Our responsibility is to express an opinion on these standalone financial statements based on our audit.

Transcription

1 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF JET LITE (INDIA) LIMITED Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of Jet Lite (India) Limited ( the Company ), which comprises the Balance Sheet as at 31 st March, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Standalone Financial Statements The Company s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013( the Act ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of the appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company s Directors, as well as evaluating the overall presentation of the financial statements.

2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 st March, 2017; and its loss and its cash flows for the year ended on that date. Emphasis of Matter We draw attention to Note 36 in the financial statements which indicates that the Company s net worth is further eroded due to losses incurred during the year. As the Company is fully dependent on its parent company, the going concern assumption for the company is dependent on the ability of the holding company to raise adequate funds. Our opinion is not qualified in respect of matter described in Emphasis of Matter paragraph. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor s Report) Order, 2016 ( the Order ), issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. As required by Section 143(3) of the Act, we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account. d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, e) The matter described under Emphasis of Matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company. f) On the basis of the written representations received from the directors as on 31 st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 st March, 2017, from being appointed as a director in terms of section 164(2) of the Act.

3 g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B ; and h) With respect to the other matters to be included in the Auditor s Report in accordance with Rules 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements Refer Note 26 to the financial statements. ii. iii. iv. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated the 8 th November, 2016 of the Ministry of Finance, during the period from 8 November, 2016 to 30 December,2016. Based on audit procedures performed and the representations provided to us by the management, we report that the disclosures are in accordance with the books of account maintained by the company and as produced to us by the Management. (Refer Note 39 to the financial statements) For Chaturvedi & Shah Chartered Accountants Firm Registration no W Parag D. Mehta Partner Membership No.: Mumbai Date: 28 th May, 2017

4 ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF JET LITE (INDIA) LIMITED (Referred to in paragraph 1, under Report on Other Legal and Regulatory Requirements section of our Report of even date) 1) In respect of its fixed assets: a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. b) The Company has a programme of verification of property, plant and equipment to cover all the items in phased manner, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its property, plant and equipment. Pursuant to the program, certain property, plant and equipment were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification. c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company. 2) As explained to us, the inventory has been physically verified during the year by the management other than inventory lying with third parties. In our opinion, the frequency of verification is reasonable. In respect of inventory lying with third parties, we have relied on the confirmations obtained by the management from such entities. The discrepancies noticed on verification between the physical stock and the book records were not material. 3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to any companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Consequently, the provisions of clause (iii) (a) to clause (iii) (c) of paragraph 3 of the Order are not applicable to the Company. 4) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees or securities granted in respect of which provisions of Section 185 and 186 of the Act are applicable to the Company. 5) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits as per the directions issued by the Reserve Bank of India from the public in accordance with relevant provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3 (v) of the Order is not applicable to the Company. 6) As informed to us by the management, the Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services/activities rendered by the Company.

5 7) In respect of Statutory dues: a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax,, Customs Duty, Value Added Tax, Cess and other material statutory dues have generally been regularly deposited with appropriate authorities except in respect of profession tax and service tax, the delays ranged from One day to Six months. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employee state insurance, sales tax, wealth tax, duty of customs, value added tax, cess and other material statutory dues in arrears as at 31 st March, 2017 for a period of more than six months from the date they became payable except in respect of service tax interest of Rs.694 lakhs for the period to b) According to the information and explanations given to us, there are no material dues of Value Added Tax, Duty of Excise, Sales Tax which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of Income Tax, Service Tax, Duty of Customs have not been deposited by the Company on account of disputes. Name Statue Income Act,1961 Income Act,1961 Income Act,1961 Finance Act,1994 Finance Act,1994 Customs 1962 of Tax Tax Tax Act, Nature Dues of Amount (in Lakhs) Period which amount relates to Forum where dispute is pending Income Tax* 2, Supreme Court of India Income Tax to (TDS) Wealth Tax to Service Tax 5, to , to Service Tax 30, to Custom Duty to *Amount paid / deposit for Income Tax Rs. 83 lakhs. Deputy Commissioner of Income Tax Commissioner of Wealth Tax (Appeals) CESTAT Commissioner of Central Excise CESTAT 8) In our opinion and according to the information and explanations given to us, the Company has no dues payable to banks, financial institution, government and the Company did not have any outstanding debentures during the year.

6 9) The Company has not raised money by way of initial public offer or further public offer (including debt instruments) or term Loan and hence clause (ix) of paragraph 3 of the Order is not applicable to the Company. 10) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practice in India and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit, nor have been informed of any such case by the management. 11) According to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, ) According to the information and explanations given to us, the Company is not a nidhi company as prescribed under section 406 of the Act. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company. 13) According to the information and explanations given to us the Company s transactions with its related party are in compliance with Sections 177 and 188 of the Companies Act, 2013, wherever applicable, and details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards. 14) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company. 15) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company. 16) According to information and explanations provided to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, Accordingly, paragraph 3 (xvi) of the Order is not applicable to the Company. For Chaturvedi & Shah Chartered Accountants Firm Registration no W Parag D. Mehta Partner Membership No.: Mumbai Date: 28 th May, 2017

7 ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF JET LITE (INDIA) LIMITED (Referred to in paragraph 2 (g) under Report on Other Legal and Regulatory Requirements of our report of even date) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ( the Act ) We have audited the Internal Financial Control over financial reporting of Jet Lite (India) Limited ( the company ) as of 31 st March, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year then ended. Management Responsibility for the Internal Financial Controls The Company s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note ) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, Auditor s Responsibility Our responsibility is to express an opinion on the Company s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

8 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company s internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, maintained an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal financial controls over Financial Reporting issued by the ICAI. For Chaturvedi & Shah Chartered Accountants Firm Registration no W Parag D. Mehta Partner Membership No.: Mumbai Date: 28 th May, 2017

9 Balance Sheet as at 31 st March, 2017 Note No. As at 31 st March, 2017 As at 31 st March, 2016 EQUITY AND LIABILITIES Shareholders' Funds Share capital 2 79,612 79,612 Reserves and surplus 3 (330,901) (325,112) (251,289) (245,500) Non-Current Liabilities Long term borrowings 4 240, ,782 Long term provisions 5 5,516 3, , ,669 Current Liabilities Trade payables 6 - For dues to Micro and Small Enterprises For dues to others 20,554 24,799 Other current liabilities 7 3,525 3,918 Short term provisions ,080 24,338 29,800 TOTAL 18,772 27,969 ASSETS Non-Current assets Fixed assets Property plant and equipment Intangible assets Non-current Investments Long term Loans and advances 12 5,341 8,671 5,451 8,781 Current Assets Inventories ,439 Trade receivable Cash and Bank balances ,048 Short term loans and advances 16 11,550 16,203 Other current assets ,188 18,990 TOTAL 18,772 27,969 Significant accounting policies 1 The accompanying notes are an integral part of the Financial Statements

10 As per our attached report of even date On behalf of Board of Directors For Chaturvedi & Shah Chartered Accountants Firm Reg No W Naresh Goyal Chairman DIN: Gaurang Shetty Director and Manager DIN: Parag D. Mehta Partner Membership No Date: 28 th May, 2017 Place: Mumbai N. Ravichandran Chief Financial Officer Membership No: Deepesh Joishar Company Secretary Membership No:

11 Statement of Profit and Loss for the year ended 31 st March, 2017 Note No. For the Year Ended 31 st March, 2017 For the Year Ended 31 st March, 2016 Income Revenue from operations , ,718 Other income Total Revenue 123, ,655 Expenses Aircraft Fuel expenses 46,215 38,764 Employee benefit expenses 21 20,292 14,753 Selling and Distribution expense 22 9,275 9,122 Aircraft and Engine lease rentals 15,270 16,093 Depreciation and Amortization expense 9 & Finance costs 23 5,745 6,599 Other expenses 24 32,258 32,288 Total expenses 129, ,734 Loss before Exceptional Items and Tax (5,789) (4,079) Exceptional Items 25-2,007 Loss before Tax (5,789) (2,072) Tax expense - Current Tax Deferred Tax Short / (Excess) Tax provisions (Net) for earlier years - - Loss for the year (5,789) (2,072) Earnings per Equity share: (Face value ` 10 Per Share) 26 Basic and Diluted (in ` ) (0.73) (0.26) Significant accounting policies 1 The accompanying notes are an integral part of 2-42 the Financial Statements As per our attached report of even date On behalf of Board of Directors For Chaturvedi & Shah Chartered Accountants Firm Reg No W Naresh Goyal Chairman DIN: Gaurang Shetty Director and Manager DIN: Parag D. Mehta Partner Membership No N. Ravichandran Chief Financial Officer Membership No: Deepesh Joishar Company Secretary Membership No: Date: 28 th May, 2017 Place: Mumbai 3

12 Cash Flow Statement for the year ended 31 st March, 2017 Note No. For the Year Ended 31 st March, 2017 For the Year Ended 31 st March, 2016 Cash Flow from Operating Activities : Net Loss Before Tax (5,789) (2,072) Adjustments for : Depreciation / Amortisation 9 & Contribution Receivable From Lessors - (2,007) Provision for Stock Obsolescence Profit on Sale of Property plant and equipment (Net) 131 (7) Finance Cost 23 5,745 6,599 Interest on Income Tax Refund - (3) Interest on Bank and Other Deposits (32) (402) Provision No Longer required Written Back (709) (1,367) Provision for Compensated Absences and Gratuity Unrealised Foreign Exchange Losses (Net) 2, Provision for Bad and Doubtful debts Inventory Scrapped During the year Operating Profit/ (Loss) before Working Capital Changes 2,788 2,488 Adjustment for: Changes in Inventories 564 1,535 Changes in Trade Receivables (124) 1,170 Changes in Loans and Advances 7,324 (1,346) Changes in Trade Payables, Other Current Liabilities and Provisions (5,856) (13,411) Cash used in Operations 4,696 (9,564) Direct Taxes Refund / (Paid) (71) (15) Net Cash flow used in operating activities 4,625 (9,579) Cash Flow from Investing Activities : Proceeds from Sale of Property plant and equipment 8 7 Changes in Fixed Deposits with Banks (Refer note 1 below) (27) 6,373 Interest Received on Bank and Other Deposits Net Cash Flow from / (used in) Investing Activities 14 7,068 Cash Flow from Financing Activities Net Increase / (Decrease) in Short Term Loans - - Proceeds from Long Term Loan 133, ,255 Repayment of Long Term Loans during the year (133,180) (128,623) Interest and Finance Charges Paid (5,725) (6,821) Net Cash Flow from Financing Activities (5,300) 810 Net Increase in Cash and Cash Equivalents (661) (1,701) Cash and Cash Equivalents as at the Beginning of the year ,374 Cash and Cash Equivalents as at End of the year Notes: 1) Fixed Deposits with banks with maturity period of more than three months amounting to ` 402 lakhs (Previous Year ` 375 lakhs) are not included in Cash and Cash equivalents. 2) Previous year s figures have been regrouped / reclassified wherever necessary to correspond with the current year s classification / presentation. 4

13 As per our attached report of even date On behalf of Board of Directors For Chaturvedi & Shah Chartered Accountants Firm Reg No W Naresh Goyal Chairman DIN: Gaurang Shetty Director and Manager DIN: Parag D. Mehta Partner Membership No Date: 28 th May, 2017 Place: Mumbai N. Ravichandran Chief Financial Officer Membership No Deepesh Joishar Company Secretary Membership No

14 Notes to the Financial Statements for the Year Ended 31 st March, Significant Accounting Policies A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS : The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and complies with Accounting Standards specified under section 133 of the Companies Act, 2013 ( the Act ) read with rule 7 of the Companies (Accountants) Rules 2014, read with Companies (Accounting Standards) Amendment Rules, 2016 applicable with effect from 1 April 2016 and other generally accepted accounting principles (GAAP) in India, to the extent notified and applicable. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in lakhs. All assets and liabilities have been classified as current or non-current as per the Company s normal operating cycle and other criteria set out in schedule III to the Act. Based on the nature of the services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or noncurrent classification of assets and liabilities. B. USE OF ESTIMATES : The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized. C. REVENUE RECOGNITION : a) Passenger and Cargo income is recognized on flown basis, i.e. when the service is rendered. b) The sale of tickets / airway bills (sales net of refunds) are initially credited to the "Forward Sales Account. Income recognized as indicated above is reduced from the Forward Sales Account and the balance net of commission and discount thereon is shown under Other Current Liabilities. c) The unutilized balances in Forward Sales Account are recognized as income based on historical statistics, data and management estimates and considering Company s refund policy. d) Interest Income is recognised on time proportionate basis taking into the account the amount outstanding. D. COMMISSION As in the case of revenue, the commission paid / payable on sales including any over-riding commission is recognized only on flown basis. E. EMPLOYEE BENEFITS : a) Defined Contribution plan: A defined contribution plan is a post-employment benefit plan under which entity pays specified contributions to a separate entity and has no obligation to pay any future amounts.company s contribution paid / payable for the year to defined contribution schemes are charged to the Statement of Profit and Loss. b) Defined Benefit and Other Long Term Benefit plan: Company s liabilities towards defined benefit plans and other long term benefit plans are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period of occurrence of such gains and losses. Past service cost is recognized immediately to the extent the benefits are vested, otherwise it is amortized on straight-line basis over the remaining average period until the benefits become vested. The employee benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost. c) Short Term Employee Benefits: Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services. Such benefits include salaries, wages, bonus and ex-gratia. 6

15 F. FIXED ASSETS : a) Property Plant and Equipment: Owned Property plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. All costs relating to acquisition and installation of Property plant and equipments upto the time the assets get ready for their intended use are capitalised. Parts that are significant in cost in relation to the total cost of an asset having a different useful life than the remaining asset are identified and accounted as separate components. Spare parts recognised as Property plant and equipment when it meets the definition of Property, plant and equipment. The cost of improvements to Leased Properties as well as customs duty / modification cost incurred on Aircraft taken on operating lease have been capitalized and disclosed appropriately. b) Intangible Assets : Intangible assets are recognized only if acquired and it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortisation and accumulated impairment losses, if any. c) Assets Taken on Lease : Operating Lease: Rentals are expensed with reference to the Lease Term and other considerations. d) Capital Work in Progress comprises of cost of fixed assets not ready for their intended use as at the reporting date of the financial statements. G. IMPAIRMENT OF ASSETS : An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. However, an impairment loss on a revalued asset is recognized directly against the revaluation surplus held for the asset to the extent that the impairment loss does not exceed the amount held in revaluation surplus for the same asset. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. H. DEPRECIATION / AMORTISATION : a) Depreciation on Property plant and equipment are provided on the 'Straight Line Method' over the useful life of assets as prescribed in Schedule II of the Companies Act, b) Computer Software is amortized on a straight line basis over a period not exceeding 36 months. I. INVESTMENTS : Current Investments are carried at lower of cost or quoted / fair value. Non-current Investments are stated at cost. Provision for diminution in the value of non-current investments is made only if such a decline is other than temporary. J. BORROWING COSTS : Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. K. FOREIGN CURRENCY TRANSACTIONS / TRANSLATION : a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items are restated at the period-end rates. The exchange difference between the rate prevailing on the date of transaction and on settlement / restatement is recognized as income or expense, as the case may be. b) Non-monetary foreign currency items are not restated at the period-end rates. c) In case of forward exchange contracts entered into to hedge the foreign currency exposure in respect of monetary items, the difference between the exchange rate on the date of such contracts and the year end rate is recognized in the Statement of Profit and Loss. Any profit / (loss) arising on cancellation of forward exchange contract is recognized as income or expense of the year. Premium / discount arising on such forward exchange contracts is amortized as income / expense over the life of contract. 7

16 L. INVENTORIES : Inventories are valued at cost or Net Realizable Value (NRV), whichever is lower. Cost of inventories comprises of all costs of purchase and other incidental cost incurred in bringing them to present location and condition. Cost is determined using the Weighted Average method. Provision is made for the obsolescence and other anticipated losses whereas considered necessary. During the year, pursuant to notification G.S.R.364(E) dated 30 th March,2016, the company has reclassified / capitalised certain eligible spare parts to Property plant and equipment from inventories. M. AIRCRAFT MAINTENANCE AND REPAIR COSTS : Aircraft Maintenance, Auxiliary Power Unit (APU), Engine maintenance and repair costs are expensed on incurrence as incurred except with respect to Engines / APU which are covered by third party maintenance agreement and these are accounted in accordance with the relevant terms. N. TAXES : Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, Deferred tax resulting from timing differences between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable / virtual certainty, as the case may be, that the asset will be realized in future. O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS : Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. 2. Share Capital Authorised 800,000,000 Equity Shares of ` 10/- each* (Previous Year 800,000,000 Equity Shares of ` 10/- each) 290,000,000 Redeemable Preference Shares of ` 10/- each* (Previous Year 290,000,000 Equity Shares of ` 10/- each) Issued, subscribed and Fully Paid up: 796,115,409 Equity Shares: Face value of ` 10/- each 80,000 80,000 29,000 29, , ,000 (Previous Year 796,115,409 Equity Shares of ` 10/- each) 79,612 79,612 TOTAL 79,612 79,612 a. Reconciliation of Number of Shares Number of shares Number of shares Issued, Subscribed and Fully Paid up: Equity Shares: Face value of ` 10/- each Outstanding as at the beginning of the year 796,115,409 79, ,115,409 79,612 Outstanding as at the end of the year 796,115,409 79, ,115,409 79,612 8

17 b. Shareholders holding more than 5% of equity share capital in the Company Name of the Shareholder Equity Shares Jet Airways (India) Limited (Holding Company) and its nominee Number of shares Percentage of holding Number of shares Percentage of holding 796,115, % 796,115, % Terms and Rights attached to Equity Shares The Company has equity shares having a par value of ` 10/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends if any, in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amount. 3. Reserves and Surplus Capital Reserve (Refer note 11) As per last Balance Sheet Securities Premium Account As per last Balance Sheet 4,466 4,466 Deficit in Statement of Profit and Loss As per last Balance Sheet (329,688) (327,616) Add: Loss for the year (5,789) (2,072) Balance at the end of the year (335,477) (329,688) 4. Long Term Borrowings Unsecured TOTAL (330,901) (325,112) Loan from Related Party 240, ,782 TOTAL 240, ,782 Salient Terms Loan of ` 240,207 lakhs (Previous Year ` 239,782 lakhs) is a loan taken from the Holding Company to support its operations and is repayable in March, Interest is 10% on the incremental loan received with effect from April, Long Term Provisions Non-current Provision for employee benefits Gratuity (Refer note 28) 1, Compensated Absences Provision for Redelivery of Aircraft 3,676 2,828 TOTAL 5,516 3,887 9

18 a) Redelivery of Aircraft : As per Accounting Standard 29, Provisions, Contingent Liabilities and Contingent Assets, given below are movements in provision for Redelivery of Aircraft. The Company has in its fleet aircraft on operating lease. As contractually agreed under the lease agreements, the aircraft have to be redelivered to the lessors at the end of the lease term in the stipulated technical condition. Such redelivery conditions would entail costs for technical inspection, maintenance checks, repainting costs prior to its redelivery and the cost of ferrying the aircraft to the location as stipulated under the lease agreement. The Company therefore provides for such redelivery expenses, as contractually agreed, in proportion to the expired lease period. Opening Balance 3,711 3,398 Add : Additional Provisions during the year* (35) 505 Less : Amounts used during the year / reversed during the year - (192) Closing Balance 3,676 3,711 * Additions include adjustment of ` 80 lakhs (Gain) (Previous Year ` 204 lakhs-loss) on account of exchange gain / (loss) consequent to restatement of liabilities denominated in foreign currency. The cash outflow out of the above provisions as per the current terms under the lease agreements are expected as under: Year No. of Aircraft Amount () No. of Aircraft Amount () , TOTAL 8 3, , Trade Payables Trade payables Total outstanding dues to Micro, Small and Medium Enterprises - 3 Others for Services 20,554 24,799 TOTAL 20,554 24,802 10

19 Disclosures relating to amounts payable as at the year end together with interest paid / payable to Micro, Small and Medium Enterprises have been made in the accounts, as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent of information available with the Company determined on the basis of intimation received from suppliers regarding their status and the required disclosure is given below: Sr. No. A Principal amount remaining unpaid as on 31 st March - 3 B Interest due thereon as on 31 st March - - C Interest paid by the Company in terms of Section 16 of Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to - - the supplier beyond the appointed day during the year D Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest - - specified under Micro, Small and Medium Enterprises Development Act, 2006 E Interest accrued and remaining unpaid as at 31 st March - - F Further Interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise Other Current Liabilities Interest Accrued but not due on borrowing Forward Sales (Net) (Passenger and Cargo) Statutory Dues Payable 1,798 1,744 Airport Dues Payable Balance with Banks overdrawn as per books 66 - Advance / Deposit from Vendors and Customers Other Payables TOTAL 3,525 3, Short Term Provisions Provision for Employee Benefits Gratuity (Refer note 28) Compensated Absences Others Provision for Redelivery of Aircraft (Refer note 5) Provision for Wealth Tax * (` 52,000) 1* 1* TOTAL 259 1,080 11

20 9. Property Plant and Equipment Nature of assets As at 1 st April, 2016 Asset acquisitions/ Adjustments Gross Block Accumulated Depreciation Net Block Asset disposals / Adjustments As at 31 st March, 2017 As at 1 st April, 2016 For the year Adjustment for the period Deductions / Adjustments As at 31st March, 2017 As at 31 st March, 2017 As at 31 st March, 2016 Plant And Machinery Furniture And Fixtures Electrical Fittings Data Processing Equipment Office Equipment Ground Support Equipment Vehicles Ground Support Vehicles Aircraft & Spare Engine (Narrow Body) - 6,682 2,217 4,465-6,544 2,079 4, TOTAL 4,079 6,682 2,271 8,490 3, ,544 2,133 8, Previous Year ,079 3, , ) Pursuant to the adoption of Companies (Accounting Standards) Amendment Rules 2016 and in accordance with the recognition principles of Accounting Standard (AS) 10 on Property, Plant and Equipment, the Company has identified certain spare parts which hitherto were classified as Inventories, The carrying value amounting ` 138 lacs have been reclassified/capitalised as Property plant and equipment. 10. Intangible Assets Nature of Asset As at 1 st April, 2016 Asset acquisitions Gross Block Amortization Net Block Asset disposals / Adjustments As at 31 st March, 2017 As at 1 st April, 2016 For the year Deductions / Adjustments As at 31 st March, 2017 As at 31 st March, 2017 As at 31 st March, 2016 Software 1, ,052 1, , TOTAL 1, ,052 1, , Previous Year 1, ,052 1, ,

21 11. Non-Current Investments Trade Investments (Unquoted and at cost) 6 Shares (Previous Year 6 Shares) in Societe Internationale de Telecommunications Aeronautiques) SC (SITA) of Euro 5 each # 180,918 (Previous year 180,918) Depository certificates in SITA Group foundation depository certificates of USD 1.20 each # * ` 1954 (Previous Year ` 1,954) * * TOTAL # These investments have been received free of cost from S.I.T.A S.C and S.I.T.A. Group Foundation for participation in their Computer Reservation System. The credit for these investments have been made to Capital Reserve to the extent of nominal value of the investments. Transfer of these investment are restricted to other Depository Certificate / Shares holders e.g. Air Transport members, etc. 12. Long term Loans and Advances Security Deposits with Airport Authorities (Unsecured) Considered good Considered doubtful Less: Provision for doubtful deposit (92) (92) Security Deposits with lessors (Unsecured, considered good) 3,293 5,335 Contribution Receivable from lessors (Refer note 29) - 1,325 Advance Tax and Tax Deducted at Source (Net of Provision for tax) 2,010 1,939 TOTAL 5,341 8, Inventories (at lower of cost or net realizable value) Rotables, Consumable Stores and Tools 966 7,934 Less: Provision for Obsolescence (278) (6,543) 688 1,391 Fuel Other Stores Item TOTAL 736 1, Trade Receivables Unsecured Outstanding for a period exceeding six months from the date they are due for payment : Considered Good Considered Doubtful 5,677 5,691 Less: Provision for Doubtful Debts (5,677) (5,691) Other - Considered Good Considered Doubtful - - Less: Provision for Doubtful Debts TOTAL

22 15. Cash and Bank Balances Cash and Cash Equivalents Balances with Banks In Current Accounts Cash on hand Other bank balances : In Margin Money Accounts TOTAL 414 1, Short Term Loans and Advances Unsecured and Considered Good unless otherwise stated Security Deposits with Lessors / Vendors - Considered Good 98 1,147 - Considered Doubtful - 19 Less: Provision for Doubtful Deposits - (19) 98 1,147 Contribution Receivable From Lessor (Refer note 29) 1,297 2,650 Claim Receivable from Lessor / Creditors 2, CENVAT Credit Receivable 5,245 3,941 Deposit with Service Tax Department Advances and Other Receivables to / from Suppliers 2,331 7,920 Less: Provision for Doubtful Advances (789) (789) Prepaid Expenses Others TOTAL 11,550 16, Other Current Asset Interest accrued on fixed deposits accounts Unbilled revenue and Other Current Assets TOTAL

23 18. Revenue From Operations Year ended 31 st March, Sale of Services Passenger 115, ,244 Less: Service Tax (15) (9) 115, ,235 Cargo 6,323 5,139 Less: Service Tax (801) (591) 5,522 4,548 Excess Baggage 1,428 1,544 Other Operating Revenues Cancellation Charges 2 75 Provision no longer required written back 709 1,367 Other Revenue TOTAL 123, , Other Income Year ended 31 st March, Interest Income on Fixed Deposit Interest Income on Income Tax Refund - 3 Profit on Sale of Other Property, plant and equipment (Net) - 7 Net Gain on Foreign Currency Transaction and Translation Other Non-Operating Income TOTAL Employee Benefit Expenses Year ended 31 st March, Salaries, Wages, Bonus and Allowances 18,508 13,990 Contribution to Provident Fund, ESIC and Other Funds Provision for Gratuity Provision for Compensated Absences Staff Welfare Expenses TOTAL 20,292 14, Selling And Distribution Expenses Year ended 31 st March, Computerized Reservation System Cost Commission 9,258 9,016 Others - 7 TOTAL 9,275 9, Finance Costs Year ended 31 st March, Interest Expense 5,437 6,194 Other Borrowing Costs TOTAL 5,745 6,599 15

24 23. Other Expenses Year ended 31 st March, Aircraft Variable Rentals (Refer Note 30) 10,177 10,955 Aircraft Insurance and Other Insurance Landing, Navigation and Other Airport Charges 9,523 8,138 Aircraft Maintenance (including Customs Duty and Freight, where applicable) : - Component Repairs, Recertification, Exchange, Consignment Fees and Aircraft Overhaul (Net) 4,888 3,959 - Consumption of Stores and Spares 604 1,822 - Provision for Spares Obsolescence ,492 6,199 Inflight and Other Pax Amenities 3,066 3,214 Communication Cost Travelling and Subsistence Rent Rates and Taxes 7 9 Repairs and Maintenance Others Electricity Director's Sitting Fees 15 5 Provision for Bad and Doubtful Debts Loss on Sale of Property, plant and equipment other than Aircraft (Net) Miscellaneous Expenses (Including Professional Fees, Audit Fees, Printing and Stationery, Cargo Handling and Bank Charges etc.)* TOTAL 32,258 32,288 * Auditor s Remuneration Payments to auditor (Net of Service Tax Input Credit) Auditor Year ended 31 st March, - Statutory Audit Fees Tax Audit Fees 10 9 Other Services Exceptional Items (Expense) / Income TOTAL Year ended 31 st March, Contribution from Lessor - 2,007 TOTAL 2,007 Note: Pursuant to a "Power by the Hour" (PBTH) engine maintenance arrangement entered into by the Company with service providers for its additional B737 Aircraft engines, the PBTH cost are being charged to the Statement of Profit and Loss and the variable rentals payable to the Lessors are recognised as "Contribution receivable from Lessors". Based on a joint validation of the Company's maintenance plan with the service providers, the Company has recognised, the expected refund of variable rentals paid to the lessors pertaining to earlier years for these engines, as "Contribution receivable from Lessors" in the respective period. 16