d. Terms / rights attached to the equity shares
The Company has one class of equity share having a par value of Rs. 10 per share. Cach holder of the equity share is entitled to one vote per share and is entitled to dividend declared, if any. The paid up equity shares of the Company rank pari-passu in all respects, including dividend. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The interim dividend is declared by the Board of Directors. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
*Markup is 305 basis points over 6 month USD SOFR (275 basis points over 6 month USD LIBOR upto June 30, 2023). The period of maturity from the date of origination was 143 months.
#The above mentioned loan was repayable in two equal installments of USD 5.5 million between the period April 2024 - June 2024. Foreign currency term loan was secured by way of assignment of rights, title, benefits and interests of the Company in respect to Buyer-furnished equipment ('BFE') installed or to be installed in the aircraft under BFE Security and Assignment Agreement. Moreover, the lender has a contractual right to buy certain aircraft to be delivered to the Company partially by utilising the predelivery payments under the agreement signed by Airbus S.A.S, lender and the Company.
There are no defaults as on reporting date in repayment of principal and interest.
Secured - Working capital loans As at March 31,2025
Working capital loans are repayable in 2 to 4 days from the reporting date. These loans are drawn under banking facilities that are revolving in nature i.e., can be redrawn upon repayment.
Rate of interest on working capital loans is 8.35% per annum.
Working capital loans are secured through first pari passu charge by way of hypothecation on current assets (excluding cash and cash equivalents, bank balances and investments of the Company) and credit / debit card receivables of the Company (present and future) along with deposits with bank under lien.
There are no defaults as on reporting date in repayment of principal and interest.
The Company has been sanctioned working capital limits from banks during the year which in certain cases include security of trade receivables and inventory of the Company. As per the respective loan agreements, details / statement pertaining to such current assets may have to be provided on occurrence of certain events, however there are no such trigger event during the year ended March 31, 2025 . Accordingly, the Company was not required to file any quarterly returns/statements in relation to such security with the respective banks.
As at March 31,2024
Working capital loans are repayable in 3 to 9 days from the reporting date. These loans are drawn under banking facilities that are revolving in nature i.e., can be redrawn upon repayment.
Rate of interest on working capital loans is 8.30% per annum.
Working capital loans are secured through first pari passu charge by way of hypothecation on current assets (excluding cash and cash equivalents, bank balances and investments of the Company) and credit / debit card receivables of the Company (present and future) along with deposits with bank under lien.
There are no defaults as on reporting date in repayment of principal and interest.
The Company has been sanctioned working capital limits from banks during the year which in certain cases include security of current assets of the Company. As per the respective loan agreements, details / statement pertaining to such current assets may have to be provided on occurrence of certain events, however there are no such trigger event during the year ended March 31, 2024. Accordingly, the Company was not required to file any quarterly returns/statements in relation to such security with the respective banks.
The Company's leased assets primarily consist of leases for aircraft and engines, equipment, leasehold land and buildings.
Interest expense on lease liabilities for the year is amounting to Rs. 41,173 (previous year Rs. 34,763). Refer to Note 27.
Certain lease liabilities amounting to Rs. 170,257 (previous year Rs. 58,997) are secured against the respective aircraft. Remaining lease liabilities are secured to the extent of letter of credits issued / deposits given to lessors.
The Company has recognised an expense of Rs. 30,103 (previous year Rs. 10,752) on account of short term leases which represents leased aircraft and engines. The portfolio of other short-term leases to which the Company is committed at the end of the reporting period is not materially different from the portfolio of other short term leases for which expense has been recognised during the year.
The Company has several lease contracts that include extension and termination options. The management has included termination options in determination of lease term for contracts having such option. Extension options have not been included in determination of lease term since the management is reasonably certain not to exercise these options. Potential cash flows in relation to such extension options cannot be ascertained since the cash outflow for the extended period will depend on the negotiations with the lessors in the event of exercising the extension options.
Under certain lease arrangements of aircraft and engines, the Company incurs variable payments towards maintenance of the aircraft which are disclosed under "Supplementary rentals and aircraft repair and maintenance (net)".
Future cash outflows for leases not yet commenced amounts to Rs. 61,251 (previous year Rs. 50,634).
The maturity analysis of lease liabilities are disclosed in Note 30. Further, information about the Company's exposure to market risks is disclosed in Note 30.
*Includes lease liabilities with related parties amounting to Rs. 139,322 (previous year Rs. 3,961). Refer to Note 36.
a. Provision for redelivery obligation: The Company has in its fleet, aircraft on lease. As contractually agreed under certain lease contracts, the aircraft have to be redelivered to the lessors at the end of the lease term under stipulated contractual return conditions. The redelivery obligations are determined by management based on historical trends and data, and are capitalised at the present value of expected outflow, where effect of the time value of money is material.
b. Provision for overhaul expenses for certain aircraft held under lease are recorded at discounted value, where effect of the time value of money is material.
c. Provision for engine maintenance which represents additional accrual, beyond supplementary rentals, for the estimated future costs of engine maintenance checks. These accruals are based on past trends for costs incurred on such events, future expected utilisation of engine, condition of the engine and expected maintenance interval and are recorded over the period of the next expected maintenance visit.
The measurement of the provision for redelivery and overhaul cost includes assumptions primarily relating to expected costs and discount rates commensurate with the expected obligation maturity schedules. An estimate is therefore made to ensure that the provision corresponds to the present value of the expected costs to be borne by the Company. Judgement is exercised by management given the long-term nature of assumptions that go into the determination of the provision. The assumption made in relation to the current year are consistent with those in the previous year. Expected timing of resulting outflow of economic benefit is financial year 2025-26 to 2034-35 (previous year 2024-25 to 2033-34) and the Company calculates the provision using Discounted Cash Flow (DCF) method.
Sensitivity analysis for key assumptions used:
If expected cost differ by 10% from management's estimate, while holding all other assumptions constant, the provision for maintenance, redelivery and overhaul cost may increase / decrease by Rs. 3,458 (previous year by Rs. 2,253).
If expected discount rate differ by 1%, while holding all other assumptions constant, the provision for maintenance, redelivery and overhaul cost may increase by Rs. 126 (previous year Rs. 251) or decrease by Rs. 119 (previous year by Rs. 212).
Other financial assets and financial liabilities
The carrying amounts of trade receivables, current financial assets (excluding security deposits), cash and cash equivalents, bank balances other than cash and cash equivalents, trade payables, capital creditors, short-term borrowings (including interest accrued but not due) and unclaimed dividend approximates the fair values, due to their short-term nature.
Foreign currency term loans have been contracted at floating rate of interest, which resets at short intervals. Accordingly, the carrying value of such borrowings (including interest accrued but not due) approximates fair value as on the reporting date.
Non-current financial assets (excluding security deposits) represents bank deposits (due for maturity after twelve months from the reporting date) and interest accrued but not due on financial instruments, the carrying value of which approximates the fair values as on the reporting date.
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of NAV for mutual funds.
- the fair value of the remaining financial instruments is determined using discounted cash flow method.
Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions on valuation and results are held between the Senior Management and valuation team at least once every quarter in line with the Company's quarterly reporting periods.
b. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
• Credit risk ;
• Liquidity risk ;
• Market Risk - Foreign currency ; and
• Market Risk - Interest rate
Risk management framework
The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The committee is responsible for reviewing the risk management policies and ensuring its effectiveness.
The Company's risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risks, limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Risk Management Committee oversees how management monitors compliance with Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risk faced by the Company.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invests in deposits with financial institutions with high credit ratings assigned by credit rating agencies. Investments primarily include investment in debt based mutual fund units and bonds with low risk. Other financial assets majorly includes security deposits which primarily represents deposits given as pre delivery payments to aircraft manufacturers. Such deposits will be returned to the Company on deliveries of the aircraft by the aircraft manufacturers as per the contract. The credit risk associated with such security deposits is relatively low.
Trade receivables are generally unsecured and are derived from revenue earned (including applicable taxes and airport levies) from customers primarily located in India and certain parts of Middle East and South Asia. Trade receivables also includes credit / debit card receivables of the Company which are realisable within a period of 1 to 7 working days.
The Company monitors the economic environment in which it operates to manage its credit risk. The Company manages its credit risk through various measures including establishing credit limits and continuously monitoring credit worthiness of customers to whom it extends credit in the normal course of business.
The Company sells majority of its air transportation services against advances made by agents / customers and through online channels.
The Company uses expected credit loss model to assess the impairment loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available internal credit risk factors such as the Company's historical experience for customers. Based on the business environment in which the Company operates, management considers that the trade receivables (other than receivables from government departments) are in default (credit impaired) if the payments are more than 90 days past due, however, the Company based upon past trends determine an impairment allowance for loss on receivables outstanding for more than 180 days past due.
Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated to individual customers. Trade receivables as at year end primarily includes Rs. 5,486 (previous year Rs. 4,909) relating to revenue generated from passenger services and Rs. 1,999 (previous year Rs. 1,596) relating to revenue generated from cargo services.
*The Company believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical payment behaviour.
#The Company based upon past trends determine an impairment allowance for loss on receivables outstanding for more than 180 days past due. Receivables more than 180 days past due primarily comprises receivables from government departments, which are fully realisable based on historical payment behaviour and hence, no loss allowance has been recognised, and from agents for which the impairment allowance has already been recognised on specific credit risk factor.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial assets. The Company's approach to manage liquidity is to have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, comprising of total cash, bank deposits and investments (including amounts under lien) of Rs. 479,500 as at March 31, 2025 (previous year Rs. 346,333), anticipated future internally generated funds from operations, and its fully available, revolving undrawn fund and non fund based credit facilities will enable it to meet its future known obligations in the ordinary course of business. As of March 31, 2025 , the Company had received revolving fund based credit line sanctions amounting to Rs. 56,697 (previous year Rs. 58,347), of which the Company has drawn Rs. 18,000 (previous year Rs. 18,000) and has undrawn revolving fund based credit facilities of Rs. 38,697 (previous year Rs. 40,347). Additionally, the Company also has undrawn non fund based credit facilities amounting to Rs. 64,895 (previous year Rs. 69,572). The Company does not believe a significant liquidity risk exist with regard to its current lease liabilities as the assets are sufficient to meet those obligations. In addition to this, the Company has unencumbered assets as well as access to adequate financing arrangements. Hence, in case a liquidity need were to arise, the Company believes it has sufficient means to meet its ongoing capital, operating, and other liquidity requirements. The Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirements as necessary.
The Company's liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.
(iii) Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risks namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
A. Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates primarily relates to certain bank deposits, foreign currency term loan and certain lease liabilities carrying floating rate of interest.
B. Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from the Company's operating, investing and financing activities.
Others include:
GBP: Great British Pound, ACD: Arab Cmirates Dirhams, NPR: Nepalese Rupees, OMR: Omani Rials, THB: Thai Baht, CHF: Swiss Franc, SGD: Singapore Dollar, CUR: Euro, QflR: Qatari Riyal, BDT: Bangladeshi Taka, LKR: Sri Lankan Rupee, HKD: Hong Kong Dollars, KWD: Kuwaiti Dinar, MYR: Malaysian Ringgit, SflR: Saudi Riyal, TRY: Turkish Lira, CNY: Chinese Yuan, MVR: Maldivian Rufiyaa, AUD: Australian Dollar, BHD: Bahraini Dinar, CAD: Canadian Dollar, IDR: Indonesian Rupiah, DKK: Danish Krone, GEL: Georgian Lari, KES: Kenyan Shilling, KZT: Kazakhstani Tenge, MUR: Mauritian Rupee, MVR: Maldivian Rufiyaa, SCR: Seychellois Rupee, SEK: Swedish Krona, UZS: Uzbekistani Som, AZN: Azerbaijani Manat
*The sensitivity analysis to foreign currency risk includes an exposure to foreign exchange fluctuations on long term foreign currency loans that have been capitalised in the cost of the related right of use assets. 1% depreciation / appreciation in Indian Rupees against USD, affects the adjustment to right of use assets by Rs. 27 (previous year Rs. 65). It is expected to impact the Standalone Statement of Profit and Loss over the remaining life of the right of use assets as an adjustment to depreciation charge.
31. Capital management
The primary objective of the management of the Company's capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. The Company is not subject to any externally imposed capital requirements.
The Board of directors regularly review the Company's capital structure in light of the economic conditions, business strategies and future commitments. The Board's overall strategy remains unchanged from previous year.
32. Contingent liabilities
The Company is a party to various taxation disputes and legal claims, which are not acknowledged as debts. Significant management judgement is required to ascertain that it is not probable that an outflow of resources embodying economic benefits will be required to settle the taxation disputes and legal claims.
(i) Income tax
The income tax authority has assessed the return of income of the Company up to Assessment Year ("AY") 2022-23 and has revised the taxable income for certain years on account of disallowance of certain expenses and in respect of the tax treatment of certain incentives received from the manufacturer in respect of acquisition of aircraft and engines. The Company has not yet received assessment order for subsequent years.
The Company has received favourable orders against such disallowances / additions from the Special Bench of Income Tax Appellate Tribunal ("ITAT") for AY 2012-13 and Divisional Bench of ITAT for certain years till AY 2015-16. However, the income tax authority's appeals against these orders are pending before the Hon'ble High Court of Delhi.
The Company believes, based on legal advice from counsels, that the view taken by ITAT Special Bench and Divisional Bench is sustainable in higher courts and accordingly, no provision is required to be recorded in the books of account.
The tax exposure (excluding interest and penalty) for matters disallowed by income tax authorities up to AY 2022-23 i.e. the last year assessed, amounts to Rs. 24,185 in case the incentives are held to be taxable. The above amount is net of Rs. 5,332, which represents minimum alternate tax recoverable written off in the earlier years. Further, the above tax exposure will also impact carried forward losses having a tax effect of Rs. 18,227.
(ii) The Company is in legal proceedings for various disputed legal matters related to Customs, Octroi, Service Tax, Integrated Goods and Services Tax ('IGST') and Value Added Tax ('VAT'). The amounts involved in these proceedings, not acknowledged as debt, are:
(1) Service Tax - Rs. 55 (previous year Rs. 55),
(2) Value Added Tax - Rs. 31 (previous year Rs. 31),
(3) Octroi - Rs. 74 (previous year Rs. 74) and
(4) IGST on re-imports* - Rs. 18,958 (previous year Rs. 15,668).
The Company believes, based on advice from counsels / experts, that the views taken by authorities are not sustainable and accordingly, no provision is required to be recorded in the books of account.
*During the current year, the Company has paid Integrated Goods and Services Tax ("IGST") amounting to Rs. 3,290 (previous year Rs. 3,030) under protest, on re-import of repaired aircraft, aircraft engines and certain aircraft parts, to Customs authorities and therefore as at March 31, 2025, cumulative amount paid under protest is Rs. 18,958 (previous year Rs. 15,668), against which appeals have been filed or to be filed before the appellate authorities. In past, the Company had received favourable orders on this matter from the Customs Cxcise and Service Tax Appellate Tribunal ("CCSTAT"), New Delhi. However, the Customs authority's appeals against these orders are pending before the Hon'ble Supreme Court of India and no stay on CCSTAT orders has been granted by the Supreme Court till date. Further, the Government vide Notification dated 19 July 2021 ("Amendment Notification") amended earlier Customs exemption Notification to reiterate their position that IGST is applicable on re-import of goods after repair. The Company had filed a Writ Petition before the Hon'ble High Court of Delhi challenging the constitutional validity of the Amendment Notification.
In the month of March 2025, Hon'ble High Court of Delhi has pronounced its order, holding that repair and re-import transaction is a supply of service and levy of IGST at the time of re-import of items repaired abroad is unconstitutional and invalid. Based on favourable order from Hon'ble High Court of Delhi and advice received from the legal counsels, the Company continues to believe that, IGST is still not payable on such re-import of repaired aircraft, aircraft engines and certain aircraft parts. Accordingly, the above amounts paid under protest till March 31,2025 have been shown as recoverable.
(iii) The Competition Commission of India ("CCI") passed an order dated November 17, 2015 against, inter alia, the Company, imposing a penalty of Rs. 637 on the Company on account of cartelization for determination of fuel surcharge included in the component of Cargo services. The Company filed an appeal against this order before the Competition Appellate Tribunal and it referred the matter back to the CCI for fresh adjudication. CCI passed a final order dated March 07, 2018 reducing the penalty amount on the Company to Rs. 95. The Company has filed an appeal before the National Company Law Appellate Tribunal ("NCLAT") against the order imposing penalty which is currently pending. The penalty imposed by CCI on the Company was stayed by NCLAT upon deposit of Rs. 9 (previous year Rs. 9) (10% of the penalty amount).
The Company based on legal advice from the external counsel, believes that the views taken by authorities are challengeable and accordingly, no provision is required to be recorded in the books of account at this stage.
(iv) There may be certain withholding tax obligation that may arise in the future in respect of past transactions. Basis the management's evaluation considering the facts, the management believes that further outflow is not probable.
(v) In February 2019, Hon'ble Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. There are interpretative challenges on the application of judgement retrospectively and as such the Company does not consider that there is any probable obligations for past periods. Accordingly, based on evaluation the Company has made a provision for provident fund contribution on prospective basis.
(vi) Legal cases
As per the notification dated January 1,2016, The Payment of Bonus (Amendment) Act, 2015 is applicable retrospectively w.e.f April 1,2014. In view of the partial stay granted by Karnataka and Kerala High Court, the impact of this amendment for the period April 1,2014 till March 31,2015 amounting to Rs. 19 has not been acknowledged as debt.
(vii) Other legal proceedings for which the Company is contingently liable
The Company is 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 the standalone financial statements and hence, no provision has been set-up against the same.
Notes:
Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements or decisions pending with various forums or authorities. Accordingly, the above mentioned contingent liabilities are disclosed at undiscounted amount.
34. employee benefits
The Company contributes to the following post-employment benefit plans.
Defined contribution plan
The Company pays provident fund contributions to the appropriate government authorities at rate specified as per regulations.
An amount of Rs. 1,599 (previous year Rs. 1,356) has been recognised as an expense in respect of the Company's contribution to Provident Fund and the same has been deposited with the relevant authorities. It has been shown under employee benefits expense in the Standalone Statement of Profit and Loss.
Defined benefit plan
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972.
The following table sets out the status of the defined benefit plan as required under Ind-AS 19 - employee Benefits:
The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined benefit plan recognised in the Standalone Balance Sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous years. Risk exposure:
The defined benefit plan is exposed to a number of risks, the most significant of which are detailed below:
Change in discount rates: A decrease in discount yield will increase plan liabilities.
Salary growth risk: An increase in the salary of the plan participants will increase the plan liabilities.
Mortality table: The gratuity plan obligations are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in plan liabilities.
35. Segment reporting
The company publishes these Financial Statements along with the Consolidated Financial Statements. In accordance with Ind AS 108, 'Operating Segments', the Company has disclosed the segment information only in the Consolidated Financial Statements.
The risk-free interest rates are determined based on current yield to maturity of Government Bonds with 5-10 years residual maturity. Expected volatility calculation is based on historical daily closing stock prices of competitors / Company using standard deviation of daily change in stock price. The minimum life of stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised. The expected life has been considered based on average sum of maximum life and minimum life and may not necessarily be indicative of exercise patterns that may occur. Dividend yield has been calculated taking into account expected rate of dividend on equity share price as on grant date basis past trend of three years. For the measurement of grant date fair value certain market conditions were considered in the method of valuation.
c. Effect of employee stock option scheme on the Standalone Statement of Profit and Loss for the year and on its financial position:
The employee stock option schemes expenses (included in Employee benefits expense) for the year ended March 31,2025 was Rs. 803 (previous year Rs. 433). This includes reversal of employee stock option scheme expense of Rs. Nil (previous year Rs. 37) towards forfeiture / expiry of employee stock options granted to certain employees. The balance in employee stock option outstanding account is Rs. 1,062 (previous year Rs. 609).
*The weighted average share price at the date of exercise of options exercised during the year was Rs. 4,320 (previous year Rs. 2,581). Further, during the current year, certain employees have exercised their right to exercise employee stock options.
40. During the year ended March 31, 2025, the Company had finalized an amendment to existing agreement with International Aero Engines, LLC ("IAE"), an affiliate of Pratt & Whitney pursuant to which IAE has provided the Company with a customized compensation plan to mitigate the impact of the ongoing situation of Aircraft on Ground due to unavailability of engines. Consequently, Revenue from operations for the year ended March 31, 2025 includes compensation accrued by the Company. Further, certain reimbursements have also been netted off against expenditure for the year ended March 31,2025.
41. During the quarter ended June 30, 2023, the management had reassessed the estimated useful economic life for 14 CEO aircraft from 20 years to 13-16 years and consequent residual value, basis several factors including technological advancements and the expected usage. Consequently, an additional depreciation expense of Rs. 1,392 million has been recorded during the year ended March 31, 2025. The estimated charge for such additional depreciation expense is expected to be Rs. 1,407 for the year ended March 31,2026.
42. Pursuant to amendment by Ministry of Corporate Affair (MCA) in the Companies (Accounts) Rules 2014, 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. Also, there has not been any instance where audit trail feature has been tampered with in respect of accounting software for the period audit trail was enabled. The accounting software (SAP S4 HANA) is hosted and managed by SAP (HEC services) with no direct access to database provided to the Company and sufficient controls are in place to manage the system. The audit trail feature for direct changes to database in SAP and another software used for managing cargo revenue has been enabled during the year. For a software used to manage payroll process, the audit trail feature at the database level was enabled throughout the year. Further, the Company has used accounting software for managing passenger revenue which is operated by third-party software service providers and has a feature of recording audit trail (edit log) facility. Presently, the logs are enabled at the application level and no direct access to database is provided to the Company. Availability of audit trail (edit logs) at database level is not covered in the 'Independent Service Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness' ('SOC Type 2 report').
43. The Company has established a comprehensive system of maintenance of information and documents that are required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by due date as required under the law. The management is of the opinion that its international transactions with the associated enterprises are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
44. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Excluding lease liabilities of Rs. 652,884 as at March 31,2025 and Rs. 493,884 as at March 31,2024, the Debt-€quity ratio would have been 0.19 for March 31,2025 and 0.98 for March 31,2024.
(b)This ratio is non-determinable for the year ended March 31,2024 due to negative average shareholder's equity on account of losses of previous years. The closing shareholder's equity is Rs. 19,319 as at March 31,2024.
^Inventories pertaining to stores, spares and loose tools have not been considered for the computation of the ratio as these are in the nature of consumables used for aircraft maintenance.
Excluding aircraft maintenance and supplementary rentals expense of Rs. 112,227 for the year ended March 31,2025 and Rs. 99,316 for the year ended March 31,2024 and liablities of Rs. 228,354 as at March 31,2025 and Rs. 160,681 as at March 31, 2024, the Trade payable turnover ratio would have been 11.43 for March 31,2025 and 10.98 for March 31,2024.
Excluding lease liabilities of Rs. 652,884 as at March 31,2025 and Rs. 493,884 as at March 31,2024 and interest expense on lease liabilities of Rs. 41,173 for the year ended March 31,2025 and Rs. 34,763 for the year ended March 31,2024, the ROC€ would have been 69.52% for March 31,2025 and 185.66% for March 31,2024.
Including finance income of Rs. 27,392 for the year ended March 31,2025 and Rs. 18,655 for the year ended March 31,2024, the ROC€ would have been 18.23% for March 31,2025 and 25.44% for March 31,2024.
The calculation for above ratios (including restatement of prior year ratios, wherever necessary) is in accordance with formula prescribed by Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.
47. The figure "0" represents the amounts less than Rs. 0.50 million.
|