ANNUAL REPORT ON JET AIRWAYS

• Jet Airways is India’s premier private airline.• Naresh Goyal is currently the chairperson of Jet

Airways, who is also the founder of the airline. • It holds the distinction of being the second largest

airline in India, next to Kingfisher.• Jet Airways has won a number of awards in

recognition of the world-class standards of its service.

• It has received the ISO 9001:2000 certification, for its in-flight services.

• Headquartered in Mumbai, Jet Airways also operates two low-cost airlines including JetLite (formerly known as Air Sahara) and Jet Airways Konnect.

• Jet Airways (India) Ltd.. The Group's principal activity is to provide regular scheduled airline services on domestic and international routes.

• In May 2009, the Group introduced a new product called Jet Airways Konnect to serve routes where the traffic is price sensitive and where there is very little demand for a product that offers a high level of service.

• As of 31-Mar-2009, the Group operated around 127 flights under the Jet Airways Konnect brand .

• The Group operates in India and internationally.

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sales 11,476.98 8,811.10 7,057.78 5,693.73 4,338.01

Operating profit -306.75 187.55 362.08 928.53 1,210.66

Interest 738.03 492.75 240.15 241.60 253.69

Gross profit -734.88 365.21 465.46 1,128.67 1,039.13

EPS (Rs) -46.60 -29.17 3.24 52.36 45.41

Annual result (in crores)

TREND PERCENTAGES

• Method of analyzing information obtained over an extended period by choosing a baseline period (usually the earliest year) and,

• Stating the data associated with subsequent periods as a percentage of that period.

Trend percentage2005(%) 2006(%) 2007(%) 2008(%) 2009(%)

Sales 100 131.23 162.69 203.11 264.56

Operating profit

100 76.69 29.90 15.49 -25.33

Interest 100 95.23 94.66 194.23 290.11

Gross profit

100 108.61 44.79 342.7 -70.72

EPS 100 115.30 7.13 -64.23 -102.62

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2005 2006 2007 2008 2009

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Balance sheet (in crores) Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds

Owner's fund

Equity share capital 86.33 86.33 86.33 86.33 86.33

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 1,208.32 1,765.42 2,018.48 2,057.53 1,664.56

Loan funds

Secured loans 4,775.92 1,612.75 742.46 206.02 60.00

Unsecured loans 11,547.61 10,402.29 5,313.84 4,689.58 2,904.84

Total 17,618.18 13,866.79 8,161.11 7,039.46 4,715.73

Uses of funds

Fixed assets

Gross block 18,763.74 16,591.09 5,713.83 4,312.07 5,162.79

Less : revaluation reserve 1,862.30 2,699.90 132.44 162.02 259.27

Less : accumulated depreciation 2,501.80 2,506.92 2,416.34 2,249.58 2,593.46

Net block 14,399.64 11,384.27 3,165.05 1,900.47 2,310.06

Capital work-in-progress 583.17 1,223.28 3,994.52 2,725.66 71.32

Investments 1,745.00 1,475.35 68.93 187.23 1,595.73

Net current assets

Current assets, loans & advances 4,350.70 4,145.67 3,402.32 4,091.31 2,156.27=]

Less : current liabilities & provisions 3,460.33 4,361.78 2,469.71 1,865.21 1,417.65

Total net current assets 890.37 -216.11 932.61 2,226.10 738.62

Miscellaneous expenses not written - - - - -

Total 17,618.18 13,866.79 8,161.11 7,039.46 4,715.73

Trend percentageParticulars 2005(%) 2006(%) 2007(%) 2008(%) 2009(%)

Sources of funds

100 122.44 120.21 106.10 73.94

loans 100 102.91 207.18 408.16 553.48

Fixed assets

100 121.02 181.75 354.07 420.86

Current assets

100 301.30 126.26 (29.25) 120.54

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2005(%) 2007(%) 2009(%)

Trend percentage

loans

sources offunds

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fixed assets

YEARS

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Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income

Operating income 11,571.15 8,811.10 7,057.78 5,693.73 4,338.01

Expenses

Material consumed - - - 63.12 71.96

Manufacturing expenses 7,446.48 5,129.92 3,667.20 2,456.60 1,622.30

Personnel expenses 1,410.50 1,205.18 938.55 567.81 374.74

Selling expenses 1,098.17 982.86 800.85 774.02 559.06

Adminstrative expenses 1,017.54 739.24 616.12 420.02 269.89

Expenses capitalised - - - - -

Cost of sales 10,972.69 8,057.20 6,022.72 4,281.57 2,897.95

Operating profit 598.46 753.90 1,035.06 1,412.16 1,440.06

Other recurring income 112.27 115.23 90.36 77.36 51.57

Adjusted PBDIT 710.73 869.13 1,125.42 1,489.52 1,491.63

PROFIT & LOSS A/C(in crores)

Financial expenses 1,450.86 1,056.03 909.70 691.24 461.31

Depreciation 899.81 777.80 414.10 406.41 457.00

Other write offs - - - - -

Adjusted PBT -1,639.94 -964.70 -198.38 391.87 573.32

Tax charges 22.21 -160.73 23.42 270.22 190.14

Adjusted PAT -1,662.15 -803.97 -221.80 121.65 383.18

Non recurring items 331.48 522.01 225.25 289.38 -10.01

Other non cash adjustments 928.33 28.90 24.49 41.01 18.82

Reported net profit -402.34 -253.06 27.94 452.04 391.99

Earnigs before appropriation -261.44 208.91 525.37 601.71 273.98

Equity dividend - - 51.80 51.80 25.90

Preference dividend - - - - -

Dividend tax - - 8.80 7.27 3.63

Retained earnings -261.44 208.91 464.77 542.64 244.45

Interpretation • In 2005,sales is 4338.01, which is gradually increasing till

2009.• The change in percentage is approximately 30% to 40% &

then to 60% in 2009. • The GP is 1039.13 in 2005 which increased in 2006 but

then there is a decrease in the profits of the company.• There is a gradual increase in the current assets in 2006

and gradually they are decreasing till 2008 and again in 2009 the value has increased.

• The fixed assets of the company are increasing every year.• The sources of funds are being raised at decling rate but

liabilities are increasing at increasing rate.

How it will be in 2009-2010• The sales are expected to increase upto

60-70 %.• The losses are expected to be recovered, therefore EPS will increase. • The fixed assets & liabilities are going to

increase in the next year.• The cost of sales is also expected to increase.• Other expenses are expected to increase.

OPINION• Jet airways,India’s most preferred airlines is now giving

the world a better choice in the sky.• Despite of the losses, jet airways will definitely survive

because of its increasing sales,quality of service & goodwill.

• Because of comfortability and timings, people prefer to fly through jet airways despite of its high price.

• Jet airways,jet konnect & jet lite offer a special base fare on routes including Srinagar to jammu, guwahati to imphal and kolkatta to diprughar. With the help of this jet airways increases its reach to the untouched areas.

• It is increasing its reach internationally also.

PREPARED BY:- PARUL MIDHA (PGD-FM/09/007)