Provisions are recognized when there is a presentobligation as a result of a past event, it is probable that anoutflow of resources embodying economic benefits willbe required to settle the obligation and there is a reliableestimate of the amount of the obligation. Provisionsare measured at the best estimate of the expenditurerequired to settle the present obligation at the BalanceSheet date.
If the effect of the time value of money is material,provisions are discounted using a current pre-tax ratethat reflects, when appropriate, the risks specific to theliability. When discounting is used, the increase in theprovision due to the passage of time is recognized as afinance cost.
De-commissioning costs (if any), are provided at thepresent value of expected costs to settle the obligationusing estimated cash flows and are recognized as partof the cost of the particular asset. The cash flows arediscounted at a current pre-tax rate that reflects the risksspecific to the de-commissioning liability. The unwindingof the discount is expensed as incurred and recognisedin the Statement of Profit and Loss as a finance cost. Theestimated future costs of de-commissioning are reviewedannually and adjusted as appropriate. Changes in theestimated future costs or in the discount rate applied areadded to or deducted from the cost of the asset.
Contingent liabilities are disclosed when there is apossible obligation arising from past events, the existenceof which will be confirmed only by the occurrence or non¬occurrence of one or more uncertain future events notwholly within the control of the Company or a presentobligation that arises from past events where it is eithernot probable that an outflow of resources will be requiredto settle or a reliable estimate of the amount cannot bemade. When there is an obligation in respect of which thelikelihood of outflow of resources is remote, no provisionor disclosure is made.
Contingent assets are neither recognised nor disclosedin the standalone financial statements.
Borrowing cost includes interest, amortization of ancillarycosts incurred in connection with the arrangement ofborrowings and exchange differences arising from foreigncurrency borrowings to the extent they are regarded asan adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition orconstruction of qualifying assets are capitalised as part ofthe cost of the assets upto the date the asset is ready forits intended use. All other borrowing costs are recognizedas an expense in the Statement of Profit and Loss in theyear in which they are incurred.
Cash and cash equivalents in the Balance Sheetcomprise cash at banks, cash on hand and short-termdeposits net of bank overdraft with an original maturity ofthree months or less, which are subject to an insignificantrisk of changes in value.
For the purposes of the cash flow statement, cash andcash equivalents include cash on hand, cash in banksand short-term deposits net of bank overdraft.
Government grants are recognized where there isreasonable assurance that the grant will be receivedand all attached conditions will be complied with. Whenthe grant relates to an expense item, it is recognizedas income on a systematic basis over the periods thatthe related costs, for which it is intended to compensateare expensed. When the grant relates to an asset, itis recognized as income in equal amounts over theexpected useful life of the related asset.
When the Company receives grants of non-monetaryassets, the asset and the grants are recorded at fair valueamounts and released to profit or loss over the expecteduseful life in a pattern of consumption of the benefit of theunderlying asset i.e. by equal annual instalments.
A financial instrument is any contract that gives rise toa financial asset of one entity and a financial liability orequity instrument of another entity.
(a) Financial assets
(i) Initial recognition and measurement
At initial recognition, financial asset ismeasured at its fair value plus, in the caseof a financial asset not at fair value through
profit or loss, transaction costs that are directlyattributable to the acquisition of the financialasset. Transaction costs of financial assetscarried at fair value through profit or loss areexpensed in profit or loss.
(ii) Subsequent measurement
For purposes of subsequent measurement,financial assets are classified in followingcategories:
a) at amortized cost; or
b) at fair value through other comprehensiveincome; or
c) at fair value through profit or loss.
The classification depends on the entity'sbusiness model for managing the financialassets and the contractual terms of the cashflows.
Amortized cost: Assets that are held forcollection of contractual cash flows wherethose cash flows represent solely paymentsof principal and interest are measured atamortized cost. Interest income from thesefinancial assets is included in finance incomeusing the Effective Interest Rate method (EIR).
Fair Value Through Other ComprehensiveIncome (FVOCI): Assets that are held forcollection of contractual cash flows andfor selling the financial assets, where theassets' cash flows represent solely paymentsof principal and interest, are measured atFair Value Through Other ComprehensiveIncome (FVOCI). Movements in the carryingamount are taken through OCI, except forthe recognition of impairment gains or losses,interest revenue and foreign exchange gainsand losses which are recognised in Statementof Profit and Loss. When the financial assetis de-recognized, the cumulative gain or losspreviously recognized in OCI is re-classifiedfrom equity to the Statement of Profit andLoss and recognized in other gains / (losses).Interest income from these financial assets isincluded in other income using the effectiveinterest rate method.
Fair Value Through Profit or Loss (FVTPL):Assets that do not meet the criteria foramortized cost or FVOCI are measured at fairvalue through profit or loss. Interest incomefrom these financial assets is included in otherincome.
In accordance with Ind AS 109 - "FinancialInstruments", the Company applies ExpectedCredit Loss (ECL) model for measurementand recognition of impairment loss on financialassets that are measured at amortized costand FVOCI.
For recognition of impairment loss on financialassets and risk exposure, the Companydetermines that whether there has been asignificant increase in the credit risk since initialrecognition. If credit risk has not increasedsignificantly, twelve months ECL is used toprovide for impairment loss. However, if creditrisk has increased significantly, lifetime ECL isused. If in subsequent years, credit quality ofthe instrument improves such that there is nolonger a significant increase in credit risk sinceinitial recognition, then the entity reverts torecognizing impairment loss allowance basedon twelve months ECL.
Life time ECLs are the expected credit lossesresulting from all possible default events overthe expected life of a financial instrument. Thetwelve months ECL is a portion of the lifetimeECL which results from default events that arepossible within twelve months after the yearend.
ECL is the difference between all contractualcash flows that are due to the Company inaccordance with the contract and all the cashflows that the entity expects to receive (i.e. allshortfalls), discounted at the original EIR. Whenestimating the cash flows, an entity is requiredto consider all contractual terms of the financialinstrument (including pre-payment, extensionetc.) over the expected life of the financialinstrument. However, in rare cases when theexpected life of the financial instrument cannotbe estimated reliably, then the entity is requiredto use the remaining contractual term of thefinancial instrument.
In general, it is presumed that credit risk hassignificantly increased since initial recognitionif the payment is more than 30 days past due.
An impairment analysis is performed at eachreporting date on an individual basis for majorclients. It is based on its historically observeddefault rates over the expected life of thetrade receivables and is adjusted for forward-
looking estimates. At every reporting date, thehistorical observed default rates are updatedand changes in the forward-looking estimatesare analysed. On that basis, the Companyestimates the provision at the reporting date.
(iv) De-recognition of financial assets
A financial asset is de-recognised only when:
a) the rights to receive cash flows from thefinancial asset is transferred; or
b) retains the contractual rights to receivethe cash flows of the financial asset, butassumes a contractual obligation to paythe cash flows to one or more recipients.
Where the financial asset is transferred then inthat case financial asset is de-recognised only ifsubstantially all risks and rewards of ownershipof the financial asset is transferred. Wherethe entity has not transferred substantially allrisks and rewards of ownership of the financialasset, the financial asset is not de-recognised.
(b) Financial liabilities
Financial liabilities are classified, at initialrecognition, as financial liabilities at fair valuethrough profit or loss and at amortized cost, asappropriate.
All financial liabilities are recognised initially atfair value and, in the case of borrowings andpayables, net of directly attributable transactioncosts.
The measurement of financial liabilitiesdepends on their classification as describedbelow:
Financial liabilities at fair value through profit orloss
Financial liabilities at fair value through profit orloss include financial liabilities held for tradingand financial liabilities designated upon initialrecognition as at fair value through profit orloss.
Loans and borrowings
After initial recognition, interest-bearing loansand borrowings are subsequently measured atamortized cost using the EIR method. Gainsand losses are recognized in the Statement
of Profit and Loss when the liabilities arede-recognized as well as through the EIRamortization process. Amortized cost iscalculated by taking into account any discountor premium on acquisition and fees or coststhat are an integral part of the EIR. The EIRamortization is included as finance costs in theStatement of Profit and Loss.
(iii) De-recognition
A financial liability is de-recognized when theobligation under the liability is discharged orcancelled or expires. When an existing financialliability is replaced by another from the samelender on substantially different terms or theterms of an existing liability are substantiallymodified, such an exchange or modificationis treated as the de-recognition of the originalliability and the recognition of a new liability.The difference in the respective carryingamounts is recognized in the Statement ofProfit and Loss as finance costs.
An embedded derivative is a component of a hybrid(combined) instrument that also includes a non¬derivative host contract - with the effect that someof the cash flows of the combined instrument vary ina way similar to a standalone derivative. Derivativesembedded in all other host contract are separatedif the economic characteristics and risks of theembedded derivative are not closely related to theeconomic characteristics and risks of the host andare measured at fair value through profit or loss.Embedded derivatives closely related to the hostcontracts are not separated.
Re-assessment only occurs if there is either achange in the terms of the contract that significantlymodifies the cash flows that would otherwise berequired or a re-classification of a financial asset outof the fair value through profit or loss.
Financial assets and liabilities are offset and the netamount is reported in the Balance Sheet where thereis a legally enforceable right to offset the recognisedamounts and there is an intention to settle on a netbasis or realize the asset and settle the liabilitysimultaneously. The legally enforceable right mustnot be contingent on future events and must beenforceable in the normal course of business and inthe event of default, insolvency or bankruptcy of theCompany or the counterparty.
Liabilities for wages and salaries, including non¬monetary benefits that are expected to be settledwholly within twelve months after the end of the yearin which the employees render the related serviceare recognized in respect of employees' servicesupto the end of the year and are measured at theamounts expected to be paid when the liabilitiesare settled. The liabilities are presented as currentemployee benefit obligations in the Balance Sheet.
(b) Other long-term employee benefit obligations
(i) Defined contribution plan
The Company makes defined contributionto provident fund and superannuation fund,which are recognized as an expense in theStatement of Profit and Loss on accrual basis.The Company has no further obligations underthese plans beyond its monthly contributions.
(ii) Defined benefit plans
The Company's liabilities under Paymentof Gratuity Act and long-term compensatedabsences are determined on the basis ofactuarial valuation made at the end of eachfinancial year using the projected unit creditmethod, except for short-term compensatedabsences, which are provided on actual basis.Actuarial losses / gains are recognised in theother comprehensive income in the year inwhich they arise. Obligations are measuredat the present value of estimated future cashflows using a discount rate that is determinedby reference to market yields at the BalanceSheet date on government bonds where thecurrency and terms of the government bondsare consistent with the currency and estimatedterms of the defined benefit obligation.
(iii) Leave encashment - Encashable
Accumulated compensated absences, whichare expected to be availed or encashed withintwelve months from the end of the year aretreated as short-term employee benefits. Theobligation towards the same is measured at theexpected cost of accumulating compensatedabsences as the additional amount expectedto be paid as a result of the unused entitlementas at the year end.
Accumulated compensated absences, whichare expected to be availed or encashedbeyond twelve months from the end of the year
end are treated as other long-term employeebenefits. The Company's liability is actuariallydetermined (using the Projected Unit Creditmethod) at the end of each year. Actuariallosses / gains are recognized in the Statementof Profit and Loss in the year in which theyarise.
Basic earnings per share is calculated by dividingthe net profit or loss for the year attributable to equityshareholders of parent company by the weightedaverage number of equity shares outstanding during theyear. Earnings considered in ascertaining the Company'searnings per share is the net profit or loss for the yearattributable to equity shareholders of parent companyafter deducting preference dividends and any attributabletax thereto for the year (if any). The weighted averagenumber of equity shares outstanding during the year andfor all the years presented is adjusted for events, thathave changed the number of equity shares outstanding,without a corresponding change in resources.
For the purpose of calculating diluted earnings pershare, the net profit or loss for the year attributable toequity shareholders of parent company and the weightedaverage number of shares outstanding during the yearis adjusted for the effects of all dilutive potential equityshares.
Operating segments are reported in a manner consistentwith the internal reporting provided to the chief operatingdecision maker. The Company's operating businessesare organised and managed separately according tothe nature of services provided, with each segmentrepresenting a strategic business unit that offers differentservices and serves different markets. Thus, as definedin Ind AS 108 - "Operating Segments", the businesssegments are 'Air Charter'. The Company does not haveany geographical segment.
When the entity prepares separate financial statements,it accounts for investments in subsidiaries, joint venturesand associates either:
(a) at cost; or
(b) in accordance with Ind AS 109.
The Company accounts for its investment in subsidiary atcost.
Investments acquired from Taneja Aerospace andAviation Limited pursuant to Demerger of its “Air CharterBusiness' are recorded at its book value i.e cost as on
All amounts disclosed in standalone financial statementsand notes have been rounded off to the nearest lakhsas per requirement of Schedule III of the Act, unlessotherwise stated.
The preparation of standalone financial statementsrequires Management to make judgments, estimates andassumptions that affect the reported amounts of revenues,expenses, assets and liabilities, the accompanyingdisclosures and the disclosure of contingent liabilities.Uncertainty about these assumptions and estimatescould result in outcomes that require a materialadjustment to the carrying amount of assets or liabilitiesaffected in future years.
The key assumptions concerning the future and other keysources of estimation uncertainty at the year end date, thathave a significant risk of causing a material adjustmentto the carrying amounts of assets and liabilities within thenext financial year, are described below. The Companybased its assumptions and estimates on parametersavailable when the financial statements were prepared.Existing circumstances and assumptions about futuredevelopments, however, may change due to marketchanges or circumstances arising that are beyond thecontrol of the Company. Such changes are reflected inthe assumptions when they occur.
(a) Defined benefits and other long-term benefits
The cost of the defined benefit plans such asgratuity and leave encashment are determinedusing actuarial valuations. An actuarial valuationinvolves making various assumptions that maydiffer from actual developments in the future. Theseinclude the determination of the discount rate,future salary increases and mortality rates. Due tothe complexities involved in the valuation and itslong-term nature, a defined benefit obligation ishighly sensitive to changes in these assumptions.All assumptions are reviewed at each year end.
The principal assumptions are the discount andsalary growth rate. The discount rate is based uponthe market yields available on government bonds atthe accounting date with a term that matches thatof liabilities. Salary increase rate takes into accountof inflation, seniority, promotion and other relevantfactors on long-term basis.
Ministry of Corporate Affairs (“MCA”) notifies newstandard or amendments to the existing standardsunder Companies (Indian Accounting Standards) Rulesas issued from time to time. On March 31, 2023, MCAamended the Companies (Indian Accounting Standards)Amendment Rules, 2023
(a) Ind AS 1 - Presentation of Financials Statements
This amendment requires the entities todisclose their material accounting policies ratherthan their significant accounting policies. Theeffective date for adoption of this amendment isannual periods beginning on or after April 1, 2023.The Company has evaluated the amendment andthe impact of the amendment is insignificant in thestandalone financial statements.
(b) Ind AS 8 - Accounting Policies, Changes inAccounting Estimates and Errors
This amendment has introduced a definition of'accounting estimates' and included amendmentsto Ind AS 8 to help entities distinguish changes inaccounting policies from changes in accountingestimates. The effective date for adoption of thisamendment is annual periods beginning on or afterApril 1, 2023. The Company has evaluated theamendment and there is no impact on its standalonefinancial statements.
This amendment has narrowed the scope of theinitial recognition exemption so that it does notapply to transactions that give rise to equal andoffsetting temporary differences. The effective datefor adoption of this amendment is annual periodsbeginning on or after April 1, 2023. The Companyhas evaluated the amendment and there is noimpact on its standalone financial statements