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East West Travel & Trade Links Ltd.

BSE: 520135 Sector: Services
NSE: ESTWSTRAV ISIN Code: N.A.
BSE 05:30 | 01 Jan East West Travel & Trade Links Ltd
NSE 05:30 | 01 Jan East West Travel & Trade Links Ltd

East West Travel & Trade Links Ltd. (ESTWSTRAV) - Director Report

Company director report

1995 EAST WEST TRAVEL & TRADE LINKS LIMITED DIRECTORS REPORT Your Directors have pleasure in submitting their Report along with the audited Accounts for the year ended on March 31, 1995. 1. Economy: The process of Economic Liberalisation of the Country continued during the year and the economy is poised to record a high level of Industrial Growth apart from noticeable progress on the infrastructure. 2. Airline, Travel and Tourism in India: The growth in Economy, Large Scale Foreign Investments in core industries, add more scope for air services within the country and large number of services on the International route to and from India. The current trend indicating a slow growth for investment opportunities in Western Hemisphere are encouraging mega companies to make their investment in India and also several collaboration arrangements by them are underway. With this many International Airlines are opening new International routes to and from India and established airlines in the region are now fastly expanding their operations. National carriers of India are also expanding their route network to new International destinations with successful operations. All this means further scope for the company's business operations and a brighter future as the travel division will have more airline tickets sale and hence more earning by way of Commission, and the airline division can benefit with more visitor arrivals and increased demand for domestic air services. 3. Scheduled Airline Status: With the repeal of the Air Corporation Act during March 1994, the government also arranged for granting Schedule Airline Status to a handful of the Air Taxi operators and East West Airline became the first Scheduled Airline among the private Air Taxi operators and the same was accorded on the first week of November, 1994. 4. Departure Control Systems: In line with the Company's tradition of pioneering efforts, world's most advanced Departure Control System developed by the communication Giant SITA is now being installed at various stations in the network facilitating computerised Passenger Check- in and preparation of "Load and Trim Sheet" which will facilitate passengers with fast and efficient check- in while enhancing the safety levels of our flight. During the first week of November, 1994, the system was first inaugurated at Madras and then at Bombay Airport in January 1995. By the end of 1995 it is proposed to install these systems at about 20 airports of our operation. 5. Interline Agreements: During the financial year ended March, 1995, more marketing tie ups and interline agreements were made in our efforts to increase Global Sales. M/s. Qatar Airways, Oman Aviation, United Airlines, Ethiopian Airlines and Thai Airways have become our new Interline Partners during the year under review. In addition to this the Company is actively following up on our proposal submitted to the International Air Transport Association for concluding a multilateral agreement with all member airlines in IATA and several Non-IATA member Airlines and IATA's approval in respect of the same is expected before the end of 1995 which will further enhance our market potentials. 6. Travel Agency Automation: During the financial year ended 31st March,1995, the company automated 64 travel agents with GETS CRS terminals in continuing our pioneering efforts. 7. Public Issue: Company's offer to the Public on July '94 of 1,38,00,000 Equity Shares of Rs.10/- each for cash at a Premium of Rs.30/- each aggregating to Rs.55,20,00,000 was over subscribed. Your company's share are listed at Bombay, Delhi, Cochin, Calcutta, Ahmedabad and Madras Stock Exchanges. 8. Aircraft Acquisition: The company is currently negotiating with various lessors, manufacturers of aircraft for procuring six additional aircraft of the type Boeing 737-300 and Boeing 737-400 in line with the policies on fleet modernisation/ expansion during the forthcoming financial year. 9. Engineering and Technical Maintenance: Our technical Capabilities upto "C" Check are already approved by the Directorate General of Civil Aviation. During the financial year ended 31st March 1995, our engineering team conducted nine `C' Checks among our fleet of aircraft. In the absence of such capabilities, our competitors except the National Carriers, incur heavy charges on account of the same having to depend upon facilities abroad. By the end of 1995, one of our aircraft is due for a `D' Check and by the time our engineering team would be in position to do the same with the approval of the Directorate General of Civil Aviation. During the financial year ended 31st March 1995, we have established, engineering sub bases at Madras and Bangalore while Bombay continues to be the main base. In spares / Components overhaul, refurbishing and servicing we have already reached self capabilities upto fifty percent. Our engineering team is currently working upon setting up a separate facility at Madras for components overhauling, refurbishing etc. which will meet 80 percent of our requirements. This facility is expected to be operational by middle of August 1995. We have already procured, necessary tools, appliances and equipments for this facility. Additionally, we are in the process of setting up of Auxiliary Power Unit-overhauling HSI inspection on PWJT 8 D engines used on our fleet aimed at reducing aircraft ground period for maintenance and substantial savings in foreign exchange. 10. Travel Division: Our travel division operate both on bulk and retail selling and a variety of services are offered to the clientele. Priority is given to office automation and most of our offices includes reservation/ service facilities through RCS solutions. Our company has the highest number of IATA / UFTM qualified personnel in the country and our Travel counselors and executives frequently attend airlines sponsored training programmes. As a market leader, We operate our Services in a most responsible way and often assist decision makers in the trade with the complete market feed back, selling trends, problem areas and market intelligence and our positive steps are continued to be respected by the industry. During the year under review, the division has kept the steady growth rate it has been maintaining since long. 11. Cargo Division: Our Cargo Division is fully equipped to handle Inbound/ outboard Cargo on retail, bulk, break bulk and transshipment basis. However we mainly concentrate our efforts on retail business. Most users of our Cargo Services are Corporate bodies and medium sized business firms. As a support to strengthen our Cargo Division, we established our Forwarding & Clearing Service Centre in 1991. Besides catering the needs of our cargo clientele. this centre also will now provide C & F Services for both Air and Sea Freight- Import and Export Cargo. Our personnel in the Cargo Division and C & F centre are highly qualified. 12. Human Resources: During the financial year ended 31st March, 1995, employee relations continued to be cordial and your directors want to place on record their deep appreciation for the contribution made by the Company's Employees at all levels during the period under review. 13. Training During the financial year ended 31st March 1995, the Company has set up an Engineering Training Centre at Bombay which will create 50 aircraft engineers on Airframe, Components and Maintenance on the type of aircraft in our fleet with the approval of the Director General of Civil Aviation. Ten of our engineers were sent to facilities abroad for upgrading their technical knowledge on various areas/aspects. The Company maintains a highly capable training centre for Cabin Crew as approved by the Director General of Civil Aviation. Several new entrants were commissioned by this facility in the financial year under review and 64 existing cabin crew were also given refresher courses. 43 Pilots and Commanders were also given ground training in our Pilot training centre at Bombay and 38 Pilots were sent to facilities in UK for simulator and refresher training programmes. Our Commercial Training Centre trained 23 travel agency personnel from the State of Kerala on the Computerised Reservations System lasting 7 days in Cochin during November 1994. During the period November 1994 to February 1995, hundred and sixty three personnel in the Commercial Department were given in-house training on the `Departure Control System'. Six of our executives in the Commercial Department received Management Training in Airline Marketing, Airline Finance and Accounting during the financial year ended 31st March 1995, from the IATA Human Resources Development facilities in Geneva, Switzerland. In March 1995, we have signed an agreement with IATA-Geneva for training sixty of our Senior, Middle Management Executives in Airline Marketing Management. Airline Sales Management and Custom Service Management to be conducted as IATA's in company training programme in three batches during April 1995, May 1995. The programme was marked by IATA's gesture in offering substantial reduction on the cost of the training through IATA's Development Fund maintained for Developing Nations in the best interest of Qualitative Growth in the Air Transport Industry. 14. Visit of Director General - IATA In November 1994, Mr. Pierre J. Jeanniot, O.C., Director General of IATA along with three of his Directors, visited our Corporate Office and held discussions on various issues with the aviation industry with your Managing Director Mr. Thakiyudeen A. Wahid and Commercial Manager Mr. C. Ramachandran, a privilege normally accorded to a very few members of the industry. 15. Auditors: You are required to appoint Auditors for the current year and fix their remuneration. The retiring Auditors who are eligible for re-appointment are 1. M/s. G. V. Samant & Co. Bombay. 2. M/s. P. C. Surana & Co. Bombay. 16. Directors: In accordance with the Company Act, 1956, Mr. Najmudeen and Mr. Peer Mohammed Directors of the Company retire by rotation and being eligible offer themselves for re-appointment. 17. Fixed Deposit: There was no unpaid/unclaimed fixed deposit as on 31st March, 1995. The Company has not accepted any fixed deposit during the year. 18. Other Partners in Progress: Your Directors thank the Central and State Governments of India, as also the Government Agencies, Airport Authorities, Director General of Civil Aviation, the Ministry of Civil Aviation, Government of India, The Reserve Bank of India, The Customs Department, International Air Transport Association, IATA Clearing House, Banks and Financial Institutions, Customers, Suppliers, Interline Partners, the Travel Trade and all other related organisations who through their continued support and co-operation has helped as partners in the progress of your Company. 19. Additional Information: Annexure (A) of this report gives information in respect of Foreign Exchange earnings as required under Section 217(i) (e) of the Companies Act, 1956, read with the Companies (Disclosures of Particulars in the Report of The Board of Directors) Rules, 1988 and forms a part of the Director's Report. Information in respect of conservation of energy, technology, absorption does not apply to this industry Annexure (B) of this report provides the particulars required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and forms part of the Director's Report. The additional information required to be given under Companies Act, 1956 is laid out in the Schedules attached to and forming part of the Balance. Sheet and Profit and Loss Account including the notes to Accounts which are self explanatory. There is no reservation, qualification or adverse remark contained in the Auditor's Report requiring an explanation in this Report. ANNEXURE- A Earnings in Foreign Currency : 1994-95 1993-94 1. General Sales Agents 4,85,10,029 6,84,16,053 2. Interline Sales 23,75,96,788 28,57,17,449 28,61,06,817 35,41,33,502 Expenses in Foreign Currency : 1994-95 1993-94 Expenses 87,22,03,439 55,26,77,916 For And Behalf of the Board of Directors THAKIYUDEEN A. W. Managing Director SHIHABUDEEN A. W. Dy. Managing Director THAHAKUTTY A. W. Director Place: BOMBAY, Dated: 30th October, 1995.