INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS ... - Jet Airways Lite Annual Accounts.pdf · TO THE...

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INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF JET LITE (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of JET LITE (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the 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 provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 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 the disclosures in the financial statements. 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. 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the 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.

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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, 2015, and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to Note 37 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 these matters. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the Central

Government in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 it 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 matters described in under the Emphasis of Matters 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, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with

Rule 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:

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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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For CHATURVEDI & SHAH Chartered Accountants

Firm Registration No.: 101720W

Sd/-

Parag D. Mehta

Partner

Membership No.: 113904

Place: Mumbai

Date: 28th May, 2015

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ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT (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.

b) The Company has a program of verification of fixed assets to cover all the items in a phased manner, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets 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.

2) In respect of its inventories; a) 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.

b) In our opinion and based on the information and explanations given to us, the procedures of

physical verification followed by the management of stock lying with it were reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company

has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

3) According to the information and explanations given to us the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of clause 3(iii) (a) and (b) of the Order are not applicable to the company.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of services. Sale of goods is not a significant part of the Company’s activity. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in such internal control system.

5) According to information and explanations given to us, the Company has not accepted any deposit

during the year.

6) According to information and explanations given to us, maintenance of cost records has not been prescribed for the Company by the Central Government under clause sub section (1) of section 148 of the Companies Act, 2013.

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7) According to the information and explanations given to us, in respect of statutory dues:

a) Undisputed statutory dues, including provident fund, employees’ state insurance, sales-tax,

value added tax, wealth tax, duty of customs, duty of excise, cess and any other material statutory dues, as applicable, have been generally regularly deposited with the appropriate authorities except in respect of profession tax, income tax (tax deducted at source including interest) and service tax, the delays ranged from Two day to six months. There were no undisputed amounts payable in respect of provident fund, employee state insurance, sales tax, wealth tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable except in respect of service tax (including interest) of Rs. 2,166 lac (Since Paid Rs. 652 lac) and profession tax of Rs. 19,317.

b) According to the information and explanations given to us, there are no dues of sales tax, wealth

tax, duty of customs, duty of excise, value added tax, and cess which have not been deposited on account of any dispute other than the following:

c) According to the information and explanations given to us there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under.

8) The accumulated losses at the end of the financial year are more than its net worth. The Company

has incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

9) Based on our audit procedures and according to the information and explanations given to us, there have been no defaults in the repayment of dues to financial institutions and banks.

Name of statute

Nature of the dues

Amount (Rs. lac)

Period to which the amount relates

Forum where dispute is pending

Income Tax Act,1961

Income Tax (TDS)

2,910 2011-12 Commissioner of Income Tax (Appeals)

Income Tax Act,1961

Income Tax (TDS)

1,599 2007-08 to 2014-15

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 9,861 2004-05 to 2012-13

CESTAT

Finance Act,1994

Service Tax 25,785 2003-04 to 2006-07

Supreme Court of India

Finance Act,1994

Service Tax 12,032 2003-04 to 2012-13

Commissioner of Central Excise

Customs Act, 1962

Custom Duty 12 2004-05 to 2006-07

Commissioner of Customs(Appeals)

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10) In our opinion, the terms and conditions on which the Company has given guarantees for the obligations of the Holding Company are not prejudicial to the interest of the Company.

11) In our opinion and according to the information and explanations given to us, the term loans have

been applied by the Company during the year for the purposes for which they were obtained.

12) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. We are informed that cases of possible fraudulent credit card ticket bookings aggregating to Rs. 1 lac are being pursued by the management.

For CHATURVEDI & SHAH Chartered Accountants

Firm Registration No.: 101720W

Sd/-

Parag D. Mehta

Partner

Membership No.: 113904

Place: Mumbai

Date: 28th May, 2015

JET LITE (INDIA) LIMITED

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Balance Sheet as at 31st March, 2015

` in lakhs

Particulars Note No. As at 31st

March, 2015 As at 31st

March, 2014 EQUITY AND LIABILITIES

Shareholders' Funds Share Capital 2 79,612 79,612 Reserves and Surplus 3 (323,040) (293,901)

(243,428) (214,289) Non-Current Liabilities

Long Term Borrowings 4 232,151 196,392 Long Term Provisions 5 2,563 3,570

234,714 199,962 Current Liabilities Short Term Borrowings 6 - 12,821 Trade Payables 7 36,008 38,267 Other Current Liabilities 8 7,783 13,164 Short Term Provisions 9 2,198 980

45,989 65,232

TOTAL 37,275 50,905

ASSETS Non-Current Assets Fixed Assets Tangible Assets 10 314 968 Intangible Assets 11 - -

314 968

Non-Current Investments 12 110 110

Long term Loans and Advances 13 5,293 9,117

5,403 9,227

Current Assets

Inventories 14 3,648 5,560

Trade Receivable 15 1,666 7,796

Cash and Bank Balances 16 9,420 6,107

Short Term Loans and Advances 17 16,824 21,247

31,558 40,710

TOTAL 37,275 50,905

The accompanying notes are an integral part of 1-39 the Financial Statements As per our attached report of even date On behalf of Board of Directors

For Chaturvedi & Shah Sd/-

Naresh Goyal Chairman

Sd/- Shirish Limaye Acting Chief Financial Officer

Sd/- Gaurang Shetty Director and Manager Sd/- Krupesh Mehta Company Secretary

Chartered Accountants

Sd/- Parag D. Mehta

Partner

Date: 28th May, 2015 Place: Mumbai


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Statement of Profit and Loss for the year ended 31st March, 2015

` in lakhs

Particulars

Note No.

For the Year Ended

31st March, 2015

For the Year Ended

31st March, 2014 Income

Revenue From Operations 18 142,472 173,395

Other Income 19 848

2,969

Total Revenue 143,320 176,364

Expenses

Aircraft Fuel Expenses 67,930 94,985 Employee Benefit Expenses 20 17,725 18,510 Selling and Distribution Expense 21 11,599 8,764 Aircraft and Engine Lease Rentals 21,359 28,441 Depreciation and Amortization Expense 10 & 11 281 203 Finance Costs 22 5,493 6,174 Other Expenses 23 48,225 62,678

Total expenses 172,612 219,755

Loss before Exceptional Items and Tax (29,292) (43,391) Exceptional Items 24 528 460

Loss before Tax (28,764) (42,931)

Tax Expense - Current Tax - - Deferred Tax - - Short / (Excess) Tax Provisions (Net) for Earlier Years 1 -

Loss for the year (28,765) (42,931)

Earnings per Equity Share: (Face value ` 10 Per Share) 25

Basic and Diluted (in ` ) (3.61) (8.38)

The accompanying notes are an integral part of 1-39 the Financial Statements

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




Sd/- Gaurang Shetty Director and Manager

Sd/- Krupesh Mehta Company Secretary


Sd/- Parag D. Mehta

Partner



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Cash Flow Statement for the year ended 31st March, 2015

` in lakhs

Particulars

Note No.

For the Year Ended 31st March,

2015


2014 Cash Flow from Operating Activities : Net Loss Before Tax (28,764) (42,931) Adjustments for : Depreciation / Amortisation 10 & 11 281 203 Contribution Receivable From Lessors 528 - Provision for Stock Obsolescence 1,442 530 Loss / (Profit) on Sale of Fixed Assets (Net) (3) (5) Loss on Scrapping of Fixed Assets - 45 Finance Cost 22 5,493 6,174 Interest on Income Tax Refund (173) (14) Interest on Bank and Other Deposits (423) (397) Provision No Longer required Written Back (445) (4,332) Provision for Compensated Absences and Gratuity 20 248 282 Unrealised Foreign Exchange Losses / (Gain) (Net) 1,255 (460) Provision for Doubtful debts 2,353 1,067 Bad Debts Written Off (Net of Provision) 1 220 Provision for doubtful Advances 789 -

Provision for Wealth Tax * ` 14,209 (Previous Year ` 40,000) * *

Inventory Scrapped During the year 293 193 Operating (Loss) before Working Capital Changes (18,181) (39,425)

Operating (Loss) before Working Capital Changes Changes in Inventories 177 64 Changes in Trade Receivables 3,657 3,672 Changes in Loans and Advances 5,768 10,617 Changes in Trade Payables, Other Current Liabilities and Provisions (7,062) (28,506) Cash generated from Operations (15,641) (53,578) Direct Taxes Refund / (Paid) 1,141 (15) Net cash from operating activities (14,500) (53,593) Cash Flow from Investing Activities : Purchase of Fixed Assets 10 (1) (2) Proceeds from Sale of Fixed Assets 3 11 Changes in Fixed Deposits with Banks (Refer note 1 below) (3,188) 4,459 Interest Received on Bank and Other Deposits 301 733

Net Cash Flow from / (used in) Investing Activities (2,885) 5,201

Cash Flow from Financing Activities Net decrease / (Increase) in Short Term Loans (12,821) (5,000) Proceeds from Long Term Loan 134,499 205,263 Repayment of Long Term Loans during the year 98,740 (142,531) Interest and Finance Charges Paid (5,552) (7,092) Net Cash from / (used in) Financing Activities 17,386 50,640


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Particulars

Note No.


201


2014 Net Increase in Cash and Cash Equivalents 3 2,248 Cash and Cash Equivalents as at the Beginning of the year 16 2,371 123 Cash and Cash Equivalents as at End of the year 16 2,374 2,371

Notes:

1) Fixed Deposits with banks with maturity period of more than three months and Fixed Deposits under lien amounting to

` 6,748 lakhs (Previous Year ` 3,559 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.

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



Sd/-

Shirish Limaye Acting Chief Financial Officer

Sd/- Gaurang Shetty Director and Manager

Sd/- Krupesh Mehta Company Secretary


Sd/-

Parag D. Mehta

Partner



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Notes to the Financial Statements for the Year Ended 31st March, 2015

1. Significant Accounting Policies

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India

(Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

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.

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 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. 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:

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 schemes 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.

F. FIXED ASSETS : a) Tangible Assets :

Owned tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. All costs relating to acquisition and installation of fixed assets upto the time the assets get ready for their intended use are capitalised.

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.


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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 tangible fixed assets is provided on the 'Straight Line Method' over the useful life of assets 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 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.

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 formula. In respect of reusable items such as rotables, galley equipment and

tooling etc., NRV takes into consideration provision for obsolescence and wear and tear based on the estimated useful

life of the spares and also provisioning for non – moving / slow moving items.

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.


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2. Share Capital

` in lakhs

Particulars As at 31st March,

2015 2014

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,

2015 2014

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 79,612 506,115,409 50,612

Add : Conversion of CFCNCP to Equity Shares - - 290,000,000 29,000

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

Compulsorily Fully Convertible Non-Cumulative

Preference (CFCNCP) Shares of ` 10/- each

Outstanding as at the beginning of the year - - 290,000,000 29,000

(Less) : Conversion of CFCNCP to Equity Shares - - (290,000,000) (29,000)

Outstanding as at the end of the year - - - -

TOTAL 796,115,409 79,612 796,115,409 79,612

b. Shareholders holding more than 5% of share capital and shares held by Holding Company / Ultimate Holding

Company

Name of the Shareholder

As at 31st March,

2015 2014

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.


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3. Reserves and Surplus

` in lakhs As at 31st March,

Particulars 2015 2014

Capital Reserve (Refer note 12)

As per last Balance Sheet 110 110

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 (298,477) (255,546) Add: Additional Depreciation pursuant to enactment of schedule II of the Companies Act, 2013 (Refer Note 10)

(374) -

Add: Loss for the year (28,765) (42,931)

Balance at the end of the year (327,616) (298,477)

TOTAL (323,040) (293,901)

4. Long Term Borrowings

` in lakhs

Particulars

As at 31st March,

2015 2014

Unsecured

Loan from Related Party 232,151 196,392

TOTAL 232,151 196,392

Salient Terms

Loan of ` 232,151 lakhs (Previous Year ` 196,392 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,

2015 2014 Provision for employee benefits

Gratuity (Refer note 28) 777 650 Compensated Absences 424 394

Provision for Redelivery of Aircraft 1,362 2,526

TOTAL 2,563 3,570

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,

2015 2014


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Opening Balance 3,284 2,708

Add : Additional Provisions during the year* 1,085 1,614

Less : Amounts used during the year / reversed during the year (971) (1,038)

Closing Balance 3,398 3,284

* Additions include adjustment of ` 138 lakhs (Previous Year ` 188 lakhs) on account of exchange loss / (gain)

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

2015 2014

No. of Aircraft Amount

(` in lakhs)

No. of Aircraft Amount

(` in lakhs)

2014-15 - - 2 758

2015-16 5 2,035 5 1,662

2016-17 2 750 2 634

2018-19 1 438 - -

2020-21 1 175 2 230

TOTAL 9 3,398 11 3,284

6. Short Term Borrowings

` in lakhs Particulars

As at 31st March,

2015 2014

Secured

Loans Repayable on Demand

From Banks

Rupee Loans (refer note below) - 12,821

TOTAL - 12,821

Nature of Security: Note:

Rupee loan from banks amounting to ` Nil (Previous Year ` 12,821) are secured by hypothecation of Spares, Book Debts,

receivables, collateral of Ground Support Vehicles (excluding trucks, jeeps, aircraft etc.) and Corporate Guarantee of Jet Airways (India) Limited, the Holding Company. Interest is charged by the bank at Base Rate + 6.75%.

7. Trade Payables

` in lakhs

Particulars

As at 31st March,

2015 2014

Trade payables Total outstanding dues to Micro, Small and Medium Enterprises 8 7 Others for Services 36,000 38,260

TOTAL 36,008 38,267

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.

Particulars As at 31st March, 2015 2014

A Principal amount remaining unpaid as on 31st March 8 7

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 - -


10

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 - -

8. Other Current Liabilities

` in lakhs

Particulars

As at 31st March, 2015 2014

Interest Accrued but not due on borrowing 302 -

Forward Sales (Net) (Passenger and Cargo) 2,381 10,101 Statutory Dues Payable 1,822 1,876 Airport Dues Payable 44 22 Advance / Deposit from Vendors and Customers 713 861 Other Payables 2,521 304

TOTAL 7,783 13,164

9. Short Term Provisions

` in lakhs

Particulars


Provision for Employee Benefits Gratuity (Refer note 28) 103 112 Compensated Absences 58 110

Others Provision for Redelivery of Aircraft (Refer note 5) 2,036 758 Provision for Wealth Tax

* (` 40,000) 1 *

TOTAL 2,198 980


10. Tangible assets

` in lakhs

Tangible assets

Gross Block Depreciation Net Block

As at 1st April, 2014

Asset acquisition

s

Asset disposals /

Adjustments

As at 31st March, 2015

As at 1st April,

2014

Retained Earnings

(Refer note below)

For the year

Deductions / Adjustments




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

Furniture And Fixtures 967 - - 967 658 87 166 - 911 56 309

Electrical Fittings 153 - - 153 93 20 31 - 144 9 60 Data Processing Equipment 642 - - 642 632 5 5 - 642 - 10

Office Equipment 534 * * 534 306 227 - * 533 1 228 Ground Support Equipment 719 - - 719 395 17 75 - 487 232 324

Vehicles 115 - 30 85 102 9 3 30 84 1 13 Ground Support Vehicles 1,059 - 24 1035 1,036 9 1 24 1022 13 23

TOTAL 4,191 - 54 4137 3,223 374 281 54 3,814 313 968

Previous Year 4,446 2 257 4,191 3,226 203 206 3,223 968 Capital Work-in-Progress - -

*Asset acquisitions include ` 40,125, Asset disposals of ` 44,900, and depreciation on it ` 44,900

1) Note : Pursuant to the Company adopting the useful life of fixed assets as indicated in part 'C' of Schedule II of the Companies Act, 2013, coming in to effect from 1st April, 2014, the depreciation

charge for the Year ended 31st March, 2015 is higher (net) by ` 147 lakhs. Further, in respect of assets which have completed their useful life as at 1st April, 2014, their carrying value amounting to `

374 lakhs has been adjusted against retained earnings.


12

11. Intangible Assets

` in lakhs

Intangible assets

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 -

*Asset acquisitions include ` 39,517.


12. Non-Current Investments

` in lakhs


2015 2014

Trade Investments (Unquoted and at cost)

7 Shares (Previous Year 7 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

* ` 2,331 (Previous Year ` 2,331)

# 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.

13. Long term Loans and Advances

` in lakhs

Particulars


Security Deposits with Airport Authorities (Unsecured) Considered good 57 68

Considered doubtful 92 92

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

57 68

Security Deposits with lessors (Unsecured, considered good) 999 3,761

Contribution Receivable from lessors (Refer note 29) 2,316 2,397

Advance Tax and Tax Deducted at Source (Net of Provision for tax) 1,921 2,891

TOTAL 5,293 9,117

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

` in lakhs

Particulars


Rotables, Consumable Stores and Tools 10,054 10,558 Less: Provision for Obsolescence (6,460) (5,103) 3,594 5,455 Fuel 21 69 Other Stores Item 33 36

TOTAL 3,648 5,560

15. Trade Receivables

` in lakhs

Particulars

As at 31st March,

2015 2014

Unsecured Outstanding for a period exceeding six months from the date they are due for payment : Considered Good 1,596 3,287 Considered Doubtful 5,430 3,301 Less: Provision for Doubtful Debts (5,430) (3,301) 1,596 3,287 Other - Considered Good 70 4,509 Considered Doubtful - - Less: Provision for Doubtful Debts - -

70 7,796

TOTAL 1,666 7,796


14

16. Cash and Bank Balances

` in lakhs

Particulars

As at 31st March,

2015 2014

Cash and Cash Equivalents Balances with Banks In Current Accounts 2,362 2,352 Cash on hand 12 19 2,374 2,371 Other bank balances :

In Margin Money Accounts * (including interest accrued ` 298 lakhs Previous Year ` 176 lakhs) 7,046 3,736

TOTAL 9,420 6,107

*Balances in margin money accounts include deposits of ` 31 lakhs (Previous Year ` 281 lakhs) with maturity of more than 12

months

17. Short Term Loans and Advances

` in lakhs

Particulars

As at 31st March,

2015 2014

Unsecured and Considered Good unless otherwise stated Security Deposits with Lessors / Vendors - Considered Good 3,017 2,009 - Considered Doubtful 19 88 Less: Provision for Doubtful Deposits (19) (88) 3017 2,009 Contribution Receivable From Lessor (Refer note 29) 3,686 7,025 Claim Receivable from Lessor / Creditors 5,816 2910 CENVAT Credit Receivable 766 820 Deposit with Service Tax Department 30 30 Advances and Other Receivables to / from Suppliers 3,262 7,084 Less: Provision for Doubtful Advances (789) - Prepaid Expenses 991 1,257 Others 45 112

TOTAL 16,824 21,247


15

18. Revenue From Operations

` in lakhs

Particulars

Year ended 31st March, 2015 2014

Sale of Services Passenger 132,773 159,695 Less: Service Tax 3,095 (4,949)

129,678 154,746 Cargo 5,956 5,773 Less: Service Tax (616) (593)

5,340 5,180 Excess Baggage 1,888 2,268 Other Operating Revenues

Cancellation Charges 3,728 4,711 Provision no longer required written back 445 4,332 Other Revenue 1,393 2,158

TOTAL 142,472 173,395

19. Other Income

` in lakhs

Particulars

Year ended 31st March,

2015 2014

Interest Income on Fixed Deposit 423 397 Interest Income on Income Tax Refund 173 14 Profit on Sale of Other Fixed Assets (Net) 3 5 Net Gain on Foreign Currency Transaction and Translation - 1,685 Other Non-Operating Income 249 868

TOTAL 848 2,969

20. Employee Benefit Expenses

` in lakhs

Particulars


2015 2014

Salaries, Wages, Bonus and Allowances 16,539 17,068 Contribution to Provident Fund, ESIC and Other Funds 326 372 Provision for Gratuity 235 111 Provision for Compensated Absences 13 171 Staff Welfare Expenses 612 788

TOTAL 17,725 18,510

21. Selling And Distribution Expenses

` in lakhs

Particulars


2015 2014

Computerized Reservation System Cost 6,440 7,489 Commission 4,992 1,000 Others 167 275

TOTAL 11,599 8,764

22. Finance Costs

` in lakhs

Year ended 31st March, 2015 2014

Interest Expense 4,796 5,144 Other Borrowing Costs 697 1,030

TOTAL 5,493 6,174


16

23. Other Expenses

` in lakhs

Particulars


2015 2014

Aircraft Variable Rentals (Refer Note 30) 9,098 23,833 Aircraft Insurance and Other Insurance 1,192 1,174 Landing, Navigation and Other Airport Charges 9,637 11,369 Aircraft Maintenance (including Customs Duty and Freight, where applicable) :

- Component Repairs, Recertification, Exchange, Consignment

Fees and Aircraft Overhaul (Net) 14,562 19,532

- Consumption of Stores and Spares 617 348

- Provision for Spares Obsolescence 1,442 530

16,621 20,410

Inflight and Other Pax Amenities 2,115 1,208 Communication Cost 162 222 Travelling and Subsistence 1,222 1,446

Rent 1,004 462

Rates and Taxes 4 4

Repairs and Maintenance – Others 196 215

Electricity 19 22

Provision for Bad and Doubtful Debts 2,353 1,067

Provision for Doubtful Advances 789 -

Bad Debts Written off 1 220

Net loss on Foreign Currency Transaction and Translation 64 -

Loss on Scrapping Fixed Assets Other Than Aircraft Parts - 45

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

Cargo Handling and Bank Charges etc.)* 3,748 981

TOTAL 48,225 62,678

* Auditor’s Remuneration

` in lakhs

Payments to auditor (Net of Service Tax Input Credit) Year ended 31st March, 2015 2014

Auditor

- Statutory Audit Fees 30 31

- Tax Audit Fees 17 5

Other Services 2 24

TOTAL 49 60

24. Exceptional Items (Expense) / Income

` in lakhs

Particulars


2015 2014

Unrealized Exchange Gain - 460 Contribution from Lessor 528 -

TOTAL 528 460


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,

2015 2014

Loss after tax (28,765) (42,931)

Proposed dividend on preference capital (including dividend tax ) -

Amount available for equity share holders A (28,765) (42,931)

Weighted Average No. of Equity Shares outstanding during the year B 796,115,409 512,471,573

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

potential equity shares* C 796,115,409 512,471,573*

Nominal Value of Equity Shares (`) 10 10

Basic and Diluted EPS (`) (A/B) (3.61) (8.38)

*290,000,000 CFCNCP Shares, per the terms, were to be compulsorily converted into equity shares any time after 3 years

but not later than 7 years from the date of allotment i.e. 13th April, 2007, at the discretion of the Board of Directors.

Pursuant to the Board resolution dated 24th March, 2014 CFCNCP Shares converted in to equity shares of 290,000,000 of `

10 each.

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

Contingent Liabilities

` in lakhs


2015 2014

a) Guarantees

i. Letters of Credit Outstanding 4,852 5,913

ii. Bank Guarantees Outstanding 13,588 14,044

iii. Corporate Guarantee on behalf of Holding Company

- Amount of Guarantee 445,244 426,829

- Outstanding amount against the guarantee 203,503 242,411

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

i. Income Tax Demands in Appeals 4,514 5,747

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

iii. Pending Civil and Consumer Suits 2,675 1,273

iv. Wealth Tax Demands in Appeals 24 24

v. Service Tax Demands 47,707 39,309

vi. Custom Duty Demand 12 12

-

-

vii. 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 41,969 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:


2015 Books Value

2014 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 Benefits A. 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 ` 320 lakhs (Previous year ` 365 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 2015 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 2015.

` in lakhs

Particulars

Gratuity (Non-Funded)

as at 31st March,

2015 2014

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

PVO at the beginning of the year 762 735 Current service cost 66 73 Interest cost 71 59 Actuarial Gain / (Loss) 97 (21) Benefits Paid (116) (84) Closing Balance 880 762

Net Cost for the year ended March 31,

Current Service Cost 66 73

Interest Cost 71 59

Actuarial Gain / (Loss) 97 (21)

Net Cost 234 111

Fair Value of Plan Assets Nil Nil

Experience Adjustment Actuarial loss

Plan Liability Loss / (gains) (15) 90

Plan Assets Loss / (gains) - -

Actuarial Assumptions

Discount Rate (%) 7.96 9.31

Salary Escalation Rate (%) 5.00 5.00


19

i. The present value of defined benefit obligation was :

` in lakhs

Financial Year ended 31st March, 2013 31st March, 2012 31st March, 2011

Amount 735 615 549

ii. The fair value of planned assets was :

` in lakhs

Financial Year ended 31st March, 2013 31st March, 2012 31st March, 2011

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

R 31st March, 2013 31st March, 2012 31st March, 2011

Plan Liabilities Loss / (Gain) 8 65 132

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, 2015, amounting to ` 13 lakhs (Previous

Year ` 171 lakhs) has been recognized in the Statement of Profit and Loss, based on actuarial valuation carried out

using the Projected Accrued Benefit 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 ` 6,002 lakhs (Previous Year ` 9,422 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. These lease agreements are normally renewed on expiry.

b) The Company has taken Aircrafts and Spare engines on operating lease against which Lease Rental expense

(Fixed and Variable) recognized is ` 30,457 lakhs (Previous Year ` 52,274 lakhs).

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

Aircraft and Spare Engines ` in lakhs


2015 2014

Not later than one year 12,447 21,404

Later than one year and not later than five years 16,292 29,654

Later than five years 88 4,986

TOTAL 28,827 56,044


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 rate payable on the basis of actual flying hours. Additionally, the predetermined rates of Variable Rentals are subject to the annual 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 are payable.

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

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 17,150 274 22,010 367

Liabilities 12,080 193 11,383 190

32. Segment Information

a) Primary segment: Geographical Segment

The Company, considering its level of operations and internal financial reporting based on geographic segment, has identified geographic segment as primary segment.

The geographic segment consists of:

i. Domestic (air transportation within India)

ii. International (air transportation outside India)

Revenue and expenses directly attributable to segments are reported based on items that are individually identifiable to that segment, while the remainder of the expenses are categorized as unallocated which are mainly employee remuneration and benefits, other selling and distribution expenses, other operating expenses, aircraft lease rentals, depreciation / amortization and interest, since these are not specifically allocable to specific segments as the underlying assets / services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to these revenue and expenses, and accordingly these expenses are separately disclosed as “unallocated” and directly charged against total revenues.

The Company believes that it is not practical to identify fixed assets used in the Company’s business or liabilities contracted, to any of the reportable segments, as the fixed assets are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities are made.

` in lakhs

Particulars


2015 2014

Passenger and Cargo Revenue (Including Excess Baggage)

Domestic 142,472 173,395

International - -

Total 142,472 173,395

Segment Result

Domestic 61,365 66,498

International - -

Total 61,365 66,498

Less : Depreciation and Amortization 281 203

Less: Un-Allocable Expenditure 85,730 106,481

Add: Un-allocable Revenue 848 2,969

Add / (Less): Exceptional Items 528 460


21

(Loss) before Finance Cost (23,270) (36,757)

Less: Finance Cost 5,493 6,174

(Loss) before tax (28,764) (42,931)

Less: Tax (Benefits) / Expenses 1 -

(Loss) after tax (28,765) (42,931)

b) Secondary Segment: Business Segment

The Company is operating into a single business i.e. Air Transportation and as such all business activities revolve around

this segment. Hence, there is no separate secondary segment to be reported considering the requirement of AS 17 on

“Segment Reporting”.

33. Related Party Transactions

As per Accounting Standard - 18 on “Related Party Disclosures” issued by the Institute of Chartered Accountants of India,

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 Ultimate

Holding Company / Holding Company and his relatives are

able to exercise significant influence directly or indirectly

3. . Etihad PJSC Enterprise having Significant Influence over Holding

Company (w.e.f.20th November, 2013)

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

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

1. Tail Winds Limited (Upto 30th May,

2013) Ultimate Holding Company

2. Jet Privilege Private Limited

Enterprise over which Holding Company exercise significant

influence (Fellow Subsidiary Upto 23rd March, 2014)

3. Jet Airways Training Academy Private

Limited

Fellow Subsidiary

4. . Naresh Goyal

Controlling Shareholders of Ultimate Holding Company /

Holding Company

5. Gaurang Shetty Manager and Director


22

iii. Transactions during the year ended 31st March, 2015 and balances with related parties:

` in lakhs

Sr. No. Nature of

Transactions

Holding

Company

Enterprise

exercising

significant

influence

Enterprises

under

significant

influence

Total Holding

Company

Enterprise

exercising

significant

influence

Enterprises

under

significant

influence

Total

2015 2014

Transaction during the Year

(A) ORC Commission 154 154 145 145

(B) Other Hire Charges

paid 118

118 685

685

(C) Loan Received 134,499 134,499 205,263 205,263

(D) Load Repaid 98,740 98,740 142,531 142,531

(E) Decrease in Corporate

Guarantee given by

the Company on

behalf of the Holding

Company

38,908

18,566

(F) Increase in Corporate

Guarantee given by

Holding Company on

behalf of the Company

18,547

18,547

(G) Decrease in Corporate

Guarantee given by

Holding Company on


6,804

6,804

(H) Interline Billing (Net) 62,748 211 62,959 47,942 18 47,960

(I) Interline Settlement

Charges Paid 3,137 6 3,143

(J) Interline Settlement

Charges Received 117

117

(K) Interest on Loan 1,851 1,851

(L) Reimbursement of

Expenses Paid 6

6

Closing Balance as on 31st

March,

(A) Advance / Loan 232,151 232,151 196,392 196,392

(B) Trade Receivable 16 30 46 5 29 34

(C) Trade Payables 88 88 29 29

(D) Interest accrued but

not due 302

302

(E) Corporate Guarantee

given by the Holding

Company on behalf of

the Company

24,215

24,215 35,358

35,358

(F) Corporate Guarantee

given by Company on

behalf of the Holding

Company

203,503

203,503 242,411

242,411


23

iv. Transactions during the year ended 31st March, 2015 and balances with related parties

(a) Holding company

` in lakhs

Jet Airways (India) Limited 2014-15 2013-14

Transactions during the year : - Increase in Corporate Guarantee given by the Holding Company on

behalf of the Company - 18,547

- Decrease in Corporate Guarantee given by the Holding Company on


6,804 -

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

Holding Company

38,908 18,566

- Loan Received 134,499 205,263

- Loan Repaid 98,740 142,531 - Other Hire Charges Paid (Simulator) 118 685 - Interline Billing (Net) 62,748 47,942 - Interline Settlement Charges Paid 3,137 - - Interest on Loan 1,851 - - Reimbursement of Expenses Paid 6 - - Interline Settlement Charges Received 117 -

Closing Balance as on 31st March, 2014 - Loan payable 232,151 196,392 - Interest accrued but not due 302 - - Corporate Guarantee given by the Holding Company on behalf of the

Company * 24,215 35,358

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

203,503 242,411

*Closing Balance of Corporate Guarantee given by Holding Company in 2014-15, represents utilized amount against total

guarantee amount of ` 30,776 lakhs (Previous Year ` 37,580 lakhs).

#Closing Balance of Corporate Guarantee given by Company on behalf of Holding Company in 2014-15, represents utilized

amount against total guarantee amount of ` 445,244 lakhs (Previous Year ` 426,829 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 2014-15 2013-14

Jetair Private Limited

Transactions during the Year

- ORC Commission 154 145

Closing Balance as on 31st March:

- Trade Payables 88 29 - Trade Receivables 30 29

(c) Enterprise which exercise significant influence

` in lakhs

Etihad Airways PJSC (From 20th November 2013) 2014-15 2013-14

Transactions during the year : - Interline Billing (Net) 211 18

- Interline Settlement Charges Received * ` 33,200 (Previous ` 4,042) * *

- Interline Settlement Charges Paid # ( Previous ` 55,531) 6 #

Closing Balance as on 31st March, - Trade Receivable 16 5


24

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 238 131

TOTAL 238 131

Earnings in Foreign Currency :

Passenger and Cargo Revenue 2,285 1,873

(Including excess baggage and cancellation charges)

Other Operating and Non- Operating Income 1,226 1,986 TOTAL 3,511 3,859

Expenditure in Foreign Currency (on accrual basis):

Employee Remuneration and Benefits 60 1

Aircraft Fuel Expenses 17 10

Selling and Distribution Expenses 6,702 7,596

Finance Cost 82 109

Other Operating Expenses 24,133 44,401

Aircraft / Engine Lease Rentals 21,359 27,882 TOTAL 52,353 79,999

B. Value of Components and Spare Parts Consumed

Particulars

2014-15 2013-14

% ` in lakhs % ` in lakhs

- Imported 96.17 593 97.13 338

- Indigenous 3.83 24 2.87 10

100.00 617 100.00 348

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

has not been recognized.

36. FREQUENT FLYER PROGRAMME :

The Holding Company had a Frequent Flyer Programme named ‘Jet Privilege’, wherein the passengers who frequently use

the services of the Airline become members of ‘Jet Privilege’ and accumulate miles to their credit. The passenger miles were

accumulated in the said ‘Jet Privilege’ programme. Subject to certain terms and conditions of ‘Jet Privilege’, the passenger is

eligible to redeem such miles lying to their credit in the form of free tickets.

The cost of allowing free travel to members as contractually agreed under the Frequent Flyer Programme was

accounted upto 21st April, 2014 considering the members’ accumulated mileage on an incremental cost basis.

37. 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 has also incurred losses and its 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.

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”.


25

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

the current year’s classification /presentation. As per our attached report of even date On behalf of Board of Directors




Sd/- Gaurang Shetty Director and Manager Sd/- Krupesh Mehta Company Secretary


Sd/-

Parag D. Mehta

Partner


INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS ... - Jet Airways Lite Annual Accounts.pdf · TO THE...

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