2 Significant accounting policies
Significant accounting policies adopted by the Company
are as under:
2.1 Basis of preparation of Financial Statements
(a) Statement of compliance with Ind AS
These standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133
of the Companies Act, 2013 (the "Act") read with
the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016.
Accounting policies have been consistently applied
to all the years presented except where a newly
issued accounting standard is initially adopted or a
revision to an existing accounting standard requires
a change in the accounting policy hitherto in use.
(b) Basis of measurement
The standalone financial statements have been
prepared on a historical cost convention on accrual
basis, except for items that have been measured at
fair value as required by relevant Ind AS.
The Company presents assets and liabilities in
the Balance Sheet based on current / non-current
classification.
An asset is treated as current when it is:
? Expected to be realised or intended to be sold
or consumed in normal operating cycle;
? Held primarily for the purpose of trading;
? Expected to be realised within twelve months
after the reporting period; or
? Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability
for at least twelve months after the reporting
period.
All other assets are classified as non-current.
An liability is current when:
? It is expected to be settled in normal operating
cycle;
? It is held primarily for the purpose of trading;
? It is due to be settled within twelve months
after the reporting period; or
? There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
The Company has ascertained its operating cycle
as twelve months for the purpose of current or non¬
current classification of assets and liabilities.
(c) Use of estimates
The preparation of standalone financial statements
in conformity with Ind AS requires the Management
to make estimates and assumptions that affect
the reported amount of assets and liabilities as
at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures
of contingent liabilities as at the Balance Sheet
date. The estimates and assumptions used in the
accompanying standalone financial statements are
based upon the Management's evaluation of the
relevant facts and circumstances as at the date of
the standalone financial statements. Actual results
could differ from these estimates. Estimates and
underlying assumptions are reviewed on a periodic
basis. Revisions to accounting estimates, if any,
are recognised in the year in which the estimates
are revised and in any future years affected. Refer
note 3 for detailed discussion on estimates and
judgments.
2.2 Business combination and goodwill
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Company's cash-generating units that are
expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units.
A cash-generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may
be impaired. If the recoverable amount of the cash¬
generating unit is less than its carrying amount, the
impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to
the other assets of the unit pro-rata based on the carrying
amount of each asset in the unit. Any impairment loss for
goodwill is recognised in profit or loss. An impairment loss
recognised for goodwill is not reversed in subsequent
periods.
Where goodwill has been allocated to a cash-generating
unit and part of the operation within that unit is disposed
off, the goodwill associated with the disposed operation
is included in the carrying amount of the operation
when determining the gain or loss on disposal. Goodwill
disposed in these circumstances is measured based on
the relative values of the disposed operation and the
portion of the cash-generating unit retained.
2.3 Property, plant and equipments
a) Property, plant and equipments are stated at their
original cost of acquisition or construction less
accumulated depreciation and impairment loss,
if any. The cost of property, plant and equipments
comprises of its purchase price including duties,
taxes, freight and any other directly attributable cost
of bringing the asset to its working condition for its
intended use. However, cost excludes Excise duty,
VAT, GST and Service tax, wherever credit of the
duty or tax is availed of.
All indirect expenses incurred during acquisition
/ construction of property, plant and equipments
including interest cost on funds deployed for the
property, plant and equipments are treated as
incidental expenditure and are capitalised for
the period until the asset is ready for its intended
use. Subsequent costs are included in the assets
carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will flow
to the Company and the cost of the item can be
measured reliably.
The carrying amount of any component accounted
for as a separate asset is de-recognised when
replaced. All other repairs and maintenance are
charged to the Statement of Profit and Loss during
the year in which they are incurred.
b) Advances paid towards the acquisition of property,
plant and equipments outstanding at each Balance
Sheet date is classified as capital advances under
other non-current assets and the cost of assets not
put to use before such date are disclosed under
'Capital work-in-progress'. Property, plant and
equipments received from Taneja Aerospace and
Aviation Limited pursuant to Demerger of its “Air
Charter Business” are recorded at its book value as
on the appointed date.
Depreciation methods, estimated useful lives
In case of company, depreciation is provided on
straight line method on Computer - Hardware and
on written down value method on Office Equipments
and Furniture and Fixtures, based on the useful lives
of assets as prescribed under Part C of Schedule II
of the Companies Act, 2013.
Depreciation on addition to property, plant and
equipments is provided on pro-rata basis from the
date of acquisition. Depreciation on sale / deduction
from property, plant and equipments is provided upto
the date preceding the date of sale / deduction as
the case may be. Gains and losses on disposals are
determined by comparing proceeds with carrying
amount. These are included in the Statement of
Profit and Loss under 'Other Income'.
Depreciation methods, useful lives and residual
values are reviewed periodically at each financial
year end and adjusted prospectively, as appropriate.
2.4 Intangible assets
An intangible asset is recognised when it is probable
that the future economic benefits attributable to the
asset will flow to the enterprise and where its cost can
be reliably measured. Intangible assets are stated at
cost of acquisition less accumulated amortization and
impairment losses, if any. Cost comprises the purchase
price and any cost attributable to bringing the assets to
its working condition for its intended use which includes
taxes, freight, and installation and allocated incidental
expenditure during construction / acquisition and
exclusive of CENVAT credit or other tax credit available
to the Company.
Subsequent expenditure relating to intangible assets
is capitalised only if such expenditure results in an
increase in the future benefits from such asset beyond
its previously assessed standard of performance.
Intangibles assets are amortized over a period of three
financial years starting with the year in which these
assets are procured.
2.5 Foreign currency transactions
(a) Functional and presentation currency
Items included in the standalone financial statements
are measured using the currency of the primary
economic environment in which the entity operates
('the functional currency'). The standalone financial
statements are presented in Indian Rupee (INR),
which is the Company's functional and presentation
currency.
Foreign currency transactions are recorded in the
reporting currency by applying the exchange rate
between the reporting currency and the foreign
currency at the date of the transaction.
(b) Transactions and balances
On initial recognition, all foreign currency
transactions are recorded by applying to the foreign
currency amount the exchange rate between the
functional currency and the foreign currency at the
date of the transaction. Gains / (Losses) arising out
of fluctuation in foreign exchange rate between the
transaction date and settlement date are recognised
in the Statement of Profit and Loss.
All monetary assets and liabilities in foreign
currencies are re-stated at the year end at the
exchange rate prevailing at the year end and
the exchange differences are recognised in the
Statement of Profit and Loss.
Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency
are reported using the exchange rate at the date
of the transaction; non-monetary items which
are carried at fair value or other similar valuation
denominated in a foreign currency are reported
using the exchange rates that existed when such
values were determined.
The assets and liabilities of foreign operations are
translated into INR at the rate of exchange prevailing
at the reporting date and their Statements of Profit or
Loss are translated at exchange rates prevailing at
the dates of the transactions. For practical reasons,
the Company uses an average rate to translate
income and expense items, if the average rate
approximates the exchange rates at the dates of the
transactions. The exchange differences arising on
translation for consolidation are recognised in OCI.
On disposal of a foreign operation, the component
of OCI relating to that particular foreign operation is
recognised in profit or loss.
2.6 Fair value measurement
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:
? In the principal market for the asset or liability; or
? In the absence of a principal market, in the most
advantageous market for the asset or liability
accessible to the Company.
Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant
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 significant to the fair value
measurement is directly or indirectly observable;
? Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.
2.7 Revenue recognition
Effective April 1, 2018 the Company adopted Ind AS
115 - “Revenue from Contracts with Customers” using
the cumulative catch-up transition method applied to
contracts that were not completed as of April 1, 2018.
In accordance with the cumulative catch-up transition
method , the comparatives have not been retrospectively
adjusted. The following is a summary of new and / or
revised significant accounting policies related to revenue
recognition.
Revenue is recognized upon transfer of control of
promised goods and services to the customers in an
amount that reflects the consideration we expect to
receive in exchange for those goods and services and
where there is no uncertainty as to measurement or
collectability of consideration.
Charter income from aircraft given on charter is booked
on the basis of contract with customers and on completion
of actual flying hours of the aircraft.
Revenue from time and material service contracts is
recognized pro-rata over the period of the contract as
and when services are rendered and the collectability is
reasonably assured.
Revenue from long-term fixed price, fixed time frame
contracts where the performance obligations are satisfied
over time and there is no uncertainty as to measurement
or collectability of consideration is recognized as per
the percentage-of-completion method or the completion
method, whichever best depicts measurement of the
progress in transferring control to the customer and billed
in terms of the agreement with and certification by the
customer.
The Company accounts for volume discounts and pricing
incentives to customers as a reduction of revenue based
on the ratable allocation of the discounts / incentives
to each of the underlying performance obligation that
corresponds to the progress by the customer towards
earning the discounts / incentives. Also, when the level
of discount varies with increases in levels of revenue
transactions, the Company recognizes the liability based
on its estimate of the customer's future purchases. If it
is probable that the criteria for the discount will not be
met or if the amount thereof cannot be estimated reliably,
then discount is not recognized until the payment is
probable and the amount can be estimated reliably. The
Company recognizes changes in the estimated amount
of obligations for discounts in the period in which the
change occurs. The discounts are passed on to the
customer either as direct payments or as a reduction of
payments due from the customer.
The Company presents revenues net of indirect taxes in
its Statement of Profit and loss.
Revenue recognized in excess of billings is classified
as contract assets (Unbilled revenue) included in other
current financial assets.
Billings in excess of revenue recognized is classified as
contract liabilities (Deferred revenue) included in other
current liabilities.
The impact of applying Ind AS 115 - “Revenue from
Contract with Customers” instead of the erstwhile Ind
AS 18 Revenue on the financials statements of the
Company for the year ended and as at March 31, 2025 is
not significant.
Other Income
Interest income is recognized on the basis of effective
interest method as set out in Ind AS 109 - "Financial
Instruments", and where no significant uncertainty as
to measurability or collectability exists. Claims towards
insurance claims are accounted in the year of settlement
and / or in the year of acceptance of claim / certainty
of realization as the case may be. Dividend income
is recognized when the right to receive payment is
established.
2.8 Taxes
Tax expense for the year comprising current tax, deferred
tax and minimum alternate tax credit are included in the
determination of the net profit or loss for the year.
(a) Current income-tax
Current tax assets and liabilities are measured at
the amount expected to be recovered or paid to the
taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, at the year end date. Current
tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
(b) Deferred tax
Deferred income-tax is provided in full, using the
Balance Sheet approach, on temporary differences
arising between the tax bases of assets and
liabilities and their carrying amounts in standalone
financial statements. Deferred income-tax is also
not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than
a business combination that at the time of the
transaction affects neither accounting profit nor
taxable profit (tax loss). Deferred income-tax is
determined using tax rates (and laws) that have
been enacted or substantially enacted by the end
of the year and are expected to apply when the
related deferred income-tax asset is realised or the
deferred income-tax liability is settled.
Deferred tax assets are recognized for all deductible
temporary differences and unused tax losses only
if it is probable that future taxable amounts will be
available to utilize those temporary differences and
losses.
Management periodically evaluates positions taken
in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax
authorities.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.
Current and deferred tax is recognised in the
Statement of Profit and Loss, except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is
also recognised in other comprehensive income or
directly in equity, respectively.
(c) Minimum alternate tax
Minimum Alternate Tax (MAT) under the provisions
of the Income Tax Act, 1961 is recognised as current
tax in the Statement of Profit and Loss. The credit
available under the Act in respect of MAT paid is
recognized as asset only when and to the extent
there is convincing evidence that the Company
will pay normal income-tax during the period for
which the MAT credit can be carried forward for
set-off against the normal tax liability. MAT credit
recognized as an asset is reviewed at each Balance
Sheet date and written down to the extent the
aforesaid convincing evidence no longer exists.
2.9 Leases
As a lessee
Leases in which a significant portion of the risks and
rewards of ownership are not transferred to the Company
as a lessee are classified as operating leases. Payments
made under operating leases (net of any incentives
received from the lessor) are charged to the Statement of
Profit and Loss on a straight-line basis over the period of
the lease unless the payments are structured to increase
in line with expected general inflation to compensate for
the lessor's expected inflationary cost increases.
Also initial direct cost incurred in operating lease such as
commissions, legal fees and internal costs is recognised
immediately in the Statement of Profit and Loss.
Where the Company, as lessee, has substantially
transferred all the risks and rewards of ownership
are classified as finance leases. Finance leases are
capitalized at the lease's inception at the fair value of
the leased property or, if lower, the present value of the
minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in
borrowings or other financial liabilities as appropriate.
Each lease payment is allocated between the liability
and finance cost. The finance cost is charged to the
Statement of Profit and Loss over the lease period so
as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
2.10 Impairment of non-financial assets
The Company assesses at each year end whether there
is any objective evidence that a non-financial asset or
a group of non-financial assets is impaired. If any such
indication exists, the Company estimates the asset's
recoverable amount and the amount of impairment loss.
An impairment loss is calculated as the difference
between an assets carrying amount and recoverable
amount. Losses are recognised in the Statement of Profit
and Loss and reflected in an allowance account. When the
Company considers that there are no realistic prospects
of recovery of the asset, the relevant amounts are written
off. If the amount of impairment loss subsequently
decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised
then the previously recognised impairment loss is
reversed through the Statement of Profit and Loss.
The recoverable amount of an asset or cash-generating
unit is the greater of its value-in-use and its fair value less
costs to sell. In assessing value-in-use, the estimated
future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. For the purpose of impairment
testing, assets are Companyed together into the smallest
Company of assets that generates cash inflows from
continuing use that are largely independent of the cash
inflows of other assets or Companys of assets (the “cash¬
generating unit”).
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