We have audited the accompanying standalone financial statements of InterGlobe Aviation Limited ("the Company"), which comprise
the Balance sheet as at 31 March 2026, the Statement of Profit and Loss, including the statement of Other Comprehensive Income,
the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial
statements, including a summary of material accounting policies and other explanatory information.
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 Companies Act, 2013, as amended ("the Act") in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at
31 March 2026, its loss including other comprehensive Income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditor's Responsibilities for
the Audit of the Standalone Financial Statements' section of our report. We are independent of the Company in accordance with the
'Code of Cthics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of ethics. 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements for the financial year ended 31 March 2026. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the
responsibilities described in the Auditor's responsibilities for the audit of the standalone financial statements section of our report,
including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone
financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Recognition of Passenger Revenue (refer note 23 to the standalone financial statements)
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The Company recognises passenger revenue on flown basis
i.e., when the service is rendered. Moreover, fees charged for
cancellation of flight tickets is recognised as revenue on rendering
of the said service.
The determination of passenger revenue to be recognised for
each flight requires complex IT systems and involves high volume
of transactions.
We identified revenue recognition as a key audit matter because
passenger revenue is one of the Company's key performance
indicators, it involves complicated IT systems that handle large
volumes of transaction data, includes exchange of information
with industry systems and partner airlines and judgement is
required by management in determining the unexercised rights of
passengers, all of which give rise to an inherent risk that revenue
could be recorded in the incorrect period or at incorrect amount.
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Our procedures included, but were not limited to the following:
• assessed that the revenue recognition policy is in line with
Ind AS 115 'Revenue from Contracts with Customers';
• involved our IT specialist to assist in assessing the
design, implementation and operating effectiveness of
management's general IT controls and key application
controls over the Company's IT systems and third- party
systems (assessed the assurance report, i.e., the SSAE 16
report, attesting the appropriateness and effectiveness
of the internal control system established by the service
provider) which govern revenue recognition, and key manual
internal controls over passenger revenue recognition,
including controls related to estimation of trends in respect
of unused tickets and testing of preventive controls over
unauthorised override;
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Key audit matters
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How our audit addressed the key audit matter
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performed tests of details such as tested revenue and
collection reconciliations of Company's records with
reports generated from third party systems, tested manual
journal entries posted into relevant revenue accounts in
the sub-ledger and general ledger which met specified
risk-based criteria;
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performed tests to verify that the timing of passenger
revenue recognition was appropriate.
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Lease accounting, incentives and corresponding tax implications (refer note 4 and 18.b to the standalone financial statements)
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The Company operates certain new and used aircraft under lease
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Our audit procedures included but were not limited to:
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arrangements.
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tested that the Company's accounting policies are in
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For determination of the appropriate lease accounting under
Ind AS 116, basis classification of leases, sale and leaseback
transactions, and corresponding tax treatment, the Company has
considered the substance of the transaction rather than just the
legal form including among other factors, treatment of receipt of
non-refundable incentives in connection with acquisition of new
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compliance with requirements of Ind AS 116, including
consideration of exemptions;
assessed the design, implementation and operating
effectiveness of management's key internal controls over
process for identifying lease contracts, or contracts which
contain leases, related incentives and accounting thereof;
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aircrafts.
We considered lease accounting, of aircraft and other leases
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tested the completeness of the data in the aircraft lease
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master by validating the key terms of the aircraft acquisition
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(including the corresponding tax treatment), as a key audit
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and leases agreements (including modifications) and
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matter due to significant judgement required in the assumptions
and estimates used to determine the Right of Use (ROU) asset
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assessed management judgements used in determining the
classification of leases;
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and lease liability, viz assessment of lease term (including
modification terms), determination of appropriate incremental
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performed tests of details to examine the inputs used for
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borrowing rate, treatment of non-refundable incentives received
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determining right of use assets and lease liabilities related
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in connection with the acquisition of the aircrafts and other
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to lease contracts with underlying lease agreements
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assets in ROU, componentisation of the ROU asset, and the
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including related incentives received and performed
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tax treatment of incentives involves a significant degree of
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computation checks on the amount of lease liability and the
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management judgement in interpreting the various relevant
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right to use, tracing of the same to bank statements, credit
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rules, regulations and practices.
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notes, underlying contracts/ documents;
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assessed the inputs used for determination of the incremental
borrowing rate including, assessment of lease term by
reference to the underlying lease contracts and market data;
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engaged our internal tax specialists to assess Company's
assumptions, critical judgements made by management
on the tax treatment of incentives, which impacted their
estimations of the provisions required for open tax
assessments and for other years, basis the favourable ITAT
special bench orders received by the Company, opinions
given by third party tax advisors.
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assessed the disclosures in respect of the tax position in
note 33 to the standalone financial statements.
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Aircraft Maintenance Obligations (refer note 19 to the standalone financial statements)
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The Company operates aircraft which are owned or held under
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Our audit procedures to assess aircraft maintenance provisions
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lease arrangements and incurs liabilities for maintenance costs in
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included but were not limited to the following:
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respect of aircraft leased during the term of the lease.
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assessed the design, implementation and operating
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These arise from legal and contractual obligations relating to the
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effectiveness of the management's internal controls over the
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condition of the aircraft when it is returned to the lessor.
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maintenance process including accounting for maintenance
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At each reporting date, the calculation of the maintenance
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provisions for aircraft held under operating leases;
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provision includes a number of variable factors and assumptions
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assessed the provision recorded and key assumptions
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including: likely utilisation of the aircraft; the expected cost of
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adopted by management in estimating the provisions
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the heavy maintenance check at the future date it is expected
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and any changes therein, and reviewed the terms of the
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to occur; the condition of the aircraft engine, contractual return
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operating leases, compared assumptions to contract terms
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conditions.
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and the Company's maintenance cost experience;
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Key audit matters
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How our audit addressed the key audit matter
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Given the involvement of inherent level of management
judgement required as a result of the complex and subjective
element around these variable factors and assumptions in order
to quantify the provision amounts, we have identified this as a
key audit matter.
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• obtained information about the utilisation pattern by
reference to the expected future maintenance event dates
from Company's appropriate personnel and assessed
the consistency of the provisions with the engineering
department's assessment of the condition of aircraft, based
on analysis of historical flight hours, estimate of the cost of
maintenance work to historic invoices;
• assessed the provision by ensuring that all significant return
condition obligations included in aircraft lease contracts
have been considered;
• performed sensitivity analysis around the key assumptions.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information included in
the Annual report, but does not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing
so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of 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 including other
comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of 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 the 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 standalone
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness
of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the standalone financial statements for the financial year ended 31 March 2026 and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the "Annexure 1" 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 except, for the matter stated in the paragraph (i) (vi) below on reporting under Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity 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 Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on 31 March 2026 taken on record by the Board
of Directors, none of the directors is disqualified as on 31 March 2026 from being appointed as a director in terms of Section
164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements and the
operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(g) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in the
paragraph (b) above on reporting under Section 143(3)(b) and paragraph (i)(vi) below on reporting under Rule 11(g);
(h) In our opinion, the managerial remuneration for the year ended 31 March 2026 has been paid / provided by the Company
to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(i) 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, as amended 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 standalone financial
statements - Refer Note 33 to the standalone 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;
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the
Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations under sub¬
clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in
accordance with section 123 of the Act to the extent it applies to payment of dividend.
vi. Based on our examination which included test checks, as stated in Note 42 to the financial statements, the Company
has used accounting software for maintaining its books of account which has a feature of recording audit trail facility
and the same has operated throughout the year for all relevant transactions recorded in the software at the application
level for all software and at the database level for the software used for accounting transactions and managing cargo
revenue. For an accounting software used for managing passenger revenue of the Company the audit trail facility at
database level was enabled during the year on 29 October 2025.
The accounting software used for managing loyalty points of the Company is operated by third-party software service
provider. In the absence of any information on existence of audit trail (edit logs) for any direct changes made at the
database level in the 'Independent Service Auditor's Assurance Report on the Description of Controls, their Design and
Operating effectiveness' ('SOC Type 2 report'), we are unable to comment on whether audit trail feature with respect
to the database level of the said software was enabled and operated throughout the year.
The audit trail in respect of prior years has been preserved by the Company as per the statutory requirement for record
retention, to the extent it was enabled in those prior years. Additionally, we did not come across any instance of audit
trail feature being tampered with respect to the accounting software.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Vij
Partner
Membership Number: 095169
UDIN: 26095169PNFETE3242
Place of Signature: Gurugram
Date: May 29, 2026
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