ANALYSIS OF CORPORATE PERFORMANCE USING RATIOSA STUDY ON KINGFISHER AIRLINES

A project report submitted in partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration to West Bengal University of Technology by Ruchira Nandi under the guidance of Mrs. Kanika Kundu NSHM College of Management & Technology Kolkata

Certification of approval

This project report submitted in partial fulfillment of the requirement for the award of the degree of Bachelors of Business Administration to West Bengal University of Technology is a record of bonafide study carried out by Ankita Misra Under my supervision and guidance and that no part of this project has been submitted for the award of any other degree/diploma/fellowship or similar titles or prizes. Faculty Guide Signature: Name: Mrs. Kanika Kundu Signature and seal of the learning institution:

Students declaration

I, Ankita Misra Do hereby declare that the project conducted on the corporate performance of kingfisher airlines using ratios Under the guidance of Faculty Guide Mrs. Kanika Kundu Submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration To West Bengal University of Technology Is my original work and the same has not been submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes. Signature:

Acknowledgement

This project study is the outcome of lot of contribution and motivation of many people. I sincerely acknowledge and thank all the people who are instrumental in supporting, assisting and guiding me in preparing the project. I am thankful to all my mentors and all my faculty members, especially to our guide Kanika Kundu Mam and our Finance teacher Somnath Bannerjee Sir who have guided all through the making of my projects. Last but not the least, I am thankful to all my friends, parents and relatives who have supplemented my study and work with their priceless inputs, specially to my friends: Ankita Misra Sharad Kiyal Tridev Bannerjee Abhinav Kumar Das who have always helped me out with their valuable time information and support towards the completion of this project.

Contents
1. Introduction 2. Executive Summary 3. Company Profile 4. Objective of the study 5. Methodology 6. Analysis and presentation 7. Facts and figures 8. Limitations 9. Bibliography PgPgPgPgPgPgPgPgPg-

Introduction
In the present era of emerging intense global competition, organizations are facing increasingly knowledgeable and demanding customers and active shareholders which have changed the competitive environment from competition based on ability to invest in and manage physical assets to competition based on knowledge and the ability to exploit intangible and soft assets. In this changed business paradigm relying on only the financial measures, which are considered as the indicators of short-run performance, to measure the corporate performance is puzzling and often misleading. A critical analysis of the financial statements using ratios like Liquidity ratios, Profitability ratios and Turnover ratios, we can get a clear picture of the corporate performance. The corporate performance of a company depends upon the key performance indicators (KPIS) such as revenue, return on investment (ROI), overhead and operational cost. In this study we have analyzed the ratios and tried to figure out the present position of Kingfisher Airlines.

Executive summary
In this project we have made a thorough study on the Kingfisher Airlines company profile. Then we have projected its financial ratios and tried to analyze its present position. Then we have plotted the information in graphs showing the companys trend over the period of five years. Then we have tried to recommend some points to revive its lost position and arrived at a conclusion.

Company profile

Kingfisher Airlines is India`s first and only 5-Star airline, rated by Skytrax, and the only company to offer a premium first class service on domestic routes. Besides being the first and the only airline to offer in-flight entertainment on every seat in the domestic skies. Kingfisher Airlines is a private airline based in Bangalore, India. Currently, it

holds the status of India's largest domestic airline, providing worldclass facilities to its customers. Kingfisher Airlines has received numerous awards for innovation, customer responsiveness and was voted the ~Best New Airline of the Year~ within months of its launch. Kingfisher Airlines offers LIVE TV with 16 channels of live & exciting content. Kingfisher Airlines is part of The UB Group which is one of India`s largest conglomerates with diverse interests and a global presence. The UB Group is also the largest Indian manufacturer of beverage alcohol (beer & spirits) and the second largest drinks Group in the world. Kingfisher Airlines Ltd is the largest charter aviation company in India. Their principal activity is to provide commercial passenger airline and private helicopter and airplane chartering services in India. Objective of Company: Kingfisher Airlines objective of profitable growth is intertwined with its ability to be consistently safe, reliable and customer friendly in its operations, supported by a world class Board of Directors.

Board of Directors:

Dr Vijay Mallya - Chairman, Kingfisher Airlines Dr. Vijay Mallya holds a PhD in Business Administration, is a well known industrialist and a Member of Parliament (Council of States). He took over the reins of UB Group at the young age of 28 and has been instrumental in growing it into a multinational business conglomerate. He is the Chairman of the UB Group and several other public companies in India and abroad and has won wide recognition from distinguished institutions. He has received several professional awards both in India and overseas. Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The Netherlands-based Mol Family and Dr. Mallya have formed a consortium that is now the joint owner of Force India Formula One, which is also Indias first-ever Formula One Team and represents Indias first, truly global sports foray. He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only participates in various sporting events but also supports various sporting activities worldwide and cultural activities by steering varius sponsorships. He has won trophies on the professional car racing circuits and is a keen Yachtsman and aviator. Amongst his museum collection of

historic rare automobiles are Jaguars, Ferraris, Alfa Romeos and Mercedes Benz. He has achieved the following: Conferred a Doctorate of Philosophy in Business Administration, by the Southern California University, Irvine. Nominated as a Global Leader for Tomorrow by the World Economic Forum. Conferred Frances highest civilian honour Officier de la legion d Honneur for his exceptional career as businessman heading a multinational with diversified interests. The establishment of the Mallya Hospital in Bangalore, India with charity ward. The establishment of the Mallya-Aditi Intrnational School in Bangalore, India, with a section for subsidized education. Sponsorships of sporting events for the physically handicapped and poor. Contributions to: The Victoria and Albert Museum, London; Prince's Youth trust; and the Duke of Endinburgh Awards Scheme.

Mr. Subhash Gupte - ViceChairman, Kingfisher Airlines

Before joining the UB Group ten years ago, Mr. Gupte has spent over 25 years in the civil aviation industry and has served as the acting Chairman and Managing Director of Air India. He came on board Kingfisher Airlines as a strategic direction provider to the company.

Mr. A. K. Ravi Nedungadi - Group Finance Director Mr. A. K. Ravi Nedungadi a Chartered and Cost Accountant joined the UB Group in 1990 as the Corporate Treasurer. Within two years, he became the Group Finance Director of the Group's international business managing the businesses of UB International, which included the paint giant Berger Jenson and Nicholson, spanning 27 countries. As the principle leadership resource of UB Group, he was instrumental in concluding the acquisition of Shaw Wallace & Co, Bouvet Ladubay, Whyte & Mackay, Air Deccan, etc. and has been deeply engaged with the creation of Kingfisher Airlines Ltd. he is a recipient of many awards of excellence including the Udyog Ratan Award, CNBC TV18's - CFO of the Year - M & A, etc. and is on the Board of several companies, both in India and overseas.

KINGFISHER AIRLINES LIMITED (Formerly DECCAN AVIATION LIMITED)

With the merger of Kingfisher Airlines and Deccan, the airline covers all segments of air travel from low fares to premium fares and offers the maximum number of flights offered by any single airline network in India. The combined entity now connects 64 cities and has 442 daily departures. Their business unit Air Deccan, is India's low cost carrier. Kingfisher Airlines Ltd was incorporated in June 15, 1995 as a private limited company with the name Deccan Aviation. The company was promoted by G R Gobinath, K J Samuel and Vishnu Singh Rawal. In January 2005, the company was converted into a public limited company. The Airline business of Kingfisher Airlines Ltd merged with the company with effect from April 1, 2008 and the name of the company was changed to Kingfisher Airlines Ltd.

Milestones: In September 1997, the company opened their first base at Jakkur and launched their first Helicopter. In June 1998, they opened their second base in Hyderabad and in December 1998, they commenced offshore flying operations.

 In June 2001, the company introduced first fixed wing aircraft and in November, they introduced the second fixed wing aircraft. In August 2003, first Air Deccan flights take place on Bangalore to Hubli and Bangalore to Mangalore. In December 2003, the company incorporated Deccan Aviation (Lanka) Pvt Ltd, which is a joint venture company. The company was established as a 52% subsidiary company to undertake helicopter services and airline operations in Sri Lanka. In August 2004, they introduced first Airbus A 320. In March 2005, Air Deccan, entered into tie up arrangement with Club HP. In June 27, 2005, Deccan Aviation (Lanka) Pvt Ltd ceased to be a subsidiary consequent to the transfer of 4% of their share to Srilanka nationals. In March 2007, they forayed into Air Cargo Business through a wholly owned subsidiary. The company hived off Charter Services into a separate entity and also transfers the Maintenance and Repair Facility into a separate entity. Owned by Vijay Mallya of United Beverages Group, Kingfisher Airlines started its operations on May 9, 2005, with a fleet of 4 brand

new Airbus - A320, a flight from Mumbai to Delhi to start with. The airline currently operates on domestic as well as international routes, covering a number of major cities, both in and outside India. In a short span of time, Kingfisher Airlines has carved a niche for itself in the civil aviation industry. History: Kingfisher Airlines proved to be a stiff competition for other domestic airlines of India, with its brand new aircraft, stylish red interiors, stylishly dressed cabin crew and ground staff. The airline introduced in-flight entertainment (IFE) systems, for the first time to Indian consumers. The IFE systems were provided on every seat, even on the domestic flights. The airline offers attractive services to its on board passengers. Years following its inception proved to be beneficial for the airline, in terms of its booming business, with a good track record of customer satisfaction. However, it faced a worsening economic scenario in 2008. Kingfisher Airlines Creates Aviation History by flying in the Airbus A380 to commemorate its second anniversary. The world`s biggest and most advanced aircraft arrives in New Delhi on its maiden visit to India New Delhi, May 7, 2007Kingfisher Airlines Limited, India`s favourite airline today added another feather to its cap with the arrival of the Airbus A380 at New Delhi`s Indira Gandhi International Airport. The Airbus A380 is on its maiden visit to India and arrived here on the eve of the second anniversary

celebrations of Kingfisher Airlines Limited. The visit of the world`s largest and most advanced passenger airplane, which is widely regarded as the future of aviation, marks a momentous milestone in the history of civil aviation in India

Recession: In 2008, due to the prevalent economic downturn, the civil aviation industry faced the worst period in its history. It was the time, when air passenger traffic started dripping, and the aircraft fuel prices went sky rocketing. As a result, Kingfisher Chairman Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced an alliance, after a meeting. According to the alliance, both the airline companies decided to implement code-sharing on both domestic and international flights. It was a step to reduce the expenses. Subsequently, frequent flier programs were announced by both the airlines, namely King Club and Jet Privelege. Unique Services: Kingfisher Airlines offers several unique services to its customers. These include personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft, sleeperette seats with extendable footrests, and three-course gourmet cuisine.

Fleet: Kingfisher Airlines was the first airline in India to operate with all new aircrafts. It was also the first airline in the country to order the Airbus A380. Kingfisher Airlines currently operates ATR 42, ATR 72 and Airbus A320 aircraft for domestic and Airbus A330s for international services. In the present time, the airline operates with a fleet of 74 aircrafts, which include 25 Airbus A320-200 aircraft, 6 ATR 42-500, 27 ATR 72-500, 3 Airbus A319-100, 8 Airbus A321-200 5 Airbus A330-200. Delivery of A380s is due in 2010 and A350s in 2012. Destinations: Kingfisher Airlines flies regular flights from the major cities of India, including Delhi, Mumbai, Bangalore and Kolkata. The airline also covers regional destinations from the four zones of India, including Chennai, Hyderabad, Pune, Port Blair, Rajahmundry, Tirupati, Vijayawada, Visakhapatnam, Agartala, Dibrugarh, Guwahati, Jorhat, North Lakhimpur, Silchar, Patna, Chandigarh, Raipur, Goa, Ahmedabad, Bhavnagar, Bhuj, Kandla, Dharamsala, Kullu, Simla, Jammu, Leh, Srinagar, Jamshedpur, Ranchi, Hubli, Mangalore,

Calicut, Cochin, Trivandrum, Agatti, Indore, Jabalpur, Aurangabad, Kolhapur, Latur, Nagpur.

Objective of the study

The objective of the study is: To find out the values of the accounting ratios. To analyze the ratios assuming that there is a relationship between certain aspects of the activities of the firm as revealed in its income statement and balance sheet. To compare the company ratios with the industry average. To provide some recommendations based on the analysis.

Nanded, Nasik, Solapur, Imphal, Aizawl, Dimapur, Bhubaneswar, Amritsar, Jaipur, Jodhpur, Udaipur, Coimbatore, Madhurai, Trichi, Tuticorin, Dehradun, Lucknow, Varanasi and Siliguri are the other regional destinations covered by Kingfisher Airlines. The airline also plies flights to Dhaka and Colombo. The airline is soon going to ply flights from Kolkata to Bangkok. It will also provide its passengers to take a flight from Mumbai to international destinations including Singapore, Hong Kong, Bangkok, Colombo and Dubai. It is also going to start flights from Delhi to London, Dubai and Bangkok. The airline is planning to increase its international presence, by plying flights to Kuala Lumpur, Mal, Lahore and Karachi. According to the Individual - Audited financial statement for the Year 2011, Total net operating revenues increased 23.23%, from INR 5,271.04 tens of millions to INR 6,495.56 tens of millions.

 Operating Results increased from INR -794.88 tens of millions to INR 86.43 tens of millions. The net income of the period decreased -224.70% reaching INR -5,348.47 tens of millions at the end of the period against INR -1,647.22 tens of millions last year. Return on equity went from -42.56% to -173.82%, Return On Asset went from -40.65% to -130.26% Net Profit Margin went from -31.25% to -82.34% when compared to the same period last year. Debt to Equity Ratio was 133.44% compared to 104.69% the previous year. Current Ratio went from 1.16 to 0.72 when compared to the previous year.

METHODOLOGY
The steps that we have undertaken while making this project are as follows: The financial statements like Balance sheet and P/L account from the annual reports of Kingfisher Airlines of 5 years have been collected. Then the key financial ratios like Profitability ratios, Liquidity ratios and Turnover ratios have been calculated and graphically represented. Then analysis of the ratios is done. Some recommendations based on our analysis is thus provided.

ANALYSIS AND PRESENTATION

relationship between certain aspects of the activities of the firm as revealed in its income statement and balance sheet. The ratio analysis also assumes a careful selection of those ratios that provide an insight into the performance of a business. Here we have calculated profitability ratios,liquidity ratios and turnover ratios of the Kingfisher Airlines over a period of 5 years. Profitability Ratios Profitability Ratios quite simply put, measure the profitability of the company. Profits by themselves are absolute numbers. Comparing profits for two different companies in the same industry will not help given that there could be world of differences between the 2 companies even if they are in the same industry. To give an example, while the profits of my neighbour grocer would be say 30,000 a year as compared to say 3 million that a Tesco or an Asda makes, it would be myopic to say that Tesco or Asda is more profitable. To be able to make an informed comparison, profitability ratios would help.

Operating Ratio This is the ratio of the cost of goods sold plus the operating expenses to net sales. Operating ratio = cost of goods sold+ operating expenses

Net sales Jun '07 Mar '08 Mar Mar Mar '09 '10 '11

Year Operating Margin(%)

Profit -14.57 -22.3

-10.5 6.32

15.14

OPERATING PROFIT MARGIN(%) OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

The Ratio shows what percentage of net sales is eaten away by the cost of goods sold and operating expenses.The balance part is covered by the non-operating expenses and the remaining portion is profit. Gross Profit margin

This ratio shows the amount of gross profit made out of the total net sales.The relation between gross profit and sales is expressed in percentage. Gross profit margin= Gross profit Net sales Jun '07 Mar '08 Mar '09 Mar '10 Mar '11 11.88

Year Gross Margin(%)

Profit -14.56 -23.58 -13.02 3.1

GROSS PROFIT MARGIN(%) OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

The higher the gross profit margin,the greater is the profitability of the firm,other factors remaining constant.

 Net Profit Ratio This ratio indicates the portion of the sales that is left to the firm after all costs, charges and expenses have been deducted.It is, thus, extremely useful to the firm as it is an indication of cost control and sales promotion.this ratio is a guide to the efficiency or otherwise of operating the firm. Net profit ratio= Net profit/operating profit Net sales Jun '07 Mar '08 Mar '09 Mar '10 Mar '11

Year

Net Profit -22.92 -12.5 Margin(%)

-27.43 -32.04

-15.99

NET PROFIT MARGIN(%) OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

Above chart pictures that the company is having constant losses over the years the margins are different but still the there is not net profit over the past five years.

Liquidity Ratios Liquidity refers to the ease in marketability of the assets of a

company. For high liquidity it is essential that assets should be easily marketable without losing out on the expected or the book price of the assets. Due to this very nature of liquid assets, these assets are easily bought and sold and are characterized by a high level of trading in these assets. From perspective of Kingfisher Airlines, the more the liquidity, the more easily a company can pay for expenses on its day to day operations. Even for capital expenditures, having high liquidity ensures that there are enough funds, to incur such expenses without resorting to expensive financial borrowings or issue of shares.The liquidity perspective can be shown in 2 ways:

Current Ratio

It is the ratio of the current assets to current liabilities.as the ratios is connected with the working capital(current assets less current liabilities), it is also called working capital ratio.This ratio is the indicator of the short-term liquidity position of a firm.

Current ratio= current assets current liabilities Jun '07 0.8 Mar Mar '08 '09 0.97 0.64 Mar '10 0.78 Mar '11 1.22

Year Current Ratio

CURRENT RATIO OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

The conventional ratio is taken as 2 :1 (i,e every current liability of Re. 1 should be backed by a current asset of Rs. 2). Inspite of scatter lines in current ratio chart, it is to noticed that current ratio is positive throughout the evaluation period. On the other hand it may also be said that Kingfisher Airlines is ensuring that the business is being managed with the funds of outsiders. Its own funds are not locked in specifically to service liabilities indicating optimum allocation, yet

risky allocation of resources. This ups and down trend in current ratio signifies the mismanaged assets and liabilities during the period.Here the which is too low indicating company may not have funds to meet its short term liabilities.

Liquid or Quick or acid test ratio This ratio is the ratio of quick assets to quick liabilities. Liquidity ratio= Quick assets Quick liabilities Quick assets=current assets less stocks Quick liabilities=current liabilities less bank over draft Jun '07 2.2 Mar Mar '08 '09 0.88 0.52 Mar '10 0.58 Mar '11 0.62

Year Quick Ratio

QUICK RATIO OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

The conventional ratio is 1:1,i.e every rupee of short term liabilities must be backed by equivalent liquid assets. The quick ratio, has mirrored the position where the assets are decreasing at faster pace and liabilities are increasing. This means that in case of a payout required, there are not enough liquid assets with Kingfisher Airlines to make the payments for contingencies. Here it is too low compared to standard ratio because company may have a cash flow problem.

Turnover Ratios Debtors Turnover Ratio This ratio shows the number of days for which the credit is outstanding in the value of the amounts owed by the debtors. It gives an indication of the efficiency or otherwise of the credit and collection polices of the firm. Debtors turnover ratio = Average debtors Average daily credit sales Average debtors = Opening debtors+closing debtors 2 Average daily credit sales= Total credit sales for the year 365

Year

Jun '07

Mar '08 46.6 7

Mar '09

Mar '10

Mar '11 16.34

Debtors Turnover 74.5 Ratio 3

41.01 18.35

DEBTORS TURNOVER RATIO OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

Debtors are recovered in a better fashion at from time to time. But this might indicate that company is reducing the contracts and having lesser debtors over the years and thereby the ratio of debtors turnover ratio is improving.

Inventory Turnover Ratio Inventory turnover ratio indicates the number of times the stock is turned over on an average, and must be replaced during a given

accounting period. It is ascertained by dividing the cost of goods sold by the average inventory. Inventory Turnover Ratio= Opening stock+12 months figures-End Stock . 13

Year Investments Turnover Ratio

Jun Mar Mar '09 Mar '10 Mar '11 '07 '08

28.8 --

5,738.39 4,659.30 4,185.44

INVENTORY TURNOVER RATIO OF KINGFISHER AIRLINES FOR THE LAST 5 YEARS

The higher the stock turnover ratio, the shorter is the average time between investment in stock and the sales transaction. On the other hand, a low stock turnover is an indicator of bad buying, accumulation of obsolete stock, or the carrying of excess stock.

Creditors Turnover Ratio This ratio measures the promptness or otherwise with which payment is made to creditors for credit purchase.It is measured as Creditors Turnover Ratio= Average creditors Average daily purchase

A low ratio indicates that the creditors are paid promptly which enhances the goodwill of the firm. A high ratio signifies the delay in liquidating the claims of the creditors.

Capital Gearing Ratio It Shows extent of fixed financial obligation of a firm.This ratio indicates the relation between fixed income-bearing capital and variable income bearing capital.

Kingfisher Company indicating its ratio of 4.028 which reflects that high proportion of funds is obtained from borrowings.

LIMITATIONS
The ratios analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from serious limitations. 1. Limitations of financial statements: Ratios are based only on the information which has been recorded in the financial statements. Financial statements themselves are subject to several limitations. Thus ratios derived, there from, are also subject to those

limitations. For example, non-financial changes though important for the business are not relevant by the financial statements. Financial statements are affected to a very great extent by accounting conventions and concepts. Personal judgment plays a great part in determining the figures for financial statements. 2. Comparative study required: Ratios are useful in judging the efficiency of the business only when they are compared with past results of the business. However, such a comparison only provide glimpse of the past performance and forecasts for future may not prove correct since several other factors like market conditions, management policies, etc. may affect the future operations. 3. Problems of price level changes: A change in price level can affect the validity of ratios calculated for different time periods. In such a case the ratio analysis may not clearly indicate the trend in solvency and profitability of the company. The financial statements, therefore, be adjusted keeping in view the price level changes if a meaningful comparison is to be made through accounting ratios. 4. Lack of adequate standard: No fixed standard can be laid down for ideal ratios. There are no well accepted standards or rule of thumb for all ratios which can be accepted as norm. It renders interpretation of the ratios difficult.

5. Limited use of single ratios: A single ratio, usually, does not convey much of a sense. To make a better interpretation, a number of ratios have to be calculated which is likely to confuse the analyst than help him in making any good decision. 6. Personal bias: Ratios are only means of financial analysis and not an end in itself. Ratios have to interpret and different people may interpret the same ratio in different way. 7. Incomparable: Not only industries differ in their nature, but also the firms of the similar business widely differ in their size and accounting procedures etc. It makes comparison of ratios difficult and misleading.

ANNEXURES-I
Balance Sheet of Kingfisher Airlines

Balance Sheet

------------------- in Rs. Cr. ------------------Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 135.47 135.47 0 0 249.23 0 384.7 716.71 200 916.71 1,301.4 1 Mar '07 135.8 135.8 10.09 0 52.99 0 198.88 592.38 342 934.38 1,133.2 6 Mar '08 362.91 265.91 8.11 97 -2,496.36 0 -2,125.34 2,622.52 3,043.04 5,665.56 3,540.22 362.91 265.91 7.48 97 -4,268.84 0 -3,898.45 4,842.43 3,080.17 7,922.60 4,024.15 1,050.88 497.78 2.95 553.1 -4,005.02 0 -2,951.19 5,184.53 1,872.55 7,057.08 4,105.89

Mar '09

Mar '10

Mar '11

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets 340.77 33.74 307.03 357.62 0.41 61.62 35.24 422.05 518.91 149.77 395 1,063.6 8 0 449.15 6.94 456.09 607.59 28.75 1,301.4 0 322.33 43.55 278.78 346.25 0 48.64 27.16 5.84 81.64 832.49 274.29 1,188.4 2 0 687.31 9.52 696.83 491.59 16.64 1,133.2 6 1,891.80 316.29 1,575.51 1,630.95 0.05 147.25 229.84 49.41 426.5 3,640.42 122.45 4,189.37 0 3,814.63 45.55 3,860.18 329.19 4.51 3,540.21 2,048.14 493.62 1,554.52 980.61 0.05 164.88 322.49 50.91 538.28 4,604.31 155.56 5,298.15 0 3,908.03 46.77 3,954.80 1,343.35 145.64 4,024.17 2,254.26 682.37 1,571.89 673.35 0.05 187.65 440.53 88.18 716.36 5,380.19 164.18 6,260.73 0 4,463.86 62.11 4,525.97 1,734.76 125.84 4,105.89

ANNEXURES-II

Key Financial ratios of kingfisher Airlines

Mar '11

Mar '10

Mar '09

Mar '08

Jun '07

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw

10.00 -18.97 125.22 -82.99 5.48 15.14 11.53 11.88 -11.70 -11.70 -15.99 -15.99 21.72 28.27 --72.99 -72.99 23.71 1.22 0.62 --0.80 -0.48 0.66 4,185.44 16.34 4,185.44 2.83 1.54 2.83 --100.19 0.90 --

10.00 -12.05 190.59 -166.01 10.26 6.32 3.06 3.10 -22.43 -22.43 -32.04 -32.04 4.35 39.70 --156.01 -156.01 7.98 0.78 0.58 --0.17 -0.17 0.36 4,659.30 18.35 4,659.30 2.53 1.27 2.53 --95.42 0.80 --

10.00 --20.80 198.16 -94.05 10.26 -10.49 -11.70 -13.02 -24.58 -24.58 -27.43 -27.43 -3.68 71.98 --84.05 -84.05 -7.90 0.64 0.52 ---0.19 -0.02 0.29 5,738.39 41.01 5,738.39 2.85 1.51 2.85 --22.49 0.97 --

10.00 --23.95 107.24 2.68 20.09 -22.32 -22.82 -23.58 -14.38 -14.38 -12.50 -12.50 -27.63 -109.29 -147.04 12.68 12.68 -36.52 0.97 0.88 4.95 3.54 -6.22 4.95 -0.64 0.65 -46.67 --1.29 4.61 --91.14 3.00 --

10.00 --19.37 132.89 15.46 20.14 -14.57 -15.30 -14.56 -21.95 -38.34 -22.92 -40.74 -21.23 -109.07 -209.52 26.27 26.27 -36.27 0.80 2.20 2.38 0.98 -8.10 2.38 -0.50 0.19 29.70 74.53 28.80 3.06 1.39 5.37 --121.50 2.55 --

Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

10.57 13.35 ------

13.55 13.79 ------

12.97 4.54 ------

5.83 3.42 ------

0.99 18.56 ------

Mar '11

Mar '10

Mar '09

Mar '08

Jun '07

Earnings Per Share Book Value

-20.64 -70.46

-61.95 -150.54

-60.50 -83.88

-13.85 13.90

-30.97 28.40

Sites: www.moneycontrol.com www.google.co.in www.kingfisherairlines.com http://indianaviationnews.net/

Books: Fundamentals of Financial Management By Bhabatosh Banerjee