INDEPENDENT AUDITORS’ REPORT TO THE ... - Jet Airways Lite_India_Ltd_FY1617.pdf · TO THE MEMBERS...

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 31st 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, 2014.

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.

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 31st 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, 2014.

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 31st March, 2017

taken on record by the Board of Directors, none of the directors is disqualified as on 31st

March, 2017, from being appointed as a director in terms of section 164(2) of the Act.

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. The Company did not have any long-term contracts including derivative contracts for

which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the

Investor Education and Protection Fund by the Company.

iv. 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 8th 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. 101720W

Parag D. Mehta

Partner Membership No.: 113904

Mumbai

Date: 28th May, 2017

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.

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 31st 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 2012-13 to 2014-15.

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 of

Statue

Nature of

Dues

Amount

(in

Lakhs)

Period to

which

amount

relates

Forum where dispute is

pending

Income Tax

Act,1961

Income Tax* 2,637 1995-96 Supreme Court of India

Income Tax

Act,1961

Income Tax

(TDS)

117 2007-08 to

2015-16

Deputy Commissioner of

Income Tax

Income Tax

Act,1961

Wealth Tax 7 2000-01 to

2003-04

Commissioner of Wealth

Tax (Appeals)

Finance

Act,1994

Service Tax 5,761 2003-04 to

2006-07,

2008-09 to

2012-13

CESTAT

Finance

Act,1994

Service Tax 30,246 2003-04 to

2014-15

Commissioner of Central

Excise

Customs Act,

1962

Custom Duty 12 2004-05 to

2006-07

CESTAT

*Amount paid / deposit for Income Tax Rs. 83 lakhs.

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.

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, 2013.

12) 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, 1934. Accordingly, paragraph

3 (xvi) of the Order is not applicable to the Company.




Parag D. Mehta

Partner

Membership No.: 113904

Mumbai


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 31st 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, 2013.

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.

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 31st 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.




Parag D. Mehta

Partner Membership No.: 113904

Mumbai


JET LITE (INDIA) LIMITED

1

Balance Sheet as at 31st March, 2017 ` in lakhs

Particulars Note No. As at 31st

March, 2017 As at 31st

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 4 240,207 239,782

Long term provisions 5 5,516 3,887

245,723 243,669

Current Liabilities

Trade payables 6

- For dues to Micro and Small Enterprises - 3 - For dues to others 20,554 24,799

Other current liabilities 7 3,525 3,918

Short term provisions 8 259 1,080

24,338 29,800

TOTAL 18,772 27,969

ASSETS Non-Current assets Fixed assets

Property plant and equipment 9 133 198

Intangible assets 10 - -

133 198

Non-current Investments 11 110 110

Long term Loans and advances 12 5,341 8,671

5,451 8,781

Current Assets

Inventories 13 736 1,439

Trade receivable 14 342 218

Cash and Bank balances 15 414 1,048

Short term loans and advances 16 11,550 16,203

Other current assets 17 146 82

13,188 18,990

TOTAL 18,772 27,969

Significant accounting policies 1 The accompanying notes are an integral part of the Financial Statements 2-42


2

As per our attached report of even date On behalf of Board of Directors


Naresh Goyal Chairman

DIN:01180386

N. Ravichandran Chief Financial Officer

Membership No: 044269

Gaurang Shetty Director and Manager DIN:01293134

Deepesh Joishar Company Secretary Membership No: 29203

Chartered Accountants Firm Reg No.101720W

Parag D. Mehta

Partner Membership No.113904

Date: 28th May, 2017 Place: Mumbai


3

Statement of Profit and Loss for the year ended 31st March, 2017

` in lakhs

Particulars Note No.

For the Year Ended

31st March, 2017

For the Year Ended

31st March, 2016

Income

Revenue from operations 19 123,075 112,718 Other income 20 256 937

Total Revenue 123,331 113,655

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 & 10 65 115 Finance costs 23 5,745 6,599 Other expenses 24 32,258 32,288

Total expenses 129,120 117,734

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 2-42the Financial Statements




DIN:01180386


Membership No: 044269


Deepesh Joishar Company Secretary Membership No: 29203


Parag D. Mehta




4

Cash Flow Statement for the year ended 31st March, 2017

` in lakhs

Particulars

Note No.

For the Year Ended 31st March,

2017

For the Year Ended 31st March,

2016

Cash Flow from Operating Activities :

Net Loss Before Tax (5,789) (2,072)

Adjustments for : Depreciation / Amortisation 9 & 10 65 115 Contribution Receivable From Lessors - (2,007)Provision for Stock Obsolescence - 418 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 21 902 125 Unrealised Foreign Exchange Losses (Net) 2,475 559 Provision for Bad and Doubtful debts - 274 Inventory Scrapped During the year - 256

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) 6,373Interest Received on Bank and Other Deposits 33 688

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 133,605 136,255 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 16 673 2,374 Cash and Cash Equivalents as at End of the year 16 12 673

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.


5




DIN:01180386


Membership No- 044269


Deepesh Joishar Company Secretary Membership No-29203


Parag D. Mehta




6

Notes to the Financial Statements for the Year Ended 31st March, 2017

1. 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 non-

current 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 commissionand discount thereon is shown under Other Current Liabilities.

c) The unutilized balances in “Forward Sales Account” are recognized as income based on historical statistics, dataand 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 aseparate entity and has no obligation to pay any future amounts.Company’s contribution paid / payable for the yearto 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 theProjected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at thebalance sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period ofoccurrence of such gains and losses. Past service cost is recognized immediately to the extent the benefits arevested, otherwise it is amortized on straight-line basis over the remaining average period until the benefits becomevested.The employee benefit obligation recognized in the balance sheet represents the present value of the definedbenefit 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 arerecognized undiscounted during the period employee renders services. Such benefits include salaries, wages,bonus and ex-gratia.


7

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 readyfor 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 theremaining asset are identified and accounted as separate components.

Spare parts recognised as Property plant and equipment when it meets the definition of Property, plant andequipment.

The cost of improvements to Leased Properties as well as customs duty / modification cost incurred on Aircrafttaken 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 areattributable to the assets will flow to the enterprise and the cost of assets can be measured reliably. The intangibleassets are recorded at cost and are carried at cost less accumulated amortisation and accumulated impairmentlosses, 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 dateof 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 ofassets as prescribed in Schedule II of the Companies Act, 2013.

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 thedate 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 monetaryitems, the difference between the exchange rate on the date of such contracts and the year end rate is recognizedin the Statement of Profit and Loss. Any profit / (loss) arising on cancellation of forward exchange contract isrecognized as income or expense of the year. Premium / discount arising on such forward exchange contracts isamortized as income / expense over the life of contract.


8

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, 1961.

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

` in lakhs

Particulars As at 31st March,

2017 2016

Authorised

800,000,000 Equity Shares of ` 10/- each*

(Previous Year 800,000,000 Equity Shares of ` 10/- each) 80,000 80,000

290,000,000 Redeemable Preference Shares of ` 10/- each*


109,000 109,000

Issued, subscribed and Fully Paid up:

796,115,409 Equity Shares: Face value of ` 10/- each


TOTAL 79,612 79,612

a. Reconciliation of Number of Shares

Particulars

As at 31st March,

2017 2016

Number of shares

` in lakhs Number of shares

` in lakhs

Issued, Subscribed and Fully Paid up:

Equity Shares: Face value of ` 10/- each

Outstanding as at the beginning of the year 796,115,409 79,612 796,115,409 79,612

Outstanding as at the end of the year 796,115,409 79,612 796,115,409 79,612


9

b. Shareholders holding more than 5% of equity share capital in the Company

Name of the Shareholder

As at 31st March,

2017 2016

Number of shares

Percentage of holding

Number of shares

Percentage of holding

Equity Shares

Jet Airways (India) Limited (Holding Company) and its

nominee 796,115,409 100.00% 796,115,409 100.00%

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

` in lakhs As at 31st March,

Particulars 2017 2016

Capital Reserve (Refer note 11)

As per last Balance Sheet 110 110

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)

TOTAL (330,901) (325,112)

4. Long Term Borrowings

` in lakhs

Particulars

As at 31st March,

2017 2016

Unsecured

Loan from Related Party 240,207 239,782

TOTAL 240,207 239,782

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, 2020. Interest is charged @ 10% on the incremental loan received with effect from April, 2014.

5. Long Term Provisions

` in lakhs

Particulars

Non-current

As at 31st March,

2017 2016

Provision for employee benefits

Gratuity (Refer note 28) 1,323 716

Compensated Absences 517 343

Provision for Redelivery of Aircraft 3,676 2,828

TOTAL 5,516 3,887


10

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.

` in lakhs

Particulars

As at 31st March,

2017 2016

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 2017 2016

No. of Aircraft Amount

(` in lakhs)

No. of Aircraft Amount

(` in lakhs)

2015-16 - - - -

2016-17 - - 2 883

2018-19 1 460 1 470

2019-20 2 908 2 928

2020-21 3 1,400 1 503

2022-23 2 908 2 927

TOTAL 8 3,676 8 3,711

6. Trade Payables

` in lakhs

Particulars

As at 31st March,

2017 2016

Trade payables

Total outstanding dues to Micro, Small and Medium Enterprises - 3 Others for Services 20,554 24,799

TOTAL 20,554 24,802


11

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.


2017 2016

A Principal amount remaining unpaid as on 31st March - 3

B Interest due thereon as on 31st 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 31st 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 - -

7. Other Current Liabilities` in lakhs


2017 2016

Interest Accrued but not due on borrowing 403 400

Forward Sales (Net) (Passenger and Cargo) 443 785 Statutory Dues Payable 1,798 1,744 Airport Dues Payable 136 44 Balance with Banks – overdrawn as per books 66 - Advance / Deposit from Vendors and Customers 661 447 Other Payables 18 498

TOTAL 3,525 3,918

8. Short Term Provisions ` in lakhs


2017 2016

Provision for Employee Benefits

Gratuity (Refer note 28) 117 128 Compensated Absences 141 68 Others

Provision for Redelivery of Aircraft (Refer note 5) - 883 Provision for Wealth Tax * (` 52,000)

1* 1*

TOTAL 259 1,080


9. Property Plant and Equipment` in lakhs

Nature of assets

Gross Block Accumulated Depreciation Net Block

As at 1st April, 2016

Asset acquisitions/ Adjustments

Asset disposals /

Adjustments

As at 31st March, 2017

As at 1st April,

2016

For the year

Adjustment for the period Deductions /

Adjustments As at 31st



March, 2016

Plant And Machinery 2 - - 2 1 - - 1 1 1

Furniture And Fixtures

967 - - 967 958 4 - 962 5 9

Electrical Fittings 153 - - 153 151 1 - 152 1 2

Data Processing Equipment

642 - - 642 642 - - 642 - -

Office Equipment 534 - - 534 533 - - 533 1 1

Ground Support Equipment

708 - 1 707 535 59 1 593 114 173

Vehicles 85 - 16 69 85 - 16 69 - -

Ground Support Vehicles

988 - 37 951 976 1 37 940 11 12

Aircraft & Spare Engine (Narrow Body)

- 6,682 2,217 4,465 - 6,544 2,079 4,465 - -

TOTAL 4,079 6,682 2,271 8,490 3,881 65 6,544 2,133 8,357 133 198

Previous Year 4137 - 58 4,079 3,824 115 58 3,881 198

1) 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 ` in lakhs

Nature of Asset

Gross Block Amortization Net Block


Asset acquisitions

Asset disposals /

Adjustments



For the year Deductions / Adjustments




Software 1,052 - - 1,052 1,052 - - 1,052 - -

TOTAL 1,052 - - 1,052 1,052 - - 1,052 - -

Previous Year 1,052 - - 1,052 1,052 - - 1,052 - -


11. Non-Current Investments

` in lakhs


2017 2016

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# 110 110

TOTAL 110 110

* ` 1954 (Previous Year ` 1,954)

# 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` in lakhs


2017 2016

Security Deposits with Airport Authorities (Unsecured)

Considered good 38 72

Considered doubtful 92 92

Less: Provision for doubtful deposit (92) (92)

38 72

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 8,671

13. Inventories (at lower of cost or net realizable value)

` in lakhs


2017 2016

Rotables, Consumable Stores and Tools 966 7,934 Less: Provision for Obsolescence (278) (6,543)

688 1,391 Fuel 25 16 Other Stores Item 23 32

TOTAL 736 1,439

14. Trade Receivables` in lakhs

Particulars

As at 31st March,

2017 2016

Unsecured

Outstanding for a period exceeding six months from the date they are due for payment : Considered Good 200 128 Considered Doubtful 5,677 5,691 Less: Provision for Doubtful Debts (5,677) (5,691)

200 128

Other - Considered Good 142 90 Considered Doubtful - - Less: Provision for Doubtful Debts - -

142 90

TOTAL 342 218


14

15. Cash and Bank Balances` in lakhs

Particulars

As at 31st March,

2017 2016

Cash and Cash Equivalents Balances with Banks

In Current Accounts 6 665 Cash on hand 6 8

12 673

Other bank balances :

In Margin Money Accounts 402 375

TOTAL 414 1,048

16. Short Term Loans and Advances` in lakhs

Particulars

As at 31st March,

2017 2016

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 2,594 336 CENVAT Credit Receivable 5,245 3,941 Deposit with Service Tax Department 30 30 Advances and Other Receivables to / from Suppliers 2,331 7,920 Less: Provision for Doubtful Advances (789) (789) Prepaid Expenses 638 803 Others 106 165

TOTAL 11,550 16,203

17. Other Current Asset

` in lakhs

Particulars

As at 31st March,

2017 2016

Interest accrued on fixed deposits accounts 11 12

Unbilled revenue and Other Current Assets 135 70

TOTAL 146 82


15

18. Revenue From Operations` in lakhs

Particulars

Year ended 31st March,

2017 2016

Sale of Services

Passenger 115,245 104,244 Less: Service Tax (15) (9)

115,230 104,235

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 184 949

TOTAL 123,075 112,718

19. Other Income

` in lakhs

Particulars


2017 2016

Interest Income on Fixed Deposit 32 402 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 40 145 Other Non-Operating Income 184 380

TOTAL 256 937

20. Employee Benefit Expenses

` in lakhs

Particulars


2017 2016

Salaries, Wages, Bonus and Allowances 18,508 13,990

Contribution to Provident Fund, ESIC and Other Funds 413 279

Provision for Gratuity 653 104

Provision for Compensated Absences 261 21

Staff Welfare Expenses 457 359

TOTAL 20,292 14,753

21. Selling And Distribution Expenses

` in lakhs

Particulars


2017 2016

Computerized Reservation System Cost 17 99 Commission 9,258 9,016

Others - 7

TOTAL 9,275 9,122

22. Finance Costs

` in lakhs


2017 2016

Interest Expense 5,437 6,194

Other Borrowing Costs 308 405

TOTAL 5,745 6,599


16

23. Other Expenses

` in lakhs

Particulars


2017 2016

Aircraft Variable Rentals (Refer Note 30) 10,177 10,955

Aircraft Insurance and Other Insurance 668 804

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 - 418

5,492 6,199

Inflight and Other Pax Amenities 3,066 3,214

Communication Cost 214 170

Travelling and Subsistence 799 733

Rent 849 825

Rates and Taxes 7 9

Repairs and Maintenance – Others 183 108

Electricity 38 19

Director's Sitting Fees 15 5

Provision for Bad and Doubtful Debts - 274

Loss on Sale of Property, plant and equipment other than Aircraft (Net) 131 -

Miscellaneous Expenses (Including Professional Fees, Audit Fees, Printing and Stationery,

Cargo Handling and Bank Charges etc.)* 1096 835

TOTAL 32,258 32,288

* Auditor’s Remuneration

` in lakhs

Payments to auditor (Net of Service Tax Input Credit) Year ended 31st March,

2017 2016

Auditor

- Statutory Audit Fees 30 31

- Tax Audit Fees 10 9

Other Services 2 2

TOTAL 42 42

24. Exceptional Items (Expense) / Income

` in lakhs

Particulars


2017 2016

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.


17

25. Earnings Per Share ( EPS)

The earnings per equity share, computed as per the requirements of Accounting Standard–20 “Earnings Per Share” issued

by the Institute of Chartered Accountants of India, is as under:

` in lakhs

Particulars Year ended 31st March,

2017 2016

Loss after tax (5,789) (2,072)

Proposed dividend on preference capital (including dividend tax ) - -

Amount available for equity share holders A (5,789) (2,072)

Weighted Average No. of Equity Shares outstanding during the year B 796,115,409 796,115,409

Weighted Average No. of Equity Shares outstanding during the year including

potential equity shares C 796,115,409 796,115,409

Nominal Value of Equity Shares (`) 10 10

Basic and Diluted EPS (`) (A/B) (0.73) (0.26)

26. Contingent Liabilities (to the extent not provided for)

Contingent Liabilities

` in lakhs


2017 2016

a) Guarantees

i. Letters of Credit Outstanding 1,980 4,577

ii. Bank Guarantees Outstanding 13,384 13,471

iii. Corporate Guarantee on behalf of Holding Company

- Amount of Guarantee 461,985 471,994

- Outstanding amount against the guarantee 111,780 161,492

b) Claims against the Company not acknowledged as debt (Refer note below) :

i. Income Tax Demands in Appeals 2,842 2,855

ii. Fringe Benefit Tax Demands in Appeals 1,594 1,593

iii. Pending Civil and Consumer Suits 1,514 1,496

iv. Wealth Tax Demands in Appeals 24 24

v. Service Tax Demands 36,007 36,127

vi. Custom Duty Demand 12 15

vii. The Company is in receipt of favorable orders in relation to certain service tax, Fringe Benefit Tax as well as income

tax demands. However, respective tax departments have preferred an appeal against these orders before higher

appellate authorities. The amount involved (excluding interest and penalty thereon, if any, not included in such

demands) in these appeals as on 31st March 2017, with respect to service tax and income tax (including FBT)

aggregating to Rs. 30,098 lakhs (Previous year Rs. 30,098 lakhs) and Rs. 193,102 lakhs (Previous year Rs 190,193

Lakhs) respectively are not included above as there is no outstanding demand in relation to the same.

viii. Enforcement Directorate (ED) had issued a notice to erstwhile Sahara Airlines limited (SAL) [now known as Jet Lite

(India) Limited] and other officials alleging violation under section 9(1)(c) of Foreign Exchange Regulation Act’ 1973 (since

repealed) for entering into an agreement in 1995 with M/s. Avions De Transport Regional, France towards purchase of 5

ATRs for an aggregate order value of USD 672 lakhs (Equivalent to INR 43,579 lakhs) without getting the prior approval of

Reserve Bank of India. Since the agreement was never implemented, the notice has been challenged by SAL by way of writ

petition in 2002 and the said notice has been stayed by the Hon’ble High Court of judicature at Allahabad, Lucknow Bench.

The writ petition is still pending for final disposal. The amount of liability is unascertainable pending final adjudication of the

show cause notice

The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of

these proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.


18

27. In terms of the Share Purchase Agreement (SPA) entered by Jet Airways (India) Limited (Holding Company) with the selling

shareholders of the Company (formerly known as Sahara Airlines Limited), certain carved out assets and liabilities were

required to be transferred to the Selling shareholders and / or other entities of the Sahara Group at the consideration agreed

upon in the SPA. The particulars of such carved out assets / liabilities is as under:


2017 Books Value

2016 Books Value

Assets

Loan to Prakash Industries Limited 857 857

Liabilities

Loan from others (erstwhile Holding Company – Sahara Industries and Commercial

Corporation Limited)

846 846

Total Carved Out Assets / Liabilities 11 11

Less: Provision for Non-recoverable Carved Out Assets (11) (11)

TOTAL - -

28. Employee BenefitsA. Defined contribution plans

The Company makes contributions at a specified percentage of payroll cost towards Employees Provident Fund (EPF)

for qualifying employees. The Company recognized `393 lakhs (Previous year ` 274 lakhs) for provident fund

contributions in the Statement of Profit and Loss.

B. Defined benefit plan

The Company provides the annual contributions as a non-funded defined benefit plan for qualifying employees. The

scheme provides for payment to vested employees as under:

i. On Normal retirement / early retirement / withdrawal / resignation:

As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of continuous service.

ii. On death while in service:

As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity

was carried out at 31st March 2017 by an actuary. The present value of the defined benefit obligations and the related

current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following table sets out the status of the gratuity plan and the amounts recognized in the Company’s financial

statements as at 31st March 2017.

` in lakhs

Particulars

Gratuity (Non-Funded)

as at 31st March,

2017 2016

Reconciliation in Present Value of Obligations (PVO) – defined benefit obligation

PVO at the beginning of the year 844 880 Current service cost 64 91 Interest cost 68 70 Actuarial (Gain) / Loss 521 (57) Benefits Paid (57) (140)

Closing Balance 1,440 844

Net Cost for the year ended March 31,

Current Service Cost 64 91

Interest Cost 68 70

Actuarial (Gain) / Loss 521 (57)

Net Cost 653 104

Fair Value of Plan Assets Nil Nil

Experience Adjustment Actuarial loss

Plan Liability Loss / (gains) 448 (48)

Plan Assets Loss / (gains) - -

Actuarial Assumptions

Discount Rate (%) 7.57 8.07

Salary Escalation Rate (%) 5.00 5.00


19

i. The present value of defined benefit obligation was :

` in lakhs

Financial Year ended 31st March, 2015 31st March, 2014 31st March, 2013

Amount 880 762 735

ii. The fair value of planned assets was :

` in lakhs


Amount Nil Nil Nil

iii. The details of the experience adjustments arising on account of plan assets and liabilities as required by by

paragraph 120(n)(ii) of AS 15 (Revised) on “Employee Benefits” of previous financial years

` in lakhs


Plan Liabilities Loss / (Gain) (15) 90 8

Plan Assets Loss / (Gain) Nil Nil Nil

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority,

promotion and other relevant factors including supply and demand in the employment market.

C. Other Long Term Employee Benefit

The Compensated Absences (non-funded) for the year ended 31st March, 2017, amounting to ` 261 lakhs (Previous

Year ` 21 lakhs) has been recognized in the Statement of Profit and Loss, based on actuarial valuation carried out

using the the Projected Unit Credit Method.

29. During the financial year 2009-10, the Company entered into a “Power by the Hour” (PBTH) Engine Maintenance

agreement with a Service provider for its Next Generation Boeing 737 Aircraft fleet for future engine shop visits.

Subsequent to such arrangement, the Company expenses out the cost of PBTH at the rate specified in the contract with

the service provider to the Statement of Profit and Loss and to treats the variable rentals payable to the Lessors as

receivables to the extent considered good of recovery for set off against future claims reimbursable by the Lessors on each

engine shop visit. The Company is recognizing such expected refunds of variable rentals from lessors towards future

engine repairs based on joint validation of the Company’s maintenance plan with the service provider. Accordingly, such

variable rent of ` 1,297 lakhs (Previous Year ` 3,975 lakhs) has been presented as “Contribution receivable from Lessors

towards maintenance” bifurcated into current and non-current based on expected engine shop visits in next 12 months and

beyond.

30. Leases

The Company has entered into Operating Lease agreements. As required under the Accounting Standard 19 on ‘Leases’,

the future minimum lease payments of lease are as follows:

a) The Company has taken various residential / commercial premises under cancellable operating leases. Theselease agreements are normally renewed on expiry.

The future minimum lease payments under these leases for each of the following periods are as under:

Aircraft and Spare Engines ` in lakhs


2017 2016

Not later than one year 13,972 12,823

Later than one year and not later than five years 36,640 32,155

Later than five years 2,556 6,512

TOTAL 53,168 51,490


20

The Salient features of an Operating Lease agreement are:

Monthly rentals paid in form of fixed and variable rental. Variable Lease Rentals are payable on a pre-determined ratepayable on the basis of actual flying hours. Additionally, the predetermined rates of Variable Rentals are subject to theannual escalation as stipulated in the respective leases.

The Company does not have an option to buyback nor does it generally have an option to renew the leases.

In case of delayed payments, penal charges are payable as stipulated by the agreements.

In case of default, in addition to repossession of the aircraft, damages including liquidated damages as stipulated arepayable.

The Lessee is responsible for maintaining the aircraft as well as insuring the same. The Lessee is eligible to claimreimbursement of costs as per the terms of the lease agreement.

b) The lease rental expense of is `26,297 lakhs (Previous Year ` 27,872 lakhs) recognized during the year.

31. The foreign currency exposures (other than investments) that have not been hedged by any derivative instrument or

otherwise as on March 31, are as follows :


INR Equivalent

(` in lakhs)

USD Equivalent

(USD in lakhs)

INR Equivalent

(` in lakhs)

USD Equivalent

(USD in lakhs)

Assets 8,462 130 17,625 266

Liabilities 9,328 144 10,029 151

32. Segment Information

As the Company operates in only one business segment i.e. Air transportation within India, there is no separate reportable

segment as per Accounting Standard - 17 on “Segment Reporting”.

33. Related Party Transactions

As per Accounting Standard - 18 on “Related Party Disclosures”, the disclosure of transactions with the related party as

defined in the Accounting Standard are given below :

i. List of Related Parties with whom transactions have taken place and Relationships

Sr.

No. Name of the related party Nature of relationship

1. .Jet Airways (India) Limited Holding Company

2. .Jetair Private Limited

Enterprise over which controlling shareholder of Holding Company

and his relatives are able to exercise significant influence directly or

indirectly

3. .Etihad PJSC Enterprise having Significant Influence over Holding Company

ii. List of Related Parties with whom no transactions have taken place and Relationships

Sr. No. Name of the related party Nature of relationship

4. Jet Privilege Private Limited

Enterprise over which Holding Company exercise significant

influence

5. Jet Airways Training Academy Private

Limited till 15.01.2016

Fellow Subsidiary

6. Airjet Ground Services Limited w.e.f

10th March’2017

Fellow Subsidiary

7. Naresh Goyal

Controlling Shareholders of Ultimate Holding Company /

Holding Company

8. Gaurang Shetty Manager and Director


21

iii. Transactions during the year ended 31st March, 2017 and balances with related parties:

` in lakhs

Sr. No. Nature of

Transactions

Holding

Company

Enterprise

having

significant

influence

Enterprises

over which

significant

influence

Total Holding

Company

Enterprise

having

significant

influence

Enterprises

over which

significant

influence

Total

2017 2016

Transaction during the Year

(A) ORC Commission 127 127 132 132

(B) Other Hire Charges

paid351 351 333 333

(C) Loan Received 133,605 133,605 136,255 136,255

(D) Load Repaid 133,180 133,180 128,623 128,623

(E) Decrease in Corporate

Guarantee given by

the Company on

behalf of the Holding

Company

49,712 49,712 42,011 42,011

(F) Decrease in Corporate

Guarantee given by

Holding Company on

behalf of the Company

5,604 5,604 2,170 2,170

(G) Interline Billing (Net) 132,308 315 132,623 117,911 399 118,310

(H) Interline Settlement

Charges Paid9,047 2 9,049 8,736 3 8,739

(I) Interline Settlement

Charges Received 5 5 20 20

(J) Interest on Loan 4,550 4,550 4,911 4,911

Closing Balance as on 31st

March,

(A) Advance / Loan 240,207 240,207 239,782 239,782

(B) Trade Receivable 7 7 16 16

(C) Trade Payables 76 76 121 121

(D) Interest accrued but

not due403 403 400 400

(E) Corporate Guarantee

given by the Holding

Company on behalf of

the Company

16,441 16,441 22,045 22,045

(F) Corporate Guarantee

given by Company on

behalf of the Holding

Company

111,780 111,780 161,492 161,492


22

iv. Transactions during the year ended 31st March, 2017 and balances with related parties

(a) Holding company

` in lakhs

Jet Airways (India) Limited 2016-17 2015-16

Transactions during the year :

- Decrease in Corporate Guarantee given by the Holding Company on

behalf of the Company

5,604 2,170

- Decrease in Corporate Guarantee given by the Company on behalf of the

Holding Company

49,712 42,011

- Loan Received 133,605 136,255

- Loan Repaid 133,180 128,623 - Other Hire Charges Paid (Simulator) 351 333 - Interline Billing (Net) 132,308 117,911 - Interline Settlement Charges Paid 9,047 8,736 - Interest on Loan 4,550 4,911 - Interline Settlement Charges Received 5 20

Closing Balance as on 31st March

- Loan payable 240,207 239,782 - Interest accrued but not due 403 400 - Corporate Guarantee given by the Holding Company on behalf of the

Company *16,441 22,045

- Corporate Guarantee given by the Company on behalf of the HoldingCompany#

111,780 161,492

*Closing Balance of Corporate Guarantee given by Holding Company in 2017-18, represents utilized amount against

total guarantee amount of `16,441 lakhs (Previous Year ` 22,045 lakhs).

#Closing Balance of Corporate Guarantee given by Company on behalf of Holding Company in 2017-18, represents

utilized amount against total guarantee amount of ` 461,985 lakhs (Previous Year ` 471,994 lakhs). Equivalent to USD

7,124 lakhs (Previous Year USD 7,124 lakhs).

(b) Enterprise over which controlling shareholder of Ultimate Holding Company and his relatives are able to

exercise significant influence

` in lakhs

Particulars 2016-17 2015-16

Jetair Private Limited

Transactions during the Year

- ORC Commission 127 132

Closing Balance as on 31st March:

- Trade Payables 76 121

- Trade Receivables *(` 25,454) - *

Enterprise which exercise significant influence

` in lakhs

Etihad Airways PJSC 2016-17 2015-16

Transactions during the year :

- Interline Billing (Net) 315 399 - Interline Settlement Charges Received # ` 22750 *(Previous year ` 33,200) # * - Interline Settlement Charges Paid 2 3

Closing Balance as on 31st March,

- Trade Receivable 7 16


23

34. Additional Disclosures

A. C.I.F. value of Imports, Expenditure and Earnings of Foreign Currency

` in lakhs


C.I.F. value of Imports :

Components and Spares 145 102

TOTAL 145 102

Earnings in Foreign Currency :

Passenger and Cargo Revenue 1,999 2,376

(Including excess baggage and cancellation charges)

Other Operating and Non- Operating Income 118 564

TOTAL 2,117 2,940

Expenditure in Foreign Currency (on accrual basis):

Employee Remuneration and Benefits 5 -

Aircraft Fuel Expenses 2 -

Selling and Distribution Expenses 78 197

Finance Cost - 7

Other Operating Expenses 16,100 15,590

Aircraft / Engine Lease Rentals 15,270 16,093

TOTAL 31,455 31,887

B. Value of Components and Spare Parts Consumed

Particulars

2016-17 2015-16

% ` in lakhs % ` in lakhs

- Imported 99.50 601 89.22 1,626

- Indigenous 0.50 3 10.78 196

100.00 604 100.00 1,822

35. In absence of virtual certainty, deferred tax assets on account unabsorbed depreciation and brought forward business loss

has not been recognized.

36. The Company continues to get financial support from the holding company and has also been assured of such assistance in

future. In view of the fact that the holding company’s net-worth is fully eroded as at the end of the year, the going concern

assumption for the Company is dependent on the ability of the holding company to raise adequate funds. As the

management of the holding company is hopeful of being able to raise necessary funds, the Company has prepared its

accounts on going concern basis despite of erosion in its net-worth due to losses suffered.

37. The Board of Directors at its meeting held on 2nd September, 2015 approved the scheme of merger (“The Scheme”) of the

Company with Jet Airways (India) Limited, the Holding Company (Transferee Company), as per the provisions of section 391

to 394 of the Companies Act’ 1956, subject to receipt of requisite approvals. The appointed date, per the terms of the scheme

is 1st April, 2015. The Scheme was approved by the Shareholders and Creditors of both the Companies on 22nd April, 2016.

The Hon'ble Bombay High Court has since approved "The Scheme" on 20th October, 2016. The Company is now awaiting

the approval of Ministry of Civil Aviation to "The Scheme". Pending receipt of such approval, the Board of Directors at its

meeting held on 11th November, 2016 and by circular resolution dated 30th March, 2017 extended the time period for

obtaining required consents / approvals under the Scheme from 31st December, 2016 to 31st March, 2017 and subsequently

to 30th September, 2017.

Pending the approval of The Scheme, the financial statements of the Company for the year ended 31st March, 2017 have

been prepared and the effect of The Scheme is yet to be given in the financial statements of the Transferee Company.

38. In the absence of any long-term monetary items during the year, the company has not exercised the option available under

Para 46A of the Companies (Accounting Standards) Amendment Rules, 2006 which amended Accounting Standard (AS) 11

“The Effects of Changes in Foreign Exchange Rates”.


24

39. Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December,

2016.

` in lakhs

Particulars Specified Bank

Notes Other denomination

notes & coins Total

Closing Balance in hand as on 08.11.2016 2 5 7

Add: Permitted receipt - 15 15

Less: Permitted payments - 14 14

Less: Amount deposited in Banks 2 - 2

Clsoing Balance in hand as on 30.12.2016 - 6 6

Specified Bank Notes is defined as Bank notes of denominations of the existing series of the value of five hundred rupees and one

thousand rupees, as defined in the notification of the government of India, in the Ministry of Finance, Department of Economics

Affairs number S.O.3407 (E), dated 8 November, 2016.

40. Particulars of loans, guarantees or investments under Section 186

The operation of the company are classified as “infrastructure facilities” as defined under schedule VI to the act. Accordingly

the disclosure requirements specified in sub section 4 of section 186 of the Act in respect of loan given, investment made or

guarantee given or security provided and the related disclosures on purpose/utilization by recipient companies, are not

applicable to the company

41. Other information

Information with regard to other matters, as required by schedule III to the act is disclosed to the extent applicable to the

Company for the year.

42. Previous Years FiguresPrevious year’s figures have been regrouped / rearranged / reworked / reclassified wherever necessary to correspond with

the current year’s classification /presentation.




DIN:01180386

N. RavichandranActing Chief Financial Officer Membership No- 044269


Deepesh Joishar Company Secretary Membership No- 29203


Parag D. Mehta

Partner Membership No.113904 Firm Reg No.101720W


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