Net Profit Margin (%) 3.61 6.66 -3.05 -45.80
Liquidity Ratios
Current Ratio (X) 0.42 0.4 0.02 5.00
Quick Ratio (X) 0.3 0.27 0.03 11.11
Debt Equity Ratio 96.34 -12.19 108.53 -890.32
Management Efficiency Ratios
Debtors Turnover Ratio 17.61 18.16 -0.55 -3.03
Number of Days In Working Capital 89.68 86.76 2.92 3.37
Return on Networth (%) 678.32 -230.64 908.96 -394.10
Return on Capital Employed (%) 11.64 11.88 -0.24 -2.02
Asset Turnover Ratio 57.25 74.16 -16.91 -22.80
Return on Assets (%) 2.06 4.94 -2.88 -58.30

Interpretation:
a) Liquidity Ratio: The major indicators of liquidity worsened in the year 2015-
16. The current ratio is increased by 0.02 times, whereas the Quick Ratio is
also increased by 0.03 times, which states that companys current assets as well
as quick assets has decreased in the year 2015-16
b) Turnover Ratio: The major indicators of turnover worsened in the year 2016-
17. The inventories are build up by 20.71 times which suggests a general
slowdown in companys business. There was a fall in companys Asset Turnover
in the year 2015-16 which means company has less per rupee of assets.
c) Profitability Ratio: These ratios measure the ability of the firm to earn profit.
All these ratios are decreasing. The increase in Gross profit, net profit and
operating profit are signs of decline.
d) Solvency Ratio: The major indicators of solvency show that companys debt
equity ratio has decreased by -6.88 which means company has more debt than
previous year and less equity than previous ye
INDUSTRY ANALYSIS
Average Ratios of 2015
Sl.No Ratio SpiceJet North Jet Interglobe AirAsia Global Averag
eastern Airways aviation Vectra e Ratio
carrying Vi S corp
corporation
1) Liquidity -
Ratio
a) Current 0.25 1.56 0.37 1.07 - 0.4 0.65
Ratio
b) Quick Ratio 0.23 1.56 0.31 1.03 - 0.27 0.68
2) Turnover -
Ratio
a) Inventory 115.29 - 21.11 106.66 - - 81.02
Turnover
ratio
b) Fixed asset 2.49 - - - - - 2.49
turnover
ratio
c) Total asset 34.32 3.85 4.95 3.7 - 74.16 24.196
turnover
ratio
d) Debtors 37.50 4.66 15.66 143.80 - 18.16 43.956
turnover
ratio
3) Profitability -
Ratio
a) Gross profit -15.08 3.79 3.02 16.18 - 25.43 6.668
Ratio
b) Net Profit -13.20 1.6 -10.02 9.3 - 6.66 -1.132
ratio
 c) Return on -13.20 8.24 31.58 306.61 - -230.64 20.518
net worth
d) Return on -392.72 11.88 -11.84 48.6 - 11.88 -66.44
Capital
employed
e) Operating -12.65 - - - - -12.65
Profit ratio
4) Solvency -
Ratio
a) Debt -to- -1.12 1.1 21.76 8.49 - -12.19 3.61
Equity ratio
b) Earnings per -11.46 - -159.66 42201.40 - - 14010.
Share 09
c) Interest -4.20 - - - - -4.20
Coverage-
Ratio

Average Ratios of 2016

Sl.No Ratio SpiceJet North Jet Interglobe AirAsia Global Average
eastern Airways aviation Vectra Ratio
carrying Vi S corp
corporation
1) Liquidity
Ratio
a) Current 0.32 1.62 0.43 1.41 0.3 0.42 0.75
Ratio
b) Quick Ratio 0.29 1.62 0.35 1.37 0.29 0.3 0.7033
2) Turnover
Ratio
 a) Inventory 76.46 - 20.16 127.36 0.69 - 56.17
Turnover
ratio
b) Fixed asset 2.46 - - - 0.71 - 1.585
turnover
ratio
c) Total asset 12.35 3.37 5.59 3.67 44.87 57.25 21.18
turnover
ratio
d) Debtors 61.65 4.61 14.71 123.36 9.21 17.61 38.52
turnover
ratio
3) Profitability
Ratio
a) Gross profit 6.18 3.83 13.97 21.48 15.70 23.66 14.13
Ratio
b) Net Profit 8.0 1.04 5.41 12.32 37.25 3.61 11.27
ratio
c) Return on 8.0 7.73 -21.92 108.47 26.11 678.32 134.45
net worth
d) Return on 111.61 11.64 52.32 61.95 32.42 11.64 46.93
Capital
employed
e) Operating 8.49 - - - 25.01 - 16.75
Profit ratio
4) Solvency
Ratio
a) Debt -to- -1.63 1.07 20.87 1.61 0.72 96.34 19.83
Equity ratio
b) Earnings per 6.79 - 103.31 55.22 5.34 - 10.666
Share
c) Interest 4.44 - - - 56.5 - 30.47
 Coverage
Ratio

ANALYSIS
Liquidity Ratio
The Current ratio for the industry has witnessed an increase from 2015 to 2016. Even though there is increase in number but still it tells us that those
organizations in this industry will not be able to meet the short term liabilities promptly but. The quick ratio on the other hand is low as compared to
current ratio which implies low liquidity.
Turnover Ratio -
The inventory turnover ratio for the industry has decreased drastically from 2015 to 2016. This shows that the inventory is moving slow and
generating sales comparatively low as compared to last year. The asset turnover ratio has decreased due to the decrease in sales. The debtors
turnover ratio has decreased which shows that the industry has not efficiently collecting back its trade receivables.
Profitability Ratio
In 2016 almost all the profitability ratio shows a good situation for the firms of the industry. There is increase in gross profit & net profit which
means the companies have operated efficiently. Also, there is increase in return on capital employed, which means the companies are efficiently
utilizing the capital of shareholders.
Solvency Ratio
The debt-equity ratio has increased drastically which means that the company is very much dependent on borrowed funds as compared to last year.
Also, there is increase in interest coverage ratio. Also, there is decrease in EPS, which will make the shareholders of the firms unhappy about it.