Jetwings intl & Domestic

Contents 

Jet Airways (India) Limited - 16th Annual Report 2007-08 

16th Annual Report 2007-08 

Corporate Information …………………………………………………………… 2 

Notice of the 16th Annual General Meeting ……………………………………… 4 

Directors‘ Report ………………………………………………………………… 10 

Management Discussion and Analysis …………………………………………… 19 

Corporate Governance Report and Shareholder Information …………………… 28 

Auditors‘ Certificate on Corporate Governance Report ………………………… 44 

Auditors‘ Report ………………………………………………………………… 45 

Balance Sheet …………………………………………………………………… 50 

Profit and Loss Account ………………………………………………………… 51 

Cash Flow Statement …………………………………………………………… 52 

Notes and Schedules forming part of Balance Sheet and Profit and Loss Account 54 

Balance Sheet Abstract and Company‘s General Business Profile ……………… 86 

Statement Pursuant to Section 212(1) of the Companies Act, 1956 relating to 

Subsidiary Company ……………………………………………………………… 88 

Audited Consolidated Statement of Accounts …………………………………… 89 

Directors‘ Report and Audited Statement of Accounts of Subsidiary Company …121 

1

Board of Directors 

(as on 1st September,2008) 

Mr. Naresh Goyal Chairman 

Mr. Ali Ghandour 

Mr. Victoriano P. Dungca 

Mr. Charles A. Adams 

Mr. Javed Akhtar 

Mr. I. M. Kadri 

Mr. P. R. S. Oberoi 

Mr. Aman Mehta 

Mr. S. G. Pitroda 

Mr. Yash Raj Chopra 

Mr. Shah Rukh Khan 

Mr. Pierre Jean Jeanniot 

Mr. Saroj K. Datta Executive Director 


Corporate Information 

Senior Management 

Mr. Wolfgang Prock-Schauer Chief Executive Officer 

Mr. Saroj K. Datta Executive Director 

Mr. Abdulrahman Albusaidy Group Executive Officer 

Capt. Hameed Ali Chief Operating Officer 

Mr. Sudheer Raghavan Chief Commercial Officer 

Mrs. Anita Goyal Executive Vice President - Network Plannning & 

Revenue Management 

Company Secretary 

Mr. Shirish Limaye 

Statutory Auditors 

Deloitte Haskins & Sells Chaturvedi & Shah 

Chartered Accountants Chartered Accountants 

12, Dr. Annie Besant Road 714-715, Tulsiani Chambers 

Opp. Shiv Sagar Estate Nariman Point 

Worli, Mumbai - 400 018 Mumbai – 400 021 

Legal Advisors 

Gagrats 

Nirmal, 12th Floor 

Nariman Point 

Mumbai 400 021 

2


Registered Office Registrar & Share Transfer Agents 

S. M. Centre Karvy Computershare Private Limited 

Andheri-Kurla Road Plot No. 17-24 

Andheri (East) Vitthalrao Nagar, Madhapur 

Mumbai – 400 059 Hyderabad 500 081 

Bankers to the Company 

ABN AMRO BANK 

AXIS Bank Ltd. 

(formerly known as UTI Bank Ltd.) 

Abhu Dhabi Commercial Bank 

Bank Of America 

Banque Nationale de Paris 

Barclays Bank 

Calyon Bank 

Citibank N.A. 

Corporation Bank 

DBS Bank Ltd 

Dena Bank 

Deutsche Bank AG 

HDFC Bank Ltd. 

ICICI Bank Ltd 

Industrial Development Bank Of India Ltd. 

ING Belgium SA 

ING Vysya Bank Ltd. 

JP Morgan Chase, N.A. 

National Bank Of Kuwait 

Standered Chartered Bank 

State Bank Of India 

The Hong Kong & Shanghai Banking 

Corporation Ltd 

YES Bank 

3


Notice 

Notice is hereby given that the Sixteenth Annual General Meeting of the Members of Jet 

Airways (India) Limited will be held on Monday, 29th September, 2008 at 3:30 p.m. at Nehru 

Centre Auditorium, Discovery of India Building, Dr. Annie Besant Road, Worli, Mumbai 400 018 to 

transact the following business: 

ORDINARY BUSINESS 

1. To receive, consider and adopt the audited Balance Sheet as at 31st March, 2008 and the 

Profit and Loss Account for the year ended on that date and the Reports of the Directors and 

Auditors thereon. 

2. To appoint a Director in place of Mr. S. G. Pitroda, who retires by rotation and being eligible, 

offers himself for re-appointment. 

3. To appoint a Director in place of Mr. Javed Akhtar, who retires by rotation and being eligible, 


4. To appoint a Director in place of Mr. Saroj K. Datta, who retires by rotation and being eligible, 


5. To appoint a Director in place of Mr. Ali Ghandour, who retires by rotation and being eligible, 


6. To appoint Auditors to hold office from the conclusion of the 16th Annual General Meeting 

until the conclusion of the 17th Annual General Meeting, and to fix their remuneration. 

SPECIAL BUSINESS 

7. Re-appointment and remuneration of Executive Director 

To consider and, if thought fit, to pass, with or without modification(s), if any, the following 

resolution as a Special Resolution: 

“RESOLVED THAT pursuant to the provisions of Sections 198, 269 read with Schedule XIII, 

Sections 309, 310, 311 and other applicable provisions, if any, of the Companies Act, 1956, 

approval of the Members of the Company be and is hereby accorded to the re-appointment 

of Mr. Saroj K. Datta as Executive Director of the Company, for the period of three years, with 

effect from 30th September, 2008, upon the terms and conditions as set out in the Explanatory 

Statement annexed hereto and as may be approved by the Central Goverment, with authority 

to the Board of Directors to alter and vary the terms and conditions of the said re-appointment 

in such manner as may be agreed to between the Board of Directors and Mr. Saroj K. Datta.” 

8. Payment of Commission to Non-executive Directors for the Financial Year 2008-09 

To consider and, if thought fit, to pass, with or without modification(s), if any, the following 

resolution as a Special Resolution: 

“RESOLVED THAT pursuant to the provisions of Sections 198, 309, 310 and other applicable 

provisions, if any, of the Companies Act, 1956 and subject to such statutory approvals as may 

be necessary, the Non-executive Directors of the Company be paid, as Commission for the 

4


Financial Year 2008-09 a sum not exceeding 1% of the net profits of the Company calculated 

in accordance with provisions of Sections 198, 349, 350 and other provisions , if any, of the 

Companies Act, 1956, subject to a ceiling of Rs. 600,000/- (Rupees Six Hundred Thousand 

only) per Non-executive Director, in addition to the sitting fees for attending the Meetings of 

the Board of Directors and any Committee thereof.” 

Dated: 1st September, 2008 

Registered Office: 

S. M. Centre, 

Andheri-Kurla Road, 

Andheri (East), 


Notes 

By Order of the Board of Directors 

SHIRISH LIMAYE 


1. Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 in respect of 

Item Nos. 7 and 8 of the Notice is annexed hereto. The relevant details of persons seeking 

re-appointment as Directors under Item Nos. 2 to 5 above, as required by Clause 49 of Listing 

Agreement entered into with the Stock Exchanges, are also annexed. 

2. A Member entitled to attend and vote, is entitled to appoint a Proxy to attend and 

vote, instead of himself and the Proxy need not be a Member of the Company. Proxies, 

in order to be effective, must be duly filled, stamped, signed and deposited at the Registered 

Office of the Company not later than 48 hours before the commencement of the Meeting. 

Proxies submitted on behalf of limited companies, societies, partnership firms, etc. must 

be supported by appropriate resolution / authority as applicable, issued on behalf of the 

appointing organisation(s). 

3. The Register of Members and Share Transfer Books of the Company will remain closed from 

17th September, 2008 to 29th September, 2008, both days inclusive. 

4. Members holding Equity Shares in physical form are requested to advise any change of address 

immediately to the Company’s Registrar and Share Transfer Agent, Karvy Computershare Private 

Limited [UNIT: Jet Airways (India) Limited], Plot No. 17 - 24, Vittal Rao Nagar, Madhapur, 

Hyderabad 500 081. Members holding Equity Shares in dematerialised form must send advice 

about change in address / any other details to their respective Depository Participants and not 

to the Company or its Registrar and Share Transfer Agent. 

5


5. All correspondence regarding Equity Shares of the Company should be addressed to the 

Company’s Registrar and Share Transfer Agent, Karvy Computershare Private Limited at the 

address mentioned under paragraph 4. 

6. As per the provisions of the Companies Act, 1956, nomination facility is available to the 

Members, in respect of the Equity Shares held by them. Nomination forms can be obtained from 

the Company’s Registrar and Share Transfer Agent, Karvy Computershare Private Limited. 

7. As a measure of austerity, copies of the Annual Report will not be distributed at the Annual 

General Meeting. Members are requested to bring their copies of the Annual Report to the 

Meeting. 

8. Members who wish to obtain information concerning the Accounts or Operations of the 

Company may send their queries at least 7 days before the Annual General Meeting, to the 

Company Secretary, at the Registered Office of the Company. 

9. Copies of all documents referred to in the Notice and Explanatory Statement annexed 

thereto are available for inspection at the Registered Office of the Company between 

11:00 a.m. to 1:00 p.m. on all working days till the date of the Annual General Meeting. 

ExPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 

1956 

The following Explanatory Statements set out all material facts relating to Item Nos. 7 and 8 

of the accompanying Notice: 

Item No. 7 

Mr. Saroj K. Datta has been a Director of the Company since March, 1993 and has been re-appointed 

as Executive Director from time to time. His present term as Executive Director of the Company 

expires on the conclusion of the 16th Annual General Meeting. 

Subject to the approval of the Members at the 16th Annual General Meeting, and any other 

statutory approvals, that may be required, the Board of Directors approved the re-appointment of 

Mr. Saroj K. Datta as Executive Director of the Company for the period of three years with effect 

from 30th September, 2008. 

Mr. Saroj K. Datta holds a Masters degree in Economics from Delhi University and has over 40 

years of experience in Civil Aviation in India and abroad. Mr. Saroj K. Datta has been involved 

with the Company since its inception. Keeping in view the qualification and experience of 

Mr. Saroj K. Datta, the Board of Directors is of the view that his re-appointment as Executive 

Director will be beneficial to the Company. 

6


The remuneration payable to Mr. Saroj K. Datta on his re-appointment, as approved by the 

Remuneration and Compensation Committee of the Board of Directors and subject to the approval 

of the Central Government, is as follows: 

(i) Salary and Allowances: 

The proposed Salary and Allowances is Rs. 1,100,000 /- (Rupees One Million One Hundred 

Thousand only) per month with authority to the Board of Directors based on the recommendation 

of the Remuneration and Compensation Committee to give annual increment not exceeding 

20% of the immediately previously drawn Salary and Allowances. 

(ii) Perquisites: 

In addition to the Salary and Allowances aforesaid, Mr. Saroj K. Datta shall be entitled to 

Perquisites (at actual cost to the Company) such as free furnished accommodation, use of 

Company’s car, telephone at residence, medical reimbursement and medical coverage, ex 

gratia, leave and travel benefits, provident fund, gratuity and all other benefits, in accordance 

with the Rules of the Company. 

(iii) Minimum Remuneration: 

Notwithstanding anything to the contrary herein contained, if in any or all of the financial 

years during the tenure of the Executive Director, the Company has no profits or its profits 

are inadequate, the Company will pay minimum remuneration by way of salary, allowances and 

perquisites as specified above in paragraph (i) and (ii). 

In compliance with the provisions of Section 309 of the Companies Act, 1956, the terms and 

conditions of re-appointment of Mr. Saroj K. Datta, as specified above, are now being placed 

before the Members for approval. 

This statement may be treated as an abstract of the terms and conditions governing the 

re-appointment of and payment of remuneration to the Executive Director pursuant to Section 

302 of the Companies Act, 1956. 

No Director, except Mr. Saroj K. Datta, is, in any way, concerned or interested in the Resolution. 

The Board of Directors recommends the Resolution for the approval of the Members. 

Item No. 8 

In order to remunerate the Non-executive Directors of the Company for the responsibilities 

entrusted upon them under law and commensurate with the time devoted and the contribution 

made by them, the Board of Directors of the Company, at their Meeting held on 29th July, 2008 

has approved, subject to such statutory approvals as may be necessary, payment as commission, 

to be paid to the Non-executive Directors of the Company, for the Financial Year 2008-09, a sum 

not exceeding 1% of the net profits of the Company, calculated in accordance with provisions 

7


of Section 198, 349 and 350 of the Companies Act, 1956, subject to a ceiling of Rs. 600,000/- 

(Rupees Six Hundred Thousand only) per Non-executive Director, in addition to the sitting fees for 

attending the Meetings of the Board of Directors and any Committee thereof. 

Section 309(4) of the Companies Act, 1956 also requires a Special Resolution to be passed by the 

Members of the Company in General Meeting for payment of remuneration by way of commission 

to Non-executive Directors of the Company. 

All Non-executive Directors of the Company are concerned or interested in the Resolution to the 

extent of the remuneration that may be received by them and their respective shareholding, if 

any. 

The Board of Directors recommends the Resolution for the approval of the Members. 

Dated: 1st September, 2008 

Registered Office: 

S. M. Centre, 

Andheri-Kurla Road, 

Andheri (East), 


By Order of the Board of Directors 

SHIRISH LIMAYE 


8


Annexure to Notice 

Details of the Directors seeking re-appointment at the 16th Annual General Meeting 

Particulars Mr. S. G. Pitroda Mr. Javed Akhtar Mr. Saroj K. Datta Mr. Ali Ghandour 

Date of Birth 4th May, 1942 17th January, 1945 3rd May, 1936 28th May, 1931 

Date of 

Appointment 

24th December, 2004 1st March, 1993 1st March, 1993 19th February, 1998 

Qualifications Masters Degree in 

Physics from India 

and Masters Degree in 

Electrical Engineering 

from the Illinois Institute 

of Technology, Chicago, 

U.S.A. 

Expertise 

in specific 

functional area 

D irectorships 

held in other 

Public Companies 

(excluding foreign 

and private 

companies) 

Memberships/ 

Chairmanships 

of Committees in 

Public Companies 

Shareholding, 

if any, in the 

Company 

Mr. Pitroda worked with 

Rockwell International 

as Vice President of 

its telecom business 

worldwide. In 1984, Mr. 

Pitroda returned to India 

and founded the Centre 

for Development of 

Telematics. In 1987 he 

became an advisor to the 

Prime Minister of India, 

with the rank of a Minister, 

on national technology 

missions in various fields. 

Mr. Pitroda was the 

founding Chairman of 

the Telecom Commission 

in India. Mr. Pitroda has 

been appointed a member 

of the National Advisory 

Council, in the Prime 

Minister’s Office in India 

under the Chairmanship 

of Ms. Sonia Gandhi. 

Currently, Mr. Pitroda is 

the Chairman of WorldTel 

Limited. Mr. Pitroda 

holds over 50 worldwide 

patents. 

Bachelor of Arts Master degree in 

Economics from Delhi 

University 

Mr. Akhtar is a wellknown 

poet, lyricist, 

screenplay and scriptwriter 

and is a famous media 

personality. Mr. Akhtar 

has won fourteen times 

Flimfare Award, five times 

National Award for the 

Best Lyricist / Best Script. 

He has also won Padma 

Bhushan Award in 2007, 

Padmashri Award in 1999 

by the Government of 

India, besides many other 

awards. 

Mr. Datta has over 40 

years of experience in 

civil aviation in India and 

abroad. He joined Air 

India in 1962 and rose 

to the position of Deputy 

Director, Planning and 

International Relations in 

1977. In 1987, he left Air 

India to join in a senior 

position in Kuwait Airways. 

He has been involved with 

the Company since its 

inception and is currently 

the Executive Director of 

the Company 

None Jet Lite (India) Limited Jet Lite (India) Limited None 

None Audit Committee – Jet 

Lite (India) Limited 

None None 

Nil 5,990 553 Nil 

Aeronautical Engineer 

from New York University, 

U. S. A. 

Mr. Ghandour has over 

50 years of experience in 

the civil aviation industry. 

He was an advisor of 

the late King Hussein of 

Jordan and was earlier 

the Chairman of the Royal 

Jordanian Airlines. He 

has also been associated 

with the development of 

a number of airlines in 

Middle East. 

9

To the Members, 


1. Your Directors have pleasure in presenting their Sixteenth Annual Report together with the 

Audited Statement of Accounts for the Financial Year ended 31st March, 2008. 

HIGHLIGHTS 

2. The Financial and Operational highlights for the year under review compared to the previous 

financial year are given below: 

Financial Highlights 

Particulars 

Directors‘ Report 

Year ended 

31st March, 

2008 

Rs. in lac 

Year ended 

31st March, 

2007 

Rs. in lac 

GROSS REVENUE 948,151 740,131 

Profit before Interest, Depreciation and Tax 85,796 70,561 

Interest and Finance Charges 49,275 24,015 

Profit before Depreciation and Tax 36,521 46,546 

Depreciation / Amortisation 77,780 41,410 

(Loss) / Profit before Taxation and Adjustments (41,259) 5,136 

Provision for Tax 1010 973 

Deferred Tax (17,083) 1,369 

(Loss) / Profit after Taxation (25,306) 2,794 

Profit brought forward 46,197 49,743 

Profit available for Appropriation 20,891 52,537 

APPROPRIATIONS 

Transfer to General Reserve - 280 

Proposed Dividend - 5,180 

Income Tax on Proposed Dividend - 880 

Transfer to Balance Sheet 20,891 46,197 

Note: 1 lac = 100,000 

10

Operational Highlights 

DIVIDEND 


Operating Parameters Year ended 

31st March, 

2008 

Rs. in lac 

3. The Board of Directors has not recommended any dividend on the Equity Shares of the Company 

in view of the performance during the Financial Year ended 31st March, 2008 (Previous year: 

Rs. 6 per Equity Share). 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

4. The Management Discussion and Analysis Report for the year under review, as required by 

Clause 49 of the Listing Agreement with Stock Exchanges in India, is presented in a separate 

section forming part of the Annual Report. 

SUBSIDIARIES 

Year ended 

31st March, 

2007 

Rs. in lac 

Number of Departures 126,676 119,369 

Available Seat Kilometers (ASKMs) Million 24,447 17,698 

Revenue Passenger Kilometers (RPKMs) Million 16,914 12,307 

Passenger Load Factor % 69.2% 69.5% 

Revenue Passenger (Numbers) 11,428,910 10,726,874 

Average fleet size during period 66.3 56.1 

Average Head Count 

Gross 11,750 9,614 

Net 11,475 8,351 

5. During the year, Jet Lite (India) Limited (formerly known as Sahara Airlines Limited) became a 

wholly owned Subsidiary of your Company. 

6. A statement pursuant to Section 212 of the Companies Act, 1956, relating to the said Subsidiary 

Company has been attached in the Annual Report. 

7. Documents in respect of the said Subsidiary Company as set out in sub-section (1) of 

Section 212 of the Companies Act, 1956, has been attached in the Annual Report. 

11

CONSOLIDATED FINANCIAL STATEMENTS 


8. In accordance with the Accounting Standard AS-21, the audited Consolidated Financial 

Statements are provided in the Annual Report. These Consolidated Financial Statements have 

consolidated the financial results of the Subsidiary Company. 

REVIEW OF OPERATIONS 

9. The growth in the Company’s revenue was primarily due to the increased level of its 

international operations. Revenues from international operations during the year were 

Rs. 304,756 lac (Previous Year Rs. 135,701 lac) i.e. a growth of 124.5%, and accounted for 

34.5% of total revenues during the year compared to 19.23% in the previous year. 

10. The Company commenced operations on the following routes during the year 

International 

Routes Commenced on 

Mumbai – Newark – Mumbai via Brussels 5th August, 2007 

Delhi – Toronto – Delhi via Brussels (Changed to Delhi-New York 

(JFK) – Delhi – w.e.f. 28th October, 2007) 

5th September, 2007 

Chennai – Toronto – Chennai via Brussels 28th October, 2007 

Delhi - Kathmandu - Delhi (2nd frequency) 10th November, 2007 

Delhi - Dhaka – Delhi 16th December, 2007 

Kolkata – Dhaka – Kolkata 16th December, 2007 

Delhi – Kuwait – Delhi 5th January, 2008 

Kochi - Kuwait – Kochi 5th January, 2008 

Kochi - Bahrain – Kochi 5th January, 2008 

Mumbai – Bahrain – Mumbai 5th January, 2008 

Kochi - Muscat – Kochi 23rd January, 2008 

Kozhikode – Muscat – Kozhikode 23rd January, 2008 

Mumbai – Doha – Mumbai 23rd January, 2008 

Kozhikode – Doha – Kozhikode 23rd January, 2008 

Domestic 


Mumbai - Chandigarh – Mumbai 17th October, 2007 

Kolkata - Ahmedabad - Kolkata (Discontinued in June 2008) 17th December, 2007 

Ahmedabad-Indore-Bhopal-Raipur-Hyderabad and return 30th March, 2008 

12


11. The response to these new routes has been encouraging and passenger feedback with regard to 

the Company’s services and product offerings on these routes has been extremely positive. The 

Company competes with established, larger international carriers on nearly all the international 

routes it flies and has established significant market shares in most international route it 

operates. 

12. The Company maintained its leadership in the domestic market through its superior network 

and high standards of service. The Company is synergizing its network and a number of areas of 

operations with those of its Subsidiary Company, Jet Lite (India) Limited, and this is expected 

to benefit both the Company and the Subsidiary Company. 

13. There was significant over capacity in the domestic market. In the competitive environment that 

emerged the entry of several new operators in the domestic market during the last 2/3 years, 

many airlines resorted to low pricing, often below operating costs, in order to stimulate the 

market. As a result, yields of all domestic carriers declined during the year, despite increases, 

from time to time, of fares and of fuel surcharge. In this difficult environment, the Company’s 

performance in the domestic market must be viewed as satisfactory. 

14. The cost of Aviation Turbine Fuel (ATF) increased continuously throughout the year due to 

the rising cost of crude oil. As on March 2008, the cost of ATF in India was 37% higher than 

the cost a year ago. Additionally, because of the taxes and duties applicable, the ATF prices 

for domestic operations in India continue to be more than 60% higher than the international 

prices. The high cost of ATF has adversely impacted the performance of the Company during 

the year under review, as was the case with all the other Indian carriers and most airlines 

worldwide. 

15. As on 31st March, 2008, the Company had 81 aircraft in its fleet compared to 62 as on 

31st March, 2007. The Company added ten Boeing 777 and six Airbus 330, three Boeing 

737-700, seven Boeing 737-800 and two ATR – 72-500 aircraft to its fleet during the year. The 

Company also redelivered two Boeing 737-400, three Airbus 340 and three Boeing 737-700 

to the respective Lessors, at the end of respective lease periods. One ATR 72-500 aircraft was 

declared as a “Constructive Total Loss”. 

SALE AND LEASEBACK OF AIRCRAFT 

16. During the year, the Company sold and leased back four Boeing 737-700 aircraft. The 

Company’s profit attributable to this was Rs. 31,484 lac. 

REVALUATION OF ASSETS 

17. The Company revalued, as on 31st March, 2008, the Leasehold Land based on a valuation 

report obtained from a registered valuer and revalued Narrow Body Aircraft based on valuation 

reports prepared by International Aircraft Valuers. The resultant appreciation in respect of land 

is Rs. 148,119 lac and on account of Narrow Body Aircraft is Rs. 118,133 lac. An aggregate 

amount of Rs. 266,252 lac has been credited to Revaluation Reserve. 

13


INFORMATION UNDER CLAUSE 49 OF THE LISTING AGREEMENT: CHANGE IN 

ACCOUNTING POLICIES. 

18. Exchange Gain (net) of Rs. 23,293 lac for the Year ended 31st March, 2008, has been 

included in Other Income in accordance with the revised Accounting Standard AS 11 

“The Effects of Changes in Foreign Exchange Rates”. Such gain would have, prior 

to the onset of the Accounting Standard, been adjusted to the carrying amount of fixed 

assets. 

19. The Company’s wide body aircraft are depreciated at the rates prescribed as per 

Schedule XIV of the Companies Act, 1956 on Straight Line method as against Written 

Down Value method followed for Narrow Body aircraft held by the Company. The Wide 

Body aircraft are different from the Narrow Body aircraft in terms of technology and 

other efficiency parameters based on long haul operations and are being used primarily on 

International routes as compared to Narrow Body aircraft which are mostly deployed on 

Domestic routes. 

RESPONSES TO COMMENTS IN THE ANNExURE TO THE AUDITORS‘ REPORT 

20. Reference is drawn to point no. 4 and 7 of the Annexure to the Auditors‘ Report. The comments 

in italics read along with the respective further comments in the said Annexure to the Auditors‘ 

Report are self-explanatory. 

DIRECTORS’ RESPONSIBILITY STATEMENT 

21. As required under Section 217(2AA) of the Companies Act, 1956, your Directors confirm 

that: 

i. in the preparation of the Annual Accounts, the applicable accounting standards have been 

followed; 

ii. the Directors have selected such accounting policies and applied them consistently and 

made judgements and estimates that are reasonable and prudent so as to give a true and 

fair view of the state of affairs of the Company at the end of the Financial Year and of 

the loss of the Company for that year; 

iii. the Directors have taken proper and sufficient care for the maintenance of adequate 

accounting records in accordance with the provisions of the said Act for safeguarding 

the assets of the Company and for preventing and detecting fraud and other 

irregularities; 

iv. the Directors have prepared the Annual Accounts on a going concern basis. 

14


CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN ExCHANGE 

22. Particulars as prescribed pursuant to Section 217(1) (e) of the Companies Act, 1956 read 

with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 in 

respect of these items are given below: 

a. Conservation of Energy: 

The Company has during the year under review continued to rigorously monitor 

fuel consumption of all aircraft on an on-going basis, and taken various 

measures to optimize consumption. The average age of the Company’s fleet as 

on 31st March, 2008 was 4.24 years, a factor that contributes to fuel efficiency. The 

Company also maintains fuel-efficient operations with regard to its ground equipment 

and vehicles. 

b. Technology Absorption 

DIRECTORS 

• Training of Pilots: 

During the year under review, the Company installed and commissioned at its 

Simulator Centre in Mumbai two full flight simulators and related equipment to 

train Pilots on the Boeing 777 and Airbus 330 aircraft respectively.. The Company 

continued to give Pilots endorsement and refresher training for Boeing-737 aircraft 

at the Simulator Training Centre. The training was conducted by the Company’s own 

Instructors. The Company’s Pilots were given endorsement and refresher training for 

ATR aircraft at ATR’s simulator facility at Bangkok. This training was also conducted 

by the Company’s own instructors. 

• IT initiatives: 

The Company continued to upgrade all applications in use, both in its operations and 

in Management Information Systems. 

23. Dr. Vijay L. Kelkar resigned from the Board pursuant to his appointment as Chairman of the 

Finance Commission. The Directors place on record his invaluable contribution and guidance to 

the Board and to the Management during his tenure as Director and as a member of the Audit 

Committee. 

24. Mr. S. G. Pitroda, Mr. Javed Akhtar, Mr. Saroj K. Datta and Mr. Ali Ghandour retire by 

rotation at the ensuing Annual General Meeting and, being eligible, offer themselves for 

re-appointment. 

25. The Directors recommend the re-appointment of Mr. Saroj K. Datta as Executive Director of 

the Company, subject to the approval of the Central Government, of the Terms and Conditions 

of his appointment. 

15

AUDITORS 


26. The Statutory Auditors, Messieurs Deloitte Haskins & Sells, Chartered Accountants, and 

Messieurs Chaturvedi & Shah, Chartered Accountants, retire at the ensuing Annual General 

Meeting and have confirmed their eligibility and willingness to accept the office, if 

re-appointed. At the said Meeting, Members will be requested to appoint Statutory Auditors 

for the Financial Year 2008-09 and to fix their respective remuneration. 

PARTICULARS OF EMPLOYEES 

27. Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies 

(Particulars of Employees) Rules, 1975, as amended from time to time, forms part of this 

Report. However, as per the provisions of Section 219(1) (b) (iv) of the Companies Act, 1956, 

the Report and Accounts are being sent to all Members excluding the Statement containing 

the particulars of employees to be provided under Section 217 (2A) of the Act. A Member may 

inspect the particulars at the Registered Office of the Company between 11:00 A.M. to 1:00 

P.M. on all working days till the date of the 16th Annual General Meeting. 

CORPORATE GOVERNANCE 

28. Your Company has complied with the mandatory provisions of Clause 49 of the Listing 

Agreement relating to Corporate Governance, as amended from time to time. A separate 

section on Corporate Governance forms part of the Annual Report and the Certificate from 

the Company’s Statutory Auditors on compliance with the provisions of Corporate Governance 

is annexed to the Corporate Governance Report. 

CORPORATE SOCIAL RESPONSIBILITY 

29. In January 1997, the Company launched its in-flight collection programme the ‘Magic Box’ in 

association with the NGO “Save the Children India (STCI)‘‘. This fund-raising programme has 

been extended to all flights in the domestic network. The funds collected are utilized towards 

projects covering areas such as disaster relief, education and health care for the poor, and 

programmes to prevent the exploitation of women. 

30. The Company organizes “Flights of Fantasy”, where underprivileged children and children with 

special needs are taken on specially organized flights and introduced to the world of aviation. 

On the occasion of Children’s Day in November 2007, the Company operated Flights of 

Fantasy in partnership with Tata Consultancy Services in Hyderabad, for the Parents Association 

for Welfare of the Mentally Handicapped. In Mumbai, the Company in association with GE 

Volunteers operated a Flight of Fantasy for the children cared for by three NGOs viz. Magic 

Bus, Assema and VISA (Vision in Social Arena). 

31. This year, as in past years, Jet Airways employees participated in the Standard Chartered 

Mumbai Marathon that raises funds for various NGOs. The number of employees participating 

has been increasing each year. 

16

POST BALANCE SHEET EVENTS 


Resolution by Postal Ballot 

32. The Shareholders passed a Special Resolution by Postal Ballot authorizing the Board of 

Directors to issue Securities such as ADRs/GDRs/FCCBs etc. to eligible investors, QIBs/FIIs 

etc. up to US $ 400,000,000 (United States Dollars Four Hundred Millions). 

Fleet 

33. The Company inducted one ATR 72-500 and one Airbus 330 in May 2008 and one ATR 72-500 

and one Airbus 330 aircraft in June 2008. 

34. Depreciation on Narrow Body Aircraft was hitherto provided on Written Down Value Method. 

Based on the usage of such Aircraft, the industry practice followed in domestic and international 

markets, the Company, in order to reflect a more appropriate preparation / presentation of 

financial statements, has with effect from 1st April, 2008, changed the method of depreciation 

on such Aircraft to Straight Line Method and the surplus arising from retrospective computation 

aggregating Rs. 92,377 lac (excluding adjustment to revaluation reserve) will be accounted and 

disclosed under Exceptional Item. 

35. The Company, based on legal advice has, with effect from 1st April, 2008, adjusted the foreign 

currency differences on amounts borrowed for acquisition of fixed assets acquired from outside 

India aggregating Rs. 62,429 to the carrying cost of the fixed assets, in compliance with 

Schedule VI of the Companies Act, 1956 which is in variance with the treatment prescribed in 

Accounting Standard (AS -11) on ‘Effects of Changes in Foreign Exchange Rates’ notified in 

the Companies (Accounting Standards) Rules. 

Network 

36. The Company has introduced the following new routes and changes to exsiting routes after 1st 

April, 2008: 

International 


Mumbai - Hongkong - Mumbai 14th April, 2008 

Kochi - Doha - Kochi 18th April, 2008 

Mumbai - Muscat - Mumbai 21st April, 2008 

Mumbai – Abu Dhabi – Mumbai 23rd April, 2008 

Delhi – Abu Dhabi – Delhi 23rd April, 2008 

Mumbai – Bangkok – Mumbai 7th May, 2008 

Mumbai – San Francisco – Mumbai (via Shanghai) 14th June, 2008 

Delhi – Toronto – Delhi via Brussels 

(Operated as Delhi – New York (JFK)-Delhi until 31st July, 2008) 

1st August, 2008 

Chennai – New York (JFK) – Chennai via Brussels 

(Operated as Chennai – Toronto – Chennai until 31st July, 2008) 

1st August, 2008 

Mumbai – Dubai – Mumbai 23rd August, 2008 

Delhi – Dubai – Delhi 23rd August, 2008 

17

Domestic 



Chennai-Pune-Chennai 

(This route is now operated by Jet Lite) 

15th May, 2008 

Hyderabad-Rajahmundry-Hyderabad 15th June, 2008 

Hyderabad-Tirupathi-Hyderabad 15th June, 2008 

ACKNOWLEDGEMENT 

37. Your Directors place on record their appreciation for the contributions of the members of 

the Management Team and all employees for their continued hard work, dedication and 

commitment to maintaining the Company’s service standards, during the year under review. 

38. Your Directors place on record their appreciation for the support rendered by the Company’s 

General Sales Agents and their associates, Travel Agents and other members of the travel trade 

for their continued efforts in promoting the Company. 

39. Your Directors also take this opportunity to thank the Ministry of Civil Aviation, Government of 

India, the Director General of Civil Aviation (DGCA), the Airports Authority of India (AAI), the 

Mumbai International Airport (Private) Limited, Delhi International Airport (Private) Limited, 

Hyderabad International Airport (Private) Limited, Bangalore International Airport (Private) 

Limited and other airport companies for their support and guidance. Your Directors are also 

grateful to the Reserve Bank of India, the Ministry of Finance, the Ministry of Corporate Affairs, 

Government of India, National Stock Exchange of India Limited, Bombay Stock Exchange 

Limited, the US Exim Bank, Financial Institutions and Banks, the Boeing Company, Avion de 

Transport Regionale, Airbus Industrie, engine manufacturers and the lessors of our aircraft for 

their support, and look forward to their continued support. 

Date : 1st September, 2008 

Place : Mumbai 

For and on behalf of the Board of Directors 

NARESH GOYAL 

Chairman 

18

1. INDUSTRY STRUCTURE AND DEVELOPMENT 


1.1 The Indian aviation industry continued to grow, though at a slower rate, during the 

year under review. Economic growth, the emergence of India as a global economic 

power and other factors, that have had a positive impact on air travel in to and 

from India, were sustained all through the year under review. However, the aviation 

industry worldwide was adversely affected by the spiraling cost of Aviation Turbine 

Fuel (ATF), caused by the continuing increase in crude oil prices. The resultant 

increases in fares and fuel surcharges that the airlines had to implement, resulted 

in a slowdown in air travel, both in India and worldwide. 

1.2 Domestic carriers continued to add capacity during the year under review and, as in 

the previous year, the growth in capacity was far in excess of the growth in traffic 

in the domestic market. This continued overcapacity situation led some airlines to 

resort to extremely low pricing, well below break-even levels. As a consequence of 

this, combined with high ATF prices, the domestic aviation industry is estimated to 

have incurred a loss of close to Rs 40,000 million (USD 1.0 billion) during the year 

under review. 

1.3 With the liberalization of Air Services Agreements with various countries by the 

Government of India, international airlines continued to expand their operations into 

India during the year under review. A feature has been the increased frequencies 

to other interior destinations such as Bangalore and Hyderabad relieving the 

concentration of international flights to and from Mumbai and Delhi. This is 

likely to continue with the progressive modernization of other airports and also 

the Government’s policy of making interior airports available for direct operations 

by foreign airlines, particularly from countries in South East Asia and the Gulf. 

However, with the slowdown in air travel that is being witnessed, an overcapacity 

situation may emerge on the international routes to and from India. 

1.4 The Central Government’s policies with regard to the civil aviation industry 

remained positive. The Government of India has signed a number of new 

bilateral agreements with major countries, and this has encouraged the growth 

of international air traffic to and from India. The Government has also been 

proactive with regard to issues concerning the industry especially those relating to 

infrastructure. 

2. ANALYSIS OF OPERATIONAL PERFORMANCE FISCAL 2008 COMPARED TO 

FISCAL 2007 

Revenues 

Management’s Discussion and Analysis of 

Financial Condition and Results of Operations 

2.1 Our total revenues increased by 28.1 % from Rs.74,013 million Fiscal 2007 

to Rs.94,815 million Fiscal 2008. This increase was primarily due to increase in 

Passenger and Cargo Revenues. 

19

Passenger Revenues 


2.2 Passenger revenues increased by 24.3% from Rs. 64,378 million in Fiscal 2007 to 

Rs.80,030 million in Fiscal 2008. This increase was primarily due to the significant 

increase in international flights which led to higher revenue earnings per passenger 

as also a 6.5% increase in revenue passengers in Fiscal 2008 as compared to Fiscal 

2007. The airline commenced operations on a number of new international routes, 

particularly long-haul routes, including flights to Toronto, Newark and New York via 

Brussels. The Available Seat Kilometers (ASKMs) offered in Fiscal 2008 increased 

by 38.1% vs. Fiscal 2007. We generated revenues of Rs. 17,418 million from fuel 

surcharge (as compared to Rs. 7,507 Million in FY 2007) largely due to increases 

in fuel surcharge rates in Fiscal 2008 on domestic routes to offset the continuous 

increases in ATF prices. 

Revenues from Excess Baggage and Courier 

2.3 Excess Baggage and Courier revenues when taken together, declined by 33.4% from 

Rs.334 million in Fiscal 2007 to Rs.223 million in Fiscal 2008. Whilst excess baggage 

revenues showed a marginal increase of 1% from Rs.221 million in Fiscal 2007 to Rs. 

223 million in Fiscal 2008, The Company did not earn any revenues from carriage 

of on-board courier traffic, because the airline has progressively discontinued such 

traffic on domestic routes with effect from August 2006. However, such courier 

traffic has instead been carried as cargo, and accounted for as cargo revenue. 

Revenues from Cargo 

2.4 Revenues from carriage of cargo increased by 52.5% from Rs.4,111 million in Fiscal 

2007 to Rs.6,441 million in Fiscal 2008, primarily because tonnage carried increased 

from 141,791 tonnes in Fiscal 2007 to 165,757 tonnes in Fiscal 2008. A significant 

part of this revenue was generated on international routes. 

20

Other Revenues 


2.5 Other revenues decreased by 19.1% from Rs.1,754 million in Fiscal 2007 to Rs.1,418 

million in Fiscal 2008. The decrease was primarily on account of lower realization of 

export credit incentive under the Government’s Served From India Scheme (SFIS). 

Under this Scheme, exporters are allowed to set- off input taxes (such as customs 

duty, excise) to the extent of 10% of the export earnings brought into India. 

Non-Operating Revenues 

2.6 Non-operating Revenues increased by 95.1% from Rs.3,435 million in Fiscal 2007 

to Rs.6,704 million in Fiscal 2008. The variation is primarily due to the higher 

revenues realized from the sale and lease back of aircraft in Fiscal 2008 compared 

with the revenues realized through similar transactions in Fiscal 2007. 

Expenses 

Aircraft Fuel 

2.7 Fuel costs increased by 35.6% from Rs. 24,276 million in Fiscal 2007 to 

Rs.32,930 million in Fiscal 2008. This increase was due, firstly, to a 17.8% increase 

in block hours operated from 227,149 hours in Fiscal 2007 to 267,513 hours in 

Fiscal 2008; secondly, increases in average cost of fuel from Rs. 35.83 per litre 

in Fiscal 2007 to Rs. 36.14 per litre in Fiscal 2008; and, thirdly, in Fiscal 2008, 

the higher fuel consumption per block hour because of the higher proportion of 

total flights operated with wide-body aircraft on international routes: the higher 

capacity wide-body aircraft that we use for our international operations consume 

more fuel per block hour than the smaller capacity aircraft we use for our domestic 

operations. 

21

Other Operating Expenses 


2.8 Other Operating Expenses for Fiscal 2008 compared to Fiscal 2007 were: 

Year Ended March 31, 

2008 2007 

Increase/ 

(Decrease) 

(Rs. Millions) (Rs. Millions) (%) 

Maintenance and repairs 6,289 4,659 35.0 

Variable rentals 1,862 2,041 -8.8 

Landing, navigation and other 

airport charges 

6,960 4,787 45.4 

Insurance 596 722 -17.5 

General and administrative 10,086 6,623 52.3 

Total 25,792 18,833 37.0 

2.9 Other Operating Expenses increased by 37.0% from Rs.18,833 million in Fiscal 

2007 to Rs.25,792 million in Fiscal 2008 due to the following: 

• The increase in maintenance and repair costs in 2007 was essentially due 

to 

• more block hours flown during Fiscal 2008, due to the larger fleet 

compared to Fiscal 2007, and 

• the impact, during Fiscal 2008, of more wide body aircraft in the fleet, 

where maintenance costs are higher than that of narrow body 

aircraft. 

• The decrease in variable rentals is on account of the fact that the majority 

of the additions to the fleet were largely owned aircraft on which we do not 

pay rentals. During the year, we also returned 3 leased A340 aircraft which 

led to a reduction in variable lease rentals. 

• The increase in landing, navigation and other airport charges was primarily 

due to an increase in the number of flights operated [126,676 in Fiscal 2008 

compared to 119,369 in Fiscal 2007]. Further there were more international 

flights during Fiscal 2008, where charges paid in India and overseas are 

higher than those paid for domestic flights and also entail costs such as 

over-flying etc. 

• The decrease in insurance costs was due to the decrease in the premium 

rates paid for the fleet 

22


• The increase in general and administrative costs is attributable to: 

• increased costs of in-flight and passenger amenities due to more 

passengers flown during Fiscal 2008, and 

• increase in travelling costs by 81.9% mainly because of 

expenses incurred with regard to international routes that 

started in Fiscal 2008. Travelling costs also include cost of 

crew transportation and crew hotel accommodation, which 

increased significantly because of the increase in international 

operations. 

Employee Remuneration and Benefits 

2.10 Expenses with regard to employee remuneration and benefits increased by 28.5% 

from Rs. 9,381 million in Fiscal 2007 to Rs.12,052 million in Fiscal 2008 due to 

annual increments and due to increase in the number of employees from 11,088 as 

on 31st March, 2007 to 13,163 on 31st March 2008. A large part of this increase 

was due to the recruitment, during Fiscal 2008, of pilots, engineers and cabin crew 

to meet the Company’s expansion, that included a significant number of foreign 

and expatriate personnel in these categories. 

Selling and Distribution Costs 

2.11 Selling and distribution costs increased by 22.73% from Rs.8,008 million in Fiscal 

2007 to Rs. 9,829 million in Fiscal 2008. This increase in selling and distribution 

costs was caused by: 

• an increase of 23.4% in Central Reservation System (CRS) expenses and 

Global Distribution System (GDS) expenses from Rs. 1,779 million in Fiscal 

2007 to Rs. 2,196 million in Fiscal 2008; this was mainly due to the increase 

in the number of passengers flown and a larger mix of passenger bookings 

emanating from outside India (which are more expensive); and 

• an increase of 15.7% in commissions to our travel agents and General Sales 

Agents (GSAs) from Rs. 5,589 million in Fiscal 2007 to Rs. 6,467 million in 

Fiscal 2008. This was essentially due to increased Passenger Revenues and 

productivity-based incentives given to agents. 

Aircraft Rentals 

2.12 Aircraft rentals decreased by 12.8% from Rs. 6,458 million in Fiscal 2007 to 

Rs. 5,633 million in Fiscal 2008 due to reduction in lease rentals of some aircraft 

and the return of certain aircraft to respective lessors after the expiry of the lease 

periods. Part of the decrease in lease rentals was offset due to the sale and lease 

back of aircraft during Fiscal 2007 and Fiscal 2008. 

23

Depreciation 


2.13 We recorded an increase in depreciation costs of 87.8% from Rs. 4,141 million in 

Fiscal 2007 to Rs. 7,778 million in Fiscal 2008, essentially due to the addition of 

owned aircraft to the fleet as well as two new full flight simulators which were 

commissioned in FY 2008. 

Interest Expense 

2.14 Interest expenses increased by 105.2% from Rs. 2,402 million in Fiscal 2007 to 

Rs. 4,927 million in Fiscal 2008, largely due to the increase in loans to fund new 

aircraft. 

Profit/ (Loss) before Taxation 

2.15 Loss before taxation was Rs. 4,126 million in Fiscal 2008 compared to a profit of 

Rs. 514 million in Fiscal 2007. 

Profit/ (Loss) after Taxation 

2.16 Loss after taxation was Rs. 2,531 million in Fiscal 2008 compared to a profit of 

Rs. 280 million in Fiscal 2007. 

3. Initiatives 

3.1 The Company has put in place a major programme to reduce costs in all areas of 

operations. Under this programme, every element of cost and of senior expenditure 

is being reviewed. The programme involves the active participation of members of 

the management. 

3.2 The Company is integrating the operations of its subsidiary Jet Lite (India) Limited, 

particularly with regard to optimizing engineering and maintenance, revenue 

management, information technology and other areas. This will bring synergies to 

both companies. 

3.3 The Company installed and commissioned two more full flight simulators at its 

Simulator Centre in Mumbai – to train pilots on the Boeing 777 and the Airbus 330 

aircraft respectively. These simulators are in addition to the existing two Boeing 

737 simulators. The Company therefore has simulator training facilities for all major 

aircraft types in its fleet 

4. Outlook 

4.1 It is expected that with the slowdown in capacity addition in the domestic market, 

pricing in the domestic market will restore to rational levels. 

4.2 The Company continues to improve its performance in most of its 

international routes. It is expected that, over time, these routes will become 

profitable. 

24

5. Awards 


5.1 The Company continued to win awards in recognition of its services and 

products. During the year under review, the Company received the following 

awards: 

• In May 2007 for the third year in succession the Company has been 

conferred a Freddie Award, this time in the highly coveted category 

of “Programme of the Year” for Japan, Australia, Asia and Pacific 

regions. In April 2008,the Company won this award for the second year in 

succession. 

• In August 2007, the Company won the SAP ACE 2007 – Awards for Customer 

Excellence, in the Best Travel & Transportation Sector Implementation 

Category. 

• In September 2007, the Company was awarded TravelBiz Monitor’s - Most 

Innovative Product Launch Award for its ‘First Class’ product on its longhaul 

flights 

• In September 2007, the Company was awarded by The World Airline 

Entertainment Association as the Best Overall in In-flight Entertainment 

(IFE) for small airlines ranked highest by passengers in opinion polls 

administered worldwide 

• In October 2007, the Company website, www.jetairways.com, was awarded 

the prestigious Genius of the Web Awards 2007 for the Best Airlines 

website. 

• In January 2008, the Company won the Award for Customer & 

Brand Loyalty in the “Commercial Airlines Sector (Domestic)”, at the 

Indiatimes Mindscape and Saville Row (A Forbes Group Venture) Awards 

ceremony. 

6. Internal Control Systems 

6.1 The Company has a proper and adequate system of internal controls commensurate 

with its size and nature of operations to provide reasonable assurance that all assets 

are safeguarded, transactions are authorized, recorded and reported properly, and 

applicable statutes, codes of conduct and corporate policies are duly complied 

with. 

6.2 The Company’s Internal Audit Department reviews the adequacy and 

efficacy of the key internal controls. The scope of the audit activity is guided 

by the internal annual audit plan and, approved by the Audit Committee of the 

Board. 

25


6.3 The Company’s Audit Committee comprises six non-executive Directors; 

Mr. Aman Mehta (Chairman), Mr. Victoriano P. Dungca, Mr. Ali Ghandour, 

Mr. Charles Adams, Mr. Javed Akhtar and Mr. Yash Chopra. The Audit 

Committee reviews reports submitted by the Internal Audit Department 

and monitors follow-up and corrective action taken. Dr V. Kelkar was a 

member of the Audit Committee till his resignation from the Board on 31st 

December, 2007 

6.4 The Company has a corporate compliance procedure to ensure that all laws, rules 

and regulations applicable to it are complied with. Based on confirmation from 

departmental heads, the Chief Executive Officer places before the Board a Corporate 

Compliance Certificate at every Board Meeting. 

6.5 The Company Secretary is the designated Compliance Officer to ensure compliance 

with SEBI regulations and with our Listing Agreement with National Stock Exchange 

of India Limited and Bombay Stock Exchange Limited. 

6.6 The Executive Director is the Compliance Officer with regard to the ‘Jet Airways 

Code of Conduct for Prevention of Insider Trading’ and Public Spokesman for 

the ‘Jet Airways Code of Corporate Disclosure Practices for Prevention of Insider 

Trading’. 

6.7 The Company has a process of both external and internal safety audits for 

each area of operation. The Company is in full compliance with all laws, rules and 

regulations relating to airworthiness, air safety and other statutory operational 

requirements. 

6.8 The Company, as part of its Risk Management strategy, reviews on a 

continuous basis, its strategies, processes, procedures and guidelines to 

effectively identify and mitigate risks. Key risk areas in all areas of 

the Company’s operations and management have been identified and are 

maintained. 

7. Opportunities, Risks, Concerns and Threats 

7.1 The Company will continue its programme of expansion and continue to 

evaluate opportunities for new routes, particularly opportunities arising out of new 

bilateral agreements. The Company also intends to extend its alliances with other 

airlines. 

7.2 The prices of aviation fuel, which are largely determined by global prices of crude oil, 

continue to be a major cause for concern. High aviation fuel prices have impacted 

the financial performance of airlines worldwide, and may continue to do so unless 

prices of crude oil stabilize. It is expected in certain quarters that crude oil prices 

will be lower in fiscal 2009. 

26


7.3 Pricing policies followed by certain airlines due to the overcapacity in the 

domestic market may be reversed in fiscal 2010 with the slowdown of capacity 

growth 

7.4 The growth of air travel within, to and from India may be impacted by a possible 

slowdown in the Indian economy, and the slowdown in certain global economies. 

Factors such as political instability, internal violence or any external threat could 

also adversely impact the aviation industry. 

7.5 The air traffic congestion at Bangalore and Hyderabad experienced in fiscal 2008 

will ease with the commissioning of the new airports at these cities. The Director 

General of Civil Aviation continues its initiatives to modernize Air Traffic Control 

(ATC) systems in order to ameliorate the congestion. 

Certain statements in this Management Discussion and Analysis describing the Company may be 

‘forward-looking statements’ within the meaning of applicable securities laws and regulations. 

Actual results could differ materially from those expressed or implied. Important factors that could 

make a difference to the Company’s future operations include economic conditions affecting air 

travel in India and overseas, change in Government Regulations, changes in Central and State 

taxation, fuel prices and other factors. 

27


(Information given in this Report relates to the Financial Year ended 31st March, 2008) 

Company’s philosophy on Code of Governance 

The Company recognizes that good Corporate Governance is essential to build and retain the 

confidence of its stakeholders. To this end, the Company’s philosophy on Corporate Governance is 

to endeavour to ensure: 

• that systems and procedures which monitor compliance with laws, rules and regulations in 

place in each area of its business, 

• that relevant information regarding the Company and its operations is disclosed, disseminated 

and easily available to its stakeholders, and 

• that the Board of Directors is kept fully informed of 

• all material developments in the Company, 

• the risks in its business and its operations, 

• the rationale for management’s decisions and recommendations 

so that the Board of Directors can effectively discharge its responsibilities to our 

stakeholders. 

1. BOARD OF DIRECTORS 

i. Other Directorships / Memberships 

The Company has a Non-executive Chairman and the number of Independent Directors 

is more than one third of the total strength of the Board. The Company is in compliance 

with the requirements of Clause 49 of the Listing Agreement as regards composition of 

the Board. 

Name of 

Director 

Position/ 

Category 

Mr. Naresh Goyal Promoter & 

Non-Executive 

Chairman 

Corporate Governance Report 

As at 31st March 2008 

Other Directorships / *Mandatory 

Committee Memberships Number 

Directorships 

in other 

Companies** 

Committee 

Chairman 

Committee 

Member 

of Shares 

held 

1 None None 9,995 

(as a 

Nominee of 

Tail Winds 

Limited) 

28

Name of 

Director 


Position/ 

Category 

As at 31st March 2008 

Other Directorships / *Mandatory 

Committee Memberships Number 

Directorships 

in other 

Companies** 

Committee 

Chairman 

Committee 

Member 

of Shares 

held 

Mr. Ali Ghandour Non-executive 

Director 

None None None Nil 

Mr. Victoriano P. Dungca Non-executive 

Director 

1 None 1 Nil 

Mr. Charles A. Adams Non-executive 

Director 


Mr. Javed Akhtar Non-executive 

Independent Director 

1 None 1 5,990 

Mr. I. M. Kadri Non-executive 

Director 


Mr. P.R.S. Oberoi Non-executive 

Director 

10 1 1 Nil 

Mr. Aman Mehta Non-executive 


6 2 5 Nil 

Dr. Vijay L. Kelkar # Non-executive 


12 1 3 Nil 

Mr. S. G. Pitroda @ Non-executive 

Director 


Mr. Yash Raj Chopra Non-executive 


None None None 355 

Mr. Shah Rukh Khan Non-executive 

Director 


Dr. Pierre J. Jeanniot Non-executive 



Mr. Saroj K. Datta Executive Director 1 None None 553 

# Resigned w.e.f 31st December, 2007 

* Represents Memberships/Chairmanship of Audit Committee and Shareholders’/Investors’ Grievances 

Committee 

** The Directorships held by Directors as mentioned above, do not include Alternate Directorships and 

Directorships of Foreign Companies, Section 25 Companies and Private Limited Companies. 

@ Based on the information available as per the representation submitted by him as on 31st March, 

2007 

ii. Composition 

The Board of Directors of the Company consists of 13 Directors including 4 Independent 

Directors. Mr. Naresh Goyal is the Chairman and Mr. Saroj K. Datta is the Executive Director 

of the Company. The Board of Directors including the Independent Directors comprise of 

senior, competent and highly respected persons from their respective fields. 

29


iii. Attendance at the Board Meetings during the Financial Year 2007-08 and the last 

Annual General Meeting 

Six Board Meetings were held during the Financial Year 2007-08. The gap between any 

two Board Meetings did not exceed four months. The dates on which the Board Meetings 

were held are as follows: 

16th April, 2007, 26th June, 2007, 30th July, 2007, 27th September, 2007, 29th October, 

2007 and 28th January, 2008. 

Name of Director No of Meetings 

attended 

Attendance at Annual 

General Meeting held on 

27th September, 2007 

Mr. Naresh Goyal 4 Yes 

Mr. Ali Ghandour 5 Yes 

Mr. Victoriano P. Dungca 5 Yes 

Mr. Charles A. Adams 5 Yes 

Mr. Javed Akhtar 4 No 

Mr. I. M. Kadri 4 Yes 

Mr. P. R.S. Oberoi Nil No 

Mr. Aman Mehta 4 Yes 

Dr. Vijay L. Kelkar # 5 Yes 

Mr. S. G. Pitroda Nil No 

Mr. Yash Raj Chopra 5 No 

Mr. Shah Rukh Khan Nil No 

Dr. Pierre J. Jeanniot 1 Yes 

Mr. Saroj K. Datta 5 Yes 

# Resigned w.e.f. 31st December, 2007 

2. AUDIT COMMITTEE 

In terms of the Listing Agreements executed by the Company with Stock Exchanges, and 

pursuant to Section 292A of the Companies Act, 1956, the Company has complied with the 

requirements of Clause 49 of the Listing Agreement as regards composition of the Audit 

Committee. 

30


The terms of reference of the Audit Committee are comprehensive and cover the matters 

specified for the Audit Committees under the Listing Agreement with the Stock Exchanges. 

i. Composition, names of Members, Chairman and attendance at Meetings during the 

Financial Year 2007-08 

The Company has a qualified and an Independent Audit Committee as required under 

Clause 49 of the Listing Agreement. Currently its constitution is as under: 

Name of the Member Designation Category/Position 

Mr. Aman Mehta Chairman Independent Director 

Dr. Vijay L. Kelkar # Member Independent Director 

Mr. Victoriano P. Dungca Member Non-executive Director 

Mr. Javed Akhtar Member Independent Director 

Mr. Yash Raj Chopra Member Independent Director 

# Resigned w.e.f. 31st December, 2007 

Mr. Shirish Limaye, Company Secretary is the Secretary of the Audit Committee. Executives 

from Finance, Secretarial and Internal Audit Departments and representatives of the 

Statutory Auditors are invited to attend the Audit Committee Meetings. 

ii. Meetings and attendance during the Financial Year 2007-08 

Four Meetings of the Audit Committee were held during the Financial Year 2007-08. The 

dates on which the Audit Committee Meetings were held are as follows: 

26th June, 2007, 30th July, 2007, 29th October, 2007 and 28th January, 2008. 

Name of the Member No. of Meetings attended 

Mr. Aman Mehta 2 

Dr. Vijay L. Kelkar# 3 

Mr. Victoriano P. Dungca 3 

Mr. Javed Akhtar 3 

Mr. Yash Raj Chopra 4 


3. REMUNERATION AND COMPENSATION COMMITTEE 

i. Terms of Reference 

The Remuneration and Compensation Committee shall determine the Compensation Policy 

and other benefits for Executive Directors and the Senior Management. 

31


ii. Composition, names of Members and Chairman 

The Members of the Remuneration and Compensation Committee are as under: 


Dr. Vijay L. Kelkar# Chairman Independent Director 

Mr. Victoriano P. Dungca Member Non-executive Director 

Mr. Charles A. Adams Member Non-executive Director 

Mr. Javed Akhtar Member Independent Director 

Mr. Aman Mehta Member Independent Director 


iii. Meetings and attendance during the Financial Year 2007-08 

During the Financial Year 2007-08, only one Meeting of the Remuneration and 

Compensation Committee was held on 30th July, 2007. Dr. Vijay L. Kelkar, Mr. Victoriano 

P. Dungca, Mr. Charles A. Adams and Mr. Javed Akhtar were present at the meeting. 

iv. Remuneration Policy 

At present, the Non-executive Directors of the Company are entitled only to sitting 

fees and commission, which is decided by the Board of Directors and approved by the 

Shareholders as remuneration towards the increased responsibility entrusted upon them, 

current trends and commensurate with the time devoted and the contributions made 

by them. The Remuneration payable to the Executive Director is determined by the 

Remuneration and Compensation Committee. However due to the loss in the current 

financial year, no commission is payable to any Director. 

v. Details of remuneration of Directors for the Financial Year 2007-08 

Name of the Director 

Basic 

Salary 

(Rs.) 

Retirement Sitting Commission 

Allowances Perquisites 

Benefits Fees Payable 

(Rs.) (Rs.) 

(Rs.) (Rs.) (Rs.) 

Mr. Naresh Goyal Nil Nil Nil Nil 80,000 Nil 80,000 

Mr.Ali Ghandour Nil Nil Nil Nil 120,000 Nil 120,000 

Mr. Victoriano P. Dungca Nil Nil Nil Nil 220,000 Nil 220,000 

Mr. Charles A.Adams Nil Nil Nil Nil 180,000 Nil 180,000 

Mr. Javed Akhtar Nil Nil Nil Nil 160,000 Nil 160,000 

Mr. I. M. Kadri Nil Nil Nil Nil 120,000 Nil 120,000 

Total 

(Rs.) 

32

Name of the Director 

Basic 

Salary 

(Rs.) 


Retirement Sitting Commission 

Allowances Perquisites 

Benefits Fees Payable 

(Rs.) (Rs.) 

(Rs.) (Rs.) (Rs.) 

Mr. P. R. S. Oberoi Nil Nil Nil Nil Nil Nil Nil 

Mr. Aman Mehta Nil Nil Nil Nil 160,000 Nil 160,000 

Dr. Vijay L. Kelkar Nil Nil Nil Nil 200,000 Nil 200,000 

Mr. S. G. Pitroda Nil Nil Nil Nil Nil Nil Nil 

Mr. Yash Raj Chopra Nil Nil Nil Nil 180,000 Nil 180,000 

Mr. Shah Rukh Khan Nil Nil Nil Nil Nil Nil Nil 

Dr. Pierre J. Jeanniot Nil Nil Nil Nil 20,000 Nil 20,000 

Mr. Saroj K. Datta 3,061,000 1,692,000 Nil 511,551 Nil Nil 5,264,551 

The tenure of office of the Executive Director is for a period of one year from the date of 

his appointment and can be terminated by either party by giving three months notice in 

writing. There is no separate provision for payment of severance fees. 

The Company has paid Rs. 16,362,560/- as an advance against consideration payable 

to a Company in which Mr. Shah Rukh Khan is a Director / Member towards Master 

Production cost of Television Commercial Advertisements and for which the necessary 

Central Government approval has been obtained. 

4. INVESTORS’ GRIEVANCES COMMITTEE 

i. Composition, names of Members and Chairman 

The Company has an Investors’ Grievances Committee to specifically look into the redressal 

of the Shareholders’/Investors’ complaints. The Members of the Investors’ Grievances 

Committee are as under: 


Mr. I. M. Kadri Chairman Non-executive Director 

Mr. Charles A. Adams Member Non-executive Director 

Mr. Saroj K. Datta Member Executive Director 

ii. Meetings and attendance during the Financial Year 2007-08 

Three Meetings of the Investors’ Grievances Committee were held during the Financial 

Year 2007-08. The dates on which the said Meetings were held are as follows: 

26th June, 2007, 30th July, 2007, and 28th January, 2008. 

Total 

(Rs.) 

33


Name of the Member No. of Meetings attended 

Mr. I. M. Kadri 2 

Mr. Charles A. Adams 3 

Mr. Saroj K. Datta 3 

iii. Name and designation of Compliance Officer 

Mr. Shirish Limaye, Company Secretary is the Compliance Officer under Clause 47 of 

the Listing Agreement after taking over the charge from Ms. Sheetal S. Tamhane, who 

resigned from the services of the Company on 15th February, 2008. 

iv. Details of Shareholders’ complaint/queries 

Opening Balance Received Attended To Pending 

Nil 124 124 Nil 

The Company has designated exclusively the following email ID for the purpose of 

registering complaints by the Shareholders. The same has been displayed prominently on 

the Company’s website. 

investors@jetairways.com 

5. GENERAL BODY MEETINGS 

i. Location and time for the last three Annual General Meetings: 

Date Venue Time 

27th September, 2005 Nehru Centre Auditorium, Discovery of India 

Building, Dr. Annie Besant Road, Worli, Mumbai 

400 018 



400 018 



400 018 

3:30 P.M. 

3:30 P.M. 

3:30 P.M. 

34


ii. Whether any special resolutions passed in the previous three Annual General 

Meetings: 

Year Subject 

27th September, 2005 • Reappointment and remuneration of Executive Director 

• Payment of sitting fees to Directors and compensation to 

Non-executive Directors 

• Appointment of Mrs. Anita Goyal as Executive Vice- 

President – Marketing & Sales 

20th September, 2006 • Re-appointment and remuneration of Executive Director 

• Payment of Commission to Non-executive Directors for 

the Financial Year 2006-07 

• Alteration of Articles of Association of the Company 

27th September, 2007 • Re-appointment and remuneration of Executive Director 

• Payment of Commission to Non-executive Directors for 

the Financial Year 2007-08 

iii. Whether special resolutions were put through postal ballot last year, details of 

voting pattern, person who conducted the postal ballot exercise, proposed to be 

conducted through postal ballot and procedures for postal ballot. 

There was no such Resolution which was required to be passed by Postal Ballot. 

6. DISCLOSURES 

i. Disclosures on materially significant related party transactions i.e. transactions of the 

Company of material nature, with its promoters, the directors or the management, 

their subsidiaries or relatives etc. that may have potential conflict with the interests 

of the Company at large. 

None of the transactions with any of the related parties were in conflict with the interest 

of the Company. 

ii. Details of non-compliance by the Company, penalties, and strictures imposed on 

the Company by Stock Exchange or SEBI or any statutory authority on any matter 

related to capital markets, during the last three years. 

No penalties and strictures have been imposed on the Company. It has been regular 

in complying with the requirements specified by the Stock Exchanges, Securities and 

Exchange Board of India and other Statutory Authorities. 

35

iii. Code of Conduct 


The Board of Directors has laid down a Code of Business Conduct and Ethics for all 

Members of the Board and the Senior Management of the Company. The same has been 

posted on the Company’s website. All Members of the Board and the Senior Management 

personnel have affirmed their compliance with the said Code. A declaration to this effect 

signed by the Executive Director is given below: 

I hereby confirm that: 

The Company has obtained from all the Members of the Board and the Senior 

Management of the Company, affirmation that they have complied with the Code of 

Business Conduct and Ethics for all Members of the Board and the Senior Management 

in respect of the Financial Year 2007-08. 

iv. ED / CFO Certification 

Saroj K. Datta 

Executive Director 

A Certificate from the Executive Director and the Chief Executive Officer (In-charge 

Finance), on the Financial Statements and other matters of the Company for the Financial 

Year ended 31st March, 2008, was placed before the Board. 

v. Risk Management 

The Company has laid down procedures to inform Board Members about the Risk 

Assessment and Minimization procedures, which are periodically reviewed by the Board. 

SHAREHOLDER INFORMATION 

Date and time of Annual 

General Meeting 

Monday, 29th September, 2008 at 3.30 p.m. 

Venue Nehru Centre Auditorium, Discovery of India Building, Dr. Annie 

Besant Ro ad, Worli, Mumbai 400 018 

Financial Year 1st April, 2007 to 31st March, 2008 

Book Closure Date Wednesday, 17th September, 2008 to Monday, 29th September, 

2008 (both days inclusive) for Annual General Meeting. 

Dividend Payment Date Directors have not recommended any dividend. 

Registered Office S. M. Centre, Andheri-Kurla Road, Andheri (East), 

Compliance Officer 


Mr. Shirish Limaye, Company Secretary 

Website Address www.jetairways.com 

36

1. FINANCIAL CALENDAR 


The Company has announced/expects to announce the unaudited Quarterly Results for the 

Financial Year 2008-09, as per the following schedule: 

First Quarter : Announced on 29th July, 2008 

Second Quarter : On or before 31st October, 2008 

Third Quarter : On or before 31st January, 2009 

The Audited Financial Results of the Company for the Financial Year 2008-09 will be announced 

before 30th June, 2009, which will include the Financial Results for the Fourth Quarter of the 

Financial Year 2008-09. 

2. MEANS OF COMMUNICATION 

i. Half-yearly / Yearly Report posted on the Company’s website etc. 

The Company publishes financial results (quarterly / half-yearly / annual) in major 

newspapers after the same are approved by the Board. The financial results are also 

simultaneously posted on the Company’s website. Hence, no separate quarterly or halfyearly 

report is mailed to the Shareholders. 

ii. Quarterly results - which newspapers normally published in 

The Quarterly Financial Results are normally, published by the Company, in Hindustan 

Times / DNA and in the Navbharat and / or Navshakti. 

iii. Any website, where quarterly results are displayed; whether it also displays official 

news releases 

The Quarterly Financial Results and official news are posted on the Company’s website at 

www.jetairways.com. 

iv. The presentations made to institutional investors or to the analysts 

The Company selectively makes presentations to the Institutional Investors / Banks / 

Analysts after announcement of financial results. 

v. Whether the Management Discussion and Analysis is a part of the annual report or 

not 

Yes. This is provided elsewhere in the Annual Report. 

37

3. LISTING ON STOCK ExCHANGES 


The Company’s Equity Shares are listed on the following Stock Exchanges: 

National Stock Exchange of India Limited (NSE) 

“Exchange Plaza” 

Bandra-Kurla Complex, 

Bandra (East) 

Mumbai – 400 051 

Bombay Stock Exchange Limited (BSE) 

P. J. Towers 

Dalal Street, Fort, 

Mumbai – 400 001 

Listing Fees for the Financial Year 2008-09 have been paid to both the above Stock 

Exchanges. 

4. STOCK CODE 

National Stock Exchange of India Limited : JETAIRWAYS 

Bombay Stock Exchange Limited : 532617 

ISIN Nos. in NSDL and CDSL : INE802G01018 

5. MARKET PRICE DATA (HIGH, LOW DURING EACH MONTH IN LAST FINANCIAL 

YEAR) 

Month JETAIRWAYS on BSE JETAIRWAYS on NSE 

High Low Volume High Low Volume 

(Rs.) (Rs.) (Nos.) (Rs.) (Rs.) (Nos.) 

April 2007 756.00 585.00 5323917 756.80 556.00 14831230 

May 2007 776.00 700.00 2449774 777.20 655.55 6413939 

June 2007 837.00 705.00 1486210 970.00 722.00 4294640 

July 2007 900.00 691.50 850539 829.65 682.10 2577972 

August 2007 812.00 698.00 567763 812.90 696.05 1881018 

September 2007 980.00 809.00 1410991 997.60 805.00 5684563 

October 2007 967.90 800.00 1058836 968.00 820.00 2632838 

November 2007 898.55 740.00 337766 892.00 781.00 1326866 

December 2007 1049.80 828.00 642563 1048.80 825.00 3096735 

January 2008 1023.00 627.05 848222 1028.00 600.00 2689781 

February 2008 839.00 667.00 752540 840.00 706.50 970524 

March 2008 764.00 504.00 1148173 759.90 506.00 2773405 

38


6. PERFORMANCE OF SHARE PRICE OF THE COMPANY IN COMPARISON 

TO THE BSE AND NSE INDICES 

39

7. REGISTRAR AND SHARE TRANSFER AGENT 

Karvy Computershare Private Limited 

17 to 24, Vithal Rao Nagar, 

Beside Image Hospital 

Madhapur, Hyderabad 500 081 

Tel : +91 40 2342 0818 

Fax : +91 40 2342 0814 


Emai : einward.ris@karvy.com; mailmanager@karvy.com 

Contact Person : Mr. S. V. Raju, Assistant General Manager 

8. SHARE TRANSFER SYSTEM 

99.99% of the issued Equity Shares of the Company are in the dematerialized form. Transfers 

of these shares are done through the depositories with no involvement of the Company or its 

Registrars. 

As regards transfer of shares held in physical form, the transfer documents can be 

lodged with the Company’s Registrar and Share Transfer Agent -Karvy Computershare 

Private Limited at the above mentioned address or at the Registered Office of 

the Company. 

There was one transfer of shares in physical form during the Financial Year 2007-08. 

9. DEMATERIALIZATION OF SHARES AND SECRETARIAL AUDIT 

The Company has arrangements with National Securities Depository Limited (NSDL) 

and Central Depository Services (India) Limited (CDSL), to facilitate holding and 

trading of Company’s Equity Shares in electronic form. 99.99% of Company’s 

Equity Shares are held in electronic form. The Company’s Equity Shares are regularly 

traded on NSE and BSE. 

For the Financial Year ended 31st March 2008, M/s. T. M. Khumri & Co., Company Secretaries, 

carried out a Secretarial Audit to reconcile the total admitted capital with NSDL and CDSL and 

total issued and listed capital. The Secretarial Audit Reports for all the quarters of the said 

Financial Year confirm that the total Issued/Paid-up Capital is in agreement with the total 

number of Equity Shares in physical form and the total number of dematerialized Shares held 

with NSDL and CDSL. 

40


10. DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH, 2008 

Sl. 

No. 

Category 

From - To 

Number of 

Shareholders 

% of 

Shareholders 

Amount 

(Rs) 

% of 

Amount 

1 1 - 500 104950 95.0789 13573270 1.5722 

2 501 - 1000 3228 2.9244 2607730 0.3021 

3 1001 - 1500 710 0.6432 903110 0.1046 

4 1501 - 2000 466 0.4222 880570 0.1020 

5 2001 - 2500 172 0.1558 394960 0.0457 

6 2501 - 3000 134 0.1214 387650 0.0449 

7 3001 - 3500 57 0.0516 189800 0.0220 

8 3501 - 4000 111 0.1006 428480 0.0496 

9 4001 - 4500 36 0.0326 153570 0.0178 

10 4501 - 5000 89 0.0806 440630 0.0510 

11 5001 - 10000 194 0.1758 1466790 0.1699 

12 10001 - 20000 77 0.0698 1158330 0.1342 

13 20001 - 30000 28 0.0254 693820 0.0804 

14 30001 - 40000 17 0.0154 586700 0.0680 

15 40001 - 50000 8 0.0072 369250 0.0428 

16 50001 - 100000 26 0.0236 1925460 0.2230 

17 100001 & above 79 0.0716 837179990 96.9699 

Total : 110382 100.00 863340110 100.00 

11. SHAREHOLDING PATTERN AS PER CLAUSE 35 OF THE LISTING AGREEMENT, AS 

ON 31ST MARCH, 2008 

Sl. 

No. Category 

No of 

Shares held 

% of 

Shares 

A. SHAREHOLDING OF PROMOTER AND PROMOTERS 

GROUP 

1. Indian 

Individuals / Hindu Undivided Family 11,548 0.01 

Sub Total 11,548 0.01 

2. Foreign 

Bodies Corporate 69,057,210 79.99 

Sub Total 69,057,210 79.99 

Total shareholding of Promoter and Promoter Group (A) 69,068,758 80.00 

41

Sl. 

No. Category 


No of 

Shares held 

% of 

Shares 

B. PUBLIC SHAREHOLDING 

1. Institutions 

Mutual Funds / UTI 2,351,355 2.72 

Financial Institutions / Banks 414,084 0.48 

Insurance Companies 2,731,230 3.16 

Foreign Institutional Investors 8,727,544 10.11 

Sub Total 14,224,213 16.48 

2. Non-Institutional 

Bodies Corporate 

Individuals : 

748,015 0.87 

Individual shareholders holding nominal share capital up to 

Rs. 1 lakh 

2,111,844 2.45 

Individual shareholder holding nominal share capital in excess 

of Rs. 1 lakh 

Others : 

63,762 0.07 

Non Resident Indians 77,273 0.09 

Trusts 597 

Clearing Members 39,549 0.05 

Sub Total 3,041,040 3.52 

Total Public Shareholding (B) 17,265,253 20 

Total (A) + (B) 86,334,011 100 

C. SHARES HELD BY CUSTODIANS AND AGAINST WHICH 

DEPOSITORY RECEIPTS HAVE BEEN ISSUED 

– – 

Total (A) + (B) + (C) 86,334,011 100 

12. OUTSTANDING GDRs/ADRs/WARRANTS OR ANY CONVERTIBLE INSTRUMENTS, 

CONVERSION DATE AND LIKELY IMPACT ON EQUITY: 

As on 31st March 2008, the Company did not have any outstanding GDRs/ADRs/Warrants or 

any Convertible Instruments. 

13. PLANT LOCATIONS: 

In view of the nature of the Company’s business viz. provision of scheduled air services, 

the Company operates from various offices in India and abroad and has a Hangar at 

Chhatrapati Shivaji International Airport, Mumbai to provide repairs and maintenance services 

for Aircraft and Components. The Company also has Ground Support Department at various 

airports. 

42


14. ADOPTION OF NON-MANDATORY REQUIREMENTS UNDER THE LISTING 

AGREEMENT 

The Company has adopted the Non-mandatory requirement relating to the Remuneration 

Committee. Adoption of other non-mandatory requirements will be considered by the 

Company. 

15. INVESTOR COMPLAINTS 

Investor complaints are given top priority by the Company and are replied to promptly by the 

Secretarial Department and also by the Registrar and Share Transfer Agent of the Company. It 

is the endeavour of the Company that Investor Complaints are attended to within 48 hours of 

receipt. The Company has attended to all investors’ grievances/correspondences. The Company 

has a separate email ID investors@jetairways.com for addressing investors’ grievances. 

16. ADDRESS FOR CORRESPONDENCE 


Jet Airways (India) Limited 

S. M. Centre, Andheri-Kurla Road, 

Andheri (East), Mumbai 400 059 

Telephone : (022) 2920 1744 

Fax : (022) 2852 7745 

Email : companysecretary@jetairways.com 

Website : www.jetairways.com 

43


Auditors’ Certificate on Corporate Governance 

To The Members of 


We have examined the compliance of conditions of Corporate Governance by Jet Airways (India) 

Limited, for the year ended on March 31, 2008, as stipulated in clause 49 of the Listing Agreement 

of the said Company with the stock exchanges. 

The compliance of conditions of Corporate Governance is the responsibility of the management. Our 

examination was limited to procedures and implementation thereof, adopted by the Company for 

ensuring the compliance of the conditions of Corporate Governance as stipulated in the said Clause. 

It is neither an audit nor an expression of opinion on the financial statements of the Company. 

In our opinion and to the best of our information and according to the explanations given to us 

and the representations made by Directors and the management, we certify that the Company has 

complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above 

mentioned Listing Agreement. 

We further state that such compliance is neither an assurance as to the future viability of the 

Company nor the efficiency or effectiveness with which the management has conducted the affairs 

of the Company. 

FOR DELOITTE HASKINS & SELLS FOR CHATURVEDI & SHAH 


P. R. Barpande C. D. Lala 

Partner Partner 

M. No. 15291 M. No. 35671 

Mumbai 

Dated : 29th July, 2008 

44

To, The Members of Jet Airways (India) Limited 


Auditors‘ Report 

1. We have audited the attached Balance Sheet of Jet Airways (India) Limited (“the 

Company”) as at March 31, 2008, and the Profit and Loss Account and Cash Flow Statement 

for the year ended on that date both annexed thereto. These financial statements are the 

responsibility of the Company’s management. Our responsibility is to express an opinion on 

these financial statements based on our audit. 

2. We conducted our audit in accordance with auditing standards generally accepted in 

India. Those Standards require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. An 

audit includes examining, on a test basis, evidence supporting the amounts and disclosures 

in the financial statements. An audit also includes assessing the accounting principles used 

and significant estimates made by management, as well as evaluating the overall financial 

statement presentation. We believe that our audit provides a reasonable basis for our 

opinion. 

3. As required by the Companies (Auditor’s Report) Order, 2003, issued by the Central 

Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose 

in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said 

Order. 

4. Further, to our comments in the Annexure referred to above, we report that: 

(a) We have obtained all the information and explanations, which to the best of our 

knowledge and belief were necessary for the purposes of our audit; 

(b) In our opinion, proper books of account as required by law have been kept by the 

Company so far as appears from our examination of those books; 

(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by 

this report are in agreement with the books of account; 

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement 

dealt with by this report comply with the accounting standards referred to in 

sub-section (3C) of Section anies Act 1956; 

(e) On the basis of written representations received from Directors, except for 

Mr. S. G. Pitroda, as on 31st March, 2008 and taken on record by the Board of 

Directors, we report that all other Directors are not disqualified as on 31st March, 

2008 from being appointed as a director in terms of clause (g) of sub-section (1) 

of section 274 of the Companies Act, 1956. In respect of Mr. S. G. Pitroda, we are 

unable to comment whether he is disqualified from being appointed as a director 

under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 in 

the absence of such a representation; 

45


(f) We invite attention to note no. 14 of Schedule “S” regarding investments in 

subsidiary and advances due outstanding from such subsidiary aggregating to 

Rs. 170,965 lac, whose net worth has been eroded and the accounts have been 

prepared on going concern basis, considered good for the reasons stated therein; 

(g) In our opinion and to the best of our information and according to the explanations 

given to us, the said accounts read with note no. 8 (A) regarding the confirmations 

of the counter parties and other notes thereto, gives the information required by 

the Companies Act, 1956, in the manner so required, and present a true and fair 

view in conformity with the accounting principles generally accepted in India; 

i) in so far as it relates to the Balance Sheet, of the state of affairs of the 

Company as at 31st March, 2008; 

ii) in so far as it relates to the Profit and Loss Account, of the loss for the year 

ended on that date; and 

iii) in so far as it relates to the Cash Flow Statement, of the cash flows for the 

year ended on that date. 



P. R. Barpande C.D. Lala 


M. No. 15291 M. No. 35671 

Mumbai 

Dated : 24th June, 2008 

46

(Referred to in paragraph 3 of our report of even date) 


Annexure to the Auditors‘ Report 

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) As explained to us, the fixed assets have been physically verified by the management 

during the year in a phased manner, which in our opinion is reasonable, having 

regard to the size of the Company and nature of its assets. The fixed assets 

physically verified have been reconciled with the book records except in respect 

of few items which as represented to us that the Company does not expect any 

material discrepancies on completion of such reconciliation with book records for 

remaining assets. 

c) In our opinion, the company has not disposed off a substantial part of the fixed 

assets during the year and the going concern status of the Company is not 

affected. 

2) In respect of its inventories; 

a) The inventory has been physically verified during the year by the management. In 

our opinion, the frequency of verification is reasonable. 

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

procedures of physical verification of inventories followed by the management 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/ 

taken loans, secured or unsecured, to / from companies, firms or other parties covered in the 

register maintained under section 301 of the Companies Act 1956. Therefore, the provisions 

of clause 4(iii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the 

company. 

4) In our opinion and according to the information and explanations given to us, there are 

internal control procedures commensurate with the size of the Company and the nature of its 

business for the purchase of inventory, fixed assets and with regard to rendering of services 

except in respect of timely reconciliation of debtors’ balance, which is being strengthened 

by the Company. There is no sale of goods. During the course of our audit, we have not 

observed any continuing failure to correct major weaknesses in internal controls. 

5) In respect of contracts or arrangements referred to in section 301 of the Companies Act 

1956, to the best of our knowledge and belief and according to the information and 

explanations given to us: 

(a) The particulars of contracts or arrangements have been entered in the register 

maintained under that section. 

(b) Transactions made in pursuance of such contracts or arrangements have been made 

at prices which are reasonable having regard to prevailing market prices at the 

relevant time. 

47


6) According to information and explanations given to us, the Company has not accepted 

deposits from the public. Therefore the provisions of clause 4(vi) of the Companies 

(Auditor’s Report) Order, 2003 are not applicable to the Company. 

7) In our opinion, the Company has an internal audit system commensurate with the size and 

the nature of its business, which in our opinion further needs to be strengthened in the 

areas of purchase of fixed assets in respect of which we are informed that the management 

has initiated the steps. We are further informed that as regards purchase of aircraft the 

same are authorised / approved with the involvement of the top management team. 

8) Maintenance of cost records has not been prescribed by the Central Government under 

clause (d) of sub section (1) of section 209 of the Companies Act, 1956. Therefore the 

provisions of clause 4(viii) of the Companies (Auditor’s Report) Order, 2003 are not 

applicable to the company 

9) In respect of Statutory dues: 

a) According to the records of the Company, undisputed statutory dues, including 

Provident Fund, Investor Education and Protection Fund, Employees’ State 

Insurance, Income tax, Sales tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, 

cess and other material statutory dues have been generally regularly deposited 

with the appropriate authorities. According to the information and explanation 

given to us, no undisputed amounts payable in respect of the aforesaid dues were 

outstanding as at March 31, 2008 for a period of more than six months from the 

date they become payable. 

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

tax, income tax, service tax, custom duty, wealth tax, excise duty and cess which 

have not been deposited on account of any dispute other than the following: 

Name of the 

Statute 

IATT Rules, 

1989 

IATT Rules, 

1989 

B.M.C. Act, 

1988 

Central Excise 

and Custom Act 

Nature of 

the Dues 

IATT Interest & 

Penalty 

IATT Interest & 

Penalty 

Amount 

(Rs in lac) 

Period to 

which the 

amount 

relates 

Forum where dispute is 

pending 

321 2003-04 Commissioner of Customs 

(Appeals), New Delhi 

35 2001-02 Commissioner of Customs 

(Appeals), New Delhi 

Octroi Dues 2,899 2000-01 Mumbai High Court 

Service Tax 33 2001-2002 to 

2004-2005 

Commissioner of Central 

Excise (Appeals) 

10) The Company does not have accumulated losses at the end of the financial year. The 

Company has not incurred cash losses during the financial year covered by the audit and 

the immediately preceding financial year. 

11) Based on our audit procedures and according to the information and explanations given to 

us, we are of the opinion that the Company has not defaulted in the repayment of dues 

to financial institutions and banks. There were no debentures issued during the year or 

outstanding at the beginning of the year. 

12) We are of the opinion that the company has maintained adequate records where the 

company has granted loans and advances on the basis of security by way of pledge of 

shares, debentures and other securities. 

48


13) In our opinion the company and according to the information and explanation given to 

us, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore 

the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not 

applicable to the company. 

14) The Company has not dealt, other than in units, or traded in shares, securities, debentures 

or other investments during the year. In our opinion and according to information and 

explanations given to us the Company has dealt in units of Mutual Funds for which the 

Company has maintained proper records of transactions and contracts. All the investments 

have been held by the Company in its own name. 

15) The Company has given guarantees for loans taken by subsidiary Company from bank and 

financial institution. According to the information and explanations given to us, we are of 

the opinion that the terms and conditions thereof are not prima facie prejudicial to the 

interest of the Company. 

16) In our opinion, and according to the information and explanations given to us, the term 

loans have been applied for the purpose for which they were raised. 

17) According to the information and explanations given to us and on an overall examination 

of the balance sheet of the Company, we report that funds raised on short-term basis have, 

prima facie, not been used for long-term investment except Rs. 60,937 lac utilized towards 

purchase of fixed assets and we are represented that this position is temporary in view of 

expansion of fleet. 

18) According to the information and explanations given to us, the Company has not made 

preferential allotment of shares to parties and companies covered in the register maintained 

under Section 301 of the Companies Act 1956. Therefore, the provisions of clause 4(xviii) 

of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company. 

19) According to the information and explanations given to us, during the period covered by 

our audit report, the Company has not issued any debentures and no debentures were 

outstanding at the beginning of the year. Therefore, the provisions of clause 4(xix) of the 

Companies (Auditor’s Report) Order, 2003 are not applicable to the company. 

20) The Company has not raised any money by way of public issue during the year. 

21) According to the information and explanations given to us and on the basis of the 

examination of the records, no fraud on or by the Company noticed or reported during the 

year except fraudulent use of credit cards for booking of tickets amounting to Rs. 187 lac, 

which we are informed are being pursued. 





M. No. 15291 M. No. 35671 

Mumbai 


49


As per our attached report of even date For and on behalf of the Board 

For DELOITTE HASKINS & SELLS For CHATURVEDI & SHAH 

Chartered Accountants Chartered Accountants Victoriano P. Dungca 

Director 

P. R. Barpande C. D. Lala Saroj K. Datta 

Partner Partner Executive Director 



Balance Sheet as at 31st March, 2008 

Schedule 

No. 

As at 

31st March, 

2008 

Rs. in lac 

Shirish M. Limaye 


As at 

31st March, 

2007 

Rs. in lac 

I. SOURCES OF FUNDS 

1 Shareholders’ Funds : 

a) Share Capital: 

Equity A 8,633 8,633 

8,633 8,633 

b) Reserves and Surplus B 446,532 215,092 

455,165 223,725 

2 Loan Funds : 

a) Secured Loans C 120,025 74,246 

b) Unsecured Loans D 1,040,229 531,384 

1,160,254 605,630 

3 Deferred payment liability towards Investment in a wholly 

owned subsidiary company 

[Due within one year Rs. 13,750 lac (Previous Year N.A.), 

Refer Note 10 (b) of Schedule S] 

41,250 - 

4 Deferred Tax Liability (Refer Note 20 of Schedule S) 16,023 33,106 

Total 1,672,692 862,461 

II. APPLICATION OF FUNDS 

1 Fixed Assets : E 

a) Gross Block 1,659,109 571,383 

b) Less : Depreciation 250,692 241,634 

c) Net Block 1,408,417 329,749 

d) Capital Work-in-progress 122,328 399,452 

1,530,745 729,201 

2 Investments F 147,535 6,893 

3 Current Assets, Loans and Advances : 

a) Inventories G 54,503 43,899 

b) Sundry Debtors H 131,373 60,390 

c) Cash and Bank Balances I 85,514 109,664 

d) Loans and Advances J 120,854 122,494 

392,244 336,447 

Less : Current Liabilities and Provisions 

a) Current Liabilities K 378,908 185,264 

b) Provisions L 18,924 24,816 

397,832 210,080 

Net Current Assets (5,588) 126,367 

Total 1,672,692 862,461 

Significant Accounting Policies and Notes to Accounts S 

50


Profit and Loss Account for the year ended 31st March, 2008 




Director 





Schedule 

No. 

Rs. in 

lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 



For the 

Year ended 

31st March, 

2007 

Rs. in lac 

INCOME : 

Operating Revenue M 881,110 705,778 

Non - Operating Revenue N 67,041 34,353 

Total 948,151 740,131 

EXPENDITURE : 

Employees Remuneration and Benefits O 120,518 93,812 

Aircraft Fuel Expenses 329,303 242,764 

Selling and Distribution Expenses P 98,286 80,085 


Q 257,920 188,329 

(including Maintenance, Airport Charges, etc.) 

Aircraft Lease Rentals (Refer Note 3 of Schedule S) 56,328 64,580 


Less : Depreciation on amount added on 

Revaluation charged to Revaluation Reserve 

1,563 2,958 

77,780 41,410 

Interest and Finance Charges R 49,275 24,015 

Total 989,410 734,995 

(LOSS) / PROFIT BEFORE TAXATION (41,259) 5,136 

Tax Expenses 

Current Tax (including provision for Wealth 

8 475 

Tax Rs. 8 lac, Previous Year Rs. 7 lac) 

Deferred Tax (17,083) 1,369 

Fringe Benefit Tax 1,002 966 

MAT Credit Entitlement - (468) 

Provision of Income Tax (Net) for Earlier Years 120 - 

(LOSS) / PROFIT AFTER TAXATION (25,306) 2,794 

Balance Brought Forward 46,197 49,743 

PROFIT AVAILABLE FOR APPROPRIATION 20,891 52,537 

Less : Appropriations 

Transferred to General Reserve - 280 

PROFIT AVAILABLE FOR DISTRIBUTION 20,891 52,257 


Income Tax on Dividend - 880 

BALANCE CARRIED TO BALANCE SHEET 20,891 46,197 

Earnings per share of Rs. 10 each (Refer Note 19 of 

Schedule S) 

Basic and Diluted (in Rupees) (29.31) 3.24 


51


Statement of Cash Flow for the year ended 31st March, 2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2007 

Rs. in lac 

A. Cash Flow from Operating Activities 

(Loss) / Profit before tax (41,259) 5,136 

Adjustments for : 


Provision for Stock Obsolescence 2,785 2,450 

Profit on sale of Fixed Assets (Net) (31,306) (20,775) 

(Profit) on sale of Investments / Dividend on Current 

Investments (929) (1,049) 


Interest on Bank and Other Deposits (2,762) (5,355) 

Excess Provision no longer required (3,010) (2,449) 

Provision for doubtful debts no longer required written back (129) (11) 

Provision for Leave Encashment and Gratuity 3,458 2,253 

Exchange difference on translation (Net) (28,347) (1,907) 

Provision for doubtful debts 913 121 

Bad Debts written off 1,380 645 

Inventory scrapped during the year 3,367 1,845 

Operating profit before working capital changes 31,216 46,221 

Changes in Inventories (16,756) (7,561) 

Changes in Sundry Debtors (71,572) (17,912) 

Changes in Loans and Advances (44,990) (25,686) 

Changes in Current Liabilities and Provisions 190,328 79,225 

Cash generated from operations 88,226 74,287 

Direct Taxes paid (1,960) (5,541) 

Net cash from operating activities 86,266 68,746 

B. Cash Flow from Investing Activities 

Purchase of Fixed Assets and Capital work-in-progress (631,663) (307,637) 

Proceeds from sale of Fixed Assets 54,626 46,663 

Purchase of Current Investments (618,900) (208,475) 

Sale of Current Investments 625,220 221,354 

Dividend on Current Investment 

Long Term Investment in wholly owned subsidiary company: 

467 - 

Cost of Acquisition 

Adjustment of Advance paid as per Share Purchase 

(146,500) - 

Agreement 50,000 - 

Deferred payment liability towards Investment 41,250 - 

(55,250) - 

Changes in Fixed Deposits with Banks (Refer Note 2 below) 5,333 13,613 

Interest Received on Bank and Other Deposits 2,487 5,874 

Refound of Deposit in Escrow Account - 150,000 

Net cash used for investing activities (617,680) (78,608) 

52


Rs. in lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2007 

Rs. in lac 

C. Cash flows from Financing Activities 

Net Increase in Short Term Loans 51,301 31,025 

Proceeds from Long Term Loans during the year 1,029,774 250,210 

Repayment of Long Term Loans during the year (502,425) (153,663) 

Interest and Finance Charges (60,272) (48,438) 

Dividend paid (including Tax on Dividend) (6,056) (5,901) 

Note : 

Net cash from financing activities 512,322 73,233 

Net change in cash (A+B+C) (19,092) 63,371 

Cash and cash equivalents at beginning of the year 86,147 22,776 

Cash and cash equivalents at end of the year 

(Refer Notes below) 

67,055 86,147 

1) Cash and Cash equivalents for the period ended 31st March, 2008 includes unreaslised Gain (Net) of 

Rs. 677 lac [Previous Year unrealised Gain (Net) of Rs. 3 lac] on account of translation of foreign currency 

bank balances. 

2) Fixed Deposits with banks with maturity period of more than three months including interest accrued thereon 

and Fixed Deposits under lien amounting to Rs. 14,327 lac (Previous Year Rs. 23,517 lac) are not included 

in Cash and Cash equivalents. 




Director 







53


Schedules to the Balance Sheet as at 31st March, 2008 

SCHEDULE A : 

SHARE CAPITAL 

Authorized 

180,000,000 (Previous Year 180,000,000) Equity Shares of 

Rupees 10/- each 

20,000,000 (Previous Year 20,000,000) Preference Shares of 

Rupees 10/- each 

Issued, Subscribed and Paid up 

Equity: 

86,334,011 Equity Shares (Previous Year 86,334,011) of 

Rs.10/- each fully paid up 

Of the above Equity Shares: 

- 69,067,205 Equity Shares held by the holding company, Tail 

Winds Limited & its nominee (Previous Year 69,067,205 Shares) 

- 9,402,900 shares are allotted as fully paid bonus shares by 

Capitalization of Profit (Previous Year 9,402,900 Shares) 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

18,000 18,000 

2,000 2,000 

20,000 20,000 

8,633 8,633 

Total 8,633 8,633 

54



SCHEDULE B : 

RESERVES AND SURPLUS 

Capital Reserve 

Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

Balance as per Last Balance Sheet * * 

Nominal Value of investments in SITA received free of cost 

(See Note I.1.(a) of Schedule 'F' - Investments) 

*Rupees 2/- (Previous Year Rupees 2/-) 

Capital Redemption Reserve 

- - 

* * 

Balance as per Last Balance Sheet 5,558 5,558 

Share Premium 


Revaluation Reserve 


Add : Created during the year (Refer Note 5 of Schedule S) 266,252 - 

Less: Adjustment / Reversal during the year on Sale and 

Lease Back 

Less: Depreciation for the year on amount added on 

Revaluation transferred to Profit and Loss Account 

General Reserve 

7,943 - 

1,563 2,958 

269,990 13,244 


Less: Difference in opening liability upon implementation 

of AS 15 (Revised 2005) "Employee Benefits" [net of 

deferred tax Nil (Previous Year Rs. 329 lac)] 

- 639 

Add: Transferred from Profit & Loss Account - 280 

8,675 8,675 

Surplus Balance in Profit and Loss Account 20,891 46,197 

Total 446,532 215,092 

55



Rs. in 

lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

SCHEDULE C : 

SECURED LOANS 

From Banks - Rupee Loans 

(Loans from Banks are secured by hypothecation of Stocks, Debtors 

and Movable Fixed Assets other than Aircraft and / or by lien on Bank 

Deposits) 

From Financial Institutions 

87,475 36,978 

Rupee Loan - 2,000 

Foreign Currency Loan 32,550 35,268 

[Rs. Nil (Previous Year Rs. 2,000 lac) Secured by hypothecation of 

Simulator and Other accessories thereto] 

[Rs. 32,550 lac (Previous Year Rs. 35,268 lac) Secured by Mortgage on 

Leasehold Land situated at Bandra-Kurla Complex] 

32,550 37,268 

Total 120,025 74,246 

SCHEDULE D : 

UNSECURED LOANS 

Short Term Loans: 

From Banks 

Other Loans: 

70,931 70,127 

From Banks 

[Repayable within one year Rs. 47,081 lac (Previous Year - 

Rs. 164,752 lac)] 

47,081 174,532 


[Repayable within one year Nil (Previous Year - Rs. 43,500 lac)] 

- 43,500 

From Others 

Outstanding Hire Purchase / Finance Lease Installments 

[Installments due within one year Rs. 69,438 lac 

(Previous Year - Rs. 25,481 lac)] 

922,217 243,225 

969,298 461,257 

Total 1,040,229 531,384 

56


SCHEDULE - E 

FIXED ASSETS 

Rs. in lac 

NATURE OF ASSETS GROSS BLOCK (At Cost / Valuation) DEPRECIATION / AMORTISATION NET BLOCK 

As at Additions Deductions/ As at Upto For the Deductions Upto As at As at 

01.04.2007 during Adjustments 31.03.2008 31.03.2007 Year Ended 

31.03.2008 31.03.2008 31.03.2007 

the Year 

31.03.2008 


LEASEHOLD LAND 37,134 148,119 - 185,253 289 464 - 753 184,500 36,845 

PLANT AND MACHINERY 754 13 2 765 72 96 * - 168 597 682 

FURNITURE AND FIXTURES 2,403 823 8 3,218 1,510 303 7 1,806 1,412 893 

ELECTRICAL FITTINGS 2,113 628 64 2,677 952 217 48 1,121 1,556 1,161 

DATA PROCESSING EQUIPMENT 6,817 1,083 276 7,624 5,290 828 271 5,847 1,777 1,527 

OFFICE EQUIPMENT 3,809 918 20 4,707 1,691 384 15 2,060 2,647 2,118 

GROUND SUPPORT EQUIPMENT 5,207 930 6 6,131 2,799 409 6 3,202 2,929 2,408 

VEHICLES 865 193 105 953 444 141 93 492 461 421 

GROUND SUPPORT VEHICLES 4,894 2,401 366 6,929 3,399 823 301 3,921 3,008 1,495 

AIRCRAFT AND SPARE ENGINE 

(Narrow Body) 

464,675 169,730 100,701 533,704 212,381 43,248 69,544 186,085 347,619 252,294 

AIRCRAFT AND SPARE ENGINE 

(Wide Body) 

- 844,196 - 844,196 - 24,649 - 24,649 819,547 - 

IMPROVEMENT ON LEASED 

AIRCRAFT 

8,026 7,509 - 15,535 3,640 1,913 - 5,553 9,982 4,386 

IMPROVEMENT ON LEASED 

PROPERTY 

4,293 175 - 4,468 1,354 694 - 2,048 2,420 2,939 

SIMULATORS 10,600 11,020 - 21,620 3,634 2,158 - 5,792 15,828 6,966 

INTANGIBLE ASSETS (Other than 

internally generated) 

SOFTWARE 2,236 1,536 - 3,772 1,455 846 - 2,301 1,471 781 

LANDING RIGHTS 14,411 - - 14,411 2,197 1,855 - 4,052 10,359 12,214 

TRADEMARKS 3,146 - - 3,146 527 315 - 842 2,304 2,619 

TOTAL 571,383 1,189,274 101,548 1,659,109 241,634 79,343 70,285 250,692 1,408,417 329,749 

PREVIOUS YEAR 437,206 187,756 53,579 571,383 224,958 44,368 27,692 241,634 329,749 

CAPITAL WORK IN PROGRESS 

122,328 399,452 

INCLUDING CAPITAL ADVANCES 

* Deductions of accumulated depreciation Rupees 45,938/- 

NOTE : 1) All the Aircraft are acquired on Hire-purchase / Finance Lease basis and do not include Aircraft taken on Operating lease. Such Aircraft are charged by the Hirers / Lessors against the financing 

arrangements obtained by them. 

2) Additions to Aircraft / Simulator during the year include Rs. 15 lac (Previous Year net of Rs. (-) 3,314 lac) on account of Exchange Loss / (-) Gain during the year. Capital Work in Progress includes 

Rs. Nil (Previous Year Rs. (-) 8,485 lac) on account of Exchange Gain during the year. 

3) Additions include as under 

(a) Leasehold Land is revalued as on 31st March, 2008 (Refer Note 5 of Schedule S); amount added on revaluation is Rs. 148,119 lac; the revalued 

amount substituted for historical cost on 31st March, 2008 is Rs. 184,500 lac 

(b) Narrow Body Aircraft are revalued on 31st March, 2008 (Refer Note 5 of Schedule S); amount added on revaluation shown under additions during the year is Rs.118,133 lac; the revalued amount 

substituted for book value on 31st March, 2008 is Rs.346,396 lac. 

(c) Deduction from Gross Block during the year includes Rs.7,943 lac (Previous Year Rs. Nil) being reversal of amount added on revaluation in respect of aircraft sold and leased back. 

4) Useful life of Intangible Assets : Software - Upto 3 years Landing Rights - Upto 20 years Trademarks - 10 years 

57



SCHEDULE F : 

INVESTMENTS 

Unquoted 

I. Long Term Investments - (At Cost) 

1 Trade Investments 

18 Shares (Previous Year -18 Shares) held with Societe Internationale de Telecommunications 

Aeronautiques (S.I.T.A S.C) * [Rupees 2/- (Previous Year Rupees 2/-)] 

NOTES : 

(a) These investments have been received free of cost from SITA SC for participation in their 

Computer Reservation System and have been accounted at a nominal value of Rupees 2/- 

(Previous Year Rupees 2/-) by crediting equivalent amount to Capital Reserve. 

(b) The transfer of this investment is restricted to other Depository Certificate holders for 

e.g. Air Transport members, etc. 

2 Others 

Investment in Subsidiary Company 

(a) Fully Paid Equity Shares of Rs. 10 each : 

276,115,409 (Previous Year Nil) Shares of Jet Lite (India) Limited (Erstwhile 

Sahara Airlines Limited) 

[Out of above, 276,115,403 shares have been pledged with IDFC Ltd as security 

for Term Loan of Rs. 40,120 lac granted by them to Jet Lite (India) Ltd] 

(b) Fully Paid Preference Shares of Rs. 10/- each - Non-cummulative fully convertible: 

340,000,000 (Previous Year Nil) Shares of Jet Lite (India) Limited 

(Erstwhile Sahara Airlines Limited) 

Unquoted 

II. Current Invetments - Others # (At Cost or Market Value, whichever is less) 

Investments in Mutual Funds - (Debt Schemes) 

Schemes As at 

31st March, 

2008 

No. of Units 

Growth Plan 

Prudential ICICI Mutual Fund 

**(Rupees 6,842/-) 

Barclays Global Investors Mutual Fund - 

As at 

31st March, 

2007 

No. of Units 

Face 

Value/Unit 

As at 31st 

March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

* * 

112,500 - 

34,000 - 

146,500 - 

535 3,877,722 Rs. 10.00 ** 493 

Euro **** (Rupees 1,134/-) 1,134 - € 1.00 

**** - 

GBP 1,295,961 - £ 1.00 1,035 - 

Standard Chartered Mutual Fund - 46,615,184 Rs. 10.00 - 6,400 

Market Value As at 

31st March, 

2008 

Rs. in lac 

Growth Plan 

Prudential ICICI Mutual Fund (*** 

Rupees 7,070/-) 

As at 

31st March, 

2007 

Rs. in lac 

*** 494 

Barclays Global Investors Mutual Fund 1,035 - 

Standard Chartered Mutual Fund - 6,407 

1,035 6,901 

Note : The market price is based on the repurchase price declared by the respective 

funds. 

# Refer Note 6 of Schedule S for Invetments purchased and sold during the year. 

1,035 6,893 

Total 147,535 6,893 

58



SCHEDULE G : 

INVENTORIES (At Lower of Cost or Net Realisable Value) 

Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

i) Rotables, Consumable stores and tools 60,703 50,007 

Less :Provision for Obsolescence / Slow and Non-Moving items 

(Refer Note I (M) of Schedule S) 

10,926 9,974 

49,777 40,033 

ii) Fuel 411 126 

iii) Other Stores Items 4,348 3,740 

Less :Provision for Slow and Non-Moving items 33 - 

4,315 3,740 

Total 54,503 43,899 

SCHEDULE H : 

SUNDRY DEBTORS 

(Unsecured) 

a) Debts (Outstanding for a period exceeding six months) 2,091 997 

b) Other Debts 130,845 60,277 

132,936 61,274 

Less : Provision for Doubtful Debts 1,563 884 

As At As At 

31st March, 31st March, 

NOTES : 2008 2007 

1) Considered good 131,373 60,390 

Considered doubtful 1,563 884 

1,32,936 61,274 

2) Debtors include Rs. 88 lac (Previous Year Rs. 122 lac) due 

from private company in which the Company’s director is 

a director / member. 

131,373 60,390 

Total 131,373 60,390 

59

SCHEDULE I : 

CASH AND BANK BALANCES 



Cash on hand [includes cheques on hand Rs. 60 lac (Previous Year 

Rs. 5 lac) and Traveller Cheques Rs. 4 lac (Previous Year Rs. Nil)] 

Balance with Scheduled banks : 

Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

98 26 

a) In Current Account 1,572 1,333 

b) In Fixed Deposit Account [(Including interest accrued of 

Rs. 449 lac (Previous Year Rs. 1,403 lac) and margin deposit 

Rs. 7,080 lac (Previous Year Rs. 66,434 lac)] 

Balance with other banks : 

In Current Account 

a) Citibank N.A, Johannesburg South Africa 

Maximum balance outstanding during the year 

Rs. 77 lac (Previous Year Rs. 62 lac) 

b) National Bank of Kuwait Nil (*Previous Year 

Rupees 45,241) 



c) Barclays Business Premium GBP Account, UK 


Rs. 4,947 lac (Previous Year Rs. 3,128 lac) 

d) Barclays Bank - PLC - USD 


Rs. 103,934 lac (Previous Year Rs. 1 lac) 

e) HSBC CCF - Paris - Euro 



f) Deutsche Bank AG - Frankfurt - Euro 



g) Barclays Bank - PLC - GBP 



h) DBS Bank Ltd - Singapore - SGD 


Rs. 1,004 lac (Previous Year Rs. 899 lac) 

i) DBS Bank Ltd - Disbursement, Singapore - SGD 



79,176 106,265 

80,846 107,624 

18 - 

- * 

37 337 

446 1 

6 156 

510 325 

19 - 

1,004 449 

- - 

60



j) HSBC Bank - Brussels 



k) Barclays GBP Interest Account, UK 



l) Barclays Bank - PLC - Euro Account 



m) JP Morgan Chase Bank-EWR-USD 


Rs. 1,594 lac (Previous Year N.A.) 

n) JP Morgan Chase Bank-EWR-Disbursement 


Rs. 241 lac (Previous Year N.A.) 

o) ICICI Bank UK Ltd., UK 


Rs. 2,990 lac (Previous Year Rs. 2,092 lac) 

p) JP Morgan Chase Bank-YYZ-Collection 


Rs. 1,614 lac (Previous Year N.A.) 

q) HSBC Bank Ltd. Dhaka 



r) HSBC Bank Ltd. Bangkok 



s) HSBC Bank Ltd. Hongkong-Collection 



t) HSBC Bank Ltd - Hongkong-Disbursement 



u) Bank of America - USD A/c, USA 



v) ING Brussels 



Rs. in lac 

As at 31st 

March, 

2008 

Rs. in lac 

As at 31st 

March, 2007 

Rs. in lac 

307 60 

274 - 

208 74 

8 - 

- - 

37 291 

483 - 

256 - 

615 - 

28 - 

8 - 

136 162 

268 185 

4,668 2,040 

Total 85,514 109,664 

61



Rs. in lac 

As at 31st 

March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

SCHEDULE J : 

LOANS AND ADVANCES 

(Unsecured unless otherwise stated and Considered Good ) 

Loan to Subsidiary Company (Refer Note 10 (a) of 

Schedule S) 

(Maximum balance outstanding during the year Rs. 34,010 lac) 

24,465 - 

Loan - Other Company - 18,000 

Advances Recoverable in Cash or in kind or for value to be 

Received 

[Includes Secured to the extent of Nil (Previous Year 

Rs. 50,000 lac)] 

80,793 87,716 

Deposits with Airport Authorities and others 10,880 12,798 

Balances with Customs Authorities 1 4 

Advance Tax and Tax deducted at Source (Net of Provisions) 4,247 3,508 

MAT Credit Entitlement 468 468 

Total 120,854 122,494 

Note : Deposits and Advances include Rs. 3,302 lac (Previous 

Year Rs. 2,299 lac) amount placed with private limited companies 

in which the company’s director is a director / member. 

SCHEDULE K : 

CURRENT LIABILITIES 

Sundry Creditors 

Outstanding dues to Micro and Small Enterprises 

(Refer Note 23 of Schedule S) 

32 - 

Others 173,945 74,977 

173,977 74,977 

Other Current Liabilities 93,616 42,608 

Interest Accrued but not due on loans 4,299 1,045 

Forward Sales (net) (Passenger / Cargo) 98,661 51,161 

Balance with Banks - overdrawn as per books 8,339 15,461 

Unclaimed Dividend * 13 9 

Unclaimed Share Application Money * 3 3 

*Note : These figures do not include any amounts due and 

outstanding to be credited to the Investor Education and 

Protection Fund 

Total 378,908 185,264 

SCHEDULE L : 

PROVISIONS 

Wealth Tax 13 12 

Income Tax (Net of Taxes paid) - 92 


Income Tax on Dividend - 880 

Gratuity 4,723 3,603 

Leave Encashment 4,250 2,405 

Others (Refer Note 21 of Schedule S) 9,938 12,644 

Total 18,924 24,816 

62


Schedules to the Profit and Loss Account for the year ended 31st March, 2008 

Rs. In lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2007 

Rs. in lac 

SCHEDULE M : 

OPERATING REVENUE 

Passenger 804,874 645,405 

Less: Service Tax 4,578 1,621 

800,296 643,784 

Excess Baggage 2,226 3,344 

Cargo 67,933 44,124 

Less: Service Tax 3,527 3,010 

64,406 41,114 

Export Incentives (Net) 4,000 9,896 

Other Revenue 10,182 7,640 

Total 881,110 705,778 

SCHEDULE N : 

NON-OPERATING REVENUE 

Interest on Bank and Other Deposits 

[Tax Deducted at Source Rs. 418 lac 

(Previous Year Rs. 1,567 lac)] 

2,762 5,355 

Exchange difference (Net) [Refer Note 9 of Schedule S] 20,433 701 

Profit on Sale and Lease back of Aircraft and Spare Engine (Net) 31,484 21,107 

Profit on Sale of Current Investments (Net) 462 1,049 

Dividend on Current Investments 467 - 

Provision for aircraft maintenance no longer required written 

back 

2,905 2,281 

Provision for Doubtful Debts no longer required written back 129 11 

Other excess provision written back 105 168 

Other Income [including Interest on Income Tax Refund of 

Rs. 246 lac (Previous Year Nil)] 

8,294 3,681 

Total 67,041 34,353 

SCHEDULE O : 

EMPLOYEES REMUNERATION AND BENEFITS (Net) 

(Includes Managerial Remuneration - Refer Note 13 of 

Schedule S) 

Salaries, Wages, Bonus and Allowances 107,786 82,349 

Contribution to Provident Fund and ESIC 2,898 1,916 

Provision for Gratuity 1,314 1,088 

Provision for Leave Encashment 2,144 1,165 

Staff Welfare Expenses 6,376 7,294 

Total 120,518 93,812 

63



For the 

Year ended 

31st March, 

2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2007 

Rs. in lac 

Rs. In lac 

SCHEDULE P : 

SELLING AND DISTRIBUTION EXPENSES 

Computerised Reservation System Cost (Net) 21,956 17,788 

Commission 64,668 55,890 

Others 11,662 6,407 

Total 98,286 80,085 

SCHEDULE Q : 

OTHER OPERATING EXPENSES 

Aircraft Variable Rentals 18,616 20,412 

Aircraft Insurance and Other Insurance (Net) 5,956 7,221 

Landing, Navigation and Other Airport Charges 

Aircraft Maintenance (including Customs Duty and Freight, where 

applicable) 

Component Repairs, Recertification, Exchange, Consignment 

69,595 47,871 

Fees and Aircraft Overhaul 43,670 35,000 

Lease of Aircraft Spares including Engine 6,934 2,375 

Consumption of Stores and Spares (Net) [including 

items scrapped / written off Rs. 3,367 lac (Previous Year 

Rs. 1,845 lac)] 

9,500 6,875 

Provision for Spares Obsolescence 2,785 2,342 

62,889 46,592 

Inflight and Other Pax Amenities [including provision for Slow and 

Non-Moving inventory amounting to Rs. 33 lac (Previous Year Nil)] 

48,074 31,868 

Communication Cost (Net) 3,131 2,133 

Travelling and Subsistence 20,309 11,164 

Rent 5,047 3,816 

Rates and Taxes 

Repairs and Maintenance 

100 94 

- Leased Premises 269 177 

- Others 3,117 3,703 

3,386 3,880 

Electricity 1,453 938 

Commission to Directors (Refer Note 13 (ii) of Schedule S) - 43 

Director’s Sitting Fees 15 14 

Bad Debts Written off 1,380 645 

Provision for Bad and Doubtful Debts (Net) 913 121 

Loss on scrapping of Aircraft parts 120 206 

Loss on sale of Fixed Assets other than Aircraft parts (Net) 58 126 

Miscellaneous Expenses (Including Professional Fees, Audit Fees, 

Printing and Stationery, Cargo Handling and Bank Charges etc.) 

16,878 11,185 

Total 257,920 188,329 

SCHEDULE R : 

INTEREST AND FINANCE CHARGES 

- On Fixed Loan 48,850 40,892 

- Others 14,676 7,629 

63,526 48,521 

Less : Capitalised during the Year 14,251 24,506 

49,275 24,015 

Total 49,275 24,015 

64

SCHEDULE ‘S’ 

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS 

I. SIGNIFICANT ACCOUNTING POLICIES : 


A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS : 

The financial statements are prepared under the historical cost convention, except certain Fixed Assets 

which are revalued, in accordance with the generally accepted accounting principles in India, the provisions 

of the Companies Act, 1956 and the applicable accounting standards. 

B. USE OF ESTIMATES : 

The presentation 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 recognised in the period in 

which the results are known / materialised. 

C. REVENUE RECOGNITION : 

Passenger and Cargo income is recognised on flown basis, i.e. when the service is rendered. 

The sale of tickets / airway bills (sales net of refunds) are initially credited to the “Forward Sales Account”. 

Income recognised as indicated above is reduced from the Forward Sales Account and the balance net of 

commission thereon is shown under Current Liabilities. 

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. EXPORT INCENTIVE : 

Export incentive available under prevalent scheme is accrued in the year when the right to receive credit 

as per the terms of the scheme is established in respect of exports made and are accounted to the extent 

there is no significant uncertainty about the measurability and ultimate utilization of such duty credit. 

E. COMMISSION : 

As in the case of revenue, the commission paid / payable on sales including any over-riding commission is 

recognised only on flown basis. 

F. EMPLOYEE BENEFITS : 

a) Defined Contribution plan : Company’s contribution paid / payable for the year to defined 

contribution retirement benefit schemes are charged to Profit and Loss Account. 

b) Defined Benefit and Other Long Term Benefit plan : Company’s liabilities towards defined benefit 

plans and other long term benefit plans are determined using 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 recognised in the Profit and Loss account in the period of occurrence 

of such gains and losses. Past service cost is recognised immediately to the extent of benefits are 

vested, otherwise it is amortised on straight-line basis over the remaining average period until the 

benefits become vested. 

The employee benefit obligation recognised in the balance sheet represents the present value of the 

defined benefit obligation as adjusted for unrecognised 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 recognised undiscounted during the period employee renders 

services. 

65

G. FIXED ASSETS : 

a) TANGIBLE ASSETS : 


Owned tangible fixed assets are stated at cost and includes amount added on revaluation 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. 

The cost of improvements to Leased Properties as well as customs duty / modification cost incurred 

on aircraft taken on operating lease have been capitalised and disclosed appropriately. 

b) INTANGIBLE ASSETS : 

Intangible assets are recognized only if 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 : 

1. Operating Lease : Rentals are expensed with reference to the Lease Term and other 

considerations. 

2. Finance Lease / Hire Purchase : The lower of the fair value of the assets and the present 

value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount 

shown as Lease Liability (Outstanding Hire Purchase / Finance Lease Instalments). The principal 

component of the lease rentals is adjusted against the leased liability and interest component is 

charged to the Profit and Loss Account. 

H. 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 Profit and Loss Account in the year in which an asset is identified as impaired. 

The impairment loss recognised in prior accounting periods is reversed if there has been a change in the 

estimate of recoverable amount. 

I. DEPRECIATION / AMORTISATION : 

a) Depreciation on tangible fixed assets has been provided at the rates and in the manner prescribed 

under the Schedule XIV to the Companies Act, 1956 on Written Down Value method, other than 

Wide Body aircraft which are depreciated on Straight Line method and expenditure incurred on 

improvements of assets acquired on operating lease are written off evenly over the balance period of 

the lease. Premium on leasehold land is amortised over the period of lease. 

b) On revalued assets, depreciation is charged over the residual life and the additional charge of 

depreciation is withdrawn from the Revaluation Reserve. 

c) Intangible assets are amortised on straight line basis as follows. 

1. Landing Rights acquired are amortised over a period not exceeding 20 years. Amortization 

period exceeding 10 years is applied considering industry experience and expected asset 

usage. 

2. Trademarks are amortised over 10 years. 

3. Computer Software is amortised over a period not exceeding 36 months. 

J. INVESTMENTS : 

Current Investments are carried at lower of cost and quoted / fair value. Long Term Investments are stated 

at cost. Provision for diminution in the value of long term investments is made only if such a decline is 

other than temporary in the opinion of the management. 

66

K. 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 recognised as an expense in the period in which 

they are incurred. 

L. FOREIGN CURRENCY TRANSACTIONS / TRANSLATION : 

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing 

at the time of the transaction. 

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. 

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 Profit and Loss Account. 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 amortised as income / expense 

over the life of contract. 

c) Any exchange gain or loss on account of exchange differences either on settlement or on translation 

is recognized in the Profit and Loss Account. 

M. INVENTORIES : 

Inventories are valued at cost or Net Realisable 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 aircraft derived from Schedule XIV of the 

Companies Act, 1956 and also provisioning for non-moving / slow moving items. 

N. AIRCRAFT MAINTENANCE AND REPAIRS COST : 

Aircraft Maintenance, Auxiliary Power Unit (APU) and Engine maintenance and repair costs are expensed 

as incurred except where such overhaul cost in respect of Engines / APU are covered by third party 

maintenance agreement and these are accounted in accordance therewith. 

O. 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 recognised and carried forward only to the extent that there is a reasonable / 

virtual certainty, as the case may be, that the asset will be realised in future. 

Fringe Benefit Tax is recognized in accordance with the relevant provisions of the Income Tax Act, 1961 and 

the Guidance note on Fringe Benefit Tax issued by the Institute of Chartered Accountants of India (ICAI). 

P. SHARE ISSUE EXPENSES : 

Issue Expenses are adjusted against the Share Premium Account. 

Q. SALE AND LEASE BACK TRANSACTION : 

Profit or loss on sale and lease back arrangements resulting in operating leases are recognized, in case the 

transaction is established at fair value, else the excess over the fair value is deferred and amortized over 

the period for which the asset is expected to be used. 

67


R. ACCOUNTING FOR DERIVATIVE INSTRUMENTS : 

Interest Rate Swaps, Currency Option, Currency Swaps and other products, in the nature of firm commitment 

and highly probable forecast transactions, entered into by the Company for hedging the risks of foreign 

currency exposure (including interest rate risk) are accounted based on the principles of prudence as 

enunciated in Accounting Standard 1(AS 1) “Disclosure of Accounting Policies”. 

S. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS : 

Provisions involving a substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent Assets are neither 

recognised nor disclosed in the financial statements. 

II. NOTES TO ACCOUNTS : 

1. Estimated amount of Contracts remaining to be executed on capital account net of advances, not provided 

for: 

Tangible Assets Rs. 1,360,679 lac (Previous Year - Rs. 648,508 lac) 

2. CONTINGENT LIABILITY : 

a) Unprovided Income Tax demands which are under appeals Nil [Previous Year Nil (Rupees 5,387/-)]. 

b) Unprovided Service Tax demands which are under appeals Rs. 109 lac (Previous Year Rs. 310 lac). 

c) Unprovided Sales Tax demands which are under appeals Rs. 6 lac (Previous Year Rs. 7 lac). 

d) Unprovided claims against the Company, pending Civil and Consumer suits of Rs. 1,056 lac (Previous 

Year Rs. 1,140 lac). 

e) Unprovided Inland Air Travel Tax demands which are under appeal Rs. 473 lac (Previous Year 

Rs. 473 lac) against which the amount of Rs. 117 lac (Previous Year Rs. 117 lac) is deposited with 

the Authorities. 

f) Unprovided claims for Octroi amounts to Rs. 2,899 lac (Previous Year Rs. 2,899 lac). 

g) Disputed claims against the company towards Ground Handling charges amount to Rs. 4,564 lac 

(Previous Year Rs. 3,836 lac). 

h) Letters of Credit outstanding are Rs. 57,181 lac (Previous Year Rs. 37,920 lac) and Bank Guarantees 

outstanding are Rs. 49,555 lac (Previous Year Rs. 182,432 lac). 

i) Rs. 55,120 lac Corporate Guarantee given to Bank and Financial Institution against credit facilities 

extended to Subsidiary Company. 

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. 

3. Aircraft Lease Rentals are stated net of sub-lease rentals of Rs. 1,229 lac (Previous Year Rs. 1,740 lac). 

4. During the Year ended 31st March, 2008, the Company has taken delivery of Nineteen aircraft, which 

includes sixteen Wide Body aircraft. These aircraft are different from the Narrow Body aircraft in terms of 

technology and other efficiency parameters based on long haul operations and are being used primarily on 

International routes as compared to Narrow Body aircraft which are mostly deployed on Domestic routes. 

In view of this, such Wide Body aircraft are depreciated at the rates prescribed as per Schedule XIV of the 

Companies Act, 1956 on Straight Line method as against Written Down Value method followed for Narrow 

Body aircraft held by the Company. 

5. During the year, in order to reflect the current reinstatement cost / market value, the Company revalued 

the Leasehold Land and Narrow Body aircraft (including aircraft revalued in the year ended 31st March, 

2002) owned by the Company as at 31st March, 2008. Such revaluation for aircraft has been carried out 

by International Aircraft valuers and for Leasehold Land by a registered valuer considering the present 

68


market / reinstatement value and considering the book value of such assets as at 31st March, 2008. 

Accordingly, the resultant appreciation in respect of land of Rs. 148,119 lac and in respect of aircraft of 

Rs. 118,133 lac has been added to respective assets and the aggregating amount of Rs. 266,252 lac has 

been credited to Revaluation Reserves. Since the valuation of the aforesaid assets has been carried out as 

on 31st March, 2008, there is no additional charge on account of depreciation on the assets so revalued. 

Depreciation includes Rs. 1,563 lac (Previous Year Rs. 2,958 lac) on the aircraft revalued in the earlier year, 

which has been withdrawn from the Revaluation Reserve as per the accounting policy followed. 

6. During the year the Company purchased and sold Current Investments in Debt Schemes of various Mutual 

Funds as detailed below : 

Mutual Fund NO. OF UNITS 

(in lac) 

FACE VALUE 

Rupees 

COST OF UNITS 

(in lac) 

SBI Mutual Fund 2,014 10 29,720 

Birla Mutual Fund 1,511 10 20,002 

ING Vysya Mutual Fund 1,849 10 20,002 

Principal Mutual Fund 1,663 10 20,001 

Prudential Mutual Fund 331 10 4,224 

Tata Mutual Fund 800 10 18,002 

Standard Chartered Mutual Fund 89 1,000 102,401 

Barclays Global Investors Mutual Fund 

- EURO 53 1 Euro 3,048 

- USD 9,214 1 USD 367,886 

- GBP 365 1 GBP 33,614 

7. Prior Period credits included in the determination of the net profit are towards Other Revenue Rs. Nil 

(Previous Year Rs. 65 lac). 

8. Disclosure on Derivatives 

a) The Company has entered into various derivative contracts viz. interest rate swaps (IRS), currency 

options, currency swaps, etc in order to hedge and manage its foreign currency exposures towards 

future export receivables and foreign currency borrowings. Such derivative contracts which are in the 

nature of firm commitments and highly probable forecast transactions are entered into by the Company 

for hedging purposes only and does not use the same for trading or speculation purposes. 

Nominal amounts of derivatives contracts entered into by the Company and outstanding as on 

31st March, 2008 amount of Rs. 247,453 lac (Previous Year Rs. 319,686 lac). The category-wise 

break-up thereof is as under: 

Particulars 

No. of 

Contracts 

2007-08 2006-07 

Amount No. of 

Contracts 

Amount (Rs. in lac) 

Amount 

Interest Rate Swaps 5 73,801 9 172,279 

Currency Options 9 107,993 - - 

IRS cum Currency Options 1 41,031 - - 

Currency Swaps 1 9,628 - - 

IRS cum Currency Swaps 2 15,000 14 147,407 

69


The Company, during the year based on the announcement of The Institute of Chartered Accountants 

of India “Accounting for Derivatives’’ along with the principles of prudence as enunciated in 

Accounting Standard (AS-1) “Disclosure of Accounting Polices” has accounted for outstanding 

derivative contracts at fair values as at the balance sheet date. 

On that basis, the fair value of the derivative instruments as at 31st March, 2008 aggregating to Rs. 

6,945 lac has been debited to the Profit and Loss Account. The charge on account of derivative losses 

has been computed on the basis of MTM values based on the report of independent valuer and the 

confirmations from the counter parties are still awaited. However, the Company doesn’t expect any 

material variation in this respect on receipt of such confirmations. 

b) The foreign currency exposures that have not been hedged by any derivative instrument or otherwise 

as on 31st March, 2008 are as follows: 

Particulars INR Equivalent 

(Rs. in lac) 

Current Assets 87,858 

(39,393) 

Current Liabilities 118,724 

(53,541) 

Interest accrued but not due on Loans 3,521 

(870) 

Long Term Loans for purchase of Aircraft* 827,763 

(135,829) 

Loans for Pre Delivery Payment** 47,081 

(174,532) 

Other Loans payable 44,981 

(Figures in brackets indicate 31st March, 2007 figures) 

(41,267) 

*Includes Loans payable after 5 years Rs. 506,863 lac (Previous Year Rs. 68,749 lac) 

* * Loans to be returned on delivery of aircraft in Foreign Currency. 

USD Equivalent 

(USD in lac) 

2,190 

(906) 

2,959 

(1,232) 

88 

(20) 

2,063,218 

(3,125) 

1,174 

(4,015) 

1,121 

9. Hitherto any gain or loss on account of exchange difference either on settlement or on translation of 

foreign currency loans in respect of Fixed Assets acquired from outside India was adjusted to the carrying 

cost of such assets. During the current year, in accordance with the revised Accounting Standard (AS-11) 

on “Effects of Changes in Foreign Exchange Rates” notified in the Companies (Accounting Standards) 

Rules 2006, net exchange gain of Rs. 23,293 lac has been credited to the Profit and Loss Account. 

10. a) On 20th April, 2007, the Company acquired 100% shares (276,115,409 Equity Shares of Rs. 10/- 

each and 340,000,000 Non-Cummulative fully convertible Preference Shares of Rs. 10/- each) of 

Sahara Airlines Limited (SAL) from selling shareholders of SAL towards its Assets and Liabilities 

(excluding certain assets and liabilities not taken over) as per Share Purchase agreement for a lumpsum 

price of Rs. 146,500 lac, out of which, Rs. 91,500 lac had been already paid on or before 

the acquisition date. Out of the balance of Rs. 55,000 lac which are payable in four interest free 

annual equal installments commencing on or before 30th March, 2008, the first annual installment 

of Rs. 13,750 lac has been paid. Consequently, SAL (now known as Jet Lite (India) Limited) is 100% 

subsidiary of the Company effective from 20th April, 2007. 

(949) 

In earlier year, the Company had provided an interest free loan of Rs. 18,000 lac and during the 

year further provided Rs. 6,465 lacs (Net) to Jet Lite (India) Limited (erstwhile SAL) for the smooth 

running of its operations and the total aggregated amount outstanding as on 31st March, 2008 is 

Rs. 24,465 lac. 

b) During the year, the Company to enable Jet Lite (India) Limited to pay installments of demand of 

income tax in respect of earlier years paid Rs. 3,708 lac on behalf of the selling shareholders of SAL 

since the liability in respect of income tax for the earlier years belongs to selling shareholders of 

SAL. The Company also communicated this fact to selling shareholders vide its communication letter 

70


dated 26th March, 2008 and in the absence of reimbursement has adjusted the same towards the 

first installment due. Accordingly, the balance of first installment of Rs. 10,042 lac was paid on 30th 

March, 2008 and remaining installments payable subsequently in accordance with the consent terms 

of Rs. 41,250 lac has been disclosed under the separate head “Deferred payment liability towards 

Investments in wholly owned Subsidiary Company”. 

11. EMPLOYEE BENEFITS 

a) Defined contribution plan 

The Company makes contributions at a specified percentage of payroll cost towards Employees 

Provident Fund (EPF) for qualifying employees. 

The Company recognised Rs. 2,738 lac (Previous year Rs. 1,818 lac) for provident fund contributions 

in the profit and loss account. 

b) Defined benefit plans 

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

employees. 

The gratuity 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 

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 were carried out at 31st March, 2008 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 recognised in the 

Company’s financial statements as at 31st March, 2008: 

Sr. 

No 


Particulars Gratuity (Non-Funded) 

As on 

31.03.2008 

As on 

31.03.2007 

I) Reconciliation of projected benefit obligations (PBO) 

– defined benefit obligation : 

PBO at the beginning of the year 3,603 2,690 

Current Service Cost 544 495 

Interest Cost 288 202 

Actuarial (gain) / losses 482 391 

Benefits paid (194) (175) 

PBO at end of the year 4,723 3,603 

II) Net cost for the year ended 31st March, 2008 : 

Current Service cost 544 495 

Interest cost 288 202 

Actuarial (gain) / losses 482 391 

Net cost 1,314 1,088 

III) Assumption used in accounting for the gratuity 

plan: 

Discount rate (%) 8.00 % 8.00 % 

Salary escalation rate (%) 7.50 % 7.50 % 

71

c) Other Long Term Employee Benefit 


The Leave Encashment charge for the year ended 31st March, 2008, based on actuarial valuation 

carried out using the Projected Accrued Benefit Method, amounting to Rs. 2,144 lac (Previous Year 

Rs. 1,165 lac) has been recognized in the Profit and Loss Account. 

12. PAYMENT TO AUDITORS (Including Service Tax) : 


Particulars 2007-08 2006-07 

(a) As Audit Fees 

- Statutory Audit 112 126 

- Tax Audit 6 11 

(b) As Advisor or in any other capacity in respect of: 

Tax Matters 56 57 

(c) In any other manner 

For other services such as quarterly limited reviews, 

certificates, etc 

59 15 

(d) For reimbursement of expenses 1 1 

Total 234 210 

Payments for other services include Rupees 34,870/- (Previous Year Rs. 3 lac) to a firm where partners 

of one of the Statutory Auditors are partners 

13. MANAGERIAL REMUNERATION : 

(i) Details of Managerial Remuneration : 


Particulars 2007-08 2006-07 

(i) Salary and Allowances* 48 42 

(ii) Contribution to Provident Fund and Provision for 

Gratuity* 

5 7 

(iii) Perquisites* Nil 12 

(iv) Commission to Non-Exécutive Directors # Nil 43 

(v) Sitting Fees # 15 14 

Total 68 118 

* Included under the head “Employees Remuneration and Benefits” (Refer Schedule - O) 

# Disclosed under the head “Other Operating Expense” (Refer Schedule - Q) 

72


(ii) Computation of Profit under Section 349 of the Companies Act, 1956 


Particulars 2007-08 2006-07 

(Loss) / Profit before taxation as per Profit and 

Loss Account 

Add : 

(41,259) 5,136 

Managerial Remuneration 68 118 

Provision for Doubtful Debts 913 981 121 

Less : 

(40,278) 5,375 

Profit on sale of Investments 462 1,049 

Provision for Doubtful Debts no longer required 129 11 

Other excess provision written back 105 696 - 

Profit for the purpose of Directors’ Commission (40,974) 4,315 

Commission to Non-Executive Directors subject to a 

ceiling of 1% of Profits as computed above 

Nil 43 

Commission payable as per Shareholders’ approval Nil 43 

14. The Company has equity and preference investments aggregating to Rs. 146,500 lac in Jet Lite (India) 

Limited, a wholly owned Subsidiary, and an amount of Rs. 24,465 lac advanced on account of interest 

free loans as on 31st March, 2008. The said Subsidiary during the year ended 31st March, 2008, suffered 

losses which resulted in increase in accumulated losses exceeding the net worth of the Subsidiary 

Company. The said Subsidiary Company was acquired by the Company during the year and the Company 

has plans to support growth plans of the Subsidiary Company resulting into increase in its revenue and 

consequently profitability and net worth. Moreover, a reputed valuer have recently valued the equity 

interest in the Subsidiary based on its assets and growth model, etc., which has disclosed the equity 

values of the Company’s investment far in excess of the total amount invested and other dues to the 

Company. Accordingly its financial statements have been prepared on “Going Concern” basis. The said 

Subsidiary Company is confident of achieving the target and in the opinion of the Company, no provision 

is considered necessary at this stage in respect of its investments and loans outstanding from the said 

Subsidiary Company at the year end. 

15. Additional information pursuant to paragraphs 3, 4C and 4D of Part II of Schedule VI of the Companies 

Act, 1956. (As applicable) 

15.1 Value of imports calculated on CIF Basis: 


Particulars 2007-08 2006-07 

Components and Spares 24,528 12,628 

Capital Goods 861,123 140,871 

73

15.2 Earnings in Foreign Exchange: 



Particulars 2007-08 2006-07 

Passenger and Cargo Revenue 204,207 139,428 

Sale of Aircraft / Engine 54,449 46,616 

Interest on Bank Account 538 94 

Other Income 474 161 

15.3 Expenditure in Foreign Currency: 


Particulars 2007-08 2006-07 

Employee Remuneration and Benefits 4,279 8,356 


Selling and Distribution Expenses 14,849 14,919 

Other Operating Expenses 142,379 86,930 

Aircraft Lease Rentals 72,287 84,516 


Software / Landing Rights 823 2,681 

15.4 Remittance in foreign currency on account of dividend: 

The Company has paid dividend in respect of shares held by Non Residents on repatriation basis. This 

inter-alia includes portfolio investment and direct investment, where the amount is also credited to 

Non Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency 

cannot be ascertained. The total amount remittable in this respect is given herein below: 


Particulars 2007-08 2006-07 

Number of Non Resident Shareholders to whom remittance 

was made 

1 1 

Number of Equity Shares held by them 69,057,210 69,057,210 

Amount of Dividend paid (Rs. In Lac) 4,144 4,144 

Year to which dividend relates 2006-07 2005-06 

74

15.5 Value of Components and Spare Parts Consumed : 



2007-08 % 2006-07 % 

Imported 8,818 93 6,287 91 

Indigenous 682 7 588 9 

Total 9,500 100 6,875 100 

16. SEGMENT REPORTING : 

a) Primary Segment: Geographical Segment 

The Company, considering its higher level of international operations and present 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. 


Particulars Domestic International Total 

Passenger and Cargo Revenue (Including 

Excess Baggage) 

562,172 

(552,541) 

Segment result 297,426 

(293,191) 

304,756 

(135,701) 

114,497 

(56,024) 

866,928 

(688,242) 

411,923 

(349,215) 

Less: Unallocable expenses 485,130 

(371,953) 

Add: Unallocable revenue 81,223 

(51,889) 

(-)Loss / Profit before Interest and tax 8,016 

(29,151) 

Less: Interest and Finance Charges 49,275 

(24,015) 

(-)Loss / Profit before tax (-)41,259 

(5,136) 

Less : Tax (-) Benefits / Expenses (-)15,953 

(2,342) 

(-)Loss / Profit after tax (-)25,306 

(2,794) 


75

Sr. 

No. 


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” issued by the Institute of Chartered 

Accountants of India. 

17. RELATED PARTY TRANSACTIONS : 

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

related party as defined in the Accounting Standard are given below: 

(i) List of Related Parties with whom transactions have taken place and Relationships : 

No. Name of the related party Nature of relationship 

(1) Tail Winds Limited Holding Company 

(2) Jet Lite (India) Limited Subsidiary Company (Control exists) 

(3) Naresh Goyal Controlling Shareholder of Holding Company 

(4) Anita Goyal Relative of controlling shareholder of 

Holding Company 

(5) Saroj K Datta Key Managerial Personnel 

(6) Jetair Private Limited 

(7) Jet Enterprises Private Limited 

(8) Jet Airways LLC 

(9) Jet Airways of India Inc. 

(10) India Jetairways Pty Limited 

(11) Trans Continental e Services Private Limited 

(12) Jet Airways Europe Services N.V. 

Enterprises over which controlling 

shareholder of Holding Company and his 

relatives are able to exercise significant 

influence directly or indirectly 

(ii) Transactions during the year ended 31st March, 2008 and balances with related parties : 

Nature of 

Transactions 

Holding 

Co. 

Subsidiary 

Company* 

Controlling 

Shareholder 

of Holding 

Company 

Relative of 

controlling 

shareholder 

of Holding 

Company 

(A) Remuneration 146 

(127) 

(B) Sitting Fees 1 

(1) 

(C) Commission paid 

to Directors 

(D) Agency 

Commission 

Nil 

(3) 

Key 

Managerial 

Personnel 

53 

(60) 

Nil 

(1) 


Enterprises Total 

over which 

controlling 

shareholder 

is able to 

exercise 

significant 

influence 

199 

(187) 

12,723 

(14,413) 

1 

(2) 

Nil 

(3) 

12,723 

(14,413) 

76

Sr. 

No. 

Nature of 

Transactions 

Holding 

Co. 

Subsidiary 

Company* 


Controlling 

Shareholder 

of Holding 

Company 

Relative of 

controlling 

shareholder 

of Holding 

Company 

Key 

Managerial 

Personnel 


Enterprises Total 

over which 

controlling 

shareholder 

is able to 

exercise 

significant 

influence 

(E) Rent paid 217 

(106) 

(F) Expenses 

Reimbursed 

(net) (Staff 

Costs / 

Communication 

Costs, Rent) 

(G) Other Selling & 

Distribution Cost 

(H) Excess Provision 

written back 

421 3,780 

(-5,525) 

1,852 

(1,431) 

Nil 

(168) 

(I) Service Charges 24 

(Nil) 

(J) Investments 

in Equity and 

Preference 

Shares 

(K) Deposits & 

Advance 

-Deposit for 

Leased Premises 

217 

(106) 

4,201 

(-5,525) 

1,852 

(1,431) 

Nil 

(168) 

24 

(Nil) 

146,500 146,500 

2,543 

(2,299) 

-Other Deposits 225 

(Nil) 

2,543 

(2,299) 

(L) Loans 24,465 24,465 

(M) Equipment Hire 

(net) 

225 

(Nil) 

(-)1,027 (-)1,027 

(N) Sundry Creditors 3,450 

(1,135) 

(O) Sundry Debtors 88 

(122) 

(P) Share Capital 6,907 

(6,907) 

(Q) Dividend Paid 4,144 

(4,144) 

(R) Corporate 

Guarantee given 

1 

(1) 

0.60 

(0.60) 

0.1 

(Nil) 

0.06 

(Nil) 

0.06 

(0.06) 

0.04 

(0.04) 

3,450 

(1,135) 

88 

(122) 

6,908 

(6,908) 

4,145 

(4,145) 

55,120 55,120 


*Figures for the previous year not applicable as it became subsidiary during the year 

77


(iii) Statement of Material Transactions during the year and balances with related parties: 

a) Subsidiary Company 

Jet Lite (India) Limited 


– Equipment Hire Charges (-)771 

– Other Hire Charges received (-)256 

– Interest free Loan 24,465 

– Reimbursement of Expenses 421 

– Investments in Equity and Preference Shares 146,500 

– Corporate Guarantee given 55,120 

(Figures for the previous year not given as it became subsidiary during the year) 

b) Remuneration include remuneration to Mrs. Anita Goyal, relative of controlling shareholder 

of Holding Company, Rs. 146 lac (Previous Year Rs. 127 lac) and to Mr. Saroj K. Datta, 

Key Managerial Personnel Rs. 53 lac (Previous Year Rs. 60 lac) 

c) Enterprises over which controlling shareholder of Holding Company and his relatives are able to 

exercise significant influence: 


Jetair Private Limited 

– Agency Commission 5,328 

(10,403) 

– Rent Paid 157 

(46) 

– Expenses Reimbursed (net) 

(Staff Costs / Communication Costs, Rent) 

1,509 

(-5,617) 

– Deposits for Leased Premises– 343 

(299) 

– Sundry Creditors 944 

(507) 

– Sundry Debtors 88 

(122) 


Jet Airways LLC 



(3,309) 

– Reimbursement of Expenses 


76 

(55) 

– Sundry Creditors 1,406 

(332) 


78


Trans Continental e Services Private Limited 


– Other Selling and Distribution Cost 1,852 

(1,431) 

– Other Deposit 225 

(Nil) 


(101) 


Jet Enterprises Private Limited 



(60) 

– Deposits for Leased Premises 2,200 

(2,000) 

– Sundry Creditors Nil 

(Nil) 


Jet Airways of India Inc. 



(658) 



814 

(37) 

– Excess Provision written back Nil 

(148) 


(97) 


India Jetairways Pty Limited 


– Agency Commission 37 

(43) 

– Excess Provision written back Nil 

(20) 


(6) 


79


Jet Airways Europe Services N.V. 




1,381 

– Service Charges 24 


(Previous Year’s figures are not given as incorporated during the year) 

18. The Company has entered into Finance and Operating Lease agreements. As required under the Accounting 

Standard 19 on ‘Leases’, the future minimum lease payments on account of each type of lease are as 

follows: - 

a) Finance Leases / Hire Purchase 

Particulars Future Minimum 

Lease Payments 

As at 

31st March ’08 

Aircraft 

Less than 1 year 103,362 

(41,995) 

Between 1 and 5 years 438,913 

(160,072) 

More than 5 years 591,856 

(120,945) 

Grand Total 1,134,131 

(323,012) 

(Figures in brackets indicates 31st March, 2007 figures) 

Present Value of 

Future Minimum 


As at 


69,438 

(25,481) 

326,992 

(113,394) 

525,787 

(104,350) 

922,217 

(243,225) 


Finance Charges 

33,924 

(16,514) 

111,921 

(46,678) 

66,069 

(16,596) 

211,914 

(79,788) 

The salient features of a Hire Purchase / Finance Lease Agreement are : 

• Option to purchase the aircraft either during the term of the Hire Purchase on payment of the 

outstanding Principal amount or at the end of the Hire Purchase term on payment of a nominal 

option price. 

• In the event of default, the Hirer / Lessee is responsible for payment of all costs of the Owner 

including the financing cost, and other associated costs. Further a right of repossession is 

available to the Owner / Lessor. 

• The Hirer / Lessee is responsible for maintaining the aircraft as well as insuring the same. 

• In the case of Finance Lease the property passes to the Lessee, on the payment of a nominal 

option price at the end of the term. 

b) Operating Leases 

i) The Company has taken various residential / commercial premises and amenities under 

cancelable and non-cancelable operating leases. These lease agreements are normally renewed 

on expiry. 

80


The future minimum lease payments in respect of non-cancelable period which, as at 31st 

March, 2008 are as follows: 


Particulars Total Lease 

Payments 

Commercial Premises and Amenities 


(Nil) 


(Nil) 

Grand Total 2,756 

(Nil) 


ii) The Company has taken on operating lease aircraft & spare engines the future minimum lease 

payments in respect of which, as at 31st March, 2008 are as follows : 



Payments 

Aircraft and Spare Engines 


(55,601) 


(138,062) 


(11,183) 


(204,846) 

Aircraft given on sub – lease 

Less than 1 year (-)250 

(-1,674) 

Between 1 and 5 years NIL 

(-549) 

More than 5 years NIL 

(NIL) 

Grand Total (-)250 

(-2,223) 


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. 

81


• 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. 

• The leases are non-cancellable. 

iii) The lease rental expense recognised: Rs. 87,420 lac (Previous Year Rs. 91,667 lac), it includes 

Rs. 3,597 lac (Previous Year Rs. 3,840 lac) recognized as lease rental expenses on account of 

sale and lease back of aircraft. 

19. EARNINGS PER SHARE (EPS) : 

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

Per Share” is as under: 


Particulars 2007-08 2006-07 

Net (Loss) / Profit after tax (25,306) 2,794 

(Loss) / Profit attributable to Equity Shareholders (A) (25,306) 2,794 

No. of Equity Shares outstanding during the year (B) 86,334,011 86,334,011 

Nominal Value of Equity Shares (Rupees) 10 10 

Basic and Diluted EPS (Rupees) (C= A/B) (29.31) 3.24 

20. The Deferred Tax Liability as at 31st March 2008 comprises of the following: 


Particulars 2007-08 2006-07 

Deferred Tax Liability 

Related to Fixed Assets 38,346 36,891 

Deferred Tax Asset 

Unabsorbed Depreciation 17,658 1,182 

Other Disallowances under Income Tax Act, 1961 4,665 2,603 

Provision for Deferred Tax Liability (Net) 16,023 33,106 

Deferred Tax Asset on account of unabsorbed tax depreciation has been recognized as it can be realised 

against the reversal of Deferred Tax Liability on account of Depreciation. 

21. As per (AS) 29, Provisions, Contingent Liabilities and Contingent Assets, given below are movements in 

provision for Frequent Flyer Programme, Redelivery of Aircraft, Aircraft Maintenance Costs and Engine 

Repairs Costs. 

a) Frequent Flyer Programme : 

The Company has 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. 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. 

82


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

Programme is accounted considering the members’ accumulated mileage on an incremental cost 

basis. The movement in the provision during the year is as under: 


Particulars 2007-08 2006-07 

Opening Balance 1,651 1,635 

Add: - Additional Provisions during the year 1,803 359 

Less: - Amounts used during the year 505 343 

Less: - Unused Amounts reversed during the year - - 

Closing Balance 2,949 1,651 

b) 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. 


Particulars 2007-08 2006-07 


Add: - Additional Provisions during the year* 610 717 

Less: - Amounts used during the year 1,146 - 

Less: - Unused Amounts reversed during the year - - 


* Additions include adjustment of Rs. 230 lac (Previous Year Rs.168 lac) on account of exchange 

fluctuation 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 as under: 

Year Aircraft Amount (Rs. in lac) 

2008-09 6 579 

2009-10 5 291 

2010-11 4 278 

2011-12 1 50 

2012-13 17 793 

2014-15 3 52 

2015-16 8 72 

Total 2,115 

83

c) Aircraft Maintenance Costs : 


Certain heavy maintenance checks including overhaul of Auxiliary Power Units need to be performed 

at specified intervals as enforced by the Director General of Civil Aviation in accordance with the 

Maintenance Program Document laid down by the manufacturers. The movements in the provisions 

for such costs are as under: 


Particulars 2007-08 2006-07 


Add: - Adjustments during the year* (122) 26 

Less: - Amounts used during the year 1,031 2,026 

Less: - Unused Amounts reversed during the year 2,028 596 


* Adjustments during the year represents exchange fluctuation impact consequent to 

restatement of liabilities denominated in foreign currency. 

d) Engine Repairs Cost : 

The aircraft engines have to undergo shop visits for overhaul and maintenance at specified intervals 

as per the Maintenance Program Document. The same was provided for on the basis of hours flown 

at a pre-determined rate. 


Particulars 2007-08 2006-07 

Opening Balance 943 2,421 

Add: - Adjustments during the year* (21) 142 

Less: - Amounts used during the year - 412 

Less: - Unused Amounts reversed during the year 265 1,208 

Closing Balance 657 943 



22. Pending resolution of representation made by the Board of Airline Representatives in India “BAR (I)” to 

the statutory authorities regarding non levy of Fringe Benefit Tax on free / concessional tickets issued by 

the airline companies, no provision for the same is made cumulatively in the books of accounts amounting 

to Rs 1,134 lac (Previous Year Rs. 596 lac). 

23. 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 

84


determined on the basis of intimation received from suppliers regarding their status and the required 

disclosures are given below: 


Particulars 2007-08 2006-07 

a Principal amount remaining unpaid as on 31st March, 

2008 

32 - 

b Interest due thereon as on 31st March, 2008 - - 

c Interest paid by the Company in terms of Section 16 of 

Micro, Small and Medium Enterprises Development Act, 

2006, along with the amount of the payment made to the 

supplier beyond the appointed day during the year. 

d Interest due and payable for the period of delay in making 

payment (which have been paid but beyond the appointed 

day during the year) but without adding the interest 

specified under Micro, Small and Medium Enterprises 

Development Act, 2006 

e Interest accrued and remaining unpaid as at 31st March, 

2008 

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. 

- - 

- - 

- - 

- - 

24. Comparative financial information (i.e. amounts and other disclosures for the previous year presented 

above as corresponding figures), is included as an integral part of the current year’s financial statements, 

and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of 

the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the 

current year. 

Signatures to Schedules ‘A’ to ‘S’ 




Director 







85


BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE 

I) Registration Details 

Registration No.- 6 6 2 1 3 State Code - 1 1 

Balance-sheet Date 3 1 0 3 2 0 0 8 

Date Month Year 

II) Capital Raised during the year (Amount in Rs. Thousands) 

Public Issue - N I L Rights Issue - N I L 

( N I L ) ( N I L ) 

Bonus Issue - N I L Private Placement N I L 

( N I L ) ( N I L ) 

III) Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) 

Total Liabilities 1 6 7 2 6 9 4 6 8 Total Assets 1 6 7 2 6 9 4 6 8 

( 8 6 2 4 6 2 8 9 ) ( 8 6 2 4 6 2 8 9 ) 

Sources of Funds - 

Paid-up Capital 8 6 3 3 4 0 Reserves and 

Surplus 

Subordinated Debt N I L 

4 4 6 5 3 4 5 1 

( 8 6 3 3 4 0 ) ( 2 1 5 0 9 4 0 5 ) 

( N I L ) 

Secured Loans 1 2 0 0 2 4 7 9 Unsecured 

Loan 

1 0 4 0 2 2 8 8 6 

( 7 4 2 4 5 5 3 ) ( 5 3 1 3 8 4 1 5 ) 

Deferred Tax Liability 1 6 0 2 3 1 2 Deferred 

Payment 

4 1 2 5 0 0 0 

( 3 3 1 0 5 7 6 ) ( N I L ) 

Application of Funds - 

Net Fixed Assets 1 5 3 0 7 4 5 1 1 Investment 1 4 7 5 3 5 2 2 

( 7 2 9 2 0 0 9 5 ) ( 6 8 9 3 1 6 ) 

86

Net Current Assets ( - ) 5 5 8 5 6 5 Misc. 

Expenditure 

Accumulated 

Losses 


N I L 

( 1 2 6 3 7 0 7 8 ) ( N I L ) 

N I L 

( N I L ) 

IV. Performanc of Company (Amount in Rs. Thousands) 

Turnover 9 4 8 1 5 0 6 3 Total 

Expenditure 

Profit /Loss Before 

Tax 

Earning per share in 

Rupees 

9 8 9 4 0 8 3 0 

( 7 4 0 1 3 0 7 9 ) ( 7 3 4 9 9 4 8 4 ) 

( - ) 4 1 2 5 7 6 7 Profit / Loss 

After Tax 

(Fugures in brackets indiates 31st March, 2007 figures) 

( - ) 2 5 3 0 4 3 1 

( 5 1 3 5 9 4 ) ( 2 7 9 4 1 4 ) 

( - ) 2 9 . 3 1 Dividend Rate @ % 

Equity N I L 

( 3 . 2 4 ) ( 6 0 ) 

V. Generic Name of Three Princal Products of Compauay (as per moneratary temrs 

Preference N I L 

Item Code No. (ITC Code) N O T A P P L I C A B L E 



( N I L ) 

For and on behalf of the Board 

Victoriano P. Dungca 

Director 





87


Name of the Subsidiary Company Jet Lite (India) Ltd 

1 Financial year of the Subsidiary Company ended on 31st March, 2008 

2 Holding Company’s Interest 

a) Number of Equity Shares Rs.10/- each fully paid 276,115,409 

b) Extent of holding 100% 

c) Number of Preference Shares 340,000,000 

3 Net aggregate amount of Loss of the Subsidiary, so far as they 

concern members of Jet Airways (India) Ltd. 

Amount (Rs. in Lac) 

i) for the financial year of the Subsidiary 

a) Dealt with in the account of the Holding Company (38,211) 

b) Not dealt with in accounts of the Holding Company - 

ii) for the previous financial years of the Subsidiary since it 

became the Holding Company’s Subsidiary 

a) Dealt with in the account of the Holding Company - 

b) Not dealt with in accounts of the Holding Company - 

4 As the financial year of the Subsidiary Company coincide with 

the financial year of the Holding Company, section 212(5) of the 

Companies Act,1956 is not applicable. 



Statement pursuant to Section 212 of the Companies Act, 1956 

relating to Subsidiary Companies for the year ended 31st March, 2008 



Director 





88


Auditors’ Report on Consolidated Financial Statements 

To The Board of Directors of 


1. We have audited the attached Consolidated Balance Sheet of Jet Airways (India) Limited 

(“the Company”) and its subsidiary (the Company and its subsidiary constitute “the Group”) as 

at 31st March, 2008 and also the Consolidated Profit and Loss Account and the Consolidated 

Cash Flow Statement for the year ended on that date annexed thereto. 

2. These financial statements are the responsibility of the Company’s management. Our 

responsibility is to express an opinion on these financial statements based on our audit. We 

conducted our audit in accordance with generally accepted auditing standards in India. These 

standards require that we plan and perform the audit to obtain reasonable assurance whether 

the financial statements are prepared, in all material respects, in accordance with an identified 

financial reporting framework and are free of material misstatements. An audit includes, 

examining on a test basis, evidence supporting the amounts and disclosures in the financial 

statements. An audit also includes assessing the accounting principles used and significant 

estimates made by management, as well as evaluating overall the financial statements. We 

believe that our audit provides a reasonable basis for our opinion. 

3. We did not audit the financial statements of subsidiary company. As stated in note no. 1 

(b) of Schedule ‘S’, the financial statements of subsidiary, whose financial statements reflect 

total assets of Rs. 65,133 lacs, total revenues of Rs. 144,960 lacs and net cash inflows of Rs. 

7,895 lacs for period 20th April, 2007 to 31st March, 2008 are unaudited and we have relied 

upon the unaudited financial statements as provided by the Company’s Management for the 

purpose of our examination of consolidated financial statements of the Group. 

4. Attention is invited to note no. 13 of Schedule ‘S’ regarding the preparation of subsidiary 

accounts on going concern basis based on the reasons stated therein by the management of 

the Company. 

5. We report that the consolidated financial statements have been prepared by the Company’s 

Management in accordance with the requirements of Accounting Standard 21 ‘Consolidated 

Financial Statements’ (AS–21) as notified under the Companies (Accounting Standards) 

Rules, 2006 and on the basis of separate audited financial statements of the Company and 

management prepared financial statements of its subsidiary included in the consolidated 

financial statements. 

6. Based on our audit and on consideration of financial statements of the subsidiary company 

prepared by the management as explained in para 3 above and to the best of our information 

and according to the explanations given to us, we are of the opinion that the attached 

consolidated financial statements give a true and fair view in conformity with the accounting 

principles generally accepted in India: 

a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 

31st March, 2008; 

b) in the case of Consolidated Profit and Loss Account, of the Loss of the Group for the year 

then ended; and 

c) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for 

the year then ended. 





M. No. 15291 M. No. 35671 

Mumbai 


89


Consolidated Balance Sheet as at 31st March, 2008 




Director 





Schedule 

No. Rs. in lac 



As at 

31st March, 

2008 

Rs. in lac 


1 Shareholders’ Funds : 

a) Share Capital 

Equity A 8,633 

8,633 

b) Reserves and Surplus B 416,966 

425,599 

2 Loan Funds : 

a) Secured Loans C 175,301 

b) Unsecured Loans D 1,045,229 

1,220,530 

3 Deferred payment liability towards Investment in a wholly 

owned subsidiary company 

[Due within one year Rs. 13,750 lac, Refer Note 10 (b) of 

41,250 

Schedule S] 

4 Deferred Tax Liability (Refer Note 18 of Schedule S) 16,023 

Total 1,703,402 


1 Fixed Assets : E 

a) Gross Block 1,854,104 

b) Less : Depreciation 255,595 

c) Net Block 1,598,509 

d) Capital Work-in-progress 130.259 

1,728,768 

2 Investments F 1,035 

3 Current Assets, Loans and Advances : 

a) Inventories G 60,440 

b) Sundry Debtors H 139,896 

c) Cash and Bank Balances I 95,837 

d) Loans and Advances J 119,211 

415,384 


a) Current Liabilities K 430,051 

b) Provisions L 22,249 

Net Current Assets 

452,300 

(36.916) 

4 Profit & Loss Account - Debit Balance 

Less: Adjusted against balalnce in General Reserve as per 

19,190 

contra 

8,675 10,515 

Total 1,703,402 


90


Consolidated Profit and Loss Account for the year ended 31st March, 2008 




Director 





Schedule 

No. Rs. in lac 



For the 

Year ended 

31st March, 

2008 

Rs. in lac 

INCOME : 

Operating Revenue M 1,024,555 

Non - Operating Revenue N 67,572 

Total 1,092,127 

EXPENDITURE : 

Employees Remuneration and Benefits O 138,882 

Aircraft Fuel Expenses 406,998 

Selling and Distribution Expenses P 111,372 


(including Maintenance, Airport Charges, etc.) 

Q 301,443 

Aircraft Lease Rentals (Refer Note 4 of Schedule S) 82,157 

Depreciation / Amortisation 

Less : Depreciation on amount added on Revaluation charged to 

81,743 

Revaluation Reserve 1,563 

80,180 

Interest and Finance Charges R 52,247 

Total 1,173,279 

(LOSS) BEFORE TAXATION (81,152) 

Tax Expenses 

Current Tax (including provision for Wealth Tax Rs. 10 lac) 10 

Deferred Tax (17,083) 

Fringe Benefit Tax 1,188 

Provision of Income Tax (Net) for Earlier Years 120 

(LOSS) AFTER TAXATION (65,387) 

Balance Brought Forward 46,197 

BALANCE CARRIED TO BALANCE SHEET (19,190) 

Earnings per share of Rs. 10 each (Refer Note 17 of Schedule S) 

Basic and Diluted (in Rupees) (75.74) 


91


Consolidated Cash Flow Statement for the year ended 31st March, 2008 

Rs. in lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 


(Loss) before tax 


(81,152) 

Depreciation / Amortisation 80,180 

Provision for Stock Obsolescence 3,011 

Profit on sale of Fixed Assets (Net) (31,234) 

(Profit) on sale of Investments / Dividend on Current Investments (929) 

Interest and Finance Charges 52,247 

Interest on Bank and Other Deposits (3,729) 

Excess Provision no longer required (3,010) 

Provision for doubtful debts no longer required written back (129) 

Provision for Leave Encashment and Gratuity 3,764 

Exchange difference on translation (Net) (29,584) 

Provision for doubtful debts 913 

Bad Debts written off 1,556 

Inventory scrapped during the year 3,367 

Operating profit before working capital changes (4,729) 

Changes in Inventories (15,694) 

Changes in Sundry Debtors (71,992) 

Changes in Loans and Advances (48,321) 

Changes in Current Liabilities and Provisions 192,145 

Cash generated from operations 51,409 

Direct Taxes paid (6,139) 

Net cash from operating activities 45,270 


Purchase of Fixed Assets and Capital work-in-progress (635,822) 

Proceeds from sale of Fixed Assets 54,680 

Purchase of Current Investments (618,900) 

Sale of Current Investments 625,221 

Dividend on Current Invetment 

Long Term Investment in wholly owned Subsidiary Company: 

467 

Cost of Acquisition (146,500) 

Adjustment of Advance paid as per Share Purchase Agreement 50,000 

Deferred Payment towards Investment 41,250 

(55,250) 

Changes in Fixed Deposits with Banks (Refer Note 2 below) 10,400 

Interest Received on Bank and Other Deposits 3,597 

Net cash used for investing activities (615,607) 

92


Rs. in lac 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 


Net Increase in Short Term Loans 102,388 

Proceeds from Long Term Loans during the year 1,029,774 

Repayment of Long Term Loans during the year (502,425) 

Interest and Finance Charges (64,541) 

Dividend paid (including Tax on Dividend) (6,056) 

Note : 

Net cash from financing activities 559,140 

Net change in cash (A+B+C) (11,197) 

Cash and cash equivalents at beginning of the year 80,502 

Cash and cash equivalents at end of the year 

(Refer Notes below) 

69,305 

1) Cash and Cash equivalents for the period ended 31st March, 2008 includes unreaslised Gain (Net) of Rs. 677 

lac on account of translation of foreign currency bank balances. 

2) Fixed Deposits with banks with maturity period of more than three months including interest accrued thereon 

and Fixed Deposits under lien amounting to Rs. 14,327 lac are not included in Cash and Cash equivalents. 




Director 







93


Schedules to the Consolidated Balance Sheet as at 31st March, 2008 

As at 

31st March, 

2008 

Rs. in lac 

SCHEDULE A : 

SHARE CAPITAL 

Authorized 

180,000,000 Equity Shares of Rupees 10/- each 18,000 

20,000,000 Preference Shares of Rupees 10/- each 2,000 


Equity: 

20,000 

86,334,011 Equity Shares of Rs.10/- each fully paid up 8,633 

Of the above Equity Shares: 

- 69,067,205 Equity Shares held by the holding company, Tail Winds Limited & its 

nominee 

- 9,402,900 shares are allotted as fully paid bonus shares by Capitalization of Profit 

Total 8,633 

94



Rs. in lac 

SCHEDULE B : 


Capital Reserve 

Balance created in the earlier years * 

Nominal Value of investments in SITA received free of cost 

(See Note I.1.(a) of Schedule 'F' - Investments) *Rupees 2/- - 

Capital Redemption Reserve 

As at 

31st March, 

2008 

Rs. in lac 

Balance created in the earlier years 5,558 

Share Premium 


Revaluation Reserve 


Add : Created during the year (Refer Note 6 of Schedule S) 266,252 

Less: Adjustment / Reversal during the year on Sale and Lease Back 7,943 

Less: Depreciation for the year on amount added on Revaluation 

transferred to Profit and Loss Account 1,563 

General Reserve 


Less: Debit Balance in Profit and Loss Account to the extent of General 

Reseve 8,675 

* 

269,990 

Total 416,966 

- 

95



Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

SCHEDULE C : 

SECURED LOANS 

From Banks 

Rupee Loans 102,475 

(Loans from Banks are secured by hypothecation of Stocks, Debtors, other 

movable Current Assets, movable Fixed Assets other than Aircraft and / or by 

lien on Bank Deposits and corporate guarantee of the holding company 


Rupee Loan 

156 

(Secured by Vehicle and Engine financed by them) 

Foreign Currency Loan 72,670 

(Foreign Currency Loan to the extent of Rs. 32,550 lac of Holding Company 

is Secured by Mortgage on Leasehold Land situated at Bandra-Kurla Complex 

and Rs. 40,120 lac of Subsidiary Company is secured by Corporate Guarantee 

of Holding Company and pledge of 100% Equity Shares of the Subsidiary 

Company held by Jet Airways (India) Limited, the Holding Company) 

72,826 

Total 175,301 

SCHEDULE D : 



From Banks 75,931 

Other Loans: 

From Banks (Repayable within one year Rs. 47,081 lac) 47,081 

From Others 

Outstanding Hire Purchase / Finance Lease Installments 

922,217 

[Installments due within one year Rs. 69,438 lac] 

969,298 

Total 1,045,229 

96


SCHEDULE - E 

FIXED ASSETS 

Rs. in lac 


NATURE OF ASSETS GROSS BLOCK (At Cost / Valuation) DEPRECIATION / AMORTISATION NET BLOCK 

As at Additions Deductions/ As at Upto For the Deductions Upto As at 

01.04.2007 during Adjustments 31.03.2008 31.03.2007 Year Ended 

31.03.2008 31.03.2008 

the Year 

31.03.2008 

GOODWILL ON CONSOLIDATION 

- 187,239 - 187,239 - - - - 187,239 

(Refer Note 10 (d) of Schedule S) 

LEASEHOLD LAND 37,134 148,119 - 185,253 289 464 - 753 184,500 

PLANT AND MACHINERY 756 13 2 767 72 96 * - 168 599 

FURNITURE AND FIXTURES 4,188 826 32 4,983 1,990 834 18 2,806 2,177 

ELECTRICAL FITTINGS 2,360 628 68 2,920 1,036 263 46 1,253 1,667 

DATA PROCESSING EQUIPMENT 7,727 1,083 276 8,534 5,707 1,185 270 6,622 1,912 

OFFICE EQUIPMENT 4,585 918 17 5,486 1,905 594 12 2,487 2,999 

GROUND SUPPORT EQUIPMENT 6,046 930 19 6,957 3,034 606 7 3,633 3,324 

VEHICLES 1,273 193 228 1,237 551 250 130 671 566 

GROUND SUPPORT VEHICLES 6,681 2,401 410 8,672 4,241 1,386 336 5,291 3,381 

AIRCRAFT AND SPARE ENGINE (Narrow Body) 465,872 169,730 100,701 534,901 212,580 43,631 69,544 186,667 348,234 

AIRCRAFT AND SPARE ENGINE (Wide Body) - 844,196 - 844,196 24,649 - 24,649 819,547 

IMPROVEMENT ON LEASED AIRCRAFT 8,026 7,509 - 15,535 3,640 1,913 - 5,553 9,982 

IMPROVEMENT ON LEASED PROPERTY 4,293 175 - 4,468 1,354 694 - 2,048 2,420 

SIMULATORS 10,600 11,020 - 21,620 3,634 2,158 - 5,792 15,828 

INTANGIBLE ASSETS (Other than internally generated) 

SOFTWARE 2,243 1,536 - 3,779 1,458 850 - 2,308 1,471 

LANDING RIGHTS 14,411 - - 14,411 2,197 1,855 - 4,052 10,359 

TRADEMARKS 3,146 - 3,146 527 315 - 842 2,304 

TOTAL 579,341 1,376,516 1 1,753 1,854,104 244,215 81,743 70,363 255,595 1,598,509 

CAPITAL WORK IN PROGRESS INCLUDING CAPITAL 

130,259 

ADVANCES 

* Deductions of accumulated depreciation Rupees 45,938/- 

NOTE : 1) All the Aircraft of Holding Company are acquired on Hire-purchase / Finance Lease basis and do not include Aircraft taken on Operating lease. Such Aircraft are charged by the Hirers / Lessors against 

the financing arrangements obtained by them. 

2) Additions to Simulator during the year include Rs. 15 lac on account of Exchange Loss during the year. 

3) Additions include as under: 

(a) Leasehold Land is revalued as on 31st March, 2008 (Refer Note 6 of Schedule S); amount added on revaluation is Rs. 148,119 lac; the revalued amount substituted for historical cost on 31st 

March, 2008 is Rs. 184,500 lac 

(b) Narrow Body Aircraft are revalued on 31st March, 2008 (Refer Note 6 of Schedule S); amount added on revaluation shown under additions during the year is Rs.118,133 lac; the revalued amount 

substituted for book value on 31st March, 2008 is Rs.346,396 lac.. 

(c) Deduction from Gross Block during the year includes Rs.7,943 lac being reversal of amount added on revaluation in respect of aircraft sold and leased back. 

4) Useful life of Intangible Assets : Software - Upto 3 years Landing Rights - Upto 20 years Trademarks - 10 years 

97



SCHEDULE F : 

INVESTMENTS 

Unquoted 

I. Long Term Investments - (At Cost) 

1 Trade Investments 

18 Shares held with Societe Internationale de Telecommunications Aeronautiques 

(S.I.T.A S.C) * (Rupees 2/-) 

NOTES : 

(a) These investments have been received free of cost from SITA SC for participation in 

their Computer Reservation System and have been accounted at a nominal value of 

Rupees 2/- by crediting equivalent amount to Capital Reserve. 

(b) The transfer of this investment is restricted to other Depository Certificate 

holders for e.g. Air Transport members, etc. 

Unquoted 

II. Current Invetments - Others (At Cost or Market Value, whichever is less) 

As at 

31st March, 

2008 

Rs. in lac 

Investments in Mutual Funds - (Debt Schemes) 

Schemes As at 

31st March, Face 

2008 

No. of Units 

Value/Unit 

Growth Plan 

Prudential ICICI Mutual Fund **(Rupees 6,482/-) 535 Rs. 10.00 ** 

Barclays Global Investors Mutual Fund - 

**** 

Euro **** (Rupees 1134/-) 1,134 € 1.00 

GBP 1,295,961 £ 1.00 1,035 

Market Value 

Growth Plan 

As at 

31st March, 

2008 

Rs. in lac 

Prudential ICICI Mutual Fund (*** Rupees 7,070/-) *** 

Barclays Global Investors Mutual Fund 1,035 

1,035 

Note : The market price is based on the repurchase price declared by the respective 

funds. 

Total 1,035 

* 

98



Rs. in lac 

SCHEDULE G : 


i) Rotables, Consumable stores and tools 68,071 

Less : Provision for Obsolescence / Slow and Non-Moving items 

(Refer Note I (N) of Schedule S) 

12,662 

As at 

31st March, 

2008 

Rs. in lac 

55,409 

ii) Fuel 454 

iii) Other Stores Items 4,610 

Less :Provision for Slow and Non-Moving items 33 

4,577 

Total 60,440 

SCHEDULE H : 


(Unsecured) 

a) Debts (Outstanding for a period exceeding six months) 5,269 

b) Other Debts 139,802 

145,071 

Less : Provision for Doubtful Debts 5,175 

As At 

31st March, 

NOTES : 2008 

1) Considered good 139.896 

Considered doubtful 5,175 

1,45,071 

2) Debtors include Rs. 88 lac due from private company in which the Holding 

Company’s director is a director / member. 

139,896 

Total 139,896 

99

SCHEDULE I : 




Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

Cash on hand [includes cheques on hand Rs. 60 lac and Traveller Cheques Rs. 4 lac] 195 


a) In Current Account 3,867 

b) In Fixed Deposit Account (Including interest accrued of Rs. 734 lac, margin 

deposit Rs. 7,080 lac and Rs. 7,646 lac under the lien of Bankers and 

Government Authorities) 

Balance with other banks : 

In Current Account 

a) Citibank N.A, Johannesburg South Africa 

Maximum balance outstanding during the year Rs. 77 lac 

b) National Bank of Kuwait Nil 


Rs. 421 lac 

c) Barclays Business Premium GBP Account, UK 

Maximum balance outstanding during the year Rs. 4, 947 lac 

d) Barclays Bank - PLC - USD 

Maximum balance outstanding during the year Rs. 103,934 lac 

e) HSBC CCF - Paris - Euro 


f) Deutsche Bank AG - Frankfurt - Euro 


g) Barclays Bank - PLC - GBP 


h) DBS Bank Ltd - Singapore - SGD 


i) DBS Bank Ltd - Disbursement, Singapore - SGD 


18 

- 

37 

446 

6 

510 

19 

1,004 

- 

87,107 

91,169 

100



j) HSBC Bank - Brussels 


k) Barclays GBP Interest Account, UK 


l) Barclays Bank - PLC - Euro Account 


m) JP Morgan Chase Bank-EWR-USD 


n) JP Morgan Chase Bank-EWR-Disbursement 

Maximum balance outstanding during the yea Rs. 241 lac 

o) ICICI Bank UK Ltd., UK 


p) JP Morgan Chase Bank-YYZ-Collection 


q) HSBC Bank Ltd. Dhaka 

Maximum balance outstanding during the yea Rs. 256 lac 

r) HSBC Bank Ltd. Bangkok 


s) HSBC Bank Ltd. Hongkong-Collection 


t) HSBC Bank Ltd - Hongkong-Disbursement 


u) Bank of America - USD A/c, USA 


v) ING Brussels 


Rs. in lac 

307 

274 

208 

8 

- 

37 

483 

256 

615 

28 

8 

136 

268 

As at 

31st March, 

2008 

Rs. in lac 

Total 95,837 

4,668 

101



Rs. in lac 

SCHEDULE J : 



Advances Recoverable in Cash or in kind or for value to be Received 

- Considered Good 85,899 

- Considered Doubtful 705 

86,604 

Less: Provision for Doubtful Advances 705 

Deposits with Airport Authorities & others 

- Considered Good 14,482 

- Considered Doubtful 92 

14,574 

Less: Provision for Doubtful Deposits 

92 

As at 31st 

March, 

2008 

Rs. in lac 

85,899 

14,482 

Balances with Customs Authorities 1 

Advance Tax and Tax deducted at Source (Net of Provisions) 18,361 

MAT Credit Entitlement 468 

Total 119,211 

Note : Deposits and Advances include Rs. 3,302 lac amount placed with private 

limited companies in which the Holding Company’s director is a director / 

member. 

SCHEDULE K : 



Outstanding dues to Micro and Small Enterprises (Refer Note 21 of Schedule S) 32 

Others 203,512 

203,544 

Other Current Liabilities 108,664 

Interest Accrued but not due on loans 4,483 

Forward Sales (net) (Passenger / Cargo) 103,594 

Balance with Banks - overdrawn as per books 9,750 

Unclaimed Dividend * 13 

Unclaimed Share Application Money * 3 

*Note : These figures do not include any amounts due and outstanding to be 

credited to the Investor Education and Protection Fund 

Total 430,051 

SCHEDULE L : 

PROVISIONS 

Wealth Tax 13 

Gratuity 5,200 

Leave Encashment 4,511 

Others (Refer Note 19 of Schedule S) 12,525 

Total 22,249 

102


Schedules to the Consolidated Profit and Loss Account for the year ended 31st March, 2008 

Rs. In lac 

SCHEDULE M : 


Passenger 942,747 

Less: Service Tax 4,716 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 

938,031 

Excess Baggage 2,868 

Cargo 70,536 

Less: Service Tax 3,584 

66,952 

Export Incentives (Net) 4,000 

Other Revenue 12,704 

Total 1,024,555 

SCHEDULE N : 



[Tax Deducted at Source Rs. 645 lac] 

3,729 

Exchange difference (Net) [Refer Note 9 of Schedule S] 20,820 

Profit on Sale and Lease back of Aircraft and Spare Engine (Net) 31,484 

Profit on Sale of Current Investments (Net) 462 

Dividend on Current Investments 467 

Provision for aircraft maintenance no longer required written back 2,905 

Provision for Doubtful Debts no longer required written back 129 

Other excess Provision written back 105 

Other Income [including Interest on Income Tax Refund of Rs. 246 lac] 7,471 

Total 67,572 

SCHEDULE O : 


(Includes Managerial Remuneration - Refer Note 12 of Schedule S) 

Salaries, Wages, Bonus and Allowances 124,471 

Contribution to Provident Fund and ESIC 3,094 

Provision for Gratuity 1,407 

Provision for Leave Encashment 2,357 

Staff Welfare Expenses 7,553 

Total 138,882 

103


Schedules to the Consolidated Profit and Loss Account for the year ended 31st March, 2008 

For the 

Year ended 

31st March, 

2008 

Rs. In lac Rs. in lac 

SCHEDULE P : 

SELLING and DISTRIBUTION EXPENSES 

Computerised Reservation System Cost (Net) 27,099 

Commission 72,209 

Others 12,064 

Total 111,372 

SCHEDULE Q : 


Aircraft Variable Rentals 27,284 

Aircraft Insurance and Other Insurance (Net) 7,998 

Landing, Navigation and Other Airport Charges 81,458 

Aircraft Maintenance (including Customs Duty and Freight, where applicable) 

Component Repairs, Recertification, Exchange, Consignment Fees 

and Aircraft Overhaul 50,175 

Lease of Aircraft Spares including Engine 8,002 

Consumption of Stores and Spares (Net) 

9,500 

[including items scrapped / written off Rs. 3,367 lac] 

Provision for Spares Obsolescence 3,011 

Inflight and Other Pax Amenities 

[including provision for Slow and Non-Moving inventory amounting to Rs. 33 lac] 

70,688 

52,226 

Communication Cost (Net) 5,771 

Travelling and Subsistence 23,517 

Rent 6,567 

Rates and Taxes 


111 

- Leased Premises 279 

- Others 3,422 

Electricity 

3,701 

1,656 

Director’s Sitting Fees 15 

Bad Debts Written off 1,556 

Provision for Bad & Doubtful Debts (Net) 913 

Loss on scrapping of Aircraft parts 120 

Loss on sale of Fixed Assets other than Aircraft parts (Net) 130 

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

Stationery, Cargo Handling and Bank Charges etc.) 

17,732 

Total 301,443 

SCHEDULE R : 


- On Fixed Loan 51,783 

- Others 14,715 

66,498 

Less : Capitalised during the Year 14,251 

52,247 

Total 52,247 

104



SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF CONSOLIDATED ACCOUNTS 

I. SIGNIFICANT ACCOUNTING POLICIES: 

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS: 

The accompanying consolidated financial statements of Jet Airways (India) Limited (“the Holding 

Company”) and its wholly owned subsidiary viz. Jet Lite (India) Limited (together “the Company / 

Group”) are prepared under the historical cost convention, except certain Fixed Assets which are revalued, 

in accordance with the generally accepted accounting principles applicable in India, the provisions of the 

Companies Act, 1956 and the applicable accounting standards, to the extent possible in the same format 

as that adopted by the Holding Company for its separate financial statements. 

The financial statements of Subsidiary used in the consolidation are drawn upto the same reporting date 

as that of the Holding Company, viz. 31st March, 2008. 

B. PRINCIPLES OF CONSOLIDATION: 

(i) The financial statements of the Holding Company and its Subsidiary Company have been consolidated 

on a line-by-line basis by adding together the book value of like items of assets, liabilities, income 

and expenses, after fully eliminating intra-group balances and intra-group transactions and the 

unrealised profits / losses. 

(ii) The consolidated financial statements have been prepared using uniform accounting policies for like 

transactions and other events in similar circumstances and are presented, to the extent possible, in 

the same manner as the Holding Company’s separate financial statements. 

(iii) The excess of cost of investment in the Subsidiary Company over the Holding Company’s portion of 

the equity of the Subsidiary Company at the date of investment made is recognized in the financial 

statements as Goodwill. 

C. USE OF ESTIMATES: 






D. REVENUE RECOGNITION: 







E. EXPORT INCENTIVE: 

Export incentive available under prevalent scheme is accrued in the year when the right to receive credit 

as per the terms of the scheme is established in respect of exports made and are accounted to the extent 

there is no significant uncertainty about the measurability and ultimate utilization of such duty credit. 

F. COMMISSION: 



105

G. EMPLOYEE BENEFITS: 


a) Defined Contribution plan: Company’s contribution paid / payable for the year to defined 

contribution retirement benefit schemes are charged to Profit and Loss Account. 

b) Defined Benefit and Other Long Term Benefit plan: Company’s liabilities towards defined benefit 

plans and other long term benefit plans are determined using 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 recognised in the Profit and Loss account in the period of occurrence 

of such gains and losses. Past service cost is recognised immediately to the extent of benefits are 

vested, otherwise it is amortised on straight-line basis over the remaining average period until the 

benefits become vested. 



c) Short Term Employee Benefits: Short term employee benefits expected to be paid in exchange for 


services. 

H. FIXED ASSETS: 

a) TANGIBLE ASSETS: 




The cost of improvements to Leased Properties as well as customs duty / modification cost incurred 

on aircraft taken on operating lease have been capitalised and disclosed appropriately. 

b) INTANGIBLE ASSETS: 





c) ASSETS TAKEN ON LEASE: 

1. Operating Lease: Rentals are expensed with reference to the Lease Term and other 


2. Finance Lease / Hire Purchase: The lower of the fair value of the assets and the present 

value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount 

shown as Lease Liability (Outstanding Hire Purchase / Finance Lease Instalments). The principal 

component of the lease rentals is adjusted against the leased liability and interest component is 

charged to the Profit and Loss Account. 

I. IMPAIRMENT OF ASSETS: 





J. DEPRECIATION / AMORTISATION: 

a) Depreciation on tangible fixed assets has been provided at the rates and in the manner prescribed 

under the schedule XIV to the Companies Act, 1956 on Written Down Value method, other than 

Wide Body aircraft which are depreciated on Straight Line method and expenditure incurred on 

improvements of assets acquired on operating lease are written off evenly over the balance period of 

the lease. Premium on leasehold land is amortised over the period of lease. 

106


b) On revalued assets, depreciation is charged over the residual life and the additional charge of 

depreciation is withdrawn from the Revaluation Reserve. 

c) Intangible assets are amortised on straight line basis as follows. 

1. Landing Rights acquired are amortised over a period not exceeding 20 years. Amortization 

period exceeding 10 years is applied considering industry experience and expected asset 

usage. 

2. Trademarks are amortised over 10 years. 

3. Computer Software is amortised over a period not exceeding 36 months. 

K. INVESTMENTS: 


at cost. Provision for diminution in the value of long term investments is made only if such a decline is 


L. BORROWING COSTS: 


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 recognised as an expense in the period in which they 

are incurred. 

M. FOREIGN CURRENCY TRANSACTIONS / TRANSLATION: 

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing 


b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. 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 Profit and Loss Account. 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 amortised as income / expense over the life of contract. 

c) Any exchange gain or loss on account of exchange differences either on settlement or on translation 


N. INVENTORIES: 

Inventories are valued at cost or Net Realisable 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 aircraft derived from Schedule XIV of the 

Companies Act, 1956 and also provisioning for non – moving / slow moving items. 

O. AIRCRAFT MAINTENANCE AND REPAIRS COST: 


as incurred except where such overhaul cost in respect of Engines / APU are covered by third party 


P. TAXES: 



107


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 recognised and carried forward only to the extent that there is a reasonable / virtual 

certainty, as the case may be, that the asset will be realised in future. 



Q. SHARE ISSUE EXPENSES: 

Issue Expenses are adjusted against the Share Premium Account. 

R. SALE AND LEASE BACK TRANSACTION: 

Profit or loss on sale and lease back arrangements resulting in operating leases are recognized, in case the 

transaction is established at fair value, else the excess over the fair value is deferred and amortized over 

the period for which the asset is expected to be used. 

S. ACCOUNTING FOR DERIVATIVE INSTRUMENTS: 

Interest Rate Swaps, Currency Option, Currency Swaps and other products, in the nature of firm commitment 

and highly probable forecast transactions, entered into by the Company for hedging the risks of foreign 

currency exposure (including interest rate risk) are accounted based on the principles of prudence as 

enunciated in Accounting Standard 1(AS 1) “Disclosure of Accounting Policies”. 

T. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: 





II. NOTES TO ACCOUNTS: 

1. a) The consolidated financial statements present the consolidated accounts of Jet Airways (India) 

Limited with the following subsidiary: 

Name of the 

Subsidiary Company 

Jet Lite (India) Limited 

(w.e.f. 20th April, 2007) 

Country of Incorporation 

Extent of Holding as on 

31st March, 2008 

India 100% 

b) The said company became the Subsidiary Company with effect from 20th April, 2007 and the 

accounts from 1st April, 2007 till the date of acquisition and thereafter up to 31st March, 2008 have 

been prepared by the management for the purpose of computation of Goodwill and consolidation, 

respectively, which are unaudited. However, the financial statements of Subsidiary Company for 

the complete Financial Year viz. 1st April, 2007 to 31st March, 2008 are audited by its statutory 

auditors by considering the carved out assets / liabilities in the accounts of the Subsidiary Company. 

Accordingly, the unaudited accounts from the date of acquisition, after adjusting carved out assets 

and liabilities on net basis as detailed in note no. 10 (c), have been considered for the purpose of 

consolidation. 

c) The Subsidiary Company has investment in a Joint Venture viz. “Sahara States – Bhopal”, for 

joint development of housing projects. Since the said investment in joint venture as per the 

Share Purchase Agreement (SPA) is a part of assets held in trust, the Company has not made any 

adjustment in respect of its share of assets, liabilities and income and expenses of the said joint 

venture. 


for : 

Tangible Assets Rs. 1,524,624 lac 

108

3. CONTINGENT LIABILITY: 


a) Unprovided Income Tax demands which are under appeals Rs. 49,838 lac 

b) Unprovided Service Tax demands which are under appeals Rs. 109 lac. 

In case of Subsidiary Company, the Service Tax department has summoned various officials of the 

Company with regard to the advertisement income, received by the Subsidiary Company in the earlier 

years upto 31st March, 2007 (amount unascertained). The matter is still being investigated by the 

said department and the Management does not expect a materially adverse impact on financial 

conditions of the Subsidiary Company as the said liability, if in any case arises, will be on account of 

selling shareholders of Sahara Airlines Limited (SAL) and the Holding Company may adjust the same 

against its deferred payment liability towards investment installments. 

c) Unprovided Sales Tax demands which are under appeals Rs. 6 lac. 

d) Unprovided claims against the Company, pending Civil and Consumer suits of Rs. 3,187 lac. 

e) Unprovided Inland Air Travel Tax demands which are under appeal Rs. 473 lac against which the 

amount of Rs. 117 lac is deposited with the Authorities. 

f) Unprovided claims for Octroi amounts to Rs. 2,899 lac. 

g) Disputed claims against the company towards Ground Handling charges amount to Rs. 4,564 lac. 

h) Letters of Credit outstanding are Rs. 63,191 lac and Bank Guarantees outstanding are Rs. 51,892 

lac. 

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. 

4. Aircraft Lease Rentals are stated net of sub-lease rentals of Rs. 1,229 lac. 

5. During the Year ended 31st March, 2008, the Holding Company has taken delivery of Nineteen aircraft, 

which includes sixteen Wide Body aircraft. These aircraft are different from the Narrow Body aircraft in 

terms of technology and other efficiency parameters based on long haul operations and are being used 

primarily on International routes as compared to Narrow Body aircraft which are mostly deployed on 

Domestic routes. In view of this, such Wide Body aircraft are depreciated at the rates prescribed as per 

Schedule XIV of the Companies Act, 1956 on Straight Line method as against Written Down Value method 

followed for Narrow Body aircraft held by the Holding Company. 

6. During the year, in order to reflect the current reinstatement cost / market value, the Holding Company 

revalued the Leasehold Land and Narrow Body aircraft (including aircraft revalued in the year ended 31st 

March, 2002) owned by it as at 31st March, 2008. Such revaluation for aircraft has been carried out by 

International Aircraft valuers and for Leasehold Land by a registered valuer considering the present market 

/ reinstatement value and considering the book value of such assets as at 31st March, 2008. Accordingly, 

the resultant appreciation in respect of land of Rs. 148,119 lac and in respect of aircraft of Rs. 118,133 lac 

has been added to respective assets and the aggregating amount of Rs. 266,252 lac has been credited to 

Revaluation Reserves. Since the valuation of the aforesaid assets has been carried out as on 31st March, 

2008, there is no additional charge on account of depreciation on the assets so revalued. 

Depreciation includes Rs. 1,563 lac on the aircraft revalued in the earlier year, which has been withdrawn 

from the Revaluation Reserve as per the accounting policy followed. 

7. Prior Period Expenses included in the determination of the net profit are towards Employee Remuneration 

and Benefits and Other Operating Expenses Rs. 33 lac (net of Prior Period Income Rs. 1 lac). 

8. Disclosure on Derivatives 

a) The Holding Company has entered into various derivative contracts viz. interest rate swaps (IRS), 

currency options, currency swaps, etc in order to hedge and manage its foreign currency exposures 

towards future export receivables and foreign currency borrowings. Such derivative contracts which 

are in the nature of firm commitments and highly probable forecast transactions are entered into 

by the Company for hedging purposes only and does not use the same for trading or speculation 

purposes. 

109


Nominal amounts of derivatives contracts entered into by the Holding Company and outstanding as 

on 31st March, 2008 amount of Rs. 247,453 lac. The category-wise break-up thereof is as under: 

Particulars 

No. of 

Contracts 

2007-08 

Amount 

(Rs. in lac) 

Interest Rate Swaps 5 73,801 

Currency Options 9 107,993 

IRS cum Currency Options 1 41,031 

Currency Swaps 1 9,628 

IRS cum Currency Swaps 2 15,000 

The Holding Company, during the year based on the announcement of The Institute of Chartered 

Accountants of India “Accounting for Derivatives’’ along with the principles of prudence as enunciated 

in Accounting Standard (AS-1) “Disclosure of Accounting Polices” has accounted for outstanding 

derivative contracts at fair values as at the balance sheet date. 

On that basis, the fair value of the derivative instruments as at 31st March, 2008 aggregating to Rs. 

6,945 lac has been debited to the Profit and Loss Account. The charge on account of derivative losses 

has been computed on the basis of MTM values based on the report of independent valuer and the 

confirmations from the counter parties are still awaited. However, the Company doesn’t expect any 

material variation in this respect on receipt of such confirmations. 

b) The foreign currency exposures that have not been hedged by any derivative instrument or otherwise 

as on 31st March, 2008 are as follows: 

Particulars INR Equivalent 

(Rs. in lac) 

USD Equivalent 

(USD in lac) 

Current Assets 87,858 2,190 

Current Liabilities 118,724 2,959 

Interest accrued but not due on Loans 3,521 88 

Long Term Loans for purchase of Aircraft* 827,763 2,063,218 

Loans for Pre Delivery Payment** 47,081 1,174 

Other Loans payable 44,981 1,121 

* Includes Loans payable after 5 years Rs. 506,863 lac 

* * Loans to be returned on delivery of aircraft in Foreign Currency. 

9. Hitherto any gain or loss on account of exchange difference either on settlement or on translation 

of foreign currency loans in respect of Fixed Assets acquired from outside India was adjusted to the 

carrying cost of such assets. During the Current Year, in accordance with the revised Accounting 

Standard (AS-11) on “Effects of Changes in Foreign Exchange Rates” notified in the Companies 

(Accounting Standards) Rules 2006 net exchange gain of Rs. 23,293 lac has been credited to the 

Profit and Loss account 

10. a) On 20th April, 2007, the Holding Company acquired 100% shares (276,115,409 Equity Shares 

of Rs. 10/- each and 340,000,000 Non-Cummulative fully convertible Preference Shares of Rs. 

10/- each) of Sahara Airlines Limited (SAL) from selling shareholders of SAL towards its Assets 

and Liabilities (excluding certain assets and liabilities not taken over) as per Share Purchase 

agreement (SPA) for a lump-sum price of Rs. 146,500 lac, out of which, Rs. 91,500 lac had 

been paid on or before the acquisition date.. Out of the balance of Rs. 55,000 lac which are 

payable in four interest free annual equal installments commencing on or before 30th March, 

2008, the first annual installment of Rs.13,750 lac has been paid. Accordingly, SAL (now known 

as Jet Lite (India) Limited) is 100% subsidiary of the Holding Company effective from 20th 

April, 2007. 

110


b) During the year, the Holding Company to enable Jet Lite (India) Limited to pay installments 

of demand of income tax in respect of earlier years paid Rs. 3,708 lac on behalf of the selling 

shareholders of SAL since the liability in respect of income tax for the earlier years belongs 

to selling shareholders of SAL. The Holding Company also communicated this fact to selling 

shareholders vide its communication letter dated 26th March, 2008 and in the absence of 

reimbursement has adjusted the same towards the first installment due. Accordingly, the 

balance of first installment of Rs. 10,042 lac was paid on 30th March, 2008 and remaining 

installments payable subsequently in accordance with the consent terms of Rs. 41,250 lac has 

been disclosed under the separate head “Deferred payment liability towards Investments in 

wholly owned Subsidiary Company”. 

c) As per terms of SPA, the Holding Company has taken over all assets and liabilities of SAL except 

certain assets which the Company (termed as “Carved out assets and liabilities”) is obliged to 

sell or dispose off at no cost to the selling shareholders of SAL or transferee as per the terms of 

SPA at book values as on the date of acquisition. On that basis in the accounts of the Subsidiary 

Company such carved out assets and liabilities have been disclosed and no depreciation has 

been charged on fixed assets held in trust. However, considering that such assets / liabilities are 

held by the Company in trust pending transfer, the Holding Company has included the same on 

net basis and the difference of Rs. 345 lacs, being existing on the date of acquisition, have been 

adjusted to the amount of Goodwill on consolidation. The management envisages no significant 

profit / loss on transfer of these assets / liabilities as aforesaid. The details of carved out assets 

and liabilities held in trust are as under: 


Particulars of carved out assets / liabilities 

Assets 

Buildings 292 

Helicopters including helicopter inventory 3,542 

Investment in Joint Venture 77 

Land held as inventory 47 

Loan to Prakash Industries Limited 857 

Advances to suppliers against Helicopter inventory 

Liabilities 

Loan from Others (erstwhile Holding Company - Sahara Industrial and 

59 

Commercial Corporation Limited) 4,429 

Sundry Creditors 100 

Net difference adjusted to Goodwill 345 

d) The details of assets and liabilities taken over based on the accounts of the Subsidiary Company 

as on the date of acquisition and the resultant Goodwill are as under: 


Particulars 

Fixed Assets 11,501 

Investment 78 

Current Assets 24,473 

Loans and Advances 17,043 

Total Assets 53,095 

Less: Liabilities (93,489) 

Net Liabilities (40,394) 

Add: Purchase consideration as stated in para a) above 146,500 

Add: Arising out of carved out assets and liabilities (net) 

(Refer para c) above) 

345 

Goodwill on Consolidation 187,239 

111

11. Employee Benefits 


In the opinion of the Company for the reasons stated in note no. 13 below there is no impairment 

in the value of Goodwill. 

a) Defined contribution plan 



The Company recognised Rs. 2,925 lac for provident fund contributions in the Profit and Loss 

Account. 

b) Defined benefit plans 

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

employees. 

The gratuity scheme provides for payment to vested employees as under: 

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


service. 




obligation for gratuity were carried out at 31st March, 2008 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 recognised in the 

Company’s financial statements as at 31st March, 2008. 

Sr. 

No 

Particulars 


Gratuity 

(Non-Funded) 

As on 

31.03.2008 

I) Reconciliation of projected benefit obligations (PBO) – defined benefit 

obligation : 

PBO at the beginning of the year 3,987 

Current Service Cost 636 

Interest Cost 319 

Actuarial (gain) / losses 452 

Benefits paid (194) 

PBO at end of the year 5,200 

II) Net cost for the year ended 31st March, 2008 : 

Current Service cost 636 

Interest cost 319 

Actuarial (gain) / losses 452 

Net cost 1,407 

III) Assumption used in accounting for the gratuity plan: 

Discount rate (%) 8.00 % 

Salary escalation rate (%) 7.50 % 

112


The Subsidiary Company has adopted the Accounting Standard -15 (AS-15) (Revised 2005) with 

effect from 1st April, 2007. Up to 31st March, 2007, the Subsidiary Company had been contributing 

into a Gratuity Fund Trust administered by the erstwhile management. Liability aggregating to 

Rs. 384 lac up to 31st March, 2007 is recoverable from the Gratuity Fund Trust handled by “Sahara 

India Karyakarta Gratuity Fund Trust”. Management believes that the Company need not provide for 

any gratuity liability relating to period prior to 31st March, 2007. 

c) Other Long Term Employee Benefits 

The Leave Encashment charge for the year ended 31st March, 2008, based on actuarial valuation 

carried out using the Projected Accrued Benefit Method, amounting to Rs. 2,357 lac has been 

recognized in the Profit and Loss Account. 

12. MANAGERIAL REMUNERATION: 


Particulars 2007-08 

(i) Salary and Allowances* 48 

(ii) Contribution to Provident Fund and Provision for Gratuity* 5 

(iii) Perquisites* Nil 

(iv) Commission to Non-Exécutive Directors # Nil 

(v) Sitting Fees # 15 

Total 68 

* Included under the head “Employees Remuneration and Benefits” (Refer Schedule - O) 

# Disclosed under the head “Other Operating Expense” (Refer Schedule - Q) 

13. The Subsidiary Company, acquired during the year, suffered losses which resulted in increase in accumulated 

losses exceeding the net worth of the Subsidiary Company as at the balance sheet date. The Holding 

Company has plans to support growth plans of the Subsidiary Company which will result into increase in its 

revenue and consequently profitability and net worth. Moreover, a reputed valuer have recently valued the 

equity interest in the subsidiary based on its assets and growth model, etc., which has disclosed the equity 

values of the Holding Company’s investment in excess of the carrying value of Goodwill. Accordingly, the 

financial statements of Subsidiary Company, which have been prepared on “Going Concern” basis, are 

considered for consolidation. The said Subsidiary Company is confident of achieving the target and in the 

opinion of the Company, the carrying value of Goodwill represents its recoverable amount and no provision 

for impairment is considered necessary at this stage for the reasons stated above. 

14. SEGMENT REPORTING: 









unallocated which are mainly employee remuneration and benefits, other selling and distribution 



113


used interchangeably. The Company believes that it is not practical to provide segment disclosures 



The Company believes that it is not practical to identify fixed assets used in the Company’s business or 



made. 



Passenger and Cargo Revenue 

(Including Excess Baggage) 

693,795 314,056 1,007,851 

Segment result 337,570 118,877 456,447 

Less: Un-allocable expenses 569,628 

Add: Un-allocable revenue 84,276 

(-)Loss before Interest and tax (-) 28,905 


(-)Loss before tax (-)81,152 

Less: (-) Tax Benefit (-)15,765 

(-)Loss after tax (-)65,387 






15. RELATED PARTY TRANSACTIONS: 

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

related party as defined in the Accounting Standard are given below: 



(1) Tail Winds Limited Holding Company 

(2) Naresh Goyal 

Controlling 

Company 

Shareholder of Holding 

(3) Anita Goyal Relative of controlling shareholder of 

Holding Company 

(4) Saroj K Datta Key Managerial Personnel 

(5) Jetair Private Limited 

(6) Jet Enterprises Private Limited 

(7) Jet Airways LLC 

(8) Jet Airways of India Inc. 

(9) India Jetairways Pty Limited 

(10) Trans Continental e Services Private Limited 

(11) Jet Airways Europe Services N.V. 

Enterprises over which controlling 

shareholder of Holding Company and his 

relatives are able to exercise significant 

influence directly or indirectly 

114


(ii) Transactions during the year ended 31st March, 2008 and balances with related parties : 

a) Remuneration includes remuneration to Mrs. Anita Goyal, relative of controlling shareholder of 

Holding Company Rs. 146 lac and to Mr. Saroj K. Datta, Key Managerial Personnel Rs. 53 lac. 

b) Enterprises over which controlling shareholder of Holding Company and his relatives are able to 

exercise significant influence: 


Jetair Private Limited 



– Expenses Reimbursed (net) 

1,509 


– Deposits for Leased Premises 343 


– Sundry Debtors 88 


Jet Airways LLC 




76 

– Sundry Creditors 1,406 


Trans Continental e Services Private Limited 

– Other Selling and Distribution Cost 1,852 

– Other Deposit 225 



Jet Enterprises Private Limited 


– Deposits for Leased Premises 2,200 

– Sundry Creditors Nil 


Jet Airways of India Inc. 




814 



India Jetairways Pty Limited 

– Agency Commission 37 


Jet Airways Europe Services N.V. 



1,381 


– Service Charges 24 


115


16. The Company has entered into Finance and Operating Lease agreements. As required under the Accounting 

Standard 19 on ‘Leases’, the future minimum lease payments on account of each type of lease are as 

follows: - 

a) Finance Leases / Hire Purchase 

Particulars Future Minimum 


As at 


Aircraft 

Present Value of 

Future Minimum 


As at 



Finance Charges 

Less than 1 year 103,362 69,438 33,924 

Between 1 and 5 years 438,913 326,992 111,921 

More than 5 years 591,856 525,787 66,069 

Grand Total 1,134,131 922,217 211,914 

The salient features of a Hire Purchase / Finance Lease Agreement are : 

• Option to purchase the aircraft either during the term of the Hire Purchase on payment of the 

outstanding Principal amount or at the end of the Hire Purchase term on payment of a nominal 

option price. 

• In the event of default, the Hirer / Lessee is responsible for payment of all costs of the Owner 

including the financing cost, and other associated costs. Further a right of repossession is 

available to the Owner / Lessor. 

• The Hirer / Lessee is responsible for maintaining the aircraft as well as insuring the same. 

• In the case of Finance Lease the property passes to the Lessee, on the payment of a nominal 

option price at the end of the term. 

b) Operating Leases 

i) The Company has taken various residential / commercial premises and amenities under 

cancelable and non-cancelable operating leases. These lease agreements are normally renewed 

on expiry. 

The future minimum lease payments in respect of non-cancelable period which, as at 31st 

March, 2008 are as follows: 



Payments 

Commercial Premises and Amenities 




116


ii) The Company has taken on operating lease aircraft and spare engines the future minimum 

lease payments in respect of which, as at 31st March, 2008 are as follows : 



Payments 






Aircraft given on sub – lease 


Less than 1 year (-)250 

Between 1 and 5 years NIL 

More than 5 years NIL 

Grand Total (-)250 

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. 



• 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. 

• The leases are non-cancelable. 

iii) The lease rental expense recognised: Rs. 87,420 lac, it includes Rs. 3,597 lac recognised as lease 

rental expenses on account of sale and lease back of aircraft. 



Per Share”, is as under: 



(Loss) after tax (65,387) 

(Loss) attributable to Equity Shareholders (A) (65,387) 

No. of Equity Shares outstanding during the year (B) 86,334,011 

Nominal Value of Equity Shares (Rupees) 10 

Basic and Diluted EPS (Rupees) (C = A/B) (75.74) 

117


18. The Deferred Tax Liability as at 31st March 2008 comprises of the following: 




Related to Fixed Assets 


Unabsorbed Depreciation 

Other Disallowances under Income Tax Act, 1961 

Provision for Deferred Tax Liability (Net) 

38,346 

17,658 

4,665 

16,023 



19. As per (AS) 29, Provisions, Contingent Liabilities and Contingent Assets, given below are movements in 

provision for Frequent Flyer Programme, Redelivery of Aircraft, Aircraft Maintenance Costs and Engine 

Repairs Costs. 

a) Frequent Flyer Programme : 

The Company has 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. 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 is accounted considering the members’ accumulated mileage on an incremental cost 

basis. The movement in the provision during the year is as under: 



Created in the earlier years 1,651 

Add: - Additional Provisions during the year 1,803 

Less: - Amounts used during the year 505 

Less: - Unused Amounts reversed during the year - 

Closing Balance 2,949 

b) 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. 




Add: - Additional Provisions during the year* 1,131 

Less: - Amounts used during the year 1,146 

Less: - Unused Amounts reversed during the year - 


* Additions include adjustment of Rs. 392 lac on account of exchange fluctuation consequent 

to restatement of liabilities denominated in foreign currency. 

118


The cash outflow out of the above provisions as per the current terms under the lease agreements 

are as under: 


2008-09 8 906 

2009-10 6 421 

2010-11 17 1,860 

2011-12 2 132 

2012-13 20 1,085 

2013-14 2 101 

2014-15 6 125 

2015-16 8 72 

c) Aircraft Maintenance Costs : 

Total 4,702 

Certain heavy maintenance checks including overhaul of Auxiliary Power Units need to be performed 

at specified intervals as enforced by the Director General of Civil Aviation in accordance with the 

Maintenance Program Document laid down by the manufacturers. The movements in the provisions 

for such costs are as under: 




Add: - Adjustments during the year* (122) 

Less: - Amounts used during the year 1,031 

Less: - Unused Amounts reversed during the year 2,028 




d) Engine Repairs Cost : 

The aircraft engines have to undergo shop visits for overhaul and maintenance at specified intervals 

as per the Maintenance Program Document. The same was provided for on the basis of hours flown 

at a pre-determined rate. 



Created in the earlier years 943 

Add: - Adjustments during the year* (21) 

Less: - Amounts used during the year - 

Less: - Unused Amounts reversed during the year 265 

Closing Balance 657 



119



the statutory authorities regarding non levy of Fringe Benefit Tax on free / concessional tickets issued by 

the airline companies, no provision for the same is made cumulatively in the books of accounts amounting 

to Rs.1,600 lac. 

21. 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 

Holding Company determined on the basis of intimation received from suppliers regarding their status. The 

Subsidiary Company has not received any information from vendors regarding their status under the said 

Act. The required 



a Principal amount remaining unpaid as on 31st March, 2008 32 

b Interest due thereon as on 31st March, 2008 - 

c Interest paid by the Company in terms of Section 16 of Micro, Small and 

Medium Enterprises Development Act, 2006, along with the amount of the 

payment made to the supplier beyond the appointed day during the year. 

d Interest due and payable for the period of delay in making payment (which 

have been paid but beyond the appointed day during the year) but without 

adding the interest specified under Micro, Small and Medium Enterprises 

Development Act, 2006 

e Interest accrued and remaining unpaid as at 31st March, 2008 - 

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. 

22. The disclosure regarding the corresponding Previous Year ended 31st March, 2007 in the Consolidated 

Financial statements is not made, being the first year of consolidation. 





Director 







- 

- 

- 

120

Board of Directors 

(as on 29th July, 2008) 

Mr. Naresh Goyal Chairman 

Mr. Victoriano P. Dungca 

Mr. Javed Akhtar 

Mr. Saroj K. Datta 


Shairill Malik 

Statutory Auditors 

D. S. Shukla & Co. Chaturvedi & Partners 


GF-2, Ikta Apartments 212A, Chiranjiv Tower 

125, Chandralok,Aliganj 43, Nehru Place 

Lucknow - 226 024 New Delhi – 110- 019 

Registered Office 

S. M. Centre 

Andheri-Kurla Road 

Andheri (East) 

Mumbai – 400 059 

Bankers to the Company 

Andhra Bank 

Bank of Rajasthan 

Canara Bank 

Central Bank of India 

Indian Overseas Bank 

ING Vysya Bank Ltd. 

Punjab National Bank 

State Bank of India 

State Bank of Patiala 

Bank of Baroda 

Centurion Bank of Punjab 

Jet Lite (India) Limited - 17th Annual Report 2007-08 

Corporate Information 

121

To the Members, 


1. Your Directors have pleasure in presenting their Seventeenth Annual Report together with the 

Audited Statement of Accounts for the Financial Year ended 31st March, 2008. 

2. FINANCIAL / OPERATIONAL RESULTS: 

Particulars Year ended 

31 st March, 

2008 

Rs. in lac 

Year ended 

31st March, 

2007 

Rs. in lac 

GROSS REVENUE 150,552 201,473 

(Loss) before Interest, Depreciation and Tax (40,343) (63,557) 

Interest 3,044 4,129 

(Loss) before Depreciation and Tax (43,387) (67,686) 

Depreciation 575 1,086 

(Loss) before Taxation and Adjustments (43,962) (68,772) 

Provision for Tax 188 195 

Deferred Tax - - 

(Loss) after Taxation (44,150) (68,967) 

(Loss) brought forward (94,290) (25,323) 

Profit available for Appropriation (138,440) (94,290) 

APPROPRIATIONS NIL NIL 

Transfer to Balance Sheet (138,440) (94,290) 

Note: 1 lac = 100,000 

3. DIVIDEND: 

The Directors do not recommend any dividend on Equity Shares and Preference Shares of 

the Company for the Financial Year 2007-08 as the Company has incurred loss to the tune of 

Rs. 44,150 lac during the financial year under review. 

4. FLEET: 

During the year under review, the Company inducted 1 aircraft in its fleet on lease basis and 

returned 1 aircraft to the lessor due to expiry of their lease period. Thus, the total fleet size of 

the Company as on 31st March 2008 consists of 17 Boeing, 7 CRJ Aircraft. 

5. BOARD OF DIRECTORS: 

Directors‘ Report 

During the year under review, Dr. Vijay L. Kelkar resigned as a Director of the Company with 

effect from 31st December, 2007. Mr. Victoriano P. Dungca, retires by rotation at the ensuing 

Annual General Meeting, and being eligible offers himself for re-appointment. 

122

6. RECONSTITUTION OF AUDIT COMMITTEE: 


Consequent to the resignation of Dr. Vijay L. Kelkar, the Audit Committee was reconstituted as 

under: - 

(a) Mr. Javed Akhtar Independent Director 

(b) Mr. Victoriano P. Dungca 

7. STATUTORY AUDITORS: 

D. S. Shukla & Co. and Chaturvedi & Partners, present auditors of the Company retire at 

the conclusion of the forthcoming Annual General Meeting and do not seek re-appointment. 

Notice has been received from a Shareholder proposing the appointment of M/s Chaturvedi & 

Shah, Chartered Accountants, Mumbai as Auditors of the Company. 

8. PERSONNEL: 

Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies 

(Particulars of Employees) Rules, 1975, as amended from time to time, forms part of this 

Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, 

the Report and Accounts are being sent to all Members excluding the Statement containing 

the particulars of Employees to be provided under Section 217(2A) of the Act. Any Member 

interested in obtaining such particulars may write to the Secretary at the Registered Office of 

the Company to inspect the same between 11:00 a.m. to 1:00 p.m. on all working days till the 

date of the Annual General Meeting. 

9. CONSERVATION OF ENERGY: 

The Company is maintaining its aircraft and other equipments as per International Standards 

and ensure overhauling the engine, Air – Frame and other components regularly according 

to the requirements laid down by the Director General of Civil Aviation and Generally follows 

International Aviation Standards. 

The Company uses latest technology aircraft in order to keep fuel consumption at the minimum 

level. 

Disclosure of particulars with respect to Conservation of energy in Form ‘A’ pursuant to the 

Companies (Disclosure of Particulars in the Board of Directors’ Report) Rules 1988 are not 

applicable to the Company. 

10. TECHNOLOGY ABSORPTION: 

The disclosure of particulars in respect to technology absorption in Form ‘B’ pursuant to the 

Companies (Disclosure of Particulars in the Board of Directors’ Report) Rules 1988 are not 

applicable to the Company. 

11. FOREIGN EXCHANGE EARNING & OUTGO: 

The particulars in respect to Foreign Exchange earning and outgo during the reporting period 

are as given in the Note no. 8.2 and 8.3 of Schedule S respectively. 

123

12. POST BALANCE SHEET EVENT 

FURTHER ISSUE OF CAPITAL 


The Company has issued 18 Crore (Eighteen Crore) Equity Shares for cash at par to the Holding 

Company, Jet Airways (India) Limited. 

13. DIRECTOR’S RESPONSIBILITY STATEMENT: 

The Board of Directors of Company, pursuant to requirement of section 217(2AA) of the 

Companies Act, 1956 hereby state and confirm that: 

i. The financial statements are prepared in conformance with the accounting standards 

issued by the Institute of Chartered Accountants of India and the requirements of the 

Companies Act, 1956, to the extent applicable 

ii. There are no material departures from prescribed accounting standards in the adoption of 

the accounting standards. The accounting policies used in the preparation of the financial 

statements have been consistently applied except as otherwise stated in the Notes to 

Accounts. 

iii. The Directors had taken proper and sufficient care for the maintenance of adequate 

accounting records in accordance with the provision of the Companies Act, 1956 for 

safeguarding the assets of the Company and for preventing and detecting fraud and 

other irregularities. 

iv. The Directors have prepared the Annual Accounts on a going concern basis. 

14. ACKNOWLEDGEMENTS: 

i. Your Directors place on record their appreciation for the contributions of the members 

of the Management Team and all employees for their continued hard work, dedication 

and commitment to maintaining the Company’s service standards, during the year under 

review. 

i. Your Directors place on record their appreciation for the support rendered by the Company’s 

General Sales Agents and their associates, Travel Agents and other members of the travel 

trade for their continued efforts in promoting the Company. 

iii. Your Directors also take this opportunity to thank the Ministry of Civil Aviation, Government 

of India, the Director General of Civil Aviation (DGCA), and the Airports Authority of India 

(AAI) for their support and guidance. Your Directors are also grateful to the Reserve 

Bank of India, the Ministry of Finance, Ministry of Company Affairs, the US Exim Bank, 

Financial Institutions and Banks, the Boeing Company, engine manufacturers and the 

lessors of our aircraft for their support, and look forward to their continued support. 

Date : 29th July, 2008 


For and on behalf of the Board of Directors 

NARESH GOYAL 

Chairman 

124

To The Members of 

JET LITE (INDIA) LIMITED 


1. We have audited the attached Balance Sheet of JET LITE (INDIA) LIMITED, as at March 31, 

2008, the Profit and Loss Account and also the Cash Flow Statement for the year ended on 

that date annexed thereto. These financial statements are the responsibility of the Company’s 

management. Our responsibility is to express an opinion on these financial statements based 

on our audit. 

2. We conducted our audit in accordance with the auditing standards generally accepted in India. 

Those Standards require that we plan and perform the audit to obtain reasonable assurance 

whether the financial statements are free of material misstatement. An audit includes examining, 

on a test basis, evidence supporting the amounts and disclosures in the financial statements. 

An audit also includes assessing the accounting principles used and significant estimates made 

by the management, as well as evaluating the overall financial statement presentation. We 

believe that our audit provides a reasonable basis for our opinion. 

3. As required by the Companies (Auditors’ Report) Order, 2003 issued by the Central 

Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, 

we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of 

the said Order. 

4. Attention is drawn to Note 5 of Schedule S. As indicated in the note, accumulated losses of 

the Company have resulted in to erosion of its net worth. However for the reasons explained 

in the said note, Company is confident of being able to continue and operate the business on 

a going concern and accordingly these financial statements have been prepared on a going 

concern basis. 

5. Further to our comments in the Annexure referred to above, we report that: 

Auditors‘ Report 

a. We have obtained all the information and explanations, which to the best of our knowledge 

and belief were necessary for the purposes of our audit; 

b. In our opinion, proper books of account as required by law have been kept by the Company 

so far as appears from our examination of those books; 

c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this 

report are in agreement with the books of account; 

d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement 

dealt with by this report comply with the Accounting Standards referred to in 

sub-section (3C) of Section 211 of the Companies Act, 1956; 

125


e. On the basis of written representations received from the directors, as on March 31,2008 

and taken on record by the Board of Directors, we report that none of the directors is 

disqualified as on March 31, 2008 from being appointed as a director in terms of clause 

(g) of sub-section (1) of Section 274 of the Companies Act, 1956; 

f. In our opinion and to the best of our information and according to the explanations given 

to us, the said accounts give the information required by the Companies Act, 1956, in 

the manner so required and give a true and fair view in conformity with the accounting 

principles generally accepted in India: 

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 

31,2008, 

ii. in the case of the Profit and Loss Account, of the loss for the year ended on that 

date; and 

iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that 

date. 

For D S SHUKLA & CO. For CHATURVEDI & PARTNERS 


ABHINAV PANT R N CHATURVEDI 


Membership No. 401630 Membership No. 92087 

Mumbai 


126


Annexure Referred to in Paragraph 3 of our report of even date 

i. a. The Company has maintained proper records showing full particulars including 

quantitative details and situation of fixed assets. 

b. During the year under review, fixed assets has been physically verified by the 

management and there is a regular programme of verification at reasonable intervals, 

which, in our opinion, is reasonable having regard to the size of the Company and the 

nature of business. Discrepancies noticed on such verification have been properly dealt 

with in the books of accounts. 

c. Fixed assets disposed off during the year were not substantial and therefore do not 

affect the going concern status of the Company. 

ii. a. The inventory has been physically verified during the year by the management. In our 

opinion, the frequency of verification is reasonable. 

b. The procedures of physical verification of inventories followed by the management are 

reasonable and adequate in relation to the size of the Company and the nature of its 

business. 

c. The Company is maintaining proper records of inventory. However system of recording 

inventories needs to be strengthened. The reconciliation process between the physical 

stocks and the book records is in progress. The Company does not expect any material 

discrepancies on completion of such reconciliation. 

iii. According to the information and explanations given to us during the year company has 

neither granted nor taken any loans, secured or unsecured to/from companies firms or 

other parties covered in the register maintained under Section 301 of the Act. Accordingly 

provisions of clause 4 (iii) (a) to (g) of the Companies (Auditors’ Report) Order, 2003 are not 

applicable to the company. 

iv. In our opinion and according to the information and explanations given to us, there exists 

an adequate internal control system commensurate with the size of the Company and the 

nature of its business with regard to purchases of inventory, fixed assets and with regard 

to the rendering of services. During the course of our audit, we have neither observed nor 

have been informed of any continuing failure to correct major weaknesses in internal control 

system of the Company. 

v. According to the information and explanations given to us, there were no contracts/ 

agreements that needed to be entered into the register required to be maintained under 

Section 301 of the Companies Act, 1956. 

vi. In our opinion and according to the information and explanations given to us, the Company 

has not accepted any deposits as defined under the provisions of section 58 and 58 AA or 

any other relevant provisions of the Companies Act, 1956 and the rules made there under. 

vii. In our opinion, the Company has an internal audit system commensurate with the size and 

nature of its business. 

viii. According to the information and explanations given to us, the Central Government has not 

prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 

209 of the Companies Act, 1956. Accordingly, provisions of clause 4 (viii) of the Companies 

(Auditors’ Report) Order, 2003 are not applicable to the Company. 

127


ix. a. The Company is generally regular in depositing with the appropriate authorities 

undisputed statutory dues including provident fund, investor education and protection 

fund, employees’ state insurance, income tax, sales tax, custom duty, service tax and 

cess and other material statutory dues applicable to. According to the information and 

explanation given to us, no undisputed amounts payable in respect of the aforesaid 

dues were outstanding as at March 31, 2008 for a period of more than six months from 

the date they become payable except the following: 

S. 

No 

Name of the 

Statute 

1. The Income Tax 

Act, 1961 

Nature 

of Dues 

Amount 

(Rs in lacs) 

Period to which 

the amount 

relates 

ITDS 43 April to June 

2007 

Due date Date of 

Payment 

7th of next 

month 

23rd June, 

2008 

b. According to the information and explanations given to us, there are no dues of 

income-tax, custom duty, service tax or cess which have not been deposited on account 

of any dispute except the following: 

S. 

No 

Name of the 

Statute 

Nature of Dues Amount 

(Rs in lacs) 

1 Income Tax Act Income Tax Assessment 

Demand 


Demand 


Demand 

Assessment 

Year 

Forum where 

dispute is 

pending 

9,914 2001-2002 CIT (A), 

New Delhi 

6,727 2002-03 CIT (A), 

New Delhi 

33,196 2004-05 CCIT, 

New Delhi 

4 Wealth Tax Act Wealth Tax Assessment 11 1999-2000 to 

2005-2006 

Total 49,848 

CIT (A), 

New Delhi 

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

Company has incurred cash losses in the financial year covered by our audit and in the 

immediately preceding financial year. 

xi. In our opinion and according to the information and explanations given to us, we are of the 

opinion that the Company has not defaulted in repayment of dues to any financial institution 

or bank. 

xii. In our opinion and according to the information and explanations given to us, the Company 

has not granted loans and advances on the basis of security by way of pledge of shares, 

debentures and other securities. 

xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/ society. 

Therefore the provisions of clause 4 (xiii) of the Companies (Auditors’ Report) Order, 2003 

are not applicable to the Company. 

128


xiv. According to the information and explanations given to us, the Company is not dealing or 

trading in shares, securities, debentures and other investments. Accordingly, the provisions 

of clause 4 (xiv) of the Companies (Auditors’ Report) Order, 2003 are not applicable to the 

Company. 

xv. 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. 

xvi. In our opinion, the term loans have been applied for the purpose for which they were 

raised. 

xvii. According to the information and explanations given to us and on an overall examination of 

the Balance Sheet of the Company, we report that no funds raised on short-term basis have 

been used for long-term investment. 

xviii. The Company has made allotment of preference shares to the holding Company. In our 

opinion, the price at which shares have been issued is not prejudicial to the interest of the 

Company. 

xix. The Company has not issued any debentures during the year. 

xx. The Company has not raised money through public issue of shares. Accordingly, the provisions 

of clause 4 (xx) of the Companies (Auditors’ Report) Order, 2003 are not applicable to the 

Company. 

xxi. To the best of our knowledge and belief and according to the information and explanations 

given to us, no fraud on or by the Company has been noticed or reported during the course 

of our audit. 

For D S SHUKLA & CO. For CHATURVEDI & PARTNERS 


ABHINAV PANT R N CHATURVEDI 


Membership No. 401630 Membership No. 92087 

Mumbai 


129



For D. S. SHUKLA & CO. For CHATURVEDI & PARTNERS 


Director 

Abhinav Pant R. N. Chaturvedi Saroj K. Datta 

Partner (Mem. No. 401630) Partner (Mem. No. 092087) Director 



Balance Sheet as at 31st March, 2008 

Schedule 

No. 

As at 

31st March, 

2008 

Rs. in lac 



As at 

31st March, 

2007 

Rs. in lac 


1. Shareholders’ Funds : 

a) Share Capital A 

Equity 12 27,612 

Preference 34,000 5,000 

b) Preference Share Application Money Pending Allotment - 29,000 

61,612 61,612 

c) Reserves and Surplus B 4,466 4,466 

66,078 66,078 

2. Loan Funds : 

a) Secured Loans C 55,276 12,455 

b) Unsecured Loans D 27,429 25,870 

82,705 38,325 

Total 148,783 104,403 


1. Fixed Assets : E 

a) Gross Block 12,465 12,664 

b) Less : Depreciation 5,392 4,896 

c) Net Block 7,073 7,768 

d) Capital Work-in-progress 7,931 3,775 

15,004 11,543 

2. Investments F 77 78 

3. Deferred Tax Assets (Refer Note 13 of Schedule S) 6,243 6,243 

4. Current Assets, Loans and Advances : 

a) Inventories G 7,468 8,876 

b) Sundry Debtors H 8,523 10,946 

c) Cash and Bank Balances I 10,323 15,165 

d) Loans and Advances J 23,738 15,819 

50,052 50,806 


a) Current Liabilities K 57,708 56,403 

b) Provisions L 3,325 2,154 

61,033 58,557 

Net Current Assets (10,981) (7,751) 

5. Profit & Loss Account 138,440 94,290 

Total 148,783 104,403 


130


Profit and Loss Account for the year ended 31st March, 2008 

INCOME : 




Director 





Schedule 

No. 

For the 

Year ended 

31st March, 

2008 

Rs. in lac 



For the 

Year ended 

31st March, 

2007 

Rs. in lac 

Operating Revenue M 148,905 199,661 

Non - Operating Revenue N 1,647 1,812 

Total 150,552 201,473 

EXPENDITURE : 

Employees Remuneration and Benefits O 19,693 25,196 


Selling and Distribution Expenses P 13,859 22,504 


(including Maintenance, Airport Charges, etc) 

Q 48,229 92,796 

Aircraft Lease Rentals 27,417 37,283 

Depreciation / Amortisation 575 1,086 

Interest and Finance Charges R 3,044 4,129 

Miscellaneous Expenditure written off - 4,345 

Total 194,514 270,245 

(LOSS) BEFORE TAXATION (43,962) (68,772) 

Tax Expenses 

Wealth Tax 2 2 

Fringe Benefit Tax 186 193 

(LOSS) AFTER TAXATION (44,150) (68,967) 

Balance Brought Forward (94,290) (25,323) 

BALANCE CARRIED TO BALANCE SHEET (138,440) (94,290) 

Earnings per share of Rs 10 each (Refer Note 12 of Schedule S) 

Basic (in Rupees) (16.00) (24.98) 

Diluted (in Rupees) (16.00) (24.98) 


131


Statement of Cash Flow for the year ended 31st March, 2008 

For the 

Year Ended 

31st March, 

2008 

Rs. in lac 

For the 

Year Ended 

31st March, 

2007 

Rs. in lac 


(Loss) before taxation 


(43,962) (68,772) 

Depreciation /Amortisation and Stock Obsolescence 814 2,928 

Provision for Impairment of assets - 879 

Loss on sale of Fixed assets (Net) 72 882 

(Profit) on sale of Investments - (16) 

Provision for Staff advances - 297 

Provision for bad-debts - 3,612 

Provision for doubtful advances and loans - 1,041 


Interest on Bank and Other Deposits (967) (745) 

Excess Provision no longer required - (42) 

Provision for Leave Encashment and Gratuity 306 - 

Exchange difference on translation (Net) (1,236) 588 

Bad Debts written off 176 - 

Sundry balances written off - 99 

Miscellaneous Expenditure written off - 4,819 

Operating (Loss) before working capital changes (41,753) (50,420) 

Changes in Inventories 1,169 4,715 

Changes in Sundry Debtors 2,447 (5,041) 

Changes in Loans and Advances (3,118) 5,024 

Changes in Current Liabilities and Provisions 2,214 29,051 

Cash generated from operations (39,041) (16,671) 

Direct Taxes paid (4,179) (559) 

Net cash used for operating activities (43,220) (17,230) 


Purchase of Fixed Assets (4,162) (3,830) 

Proceeds from sale of fixed assets 54 9 

Changes in Fixed Deposits with Banks (Refer Note below) 13,036 (13,036) 

Interest Received on Bank and Other Deposits 967 745 

Sale of Investments 1 2,304 

Net cash generated from / (used for) investing activities 9,896 (13,808) 

132






Director 





For the 

Year Ended 

31st March, 

2008 

Rs. in lac 



For the 

Year Ended 

31st March, 

2007 

Rs. in lac 

Net Increase / (Decrease) in Short Term Loans 4,574 (604) 

Proceeds from Long Term Loans during the year 40,120 - 

Repayment of Long Term Loans during the year (314) (23,354) 

Loan from Jet Airways (India) Limited - 8,000 

Interest paid (2,862) (4,010) 

Preference Shares application money - 29,000 

Net cash from financing activities 41,518 9,032 

Net change in cash (A + B + C) 8,194 (22,006) 

Cash and cash equivalents at beginning of the year 1,328 23,334 

Cash and cash equivalents at end of the year (Refer Note below) 9,522 1,328 

Note : 

Fixed Deposits with banks with maturity period of more than three months including interest accrued thereon and 

Fixed Deposits under lien are not included in Cash and Cash equivalents. 

133



As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

SCHEDULE A : 

SHARE CAPITAL 

Authorised 

400,000,000 (Previous Year 400,000,000) Equity Shares of Rupees 10/- each 40,000 40,000 

340,000,000 (Previous Year 340,000,000) Non-Cummulative Redeemable Convertible 

Preference Shares of Rupees 10/- each 

34,000 34,000 


Equity: 

276,115,409 Equity Shares (Previous Year 276,115,409) of Rs. 10/- each fully 

paid up 

[276,115,409 Equity shares are held by the Holding Company, Jet Airways (India) 

Limited and its nominee (Previous Year 217,685,658 equity shares held by Sahara 

India Commercial Corporation Limited, the erstwhile Holding Company )] 

Preference: 

340,000,000 (Previous Year 5,000,000) Non-Cummulative Redeemable Convertible 

Preference Shares of Rs. 10/- each fully paid up 

[340,000,000 Preference Shares are held by the Holding Company, Jet Airways 

(India) Limited (Previous Year 5,000,000 Preference Shares held by Sahara India 

Commercial Corporation Limited, the erstwhile Holding Company)] 

74,000 74,000 

27,612 27,612 

34,000 5,000 

Total 61,612 32,612 

SCHEDULE B : 


Securities Premium 


Total 4,466 4,466 

SCHEDULE C : 

SECURED LOANS 

From Banks: 

Rupee Loan (Secured by hypothecation of Inventory, Book Debts and Other 

movable Current Assets and Corporate Guarantee of Jet Airways (India) Limited, 

the Holding Company) 

From Others: 

15,000 11,984 

Rupee Loan (Secured by Specific assets financed by them) 156 471 

Foreign Currency Loan (Secured by Corporate Guarantee and pledge of 100% 

Equity Shares of the Company held by Jet Airways (India) Limited, the Holding 

Company) 

40,120 - 

Total 55,276 12,455 

SCHEDULE D : 



From Banks 5,000 - 

From Holding Company 18,000 - 

From Others [Rs. 4,429 lac (Previous Year N.A.) being Liability held in Trust as per 

Share Purchase Agreement, Refer Note 4 (ii) of Schedule S] 

4,429 25,870 

Total 27,429 25,870 

134


FIXED ASSETS Rs. in lac 

SCHEDULE - E 

N A T U R E O F A S S E T S GROSS BLOCK (At Cost / Valuation) DEPRECIATION/ AMORTISATION NET BLOCK 

As at 

31.03.2007 

As at 

31.03.2008 

Deductions Upto 

31.03.2008 

For the 

Year 

Upto 

31.03.2007 

As at 

31.03.2008 

Deductions/ 

Adjustments 

Additions 

during 

the Year 

As at 

01.04.2007 

TANGIBLE ASSETS 

Plant and Machinery 2 - - 2 - - - - 2 2 

Furniture and Fixtures 1,785 4 24 1,765 476 105 11 570 1,195 1,309 

Electrical Fittings 247 - 4 243 83 8 (2) 93 150 164 


Data Processing Equipments 910 - - 910 410 115 - 525 385 500 

Office Equipments 775 1 (3) 779 213 31 (3) 247 532 562 

Ground Support Equipments 838 1 13 826 233 31 1 263 563 605 

Vehicles 407 - 123 284 105 32 37 100 184 302 

Ground Support Vehicles 1,787 - 44 1,743 832 171 35 968 775 955 

Aircraft Airframes and Engines 1,197 - - 1,197 195 67 - 262 935 1,002 

INTANGIBLE ASSETS (Other than internally generated) 

Software 7 - - 7 3 2 - 5 2 4 

ASSETS HELD IN TRUST [Refer Note 4 (ii) of Schedule S] 

Building 329 - - 329 37 - - 37 292 292 

Helicopter 4,380 - - 4,380 2,309 13 - 2,322 2,058 2,071 

TOTAL 12,664 6 205 12,465 4,896 575 79 5,392 7,073 7,768 

PREVIOUS YEAR 15,676 339 3,351 12,664 5,433 1,086 1,623 4,896 7,768 10,243 

Capital Work in Progress including Capital Advances Rs.7,392 Lac ( Previous Year Rs.3,441 Lac) 7,931 3,775 

135

SCHEDULE F : 



INVESTMENTS (Non-Trade, At Cost) 

Long Term 

- Unquoted 

Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

Share Application Money in Sahara T.V. Ltd. Mauritius - 1 

Investment in Joint Venture 

[Rs. 77 lac (Previous Year N.A.) being Asset held in Trust as per 


77 77 

Total 77 78 

SCHEDULE G : 


i) Rotables, Consumable stores and tools 8,852 9,926 

Less : Provision for Obsolescence / Slow & Non-Moving items 

(Refer Note I (L) of Schedule S) 

[Includes Rs. 1,484 lac (Previous Year N.A.) value of Helicopter 

Inventories as Asset held in Trust as per Share Purchase Agreement, 

Refer Note 4 (ii) of Schedule S] 

1,736 1,497 

7,116 8,429 

ii) Fuel 43 44 

iii) Other Stores Items & Land 

[Includes Rs. 46.84 lac (Previous Year N.A.) value of Land as 

Asset held in Trust as per Share Purchase Agreement, Refer Note 

4 (ii) of Schedule S] 

309 403 

Total 7,468 8,876 

136

SCHEDULE H : 




(Unsecured considered good unless otherwise stated) 

Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

a) Debts (Outstanding for a period exceeding six months) 3,178 2,586 

b) Other Debts 8,957 11,972 

12,135 14,558 

Less : Provision for Doubtful Debts 3,612 3,612 

As At As At 

March 31, March 31 

NOTE : 2008 2007 

1) Considered good 8,523 10,946 

Considered doubtful 3,612 3,612 

12,135 14,558 

8,523 10,946 

Total 8,523 10,946 

SCHEDULE I : 


Cash on hand [includes cheques on hand Rs. Nil (Previous Year 

Rs. 115 lac)] 


97 216 

a) In Current Accounts 2,295 1,913 

b) In Fixed Deposits Account 7,646 12,894 

Add : Interest accrued 285 142 

7,931 13,036 

Total 10,323 15,165 

137



Rs. in lac 

As at 

31st March, 

2008 

Rs. in lac 

As at 

31st March, 

2007 

Rs. in lac 

SCHEDULE J : 



Loans 

- Considered Good 857 857 

- Considered Doubtful 244 244 

1,101 1,101 

Less: Provision for Doubtful Loan 

[Loan given to M/s. Prakash Industries Rs. 857 lac 

(Previous Year N.A.) being Asset held in Trust as per 


244 244 

857 857 

Advances Recoverable in Cash or in kind or for value to be 

Received 

- Considered Good 5,165 1,370 

- Considered Doubtful 705 1,002 

Less: Provision for Doubtful Advances 

[Includes Advance of Rs. 59.37 lac (Previous Year N.A.) for 

Inventory being Asset held in Trust as per Share Purchase 

Agreement. Refer Note 4 (ii) of Schedule S] 

5,870 2,372 

705 1,002 

Deposits with Airport Authorities and others 

5,165 1,370 

- Considered Good 3,602 3,469 

- Considered Doubtful 92 92 

3,694 3,561 

Less: Provision for Doubtful Deposit 92 92 

3,602 3,469 

Advance Tax & Tax deducted at Source (Net of Provisions) 14,114 10,123 

Total 23,738 15,819 

SCHEDULE K : 



Outstanding dues to Micro, Small & Medium Enterprises 

(Refer Note 21 of Schedule S) 

Others [Includes Rs. 99.53 lac (Previous Year N.A.) being 

Liability held in Trust as per Share Purchase Agreement, Refer 

Note 4 (ii) of Schedule S] 

- - 

29,667 33,375 

29,667 33,375 

Payable to Holding Company [Maximum amount outstanding is 

Rs. 16,010 lac] 

6,465 - 

Payable to erstwhile Holding Company - 2,929 

Other Current Liabilities 15,048 14,489 

Interest Accrued but not due on loans 184 2 

Forward Sales (net) (Passenger / Cargo) 4,933 4,510 

Balance with Banks - overdrawn as per books 1,411 1,098 

Total 57,708 56,403 

SCHEDULE L : 

PROVISIONS 

Gratuity (Refer Note 6 of Schedule S) 477 6 

Leave Encashment 261 63 

Others 2,587 2,085 

Total 3,325 2,154 

138



Rs. in lac 

For the 

Year Ended 

31st March, 

2008 

Rs. in lac 

For the 

Year Ended 

31st March, 

2007 

Rs. in lac 

SCHEDULE M : 


Passenger 143,255 191,020 

Less: Service Tax 138 37 

143,117 190,983 

Excess Baggage 642 2,023 

Cargo 2,603 4,383 

Less: Service Tax 57 - 

2,546 4,383 

Other Revenue 2,600 2,272 

Total 148,905 199,661 

SCHEDULE N : 



(Tax Deducted at Source Rs. 227 lac (Previous Year Rs. 155 lac) 

967 747 

Exchange difference (Net) 387 - 

Profit on Sale of Current Investments (Net) - 16 

Provision for aircraft maintenance no longer required - 42 

Other Income 293 1,007 

Total 1,647 1,812 

SCHEDULE O : 


Salaries, Wages, Bonus and Allowances 17,963 22,572 

Contribution to Provident Fund and ESIC 229 440 

Provision for Gratuity 93 66 

Provision for Leave Encashment 213 50 

Staff Welfare Expenses 1,195 2,068 

Total 19,693 25,196 

139



Rs. in lac 

For the 

Year Ended 

31st March, 

2008 

Rs. in lac 

For the 

Year Ended 

31st March, 

2007 

Rs. in lac 

SCHEDULE P : 

SELLING AND DISTRIBUTION EXPENSES 

Computerised Reservation System Cost (Net) 5,554 5,916 

Commission 7,850 13,756 

Others 455 2,832 

Total 13,859 22,504 

SCHEDULE Q : 


Aircraft Variable Rentals 9,173 9,744 

Aircraft Insurance and Other Insurance 2,238 4,100 

Landing, Navigation and Other Airport Charges 12,658 13,374 

Aircraft Maintenance (including Customs Duty and Freight, where 

applicable) 

Component Repairs, Recertification, Exchange, 

Consignment Fees and Aircraft Overhaul 7,653 33,257 

Lease of Aircraft Spares including Engine 1,118 2,066 

Provision for Spares Obsolescence 239 1,497 

9,010 36,820 

Inflight and Other Pax Amenities 4,470 6,576 

Communication Cost (Net) 2,648 3,363 

Travelling and Subsistence 3,384 5,544 

Rent 1,585 2,098 

Rates and Taxes 12 23 


- Leased Premises 11 - 

- Others 323 400 

334 400 

Electricity 208 219 

Bad Debts Written off 176 4,950 

Exchange difference (Net) - 681 

Loss on scrapping of Fixed Asset (Including Aircraft Parts) - 33 

Loss on sale of Fixed Assets other than Aircraft (Net) 72 1,728 

Miscellaneous Expenses (Including Professional Fees, Audit Fees, 

Printing and Stationery, Cargo Handling and Bank Charges etc.) 

2,261 3,143 

Total 48,229 92,796 

SCHEDULE R : 


- On Fixed Loan 3,003 4,129 

- Others 41 - 

3,044 4,129 

Total 3,044 4,129 

140


SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS 

I. SIGNIFICANT ACCOUNTING POLICIES 


A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS: 

The financial statements have been prepared on an accrual basis under the historical cost convention and 

are in accordance with the generally accepted accounting principles in India, the applicable accounting 

standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies 

Act, 1956. 

B. USE OF ESTIMATES: 






C. REVENUE RECOGNITION: 







D. COMMISSION: 



E. EMPLOYEE BENEFITS: 

a) Defined Contribution plan: Company’s contribution paid/payable for the year to defined contribution 

retirement benefit schemes are charged to Profit and Loss Account. 

b) Defined 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 recognised in the Profit and 

Loss account in the period of occurrence of such gains and losses. Past service cost is recognised 

immediately to the extent of benefits are vested, otherwise it is amortised on straight-line basis over 

the remaining average period until the benefits become vested. 



c) Short Term Employee Benefits: Short-term employee benefits expected to be paid in exchange for 


services. 

F. FIXED ASSETS: 

a) TANGIBLE ASSETS: 




141


Capital Work in progress comprises advances paid to acquire fixed assets and the cost 

of fixed assets not ready for their intended use as at the reporting date of the 

financial statements. 

b) INTANGIBLE ASSETS : 





c) ASSETS TAKEN ON LEASE : 

Operating Lease: Rentals are expensed with reference to the Lease Term and other 


G. IMPAIRMENT OF ASSETS : 





H. DEPRECIATION / AMORTISATION : 

Depreciation on assets is being provided on the ‘Straight Line Method‘ in accordance with the provisions 

of Section 205(2)(b) of the Companies Act, 1956 and in the manner and at the rates specified in Schedule 

XIV to the Companies Act, 1956. 

I. INVESTMENTS : 


at cost. Provision for diminution in the value of long-term investments is made only if such a decline is 


J. BORROWING COSTS : 


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 recognised as an expense in the period in which they 

are incurred. 

K. FOREIGN CURRENCY TRANSACTIONS / TRANSLATION : 

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing 


(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. 

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 Profit and Loss Account. 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 amortised as income/expense over the life 

of contract. 

(c) Any exchange gain or loss on account of exchange differences either on settlement or on translation 


142

L. INVENTORIES : 


Intories are valued at cost or Net Realisable 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 aircraft derived from Schedule XIV of the Companies Act, 

1956 and also provisioning for non – moving / slow moving items. 

M. AIRCRAFT MAINTENANCE and REPAIRS COST : 


as incurred except where such overhaul cost in respect of Engines/ APU are covered by third party 


N. TAXES : 



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 recognised and carried forward only to the extent that there is a reasonable / virtual 

certainty, as the case may be, that the asset will be realised in future. 



O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS : 





II. NOTES TO ACCOUNTS 


for : 

2. CONTINGENT LIABILITY : 

Tangible Assets Rs. 163,945 lac (Previous Year - Rs. 182,475 lac) 

(a) Unprovided Income Tax demands which are under appeals Rs. 49,838 lac (Previous Year 

Rs. 21,458 lac). 

(b) Unprovided claims against the Company, pending Civil and Consumer suits of Rs. 2,131 lac 

(Previous Year Rs. 779 lac). 

(c) Letters of Credit outstanding are Rs. 6,010 lac (Previous Year Rs. 18,601 lac) and Bank Guarantees 

outstanding are Rs. 2,337 lac (Previous Year Rs. 4,585 lac). 

(d) The Service Tax Authorities have summoned various officials of the company with regard to the 

advertisement income, received by the Company for the years upto 31st March, 2007. The matter is 

still being investigated and the Management does not expect a materially adverse impact on financial 

conditions of the Company. 

(e) 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. 

143


3. Prior Period Expenses under their respective head of accounts (net of Income) included in the 

determination of the Net (Loss) are as under : 


Particulars 2007-08 2006-07 

Expenditure 

Employee Remuneration and Benefits 11.42 56.65 

Other Operating Expenses 23.37 451.32 

Selling and Distribution expenses - 7.95 

Total Expenditure 34.79 515.92 

Incomes 

Non Operating Revenue 1.45 211.21 

Operating Revenue - 42.88 

Total Income 1.45 254.09 

Net Expenses (net of Income) 33.34 261.83 

4. i) On 20th April, 2007, 100% shares of the Company formerly known as Sahara Airlines Limited 

has been acquired by the holding Company Jet Airways (India) Ltd. Consequently, Jet Lite 

(India) Limited (formerly known as Sahara Airlines Limited) is 100% subsidiary of Jet Airways 

(India) Limited. 

ii) As per the terms of the Share Purchase Agreement (SPA), the following assets are proposed 

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

consideration agreed upon in the SPA. The assets have not been transferred during the current 

year and no depreciation has been charged on the applicable assets after 20th April, 2007. The 

Management envisages no significant profit / loss on account of the proposed transfer of the 

following assets / liabilities not taken over: 

• Buildings 

5. Going Concern 

• Helicopters including helicopter inventory 

• Investment in Joint Venture 

• Land held as inventory 

• Loan to Prakash Industries Ltd. 

• Advances to suppliers against Helicopter inventory 

• Loan from Others (erstwhile Holding Company - Sahara India Commercial Corporation 

Limited) 

• Sundry Creditors 

As at the year end, the accumulated losses of the Company aggregating to Rs. 138,440 lac have 

resulted in to erosion of the net worth of the Company. However in view of decrease in the cash 

losses, implementation of the business plan/ finance plan supported by the parent Company and 

expected cash inflows from future operations, the Company is confident of being able to continue 

and operate the business as a going concern and accordingly these financial statements have been 

prepared on a going concern basis. 

144

6. Employee Benefits 

(a) Defined contribution plans 




The Company recognised Rs. 187 lac (Previous year Rs. 390 lac) for provident fund contributions 

in the Profit and Loss account. 

(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: 


service. 




obligation for gratuity and leave encashment were carried out at March 31,2008 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 leave encashment and the 

amounts recognised in the Company’s financial statements as at March 31, 2008. 

Sr. 

No 

Particulars 


Gratuity 

(Non-Funded) 

As on 

31.03.2008 

I) Reconciliation of projected benefit obligations (PVO) – 

defined benefit obligation : 

Current Service Cost 92 

Interest Cost 31 

Actuarial (gain) / losses 

Benefits paid 

Past service cost 

(30) 

PVO at the beginning of the year 384 

PVO at the end of the year 477 

II) Net cost for the year ended March 31,2008 : 

Current Service cost 92 

Interest cost 31 

Actuarial (gain) / losses (30) 

Net cost 93 

III) Assumption used in accounting for the gratuity plan: 

Discount rate (%) 8 

Salary escalation rate (%) 7.50 

145

Sr. 

No 



Leave 

Particulars 

Encashment 

As on 

31.03.2008 

PVO at the beginning of the year 63 

PVO at end of the year 261 

Expenses for the year 213 

Assumption used in accounting for the gratuity plan: 

Discount rate (%) 8.00 

Salary escalation rate (%) 7.50 

The company has adopted the Accounting Standard -15 (AS-15) (Revised 2005) with effect 

from April 1, 2007. Upto March 31, 2007, the Company had been contributing into a Gratuity 

Fund Trust administered by the erstwhile management. Liability aggregating to Rs. 384 lac 

upto March 31, 2007 is recoverable from the Gratuity Fund Trust. Management believes that 

the Company need not provide for any gratuity liability relating to period prior to March 31, 

2007. 

7. PAYMENT TO AUDITORS (Including Service Tax) : 


Particulars 2007-08 2006-07 

(a) As Audit Fees 20.22 20.22 

(b) As Advisor or in any other capacity in respect of: 

Tax Matters Nil Nil 

(c) In any other manner 

Other Certification, etc 19.43 19.43 

Total 39.66 39.66 

8. Additional information pursuant to paragraphs 3, 4C and 4D of Part II of Schedule VI of the Companies 

Act, 1956. 

8.1 Value of imports calculated on CIF Basis: 


Particulars 2007-08 2006-07 

Components and Spares 15,500 3,288 

Capital Goods Nil Nil 

8.2 Earnings in Foreign Exchange: 


Particulars 2007-08 2006-07 

Passenger and Cargo Revenue 5,611 18,335 

Sale of Aircraft Nil Nil 

Interest on Bank Account Nil Nil 

Other Income Nil 515 

146

8.3 Expenditure in Foreign Currency: 



Particulars 2007-08 2006-07 

Aircraft Lease Rentals (Net) 35,462 47,140 

Communication (Gross) 2,159 2,519 

Aircraft Overhaul, Maintenance and Component 

Support Services (Net of R 

4,196 12,217 

Commission 187 --- 

Fuel Cost 735 2,830 

Landing and Navigation Charges 245 750 

Traveling 80 1,038 

Advertisement and Sales Promotion Nil 1115 

Ground and Cargo Handling 822 1,647 

Professional / Consultancy 534 1,458 

Engine Lease Rentals 2,239 1,726 

Computerised Reservation system 5,554 5,768 

Training and Manpower Development 392 475 

Others 1,936 480 

8.4 Value of Components and Spare Parts Consumed: 

9. SEGMENT REPORTING : 


Particulars 2007-08 % 2006-07 % 

Imported 2703 99 1,556 77.18 

Indigenous 19 1 460 22.82 

Total 2722 100 2,016 100 









unallocated which are mainly employee remuneration and benefits, other selling & distribution 



used interchangeably. The company believes that it is not practical to provide segment disclosures 



147


The Company believes that it is not practical to identify fixed assets used in the company’s business or 



made. 



Passenger and Cargo Revenue (Including 

Excess Baggage) 

131,623 9,300 140,923 

Segment result 40,144 4,380 44,524 

Less: Un-allocable expenses 95,071 

Add: Un-allocable revenue 4,247 

(Loss) before Interest and tax (-)40,918 


(Loss) before tax (-)43,962 

Tax Expenses 

188 

(Loss) after tax (-)44,150 






The proportion of International operations revenue to the total revenue was insignificant during the 

previous year and therefore has not been reported separately. 

10. 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: 



Jet Airways (India) Limited Holding company 

(ii) List of Related Parties with whom no transactions have taken place and Relationships : 


Tail Winds Limited Ultimate Holding company 

(Holding Company of Jet Airways (India) 

Limted) 

Naresh Goyal 

Controlling 

Limited 

Shareholders of Tail Winds 

(iii) List of Key Managerial Personnel with whom no transactions have taken place and 

Relationship: 


S.K.Datta Director 

148


(iv) Transactions during the year ended 31st March, 2008 and balances with related parties : 

Transactions during the year: 


Holding 

Company 

Income / Expenses 

- Equipment Hire Charges 771 

(N.A) 

- Other Hire Charges 256 

(N.A) 

- Reimbursement of Expenses (-)421 

(N.A.) 

Closing Balance 

- Unsecured Loan (-)18,000 

(N.A.) 

- Advances (-)6,465 

(N.A.) 

- Corporate Guarantee given by the Holding Company on behalf the 

Company 

(-)55,120 

11. The Company has entered into Operating Lease agreements. As required under the Accounting Standard 19 

on ‘Leases’ issued by the Institute of Chartered Accountants of India, the future minimum lease payments 

of lease are as follows: - 

Operating Leases 

(1) The Company has taken various residential / commercial premises under cancellable operating leases. 

These lease agreements are normally renewed on expiry. 

(2) The Company has taken Aircrafts and Spare engines on operating Lease against which Lease Rental 

expense (Fixed and Variable) recognized is Rs. 37,708 Lac (Previous Year Rs. 45,671 lac). The future 

minimum lease payments under these lease as at 31st March, 2008 are as under : 



Payments 



Between 1 and 5 years 

108,566 

More than 5 years 

24,125 

173,951 

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. 

149


• 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. 



• 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. 

(3) The Company has given assets on lease under operating lease on or after 01.04.2001 which is in the 

nature of ‘Cancelable Lease’. The relevant information is as under: 


Details of Leased Assets (Vehicles): 2007-08 2006-07 

Cost of acquisition 41 52 

Accumulated Depreciation 11 10 

Depreciation of Rs.4 lac (Previous Year Rs.4 lac) has been debited to Profit and Loss Account on the 

above leased assets. 



Per Share” issued by the Institute of Chartered Accountants Of India, is as under: 


2007-08 2006-07 

Net Loss after tax (44,150) (68,967) 

Add : Preference Dividend NIL NIL 

Loss attributable to Equity Shareholders ((A) (44,150) (68,967) 

No. of Equity Shares outstanding during the year (B) 276,115,409 276,115,409 

No of Equity Share Resulting from conversion of convertible 

Preference Share 

NIL 50,000,000 

Nominal Value of Equity Shares (Rs.) 10 10 

Basic EPS (Rs.) (E = A/B) (16.00) (24.98) 

Diluted EPS (Rs.) (F = A/B) (16.00) (24.98) 

13. The Deferred Tax Assets as at 31st March 2008 comprises of the following: 


Particulars 


2007-08 2006-07 

Related to Fixed Assets 716 2,533 

Related to Other Expenses 


– 1,622 

Unabsorbed Depreciation 4,388 3,228 

Business Loss – 7,149 

Other Disallowances under Income Tax Act, 1961 2,571 21 

Deferred Tax Asset (Net) 6,243 6,243 



150


14. Other Liabilities include Rs. 3,708 lac, appropriated by the Holding company from the payment of installment 

to the Selling Shareholders of the company, towards Payment made to the Income Tax Department on 

account of Tax demands raised by it in respect of earlier years 

15. Frequent Flyer Programme : 

The Holding Company has 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 are 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 

is accounted considering the members’ accumulated mileage on an incremental cost basis. 

16. As per (AS) 29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered 

Accountants of India, given below are movement in provision for Redelivery of Aircraft. 

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. 


Particulars 2007-08 2006-07 

Opening Balance 2,066 - 

Add:- Additional Provisions during the year 683 2,066 

Less:- Adjustments on account of Exchange Fluctuations (162) - 

Less:- Unused Amounts reversed during the year 


The cash outflow out of the above provisions as per the current terms under the lease agreements are as 

under: - 


2008-09 2 327 

2009-10 1 130 

2010-11 13 1,582 

2011-12 1 82 

2012-13 3 292 

2013-14 2 101 

2014-15 3 72 

Total 2,586 

151


17. Balances in Sundry Debtors, Creditors and Loans and Advances are subject to confirmation. 


the statutory authorities regarding non levy of Fringe Benefit Tax on free/ concessional tickets issued by 

the airline companies, no provision for the same has been made upto 31.03.2008 in the books of accounts 

amounting to Rs 466 lac (Previous Year Rs. 225 lac). 

19. Fixed Deposits of Rs. 7,646 lac (Previous Year Rs. 12,894 lac ) as shown in the Balance Sheet includes 

Fixed Deposits of Rs.7,646 lac (Previous Year Rs.12,439 lac) which are under the lien of the Bankers and 

Government Authorities. 

20. The company is a member in Joint Venture – Sahara States, Bhopal, for Joint Development of Housing 

Projects and being a part of carved out assets (as stated in point no. 4 (ii) above), and adjustment in 

respect of its share of assets, liabilities and Income and Expenses has not been considered necessary by 

the management. 

21. The company has not received any information from vendors regarding their status under the Micro, Small 

and Medium Enterprises Development Act, 2006 and hence disclosures relating to amount unpaid as at 

the year end together with interest paid/payable under this Act have not been given as required by Part I 

of Schedule VI to the Companies Act, 1956. 

22. Comparative financial information (i.e. amounts and other disclosures for the previous year presented 

above as corresponding figures), is included as an integral part of the current year’s financial statements, 

and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of 

the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the 

current year. 





Director 







152

I) Registration Details 


Registration No.- U 6 2 1 0 0 U P 1 9 9 I P L C O 1 3 5 2 7 

Balance-sheet Date 3 1 0 3 2 0 0 8 State Code - 1 1 

Date Month Year 

II) Capital Raised during the year (Amount in Rs. Thousands) 

Public Issue - N I L Rights Issue - N I L 

( N I L ) ( N I L ) 

Bonus Issue - N I L Private Placement N I L 

( N I L ) ( N I L ) 

III) Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) 

Total Liabilities 1 4 8 7 8 3 0 0 Total Assets 1 4 8 7 8 3 0 0 

(1 0 4 4 0 3 0 0) (1 0 4 4 0 3 0 0) 

Sources of Funds - 

Paid-up Capital 6 1 6 1 2 0 0 Reserves & 

Surplus 

4 4 6 6 0 0 

( 3 2 6 1 2 0 0 ) ( 4 4 6 6 0 0 ) 

Secured Loans 5 5 2 7 6 0 0 Unsecured 

Loan 

2 7 4 2 9 0 0 

( 1 2 4 5 5 0 0 ) ( 2 5 8 7 0 0 0 ) 

Deferred Tax Assets 6 2 4 3 0 0 

( 6 2 4 3 0 0 ) 

Application of Funds 

Net Fixed Assets 7 0 7 3 0 0 Investment 7 7 0 0 

( 7 7 6 8 0 0 ) ( 7 8 0 0 ) 

Net Current Assets ( - ) 1 0 9 8 1 0 0 Misc. 

Expenditure 

Accumulated 

Losses 

Balance Sheet Abstract and Company’s General Business Profile 

( - ) (7 7 5 1 0 0 ) 

1 3 8 4 4 0 0 0 

( 9 4 2 9 0 0 0 ) 

N A 

153

IV. Performanc of Company (Amount in Rs. Thousands) 

Turnover 1 5 0 5 5 2 0 0 Total 

Expenditure 

Profit / (-) Loss 

Before Tax 

Earning per share in 

Rupees 


1 9 4 5 1 4 0 0 

( 2 0 1 4 7 3 0 0 ) ( 2 7 0 2 4 5 0 0 ) 

( - ) 4 3 9 6 2 0 0 Profit / Loss 

After Tax 

( - ) 4 4 1 5 0 0 0 

( - ) (6 8 7 7 2 0 0 ) ( - ) (6 8 9 6 7 0 0 ) 

( - ) 1 6 . 0 0 Dividend @ % 

Equity 

N I L 

( - ) (2 4 . 9 8 ) ( N I L ) 

(Fugures in brackets indiates 31st March,2007 figures) 

V. Generic Name of Three Princal Products of Compauay (as per moneratary temrs) 

Preference N I L 

Item Code No. (ITC Code) N O T A P P L I C A B L E 



( N I L ) 



Director 


Director 



154

# 

JET AIRWAYS (INDIA) LIMITED 

Regd. Office: S.M. Centre, Andheri-Kurla Road, Andheri (East), Mumnbai - 400 059. 

ATTENDANCE SLIP 

16th Annual General Meeting 

PLEASE FILL THE ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL. 

Joint shareholders may obtain additional slip on request. 

DP ID No. ________________________ Regd. Folio / Client ID No.:________________________ 

I am / We are registered shareholder(s) / proxy for the registered shareholder(s) of the company and hereby record my / our presence at 

the Sixteenth Annual General Meeting of the Company held on Monday, 29th September, 2008 at 3:30 p.m. at Nehru Center Auditorium, 

Discovery of India Buildng, Dr. Annie Besant Road, Worli, Mumbai - 400 018. 

NAME OF THE SHAREHOLDER / PROXY (IN BLOCK LETTERS) SIGNATURE OF THE SHAREHOLDER / PROXY 

Note: Shareholder / Proxy Holder wishing to attend the Meeting must bring the Attendance Slip to the Meeting and handover the same 

at the entrance, duly signed. 

JET AIRWAYS (INDIA) LIMITED 

Regd. Office: S.M. Centre, Andheri-Kurla Road, Andheri (East), Mumnbai - 400 059. 

PROXY 

16th Annual General Meeting 

I / We ......................................................................................................... of ............................................................................................ 

in the disrict of .......................................................................................................................................... being a Member / Members of 

Jet Airways (India) Limited, Mumbai, hereby appoint ............................... of ....................................... in the district of ......................... 

.....................................or failing him / her, .................................... of ...................................... in the district of .............................. as 

my/our proxy to attend and vote for me / us and on my / our behalf at the Sixteenth Annual General Meeting of the Company to be held 

on Monday, 29th September, 2008 at 3:30 p.m. at Nehru Center Auditorium, Discovery of India Buildng, Dr. Annie Besant Road, Worli, 

Mumbai - 400 018. 

Signed this ........................................... day of ........................................... 2008 

Regd. Folio / Client ID No. : 

DP ID No. : 

No. of Shares : 

Signature : 

Affix 

Revenue 

Stamp of 

Rs. 1.00 

# 

Note : The Proxy completed in all respects must be deposited at the Registered Office of the Company not less than 48 hours before 

the time of holding of the Meeting.

Jetwings intl & Domestic

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