analysis kingfisher

8/10/2019 Analysis Kingfisher

1/113

1 Current Assets

2 Current Liabilities

3 Ratio 1/2

4 Working Capital

Notes:-

1

2 Current ratio is calculated to assess the solvency and liquidity of the Company.

3 Best Current Ratio is 2:1 or 2.

4

Current ratio is below the prescribed benchmark all these Financial Years.It is at alrming level which

indicates that Company is ot in a position to finance its day to day operations.

5 It has gone from bad to worse in FY 2012-13 as compared to FY 2011-12.

6 Company is not performing better on the front of solvency and liquidity.


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2011-12

161,884

843,594

0.19

(681,711)

Current Liabilities are inclusive of provisions also.


3/113

2012-13

86,529

881,263

0.10

(794,735)


Financial Year

Rupees in Lakhs


4/113

2013-14

#DIV/0!

-



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Brief Description:-

All types of Current Assets are not equally liquid and all types of current liabilities

are not repayable with the same degree of quickness. Hence discrimination can

be made among different

components of current assets and current liabilities.

Components of current assets can be discriminated on the basis of ease with

which these can be converted into cash without suffering any shrinkage in thevalue of that Current asset.

Components of current liabilities can be discriminated on the basis of relative

quickness with which each individual component of current liability matures for

payment.

This discrimination can be expressed by assigning proper weight against each

component of current assets and current liabilities. Nature and type of business

has to be considered while

assigning weights.

Once these weights have been assigned to current assets and current liabilities,these are to be multiplied by their respective weights in order to get the product.

After calculating this

product for both, current assets and current liabilites, current ratio has to be

calculated for these weighted current assets and weighted current liabilities as

follows:-

Weighted Current Assets/Weighted Current Liabilities= Weighted Current Ratio

Weighted Current ratio is more representative and dependable than the ordinary

current ratio.

Weighted Current ratio is always lesser than ordinary current ratio since it makes

discrimination among various components of current assets and current

liabilities on the basis of respective

liquidity and urgency of payments.

Weights assigned are as follows:-

Current Assets:-

Raw Material & Traded Goods

Stores and SparesWork in Progress

Finished Goods

Scrap

Secured Sundry Debtors

Unsecured Sundry Debtors Over 6 Months

Unsecured Sundry Debtors for less than 6 Months

Cash and Bank Balance


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Current Liabilities:-

Sundry Creditors

Deposits

Advances

Due to Subsidiary Company

Other Liabilities

Fractional Share Issue AccountDividend Declared pending payment

Provisions

In addition to the above, year specific weights are assigned seperately.

I Components of Current Assets:-

Raw Material & Traded Goods

Stores and Spares

Work in Progress

Finished Goods

Advances recoverable in cash or kind doubtful

Secured Sundry Debtors

Unsecured Sundry Debtors Over 6 Months

Unsecured Sundry Debtors for less than 6 Months


Advances recoverable in cash or kind

Claims Receivable

Balance with Government Authorities

Deposit with Mumbai High Court

Deposit Others

Interest accrued but not due

Other Current Assets

Short Term Loans and Advances

Prepaid Expenses

Interest accrued

Total

II Components of Current Liabilities:-


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Sundry Creditors

Deposits

Advances

Statutory Dues

Current Maturities of long term borrowings


Provisions

Current maturities of finance lease obligationsUnearned Revenue

Bank Overdraft

Current maturities of gain on sale and lease back transactions

Other Liabilities

Interest accrued and due

Secured Loans

Unsecured Loans

Total

III Weighted Current RatioI/II

Notes:-

1 Best Weighted Current Ratio is 2:1 or 2.

2

Weighted current ratio is very poor as compared to benchmark.It indicates very

weak solvency and liquidity position.


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70%

100%55%

100%

100%

100%

80%

100%

100%


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90%

100%

100%

90%

90%

100%100%

100%

Amount Weighted Amount Weight Amount Weighted Amount Weight

62 44 -

20,416 20,416 16,607 16,607

- -

- -

- -

- -

2,361 1,889 2,005 1,604

16,399 16,399 -

18,227 18,227 1,905 1,905

- 100% - 100%

- 80% - 80%

21,095 21,095 100% 14,317 14,317 100%

- 100% - 100%

1,164 1,164 100% 2,301 2,301 100%

- 100% - 100%

72,930 72,930 100% 45,826 45,826 100%

- 80%

8,934 8,934 100% 3,554 3,554 100%

296 296 100% 13 13 100%

161,884 161,393 86,529 86,128

Amount Weighted Amount Weight Amount Weighted Amount Weight

Financial Year

Financial Year

Rupees in Lakhs

2011-12 2012-13

2011-12 2012-13


10/113

281,652 281,652 100% 264,317 264,317 100%

1,858 1,858 2,454 2,454

36,152 36,152 3,655 3,655

- 100% - 100%

55,125 55,125 100% 68,744 68,744 100%

27,594 27,594 32,559 32,559

6,618 6,618 6,413 6,413

13,778 13,778 100% 6,204 6,204- 100% - 100%

1,192 1,192 100% - 100%

41 41 100% 41 41 100%

144,670 144,670 100% 197,894 197,894 100%

41,454 41,454 100% 123,073 123,073 100%

92,761 92,761 100% 10,720 10,720 100%

140,698 140,698 100% 165,190 165,190 100%

843,594 843,594 881,263 881,263

0.19 0.10


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12/113


13/113

- 100%

-

-

- 100%

- 100%

-

-

-- 100%

- 100%

- 100%

- 100%

- 100%

- 100%

- 100%

- -

#DIV/0!


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Brief Description:- It is a ratio between Quick or Liquid Assets and Quick Liabilities.

It is much better and reliable than that of the current ratio as it

eliminates the snags in the same since it indicates the relationship

between liquid assets whose realisable value is almost certain on onehand and liquid liabilities on the other hand.

Liquid Assets comprise all Liquid assets minus stock minus prepaid

expenses since these are not be converted into cash in the immediate

future.

Liquid Liabilities comprise of all Liquid liabilities minus bank Overdraft

since it is not required to be paid off in the immediate future.

This ratio is also called Acid Test Ratio or Quick ratio or Near Money

ratio.

Ideal Liquid raio is 1:1 which indicates the ability of the business to pay

its maturing obligations without delay and difficulty.

Liquid Assets/Liquid Liabilities= Liquid Assets-Stock-Prepaid

Expenses/Liquid Liabilities-Bank Overdraft=Liquid Ratio

I Liquid Assets:-

A Curent Assets

Less:-

1 Interest accrued but not due

2 Stores and Spares

3 Other Current Assets

4 Prepaid Expenses

5 Claims Receivable

6 Advances recoverable in cash or kind

7 Advances to Suppliers

8 Unsecured Sundry Debtors Over 6 Months

Total B

Liquid Assets A-B


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II Liquid Liabilities:-

A Current Liabilities

Less:-


Current Portion of deferred incentivesProvisions

Unearned Revenue

Bank Overdraft

Working Capital Demand Loan

Other Liabilities

Secured and unsecured Loans

Total B

Liquid Liabilities A-B

III Liquid Ratio

I/II

Notes:-

1

Advances recoverable in Cash and Kind and Advances to Suppliers are

treated as prepaid Expenses.

2 Liquid Ratio is far below the benchmark all the years.

3 Company is performing very bad on liquidity front.


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2011-12 2012-13 2013-14

161,884 86,529 -

- - -

20,416 16,607 -

72,930 45,826 -

8,934 3,554 -

- - -

- - -

2,361 2,005

104,641 67,993 -

57,242 18,536 -

Financial YearRupees in Lakhs


17/113

843,594 881,263 -

27,594 32,559 -

6,618 6,413 -13,778 6,204 -

- - -

1,192 - -

41 41 -

144,670 197,894 -

233,460 175,910 -

427,354 419,020 -

416,241 462,243 -

0.14 0.04 #DIV/0!


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Brief Description:-

Accounts Receivable included in the Numerator of of Liquidity Ratio as these

may suffer in realisable Value because of possibility of Bad debts. Hence real

measure of liquidity will be the ratio between cash and Marketable Securities

to immediate maturing obligations which is termed as Absolute Liquidity

Ratio.

Cash+ Marketable Securities/Quick Liabilities= Absolute Liquidity Ratio

Ideal Absolute Liquidity Ratio is 1:1.

A


Deposit with Mumbai High Court

Deposit OthersInterest Accrued

Balance with Government Authorities

Total

B Quick Liabilities/Liquid Liabilities

Absolute Liquidity Ratio A/B

Notes:-

1 Deposits are considered in the category of marketable Securities.

2 For all the given Financial Years, Ratio is below prescribed standard.

3 Company is performing very bad on liquidity front.


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2011-12 2012-13 2013-14

18,227 1,905 -

- - -

1,164 2,301 -13 -

-

19,390 4,219 -

416,241 462,243 -

0.05 0.01 #DIV/0!

Financial Year

Rupees in Lakhs


20/113

Brief Description:-

It reveals the owner's contribution to total assets. It indicates, how much

total assets have been financed through proprietors fund and how much are

financed through external Equity.

Ideally 60% to 75% of the total assets should be financed through owners

fund. The higher the ratio, the lesser will be the reliance on the outsidersand vice versa. Too high ratio is not good as it indicates that external

debts/equities are not being utilised properly.

This ratio is also called Proprietory Ratio/Equity Ratio/Net Worth to Total

Assets Ratio.

Proprietory Ratio= Proprietors Fund or Net Worth/Total Assets.

Proprietors Fund or Net Worth= Equity and Preference Share Capital+

reserves and Surplus+ Accumulated Fund- Debit Balance of P & L Account

and Misc. Expenses

Issued Subscribed and Paid Up Equity Share Capital

Add:- Reserves and Surplus

Less:- Debit Balance of P & L Account

Less:- Misc. Expenditure

A Net Worth/Proprietors Fund

Fixed Assets

Long Term Loans and Advances

Current Assets Loans and Advances

B Total Assets

C Net Worth to Total Assets Ratio

A/B

Notes:-


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1

The ratio has become invalid for all these years as the Company's

accumulated losses are rising above the amount of Equity Share Capital.

2

Company is running the risk losing the entire capital due to huge amount of

accumulated losses.


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Brief Description:-

Total Fixed Asstes to Proprietors Equity Ratio reveals how much of

Proprietors Fund is invested in Fixed Assets. If the major part is invested in

Fixed Assets, working capital may be inadequate.

Normally 60% to 75% of Proprietors Equity should be invested in Fixed

Assets.

Total Fixed Assets to Proprietors Equity Ratio=Total Fixed

Assets/Proprietors Equity

A Total Fixed Assets

B Proprietors Equity

C Total Fixed Assets to Proprietors Equity Ratio

A/B

Notes:-

1

The ratio has become invalid for all these years as the Company's

Proprietor's Equity is in negetive due to accumulated losses rising above

the amount of Equity Share Capital.


24/113

2011-12 2012-13 2013-14

143,155 70,913 -

(508,240) (1,291,982) -

(28.17) (5.49) #DIV/0!

Financial Year

Rupees in Lakhs


25/113

Brief

Description:-

Total Current Asstes to Proprietors Equity Ratio reveals how much of

Proprietors Fund is invested in Current Assets. If the investment is found to

be too small, working capital may be inadequate. and vice versa.

Total Current Assets to Proprietors Equity Ratio=Total CurrentAssets/Proprietors Equity

2011-12

A Total Current Assets 161,884

B Proprietors Equity (508,240)

C Total Fixed Assets to Proprietors Equity Ratio

A/B (31.85)

Notes:-

1

The Ratio has become invalid for the all the given Financial Years as it is in

negetive. This implies that Proprietors Equity only is insufficient to invest in

Current assets as the amount of Current Assets is more than the Amount

of Proprietors Equity. In addition to Proprietors Equity, company has to

utilise its External borrowings also to finance the Working CapitalRequirements. This is not good from the point of view of financial health of

the Company.

2

For all these Financial Years , proprietors Equity itself is in negetive and

hence entire working capital needs and consequentially daily operations of

the Company have to be financed through external borrowings.


26/113

2012-13 2013-14

86,529 -

(1,291,982) -

(6.70) #DIV/0!

Financial Year

Rupees in Lakhs


27/113

Brief Description:-

It expresses the relationship between Borrowed Capital/External

Equities and Own Capital/Internal Equities.

It reveals the claims of creditors/lenders and shareholders against

the assets of the firm.

Ideal norm of the ratio is 2:1.

The higher the ratio, greater will be the risk to the creditors and it

indicates too much dependence on external debts. On the contrary,

lower ratio reveals high margin of safety to the creditors.

Debt Equity Ratio= Long Term and Short Term Debts in the form of

Bills, Mortgage and debentures/Equity Share Capital+ preference

Share Capital+reserves and Surplus+Capital reserves

2011-12

A Long and Short Term Debts 803,000

Issued Subscribed and Paid Up Equity Share Capital 113,075

Reserves and Surplus (621,315)

B Total (508,240)

C Debt Equity Ratio

A/B (1.58)

Notes:-

1

For all these Years, Negetive Equity indicates entire reliance on Debt

capital to finance the business operations as well as for acquisition

of Fixed Assets

2

Capital structure has relied only of debt capital as Equity Capital is in

negetive figures.


28/113

2012-13 2013-14

865,764

136,182 -

(1,428,164) -

(1,291,982) -

(0.67) #DIV/0!

Financial Year

Rupees in Lakhs


29/113

Brief Description:-

Add:-

Less:-

A

B

Notes:-

1

2


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It is the ratio between Equity Share Capital and fixed interest bearing securities.

It defines the proportion of Equity Share Capital and Fixed interest bearing securities in the

total capital of the Firm.

Business is said to be highly geared if fixed interest bearing securities are proportionately

higher than Equity Capital. In the opposite case, it is low geared.

Ideal Norm is 2:1.

Capital Gearing ratio= Equity Share Capital+Undistributed Profit-Debit Balance of P & L

Account-Misc. Expenses/Preference Share Capital+Long Term Debts

2011-12

Equity Share Capital 113,075

Undistributed profits (621,315)

Debit Balance of Profit & Loss Account -

Total (508,240)

Long Term Debts 569,540

Capital gearing ratio

A/B (0.89)

Ratio is in negetive as Equity capital is in negetive due to accumulated losses.

Capital structure is disproportionately geared as capital comprises only of debt capital as

Equity Capital has gone into negetive figures.


31/113

2012-13 2013-14

136,182 -

(1,428,164) -

- -

(1,291,982) -

689,854 12,363

(1.87) -

Financial Year

Rupees in Lakhs


32/113

Brief Description:- It indicates the percentage of material cost to Sales.

The higher the ratio, smaller will be the margin of profit and vice

versa.

2011-12

A

Material Consumed (Aviation turbine Fuel+Stores and Spare

Parts) 300,552

B Sales (Revenue from Operations) 549,341

Ratio 54.71

A/B

Notes:-

1 It is the highest cost component for all these years.

2

Fuel and spares cost is always high, generally above 50% of

operational revenue. But it has skyrocketted during FY 2012-13

and exceptionally high at 92% of operational revenue which has

eaten almost all the margin.

FR


33/113

2012-13 2013-14

45,885

50,138

91.52 #DIV/0!

inancial Yearpees in Lakhs


34/113


35/113

A/B

1

Repairs cost in terms of percentage to operational revenue is more in

FY 2012-13 than FY 2011-12.

III Selling expenses on sales to Sales Ratio


versa.

2011-12

A Selling Expenses 60,622


Ratio 11.04

A/B

1

Selling cost as a percentage of sales is too high for all these years. It is

exceptionally high in FY 2012-13 in terms of percentage of sales.

IV Power and Fuel to Sales Ratio


versa.

2011-12

A Power and Fuel 761


Ratio 0.14

A/B

As the cost is negligible, trend analysis is not required.

Ru

Fi

Fi

Ru


36/113


37/113

2011-12

A Miscellaneous Expenses 1,765


Ratio 0.32

A/B

From FY 2011-12 onwards,Travelling and Conveyance expenses are

showing increasing trend over the previous Financial Year.

VIII Lease Termination charges to Sales


versa.

2011-12

A Lease Termination charges 74,345


Ratio 13.53

A/B

1

Lease Termination charges are too high in terms of percentage of

sales. But these charges have crossed the amount of Sales in FY 2012-

13 and the entire company has suffered heavy losses.

IX Landing navigation and other airport charges to Sales Ratio

2011-12

A Landing navigation and other airport charges 63,231

Fi

Ru

Fi

Ru

Ru

Fi


38/113


Ratio 11.51

A/B

1Landing navigation and other airport charges are showing increasingtrend every Financial Year.

X

Supplemental Lease rent Charges-Aircrafts and Engines,Auxiliary

Power Units to Sales Ratio

2011-12

A Supplemental Lease rent Charges 92,818


Ratio 16.90

A/B

1

Supplemental Lease rent Charges as a percentage of sales has crossed

the amount of Turnover in FY 2012-13.

XI Cost of inflight food and beverages to Sales Ratio

2011-12

A Cost of inflight food and beverages 17,869


Ratio 3.25

A/B

From FY 2011-12 onwards,Cost of inflight food and beverages is

showing decreasing trend over the previous Financial Year.

Ru

Fi

Ru

Fi


39/113

XII Aircraft navigation software expenses to Sales Ratio

2011-12

A Aircraft navigation software expenses 1,093


Ratio 0.20

From FY 2011-12 onwards,software expenses are showing increasing

trend over the previous Financial Year.

XIII Communication Expenses to Sales

2011-12

A Communication Expenses 2,688


Ratio 0.49

1

From FY 2011-12 onwards,communication expenses are showing

increasing trend over the previous Financial Year.

XIV Insurance expenses to Sales ratio

2011-12

A Insurance expenses 6,368


Ratio 1.16

Ru

Fi

Ru

Fi

Ru

Fi


40/113

1 Insurance expenses are too high as compared to Sales in FY 2012-13.

XV Legal and professional charges to Sales Ratio

2011-12

A Legal and professional charges 4,965


Ratio 0.90

From FY 2011-12 onwards,legal and professional charges are showing

increasing trend over the previous Financial Year.

XVI Hire Charges to Sales Ratio

2011-12

A Hire Charges 3,621


Ratio 0.66

From FY 2011-12 onwards,hire charges are showing increasing trend

over the previous Financial Year.

XVII Finance Costs to Sales Ratio

2011-12

A Finance Cost 127,634


Fi

Ru

Fi

Ru

Fi

Ru


41/113

Ratio 23.23

Finance cost is more than the amount of Turnover in FY 2012-13.


42/113

2012-13 2013-14

34,916

50,138 -

69.64 #DIV/0!

2012-13 2013-14

10,261

50,138 -

20.47 #DIV/0!

ancial Year

ancial Year

ees in Lakhs

ees in Lakhs


43/113

2012-13 2013-14

17,511

50,138 -

34.92 #DIV/0!

2012-13 2013-14

505

50,138 -

1.01 #DIV/0!

ees in Lakhs

ancial Year

ancial Year

ees in Lakhs


44/113

2012-13 2013-14

1,303

50,138 -

2.60 #DIV/0!

2012-13 2013-14

35

50,138 -

0.07 #DIV/0!

ees in Lakhs

ees in Lakhs

ancial Year

ancial Year


45/113

2012-13 2013-14

922

50,138 -

1.84 #DIV/0!

2012-13 2013-14

108,669

50,138 -

216.74 #DIV/0!

2012-13

9,864

ancial Year

ees in Lakhs

ancial Year

ees in Lakhs

ees in Lakhs

ancial Year


46/113

50,138 -

19.67 #DIV/0!

2012-13 2013-14

75,512

50,138 -

150.61 #DIV/0!

2012-13 2013-14

2,494

50,138 -

4.97 #DIV/0!

ees in Lakhs

ancial Year

ees in Lakhs

ancial Year


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Brief Description:- Gross Profit Ratio

It is the ratio of Gross profit to Sales and expressed as a percentage.

It ascertains the earning capacity of the business.

Higer the ratio higher the margin and vice versa.

Management is always interested in higher margin in order to cover

operating expenses and it ensures the sufficient return to all the

stakeholders.

It is the test of the profitability and management efficiency.

Gross Profit Ratio= Gross Profit/Net Sales*100

Net sales= Gross Sales-Discount-Sale Returns-Excise Duty on sales

it is very useful tool to control the Cost of Production and increase the sales

amount.

A Profit Before Taxation/Gross Profit

B Net Sales

C Ratio

A/B

Notes:-

1 Net Sales include non operating income also.

2 As loss is incurred each Financial Year, ratio has gone into negetive.

3 Amount of loss is highest during FY 2013-14.

4 Gross Profit is profit before Tax

Net Profit Ratio:

It is the ratio of Net profit to Sales and expressed as a percentage.


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It indicates the amount of sales left for shareholders after all costs and

statutory liabilities have been met.

Higer the ratio higher the margin and vice versa.

A Net Profit

B Net Sales

C Ratio

A/B

Notes:-

1

Net Profit is profit after tax and all other costs.There was difference between

the amount of Gross and Net Profit in FY 2011-12 due to the amount of

deferred tax.


Operating Net Profit Ratio:

It is Net profit Ratio after adjusting non operating income such as income

from external securities , interest, profit on sale of fixed assets.

A Operating Net Profit

B Net Sales

C Ratio

A/B

Notes:-


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54/113

2011-12 2012-13 2013-14

(344,609) (430,112)

582,391 68,346

(59.17) (629.31) #DIV/0!

Financial Year

Rupees in Lakhs


55/113

2011-12 2012-13 2013-14

(232,801) (430,112) -

582,391 68,346 -

(39.97) (629.31) #DIV/0!

2011-12 2012-13 2013-14

(265,851) (448,320) -

549,341 50,138 -

(48.39) (894.17) #DIV/0!

Financial Year

Financial Year

Rupees in Lakhs

Rupees in Lakhs


56/113


57/113

C Interest Coverage Ratio

A/B

Notes:-

1 Ratio is invalid as Company has suffered a loss all these Financial Years.


58/113


59/113

(1.08) (2.12) #DIV/0!


60/113

Brief Description:-


61/113

Inventory Turnover Ratio is often interpreted as the number of times the Company sells its inventory during one

accounting period.

e.g. Inventory Turnover Ratio of 4 indicates that the Company sells its stock of inventory every quarter. In other

words there is 3 months stock of inventory on hand.

This Ratio is a common measure to indicate firms operational efficiency in the management of its assets. It meansminimizing inventory holding reduces overhead costs and thereby improves the profitability performance of the

enterprise.

Normal Inventory Turnover Ratio is 5-6 times.

Higher ratio indicates higher operational efficiency as number of times the existing inventory sold is on higher side

and vice versa.

Stock Turnover Ratio=Cost of Goods Sold/Inventory or Sales/Inventory

Inventory=Average Inventory=(Opening Stock+Closing Stock)/2

The reason for taking Cost of Goods Sold in the Numerator is to calculate that how many times investment in the

inventory is covered by the Cost of Goods sold.

As Airline Industry is not in the field of manufacturing, calculation of this ratio is not relevant.


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Brief Description:-

I

II

A

B

C

III

IV

Notes:-

1

2


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3


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It indicates the number of times the average debtors are turned over the year.

The higher the turnover the more the efficient management of the business and vice versa.

It indicates that debts are more liquid.

it is the reliable measure of the time of cash flow from credit sales for the business.

There is no thumb rule which may be used as a norm to interprete the ratio as it differes from firm to firm.

Debotrs Turnover Ratio=Credit Sales or Total Sales /Average Debtors

Average Debtors=(Opening Debtors+Closing Debtors)/2

Average Credit collection period can also be calculated as a corollary to the above ratio.

Average Credit collection Period=365/Debtors Turnover Ratio

i.e. 365/(Sales/Average Debtors) i.e. 365*Average Debtors/total Sales.

Total Sales

Opening Debtors

Closing Debtors

Average Debtors (A+B)/2

Debtors Turnover Ratio I/II

Average Credit Collection Period

Number of days in a year

III*C/I

Due to the nature of business of Airline Industry , Debtors Turnover Ratio is always very high and average

collection period does'nt goes beyond 10 days.

Debtors Turnover ratio is below the accepted norms for all the Financial Years.


65/113

Average Credit collection period has increased by around 4 times in FY 2012-13.


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2011-12 2012-13 2013-14

549,341 50,138 -

44,053 18,759

18,759 2,005

31,406 10,382 -

17.49 4.83 #DIV/0!

365 365 365

20.87 75.58 #DIV/0!

Financial Year

Rupees in Lakhs


67/113

Brief Description:-


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It indicates the number of times the average creditors are turned over the year.

Unless it is caused by inability of the firm to pay creditors, normally the lower the creditors turnover ratio, the

more it is efficient for the business and vice versa.

Lower creditors turnover ratio ensures liquidity and solvency.

Creditors Turnover Ratio=Purchases or Credit Purchases/Average Creditors

Average Creditors=(Opening Creditors+Closing Creditors)/2

Average payment period can be calculated as follows.

Average Payment period or average delay in payment=365/Creditors Turnover Ratio

i.e. 365/(Purchases/Average Creditors) i.e. 365*Average Creditors/Purchases

As Airline Industry is not in the field of manufacturing, calculation of this ratio is not relevant. No Raw Material is

required to operate Airline Business.


69/113

Brief Description:-

I

II

III

Notes:-

1


70/113

The ratio is known as Sales to Fixed Assets.

This ratio measures efficiency and earning capacity of the business.

Higher the ratio, greater is the intensive utilization of fixed assets. Lower utilization means under-utilization of

fixed assets.

Fixed Assets Turnover Ratio=Turnover or Cost of goods sold/Total Fixed Assets

Turnover

Fixed Assets

Ratio I/II

Ratio has gone down in FY 2012-13 as compared to FY 2011-12.


71/113

2011-12 2012-13 2013-14

549,341 50,138 -

143,155 70,913

3.84 0.71 #DIV/0!

Financial Year

Rupees in Lakhs


72/113

Brief Description:-

I

II

III

Notes:-

1


73/113

The ratio indicates whether investment in net current assets or working capital has been optimally utilized or

Higher the ratio, greater is the intensive utilization of working capital . Lower utilization means wastage of

working capital.

Ratio=Turnover/Working Capital

Turnover

Working Capital

Ratio I/II

Ratio has gone into negative as Working capital has gone into negative.The ratio has become invalid.


74/113

2011-12 2012-13 2013-14

549,341 50,138 -

(681,711) (794,735) -

(0.81) (0.06) #DIV/0!

Financial Year

Rupees in Lakhs


75/113

Brief Description:-

I

II

III

Notes:-1


76/113

The ratio indicates whether amount of capital employed has been effectively used or not.

It is an index to the operational effciency of the business as well as indicator of profitability.

Higher ratio indicates efficient use of capital and better management efficiency and profitability.

Return on Capital Employed= Net Profit (after Tax+Interest)/Capital Employed-Intangible Assets

Net Profit After Tax

Interest

Net Profit after tax and Interest

Capital Employed

ROCE I/II

ROCE is negative as Company has incurred loss all these Financial Years.


77/113


78/113

Brief Description:-

I

II

II

III

Notes:-1


79/113

Earning Per Share means earnings available for individual Equity Shareholder for every single share held.

Earnings available are calculated after deducting dividend payable to Preference Shareholders from Profit

After Tax.

This ratio is a best indicator of profitability.

Ratio=PAT-Dividend Payable to Preference Shareholders/Number of Equity Shares issued.

Net Profit After Tax

(No preference Dividend as no preference shareholders).

Preference Dividend

Profit for Equity Shareholders

No. of Equity Shares.

EPS is negative as Company has incurred losses all these Financial Years.


80/113

2011-12 2012-13 2013-14

(232,801) (430,112) -

442 442

(233,243) (430,554)

577,647,274 808,722,990

(403.02) (531.84) #DIV/0!

Financial Year

Rupees in Lakhs


81/113

Brief Description:-

I

II

III

Notes:-

1

2


82/113

I

II

III

Notes:-

1

2


83/113

Price Earning Ratio relates Market Price Per Share to Earning Per Equity Share.

It is calculated by dividing Market price of Share by Earning Per Share.

High ratio attracts lots of investments as it reflects positive gains of Earning Per share

getting reflected into Marke Price of that share and vice versa .

This ratio is highly significant from the point of view of investors.

Ratio=Market price per Share/Earning Per Share.

2011-12

High

April 46.33

May 42.79

June 40.99

July 39.37August 29.72

September 26.39

October 22.66

November 24.74

December 23.57

January 23.71

February 27.23

March 21.06

Total 368.55

Average

2011-12

Market Price per Share 29.89

EPS (403.02)

P/E Ratio (0.07)

As EPS is negative, ratio is invalid.

Whatever Market price is available to these shares, shows disproportionate P/E Ratio.

Ru


84/113

2011-12

High

April 46.36

May 42.95

June 41.01

July 39.48

August 29.98September 26.48

October 22.73

November 24.79

December 23.61

January 23.85

February 27.31

March 20.97

Total 369.50

Average

2011-12

Market Price per Share 29.91

EPS (403.02)

P/E Ratio (0.07)

As EPS is negative, ratio is invalid.

Whatever Market price is available to these shares, shows disproportionate P/E Ratio.

Ru


85/113

2012-13 2013-14

Low High Low High Low

44.23 18.48 16.91 - -

41.05 13.74 12.91 - -

39.32 13.21 12.27 - -

38.11 10.95 10.26 - -27.86 9.41 8.68 - -

24.93 11.96 11.14 - -

21.41 12.30 11.91 - -

22.64 13.96 13.17 - -

22.27 16.02 15.18 - -

22.33 14.52 13.55 - -

25.12 11.36 10.77 - -

19.59 9.65 9.10 - -

348.84 155.56 145.85 - -

29.89 12.56 -

2012-13 2013-14

12.56 -

(531.84) #DIV/0!

(0.02) #DIV/0!

BSE

NSE

Financial Year

Financial Year

Financial Year

Rupees in Lakhs

ees in Millions


86/113

2012-13 2013-14

Low High Low High Low

44.25 18.57 17.00

40.98 13.77 12.91

39.31 13.22 12.20

37.98 10.94 10.30

27.95 9.50 8.6724.91 11.99 11.10

21.45 12.30 11.89

22.69 13.97 13.17

22.02 16.00 15.17

22.38 14.55 13.53

25.09 11.40 10.72

19.36 9.67 9.07

348.37 155.87 145.73 - -

29.91 12.57 -

2012-13 2013-14

12.57 -

(531.84) -

(0.02) #DIV/0!

Rupees in Lakhs

Financial Year

ees in Millions


87/113

Brief Description:-

I

II

III

Notes:-

1


88/113

Dividend Payout Ratio defines the relationship between the amount of dividend paid and the Earning Per Share.

It indicates out of earnings available to Equity Shareholders, how much is distributed as dividend which means

immediate gains or income for the Shareholder.

If the Ratio is higher , it indicates that out of earnings available for shareholders, majority of them is distributedas dividend immediately.

Ratio=Dividend Per Share/Earning Per Share

Dividend

No. of Equity Shareholders

Dividend Per Share

EPS

Dividend Payout Ratio I/II*100

As dividend is not declared, DP ratio has become invalid.


89/113

2011-12 2012-13 2013-14

- - -

577,647,274 808,722,990 -

- - #DIV/0!

(403.02) (531.84) #DIV/0!

- - #DIV/0!

Financial Year

Rupees in Millions


90/113

Ratio 2011-12 2012-13

1 Current ratio 0.19 0.10

Remark Below Benchmark Below Benchmark

Weight Assigned 0.50 0.50

2 Weighted Current Raio 0.19 0.10



3 Liquid Ratio 0.14 0.04



4 Absolute Liquidity Ratio 0.05 0.01



5 Proprietory Ratio (102.21) (481.94)Remark Below Benchmark Below Benchmark


6 Fixed Assets to Proprietor's Equity (28.17) (5.49)



7 Current Assets to Proprietor's Equity (31.85) (6.70)



8 Debt Equity Ratio (1.58) (0.67)



91/113


9 Capital Gearing Ratio (0.89) (1.87)



10 Material Consumption to Sales 54.71 91.52



11 Employee Cost to Sales Ratio 12.19 69.64

Remark Below Benchmark Above Benchmark


12 Repairs and Maintainance to Sales 4.89 20.47



13 Discount and Commission to Sales 11.04 34.92

Remark Below Benchmark Near Benchmark


14 Power and Fuel to Sales 0.14 1.01

Remark Above Benchmark Above Benchmark

Weight Assigned 1 1


92/113

15 Travelling and Conveyance Expenses to Sales 1.06 2.60


Weight Assigned 1 0.5

16 Bad Debts to Sales Ratio 0.17 0.07


Weight Assigned 1 1

17 Misellaneous Expenses to Sales 0.32 1.84



18 Lease Termination charges 13.53 216.74

Remark Near Benchmark Above Benchmark


19 Landing navigation and other airport charges 11.51 19.67



20 Supplemental Lease Charges 16.90 150.61



21 Cost of inflight food and beverages 3.25 4.97

Remark Near Benchmark Near Benchmark


93/113


22 Aircraft navigation software expenses 0.20 0.75

Remark Near Benchmark Near BenchmarkWeight Assigned 1 0.75

23 Communication Expenses 0.49 1.73



24 Insurance 1.16 7.80



25 Legal and professional charges 0.90 3.45

Remark Near Benchmark Near BenchmarkWeight Assigned 0.75 0.5

26 Hire Charges 0.66 1.72



27 Finance Costs to Sales Ratio 23.23 286.44

Remark Above Benchmark Near Benchmark



94/113

28 Gross profit Ratio (59.17) (629.31)



29 Net Profit Ratio (39.97) (629.31)



30 Operating Net Profit Ratio (48.39) (894.17)



31 Equity Shareholders Coverage Ratio #DIV/0! #DIV/0!



32 Interest Coverage Ratio (1.08) (2.12)



33 Inventory Turnover Ratio Invalid Invalid

34 Debtors Turnover Ratio 17.49 4.83


95/113


Weight Assigned 0.5 1

35 Creditors Turnover Ratio Invalid Invalid

36 Fixed Assets Turnover Ratio 3.84 0.71



37 Net Current Asssets Ratio (0.81) (0.06)Remark Below Benchmark Below Benchmark


38 Return on Capital Employed (11.48) (28.59)



39 Earning Per Share (403.02) (531.84)


96/113


97/113

2013-14 Benchmark Remark

#DIV/0! 2 Indicator of Solvency and Liquidity

Below Benchmark

#DIV/0! 2 indicator of real liquidity

Below Benchmark

#DIV/0! 1

Indictor of ability of the organization to pay its

liability without any delay and difficulty

Below Benchmark

#DIV/0! 1

Indicator of real measure of liquidity as its the

ratio between cash, marketable securities vis--vis

immediately maturing obligations.

Below Benchmark

#DIV/0! 60% to 75%

Indicator of how much of total assets have been

financed through owner's funds and how much are

financed through external equityBelow Benchmark

#DIV/0! 60% to 75%

Indicator of how much of Proprietor's funds are

invested in Fixed Assets

Below Benchmark

#DIV/0! 25% to 40%

Indictor of how much of Proprietors equity is

invested in meeting working capital requirements.

Below Benchmark

#DIV/0! 2:1

Indicator of relationship between Borrowed

Capital and Equity Capital and reveals the claim of

creditors/lenders and shareholders against the

assets of the organization.

Below Benchmark


98/113

- 2:1

It is the indicator of the proportion of Equity Share

Capital and Fixed interest bearing securities in the

total capital of the Firm.Business is said to be

highly geared if fixed interest bearing securitiesare proportionately higher than Equity Capital. In

the opposite case, it is low geared.

Below Benchmark

#DIV/0!

Below 50% of

Turnover.Plus or

minus 0.5% for near

benchmark

It is the indicator of percentage of Material Cost to

the amount of Sales. Lower the cost higher will be

the margin.

Below Benchmark

#DIV/0!

Below 10% of

Turnover.Plus or

minus 0.5% for near

benchmark

It is the indicator of percentage of Employee Cost

to the amount of Sales. Lower the cost higher will

be the margin.

Above Benchmark

#DIV/0!

Below 5% of

Turnover.Plus orminus 0.5% for near

benchmark

It is the indicator of percentage of Repairs Cost tothe amount of Sales. Lower the cost higher will be

the margin.

Below Benchmark

#DIV/0!

Below 5% of

Turnover.Plus or

minus 0.5% for near

benchmark

It is the indicator of percentage of discount and

commission Cost to the amount of Sales. Lower

the cost higher will be the margin.

Below Benchmark

#DIV/0!

Below 3% of

Turnover.Plus or

minus 0.5% for near

benchmark

It is the indicator of percentage of Power and Fuel

Cost to the amount of Sales. Lower the cost higher

will be the margin.

Above Benchmark


99/113


100/113


101/113

#DIV/0! Higher the better

It is the indicator of earning capacity, profitability

and management efficiency of business. Higher

the ratio higher return on investment for the

stakeholders

Below Benchmark


It is the indicator of the amount left for

shareholders after all costs and statutory liabilities

have been met.

Below Benchmark


It is the indicator of profit earned by the Company

from its core operations after deducting all type of

non-operating income

Below Benchmark


It is the indicator of the number of times the

Equity Dividend is covered by Net profit after

interest and tax but before dividend. The higher

the coverage the better will be the financial

strength.

Below Benchmark


It is the indicator of the number of times the Fixed

interest is covered by Net profit before interest

and tax. The higher the coverage the better will be

the financial strength.

Below Benchmark

Invalid 5-6 times

It is the indicator of the inventory holding policy of

the management of an organization and thereby

its cost. Higher the ratio higher the operational

efficiency.

#DIV/0!

Credit Collection

period upto 10 days.

Plus or minus 2 days

is near Benchmark

It is the indicator of reliable measure of the time

of cash flow from credit sales for the business.

Higer ratio indicates lesser credit period and more

managerial efficiency and vice versa.


102/113

Above Benchmark

Invalid Lower the better

It is the indicator of the time period granted by the

creditors to pay back the dues and also indicates

the managerial efficiency in the area of maximumcredit period obtained from the creditors of the

Organization and its consequential impact on the

entire cash flow.

#DIV/0!

6 Times. Plus or

minus 1 is near the

Benchmark

It is the indicator of earning capacity of the

organization.Higher the ratio, greater is the

intensive utilization of fixed assets. Lower

utilization means under-utilization of fixed assets.

Below Benchmark

#DIV/0!

15 times. Plus or

minus 2 is near the

Benchmark

The ratio is the indicator of whether investment in

net current assets or working capital has been

optimally utilized or not.Higher the ratio, greater is

the intensive utilization of working capital . Lower

utilization means wastage of working capital.Below Benchmark


It is the indicator whether the amount of capital

employed has been optimally utilised or not which

gets reflected through the percentage of net Profit

after tax and before interest to the Total capital

employed.

Below Benchmark


it is the indicator of the amount available as

earnings for Equity Shareholders after meeting all

the external and statutory obligations. Higher ratio

indicates maximization of wealth for shareholders

and vice versa. It indicates profitability of the

Organization.


103/113

Below Benchmark

#DIV/0!

5 times EPS. Plus orminus 1 times is

near Benchmark

It is the indicator of relationship between Market

price of share and EPS.High ratio attracts lots of

investments as it reflects positive gains of EarningPer share getting reflected into Market Price of

that share and vice versa .

Below Benchmark


It indicates out of earnings available to Equity

Shareholders, how much is distributed as dividend

which means immediate gains or income for the

Shareholder.If the Ratio is higher , it indicates that

out of earnings available for shareholders,

majority of them is distributed as dividend

immediately.

Below Benchmark

-

-


104/113

Benchmarking

Below Benchmark Near Benchmark Above Benchmark

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


105/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


106/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


107/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


108/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


109/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


110/113

0.5 0.75 1

0.5 0.75 1

0.5 0.75 1


111/113


112/113

Comments based on Summary:-

On the basis of all the aspects of performance of the Organization in the area of profitability, liquidity, managerial

Years based upon the 41 ratios calculated. At the end, combined weightage has been assigned to all the Financial

Years.

Similar exercise of ranking has been done for the average Share prices of for all these Financial Years in the desce

If we try to match the ranks given as per 1 and 2 above, following conclusions can be drawn:-

Company's overall performance is worst in last 3 Financial Years.

Company has performed marginally better in FY 2011-12 as compared to FY 2012-13

Company has huge accumulated losses which have overrided its Equity Capital.

Company is running its operations with the help of short term and long term debts.

Company's performance on solvency and liquidity front is negetive.Working capital has gone into negetive due to

Capital structure is disproportionately geared as capital comprises only of debt capital as Equity Capital has gone

Percentage of cost of Aviation turbine fuel is too high in the entire cost of sales, above 50% for all the Financial Ye

Employee cost is below the benchmark for two Financial Years.

Company has performed very bad on profitability front which has presented question mark before its existance.

Company's sources of revenue are attached by Government Authorities.

Company has defaulted on tax and salary payments.

Company did not maintain its schedule integrity.Hence Company's Schduled Air Operations Permit (SOP) was susp

Case filed by the Company against the lenders.

Recall notice received from SBI on 2.04.2013 for recovery of Rs. 6,493.29 Crores (Principal +Accrued Interest)

Another notice received from SBICAP Trustee Company Limited and SBI for discharge of oustanding Liability.

Company's immovable property i.e. kingfisher House is subject matter of Notice of Attachment from Service Tax

Authorities and possession Notice by SBICAP trustee Company Limited on behalf of consortium of banks.


113/113

efficiency, wealth maximization, weights have been assigned for all the Financial

ears and based on this weightage, ranking has been given to all these Financial

ding order of its value.

amount of Current Liabilities going higher than amount of Current assets.

ars due to which profitability of the Company has gone down.

ended by DGCA.Company has to renew its SOP before 31st December 2014.

analysis kingfisher

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