Analysis of comparative statement of Balance Sheet.

(the data is expressed in million

rupees)

a) The proprietary, plant and equipment had been sold worth 7741.62, during the year
2017 and a value of 6132.30 was realised. This is the major reason why the analysis
shows that there has been 20% decrease in property, plant and equipment.
b) Computer software was installed costing 438.39 in the year 2017 to improve the
efficiency of business which increased the value of intangible assets by 132.14%.
c) It is notable that there is 77.12% decrease in the value of intangible under
development in 2017 in comparison to 2016, i.e., it has reduced from 82.31 to 18.33
and this could be because the company had reduced its investment on R&D or on
patents and other intangible assets.
d) The amount for security deposit has increased 29.001% which has been shown as
an increase in the loans in the asset side.
e) The income tax has decreased 42% which could be because that the firm has earned
16% lesser in its profits in comparison to the previous year. A change in tax slab
could be the reason for this change.
f) The inventory has increased from 672.82 to 1631.50. The reason for this 113.87%
change can be because the company has not kept aside any provision for
obscelence, slow/ non-moving engineering stores, spares and loose tools like how it
had maintained in the previous years. There is also a decrease in the fuel cost from
218.96 to 6.21 which is also a notable difference.
g) The year 2017 has a new investment in the subsidiary, but decrease in equity
investments also they have multiplied their current investments 4 times leading to a
276.56% increase when compared to 2016.
h) The cash balance has decreased by 8053.68 to 1531.09. This could be because, the
deposit account which was maintained of the fund of IPO proceeds had been closed
in the year 2017.
i) Bank balances has increased twice as compared to 2016, which means the company
has increased the investment of bank funds under lien.
j) The increase of 44% in Equity is because the opening balance of 2017is almost 3
times higher than the opening balance of 2016. Even though the profit has gone
down for the current year the expenses like interim dividend and corporate dividend
 tax has decreased significantly. This is also the reason for an increase of 28.77%
increase in Total Equity.
k) Provision for defined benefit plants has increased from 319.84 to 420.2 and
provision for other long-term employee benefits has also increased by 58%.
l) The decrease in other liabilities is due to the decrease in employee related liabilities
which has gone down from 107.39 to 75.
m) The increase in other current liabilities of 72% is mainly due to increase in forward
sales from 12445.78 to 15584.20. Also, there is an increase in statutory dues of
54.23%. There is a 13.61% increase of employee related current liabilities.
n) Current income tax liabilities have increased from 89.66 to 446.77 resulting a
398.00226% increase, which is not a good sign.

Due to the above reasons the Total Assets and Liabilities has increased by 20.53%.

Analysis of Comparative Profit and Loss. (the data is expressed in million rupees)

a) The revenue from services had a 15% increase and this is due to the 15.17%
increase in passenger service, 15.64% in cargo service. The other incomes relating
to providing services is the advertisement and commission income and claim from
service providers has generated 184.1% increase in revenue.in comparison to last
year.
b) Other income has significantly changed 53.18%. this is due to 252.15% increase in
net gain on sale of current investment. Marked to market gain of 546.42 in 2017 in
comparison to 120.11in the year 2016 is also a reason contributing to this increase.
Profit on sales property plan and equipment is of 24.58 for an exchange gain of
825.99 liabilities no longer required written back 414.93 in comparison to 69.34 in
2016 are also major reasons for the increase in other income

Due to the above mentioned points there is 16.29% increase in the total income

c)There is an increase of 32.68% on the aircraft fuel expenses.

d) 24.67% increase in aircraft and engine rentals calculated on floating rate or fixed
rate which depends upon the usage of ours and cycle operated each month, the company has
increased it’s number of hours and cycle operated each month in this month which is the
reason for this increase
e) the opening stock of in-flight purchases in 2017 has increased by 17.8% and the closing
stock has increased by 3.93% resulting an decrease in stock in trade of 74.02%. this is
because the increase in opening stock ismore than the increase in closing stock

f) there is a net increase on employee benefit expenses on 14.55% , this is due to a major
increase in salary,wages and bonus and also due to increased staff welfare expenses.

g)the reasons for other expenses to increase by 25% is because of the following :

1. Loading and enroute charges has increased by 4581. The aircraft expenses and repairs
has almost doubled
2. Redelivery and overhaul has almost increased by 4 times the value of 2016. There is
also significant increases in in-flight and passenger cost, operating cost of software,
legal and professional charges and various other expenses

Thus the increase in the total expenditure is due to the above points.(c,d,e,f,g)

h) the profit before tax is decreased by 24.05% because the total income is increased by
16.29% which is lesser than the increase in total expenses which is 24.53%

COMMON SIZE BALANCE SHEET:

a) When a non- current asset are compared to total assets, there is a significant change
over the two years. It has decreased from 55.61% to 37.89% .The major reasons for
this decrease is
1. Decrease in common size percentages of other financial assets and property,
plant and machinery. The current asset value has increased in common size
analysis and the major contribution to increase is from investments and
inventories, cash and bank balances
2. The share capital has decreased and other equities have increased in a higher
proportion
3. The percentage of non-current liabilities has shown a decrease of around 6%
which can be due to decrease in borrowings which has been paid off by the
company in the year 2017
4. The total current liabilities in comparison to the total liabilities has shown a
significant increase and the increase in current tax and other financial
liabilities is the major reason for this.
COMMON SIZE PROFIT AND LOSS:

The total income in the comparison to sales has shown an increase due to increase in other
incomes as explained in detail in comparative analysis.

The total expense has shown a significant increase in comparison to the sales figures by
7.008% due to major increase in aircraft fuel expenses, expense on aircraft and engine
rentals, financing cost even though other expenses have comparatively decreased. The
promotional rate of increase in these items of expenditure are very high