1-air india book-2017-2018 · nancial statements and in preparing the opening ind as balance sheet...

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NOTE: A

Accounting Policies forming part of the IND AS Financial Statements of Air India Ltd for the year ended 31 March 2018

(Rupees in millions except otherwise stated)

1. Company Information / Overview

Background

Air India Ltd, (a Government of India Company) is a company incorporated in India, registered under the Companies Act, 1956. The company provides domestic and international air transport services, which includes mainly passenger and cargo services and other related services. The aircraft eet of the company consists of a wide range of aircrafts. The registered ofce of the company is situated at Airlines House, 113, Gurudwara Rakabganj Road, New Delhi -110001

2. Basis of preparation of Financial Statements

(i) Statement of Compliance

st The Standalone Financial Statements of the company for the year ended 31 March 2018 have been prepared in accordance with Indian Accounting Standards (Ind AS) pursuant to the notication issued by Ministry of Corporate Affairs dated 16 February 2015, notifying the Companies (Indian Accounting Standards) Rules, 2015, relevant provisions of the Companies Act 2013 (the Act) and other accounting principles generally accepted in India.

These Standalone Financial Statements are the rst nancial statements prepared in accordance with Ind AS as notied under the Companies Act 2013. The date of transition to the

stInd AS is 1 April 2016. Details of exemptions and exceptions availed by the company in preparing the rst nancial statements are given in the Note No. 27.

(ii) Basis of measurement

The standalone nancial statements have been prepared under the historical cost convention on accrual basis except for certain nancial assets and liabilities which are measured at fair value or amortized cost at the end of each nancial year.

(iii) Critical Accounting Estimates /Judgments

In preparing these standalone nancial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates where necessary are recognized prospectively.

Signicant areas of estimation and judgments (as stated in the respective Accounting Policies) that have the most signicant effect on the Financial Statements are as follows:

a) Impairment of Assets

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b) Estimate of revenue recognition from “Forward Sales Account”

c) Measurement of useful life and residual values of property, plant and equipment and the assessment as to which components of the cost may be capitalized

d) Basis of classication of a Property as Investment Property

e) Basis of classication of Non-Current Assets held for sale

f) Estimation of Costs of Re-delivery

g) Recognition of Deferred Tax Assets

h) Recognition and measurement of dened benet obligations

i) Judgment required to ascertain lease classication

j) Measurement of Fair Values and Expected Credit Loss (ECL)

k) Judgment is required to ascertain whether it is probable or not that an outow of resources embodying economic benets will be required to settle the taxation disputes and legal claim.

(iv) Operating cycle & Classification of Current & Non Current

Presentation of assets and liabilities in the nancial statement has been made based on current / non-current classication provided under the Company Act 2013. The Company being in service sector, there is no specic operating cycle; however, 12 months period has been adopted as “the Operating Cycle” in-terms of the provisions of Schedule III to the Companies Act 2013. Accordingly, current liabilities and current assets include the current portion of non-current nancial liabilities and assets.

3. Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these nancial statements and in preparing the opening Ind AS Balance Sheet as at 1 April 2016 for the purposes of the transition to Ind AS.

I. Property, Plant and Equipment (PPE)

a) Property, plant and equipment are stated at cost including incidental costs incurred pertaining to the acquisition and bringing them to the location for use and interest on loans borrowed where ever applicable, upto the date of putting the concerned asset to its working condition for its intended use.

b) Signicant parts which meet the denition of property, plant and equipment (i.e. Aircraft Rotables, Repairables (with Serialized Control) including the major cost incurred on modernization / modication / conversion of aircraft and engines) have been capitalized as a separate component.

c) Assets under leases, in respect of which substantially all the risks and rewards of ownership are transferred to the Company, are considered as 'Finance Leases' and are capitalized.

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d) Physical Verication of Assets

Physical Verication of Assets is done on a rotational basis so that every asset is veried in every two years and the discrepancies observed in the course of the verication adjusted in the year in which report is submitted and nalized.

II. Depreciation / Amortization

a) Depreciation is provided on straight-line method over the useful life of the Property, plant and equipment as prescribed in the Schedule II of the Companies Act 2013 (except as otherwise stated), keeping a residual value of 5% of the original cost. Depreciation method, useful lives and residual value are reviewed by the management at each year end.

b) On the basis of technical assessment, the useful life of B-777 and A-320 family aircraft (procured from 2006-07 onwards) are considered as 25 years (instead of the life of 20 years as prescribed under Schedule II of the Companies Act 2013) keeping a residual value of 5% of the original cost.

c) In the case where life of the Property, plant and equipment, has not been prescribed under Schedule II of the Companies Act 2013 the same have been determined by technically qualied persons and approved by the Board of Directors keeping a residual value of 5% of the original cost as under :

1. Rotables :

(i) Aircraft Rotables relating to Airbus family are depreciated over the residual average useful life of the aircraft eet relating to the respective family and of the respective engineering base, from the relevant year of purchase.

(ii) Aircraft Rotables relating to Boeing are depreciated over the residual average useful life of the related aircraft eet from the relevant year of purchase.

2. Aircraft Repairables:

Repairables which are serially controlled, are treated as Property, Plant & Equipment and accordingly are amortized over a period of 10 years (in case of post migration) and 5 years (in case of pre-migration) from the date of its purchase unless scrapped earlier.

d) In respect of operating leases of aircraft/engines in which the company acquires, a residual right in the aircraft by paying a termination/release sum, such amount is treated as PPE and amortized over the remaining useful life of the aircraft/engines determined by ying hours.

e) Major overhaul costs relating to engine and airframe are identied as separate components for owned aircrafts and aircrafts under nance lease and are depreciated over the expected lives between major overhauls.

f) Cost incurred on major modications/refurbishment, modernization/conversion carried to owned and leased assets are depreciated over the useful life/period of lease of the asset.

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g) Leasehold property, plant and equipment :

Leasehold Property, plant and equipment (including land other than perpetual lease) is amortized over the period of lease.

III. Non- Current Assets held for Sale

Assets are classied as held for sale if it is highly probable that they will be recovered primarily through sale in its present condition rather than through continuing use. The net book value of such assets, are transferred from the block of xed assets to “Assets held for Sale” at lower of the carrying value or Fair Value less cost to sell. No depreciation is provided, once the asset is transferred to Assets Held for Sale.

IV. Investment Properties

Investment Properties are properties held to earn rentals and / or for capital appreciation. Investment properties are measured initially at cost including transaction cost, Subsequently, Investment property are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is provided as per Note No II. Any gain or loss on disposal is recognized in Statement of Prot & Loss.

V. Intangible Assets

Intangible assets are recorded at cost of acquisition including incidental costs related to acquisition and installation and are carried at cost less accumulated amortization and impairment losses, if any.

Intangible assets which have nite useful lives are amortized on straight line method over the estimated useful life, which is reviewed by the management every year i.e.

a) Software of Passenger Services System, over 10 years, and

b) Other software/website, over 5 years.

VI. Leases

(i) Finance lease

a) A lease is classied as nance lease or operating lease at the inception date. Leases of property, plant and equipment that transfer to the Company substantially all of the risks and rewards of ownership are classied as nance lease.

b) Assets held under nance lease are initially capitalized at the fair value at the inception of lease or at the present value of the minimum lease payments whichever is lower.

c) Minimum lease payments made under nance lease are apportioned between the nance costs and the reduction of the outstanding liability treated as loan. The nance cost is allocated to each period during the lease term. However, if they are directly attributable to qualifying assets, then they are capitalized in accordance with the company's general policy on borrowing cost.

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(ii) Operating Lease

a) Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased assets are classied as Operating Lease.

b) Lease payments in respect of assets taken on operating lease are charged to the Statement of Prot and Loss on a straight line basis over the period of the lease unless the payments are structured to increase in line with the expected general ination to compensate the lessors expected inationary cost increases. Any change in the lease terms are accounted prospectively over the remaining term of lease.

c) Contributions made to lessors on account of Maintenance Reserve for which, maintenance is expected to arise during the lease period is treated as Expense.

d) The Company has in its eet, aircrafts on operating lease. As contractually agreed under the lease contracts, the aircraft have to be redelivered to the lessors at the end of the lease term under stipulated contractual return conditions. The redelivery costs are estimated by management based on historical trends and data, and are charged to Statement of Prot & Loss in proportion to the expired lease period. These are recorded at the discounted value, where effect of the time value of money is material.

(iii) Sale and Lease Back (SLB) Transactions

Prot or losses arise on sale at fair value and leaseback transactions of asset resulting in an operating lease of such assets, are recognized immediately in the statement of Prot and Loss. Where the sale price is below fair value, any prots/ losses are immediately recognized in the Statement of Prot and Loss except where the loss is compensated by future lease payments at below market price. In such cases loss is deferred and amortized in proportion to the lease payments over the initial period for which the asset is expected to be used. In the case where the sale price is above fair value of the asset, the excess over fair value is amortized over the initial period of the lease period for which the asset is expected to be used.

VII. INVENTORIES

a) Inventories primarily (include) consists of stores and spares and loose tools (other than those which meet the criteria of property, plant and equipment). Cost of inventories comprise all costs of purchase after deducting non refundable rebates and discounts and all other costs incurred in bringing the inventories to their present location and condition and is determined on weighted average basis.

b) Inventories are valued at lower of cost and Net Realizable Value ('NRV'). NRV for stores and spares, loose tools and fuel used in rendering of services are not written down below cost except in cases where the price of such materials have declined and it is estimated that the cost of rendering of services will exceed their selling price.

c) Expendables/consumables are charged off at the time of initial issue, except those meant for repairs of repairable items which are expensed off when the work order is closed on the completion of repair work.

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d) Obsolescence provision for aircraft stores and spare parts

(i) Provision is made for the non-moving inventory exceeding a period of ve years (net of realizable value of 5%) except for (ii) & (iii) below and netted off from the value of inventory.

(ii) Inventory of Aircraft Fleet which has been phased out, is shown at estimated realizable value unless the same can be used in other Aircrafts.

(iii) Provision in respect of inventories exclusively relating to aircraft on dry/wet lease, is made on the basis of the completed lease period compared to the total lease period as at the year-end.

e) Full Obsolescence Provision for non-aircraft stores and spares is made for non-moving inventory exceeding a period of ve years.

f) Spares retrieved from the cannibalization of the scrapped aircraft are accounted for at Rupee One.

VIII. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES & JOINT VENTURES:

� � Investments is Subsidiaries, Associate and Joint Ventures are carried at cost, less any impairment in the value of investments,

IX. IMPAIRMENT OF NON FINANCIAL ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that carrying amount of its non- nancial asset has been impaired. If any such indication exists, the provision for impairment is made in accordance with IND AS-36.

X. GOVERNMENT GRANTS

Government Grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

Government Grants are recognized in prot or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate.

Government Grants that become receivable as compensation for expenses or losses incurred in a previous period are recognized in prot or loss of the period in which it becomes receivable.

Government Grants related to assets are presented in the balance sheet as deferred income and are recognized in prot or loss on a systematic basis over the expected useful life of the related assets.

XI. REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benets will ow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at fair value of the consideration received or receivable, net of discounts. Revenue is recorded when the recovery of consideration is probable and determinable.

a) Passenger, Cargo and Mail Revenue are recognized when transportation service is provided. At the end of each nancial year, based on available historical statistical data, a certain estimated percentage of the value of tickets/airway bills sold but remaining unutilized, is recognized as Revenue.

b) Loss or gain on reissue/refund/ involuntary transfer of passengers to other carriers is also deducted or included, as the case may be, in the transport revenue.

c) Blocked Space arrangements/Code share revenue/expenditure is recognized on an actual basis, based on uplift data received from the code share partners. Wherever details from code share partners are not available, revenue/expenditure is booked to the extent of documents/information received, and adjustments, if any, required are carried out at the time of availability of such information.

d) Income from Interest is recognized using the effective interest method on a time proportion basis. Income from Rentals is recognized on a time proportion basis.

e) Dividend is recognized as, income, if the right to receive is established before the close of the year.

f) The claims receivable from Insurance Company are accounted for on the acceptance by the Insurance Company of such claims.

g) Warranty claims/credit notes received from vendors are recognized on acceptance of claim/receipt of credit note.

h) Other Operating Revenue is recognized when goods are delivered or services are rendered.

i) Gain or loss arising out of sale/scrap of PPE including aircraft over the net depreciated value is taken to Statement of Prot & Loss as Non-Operating Revenue or Expenses.

j) Other Items :

i) Scrap sales, reimbursement from employees availing medical, educational and other leave without pay, claims of interest from suppliers, other staff claims and lost baggage claims, are recognized on cash basis.

ii) Liability/ Claims for amounts payable towards IATA dues are recognized to the extent of claims/ invoices received.

XII. MANUFACTURER'S CREDIT (CASH & NON CASH INCENTIVES)

Manufacturer's credit entitlements are accounted for on accrual basis and credited to 'Incidental Revenue' by contra debit to 'Advances'; when the credit entitlement are used, the 'advances' are adjusted against the liability created for either acquiring an asset or incurring an expenditure.

XIII. BORROWING COST

a) Borrowing cost that are directly attributable to acquisition, construction of qualifying assets including capital work–in-progress are capitalized, as part of the cost of assets, up to the date of commencement of commercial use of the assets.

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b) Interest incurred on borrowed funds or other temporary borrowings in anticipation of the receipt of long term borrowings that are used for acquisition of qualifying assets exceeding the value of Rs.10.0 million is capitalized at the weighted average borrowing rate on loans outstanding at the time of acquisition.

XIV. FOREIGN CURRENCY TRANSACTIONS

The management has determined the currency of the primary economic environment in which the company operates i.e. functional currency, to be Indian Rupees. The nancial statements are presented in Indian Rupees, which is company's functional and presentation currency.

a) Foreign Currency Monetary Items:

i) Foreign currency Revenue and Expenditure transactions relating to Foreign Stations are recorded at established monthly rates (based on published IATA rates). Interline settlement with Airlines for transportation is carried out at the exchange rate published by IATA for respective month.

ii) Foreign currency monetary items are translated using the exchange rate circulated by Foreign Exchange Dealers Association of India (FEDAI). Gains/ (losses) arising on account of realization/settlement of foreign exchange transactions and on translation of monetary foreign currency assets and liabilities are recognized in the Statement of Prot and Loss.

st iii) In respect of long term foreign currency monetary items originating before 1

April, 2016, the effect of exchange differences arising on settlement or reporting of long term monetary items at the rates different from those at which they were initially recorded during the period, or reported in previous nancial statements, is accounted as addition or deduction to the cost of the assets so far as it relates to acquisition of depreciable capital assets and is depreciated over the balance useful life of the concerned asset and in other cases such difference is accumulated by transfer to “Foreign Currency Monetary Items Translation Difference Account” to be amortized over the balance period of such long term Assets or Liability.

b) Exchange variation is not considered at the year-end in respect of Debts and Loans & Advances for which doubtful provision exists since they are not e� xpected to be realized.

XV. EMPLOYEE BENEFITS

The Retirement Benets to the employees comprise of Dened Contribution Plans and Dened Benet Plans.

a) Defined Contribution Plans consist of contributions to Employees Provident Fund and Employees State Insurance Scheme. The Company has created separate Trusts to administer Provident Fund contributions to which contributions are made regularly. ESI dues are regularly deposited with government authorities.

b) Defined Benefit Plans which are not funded, consist of Gratuity, and Post Retirement Medical Benets and other benets. The liability for these benets except for (i) below is actuarially determined under the Projected Unit Credit Method at the year end as per Indian Laws.

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The obligation is measured at the present value of estimated future cash ows. The discount rates used for determining the present value of obligation under dened benet plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Remeasurements gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in Other Comprehensive Income. They are included in “Other Equity” in the Statement of Changes in Equity and in the Balance Sheet.

Changes in the present value of the dened benet obligation resulting from settlement or curtailments are recognized immediately in Statement of Prot and Loss as past service cost.

Liability for Gratuity, Pension and other retirement Benets for staff directly recruited at foreign stations is provided in compliance with local laws prevailing in the respective countries based on available information as at the year end.

c) Other Long-Term Employee Benefits

Benets in the form of Leave Encashment are accounted as other long-term employee benets. The Company's net obligation in respect of Leave Encashment is the amount of benet to be settled in future, that employees have earned in return for their service in the current and previous years. The benet is discounted to determine its present value. The obligation is measured on the basis of an actuarial valuation using the projected unit credit method. Remeasurements are recognized in Statement of Prot and Loss in the period in which they arise.

XVI. TAXES ON INCOME

(i) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date. Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously.

(ii) Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for nancial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductable temporary differences to the extent that is probable that future taxable prots will be available against which they can be used. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufcient taxable prots will be available to allow all or part of the asset to be recovered.

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Deferred tax is measured at the tax rates that are expected to apply to the period when the assets are realized or liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

XVII. PROVISIONS, CONTINGENT LIABILITIES / CAPITAL COMMITMENTS & CONTINGENT ASSETS

a) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation (legal or constructive)as a result of past events and it is probable that there will be an outow of resources. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reects, when appropriate, the risks specic to the liability. These estimates are reviewed at each reporting date and adjusted to reect the current best estimates. The expense relating to a provision is presented in the statement of prot and loss.

b) Contingent liabilities are disclosed by way of a note in respect of possible obligations that may arise from past events but their existence is conrmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

c) Contingent assets are possible assets that arises from past events and whose existence will be conrmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent asset is disclosed, when an inow of economic benets is probable.

XVIII. FREQUENT FLYER PROGRAMME

The Company operates Frequent Flyer Programme that provides loyalty points based on accumulated mileage points to those who have joined this facility.

The revenue recognized when the transportation service is provided is reduced by the estimated fair value of the mileage points issued in the year such loyalty points are earned. The fair value attributed to the awarded loyalty points is treated as a deferred liability and recognized as revenue on redemption of the points and provision of service to the participants to whom the points were issued.

XIX. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash at bank and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignicant risk of changes in value.

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XX. EARNINGS PER SHARE

The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its equity shares. Basic earnings per equity share are computed by dividing the net prot after tax attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net prot after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares during the year.

XXI. FAIR VALUE MEASUREMENT

The Company measures nancial instruments and specic investments (other than subsidiary, joint venture and associates), at fair value at each balance sheet date.

All assets and liabilities for which fair value is measured or disclosed in the nancial statements are categorized within the fair value hierarchy, described as below, based on the lowest level input that is signicant to the fair value measurement as a whole:

Level 1:� Quoted (unadjusted) market prices in active markets for identical assets or ��liabilities

Level 2: Valuation techniques for which the lowest level input that is signicant to the fair value measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is signicant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is signicant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

FINANCIAL INSTRUMENTS

A nancial instrument is any contract that gives rise to a nancial asset of one entity and a nancial liability or equity instrument of another entity.

A. Financial Assets

(I) Classification

The Company classies nancial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through Statement of Prot and Loss on the basis of its business model for managing the nancial assets and the contractual cash ows characteristics of the nancial asset.

(ii) Initial recognition and measurement

All nancial assets are recognized initially at fair value plus, in the case of nancial assets not recorded at fair value through Statement of Prot and Loss, transaction costs that are attributable to the acquisition of the nancial asset.

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(iii) Subsequent measurement

For purposes of subsequent measurement nancial assets are classied in below categories:

(a) Financial assets carried at amortized cost: A nancial asset other than derivatives and specic investments, is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash ows and the contractual terms of the nancial asset give rise on specied dates to cash ows that are solely payments of principal and interest on the principal amount outstanding.

(b) Financial assets at fair value through other comprehensive income: A nancial asset comprising specic investment is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash ows and selling nancial assets and the contractual terms of the nancial asset give rise on specied dates to cash ows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classied as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.

(c) Financial assets at fair value through Statement of Profit and Loss: A nancial asset comprising derivatives which is not classied in any of the above categories are subsequently fair valued through prot or loss.

(iv) De-recognition

A nancial asset is primarily derecognized when the rights to receive cash ows from the asset have expired or the Company has transferred its rights to receive cash ows from the asset.

(v) Investment in subsidiaries, joint ventures and associates

The company has accounted for its investment in subsidiaries, joint ventures and associates at cost. The company assesses whether there is any indication that these investments may be impaired. If any such indication exists, the investment is considered for impairment based on the fair value thereof.

(vi) Impairment of other financial assets

The Company assesses impairment based on expected credit losses (ECL) model for measurement and recognition of impairment loss on the nancial assets that are trade receivables or contract revenue receivables and all lease receivables etc.

(vii) Write-off

The gross carrying amount of a nancial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the counterparty does not have assets or sources of income that could generate sufcient cash ows to repay

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the amounts subject to the write-off. However, nancial assets that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery of amounts due.

B. Financial Liabilities

(i) Initial recognition and measurement

All nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company's nancial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative nancial instruments.

(ii) Classification

The Company classies all nancial liabilities as subsequently measured at amortized cost, except for nancial liabilities at fair value through Statement of Prot and Loss. Such liabilities, including derivatives shall be subsequently measured at fair value.

(iii) Subsequent measurement

The measurement of nancial liabilities depends on their classication, as described below.

a) Financial liabilities at amortized cost: After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in Statement of Prot and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as nance costs in the Statement of Prot and Loss.

b) Financial liabilities at fair value through Statement of Profit and Loss: Financial liabilities at fair value through Statement of Prot and Loss include nancial liabilities held for trading and nancial liabilities designated upon initial recognition as at fair value through Statement of Prot and Loss. Financial liabilities are classied as held for trading if they are incurred for the purpose of repurchasing in the near term. This category comprises derivative nancial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as dened by Ind AS 109. Separated embedded derivatives are also classied as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Prot and Loss.

(iv) De-recognition

A nancial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

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(v) Offsetting of financial instruments

Financial assets and nancial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to sell on a net basis, to realize the assets and sell the liabilities simultaneously.

XXII. THRESHOLD LIMITS

The Company has adopted following materiality threshold limits in the classication of expenses/incomes and disclosure:

(Rs in Millions)

No Threshold Items Threshold Value

(i) Prepaid Expenses

a) Foreign Stations 0.05

b) Domestic Stations 0.01

(ii) Contingent Liability & Capital Commitments 0.10

(iii) Fair Valuation of Financial Instruments 50.00

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NOTE "1" : (Rupees in Million)

Particulars GROSS BLOCK

As atApril 01, 2017

Additions Deductions/Reclassi-fication

Deductions/Reclassi-fication

UptoMarch 31, 2018

As atMarch 31, 2018

As atMarch 31, 2017

As atMarch 31, 2018

UptoApril 01, 2017

For theYear

DEPRECIATION NET BLOCKSl.No.

PROPERTY, PLANT & EQUIPMENT

A. LAND & BUILDINGS

1. Land-Freehold 6,986.3 - 1,260.9 5,725.4 - - - - 5,725.4 6,986.3

2. Land-Leasehold 54,522.1 - 52,684.0 1,838.1 75.6 - 75.6 - 1,838.1 54,446.5

3. Buildings 9,903.8 223.0 676.0 9,450.8 253.5 724.0 721.7 255.8 9,195.0 9,650.3

SUB TOTAL "A" 71,412.2 223.0 54,620.9 17,014.3 329.1 724.0 797.3 255.8 16,758.5 71,083.1

B. AIRCRAFT FLEET, ROTABLES & REPAIRABLES

1. Airframes

Owned 139,164.0 32,895.4 151.0 171,908.4 6,895.8 8,042.5 - 14,938.3 156,970.1 132,268.2 Leased - - - - - - - - - -

2. Aero Engines & Power Plants

(a) Owned-Fixed Cost 54,732.5 14,452.5 65.7 69,119.3 2,511.3 2,934.2 - 5,445.5 63,673.8 52,221.2

(b) Owned-Variable Cost (Component) 3,231.5 - - 3,231.5 1,478.3 969.5 - 2,447.8 783.7 1,753.2

(c) Owned-Repair Cost 3,533.6 1,749.1 - 5,282.7 826.0 1,228.9 - 2,054.9 3,227.8 2,707.6

3. Simulators & Link Trainers 2,251.6 658.9 178.1 2,732.4 132.0 146.4 163.6 114.8 2,617.6 2,119.6

4. Airframe Rotables 7,377.3 1,030.4 - 8,407.7 411.6 472.6 2.4 881.8 7,525.9 6,965.7

5. Aero-Engine Rotables 757.0 - - 757.0 60.5 60.5 - 121.0 636.0 696.5

6. Aircraft Repairables 8,304.4 1,577.9 384.1 9,498.2 1,070.3 1,247.6 310.4 2,007.5 7,490.7 7,234.1

7. Simulator Rotables - - - - - - - - - -

SUB TOTAL "B" 219,351.9 52,364.2 778.9 270,937.2 13,385.8 15,102.2 476.4 28,011.6 242,925.6 205,966.1

C. OTHER- FIXED ASSETS

1. Workshop Equipment, Instruments, 3,615.6 720.3 1.4 4,334.5 248.4 380.4 116.2 512.6 3,821.9 3,367.3 Machinery and Plants -

2. Ground Support & Ramp Equipment 475.4 20.6 53.3 442.7 222.3 99.7 48.5 273.5 169.2 253.1

3. Furniture & Fixtures 205.1 15.9 0.5 220.5 35.7 26.5 (0.4) 62.6 157.9 169.4

4. Vehicles 32.6 8.6 22.9 18.3 (10.2) 6.2 21.7 (25.7) 44.0 42.8

5. Ofce Appliances & Equipment 150.3 20.4 4.3 166.4 21.8 24.8 (1.2) 47.8 118.6 128.5

6. Computer System 249.0 80.5 1.5 328.0 36.6 41.3 1.5 76.4 251.6 212.3

7. Electrical Fittings & Installations 510.1 2.2 24.8 487.5 63.5 65.7 50.3 78.9 408.6 446.6

8. Object D'art (Net Block Rs.39,969.43) 0.6 - - 0.6 0.6 - - 0.6 - -

SUB TOTAL "C" 5,238.7 868.5 108.7 5,998.5 618.7 644.6 236.6 1,026.7 4,971.8 4,620.0

TOTAL PROPERTY, PLANT &

EQUIPMENT 296,002.8 53,455.7 55,508.5 293,950.0 14,333.6 16,470.8 1,510.3 29,294.1 264,655.9 281,669.2

INVESTMENT PROPERTY

1. Investment Property Land - 8,983.7 - 4,770.7 4,213.0 - - - - 4,213.0 8,983.7

Leasehold

2. Investment Property - Buildings 6,568.1 1.3 - 6,569.4 439.4 423.4 - 862.8 5,706.6 6,128.7

TOTAL FOR INVESTMENT PROPERTY 15,551.8 1.3 4,770.7 10,782.4 439.4 423.4 - 862.8 9,919.6 15,112.4

INTANGIBLE ASSETS :

A. COMPUTER SOFTWARE 869.2 16.2 - 885.4 496.5 115.2 - 611.7 273.7 372.7

B. OTHERS 383.6 - - 383.6 127.9 127.9 - 255.8 127.8 255.7

TOTAL FOR INTANGIBLE ASSETS 1,252.8 16.2 - 1,269.0 624.4 243.1 - 867.5 401.5 628.4

TOTAL ASSETS 312,807.4 53,473.2 60,279.2 306,001.4 15,397.4 17,137.3 1,510.3 31,024.4 274,977.0

Previous Year 285,614.1 28,264.6 1,071.3 312,807.4 - 16,332.2 934.8 15,397.4 297,410.0 Capital Work-in-Progress 813.6 2,773.2 Intangible Assets under Development 82.9 13.5

GRAND TOTAL 275,873.5 300,196.7

1. During the year, the Company has capitalized translation difference of Rs.244.4 Million (Previous Year : Rs.1,620.0 Million) arising on settlement and reporting of long term monetary items. Additions to "Aircraft Fleet, Rotables & Repairables" includes Exchange Rate Fluctuations (Net of Debit & Credit) on underlying loans in foreign currency : Rs. 244.4 Million (Previous Year: Rs. (2,124.3) Million).

2. "Aircraft Fleet, Rotables & Repairables" includes 39 Aircraft (One B777-300 ER, Six B787-800, Five B747-400, Nine A-319, Ten A320 & Eight A-321), 20 Spare Engines & 4 Spare APUs owned by Air India Ltd.

3. "Aircraft Fleet, Rotables & Repairables" includes 37 Aircraft (Three B777-200LR, Twelve B777-300 ER, Ten A-319 & Twelve A-321) (Previous Year : 37 Aircraft - {Three B777-200LR, Twelve B777-300ER, Ten A-319 & Twelve A-321}) & 5 GE Spare Engines (Previous Year 5 GE Spare Engines) and Registration of these 37 Aircraft & 5 Spare Engines continues to be in the name of SPV Company for which benecial ownership is with Air India Ltd. (Refer Note 46(I))

4. Borrowing costs capitalized during the year are Rs.1,636.8 Million (Previous Year : Rs.82.5 Million)

5. Depreciation includes debit of Rs.463.5 Million (Previous Year : Debit of Rs.308.8 Million) to Capital Reserve.

6. "Intangible Asset - Others" represents Membership Fees for joining Star Alliance.

7. Special tools included in Workshop Equipment, Instrument Machinery & Plants and Other Fixed Assets are being Depreciated at year wise total Block Amount.

8. Three Old Classic A320 Aircraft(VT-EPO,VT-EPL and VT- EPD) , two Boeing 737 (VT-EGJ and VT-EGI),18 V2500 Engines, one Boeing JT8D Engine and 10 A320 Classic APU with WDV of Rs. 149.7 million removed from Surplus Assets on sale and a loss of Rs.4.99 million booked during the year.

9. As per IND AS 16, Rs. NIL Million (Previous Year 382.4 Million) has been transferred from Engine xed cost to Engine Variable Cost. The depreciation charged on the Engine Variable Component is Rs. 969.5 Million (previous year- Rs.1478.3 million.)

AIR INDIA

136

NOTE "1" : (Rupees in Million)

Particulars GROSS BLOCK

As atApril 01, 2016

Additions Deductions/Reclassi-fication

Deductions/Reclassi-fication

UptoMarch 31, 2017

As atMarch 31, 2017

As atMarch 31, 2016

As atMarch 31, 2017

UptoApril 01, 2016

For theYear

DEPRECIATION NET BLOCKSl.No.

PROPERTY, PLANT & EQUIPMENT

A. LAND & BUILDINGS

1. Land-Freehold 6,986.3 - - 6,986.3 - - - - 6,986.3 6,986.3

2. Land-Leasehold 54,494.0 29.6 1.5 54,522.1 - 75.6 - 75.6 54,446.5 54,494.0

3. Buildings 8,040.7 1,851.5 (11.6) 9,903.8 - 253.5 - 253.5 9,650.3 8,040.7

SUB TOTAL "A" 69,521.0 1,881.1 (10.1) 71,412.2 - 329.1 - 329.1 71,083.1 69,521.0

B. AIRCRAFT FLEET, ROTABLES

& REPAIRABLES1. Airframes Owned 128,669.7 10,859.4 365.1 139,164.0 - 7,298.2 402.4 6,895.8 132,268.2 128,669.7 Leased - - - - - - - - - -

2. Aero Engines & Power Plants (a) Owned-Fixed Cost 47,607.6 7,033.8 (91.1) 54,732.5 - 2,553.7 42.4 2,511.3 52,221.2 47,607.6

(b) Owned-Variable Cost

(Component) 2,849.1 398.2 15.8 3,231.5 - 1,478.3 - 1,478.3 1,753.2 2,849.1

(c) Owned-Repair Cost 1,949.1 1,584.5 - 3,533.6 - 826.0 - 826.0 2,707.6 1,949.1

3. Simulators & Link Trainers 1,618.0 633.6 - 2,251.6 - 132.0 - 132.0 2,119.6 1,618.0

4. Airframe Rotables 5,371.5 2,005.8 - 7,377.3 - 410.8 (0.8) 411.6 6,965.7 5,371.5

5. Aero-Engine Rotables 757.0 - - 757.0 - 60.5 - 60.5 696.5 757.0

6. Aircraft Repairables 7,076.3 1,849.8 621.7 8,304.4 - 1,426.4 356.1 1,070.3 7,234.1 7,076.3

7. Simulator Rotables - - - - - - - - - -

SUB TOTAL "B" 195,898.3 24,365.1 911.5 219,351.9 - 14,185.9 800.1 13,385.8 205,966.1 195,898.3

C. OTHER- FIXED ASSETS

1. Workshop Equipment, Instruments, 1,956.0 1,673.6 14.0 3,615.6 - 305.8 57.5 248.3 3,367.3 1,956.0 Machinery and Plants -

2. Ground Support & Ramp Equipment 586.6 3.5 114.7 475.4 - 249.8 27.5 222.3 253.1 586.6

3. Furniture & Fixtures 103.0 103.2 1.1 205.1 - 37.8 2.1 35.7 169.4 103.0

4. Vehicles 38.4 9.2 15.0 32.6 - 4.4 14.6 (10.2) 42.8 38.4

5. Ofce Appliances & Equipment 124.3 41.7 15.7 150.3 - 41.8 20.0 21.8 128.5 124.3

6. Computer System 172.1 84.3 7.4 249.0 - 49.9 13.2 36.7 212.3 172.1

7. Electrical Fittings & Installations 439.3 73.4 2.6 510.1 - 63.9 0.4 63.5 446.6 439.3

8. Object D'art (Net Block Rs.39,969.43) - - (0.6) 0.6 - - (0.6) 0.6 - -

SUB TOTAL "C" 3,419.7 1,988.9 169.9 5,238.7 - 753.4 134.7 618.7 4,620.0 3,419.7

TOTAL PROPERTY, PLANT &

EQUIPMENT 268,839.0 28,235.1 1,071.3 296,002.8 - 15,268.4 934.8 14,333.6 281,669.2 268,839.0

INVESTMENT PROPERTY

1. Investment Property Land-Leasehold 8,983.7 - - 8,983.7 - - - - 8,983.7 8,983.7

2. Investment Property - Buildings 6,568.1 - - 6,568.1 - 439.4 - 439.4 6,128.7 6,568.1

TOTAL FOR INVESTMENT PROPERTY 15,551.8 - - 15,551.8 - 439.4 - 439.4 15,112.4 15,551.8

INTANGIBLE ASSETS :

A. COMPUTER SOFTWARE 839.7 29.5 - 869.2 - 496.5 - 496.5 372.7 839.7

B. OTHERS 383.6 - - 383.6 - 127.9 - 127.9 255.7 383.6

TOTAL FOR INTANGIBLE ASSETS 1,223.3 29.5 - 1,252.8 - 624.4 - 624.4 628.4 1,223.3

TOTAL ASSETS 285,614.1 28,264.6 1,071.3 312,807.4 - 16,332.2 934.8 15,397.4 297,410.0

Previous Year 285,614.1

Capital Work-in-Progress 2,773.2 6,615.3

Intangible Assets under Development 13.5 13.5

GRAND TOTAL 300,196.7 292,242.9

AIR INDIA

137

NOTE "2" : NON-CURRENT INVESTMENTS (Rupees in Million)

Particulars As atApril 01, 2016

As atMarch 31, 2017

As atMarch 31, 2018

Sl.No.

1 INVESTMENTS at Cost

1.1 EQUITY INSTRUMENTS - UNQUOTED

A IN SUBSIDIARIES

I) 11,060,000 Equity Shares (Previous Year : 11,060,000 1,106.0 1,106.0 1,106.0

Equity Shares) of Rs. 100 each fully paid up in Hotel

Corporation of India Limited

ii) 78,000,000 Equity Shares (Previous Year :78,000,000 Equity 7,800.0 7,800.0 7,800.0

Shares) of Rs. 100 each fully paid up in Air India Express Limited.

iii) 138,424,200 Equity Shares (Previous Year :138,424,200 Equity 1,384.2 1,384.2 1,384.2

Shares) of Rs.10 each fully paid up in Air-India Air Transport

Services Limited.

iv) 166,666,500 Equity Shares (Previous Year : 166,666,500 1,666.7 1,666.7 1,666.7 Equity Shares) of Rs.10 each fully paid up in

Air-India Engineering Services Limited.

v) 40,225,000 Equity Shares (Previous Year : 40,225,000 Equity 4,022.5 4,022.5 4,022.5

Shares) of Rs 100/- each fully paid up in Airlines Allied Services Ltd.

SUB TOTAL 15,979.4 15,979.4 15,979.4

B IN JOINT VENTURE

40,424,975 Equity Shares of Rs.10 each fully paid up in Air India SATS 436.2 436.2 436.2

Airport Services Private Ltd. (40,419,975 Equity Shares of Rs.10 each

issued at a premium of Rs.0.79 per share)

SUB TOTAL 436.2 436.2 436.2

C WITH OTHERS / STRUCTURED ENTITIES

TRADE INVESTMENTS

i) 271,945 Equity Shares (Previous Year : 271,933 Equity Shares) 13.9 13.9 13.9 of EUR 5.00 each fully paid up in SITA (Societe Internationale

de Telecommunications Aeronautiques). (12 Shares allotted

during the year)

ii) 618,460 Depository Certicates of SITA Information Network 28.8 28.8 28.8

Computing N.V. (Previous Year : 618,460)

iii) 1,270 class B Shares (Previous Year : 1,280 Shares) of BHT 100 0.2 0.2 0.3 each fully paid up in Aeronautical Radio of Thailand Ltd.

(10 Shares redeemed during the year)

iv) 50 Equity Shares of EUR 152.45 each fully paid up in Association 0.4 0.4 0.4 Sportive Du Golf Isabella.

SUB TOTAL 43.3 43.3 43.4

1.2 DEBENTURES

6% Debenture Bonds of Banco De Roma face value EUR 15.49 * 0.0 * 0.0 * 0.0 guaranteed by the Government of Italy (Deposited with Civil Aviation

Department, Italy) (*Rs.3,057.69)

SUB TOTAL - - -

TOTAL INVESTMENT at Cost (A) 16,458.9 16,458.9 16,459.0

AIR INDIA

138

(Rupees in Million)

Particulars As atApril 01, 2016

As atMarch 31, 2017

As atMarch 31, 2018

Sl.No.

2. INVESTMENTS AT FAIR VALUE THROUGH OTHER

COMPREHENSIVE INCOME (FVTOCI)

2.1 EQUITY INSTRUMENTS (QUOTED)

375,407 Equity Shares of EUR 0.48 each fully paid up in 418.2 378.9 435.7

France Telecom (Market Value Rs.418.2 Million, Equivalent

to EUR 5.2 Million).

(Previous Year: Rs. 378.9 Million, Equivalent to EUR 5.5 Million)

SUB TOTAL 418.2 378.9 435.7

2.2 WITH OTHERS / STRUCTURED ENTITIES

TRADE INVESTMENTS

i) 2,617,098 Equity Shares of MAR 10 each fully paid up in 105.4 104.8 96.9

Air Mauritius Ltd.

ii) 2,301,244 Equity Shares of MAR 10 each fully paid up in 44.8 51.5 44.0

Air Mauritius Holding Ltd.

iii) 12,500,000 Equity Shares of Rs. 10 each fully paid up in Cochin 434.3 421.0 396.2 International Airport Limited.

(Includes 2,500,000 Equity Shares of Rs.10 issued

and subscribed at a premium of Rs.40 per share)

SUB TOTAL 584.5 577.3 537.1

TOTAL INVESTMENTS AT FAIR VALUE THROUGH OTHER

COMPREHENSIVE INCOME (FVTOCI) (B) 1,002.7 956.2 972.8

TOTAL INVESTMENTS (A + B) 17,461.6 17,415.1 17,431.8

Aggregate amount of unquoted investments 17,043.4 17,036.2 16,996.1

Aggregate amount of quoted investments (Market value : Rs.418.2 Million 418.2 378.9 435.7

(Previous Year : Rs.378.9 Million)) (Equivalent to EUR 5.2 Million

(Previous Year : EUR 5.5 Million))

NOTE "3" : TRADE RECEIVABLES (Rupees in Million)

Particulars NON-CURRENT

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

Unsecured, Considered Good * 57.3 61.6 47.4 17,767.2 16,501.8 16,476.6

Doubtful 10,328.0 10,884.1 9,292.4 - - -

10,385.3 10,945.7 9,339.8 17,767.2 16,501.8 16,476.6

Less : Allowance for Doubtful Receivables 10,328.0 10,884.1 9,292.4 - - -

(A) 57.3 61.6 47.4 17,767.2 16,501.8 16,476.6

* Trade Receivables amounting to Rs.70.0 Million (Previous Year Rs.86.7) are backed by Bank Guarantees.

AIR INDIA

139

NOTE "4" : LOANS(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

Security Deposits

Unsecured Considered Good 3,056.0 2,765.6 2,535.8 121.9 147.5 220.5

Doubtful 42.9 43.4 43.4 - - -

3,098.9 2,809.0 2,579.2 121.9 147.5 220.5

Less : Allowance for Doubtful Deposits 42.9 43.4 43.4 - - -

(A) 3,056.0 2,765.6 2,535.8 121.9 147.5 220.5

Loans to Employees

Secured Loan - 0.2 0.2 - - -

- 0.2 0.2 - - -

Less : Allowance for Doubtful Advances - - - - - -

(B) - 0.2 0.2 - - -

TOTAL (A + B) 3,056.0 2,765.8 2,536.0 121.9 147.5 220.5

NOTE "5" : OTHER FINANCIAL ASSETS(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENTSl.No.

1 Advances Recoverable from Parties Unsecured Considered Good - - - 1,100.4 829.6 582.0 Unsecured Considered Doubtful 201.1 138.7 135.6 - - - 201.1 138.7 135.6 1,100.4 829.6 582.0 Less : Allowance for Doubtful Advances 201.1 138.7 135.6 - - - (A) - - - 1,100.4 829.6 582.02 Advances Recoverable from Employees Unsecured Advances Considered Good 73.3 24.5 30.1 482.4 498.3 367.5 Unsecured Considered Doubtful 16.0 23.1 22.3 - - - 89.3 47.6 52.4 482.4 498.3 367.5 Less : Allowance for Doubtful Advances 16.0 23.1 22.3 - - - (B) 73.3 24.5 30.1 482.4 498.3 367.53 Advance to Subsidiary Companies * Unsecured Considered Good 38,936.0 25,722.2 19,286.1 - - - Unsecured Considered Doubtful - - - - - - 38,936.0 25,722.2 19,286.1 - - - Less : Allowance for Doubtful Advances - - - - - - (C) 38,936.0 25,722.2 19,286.1 - - -4 Deposit-Others (having maturity of more than 12 months) 135.6 95.4 33.6 - - - Less : Allowance for Doubtful Deposits 0.1 0.1 0.1 - - - (D) 135.5 95.3 33.5 - - -5 Interest Accrued on i) Fixed Deposits 42.4 - - 22.2 67.9 45.0 ii) Loan to Employees 2.6 4.2 3.3 5.5 8.7 13.5 iii) Advances to Subsidiary Companies ** - - - 3,221.7 2,277.0 2,261.4 (E) 45.0 4.2 3.3 3,249.4 2,353.6 2,319.96 Other Non-Trade Receivables Unsecured Considered Good - - - 40.1 48.7 83.1 Unsecured Considered Doubtful 2,043.1 2,814.9 2,667.1 - - - 2,043.1 2,814.9 2,667.1 40.1 48.7 83.1 Less : Allowance for Doubtful Receivables 2,043.1 2,814.9 2,667.1 - - - (F) - - - 40.1 48.7 83.1 TOTAL (A + B + C + D + E + F) 39,189.8 25,846.2 19,353.0 4,872.3 3,730.2 3,352.5

AIR INDIA

140

* Details of Advances given to Subsidiary Companies/Joint Ventures are as under :

Name of the Subsidiary Company/Joint Ventures As at As at As at March 31, 2018 March 31, 2017 April 01, 2016

1. Air India Express Limited 9,201.1 5,756.8 6,811.9 2. Air India Engineering Services Limited 13,444.9 5,818.5 1,666.5 3. Hotel Corporation of India Limited 2,075.4 1,582.3 1,174.7 4. Airline Allied Services Limited 14,085.5 12,564.6 9,633.0 5. Air India Air Transport Services Ltd 129.1 - -

Total 38,936.0 25,722.2 19,286.1

** Details of Interest Accrued on Advances to Subsidiary Companies/Joint Ventures are as under :

Name of the Subsidiary Company/Joint Ventures As at As at As at March 31, 2018 March 31, 2017 April 01, 2016

1. Air India Express Limited 752.1 791.5 957.6 2. Hotel Corporation of India Limited 204.6 121.4 190.6 3. Airline Allied Services Limited 1,340.7 1,364.1 1,113.2 4. Air India Engineering Services Limited 924.3 - -

Total 3,221.7 2,277.0 2,261.4

NOTE "6" : OTHER NON-FINANCIAL ASSETS(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

Capital Advances

Unsecured Considered Good 129.4 15,899.8 3,526.9 - - -

Doubtful 7.6 7.6 7.6 - - -

137.0 15,907.4 3,534.5 - - -

Less : Allowance for Doubtful Advances 7.6 7.6 7.6 - - -

(A) 129.4 15,899.8 3,526.9 - - -

Advances other than Capital Advances

Unsecured Considered Good 105.5 1,505.0 11,712.8 5,029.4 4,877.7 3,993.5

Doubtful 215.3 457.1 436.7 - - -

320.8 1,962.1 12,149.5 5,029.4 4,877.7 3,993.5

Less : Allowance for Doubtful Advances 215.3 457.1 436.7 - - -

(B) 105.5 1,505.0 11,712.8 5,029.4 4,877.7 3,993.5

Non-Trade Receivable

Unsecured Considered Good - - - 9,058.6 11,648.5 12,137.6

Doubtful 135.1 135.1 135.1 - - -

135.1 135.1 135.1 9,058.6 11,648.5 12,137.6

Less : Allowance for Doubtful

Non-Trade Receivable 135.1 135.1 135.1 - - -

(C) - - - 9,058.6 11,648.5 12,137.6

Other Advances

Unsecured Considered Good

Prepaid Expenses 5,794.6 3,650.4 2,987.5 1,396.5 1,184.9 1,359.3

Balances with Statutory/Government Authorities - - - 3,844.8 2,771.9 2,952.3

(D) 5,794.6 3,650.4 2,987.5 5,241.3 3,956.8 4,311.6

TOTAL (A + B + C + D) 6,029.5 21,055.2 18,227.2 19,329.3 20,483.0 20,442.7

AIR INDIA

141

NOTE "7" : INCOME TAX ASSETS NET OF PROVISION(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENTSl.No.

Advance Payment of Income Tax and TDS

(net of provision for taxation) 2,591.3 2,821.1 3,562.9 741.4 577.6 469.8

2,591.3 2,821.1 3,562.9 741.4 577.6 469.8

Particulars As at As at As at March 31, 2018 March 31, 2017 April 01, 2016

NOTE "8" : INVENTORIES (As taken, valued & certified by the Management)(Rupees in Million)

Stores and Spare Parts 16,380.8 17,264.6 17,351.5

Loose Tools 75.4 389.2 804.2

16,456.2 17,653.8 18,155.7

Less : Provision for Obsolescence / Inventory Reconciliation 8,964.3 7,772.1 5,620.6

7,491.9 9,881.7 12,535.1

Goods-in-Transit 1,540.0 964.7 1,259.0

TOTAL 9,031.9 10,846.4 13,794.1


NOTE "9" : CASH AND CASH EQUIVALENTS(Rupees in Million)

Cash and Cash Equivalents

1. Balances with Banks :

a) In Current Accounts 1,580.8 1,805.4 3,429.6

b) In Deposit Accounts (Maturity less than 3 months) 241.3 399.9 481.9

2. Cheques, Drafts on Hand 31.0 10.5 122.1

3. Cash on Hand (as certied) 32.9 24.0 26.8

TOTAL (A + B) 1,886.0 2,239.8 4,060.4

* Stores and Spare Parts includes an amount of Rs.1,765.9 (Previous Year : Rs.2,162.3 Million) as Work Order Suspense

account which represents inventories lying with a subsidiary company i.e. Air India Engineering Services Ltd. and Rs.308.3

Million (Previous Year : Rs. 228.3 Million) with third party for repair work for Air India Ltd.

AIR INDIA

142


NOTE "10" : BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS(Rupees in Million)

Other Bank Balances

1. Margin money deposits 4,204.0 3,692.0 2,689.8

2. Deposits - Others (More than 3 months but

Less than 12 Months) 1,338.8 1,419.6 1,304.6

5,542.8 5,111.6 3,994.4


NOTE "11" : SHARE CAPITAL(Rupees in Million)

A. AUTHORISED

30,000.0 Million Equity Shares of Rs.10 each 300,000.0 300,000.0 250,000.0

(Previous Year : 30,000.0 Million Equity Shares

of Rs.10 each)

300,000.0 300,000.0 250,000.0

B. ISSUED, SUBSCRIBED AND FULLY PAID-UP SHARES

28,690.21 Million Equity Shares of Rs. 10 each 286,902.1 267,530.0 214,960.0

(Previous Year : 26,753.0 Million Equity Shares

of Rs.10 each)

TOTAL 286,902.1 267,530.0 214,960.0

(Share Value Rupees in Million)(Number of Shares in Million)

Particulars 2015-16 2017-18 2016-17 2015-162017-18 2016-17

Equity Shares at the beginning of the year 26,753.00 21,496.0 17,178.0 267,530.0 214,960.0 171,780.0

Add : Equity Shares Allotted during the year 1,937.21 5,257.0 4,318.0 19,372.1 52,570.0 43,180.0

Equity Shares at the end of the year 28,690.21 26,753.0 21,496.0 286,902.1 267,530.0 214,960.0

B. i) Reconciliation of number of shares :

ii) Term/rights attached to equity shares : The Company has single class of shares i.e. Equity Shares having a par value of Rs. 10 per share. Each holder of

equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after all the creditors have been paid. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) Share Holding Pattern : The Company is a Government Company with 100% shares held by the President of India and his nominees,

through administrative control of Ministry of Civil Aviation.

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NOTE "12" : OTHER EQUITY(Rupees in Million)

1. Share Application Money Pending Allotment *

Balance as per Last Balance Sheet 1,372.1 29,290.0 39,470.0

Add : Additions during the year - - -

1,372.1 29,290.0 39,470.0

Less : Shares allotted during the year 1,372.1 27,917.9 10,180.0

- 1,372.1 29,290.0

2. CAPITAL RESERVE

Balance as per Last Balance Sheet 7,194.8 6,678.3 6,485.4

Add : Additions during the year ** 147.4 825.3 494.1

7,342.2 7,503.6 6,979.5

Less : Transfer to the Statement of Prot and Loss to offset 463.5 308.8 301.2

Depreciation (Refer Note 24)

Closing Balance 6,878.7 7,194.8 6,678.3

3. GENERAL RESERVE

Balance as per Last Balance Sheet (1,436.7) (1,436.7) (1,436.7)

Closing Balance (1,436.7) (1,436.7) (1,436.7)

4. OTHER RESERVES

a) Foreign Currency Monetary Item Translation

Difference Account (FCMITDA)

Balance as per last Balance Sheet (2,349.1) (3,758.2) (3,516.6)

Add : Exchange gain/(loss) during the year (126.5) 703.7 (527.4)

(2,475.6) (3,054.5) (4,044.0)

Less : Amortization during the year 338.3 705.4 285.8

Closing Balance (2,137.3) (2,349.1) (3,758.2)

5. Surplus / (Deficit)

Balance at the beginning of the reporting period (474,867.1) (417,774.0) (375,436.7)

Changes in accounting policy or prior period errors (11,492.4) (4,073.2) (8,042.7)

Restated balance at the beginning of the reporting period (486,359.5) (421,847.2) (383,479.4)

(Loss) for the year (53,377.4) (62,815.4) (38,367.8)

Re-measurements of the Dened Benet Plans through

Other Comprehensive Income (150.9) (1,696.9) -

Net deficit (539,887.8) (486,359.5) (421,847.2)

6. Fair value changes on Equity Instruments through

Other Comprehensive Income

Opening Balance 697.3 714.0

For the year 46.6 (16.7) 714.0

743.9 697.3 714.0

TOTAL (1+2+3+4+5+6) (535,839.2) (480,881.1) (390,359.8)

* Share Application Money : Share application money amounting to Rs. NIL Million (Previous Year: Rs.1,372.1 Million) represents money paid by the

Government of India towards capital infusion during the year, but allotment of shares not yet made.

** Represents MRO Allowance received from GE towards construction of Test Cell Facility at Nagpur.

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NOTE "13" : BORROWINGS - NON CURRENT(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENTSl.No.

I Debentures 136,000.0 136,000.0 136,000.0 - - -

II Term Loans

a) from Banks (Secured) 111,911.1 116,289.5 121,249.6 5,072.1 5,065.0 2,506.8

b) from Banks (Unsecured) 14,703.6 25,067.4 24,130.7 7,104.0 1,652.1 5,693.0

c) from Other Parties (Unsecured) 209.5 218.7 233.8 10.3 10.2 10.5

III Long Term Maturities of Finance

Lease Obligations 39,451.1 57,922.8 76,449.7 19,068.7 16,533.7 16,387.4

TOTAL 302,275.3 335,498.4 358,063.8 31,255.1 23,261.0 24,597.7

13.1 Debentures

a) 136,000 Redeemable, Unsecured Non-convertible Debentures of face value of Rs.1 Million each (Previous Year : 136,000 Debentures), are guaranteed by Government of India. Maturity Prole and Rate of interest are as set out below :

(Rupees in Million)

Month of Redemption Amount to be Rate of Interest Redeemed

Dec-2031 4,714.0 9.08%

Nov-2031 10,086.0 9.08%

Sep-2031 15,000.0 10.05%

Dec-2030 4,714.0 9.08%

Nov-2030 10,086.0 9.08%

Dec-2029 4,714.0 9.08%

Nov-2029 10,086.0 9.08%

Dec-2028 4,714.0 9.08%

Nov-2028 10,086.0 9.08%

Dec-2027 4,714.0 9.08%

Nov-2027 10,086.0 9.08%

Sep-2026 40,000.0 9.84%

Mar-2020 7,000.0 9.13%

Total 136,000.0 b) Debenture Redemption Reserve as required under Section 71(4) of the Companies Act, 2013 has not been

created in the absence of earned prots by the Company.

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13.2 (a) Details of Secured Term Loans from Banks are as under : (Rupees in Million)

Sr No. Restructuring Lender As at As at As at March 31, 2018 March 31, 2017 April 01, 2016

1 Allahabad Bank 2,690.3 2,793.9 2,841.7 2 Andhra Bank 3,225.8 3,361.7 3,434.8 3 Bank of Baroda 12,023.0 12,551.8 12,768.1 4 Bank of India 15,841.6 16,337.9 16,795.8 5 Canara Bank 7,908.6 8,071.8 8,340.3 6 Central Bank of India 8,591.2 8,939.6 9,082.8 7 Corporation Bank 6,993.7 7,258.2 7,384.2 8 Dena Bank 1,263.3 1,315.2 1,313.7 9 The Federal Bank Limited 1,899.0 1,974.7 2,040.2 10 IDBI Bank Limited 4,021.1 4,183.8 4,256.3 11 Indian Bank 4,024.4 4,177.0 4,247.5 12 Indian Overseas Bank 6,618.6 6,824.1 6,974.2 13 Oriental Bank of Commerce 8,207.6 8,528.8 8,680.3 14 Punjab National Bank 11,333.8 11,772.4 11,971.9 15 Punjab & Sind Bank 2,554.2 2,653.1 2,696.3 16 State Bank of India 6,056.1 6,360.7 6,461.8 17 Syndicate Bank 5,926.3 6,145.6 6,231.6 18 UCO Bank 5,378.3 5,587.3 5,675.1 19 United Bank of India 2,426.3 2,516.9 2,559.8 TOTAL 116,983.2 121,354.5 123,756.4

For all Secured Term Loans from Banks, interest rate is linked to respective Bank's Prime Lending Rate / Base Rate / Libor plus Margin. These loans are repayable in Quarterly Installments starting from 31st December 2013 and ending in 30th September 2026. Disclosure as regards amount of repayment installment and rate of interest are not made due to complexity of repayment schedules and condentiality clause with the banks as regards interest rate.

All Term Loans from above Banks are secured by Hypothecation of 25 aircraft and 11 immovable properties at market value and all Current Assets (Previous Year 29 aircrafts, 12 immovable properties and all Current Assets). However equitable mortgage for 7 immovable properties with banks are yet to be created.

13.2 (b) Total Unsecured Term Loan from Banks of Rs.21,807.6 Million (Previous Year Rs.26,719.5 Million) has been guaranteed by the Government of India.

(Rupees in Million)

Equal Number Amount of Rate of Interest Starting Month of of Loan Loan as at Month of Maturity Installments March 31, 2018 Repayment Bullet 4,500.7 Libor + 1.45 /2.5 Sep-2016 Sep-2021

14 689.4 Libor + 2.13455 Apr-2015 Apr-2021

14 758.7 Libor + 2.15 Mar-2015 Mar-2021

13 901.2 Libor + 1.55 Mar-2016 Mar-2021

13 997.1 Libor + 1.55 Mar-2016 Mar-2021

17 13,960.5 Libor + 1.80 Jun-2016 Mar-2020

TOTAL 21,807.6

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13.2 (c) Unsecured Term Loan from Others of Rs.219.8 Million (Previous Year Rs.228.9 Million) are guaranteed by the Government of India.

(Rupees in Million)

Equal Number Amount of Rate of Interest Starting Month of of Loan Loan as at Month of Maturity Installments March 31, 2018 Repayment

44 151.8 Interest Free Oct-1990 Oct-2039

37 68.0 Interest Free Oct-1987 Mar-2037

TOTAL 219.8

13.3 Long Term Maturities of Finance Lease Obligations of Rs.58,519.8 Million (Previous Year Rs.74,456.5 Million) are guaranteed by the Government of India to the extent of Rs.47,545.7 Million (Previous Year Rs.60,565.1 Million)

(Rupees in Million)

Number of Amount of Rate of Interest Starting Month of Equated Loan Loan as at Month of Maturity Installments March 31, 2018 Repayment 34 10,168.1 Libor + 0.24 Aug-2011 Jul-2022 41 18,413.0 Libor + 0.93 Mar-2010 Sep-2021 8 9,083.1 Libor + 0.75 Feb-2008 Feb-2021 17 3,148.0 Libor - 0.05+0.55 Jan-2009 May-2020 21 4,523.0 2.46% to 2.89% Fixed Oct-2007 Dec-2019 12 13,184.6 Libor + 0.75 Mar-2007 Dec-2019 TOTAL 58,519.8

*Current maturities of long term borrowings have been grouped under the head Other Current Financial Liabilities (Refer Note No.15)

NOTE "14" : TRADE PAYABLES(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENTSl.No.

Trade Payable * - - - 82,157.0 89,527.1 76,128.3

- - - 82,157.0 89,527.1 76,128.3

* Trade Payable includes :

Net payable to subsidiary company Air India Air Transport Services Ltd. Rs.NIL Million (Previous Year : Rs.1,229.8 Million).

Net payable to Joint Venture AI-SATS Rs. 969.8 Million net of TDS (Previous Year : Rs. 1,284.3 Million).

Also Refer Note No.53 - Identication of Micro and Small Enterprises.

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NOTE "15" : OTHER FINANCIAL LIABILITIES(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

Other Liabilities

a) Current maturities of long-term debts * - - - 12,186.3 6,727.3 8,210.3

b) Current maturities of nance lease obligations* - - - 19,068.7 16,533.7 16,387.4

c) Interest accrued but not due on borrowings - - - 6,365.7 6,544.1 6,773.3

d) Interest accrued and due on borrowings ** - - - 1,648.1 403.1 349.9

e) Other Liabilities (Net) *** 166.7 170.3 237.2 41,170.6 38,657.0 23,815.2

f) Book Overdraft - - - 18.2 - -

166.7 170.3 237.2 80,457.6 68,865.2 55,536.1

NOTE "16" : PROVISIONS(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

Provision for Employee Benefits

a) Gratuity 6,026.0 5,407.4 5,350.7 1,025.0 885.1 932.9

b) Leave Encashment 3,288.0 3,265.4 3,395.5 504.1 477.7 524.8

c) Post Employment Medical and Other Benets 10,960.2 10,923.4 9,827.1 583.6 501.1 361.2

(A) 20,274.2 19,596.2 18,573.3 2,112.7 1,863.9 1,818.9

Other Provisions

a) Re-delivery of Aircrafts 5,210.3 2,756.3 1,829.9

(B) 5,210.3 2,756.3 1,829.9 - - -

TOTAL (A + B) 25,484.5 22,352.5 20,403.2 2,112.7 1,863.9 1,818.9

* For details of Current maturities of long term debts / Finance Lease Obligation Refer Note No.13.

** Interest accrued and due includes :

Rs.529.4 Million being interest on Secured Loans repayable on demand from Banks (Previous Year : Rs. 243.4 Million), paid subsequently (Refer Note 18).

Rs.1,063.5 Million being interest on Unsecured Loans repayable on demand from Banks (Previous Year : Rs. 159.7 Million), paid subsequently (Refer Note 18).

Rs.55.1 Million being interest on Future Lease Obligation (Previous Year : Rs. NIL), paid subsequently (Refer Note 13)

*** Other Liabilities (Net) includes :

Rs.8,391.5 Million towards Guarantee Fee Liability (Previous Year : Rs.7,419.1) Rs.19,154.4 Million towards Provision for Employees including JDC impact (Previous Year : Rs.18,711.9 Million)

0 Rs.7,590.6 Million towards Delayed Payment Interest to Oil Marketing Companies (Previous Year : Rs.5,865.0)

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NOTE "17" : OTHER NON FINANCIAL LIABILITIES(Rupees in Million)


As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

As atApril 01, 2016

As atMarch 31, 2018

As atMarch 31, 2017

CURRENT

a) Forward Sales (Net) [Passenger / Cargo] - - - 22,701.2 20,310.4 16,402.2

b) Advance from customers (Net) - - - 31,016.6 615.8 438.8

c) Others Liabilities (Net) * - - - 2,269.0 2,832.4 2,343.0

d) Frequent Flyer Programme - - - 636.9 624.1 831.4

- - - 56,623.7 24,382.7 20,015.4

*Other Liabilities (Net) includes Govt. Taxes / Statutory Dues amounting to Rs.1,827.8 Million (Previous Year : Rs.2,386.1 Million)


NOTE "18" : SHORT TERM BORROWINGS(Rupees in Million)

I Loans repayable on demand :

a) from Banks (Secured) 1 / 2 / # 110,465.7 76,904.0 119,653.2

b) from Banks (Unsecured) # 109,089.2 52,609.1 31,453.0

TOTAL 219,554.9 129,513.1 151,106.2

1. Secured loans repayable on demand from Banks are to the tune of Rs.66,032.2 Million (Previous Year Rs.63,123.4 Million). Details are as under :

(Rupees in Million)

Sr.No. Name of the Lender As at As at As at

March 31, 2018 March 31, 2017 April 01, 2016

1 Allahabad Bank 3,350.0 3,850.0 3,850.0 2 Andhra Bank 1,010.0 1,010.0 1,002.9 3 Bank of Baroda 13,985.4 3,975.2 4,009.9 4 Bank of India 4,891.8 4,825.9 5,596.2 5 Canara Bank 4,794.2 5,395.6 4,810.4 6 Central Bank of India 2,716.5 2,716.5 2,716.5 7 Corporation Bank 2,186.6 2,182.1 2,185.7 8 Dena Bank 407.3 3,512.0 3,641.2 9 HDFC Bank Ltd. 50.0 - 166.8 10 The Federal Bank Limited 651.9 649.0 662.6 11 IDBI Bank Limited 1,273.4 1,256.8 1,262.6 12 Indian Bank 1,280.0 1,280.0 1,280.0 13 Indian Overseas Bank 1,613.9 2,082.5 2,041.2 14 Oriental Bank of Commerce 2,597.7 2,597.7 2,597.7 15 Punjab National Bank 3,761.0 3,770.2 3,813.8 16 Punjab & Sind Bank 786.8 784.9 789.9 17 Standard Chartered Bank 11,955.3 16,873.4 18,390.6 18 State Bank of India 1,640.9 2,032.1 2,443.7 19 Syndicate Bank 1,867.7 1,867.7 1,867.7 20 UCO Bank 4,447.8 1,697.8 1,697.8 21 United Bank of India 764.0 764.0 - TOTAL (1) 66,032.2 63,123.4 6 4 , 8 2 7 . 2

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The loans to the tune of Rs.66,032.2 Million are secured by Hypothecation of 29 aircraft, 11 immovable properties at market value and all Current Assets (Previous Year : 34 aircraft, 12 immovable properties and all Current Assets). However equitable mortgage for 7 immovable properties with banks are yet to be created.

2. Secured loan repayable on demand from Bank is to the tune of Rs.44,433.5 Million (Previous Year Rs.13,780.6 Million). Details of Secured Loans from Banks are as under :

(Rupees in Million)

Sr.No. Name of the Lender As at As at As at March 31, 2018 March 31, 2017 April 01, 2016

1 Bank of India - - 13,118.5 2 Deutsche Bank / Standard Chartered Bank - - 41,707.5 3 Investec Bank 30,893.0 - - 4 First Gulf Bank 13,686.7 13,780.6 - 44,579.7 13,780.6 54,826.0

Less : Deferred amount of upfront fees 146.2 - -

TOTAL (2) 44,433.5 13,780.6 54,826.0

TOTAL (1 + 2) 110,465.7 76,904.0 119,653.2

The loans to the tune of Rs.44,433.5 Million (Previous Year Rs.13,780.6 Million) are secured by Hypothecation of 6 aircraft at market value (Previous Year : 2 aircraft).

# Disclosure as regards Bank wise rate of interest and period of default is not made due to complexity of data & condentiality clause with the banks. (Also refer Note 13 & 15)

NOTE "19" : REVENUE FROM OPERATION(Rupees in Million)

Particulars 2017-18 2016-17

I) Scheduled Traffic Services

1 Passenger 177,440.9 160,201.2

2 Excess Baggage 1,110.1 1,039.5

3 Mail 713.4 679.5

4 Cargo 12,095.2 10,271.9

(A) 191,359.6 172,192.1

ii) Non-Scheduled Traffic Services

1 Charter 12,459.5 11,748.3

2 Block Seat Arrangement 516.8 273.4

3 Subsidy for Operation from Government 109.6 150.1

(B) 13,085.9 12,171.8

iii) Other Operating Revenue

1 Handling and Servicing 2,229.7 2,500.5

2 Manufacturers Credit 1,363.3 3,364.1

3 Incidental 17,248.2 22,542.2

4 Revenue Share from Air India Express Ltd. 4,000.0 4,500.0

(Wholly Owned Subsidiary Company)

5 Revenue Share from Air India Air Transport Services Ltd. 750.0 1,000.0

(Wholly Owned Subsidiary Company)

(C) 25,591.2 33,906.8

TOTAL (A + B + C) 230,036.7 218,270.7

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NOTE "20" : OTHER INCOME(Rupees in Million)


1 Interest Income on :

a) Bank Deposits 271.7 297.1

b) Others 283.9 309.1

c) Advances to Subsidiary Companies 3,221.7 2,277.0

2 Dividend from Long Term Investments (Trade) 69.5 75.2

3 Rent from Air India Building 886.4 809.7

4 Prot / (Loss) on Sale of Assets (Net) 1,761.5 (470.4)

5 Provisions No Longer Required written back 2,473.4 402.6

TOTAL 8,968.1 3,700.3

NOTE "21" : OTHER OPERATING EXPENSES(Rupees in Million)


1 Insurance 979.1 1,141.7

2 Material Consumed - Aircraft 6,655.2 6,363.8

3 Outside Repairs - Aircraft 21,090.8 18,395.0

4 Navigation, Landing, Housing and Parking 18,113.4 17,056.1

5 Hire of Aircraft 23,550.6 18,552.5

6 Handling Charges 13,894.0 12,937.1

7 Passenger Amenities 8,897.7 8,862.2

8 Booking Agency Commission (Net) 5,249.8 5,367.7

9 Communication Charges

i) Reservation System 10,101.5 8,925.6

ii) Others 2,123.1 2,049.2

TOTAL 110,655.2 99,650.9

NOTE "22" : EMPLOYEE BENEFIT EXPENSES(Rupees in Million)


1 Salaries, Wages and Bonus 13,847.4 12,022.9

2 Crew Allowances 10,913.8 10,288.8

3 Contribution to Provident and Other Funds 866.4 885.0

4 Staff Welfare Expenses 374.9 436.3

5 Provision for Gratuity 1,700.4 578.6

6 Provision for Leave Encashment 540.5 435.6

7 Provision for Retirement Benet 883.0 998.7

TOTAL 29,126.4 25,645.9

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AIR INDIA LIMITED

* Includes an amount of Rs.46.0 Million (Previous Year : Rs.350.6 Million) interest charged by Subsidiary Company,

AIATSL on outstanding balances.

a) Exchange rate difference in the nature of interest cost on foreign currency borrowing has not been reclassied due to

complexity of transactions.

NOTE "23": FINANCE COST(Rupees in Million)


1 Interest on :

a) Debentures 12,801.8 12,786.0

b) Short Term and Long Term Loans 25,400.9 23,967.0

38,202.7 36,753.0

2 Other Borrowing Costs * 3,354.1 3,237.9

3 Interest on Delayed Payment other than borrowings 3,084.1 2,854.8

TOTAL 44,640.9 42,845.7

NOTE "24" : DEPRECIATION AND AMORTIZATION EXPENSE(Rupees in Million)


1 Depreciation of Tangible Assets 16,894.2 15,632.2

2 Amortization of Intangible Assets 243.1 624.4

3 Impairment of Assets - 75.6

(A) 17,137.3 16,332.2

Less : Recoupment from Capital Reserve (Refer Note 12) 463.5 308.8

(B) 463.5 308.8

TOTAL (A- B) 16,673.8 16,023.4

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NOTE "25": OTHER EXPENSES(Rupees in Million)


1 Travelling Expenses

i) Crew 2,309.6 2,146.9

ii) Others 527.1 724.7

2 Rent 1,050.7 861.0

3 Rates and Taxes 168.7 246.0

4 Repairs to :

i) Buildings 403.9 423.0

ii) Others 980.9 1,208.8

5 Hire of Transport 758.0 672.5

6 Electricity & Heating Charges 628.6 463.8

7 Water Charges 28.4 8.0

8 Directors' Sitting Fees 0.2 0.1

9 Publicity and Sales Promotion 1,185.6 1,002.2

10 Printing and Stationery 118.8 132.1

11 Legal Charges 126.3 131.5

12 Payments to the Auditors' (Refer Note No.54)

i) Audit Fees 10.5 10.5

ii) Other Expenses 1.6 1.6

13 Provision for Bad & Doubtful Receivables and Advances 793.5 1,849.6

14 Write-off / Write back of Obsolete Inventory 1,612.0 2,246.8

15 Expenses on Block Seat Arrangements 176.1 191.7

16 Exchange Variation (Net) 307.8 (101.6)

17 Bank Charges 1,987.5 1,607.2

18 Miscellaneous Expenses 3,359.3 1,886.9

TOTAL 16,535.1 15,713.3

NOTE "26" : EXCEPTIONAL ITEMS (NET)(Rupees in Million)


1 Allowance for balance 25% payable to Employees as per JDC (337.5) (12,981.6) (Refer Note 29)

2 Duty Credit Entitlement under SFIS (786.4) (8,472.3)

TOTAL (1,123.9) (21,453.9)

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Notes forming part of the Standalone Financial Statements of Air India Ltd for the year ended 31st March 2018

(Rupees in Millions except for share data and if otherwise stated) �27. Transitions to Ind AS:

st These standalone nancial statements of Air India Limited for the year ended 31 March 2018 is the rst nancial statement of the company prepared on the basis of Ind AS. The Company has adopted all applicable Ind AS in accordance with Ind AS 101- First Time Adoption of Indian Accounting Standards. The transition was carried out from Indian GAAP as prescribed under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Account) Rules, 2014 which was the previous GAAP.

The Signicant Accounting Policies set out in Note No. – 1 have been applied in preparing the nancial st ststatements for the year ended 31 March 2018,31 March 2017 and the opening Ind AS Balance Sheet on

stthe date of transition i.e. 1 April 2016.

st In preparing opening Ind AS Balance Sheet as on 1 April 2016 and in presenting the comparative stinformation for the year ended 31 March 2017, the Company has adjusted amounts reported previously

in the nancial statements prepared in accordance with the previous GAAP. This note explains the principal adjustment made by the company in restating its nancial statement prepared in accordance with previous GAAP, and how the transition from Indian GAAP to Ind AS has affected company's nancial position, nancial performance and cash ows.

(a) Exemptions and Exceptions availed:

Ind AS 101 allows rst-time adopters certain optional exemptions and mandatory exception from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions/exceptions:

(i) Ind AS Optional Exemptions:

1. Property, Plant and Equipment, Investment Property and Intangible Assets as Deemed Cost

The company has opted to avail the exemption made available under Ind AS 101 to continue the carrying value of all property, plant and equipment, Investment properties and intangible assets as recognized in the nancial statements as at the date of transition to Ind AS, measured as per the previous Indian GAAP and use that as deemed cost as at

stthe date of transition i.e. 1 April 2016.

2. Exchange differences arising from translation of long-term foreign currency monetary items:

The Company has opted to avail the exemption under Ind AS 101 to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognized in nancial statements for period ending immediately before beginning of rst Ind AS nancial reporting period as per Indian GAAP (i.e. till March 31, 2016). Consequent to which:

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154

- Exchange differences arising on long-term foreign currency monetary items outstanding stas on 1 April 2016 related to acquisition of Depreciable Assets are capitalized and

depreciated over the remaining useful life of the asset.

- Exchange differences arising on other long-term foreign currency monetary items stoutstanding as on 1 April 2016 are accumulated in the “Foreign Currency Monetary Item

Translation Difference Account” and amortized over the remaining life of the concerned monetary item.

3. Investments in Subsidiaries & Joint Venture:

Investment in subsidiaries & joint venture has been recorded at deemed cost which is the carrying amount under previous GAAP at the date of transition.

4. Business Combination

The Company has elected not to apply Ind AS 103- Business Combinations, retrospectively to past business combinations that occurred before 1st April, 2016.

(ii) Ind AS Mandatory Exceptions:

1. Estimates

The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP apart from the following items where application of Indian GAAP did not require estimation:

a) Impairment of nancial assets based on expected credit loss model

b) Fair valuation of nancial instruments carried at FVTPL / FVOCI.

c) Determination of the discounted values is carried out for (i) Financial instruments at amortized cost and (ii) Provisions.

d) Fair Valuation of Frequent Flyer Programme

2. Classification and measurement of Financial Assets:

As required under Ind AS 101, the company has classied and measured the nancial assets in accordance with the Ind AS 109 on the basis of the facts and circumstances that exists at the date of transition to Ind AS.

3. Reconciliations between Previous Indian GAAP and Ind AS:

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash ows for previous periods. The following tables and notes represent the reconciliations from Previous Indian GAAP to Ind AS:

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(i) Effect of IND-AS adoption on the Balance Sheet as on 1 April, 2016 :(*Previous Indian GAAP gures have been reclassied to conform to Ind AS presentation requirements for the purpose of this Note.)

Particulars Note No. Previous Adjustments Ind AS GAAP

ASSETS :

1 Non-current Assets

(i) Property, Plant & Equipment A, G 283,298.8 (14,459.8) 268,839.0

(ii) Capital Work-in-Progress A 6,734.0 (118.7) 6,615.3

(iii) Investment Property G 15,551.8 15,551.8

(iv) Intangible Assets 1,223.3 - 1,223.3

(v) Intangible Assets under development 13.5 - 13.5

291,269.6 973.3 292,242.9

(vi) Financial assets:

a) Investments E 16,717.8 714.0 17,431.8

b) Trade Receivables 47.4 - 47.4

c) Loans C 5,385.5 (2,849.5) 2,536.0

d) Others A 19,361.2 (8.2) 19,353.0

(vii) Income Tax Assets (net) 3,562.9 - 3,562.9

(viii) Deferred Tax Assets (net) 28,425.2 - 28,425.2

(ix) Other Non-Current Assets A, C, D 15,329.1 2,898.1 18,227.2

88,829.1 754.4 89,583.5

2 Current Assets

(i) Inventories A 15,011.1 (1,217.0) 13,794.1

(ii) Financial assets:

a) Trade Receivables A, B 19,030.1 (2,553.5) 16,476.6

b) Cash and Cash equivalents 4,060.4 - 4,060.4

c) Bank balances other than (b) above 3,994.4 - 3,994.4

d) Loans 220.5 - 220.5

e) Others A 3,613.4 (260.9) 3,352.5

(iii) Income Tax Assets (Net) 469.8 - 469.8

(iv) Other Current Assets A, B, C, D 20,561.5 (118.8) 20,442.7

66,961.2 (4,150.2) 62,811.0

3 Assets held for Sale/Assets included

in disposal group held for sale A 62,777.7 494.2 63,271.9

Total Assets 509,837.6 (1,928.3) 507,909.3

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EQUITY AND LIABILITIES :

1 Equity

a) Equity Share Capital 214,960.0 - 214,960.0

b) Other Equity K (382,979.3) (7,380.5) (390,359.8)

(168,019.3) (7,380.5) (175,399.8)

2 Liabilities :

(i) Non-current Liabilities

a) Financial Liabilities

i) Borrowings 358,063.8 - 358,063.8

ii) Trade Payables - - -

iii) Other A 237.1 0.1 237.2

b) Provisions A, D 11,393.6 9,009.6 20,403.2

c) Other non Current Liabilities - - -

369,694.5 9,009.7 378,704.2

(ii) Current Liabilities


i) Borrowings 151,106.2 - 151,106.2

ii) Trade Payables A 74,495.6 1,632.7 76,128.3

iii) Other A 55,371.9 164.2 55,536.1

b) Provisions A, H 2,081.1 569.2 2,650.3

c) Other Current Liabilities A 25,107.6 (5,923.6) 19,184.0

308,162.4 (3,557.5) 304,604.9

Total Equity & Liabilities 509,837.6 (1,928.3) 507,909.3

(ii) Effect of IND-AS adoption on the Balance Sheet as on 31 March, 2017: (*Previous Indian GAAP gures have been reclassied to conform to Ind AS presentation requirements for the purpose of this Note.)


ASSETS :

1 Non-current Assets

(i) Property, Plant & Equipment A, G, I, J 294,963.5 (13,294.3) 281,669.2

(ii) Capital Work-in-Progress A 2,320.9 452.3 2,773.2

(iii) Investment Property G - 15,112.4 15,112.4

(iv) Intangible Assets 628.4 - 628.4

(v) Intangible Assets under development 13.5 - 13.5

297,926.3 2,270.4 300,196.7

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(vi) Financial assets:

a) Investments E 16,717.7 697.4 17,415.1

b) Trade Receivables 61.6 (0.0) 61.6

c) Loans C 5,764.5 (2,998.7) 2,765.8

d) Others A 25,729.7 116.5 25,846.2

(vii) Income Tax Assets (net) 2,821.1 - 2,821.1

(viii) Deferred Tax Assets (net) 28,425.2 - 28,425.2

(ix) Other Non-Current Assets A, C, D 17,803.4 3,251.8 21,055.2

97,323.3 1,066.9 98,390.2

2 Current Assets

(i) Inventories A 12,767.0 (1,920.6) 10,846.4

(ii) Financial assets: - -

a) Trade Receivables A, B 18,572.3 (2,070.5) 16,501.8

b) Cash and Cash equivalents 2,239.8 - 2,239.8

c) Bank balances other than (b) above 5,111.6 - 5,111.6

d) Loans 147.5 - 147.5

e) Others A 3,979.7 (249.5) 3,730.2

(iii) Income Tax Assets (Net) 577.6 - 577.6

(iv) Other Current Assets A,B,C,D 20,417.3 65.7 20,483.0

63,812.8 (4,174.9) 59,637.9

3 Assets held for Sale/Assets included in

disposal group held for sale A 89.8 507.5 597.3

Total Assets 459,152.1 (330.0) 458,822.1

EQUITY AND LIABILITIES :

1 Equity

a) Equity Share Capital 267,530.0 - 267,530.0

b) Other Equity K (466,675.1) (14,206.0) (480,881.1)

(199,145.1) (14,206.0) (213,351.1)

2 Liabilities :

(i) Non-current Liabilities


i) Borrowings 335,498.4 - 335,498.4

ii) Trade Payables - - -

iii) Other A 170.2 0.1 170.3

b) Provisions A, D 11,671.8 10,680.7 22,352.5

c) Other non Current Liabilities - - -

347,340.4 10,680.8 358,021.2

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(ii) Current Liabilities


i) Borrowings 129,513.1 - 129,513.1

ii) Trade Payables A 87,415.8 2,111.3 89,527.1

iii) Other A 67,704.0 1,161.2 68,865.2

b) Provisions A, H 2,076.5 411.5 2,488.0

c) Other Current Liabilities A 24,247.4 (488.8) 23,758.6

310,956.8 3,195.2 314,152.0

Total Equity & Liabilities 459,152.1 (330.0) 458,822.1

(iii) Reconciliation of Total Comprehensive Income for the year ended 31 March, 2017

Particulars Foot Note IGAAP Adjustments Ind AS

I Revenue from Operation

(i) Scheduled Trafc Services A 171,969.3 222.8 172,192.1

(ii) Non-Scheduled Trafc Services A 12,343.5 (171.7) 12,171.8

(iii) Other Operating Revenue A, H 34,283.3 26.1 34,309.4

Revenue from Operation 218,596.1 77.2 218,673.3

II Other Income A, C 3,180.7 117.0 3,297.7

III Total Revenue (I+II) 221,776.8 194.2 221,971.0

IV Expenses

(i) Aircraft Fuel & Oil A 63,375.8 77.5 63,453.3

(ii) Other Operating Expenses A, C, D 98,059.1 1,591.8 99,650.9

(iii) Employee Benet Expenses A, F 25,578.3 67.6 25,645.9

(iv) Finance Costs A 42,358.7 487.0 42,845.7

(v) Depreciation and Amortization A 16,095.1 (71.7) 16,023.4

(vi) Other Expenses A 16,405.5 (692.2) 15,713.3

(vii) Prior Period Adjustments (Net) A (3,897.9) 3,897.9 -

Total Expenses 257,974.6 5,357.9 263,332.5

(Loss) before Exceptional Items and Tax (III-IV) (36,197.8) (5,163.7) (41,361.5)

V Exceptional Items (Net) (21,453.9) - (21,453.9)

VI (Loss) before Tax (VII+VIII) (57,651.7) (5,163.7) (62,815.4)

VII Tax Expenses :

VIII (Loss) for the year (IX-X) (57,651.7) (5,163.7) (62,815.4)

Balance brought forward

VII Loss carried to Balance Sheet (57,651.7) (5,163.7) (62,815.4)

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Particulars Foot Note IGAAP Adjustments Ind AS

IX Other Comperhensive Income

(a) Items that will not be reclassied to prot or loss Remeasuremets of dened benets plans Income tax relating to above mentioned items

(i) Re-measurements of the Dened Benet Plans A, F (1,696.9) (1,696.9)

(ii) Fair value changes on Equity Instruments through Other Comprehensive Income E (16.7) (16.7)

Other Comptehensive Income for the year (1,713.6) (1,713.6)

X Total Comperhensive Income for the year (57,651.7) (6,877.3) (64,529.0)

(iv) Reconciliation of Total Equity as at 31 March 2017 and 1 April 2016

(Rs in Millions)

Particulars As at 31st March, 2017 As at 1st April, 2016

Equity Under Previous Indian GAAP (199,145.1) (168,019.3)

Adjustments due to IND-AS

i) Prior Period Expenses (11,492.4) (4,073.2)

ii) Additional Provision as per ECL (1,999.1) (2,099.8)

iii) Impact of measurement of Security

Deposits at amortized cost (Net) (240.8) (218.2)

iv) Impact of recognition of Re-Delivery

Provision (Net) (1,423.5) (1,141.4)

v) Impact of recognition of Customer Loyalty

Program (FFP) under IND-AS 18 (411.5) (561.8)

vi) Fair Valuation of Investments 697.4 714.0

vii) Exchange Differences on Long Term

Foreign Currency Monetary Items (Net) 742.3 -

viii) Impact of recognition of borrowing cost

at effective Interest Rate (Upfront Fee) (Net) (78.5) -

Equity Under Ind As (213,351.1) (175,399.8)

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st (v) Reconciliation of Profit or Loss for the year ended 31 March 2017

(Rs in Millions)

Particulars 2016-17

Net Prot for the year as per Previous GAAP (57,651.7)

PriorPeriod Expenses (Net) identied in 2017-18 relating to 2016-17 (3,572.9)

Prior Period Income (Net) for 2016-17 restated in the Opening

Balance at 1st April, 2016 (3,897.8)

Adjustment for Provision as per ECL 100.7

Impact of recognition of Re-Delivery Provision (Net) (282.1)

Impact of measurement of Security Deposits at amortized cost (Net) (22.7)

Impact of recognition of Customer Loyalty Program (FFP) under IND-AS 18 150.3

Actuarial Valuation of Dened benet plan reclassied in Other Comprehensive Income 1,696.9

Exchange Differences on Long Term Foreign Currency Monetary Items (Net) 742.3

Impact of recognition of borrowing cost at effective Interest Rate (Upfront Fee) (Net) (78.5)

Net Profit for the year as per Ind AS (62,815.4)

Other Comprehensive Income (1,713.6)

Total Comprehensive Income as per Ind AS (64,529.0)

(vi) Reconciliation of Statement of Cash Flow

(Rs in Million)

Particulars For the year ended 31.03.2017

Previous Ind AS Adjusted GAAP Adjustment Figures (Refer Note (Ind AS) Below)

Net increase/(decrease) in cash and (1,683.8) (114.9) (1,798.7) cash equivalents

Cash and cash equivalents at the beginning of the year 5,365.1 (1,304.7) 4,060.4

Cash and cash equivalents at the end of the year 3,659.4 (1,419.6) 2,239.8

Note : Represents reclassication of Deposits - Others (with maturity period as at year end of More than 3 months but Less than 12 Months) which was earlier classied under Cash and Cash Equivalents under Previous GAAP.

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(b) Notes to Reconciliation

A. Prior Period

As per Ind AS - 8, errors have been corrected by retrospective restatement. Prior period income of Rs 3,897.8 million (Net) which was recognized in the Statement of Prot & Loss for F.Y. 2016-17 has been restated by adjusting the retained earnings as at 1 April, 2016 with corresponding effect in the respective assets/ liabilities.

Prior period expenses of Rs 11,492.4 million (Net) were identied during the FY 2017-18, stout of which expense of Rs 7,919.5 million (net), relating to the periods prior to 1 April

2016, has been restated by adjusting the retained earnings in the opening balance sheet with corresponding effect in the respective assets / liabilities. Further expenses of Rs 3,572.9 (Net), relating to the FY 16-17, have been restated in the comparable gures with corresponding effect in the respective assets/ liabilities.

Details of major items of Prior Period Errors are as under:

st st No Particulars As on 1 April For the Year As at 31 March 2016 2016-17 2017

i) Medical Benets 7187.0 737.0 7924.0

ii) Nerul Property 1089.0 0 1089.0

iii) MIAL Compensation 2794.0 0 2794.0

B. Trade/Non-Trade Receivables

Under previous GAAP the company had recognized provision for trade/non-trade receivables as per the internal policy of the company based on ageing of trade receivables. Under Ind AS the company has provided for loss allowance on receivables based on a provision matrix computed under the expected credit loss model following IND-AS 109.

As a result of the above, the net carrying value of Trade receivables as at the transition stdate and 31 March 2017 has decreased by Rs 1,866.6 million and Rs 1,544.5 million

respectively with a corresponding decrease in retained earnings and decrease in 'Other stExpenses' for the year 31 March 2017 by Rs 322.1 million.

Further, as a result of the above, the net carrying value of Non-Trade receivables as at the sttransition date and 31 March 2017 has decreased by Rs 233.2 million and Rs 454.6

million respectively with a corresponding decrease in retained earnings and increase in st'Other Expenses' for the year 31 March 2017 by Rs 221.4. million.

C. Financial Assets Under Indian GAAP, the Company measured interest free security deposits at transaction

value. Under Ind AS, these deposits are required to be initially recognized, wherever the effect of time value of money is material (Refer Policy No. XXII for Threshold Limits), at fair value and subsequently measured at amortized cost, the difference between the fair value and the transaction cost has been recorded as prepaid lease rent.

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st As a result of the above, the amount of security deposit as on 1 April 2016 has decreased by Rs 2,849.5 million with a corresponding increase to prepaid lease rent by Rs 2,631.3 million and decrease to retained earnings by Rs 218.2 million.

st Further as at 31 March 2017, security deposit has decreased by Rs. 2,998.8 million with a corresponding effect to prepaid lease rent by Rs. 2,757.9 million. The prot for the year ended 31 March 2017 decreased by Rs. 22.7 million due to amortization of deferred rent by Rs. 287.7 million (included in aircraft Lease rentals), increase in foreign exchange gain by Rs. 69.1 million due to restatement of security deposit as at reporting date (included in other expenses) and increase in notional interest income of Rs. 195.9 million recognized on security deposits (included in other income).

D. Long Term Provisions and Trade Payables

Under Indian GAAP, the Company had accounted for trade payables and provisions, including long-term provision, at the undiscounted amount. Also, Under Indian GAAP Company had not accounted for re-delivery provision for leased aircraft. Under Ind AS, the same has been accounted for and also where the effect of time value of money is material, the amount of provision and trade payables has been recorded at the present value of the expected outow required to settle the obligation. Accordingly, the impact due to above adjustments in balance sheet is Rs. 1,829.9 million and Rs. 2,756.3 million as on

st st1 April 2016 and 31 March 2017 respectively with a corresponding increase in pre-paid lease rent as on the said dates by Rs 688.4 million and Rs 1332.8 million respectively

stand also has the effect of decrease in retained earnings as on the transition date and 31 March 2017 by Rs. 1,141.4 million and Rs 1423.5 million respectively and decrease in Statement of Prot and Loss for the year 2016-17 by Rs. 282.1 million.

E. Investments

Investments other than subsidiaries and joint venture have been measured at fair value through OCI. The difference between fair value and Indian GAAP carrying amount (Net

stGain) of Rs. 714.0 million has been recognized in retained earnings as at 1 April, 2016 and during 2016-17 the decrease in Fair value of Rs. 16.7 million has been recognised in Other Comprehensive Income.

F. Re-measurement of Post-Employment Benefit Plans

Under Ind AS, re-measurements i.e. actuarial gains and losses on the net dened benet obligation are recognized in Other Comprehensive Income instead of Statement of Prot and Loss as per the previous Indian GAAP. As a result of this change, the employee benet expense to the extent of actuarial losses amounting to Rs. 1,696.9 million for the year ended 31 March 2017 has been reclassied to Other Comprehensive Income. There is no impact on the other equity due to this as at 31 March 2017.

G. Investment Property:

Items of PPE have been classied as Investment Property if held, either to earn rental income or capital appreciation or for both, but not for sale in the ordinary course of business or use in supply of goods or services or for administrative purposes.

stAccordingly, PPE has decreased by Rs 15112.4 million as on 31 March 2017 and Rs st15551.8 million as on 1 April 2016 and with a corresponding increase in Investment

Property.

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H. Frequent Flyer Program

Under Indian GAAP, the company had provided for liability for frequent Flyer Program on the basis of estimated cost of accumulated mileage points. However, under Ind AS the loyalty points have been calculated on the basis of past experience of utilization of such points the fair value of which is recognized as Deferred Revenue. Further, the same is recognized as revenue in the year in which the points are redeemed. Accordingly, the liability in respect of FFP Loyalty Program has increased by Rs. 561.8 million as at 1st

stApril 2016 with a corresponding effect in retained earnings. Further, the liability as at 31 March 2017 has increased by Rs. 411.5 million with a Net Impact (Gain) on the Statement of Prot and Loss for FY 2016-17 by Rs 150.3 million.

I. Foreign Exchange Translation Difference on Long Term Loans

Under Indian GAAP, the company had been amortizing the Exchange differences on loans over the remaining useful life of the respective assets. Under Ind AS, Exchange

stdifferences on loans taken after 1 April, 2016 has been charged in the prot and loss in the year to which it pertains. As a result of this the net carrying amount of assets (including Assets Held for Sale) has increased by a Net amount of Rs. 940.6 million for the year

stended 31 March, 2017 with a corresponding Net effect to Statement of Prot and loss amounting to Rs 935.5 million after adjusting depreciation amount of Rs. 5.1 million.

J. Borrowing Cost (Upfront fee)

Under Ind AS, Upfront Fees on loans taken after 1st April, 2016 has been recognized based on the effective interest rate. However, for FY 2016-17 the de-capitalization impact of the same is Rs 297.5 million, with corresponding effect in borrowings and the net impact on the P&L is Rs 78.5 million.

K. Retained Earnings

st st Retained earnings as on 1 April 2016 and 31 March 2017 have been appropriately adjusted consequent to the above Ind AS transition adjustments.

28. Contingent Liabilities& Contingent Assets:

A. Contingent Liabilities:

Claims against company not acknowledged as debts (excluding interest and penalty, in certain cases) and the required information, in compliance of Ind AS 37, are as under:

(Rs in Millions)

No Description Balance as on Balance as on Balance as on 31st March 2018 31st March 2017 1st April 2016

(i) Pax Claims on account of Misc Commercial Reasons. 365.5 359.3 341.9

(ii) Income Tax Demand Notices received by the Company which are under Appeal 540.6 423.0 1168.3

(iii) Customs Duty and Service Tax demanded by the Tax Authorities 7668.2 7357.5 6944.1

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No Description Balance as on Balance as on Balance as on 31st March 2018 31st March 2017 1st April 2016

(iv) Property Taxes/House Tax demanded by the Municipal Authorities 107.7 117.2 140.0

(v) Claims of Airport Operators/Others (*) 6118.2 6140.7 5298.0

(vi) (a) Other Claims on account of Staff/ 1848.1 1700.9 1245.5 Civil/Arbitration/Labour Cases pending in Courts (b) Claim for Vasant Vihar Colony 3736.0

(vii) Government Guarantee Fee (**)

a) Difference between Applicable 3066.1 3594.4 1526.7 Rate & the rate of 0.5% at which Guarantee Fee has been provided b) Additional Guarantee Fee 13957.4 10656.0 8014.9

Total 33671.8 30349.0 28415.4

Explanatory Statement in respect of Other Contingent Liabilities

a) Claims of Airport Operators includes (*)

st (i) AAI has raised a demand of Rs 760.0 million (Previous Year Rs.760.0million, 1 April 2016 Rs 760.0 million) towards interest on delayed payments for the year 2012-13 but the same has not been accepted by AI in terms of the MOU and subsequent correspondence made with AAI in this regard. Therefore, the same has not been provided for and disclosed as contingent liability.

(ii) In the case of Other Airport Operators, claims of Rs 4806.5 million(Previous Year Rs. st4929.2 million, 1 April 2016 Rs 4122.2 million) for interest on delayed payments has also

not been accepted and pending determination of actual liability for the same, the amounts demanded by the parties have been shown as Contingent Liability.

b) Govt Guarantee Fee (**): The company has provided for Guarantee Fee @ 0.5% on all aircraft loans and working capital loans guaranteed by the Govt. The company has taken up the issue for waiver of Guarantee Fees over and above 0.5% in respect of Working Capital and External Commercial Borrowings (ECB) loans with the Ministry of Civil Aviation/Finance. Accordingly, the Guarantee Fee over and above 0.5% amounting to Rs 3066.1 million(PY:

stRs.3594.4 million, 1 April 2016 Rs 1526.7 million) for which waiver has been requested has been disclosed as Contingent Liability. Further, the additional liability on account of the delayed

stpayments of Guarantee Fee amounting to Rs 13957.4 million(PY: Rs.10656.0 million, 1 April 2016 Rs 8014.9 million) has also been shown as Contingent Liability. The Company has taken up the issue of reduction/waiver of Guarantee Fee and the waiver of Penal Charges with the Ministry of Civil Aviation which is still under process.

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B. Contingent Assets:

During the year the year (2017-18), the Honorable Supreme Court of India has vacated the stay granted by the Honorable High Court of Delhi in respect of implementation of tariff xed by AERA applicable with effect from 01/01/2016. In this regard the tariff xed for the 2nd control period (i.e.

stfrom 1.1.2016), was lower than the tariff xed for the 1 control period (tariff prior to 1.1.2016).In view of this judgment, DGCA issued AIC (Aeronautical Information Circular) for the implementation of 2nd control period tariff with immediate effect, however, the same is still to be implemented. In the intervening period DIAL has collected from Air India, an excess amount to the tune of Rs 1980.0 million approx. on account of Landing & Parking Charges. The company has requested AERA that while xing the tariff, the airlines who have shouldered the burden of excess amount collected may be compensated by way of discount in tariff in proportion to the excess amount collected by DIAL from respective airlines.

During the normal course of business, certain unresolved claims are outstanding. The inow of economic benets in respect of such claims cannot be measured due to uncertainties that surround the related events/circumstances.

29. Revised Basic Pay on the basis of Justice Dharamadhikari Committee Report

Based on Justice Dharamadhikari Committee (JDC) recommendations, the Revised Basic Pay (RBP) had been implemented for all the categories of the employees from different dates. In FY 2016-17 a provision Rs 12981.6 million was provided, an additional provision of Rs 337.5 million has been made on the nalization of the agreements with the remaining categories of employees. As a result the total

stprovision on account of JDC recommendations as on 31 March 2018 is now Rs 13319.1 million.

30. Commitments:

(i) Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account are given hereunder:

(Rupees in Millions)

Particulars As at 31 March, As at 31 March, As at 1st April, 2018 2017 2016

Aircraft Pre-Delivery Payments 2607.9 55809.2 110709.6

Others 1550.4 2070.6 2239.9

4158.3 57879.8 112949.5

(ii) Other Long-Term Commitments

a) Corporate Guarantees, Letters of Comfort given by the Company on behalf of its Subsidiary Companies:

(Rupees in Million)

Particulars As at 31 March, As at 31 March, As at 1st April, 2018 2017 2016

Air India Chaters 7434.0 7409.4 4195.6

Airline Allied Services Ltd. 4074.1 2805.3 2439.6

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Against the above Guarantees given by company, guarantee fee/commission has been charged by the company at the rate of 0.5%.

st b) Commitment in respect of non-cancellable Operating Leases in respect of aircraft as at 31 March st2018 is Rs 255,282.6 million (PY: Rs 253,898.4 million and 1 April 2016 Rs 245,775.1 million)

31. Disinvestment of Air India Ltd

(i) In view of the NITI Aayog recommendations on the disinvestment of AI and followed by the recommendations of the Core Group of Secretaries on disinvestment (CGD), the Cabinet Committee on Economic Affairs (CCEA) has given an 'In-Principle' approval for considering the strategic disinvestment of the group in it's meeting held on 28th June 2017. CCEA also constituted the Air India Specic Alternative Mechanism (AISAM) to guide the process of strategic disinvestment. The Transaction Advisor, Legal Advisor and Asset Valuer had also been appointed to guide the Govt and to carry forward the process of Disinvestment.

In the AISAM Meeting held on 18th June 2018 it was decided that:

a) In view of the volatile crude prices and adverse uctuation in exchange rates, the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in the near future.

b) To undertake near and medium-term efforts to capture operational efciencies and to improve the performance of Air India.

c) To monetize non-core land and building assets

d) To separately decide the contours of the mode of disposal of the subsidiaries viz. Air India Engineering Services Ltd (AIESL), Air India Transport Services Ltd (AIATSL) and Airline Allied Services Ltd (AASL)

e) Once the global economic indicators including oil prices and the forex regime stabilizes, the option of strategic disinvestment of Air India should be brought before AISAM, for deliberating the future course of action.

th (ii) In line with the directives issued by the Ministry of Finance, Govt of India dated 7 September 2018, in connection with the nancial and operational restructuring of Air India Ltd, the Board of Directors in

thits meeting held on 16 October 2018 has decided to transfer 100% share holding of its Subsidiary AIATSL to Air India Asset Holding Co Ltd (AIAHL, the SPV), subject to necessary approvals and authorized the Company to initiate the talks with AIATSL/AIAHL to nalize the detailed terms and conditions of the transfer.

32. Plant, Property and Equipment

a) Land and Buildings include certain properties for which title deeds are not available. Details of the same are as under:

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(Rs in Millions)

st Particulars 31.03.2018 31.03.2017 As on 1 April 2016 Area Gross Net Area Gross Net Area Gross Net (Sq Mtrs) Block Block (SqMts) Block Block (Sq Mtrs) Block Block

Land/Buildings Freehold 23904.26 387.1 387.1 23904.26 387.1 387.1 23904.26 387.1 387.1

Land/Buildings Leasehold 93551.52 412.7 412.7 93551.52 412.7 412.7 93551.52 412.7 412.7

Total 117455.78 799.8 799.8 117455.78 799.8 799.8 117455.78 799.8 799.8

b) Investment Properties:

Investment properties include certain properties for which title deeds are not available. Details for the same areas under:

(Rs in Millions)


Land/Buildings Freehold - - - - - - - - -

Land/Buildings Leasehold - - - 14326.38 4770.7 4770.7 14326.38 4770.7 4770.7

Total - - - 14326.38 4770.7 4770.7 14326.38 4770.7 4770.7

i) In terms of decision taken, as per the records of the discussions held in the Ministry of Finance ston 1 June 2017 for the development of assets of AI located at Vasant Vihar Housing

Colony121410 sq mtrs (Rs 51295.1 million) and Baba Kharag Singh Marg Land 14326.38 sq mtrs (Rs 4770.7 million), the physical possession of these unregistered properties has been handed over to the Ministry of Urban Development (MoUD). The MoUD has been entrusted with the overall responsibility of development and sale of these two properties by the Govt. The sale proceeds from these two properties shall be utilized in liquidating Air India debts. These properties are under charge against working capital loans taken from various banks. Till the above process is completed, the said properties have been classied as Investment Properties

stupto 31 March 2017 and thereafter as “Assets held for Sale”

ii) The company had 508 ats constructed in Nerul on a portion of land admeasuring 28,626 sqmtrs and it has been decided to sell these ats to the employees of the company and organizations under the control of Ministry of Civil Aviation. In terms of the Orders of Hon'ble High Court at Bombay (the Court), the company issued allotment letters to 332 allottees out of 508 ats constructed and physical possession of 280 ats has also been handed over in the earlier years. However, title to the underlying land can only be conveyed by a tripartite conveyance deed between Societies, Air India and CIDCO which is not yet done. Pending conveyance of title of land in favor of the registered societies and completion of all legal formalities necessary adjustments have been made as at the Transition Date (01/04/2016) and the value of this property is being carried as under:

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a) Net Value of 330 ats (including cost of land) amounting to Rs 1468.0 million allotted in stearlier years were transferred to Assets held for Sale at the estimated sale value as on 1

April 2016 after adjusting an amount of Rs 1077.9 million (Loss) as impairment loss through Retained Earnings.

b) Carrying Value of the balance 178 ats and the vacant land amounting to Rs 4198.1 million being depreciated cost has been shown under Investment Property.

Necessary entries for the sale of the ats will be made on the completion of the legal formalities.

iii) Under TAP/FRP, monetization of these properties is in the process, hence fair value of the investment properties could not be disclosed as a condentiality measure.

iv) Disclosure under IND-AS 40

(Rs in Millions)

No Particulars 2017-18 2016-17

Properties Properties Properties Properties Earning Rent not Earning Earning not Earning Rent Rent Rent

A Rent Earned 923.7 Nil 840.3 Nil

B Operating Expenses

i) Repair & Maintenance 59.8 36.4 41.1 35.3

ii) Electricity 58.7 24.5 66.9 20.3

iii) Property Taxes 23.1 2.5 38.0 6.4

iv) AMC Expenses 21.3 11.2

33. Advance against Land at Nerul

Long Term Loans & Advances include a sum of Rs 24.6 million (PY: Rs 24.6 million) being the advance paid by the company to CIDCO for the purchase of another plot of Leasehold Land at Nerul for the purpose of construction of staff quarters. However, the possession of the plot allotted by CIDCO in this regard has not been handed over to the company and no agreement/lease deed has been executed so far.

34. Assets Held for Sale

Assets held for sale mainly includes

a) Immovable Properties in respect of which the Board has accorded its approval for sale/monetization. Hence, these properties have been transferred to “Assets Held for Sale A/c” at lower of their carrying value and fair value less cost to sell. “Assets held for Sale” include certain properties for which title deeds are not available. Details for the same areas under:

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(Rs in Millions)


Land/Buildings Freehold - - - - - - - - -

Land/Buildings Leasehold 135736.36 56191.0 56191.0 - - - - - -

Total 135736.36 56191.0 56191.0 - - - - - -

b) Two B-777-300ER aircraft have been procured on behalf of Govt of India has been classied as Assets held for Sale. The entire cost of these aircrafts including the cost of modication will be borne by the Govt of India.

35. Compensation

In terms of the agreement between MIAL and Air India Ltd, MIAL has agreed for compensation for relocating Air India facilities against handing over of the existing locations (i.e. land which was on operating lease and hangar constructed thereon) as the said area was needed by MIAL for the development of the Mumbai Airport and its runway.

As a result of the above said agreement, the company has received from MIAL a part of the compensation in the form of assets received in a phased manner in earlier periods. The total value of compensation for these assets has been determined during the current year at Rs 2952.4 million. Out of this amount of Rs 2952.4 million, an amount of Rs 2794.3 million has been accounted for through Retained Earnings as on

st1 April 2016 and the balance amount of Rs 158.1 million has been recognized in the current year statement of Prot & Loss.

Further, the additional compensation receivable from MIAL is to be accounted for on the completion of the entire process i.e. after comprehensive review of total leased areas/premises ultimately held once the expansion work is completed/certied and handing/taking over is completed.

36. Vayudoot

After carrying out all disbursements as per the directions of the Ministry of Civil Aviation pertaining to the merger of Vayudoot with Air India Ltd, a balance amount of Rs.38.5 million remains which has been reected in the books of accounts of AI as “Liability” under “Vayudoot Settlement Account” However, necessary decision regarding the adjustment of this outstanding amount can be taken only when certain Contingent Liabilities relating to Vayudoot Ltd which continue to be disclosed in the Accounts of the AI are settled. This is mainly because these may lead to future liabilities for AI as they mainly pertain to Legal Cases pending against Vayudoot. AIL has already written to the Ministry of Civil Aviation Govt of India with regard to the unspent balance of Rs 38.5 million out of the amounts sanctioned and released towards liquidating the dues of creditors/parties of erstwhile Vayudoot Ltd.

37. Physical Verification & Reconciliation

a) Fixed Assets:

i) Physical Verication and Reconciliation of major assets viz. Airframes, Aero-engines, APUs and Simulators was carried out at the year end and reconciliation of the same has also been

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completed. Further, in the case of land and building (including Investment Properties) reconciliation of number of properties as per xed assets register vis-à-vis records of holding departments was done. These assets together constitute around 92% of the Gross Block of Assets. No major discrepancies were found on the same.

ii) However, physical verication and reconciliation of assets other than above constituting around 8% of the Gross Block, including assets migrated in Fixed Assets Register at block level as one item for which line item identication is yet to be done are to be covered in the biennial physical verication exercise of 2016-18 which is in progress.

b) Inventory:

Physical Verication of aircraft/non-aircraft inventory (except inventory relating to phased out eet and lying with third parties) for the biennial period 2016-18 has been completed. Pending nalization/approval of the Physical Verication Report, by the competent authority, the net of excess/shortages found on reconciliation amounting to Rs 114.0 million has been provided for.

38. Effect of changes in Exchange rates (IndAS-21)

Transactions relating to Foreign Inventory Procurements and closing balances of certain foreign currency monetary items have not been translated at the date of transaction/in accordance with the provisions of IND AS due to complexity of transactions. The impact of translation of the same is not ascertained; however, the same is not likely to be material.

39. Confirmations/Reconciliations

a) The reconciliation and matching of certain unmatched receivables and payables including, suspense/ control ledgers and staff related accounts is under process. Impact, if any, of consequential adjustment arising out of reconciliation will be dealt with in the year of completion of reconciliation.

b) The company has sought the conrmation of balances for major receivables, payables and inventory lying with third parties. However, only some of the parties have responded. Wherever the balances conrmed by the parties are not in agreement with the books, reconciliation of difference is under process.

c) GST, Tax Deducted at source (TDS), Refunds in respect of Income Tax, are still pending to be reconciled with the Returns led/ statutory records maintained.

40. Internal Control

The Company is in the process of strengthening the internal audit process so as to ensure the coverage of all the areas as envisaged in the Minimum Audit Programme and ensure effective internal controls at stations, regional ofces, user departments and Central Accounts Ofce. To comply with the same, Independent Chartered Accountants rms have been appointed by the company. System for uniform and timely accounting entries of transactions in SAP as well as other software, including interface with each other, is under process of being strengthened.

41. Inventories

a) The policy for valuation of inventory has been changed from weighted average to lower of weighted average cost or NRV.As a result of such change, the value of closing stock is reduced by Rs 125.0

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st stmillion. The impact of such change in the value of closing stock as on 31 March 2017 and 1 April 2016 is not ascertainable due to practical difculties. However, the same is not likely to be material.

b) The Work Order Suspense account (except aircraft engines) includes items other than repairables of Rs 1606.4 million out of which Rs 1277.6 million provision has been made for the items upto Sep' 17 and heavy checks/transit checks/express checks upto Feb'18.

c) Pending reconciliation/rectication, provision of Rs. 317.6 million has been made towards the inventory balances lying under various intermediary/suspense heads under RAMCO system for which consumption/issue/scrappage has not been updated until 31.03.2018. Amount lying in such account as at 31.03.2018 is Rs. 519.5 million.

42. Status of Reconciliation with Airport Operators

(i) The reconciliation with various Airport Operators such as AAI, MIAL, DIAL, CIAL and GHAIL has stbeen carried out during the year and the status of the same as on 31 March 2018 is given

hereunder:(Rupees in Million)

No Name of Airport Balance Balance Difference Operator Payable Receivable as on 31.3.18 as per Air as per India Ltd Airport as on 31.3.18 Operators as on 31.3.18

1 Airport Authority of India (AAI) 12266.1 17841.1 (5575.0) 2 Mumbai International Airport Ltd (MIAL) 1306.8 2445.1 (1138.3)

3 Delhi International Airport Ltd (DIAL) 2418.1 2588.8 (170.7)

4 Cochin International Airport Ltd (CIAL) 209.6 216.3 (6.7)

5 Greater Hyderabad International Airport Ltd (GHIAL) 280.7 1281.2 (1000.5)

Note: The balances as per Airport Operators includes interest on delayed payments in respect of MIAL Rs 1721.6 million) and GHIAL (Rs 951.1 million) for which Contingent Liability has been disclosed. In respect of the others namely AAI, DIAL and CIAL, their balances do not include the interest on delayed payments but for w� hich also Contingent Liability has been disclosed in the accounts.

(ii) The major reasons for the difference are due to payments/credits given by AI up to 31.3.2018 for which accounting effect by the Airport Operators is yet to be given. Further, some other reasons for the difference are disputes in rates applied for landing & parking charges, ground handling royalty, space rentals, etc. which are not as per terms & condition of agreements. Moreover, interest claims on delayed payments and other disputed items have been separately disclosed as Contingent Liability as stated in Note No 28.

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43. Segment Reporting:

a) The Company is engaged in airline related business which is the only reportable segment. The details of geographical area wise revenue earned (derived by allocating revenue to the area in which the sales were made) are given hereunder:

(Rupees in Millions)

� � Particulars 2017-18 2016-17

a) USA/Canada 24578.7 20,801.2

b) UK/Europe 18986.9 15,916.4

c) Asia (excluding India), Africa and Australia 24047.1 26,172.7

d) India 162424 155,380.5

Total 230036.7 218,270.8

b) Major revenue-earning asset of the Company is the aircraft eet, which is exibly deployed across its worldwide route network. Other non-current assets (other than nancial instruments) located outside India are not material hence not disclosed.

44. Related Party Transactions:

Disclosure of the names and designations of the Related Parties as required under IND AS-24are as under:

A. Key Management Personnel & Relatives:

Transactions with Key Managerial Personnel

i) There are no transactions with key managerial personnel other than Remuneration and Perquisites to Chairman & Managing Director and Functional Directors.

ii) Key Management Personnel &Relatives: (During FY 2017-18 and till date)

Name Designation

(a) Whole-Time Directors

Shri Pradeep Singh Kharola Chairman & Managing Director (Appointed as CMD effective 12.12. 2017)

Shri Rajiv Bansal Chairman & Managing Director (Appointed as CMD effective 24.08.2017 and Ceased to be CMD on 12.12.2017)

Shri Ashwani Lohani Chairman & Managing Director (Appointed as st CMD effective 31 August 2015 and ceased to

be CMD w.e.f. 23.08. 2017)

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Name Designation

Shri Pankaj Srivastava Director-Commercial (Upon superannuation, ceased to be on Board w.e.f. 1.05 2018)

Shri Vinod Hejmadi Director- Finance

Shri Arvind Kathpalia Director Operations (Appointed on the Board w.e.f 27.06.2017)

(b) Government Nominee Directors

Ms.Gargi Kaul Additional Secretary & Financial Advisor, Ministry of Civil Aviation.

Shri Satyendra Kumar Mishra Joint Secretary, Ministry of Civil Aviation.

(c) Independent Directors

(Dr) Shri Ravinder Kumar Tyagi Appointed on the Board w.e.f 31.05.2017

Shri Syed Zafar Islam Appointed on the Board w.e.f 31.05.2017

Shri Y.C. Deveshwar Appointed on the Board w.e.f 08.08.2018

Shri Kumar Mangalam Birla Appointed on the Board w.e.f 08.08.2018

iii) Key Managerial Remuneration

(a) Salary and Allowances(Rupees in Millions)

Sl. No. Particulars 2017-18 2016-17

(a) Chairman and Managing Director Salaries and Allowances (Including value of 2.3 2.9 perquisites 2017-18: Rs 0.02 million (PY:Rs. 0.03 million and As on 1.4.16 : Rs 0.02 million)

(b) Functional Directors

i) Salaries and Allowances (Including value of 16.2 7.9 perquisites 2017-18: Rs 0.08 million (PY:Rs. 0.08 million and As on 1.4.16 : Rs 0.14 million)

ii) Contribution to Provident Fund 0.6 0.6

(c) Indepdenent Directors

Sitting Fees Paid to one Independent Director 0.16 0.04

Note: Transactions such as providing airline related services in the normal course of business are not included above.

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(b) Employee Benets Payable and Paid(Rs in Million)

No Particulars 2017-18 2016-17

i) Gratuity Provision 5.1 1.7

ii) Leave Encashment Provision 6.0 4.5

iii) Salary Outstanding at year end 1.3 1.2

B. Subsidiary Companies

In term of Ind AS 24, following are the disclosure requirements related to transactions with certain Government Related entities i.e. signicantly controlled and inuenced entities by Government of India (not included in the list above):

(Rs in Millions)

No Name of Entities and Nature of Transactions 2017-18 2016-17

1 Air India Express Ltd (AIXL)

a) Expenditure - -

b) Revenue

i) Revenue Sharing with Air India Ltd 4000.0 4500.0

ii) Interest Cost Reimbursment by Subsidiaries 752.1 791.4

iii) Others 230.6 -

c) Advances 9953.2 6467.8

2 Airline Allied Services Ltd (AASL)

a) Expenditure

i) Staff Cost Pay and Allowances 50.0 -

ii) Staff Cost Travelling Expenses 7.2 -

b) Revenue

i) Interest Cost Reimbursment by Subsidiary 1340.7 1364.2

ii) Handling & Servicing 65.1 -

iii) Others 54.3 -

c) Advances 15426.2 13879.4

3 Hotel Corporation of India Ltd (HCI)

a) Expenditure

i) Pax Amenities 340.2 366.4

ii) Others 106.3 42.0

b) Revenue

i) Interest Cost Reimbursment by Subsidiary 204.6 121.4

c) Advances 2280.0 1724.5

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4 Air India Air Transport Services Ltd (AIATSL)

a) Expenditure

i) Handling Charges 2541.5 2749.4

ii) Interest Paid to Subsidiary 46.0 350.6

b) Revenue

i) Revenue Sharing 750.0 1000.0

c) Advances 129.2 1158.0

5 Air India Engineering Services Ltd (AIESL)

a) Expenditure

i) Outside Repairs Aircraft 5681.9 5258.3

ii) Others 336.8 -

b) Revenue

Interest Cost Reimbursement by Subsidiary 924.3 -

c) Advances 14369.2 5811.0

Refer Note No 30 (ii) for Other Commitments.

C. Transactions with Joint Venture M/s Singapore Airport Terminal Services (AI-SATS), Singapore

(Rs in Millions)


1 AI-SATS

a) Expenditure

i) Handling Charges 2564.1 2133.8

ii) Others 36.0

b) Revenue

i) Loan of Equipment - Lease Charges 186.1 140.8

ii) Others 655.1 712.4

iii) Dividend 20.2

c) Payables 1005.7 454.4

The company has entered into Joint Venture (JV) agreement with SATS, Singapore in the equity ratio of 50:50 to provide ground handling services to airlines at certain airports this was in pursuance of GOI notication on the ground handling policy.

As per the books of AI, the net balance payable to AI-SATS as on 31/03/2018 is Rs 1005.7 million (PY:Rs.454.4 Million) and as per the books of AI-SATS the net balance receivable from AI is Rs 1005.7 million (PY: Rs 1575.0 million).

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D. Transactions with Provident Fund Trusts


PF Contribution Outstanding PF Contribution Outstanding during the Year as on 31.3.18 during the as on 31.3.17 Year

PF Trusts Dues 666.7 424.8 640.3 496.5

E. Major Transactions with Govt Related Entities

The details of the major transactions of revenue and expenditure of the company with Govt Related Entities are given hereunder:

(Rs in Millions)

No Name of Entity 2017-18 2016-17

Expenditure

i) Airport Authority of India 7974.4 6940.0

ii) Oil Companies

Indian Oil Co Ltd 31599.5 23734.1

Hindustan Petroleum Co Ltd 10144.5 10503.8

Bharat Petroleum Co Ltd 6481.8 7246.4

Revenue

i) SESF Flights Revenue

Govt of India 7554.3 6591.7

ii) Charter Revenue - Others

Govt of India 1378.4 2479.8

Note: The above transactions with the Govt/Govt Related entities cover transactions that are signicant individually and collectively. The company also entered into other transactions with various other Govt related entities, however, these transactions are insignicant either individually or collectively and hence not disclosed.

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45. In compliance with Ind AS – 27 'Separate Financial Statements', the required information is as under:

Particulars Principal Percentage (%) of Ownership Interest Place of Business As at 31 As at 31 As at 1 March 2018 March 2017 April 2016

(A) Subsidiaries

Air India Express Ltd (AIEL) Mumbai 100% 100% 100%

Airline Allied Services Ltd (AASL) New Delhi 100% 100% 100%

Air India Air Transport Services Ltd New Delhi 100% 100% 100% (AIATSL)

Air India Engineering Services Ltd New Delhi 100% 100% 100% (AIESL)

Hotel Corporation of India Ltd (HCI) Mumbai 80.38% 80.38% 64.86%

(B) Joint Venture

AI-SATS Airport Services Pvt Ltd Hyderabad 50% 50% 50%

46. Leases

i) Finance Lease

a) Aircraft Fleet and Equipment acquired under nance leases are treated as if they had been purchased outright. As required under Ind AS - 17, the cost of these assets taken on lease is Rs

st182,888.8 million (2016-17: Rs.182,738.0 million and as on 1 April 2016 is Rs.183,687.3 million). The future lease obligation in respect of the aircraft on nance lease is Rs 61,013.9

stmillion as at March 31, 2018(2016-17: Rs. 77,020.3 million and as on 1 April 2016 Rs 96,370.3 million). The Finance leases are guaranteed by the Govt. of India.

b) Liability on account of future minimum lease rentals is as under:(Rupees in Million)

Particulars As at As at As at 31.3.2018 31.3.2017 01.04.2016

a) Outstanding balance of Minimum Lease Payments including interest thereon

i) Not later than one year and 19891.4 18004.0 17997.9 ii) Later than one year and not later than ve years 41122.5 58551.9 73014.8 iii) Later than ve years 464.4 5357.6 Total 61013.9 77020.3 96370.3

b) Present Value of (a) above i) Not later than one year 18569.3 16920.6 16767.7 ii) Later than one year and not later than ve years 39950.5 57072.8 70739.8 iii) Later than ve years 463.1 5329.6

Total 58519.8 74456.5 92837.1

c) Finance Charges 2494.1 2563.8 3533.2

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ii) Operating Lease:

a) The Company has taken 45 Nos of Aircraft namely 24 of Airbus Family and 21 of Boeing st st stFamily, as at the end of 31 March 2018 (as on 31 March 2017: 31 aircraft and as on 1 April

2016: 20 aircraft) on non-cancelable operating lease. Liability on account of future minimum lease rentals in respect of leases acquired is as under:

(Rs in Millions)

No Particulars As at 31 As at 31 As at 1 March, 2018 March, 2017 April, 2016

i) Not later than one year 25521.0 20396.2 11560.9

ii) Later than one year and not later than ve years 97346.9 79684.3 46017.9

iii) Later than ve years 89179.5 78258.7 48692.5

Total 212047.4 178339.2 106271.3

b) In the case of premature termination of the Lease Agreement by company i.e. lessee is required to pay compensation to the lessors of the Aircraft as per the terms of the agreement. However, such compensation may differ from Lessor to Lessor.

c) The company has taken various residential/commercial premises under cancellable operating lease/rental basis the amount of which is unascertainable.

d) The Company has also taken Vehicles and Ofce Equipment on operating lease with option to purchase/renew but title may or may not eventually be transferred. These assets are scattered at various stations and cumulatively not signicant. Complete details of future obligation in this respect could not be compiled; amount thereof is not material.

47. Re-Delivery Charges

Provision for re-delivery charges is made to meet the contractual maintenance and return conditions on aircraft held under operating leases. Such provisions are made based on management estimate of number of hours or cycles each engine will have own at the return date, the cost of performing the required restoration work at that future date and discount rates commensurate with the expected obligation maturity schedules. Judgment is exercised by management given the long-term nature of assumptions that go into the determination of the provision. The assumptions made in relation to the current year are consistent with those in the previous year. Expected timing of resulting outow of economic benet is FY 2020 to 2030.

The movement in provision made is as given below:

Particulars FY 2017-18 FY 2016-17

Opening Balance 2,756.3 1,829.9

Add: Additional Provisions during the year 1,996.6 754.4

Add: Interest accretion on Provisions 420.7 250.8

Add/(less) Foreign Exchange Impact 36.7 (78.8)

Closing balance 5,210.3 2,756.3

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48. Subsidiary Companies

Four Subsidiary Companies of the Air India Ltd (excluding AIATSL) namely AASL, AIXL, AIESL and HCI stare having accumulated losses and the net worth of these companies has eroded as on 31 March 2018.

The company wise position of these subsidiaries is given hereunder:

a) Air India Express Ltd (AIXL) – Primary mandate of Air India Express is to operate low-cost, direct, international services to Middle East / South East Asian destinations to serve expat population / migrant workers at competitive fares. The company has been posting Net Prots in the last few years and the net prot (After Tax & Comprehensive Income) for FY 17-18 and FY 16-17 is Rs. 2620.5 million and Rs. 2354.2 million respectively. The net worth was eroded because of the past accumulated losses and the company is continuously showing improvement in operational and nancial performance and it is expected that due to its improved performance its net worth will become positive in the near future.

b) Air India Engineering Services Ltd (AIESL) - AIESL is the largest MRO set up in India that can serve as an one-stop-shop for all aircraft engineering requirements. At present, in India, major checks of every commercial wide body aircraft of Indian Operators is done by AIESL. The company has got hangar facilities available in all major airports in Mumbai, Delhi, Chennai, Hyderabad, Kolkata, Trivandrum and Nagpur. AIESL commenced its operations from January 2015 after receiving its DGCA Licence.MRO business is a highly capital intensive industry and it generally has a gestation period of 4-5 years for consolidation of operations.

However, AIESL has taken various initiatives to improve its overall revenues such as signing of activity based SLA with Air India Ltd, starting MRO facility in Sharjah and plans to expand the same to Dubai, developing dedicated marketing teams to capture MRO business, offering training services, handling VVIP ights to generate additional revenue.

Although, AIESL is in losses in the current year it is showing improvement in its performance on a year to year basis. With the above measures and the Make in India thrust of the Govt. of India which will ensure that maintenance of aircraft is within the country, the rapid growth of Aviation in the country and large number of aircraft orders by Indian carriers, AIESL is best poised for taking advantage of the growth in maintenance activities and MRO business within India. In view of this AIESL is likely to earn enhanced revenues and be protable in the near future.

c) Airline Allied Services Limited (AASL) – AASL has emerged as a major player in the Government of India's premier scheme UDAN, which connects to various Tier II and Tier III cities with the development of unserved / underserved airports. The growth in Tier II and Tier III cities is still largely untapped and Alliance Air is likely to emerge as a largest player with its ATR 72-600 eet suitable for serving these smaller airports. Alliance Air, with the induction of 10 new ATR-72-600 aircraft will have a eet of 16 aircraft in 2017-18 and 20 aircraft in 2018-19.

Alliance Air is presently operating to 51 destinations with 110 departures per day and 602 ights per week. It is projected to carry approximately 1.6 million passengers in Financial Year 2018-19, which is a 22% growth year on year over Financial Year 2017-18. The projected capacity increase for Financial Year 2018-19 is 30 % over Financial Year 2017-18. The aircraft utilization has increased close to 75% in rst half of 2018-19 as compared to 2017-18.

The airline is also planning to participate heavily in the coming UDAN 3rd round, so that majority of the routes are able to meet total cost of operation thereby enabling the airline to turnaround and declare operating prot.

The airline is consciously increasing the yield which is about 13% higher than the previous year. With the increase of additional two aircraft by December' 2018,more routes are being deployed

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under UDAN. The airline also has the Board approval to further lease 15 aircraft in the near future and expand under UDAN, which will add substantially to the bottom line.

With the various measures taken towards improving company's operational and nancial activities, it is expected that the nancial position of the company would improve in the near future.

d) Hotel Corporation of India Ltd (HCI) – HCI is primarily engaged in the business of owning operating & managing Hotels and Flight Catering services. The company has been facing severe liquidity crunch due to various factors like operational losses and its nancial and operating performance has been affected in recent years due to a number of external and internal factors. However, the Company has prepared its accounts on a "Going Concern" basis in view of the following:

stl Equity infusion of Rs 270.0 million upto 31 March 2018 by Government of India.

l The renovation of 80 guest rooms and other allied works at Centaur Delhi was completed in the quarter ended June 2017 which augmented the revenue during the year.

l The Company has appointed a consultant for upgradation and refurbishment of 75 guest rooms and allied works at Centaur Srinagar

l The holding company Air India Limited converted Rs 700.0 million of Advance to the Company into Share Capital.

l The Company had reduced the retirement age for its employees from 60 to 58.

In view of measures taken by HCI to improve the operational/nancial performance of HCI, the company is hopeful that HCI will be able to sustain its requirements from its own revenues in the near future. As regards its investment in HCI, Air India is condent that it would retrieve its investment in the property as well as the loans given to HCI in the event of the closure/sale of HCI as HCI will receive compensation for surrender of land/properties and sale of assets. Accordingly, no provision has been considered for the investment made by the company in HCI.

In view of the above, there is no decline in the carrying value of investments in the above four Subsidiaries.

st e) The reconciliation/conrmation with the Subsidiary Cos and JV as on 31 March 2018 is given hereunder:

(Rs in Millions)

No Name of Subsidiary/JV Balance Balance Difference (Payable)/ (Payable)/ Receivable as Receivable as per Air India per Subsidiary Ltd as on Co. 31.3.2018 31.3.2018

1 Air India Express Ltd (AIXL)(Formerly known 9953.2 (9953.2) 0.0 as Air India Charters Ltd (AICL)

2 Airline Allied Services Ltd (AASL) 15426.2 (15426.2) 0.0

3 Hotel Corporation of India Ltd (HCI) 2280.0 (2280.0) 0.0

4 Air India Air Transport Services Ltd (AIATSL) 129.2 (129.2) 0.0

5 Air India Engineering Services Ltd (AIESL) 14369.2 (14369.2) 0.0

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f) In view of continuity of the operations of these Subsidiary Companies, the total advances

outstanding as stated above are, in the opinion of the management, considered good and realizable

in the normal course of business.

49. Payments to and Provisions for Employees:

a) Liability for wage arrears includes Rs 2075.3 million (Net), (Previous Year: Rs. 2106.4 million Net) starrived on ad-hoc basis towards wage settlement up to period 31 December 2006 pending

nalization of actual liability.

b) In view of Department of Public Enterprises (DPE) guidelines applicable to PSUs no wage revision

can be granted to the employees of loss-making PSUs. The Company has been making losses since

1st January 2007 hence no provision has been made towards wage revision/settlement.

50. Employee Benefits

(A) General description of Defined Benefit Plan

a) Gratuity: Gratuity is payable to all eligible employees of the Company on superannuation,

death, or permanent disablement, in terms of the provisions of the Payment of Gratuity Act.

b) Post-Retirement Medical Benefits: The Company has a Post-Retirement Medical Benet

Scheme under which medical benets are provided to retired employees and their spouse.

(B) Defined Contribution Plan

Employees Provident Fund: The Company has Employees Provident Fund Trusts under the

Provident Fund Act 1925, which governs the Provident Fund Plans for eligible employees. The

Company as well as the employees contributes 10% of the PF Pay to the Fund out of which

Provident Fund is paid to the employees.

(C) Other Long Term Employee Benefits

i) Privilege Leave Encashment: Privilege Leave Encashment is payable to all eligible

employees at the time of retirement upto a maximum of 300 days.

ii) Sick Leave Encashment: Sick Leave encashment is payable to all eligible employees at the

time of retirement upto a maximum of 120 days subject to the condition that the employee

should have at least 60 days of Sick Leave to his credit. However, the company had decided to

freeze the encashment of sick leave standing to the credit of all existing employees as on

01.07.2012. Accordingly, provision for sick leave has also been computed at these frozen sick

leave numbers.

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(D) Defined Benefit Plans – Gratuity & Post-Retirement Medical Benefits (Unfunded)

� � Disclosure as per Ind AS-19(Rs in Millions)

� Particulars Gratuity Medical Benefits

31.03.2018 31.03.2017 31.03.2018 31.03.2017

(a) Actuarial Assumption

Discount Rate 7.80% 6.82% 7.76% 8.06%

Salary Escalation Rate 5.50% 5.50% NA NA

� � Medical Cost Ination Rate NA NA 4% 4%

� � Attrition Rate/Rate of Employee Turnover 2% 2% 2% 2%

� (b) Table for change in Benefit Obligation

� � Liability at the beginning of the year 6206.4 6190.6 11351.3 10113.9

Less: Liability transferred to AIESL/AITSL 0 0 0 0

Net Liability at the beginning of the year 6206.4 6190.6 11351.3 10113.9

Interest Cost 423.3 468.0 845.7 815.2

Current service Cost 119.2 110.6 110.7 93.9

Past Service Cost (Vested Benet) 1158.0 - - -

Benet Paid -754.6 -797.4 -1126.1 -1134.0

Actuarial (Gain)/loss on obligation-

Due to change in Demographic Assumption 0 0 0 0


Due to change in Financial Assumption -343.5 227.4 -394.3 737.7


Due to Experience 164.1 7.2 724.6 724.6

Liability at the end of the year 6972.9 6206.4 11511.9 11351.3

(c) Table for Fair Value of Plan Assets

� � Value of Plan Assets at beginning of the year - - - -

Expected Return on plan Assets - - - -

Contribution - - - -

Benet Paid -754.6 -797.4 0 0

Actuarial (Gain)/loss on plan Assets -343.5 234.6 - -

� (d) Amount recognised in Balance sheet

Liability at the end of the year -6972.9 -6206.4 -11511.9 -11351.3

Fair Value of Plan Assets at the end of the year - - - -

Amount recognised in Balance sheet -6972.9 -6206.4 -11511.9 -11351.3

(e) Expense recognised in the P&L Account

� � Current service cost 119.2 110.6 110.7 93.9

Interest Cost 423.3 468.0 845.7 815.2

Past Service Cost 1158.0 - - -

Gains/Loss on Curtailment and settlements

� � Net Effect of changes in Foreign Exchange Rate -

Expense recognised in the P&L Account 1700.5 578.6 956.4 909.1

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� Particulars Gratuity Medical Benefits

31.03.2018 31.03.2017 31.03.2018 31.03.2017

(f) Expense recognised in the Other

Comprehensive Income (OCI)

� � Net Actuarial (gain)/loss on obligation for

the period -179.4 234.6 330.3 1462.3

Return on plan Asset, Excluding interest Income - - - -

Change in Asset Ceiling - - - -

Net (Income)/Expense for the period

recognised in OCI. -179.4 234.6 330.3 1462.3

(g) Balance sheet Reconciliation

Opening Net Liability 6206.4 6190.6 11351.3 10113.9

Expense Recognised in statement

of prot and loss 1700.5 578.6 956.4 909.1

Expense Recognised in OCI -179.4 234.6 330.3 1462.3

Benet Paid -754.6 -797.4 -1126.1 -1134.0

Net Liability/(Assets) Recognised in

Balance sheet 6972.9 6206.4 11511.9 11351.3

(h) Sensitivity Analysis

Projected Benefit Obligation (PBO) on

Current Assumptions 6972.9 6206.4 11511.9 11351.3

� � Delta Effect of + 1% Change in Rate of

Discounting -317.1 -303.2 -1119.5 -1164.3

� � Delta Effect of - 1% Change in Rate of

Discounting 350.9 337.4 1367.9 1433.4


Salary Increase/Medical Cost Ination 294.3 134.0 1407.9 1470.7


Salary Increase/Medical Cost Ination -283.2 -145.4 -1166.2 -1209.6


Employee Turnover 58.0 72.5 - NA


Employee Turnover -63.2 -79.2 - NA

� � Maturity Analysis of the Benefit Paymentsst� � 1 Following Year 1014.6 866.6 520.5 501.3nd� � 2 Following Year 584.5 520.5 576.3 537.6rd� � 3 Following Year 996.5 743.1 640.2 598.8th� � 4 Following Year 959.6 781.6 709.0 664.6th� � 5 Following Year 928.5 761.6 782.3 734.8

� � Sum of Years 6 to 10 3463.7 3067.3 3894.1 3673.5

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51. DEFERRED TAX ASSETS / (LIABILITY)

The Company has recognized Deferred Tax Assets in earlier years amounting to Rs 28425.2 million. In the subsequent years, the company has continued to carry this balance of Net Deferred Tax Assets and no further amounts have been recognized as a matter of prudence. The details of the same are as given below:

(a) Deferred Tax Assets/Liabilities

(Rs in Million)

S.No Particulars As at 31st As at 31st As at 1st March 2018 March 2017 April 2016

(A) Deferred Tax Liability

(i) Related to Fixed Assets 68218.9 67727.9 50225.1

(ii) Related to Foreign Currency Monetary Items (FCMI) 660.4 725.9 1161.3

Sub-Total (A) 68879.3 68453.8 51386.4

(B) Deferred Tax Assets

(i) Unabsorbed Depreciation 97304.5 96879.0 79811.6

Sub-Total (B) 97304.5 96879.0 79811.6

Net Deferred Tax Asset/(Liability) 28425.2 28425.2 28425.2

(b) Details of Unused Tax Losses and other Deductible Temporary Differences on which Deferred Tax Assets have not been recognized (To the extent of DTA thereon:

(Rs in Millions)

st st st Particulars As at 31 As at 31 As at 1 March, 2018 March, 2017 April, 2016

Unabsorbed Depreciation 6,238.5 1,380.3 18,011.2

Brought Forward Business Losses 105,233.8 117,825.8 124,043.3

Other Temporary Differences 15,511.6 14,586.4 12,829.7

TOTAL 126,983.9 133,792.5 154,884.2

The unused tax losses and unabsorbed depreciation considered above are based on the tax records and returns of the company and does not consider the potential effect of matters under dispute/litigation with the tax authorities which are currently sub-judice at various levels.

In view of the facts disclosed in Note No 55 regarding Going Concern the company is hopeful of showing improved performance in the future and accordingly, the deferred tax assets available will be realized against future taxable prots. Further, the Deferred Tax Assets have been created

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against carry forward Depreciation only which are available to the Company indenitely as per the provisions of the Income Tax Act.

(c) Reconciliation of Effective Tax Rate

Reconciliation of tax expense and the accounting prot / (loss) multiplied by India's domestic tax rate for the year ended 31st March 2017 and 31 March 2018:

(Rs in Millions)

Particulars For the year ended For the year ended 31st March 2018 31st March 2017 Rate (%) Amount Rate (%) Amount

Prot/(Loss) Before Tax 30.90% (53481.7) 30.90% (64529.0)

Effective Tax Rate 0% NIL 0% NIL

52. Earnings Per Share (Rupees in Millions)

Particulars As at 31.03.2018 As at 31.3.2017

Prot/(Loss) After Tax & Extra-Ordinary Items (53,377.4) (62,815.4)

Weighted Average No. of Equity Shares 27,108,597,452 21,640,027,397 EPS After Tax (Rs per Share) (1.97) (2.90)

53. The Micro and Small Enterprises Development Act

The SAP system has a eld, minority indicator in Vendor Master, which is updated to identify the vendor as SSI. The system is being enhanced to capture more details of SSI Vendors, such as certicate no., issuing agency, validity, etc. However, payments to such undertakings covered under the Micro, Small and Medium Enterprises Development Act (to the extent identied) have been made within the prescribed time limit/date agreed upon with the supplier and hence, no interest is payable on delayed payments. In other cases, necessary compliance/disclosure will be ensured in due course.

54. Remuneration to Auditors

The details of the audit fees and expenses of the Auditors: -(Rupees in Million)


Audit Fees -For the Year 10.5 10.5

Audit Fees -For Earlier Year – –

Out of Pocket Expenses (*) 1.6 1.6

Total 12.1 12.1

* Accounted on Payment Basis

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55. Going Concern

The company has received continuous support from the Government of India (GoI) though the implementation of Turnaround Plan/ Financial Restructuring Plan (TAP/FRP) approved in 2012 which has helped the company to improve its operating and nancial parameters. As per the TAP/FRP the GoI has during FY 2017-18 infused Equity to the tune of Rs 18000.0 million. The total Equity Infusion under TAP/FRP as on 31st March 2018 aggregated to Rs 265452.1 million. During the FY 2018-19 a further amount of Rs.16300.0 million has been infused upto end of August 2018.

th As stated in Note No 31 on Disinvestment of Air India Ltd, the AISAM in its meeting on 18 June 2018

decided to:

l Improve performance of Air Indial Monetize Assetsl Consider disinvestment after global indicators like oil prices and forex rates stabilize.

A Strategic Plan was prepared by AI and submitted to the Govt. The objective of the Strategic revival plan was to establish a strong competitive and self sustaining airline which can be strategically divested or listed in the next few years. Focus was on increasing the operational efciencies whereby substantial increase in revenue or cost saving can be achieved.

The revival plan had the following components

l Organizational Reformsl Financial Packagel Disinvestment of Subsidiariesl Sale of non-core Assetsl Improving Internal Efcienciesl Tapping the human resource potential to the fullest

This Strategic Plan was discussed with the GoI and the following in-principle decisions were taken to give nancial support to AI in FY 2018-19 to implement the decision of AISAM of improving the nancial performance of Air India:

Financial Support to Air India and SPV

l A total debt amounting to Rs 294,640 million would be transferred from Air India Ltd to the SPV viz Air stIndia Assets Holding Co Ltd forthwith w.e.f. 1 October 2018.

l A Cash Support of Rs 39,750.0 million to Air India, inclusive of Rs 16,300.0 million already infused in AI in the current nancial year.

l Provide a Govt Guarantee of Rs 76000.0 million , inclusive of Rs 30000.0 million already provided to AI in FY 2018-19, to raise new debt for payment of stretched liabilities.

l An additional amount of Rs 13000.0 million to be provided to the SPV to meet the interest liability on the transferred debt.

l From FY 2019-20 the entire interest on the debt of Rs 294,640.0 million transferred to the SPV, would be serviced by the Govt.

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Deliverables by Air India

l Monetization of assets, Sale/disinvestment of AIATSL, sale of other immovable assets and other subsidiaries the proceeds of which will be utilised towards servicing of debts transferred to the SPV.

l Performance Improvement measures for operational efciencies such as improvement in Aircraft Utilisation, enhancement of cargo revenue, rationalisation of costs including fuel and distribution costs etc.

In view of the above nancial support from the Govt of India and various measures taken by the company to improve the operational efciencies, various revenue enhancing measures, cost control measures undertaken etc. the company expects a substantial improvement in its performance, operational and nancial, in the near future and hence, the Accounts have been prepared on the 'Going Concern' basis.

56. Capital Management:

The objective of the company is to maximize the shareholders' value by maintaining an optimum capital structure. Management monitors the return on capital as well as the debt equity ratio and makes necessary adjustments in the capital structure for the development of the business.

During the nancial year ended 31 March 2018, no signicant changes were made in the objectives, policies or processes relating to the management of the Company's capital structure.

Debt-Equity Ratio:

st st st Particulars As at 31 March As at 31 March As at 1 April 2018 2017 2016

Long term Borrowings 302,275.3 335,498.4 358,063.8

Short term borrowings 219,554.9 129,513.1 151,106.2

Current maturity of Long-term Borrowings 12,186.3 6,727.3 8,210.3

Current maturities of nance lease obligations 19,068.7 16,533.7 16,387.4

Total Debt (A) 553,085.2 488,272.5 533,767.7

Equity Share Capital 286,902.1 267,530.0 214,960.0

Other Equity (535,839.2) (480,881.1) (390,359.8)

Total Equity (B) (248,937.1) (213,351.1) (175,399.8)

Debt Equity Ratio (A/B) (2.2) (2.3) (3.0)

Note: The company is highly leveraged due to negative Net Worth and the nature of the business due to which the Debt Equity Ratio is negative.

57. Fair Value Measurement and Financial Instruments

(a) Financial instruments – by category and fair value hierarchy

The following table shows the carrying amounts and fair value of nancial assets and nancial liabilities, including their levels in the fair value hierarchy.

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(a) As on 1 April, 2016(Rs in Millions)

Particulars Carrying Value Fair value measurement using

FVTPL FVTOCI Amortized Total Level 1 Level 2 Level 3 Cost Financial Assets Non-Current a) Investments 17,431.8 17,431.8 435.7 537.1 16,459.0 b) Trade Receivables* 47.4 47.4 - - - c) Loans 2,536.0 2,536.0 - - 2,536.0 d) Others Financial Assets 19,353.0 19,353.0 - - - Current a) Trade Receivables* 16,476.6 16,476.6 - - - b) Cash and Cash Equivalents* 4,060.4 4,060.4 - - - c) Bank Balance other than (b) above* 3,994.4 3,994.4 - - - d) Loans* 220.5 220.5 - - - e) Others Financial Assets 3,352.5 3,352.5 - - - Total 17,431.8 50,040.8 67,472.6 Financial liabilities Non-Current i) Borrowings# 358,063.8 358,063.8 - - 358,063.8 ii) Others* 237.2 237.2 - - - Current i) Borrowings# 151,106.2 151,106.2 - - 151,106.2 ii) Trade Payables* 76,128.3 76,128.3 - - - iii) Others* 55,536.1 55,536.1 - - - Total 641,071.6 641,071.6

(b) As on 31 March, 2017(Rs in Millions)


FVTPL FVTOCI Amortized Total Level 1 Level 2 Level 3 Cost Financial Assets Non-Current a) Investments 17,415.1 17,415.1 378.9 577.3 16,458.9 b) Trade Receivables* 61.6 61.6 - - - c) Loans 2,765.8 2,765.8 - - 2,765.8 d) Others Financial Assets 25,846.2 25,846.2 - - - Current a) Trade Receivables* 16,501.9 16,501.9 - - - b) Cash and Cash Equivalents* 2,239.8 2,239.8 - - - c) Bank Balance other than (b) above* 5,111.6 5,111.6 - - - d) Loans* 147.5 147.5 - - - e) Others Financial Assets 3,730.2 3,730.2 - - - Total 17,415.1 56,404.6 73,819.7

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FVTPL FVTOCI Amortized Total Level 1 Level 2 Level 3 Cost

Financial liabilities Non-Current i) Borrowings# 335,498.4 335,498.4 - - 335,498.4 ii) Others* 170.3 170.3 - - - Current i) Borrowings# 129,513.1 129,513.1 - - 151,106.2 ii) Trade Payables* 89,527.1 89,527.1 - - - iii) Others* 68,865.2 68,865.2 - - - Total 623,574.1 623,574.1

(c) As on 31 March 2018(Rs in Millions)


FVTPL FVTOCI Amortized Total Level 1 Level 2 Level 3 Cost Financial Assets Non-Current a) Investments 17,461.6 17,461.6 418.2 584.5 16,458.9 b) Trade Receivables* 57.3 57.3 - - - c) Loans 3,056.0 3,056.0 - - 3,056.0 d) Others Financial Assets 39,189.8 39,189.8 - - - Current a) Trade Receivables* 17,767.2 17,767.2 - - - b) Cash and Cash Equivalents* 1,886.0 1,886.0 - - - c) Bank Balance other than (b) above* 5,542.8 5,542.8 - - - d) Loans* 121.9 121.9 - - - e) Others Financial Assets 4,872.3 4,872.3 - - - Total 17,461.6 72,493.3 89954.9 Financial liabilities Non-Current i) Borrowings# 302,275.3 302,275.3 - - 302,275.3 ii) Others* 166.7 166.7 - - - Current i) Borrowings# 219,554.9 219,554.9 - - 219,554.9 ii) Trade Payables* 82,157.0 82,157.0 - - - iii) Others* 80,457.6 80,457.6 - - - Total 684,611.5 684,611.5

Notes: (#) The companies' borrowings and loans to subsidiaries have been contracted at market rate of

interest, which resets at regular intervals. Accordingly, the carrying value of such borrowings (including interest accrued) approximates fair value.

(*) The carrying amount of trade receivables, trade payables, cash and cash equivalents, bank balance other than cash and cash equivalents and other nancial assets and liabilities approximates the fair values, due to their short-term nature.

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- The fair values for loan were calculated based on discounted cash ow using a current lending rate. They are classied as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable.

st - There have been no transfers between level 1, level 2 and level 3 for the year ended 31 March 2018

stand 31 March 2017.

(b) Valuation Technique used to determine Fair Value:

Specic valuation techniques used to value nancial instruments include:

l The use of NAV for unquoted Equity Shares.

l The Fair Value of remaining nancial instruments is determined using Discounted Cash Flow method.

58. Financial Risk Management Objective and Policies

The company has exposure to following risks arising from its business and nancial instruments:

a) Credit Risk

b) Liquidity Risk

c) Market Risk – (i) Foreign Currency and (ii) Interest Rate

The Company operates to 43 international destinations in multi-currency, dynamic and challenging environment. The Company's principal nancial liabilities comprise of loan and borrowings, trade and other payables. The Long term borrowing for the aircraft purchase is mainly dollar related. A part of the borrowings for the working capital are dollar denominated. Nearly 70% of the Company's expenses are related to the dollar. The main purpose of these nancial liabilities is to nance aircraft acquisition, receivable, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to credit risk, liquidity risk, market risk and Commodity risk. The Company's senior management oversees the management of these risks. The Company's senior management is supported by a treasury team. The Treasury Team provides assurance to the Company's senior management that the company's nancial risk activities are governed by appropriate policies and procedure and that nancial risks are identied, measured and managed in accordance with the Company's policies and risk objective. All hedging activities for fuel risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivative for speculative purpose may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which summarized below:

a) Credit Risk

Credit risk is the risk of nancial loss to the company if a customer or counterparty to a nancial instrument fails to meet its contractual obligation.

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and nancial institutions, foreign exchange transactions and other nancial instruments.

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The maximum exposure to the credit at the reporting date is primarily from trade receivables. Trade receivables are mostly from travel agents, Government Parties and Credit Card Companies which are typically unsecured as no coverage is held by the Company and are derived from revenue earned from customers. Trade Receivables includes receivables from IATA Agency Dues, General Sales Agents, Credit Card Companies which are realizable within a period of 30 working days. General Sales Agents dues are recovered by Bank Guarantees by Airline and Agency Dues are covered by BG/Insurance cover held by IATA. Similarly, for Cargo Agents, dues are covered by BG/Advance Payments and GSA Dues are covered by BG. Mail Dues are GoI Dues. The Company does monitor the economic environment in which it operates. The Company manages its credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of agents to which the Company brands credit terms in the normal course of the business.

The company sells majority of its passenger/cargo services against credit worthiness and nancial guarantees made by agents (customers) to IATA though individual guarantees are also taken in certain cases. The Company also extends credit to the Government on ights operated and which are realized over a period of time depending on budgetary provisions made by the Govt to the respective departments

On adoption of IND-AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivable. The provision matrix considers available internal credit risk factors such as the Company's historical experience for customers. Based on the business environment in which the company operates, management considers that the trade receivable (other than receivables from government departments) are in default (credit impaired) if the payments are more than 36 months past due.

The Companies exposure to credit risk for trade receivables is as follows: (Rs in Millions)

Particulars As at 31/03/2018 As at 31/03/2017 As at 01/04/2016 Gross Loss Gross Loss Gross Loss Carrying Allowance Carrying Allowance Carrying Allowance Amount Amount Amount

Debts not due 6,803.6 - 5,692.6 - 6,347.5 -

Debts over due 21,348.9 10,328.0 21,754.9 10,884.1 19,469.0 9,292.4

Movement in the allowance for impairment in respect of trade receivables:

Particulars For the year ended For the year endedst st 31 March 2018 31 March 2017

Balance at the beginning of the Year (10,884.1) (9,292.4)

Movement during the year 556.1 (1,591.7)

Balance at the end of the Year (10,328.0) (10,884.1)

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b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difculty in meeting the obligation associated with its Financial Liabilities that are settled by delivering cash or another Financial Assets.

The Company's approach to manage Liquidity is to have sufcient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has been experiencing liquidity problems due to delayed equity infusion by the Govt and the high debt burden.

The Company believes that its liquidity position, including total cash and cash equivalent and bank stbalances other than cash and cash equivalent of Rs. 7,428.8 million as at 31 March 2018 (31st

March 2017: Rs. 7,351.4 & 1st April 2016: Rs. 8,054.8) anticipated future internally generated funds from operations, and its fully available, revolving undrawn credit facility will enable it to meet its future known obligation in the ordinary course of business provided there is equity infusion and assistance from the Government. However, if liquidity needs were to arise, the company believes it has access to nancing arrangement, value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and liquidity requirement. The Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirement as necessary. However, the Company relies on Government support to conserve its liquidity position.

The Company's liquidity management process as monitored by management includes the following:-

a) Day to day funding, managed by monitoring future cash ows to ensure that requirement can be met.

b) Maintaining rolling forecast of the Company's liquidity position on the basis of expected cash ows.

c) Maintaining diversied credit lines.

Exposure to Liquidity Risk

The following are the remaining contractual maturities of nancial liabilities at the reporting data. The contractual cash ow amount are gross and undiscounted, and includes interest accrued.

As at 1st April, 2016 Carrying Contractual Cash Out Flows (Rs in Millions) Amount as per Trial Upto 1 1-2 2-3 3-4 4-5 More Total Balance year Years Years Years Years than 5 years Borrowings

a) Non Convertible Debentures (Note - 13) 136,000 7,000 129,000 136,000

b) Long Term Borrowings (Note - 13)

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As at 1st April, 2016 Carrying Contractual Cash Out Flows (Rs in Millions) Amount as per Trial Upto 1 1-2 2-3 3-4 4-5 More Total Balance year Years Years Years Years than 5 years

- From Banks (Secured) 123,756 2,507 5,065 5,065 11,401 11,401 88,317 123,756

- From Banks (Unsecured) 29,824 2,707 5,715 7,104 7,338 2,933 4,028 29,824

- From Other Parties 244 10 10 10 10 10 192 244

c) Short Term Borrowings (Note - 18)

- From Banks (Secured) 119,653 119,653 119,653

- From Banks (Unsecured) 31,453 31,453 31,453

- From Other Parties (Unsecured) - - -

d) Long Term Maturities of Finance Lease Obligation (Note - 13) 92,837 18,255 16,866 17,979 20,504 14,457 4,777 92,837

Trade Payables (Note - 14)

a) Trade Payables 76,128 76,128 - 76,128

Other Financial Liabilities (Note - 15)

a) Interest Accrued but not due on borrowings 6,773 6,773 - 6,773

b) Interest Accrued and due on borrowings 350 350 - 350

c) Other Liabilities 24,052 23,815 237 24,052

Totals 641,072 281,652 27,657 30,158 46,253 28,801 226,552 641,072

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As at 31st March 2017 Carrying Contractual Cash Out Flows (Rs in Millions) Amount as per Trial Upto 1 1-2 2-3 3-4 4-5 More Total Balance year Years Years Years Years than 5 years Borrowings




- From Banks (Unsecured) 26,720 4,981 7,104 7,338 2,540 4,758 26,720






d) Long Term Maturities of Finance Lease Obligation (Note - 13) 74,457 16,740 11,556 11,213 8,240 26,242 465 74,457


a) Trade Payables 89,527 89,527 - 89,527



b) Interest Accrued and due on borrowings 403 403 - 403


Totals 623,574 291,440 23,737 36,962 22,191 46,211 203,032 623,574

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As at 31st March 2018 Carrying Contractual Cash Out Flows (Rs in Millions) Amount as per Trial Upto 1 1-2 2-3 3-4 4-5 More Total Balance year Years Years Years Years than 5 years Borrowings




- From Banks (Unsecured) 21,808 7,104 7,338 2,607 4,759 21,808






d) Long Term Maturities of Finance Lease Obligation (Note - 13) 58,520 18,569 20,352 14,355 4,777 466 58,520


a) Trade Payables 82,157 82,157 - 82,157



b) Interest Accrued and due on borrowings 1,648 1,648 - 1,648


d) Book Overdraft 18 18 18 Totals 684,611 381,665 46,100 42,624 35,198 15,677 163,348 684,611

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c) Market risk Market risk is that the fair value and future cash ows of nancial instrument will uctuate because of

changes in market prices. Market risk comprises two type of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the return.

(i) Interest Rate Risk

� � � Interest rate risk is the risk that the future cash ows of a nancial instrument will uctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's borrowings with oating interest rates.

� The Company's interest rate risk arises majorly from the foreign currency term loan and nance lease carrying oating rate of interest which is linked to LIBOR. These obligations expose the company to cash ow interest rate risk. The exposure the company's borrowings to interest rate changes as reported to the management at the end of the reporting period are as follows:

(Rs in Millions)

Variable-rate instruments As at 31st As at 31 As at 1 April March 2018 March 2017 2016 Long Term Borrowings from Bank 30,734.3 36,323.5 39,586.0 (Secured & Unsecured, including current maturities)

Short term borrowings 79,127.7 60,019.5 92,241.5

Finance lease obligation 53,996.8 67,505.4 83,346.9 (including current maturities)

Total 163,858.8 163,848.4 215,174.4

Interest Rate Sensitivity Analysis

A reasonably possible change of 0.50 % in interest rates at the reporting date would have affected the prot or loss by the amounts shown below. This analysis assumes that all other variables, in particulars foreign currency exchange rates, remains constant.

Increase / (decrease) in the interest Statement of Profit and losses. on foreign currency term loans-from others and on finance lease Increase by 0.50 % Decrease by 0.50 % obligation.

- For the year ended 31 March 2018 819.29 (819.29)

- For the year ended 31 March 2017 819.24 (819.24)

(ii) Currency Risk

Currency risk is the risk that the future cash ows of a nancial instrument will uctuate because of changes in foreign exchange rates. The Company is exposed to multi currencies on

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its operations and hence is exposed to the effects of uctuation in the prevailing foreign currency rates on its nancial position and cash ows. Exposure arises primarily due to exchange rate uctuation between the functional currency and other currencies from the company's operating, investing and nancing activities. Nearly 70% of the Company's expenses are dollar denominated.

Exposure to Foreign Currency Risk

The summary of quantitative data about the Company's exposure to currency risk, as expressed in Indian Rupees, as at 31 March 2018, 31 March 2017 and 1 April 2016 are as below:

st a) As at 31 March 2018

(Rs. In Millions)

Particulars USD EUR GBP AED OMR SGD THB CHF QAR AUD OTHERS

Financial Assets

Trade Receivables 6,073.2 1,077.1 1,167.1 618.6 146.1 107.0 59.8 61.6 14.2 88.6 1,689.8

Cash and Cash equivalents 365.8 421.2 5.8 7.8 - 27.9 20.3 7.6 - 137.4 346.9

Bank Balances other than above 732.0 - 523.1 - - - - - - 52.1 33.1

Loans 5,272.7 59.1 3.5 13.1 - 5.8 1.1 0.1 0.4 0.2 47.4

Other Financial Assets 5,270.9 9.7 15.1 - - - 0.6 - - 6.7 25.3

Total Financial Assets 17,714.6 1,567.1 1,714.6 639.5 146.1 140.7 81.8 69.3 14.6 285.0 3,958.4

Financial Liabilities

Borrowings 168,440 - 161.6 - - - - - - - -

Other Financial Liabilities 3,342.8 58.6 17.3 22.3 2.2 4.2 0.8 8.0 1.0 9.9 61.3

Trade Payables 6,407.4 765.2 642.1 572.3 75.7 289.5 30.6 - - 190.4 1,062.0

Total Financial Liabilities 178,190.2 823.8 821.0 594.6 77.9 293.7 31.4 8.0 1.0 200.3 1,123.3

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st b) As at 31 March 2017(Rs. In Millions)


Financial Assets

Trade Receivables 3,572.0 2,515.4 1,045.5 757.5 252.3 68.9 66.8 99.8 16.1 146.3 1,155.3

Cash and Cash equivalents 419.0 543.5 67.1 10.5 - 25.8 21.9 2.7 - 95.1 278.2


Loans 5,259.9 50.0 2.9 13.1 - 5.8 0.9 0.1 0.4 - 40.0

Other Financial Assets 8524.4 8.0 28.0 - - - 0.6 - - 6.0 21.1



Borrowings 170,887.0 - 141.4 - - - - - - - -

Other Financial Liabilities 3,086.6 31.0 7.5 78.2 1.7 6.2 2.1 - 1.0 9.9 34.1

Trade Payables 933.7 675.2 429.8 641.7 18.4 195.2 36.0 2.0 - 103.5 543.9

Total Financial Liabilities 174,907.3 706.2 578.7 719.9 20.1 201.4 38.1 2.0 1.0 113.4 578.0

st c) As at 31 March 2016(Rs. In Millions)


Financial Assets

Trade Receivables 4,424.0 1,773.4 869.3 714.4 185.6 90.2 67.1 88.7 7.7 129.7 1,509.7

Cash and Cash equivalents 1,557.0 569.0 143.0 14.1 - 97.1 31.5 43.9 - 54.2 551.5


Loans 5,113.3 36.8 1.0 13.5 - 6.7 1.3 0.1 0.4 0.6 41.3

Other Financial Assets 10,612.1 10.0 66.6 - - - 0.6 - - 18.8 28.5


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Borrowings 224,521.3 - 143.2 - - - - - - - -

Other Financial Liabilities 3,109.7 33.3 6.8 20.2 2.7 2.1 0.6 - 0.2 9.5 10.2

Trade Payables 10,865.3 715.7 242.4 608.2 7.4 309.2 40.4 - - 130.3 568.5

Total Financial Liabilities 238,496.3 749.0 392.4 628.4 10.1 311.3 41.0 - 0.2 139.8 578.7

Foreign Currency Sensitivity Analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March 2018 and 31 March 2017 would have affected the measurement of nancial instruments denominated in foreign currency and affected Statement of Prot and Loss by the amounts shown below. This analysis is performed on foreign currency denominated monetary nancial assets and nancial liabilities outstanding as at the year end. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

(Rs in Millions)

0.5% Depreciation / Statement of Profit and Statement of Profit and Loss Appreciation in Indian Loss for the year ended for the year ended Rupees against 31 March 2018 31 March 2017 following foreign currencies: Gain/ (loss) on Gain/ (loss) on Gain/ (loss) on Gain/ (loss) on Appreciation Depreciation Appreciation Depreciation

USD 802.4 (802.4) 782.1 (782.1)

EUR (3.7) 3.7 (12.1) 12.1

GBP (4.5) 4.5 (4.5) 4.5

AED (0.2) 0.2 (0.3) 0.3

OMR (0.3) 0.3 (1.2) 1.2

SGD 0.8 (0.8) 0.5 (0.5)

THB (0.3) 0.2 (0.3) 0.3

CHF (0.3) 0.3 (0.5) 0.5

QAR (0.1) 0.1 (0.1) 0.1

AUD (0.4) 0.4 (0.9) 0.9

Other (5.1) 5.1 (4.7) 4.7

Note: USD: United States Dollar, GBP: Great British Pound, AED: Arab Emirates Dirhams, OMR: Omani Riyal, THB: Thai Baht, CHF: Swiss Franc, SGD: Singapore Dollar, EUR: Euro, AUD: Australian Dollar, QAR: Qatari Riyal.

59. Standards Issued but not Effective

a) Appendix B to Ind AS 21, Foreign Currency transactions and advance considerations: On March 28, 2018, The Ministry of Corporate Affairs notied the Companies (Indian Accounting

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Standards) Rules, 2018 containing appendix B to IND AS 21, Foreign currency transactions and advance consideration which claries the date of transaction for the purpose of determining the exchange rates to use on initial recognition of related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The company has evaluated the effect of this on the nancial statements and the impact is not material.

b) IND AS 115, Revenue from Contract with Customers: On March 28, 2018, The Ministry of Corporate Affairs notied the IND AS 115. The core principal of new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customer in an amount that reects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash ows arising from the company's contracts with customers. The effective date of adoption of Ind AS 115 is a nancial period beginning on or after April 1, 2018. The Company is in the process of evaluating the impact of adoption of IND-AS 115 on the Financial Statements.

60. An instance of fraud involving payment to a third party has been reported in New York ofce amounting to USD 300,250 (Rs 193.7 million). The matter is under investigation company has initiated action for recovery; however as a matter of prudence full provision has been made towards the same.

61. Previous Years gures have been re-casted/re-arranged in line with IND-AS requirements.

Signatures to the Schedules forming part of the Balance Sheet and Statement of Prot and Loss and to the above notes.

For and on Behalf of For and on Behalf of For and on behalf of the BoardThakur, Vaidyanath Aiyar & Co. Sarda and PareekChartered Accountants Chartered Accountants FRN : 000038N FRN : 109262W

Sd/-(Pradeep Singh Kharola)

Sd/- Sd/-

Chairman & Managing DirectorDI No. 05347746

(V. Rajaraman) (Gaurav Sarda)Partner PartnerM.No. 02705 M.No. 110208

Sd/-(V.S. Hejmadi)Director-FinanceDI No. 07346490

Sd/-(Kalpana Rao)Company Secretary

For and on Behalf of Varma and VarmaChartered Accountants FRN : 004532S

Sd/-

(P. R. Prasanna Varma)PartnerM.No. 025854

Place : New DelhiDate : 20 November 2018

1-air india book-2017-2018 · nancial statements and in preparing the opening ind as balance sheet...

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