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Jet Airways (India) Ltd.

BSE: 532617 Sector: Services
NSE: JETAIRWAYS ISIN Code: INE802G01018
BSE 00:00 | 12 Aug 102.60 -1.40
(-1.35%)
OPEN

102.95

HIGH

104.00

LOW

102.05

NSE 00:00 | 12 Aug 103.20 -0.65
(-0.63%)
OPEN

104.00

HIGH

104.00

LOW

102.40

OPEN 102.95
PREVIOUS CLOSE 104.00
VOLUME 18760
52-Week high 137.60
52-Week low 72.00
P/E
Mkt Cap.(Rs cr) 1,166
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 102.95
CLOSE 104.00
VOLUME 18760
52-Week high 137.60
52-Week low 72.00
P/E
Mkt Cap.(Rs cr) 1,166
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jet Airways (India) Ltd. (JETAIRWAYS) - Auditors Report

Company auditors report

To the Members of Jet Airways (India) Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of Jet Airways(India) Limited (‘the Company') which comprise the Balance sheet as at 31 March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafter

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs loss (including other comprehensive income) changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the Standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 and its loss othercomprehensiveincomechangesinequityanditscashflowsfor the year ended on that date.

Emphasis of Matter

We draw attention to Note 52 of the standalone Ind AS financial statements regardingpreparation of the Ind AS standalone financial statements on going concern basis for thereasons stated therein. The appropriateness of assumption of going concern is dependentupon realization of the various initiatives undertaken by the Company and/or the Company'sability to raise requisite finance/generate cash flows in future to meet its obligationsincluding financial support to its subsidiary companies.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit; (b) in ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) the Balance sheet the Statement ofProfit and Loss (including Other Comprehensive Income) the Cash Flow Statement and thestatement of change in equity dealt with by this Report are in agreement with the books ofaccount; (d) in our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting standards) Rules 2015 as amended; (e) the matter describedunder the Emphasis of Matter paragraph above in our opinion may have an adverse effecton the functioning of the Company.

(f) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act; (g) with respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate report in "Annexure B"; (h) with respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. the Company has disclosedthe impact of pending litigations on its financial position in its Standalone Ind ASfinancial statements Refer Note 45 to the Standalone Ind AS financial statements; ii. theCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses; iii. There were no amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv. Thedisclosures in the financial statements regarding holdings as well as dealings inspecified bank notes during the period from 8 November 2016 to 30 December 2016 have notbeen made since they do not pertain to the financial year ended 31 March 2018.

For B S R & CO. LLP FOR D T S & ASSOCIATES
Chartered Accountants Chartered Accountants
(Firm's Registration No: 101248W/W-100022) (Firm's Registration No: 142412W)
Bhavesh Dhupelia T. P. Ostwal
Partner Partner
Membership No. 042070 Membership No. 030848
Place : Mumbai
Date : 23 May 2018

Annexure-A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2018 we reportthat: (i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a programme of verification of fixed assets to cover all the itemsin opinion is reasonable having regard to the size of the Company and the nature of itsfixed assets. Pursuant to the program certain asset were physically verified by theManagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. (ii) As explained to us the inventory hasbeen physically verified during the year by the management other than inventory lying withthird parties. In our opinion the frequency of verification is reasonable. In respectparties we have relied on the confirmationsobtained by the management from such entities.The discrepancies noticed on verification between the physical stock and the book recordswere not material.

(iii) In our opinion and according to information and explanations given to us theCompany has granted unsecured loans to its wholly-owned subsidiary covered in the registermaintained under Section 189 of the Act. In respect of such loan (a) Terms and conditionsof unsecured loan granted to wholly-owned subsidiary is not prejudicial of the interest ofthe Company.

(b) Loan given till 31 March 2014 is interest free and loan given thereafter isinterest bearing and is repayable in the financial year 2019-2020.

(c) There is no overdue amount in excess of Rs.1 Lakh remaining outstanding as at theyear end.

(iv) In our opinion and according to the information and explanations given to usthere are no loans guarantees or securities granted in respect of which provisions ofSection 185 and 186 of the Act are applicable to the Company. The Company has compliedwith the provision of section 186 of the Act in respect of the investment made.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits as per the directions issued by the Reserve Bank ofIndia from the public in accordance with relevant provisions of Sections 73 to 76 or anyother relevant provisions of the Act and the rules framed there under. Accordinglyparagraph (v) of the Order is not applicable to the Company.

(vi) As informed to us by the management the Central Government has not prescribed themaintenance of cost records under section 148(1) of the Act for any of theservices/activities rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Sales Tax Value Added Tax service tax Goods and Service Tax profession taxincome tax (tax deducted at source)duty of customs cess and other material statutorydues have generally been regularly deposited with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax Sales TaxValue Added Tax duty of customs service tax Goods and Service Tax profession tax cessand other material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable except in respect of interest on servicetax of Rs.6342 Lakhs for the period 2012-13 to 2014-15.

(b) According to the information and explanations given to us there are no materialdues of duty of excise sales tax and value added tax which have not been deposited withthe appropriate authorities on account of any dispute. However according to informationand explanations given to us the following dues of Income Tax Service Tax and Duty ofCustoms have not been deposited by the Company on account of disputes:

Name of the statute Nature of dues Period to which the amount relates Forum where dispute is pending Amount not deposited on account of demand (Rs in Lakhs)
Inland Air Travel and Tax Rules 1989 (IATT) Interest & Penalty* 2003-04 Delhi High Court 321
Customs Act 1962 Custom Duty 2010-2011 to 2013-2014 Commissioner of Customs (Appeals) 9
Customs Act 1962 Custom Duty 2009-2010 to 2014-2015 and 2016-2017 Commissioner of Customs 438
Customs Act 1962 Custom Duty* 2006-2007 to 2013-2014 and 2017-18 The Customs Excise and Service Tax Appellate Tribunal 2479
Finance Act 1994 Service Tax 2003-2004 to 2005-2006 Supreme Court of India 361
Finance Act 1994 Service Tax* 2004-2005 to 2014-2015 The Customs Excise and Service Tax Appellate Tribunal (CESTAT) 43377
Finance Act 1994 Service Tax* 2004-2005 2005-2006 and 2008-2009 to 2016-2017 Commissioner of Central Excise 77846
Finance Act 1994 Service Tax* 2014-2015 Commissioner of Central Excise (Appeals) 23
Income Tax Act 1961 Income Tax 2008-2009 and 2012-13 to 2016-17 Commissioner of Income Tax(Appeals) 2391
Income Tax Act 1961 Income Tax 2002-03 and 2008-09 Income Tax Appellate Tribunal 332
Income Tax Act 1961 Income Tax 2006-2007 Bombay High Court 233
Income Tax Act 1961 Income Tax 2006-2007 to 2016-2017 Commissioner of Income Tax 1523

*Amount paid for IATT interest and penalty Rs.105 Lakhs Service tax (CESTAT) Rs.587Lakhs Service Tax (commissioner of central excise) Rs.500 Lakhs Service Tax(commissioner of central excise (Appeal) Rs.2 Lakhs and Custom duty (CESTAT) Rs.84 Lakhsand Commissioner of Customs (Appeals) Rs.21134 Lakhs.

(viii) In our opinion and according to the information and explanations given to usthere have been no defaults in the repayment of dues to financial institutions banks anddebenture holders during the year. The Company did not have dues relating to any loan orborrowing from government during the year.

(ix) In our opinion and according to the information and explanations given to us thecompany has utilized the money raised by way of term loans during the year for the purposefor which they were raised. The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments).

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeeshas been noticed or reported during the course of our audit nor have we been informed ofany such case by the management.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company as prescribed under section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company. (xiii) According to theinformation and explanations given to us and based on our examination of the records ofthe Company all transactions with the related parties are in compliance with Sections 177and 188 of the Act where applicable. The details of such related party transactions havebeen disclosed in the standalone Ind AS financial statements as required by the applicableAccounting Standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3 (xvi) of the Order is not applicable to the Company.

For B S R & CO. LLP FOR D T S & ASSOCIATES
Chartered Accountants Chartered Accountants
(Firm's Registration No: 101248W/W-100022) (Firm's Registration No: 142412W)
Bhavesh Dhupelia T. P. Ostwal
Partner Partner
Membership No. 042070 Membership No. 030848
Place : Mumbai
Date : 23 May 2018

Annexure-B to the Independent Auditors' Report

(Referred to in our report of even date)

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls with reference to financial statementsof Jet Airways (India) Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (‘the Guidance Note') issued by the Institute of Chartered Accountants ofIndia (‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.

Meaning of Internal Financial Controlsoverwithreferencetofinancialstatements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects maintained an adequateinternal financial controls system with reference to financial statements and suchinternal financial controls with reference to financial statements were operatingeffectively as at 31 March 2018 based on the internal control with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the Institute of CharteredAccountants of India.

For B S R & CO. LLP FOR D T S & ASSOCIATES
Chartered Accountants Chartered Accountants
(Firm's Registration No: 101248W/W-100022) (Firm's Registration No: 142412W)
Bhavesh Dhupelia T. P. Ostwal
Partner Partner
Membership No. 042070 Membership No. 030848
Place : Mumbai
Date : 23 May 2018

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