2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will
be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions
are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance
Sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a
finance cost.

De-commissioning costs (if any), are provided at the
present value of expected costs to settle the obligation
using estimated cash flows and are recognized as part
of the cost of the particular asset. The cash flows are
discounted at a current pre-tax rate that reflects the risks
specific to the de-commissioning liability. The unwinding
of the discount is expensed as incurred and recognised
in the Statement of Profit and Loss as a finance cost. The
estimated future costs of de-commissioning are reviewed
annually and adjusted as appropriate. Changes in the
estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be
made. When there is an obligation in respect of which the
likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets are neither recognised nor disclosed
in the standalone financial statements.

2.12 Borrowing cost

Borrowing cost includes interest, amortization of ancillary
costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as
an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalised as part of
the cost of the assets upto the date the asset is ready for
its intended use. All other borrowing costs are recognized
as an expense in the Statement of Profit and Loss in the
year in which they are incurred.

2.13 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at banks, cash on hand and short-term
deposits net of bank overdraft with an original maturity of
three months or less, which are subject to an insignificant
risk of changes in value.

For the purposes of the cash flow statement, cash and
cash equivalents include cash on hand, cash in banks
and short-term deposits net of bank overdraft.

2.14 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. When
the grant relates to an expense item, it is recognized
as income on a systematic basis over the periods that
the related costs, for which it is intended to compensate
are expensed. When the grant relates to an asset, it
is recognized as income in equal amounts over the
expected useful life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grants are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual instalments.

2.15 Financial instruments

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

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is
measured at its fair value plus, in the case
of a financial asset not at fair value through

profit or loss, transaction costs that are directly
attributable to the acquisition of the financial
asset. Transaction costs of financial assets
carried at fair value through profit or loss are
expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in following
categories:

a) at amortized cost; or

b) at fair value through other comprehensive
income; or

c) at fair value through profit or loss.

The classification depends on the entity's
business model for managing the financial
assets and the contractual terms of the cash
flows.

Amortized cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments
of principal and interest are measured at
amortized cost. Interest income from these
financial assets is included in finance income
using the Effective Interest Rate method (EIR).

Fair Value Through Other Comprehensive
Income (FVOCI): Assets that are held for
collection of contractual cash flows and
for selling the financial assets, where the
assets' cash flows represent solely payments
of principal and interest, are measured at
Fair Value Through Other Comprehensive
Income (FVOCI). Movements in the carrying
amount are taken through OCI, except for
the recognition of impairment gains or losses,
interest revenue and foreign exchange gains
and losses which are recognised in Statement
of Profit and Loss. When the financial asset
is de-recognized, the cumulative gain or loss
previously recognized in OCI is re-classified
from equity to the Statement of Profit and
Loss and recognized in other gains / (losses).
Interest income from these financial assets is
included in other income using the effective
interest rate method.

Fair Value Through Profit or Loss (FVTPL):
Assets that do not meet the criteria for
amortized cost or FVOCI are measured at fair
value through profit or loss. Interest income
from these financial assets is included in other
income.

In accordance with Ind AS 109 - "Financial
Instruments", the Company applies Expected
Credit Loss (ECL) model for measurement
and recognition of impairment loss on financial
assets that are measured at amortized cost
and FVOCI.

For recognition of impairment loss on financial
assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, twelve months ECL is used to
provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is
used. If in subsequent years, credit quality of
the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the entity reverts to
recognizing impairment loss allowance based
on twelve months ECL.

Life time ECLs are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
twelve months ECL is a portion of the lifetime
ECL which results from default events that are
possible within twelve months after the year
end.

ECL is the difference between all contractual
cash flows that are due to the Company in
accordance with the contract and all the cash
flows that the entity expects to receive (i.e. all
shortfalls), discounted at the original EIR. When
estimating the cash flows, an entity is required
to consider all contractual terms of the financial
instrument (including pre-payment, extension
etc.) over the expected life of the financial
instrument. However, in rare cases when the
expected life of the financial instrument cannot
be estimated reliably, then the entity is required
to use the remaining contractual term of the
financial instrument.

In general, it is presumed that credit risk has
significantly increased since initial recognition
if the payment is more than 30 days past due.

Trade receivables

An impairment analysis is performed at each
reporting date on an individual basis for major
clients. It is based on its historically observed
default rates over the expected life of the
trade receivables and is adjusted for forward-

looking estimates. At every reporting date, the
historical observed default rates are updated
and changes in the forward-looking estimates
are analysed. On that basis, the Company
estimates the provision at the reporting date.

(iv) De-recognition of financial assets

A financial asset is de-recognised only when:

a) the rights to receive cash flows from the
financial asset is transferred; or

b) retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the financial asset is transferred then in
that case financial asset is de-recognised only if
substantially all risks and rewards of ownership
of the financial asset is transferred. Where
the entity has not transferred substantially all
risks and rewards of ownership of the financial
asset, the financial asset is not de-recognised.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and at amortized cost, as
appropriate.

All financial liabilities are recognised initially at
fair value and, in the case of borrowings and
payables, net of directly attributable transaction
costs.

(ii) Subsequent measurement

The measurement of financial liabilities
depends on their classification as described
below:

Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the EIR method. Gains
and losses are recognized in the Statement

of Profit and Loss when the liabilities are
de-recognized 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 finance costs in the
Statement of Profit and Loss.

(iii) De-recognition

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the Statement of
Profit and Loss as finance costs.

(c) Embedded derivatives

An embedded derivative is a component of a hybrid
(combined) instrument that also includes a non¬
derivative host contract - with the effect that some
of the cash flows of the combined instrument vary in
a way similar to a standalone derivative. Derivatives
embedded in all other host contract are separated
if the economic characteristics and risks of the
embedded derivative are not closely related to the
economic characteristics and risks of the host and
are measured at fair value through profit or loss.
Embedded derivatives closely related to the host
contracts are not separated.

Re-assessment only occurs if there is either a
change in the terms of the contract that significantly
modifies the cash flows that would otherwise be
required or a re-classification of a financial asset out
of the fair value through profit or loss.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net
basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or the counterparty.

(a) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the year
in which the employees render the related service
are recognized in respect of employees' services
upto the end of the year and are measured at the
amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the Balance Sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company makes defined contribution
to provident fund and superannuation fund,
which are recognized as an expense in the
Statement of Profit and Loss on accrual basis.
The Company has no further obligations under
these plans beyond its monthly contributions.

(ii) Defined benefit plans

The Company's liabilities under Payment
of Gratuity Act and long-term compensated
absences are determined on the basis of
actuarial valuation made at the end of each
financial year using the projected unit credit
method, except for short-term compensated
absences, which are provided on actual basis.
Actuarial losses / gains are recognised in the
other comprehensive income in the year in
which they arise. Obligations are measured
at the present value of estimated future cash
flows using a discount rate that is determined
by reference to market yields at the Balance
Sheet date on government bonds where the
currency and terms of the government bonds
are consistent with the currency and estimated
terms of the defined benefit obligation.

(iii) Leave encashment - Encashable

Accumulated compensated absences, which
are expected to be availed or encashed within
twelve months from the end of the year are
treated as short-term employee benefits. The
obligation towards the same is measured at the
expected cost of accumulating compensated
absences as the additional amount expected
to be paid as a result of the unused entitlement
as at the year end.

Accumulated compensated absences, which
are expected to be availed or encashed
beyond twelve months from the end of the year

end are treated as other long-term employee
benefits. The Company's liability is actuarially
determined (using the Projected Unit Credit
method) at the end of each year. Actuarial
losses / gains are recognized in the Statement
of Profit and Loss in the year in which they
arise.

2.17 Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to equity
shareholders of parent company by the weighted
average number of equity shares outstanding during the
year. Earnings considered in ascertaining the Company's
earnings per share is the net profit or loss for the year
attributable to equity shareholders of parent company
after deducting preference dividends and any attributable
tax thereto for the year (if any). The weighted average
number of equity shares outstanding during the year and
for all the years presented is adjusted for events, that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to
equity shareholders of parent company and the weighted
average number of shares outstanding during the year
is adjusted for the effects of all dilutive potential equity
shares.

2.18 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company's operating businesses
are organised and managed separately according to
the nature of services provided, with each segment
representing a strategic business unit that offers different
services and serves different markets. Thus, as defined
in Ind AS 108 - "Operating Segments", the business
segments are 'Air Charter'. The Company does not have
any geographical segment.

2.19 Investment in Subsidiary

When the entity prepares separate financial statements,
it accounts for investments in subsidiaries, joint ventures
and associates either:

(a) at cost; or

(b) in accordance with Ind AS 109.

The Company accounts for its investment in subsidiary at
cost.

Investments acquired from Taneja Aerospace and
Aviation Limited pursuant to Demerger of its “Air Charter
Business' are recorded at its book value i.e cost as on

2.20 Rounding off amounts

All amounts disclosed in standalone financial statements
and notes have been rounded off to the nearest lakhs
as per requirement of Schedule III of the Act, unless
otherwise stated.

3 Significant accounting judgments, estimates and
assumptions

The preparation of standalone financial statements
requires Management to make judgments, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, the accompanying
disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the year end date, that
have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur.

(a) Defined benefits and other long-term benefits

The cost of the defined benefit plans such as
gratuity and leave encashment are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future. These
include the determination of the discount rate,
future salary increases and mortality rates. Due to
the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each year end.

The principal assumptions are the discount and
salary growth rate. The discount rate is based upon
the market yields available on government bonds at
the accounting date with a term that matches that
of liabilities. Salary increase rate takes into account
of inflation, seniority, promotion and other relevant
factors on long-term basis.

Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards)
Amendment Rules, 2023

(a) Ind AS 1 - Presentation of Financials Statements

This amendment requires the entities to
disclose their material accounting policies rather
than their significant accounting policies. The
effective date for adoption of this amendment is
annual periods beginning on or after April 1, 2023.
The Company has evaluated the amendment and
the impact of the amendment is insignificant in the
standalone financial statements.

(b) Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors

This amendment has introduced a definition of
'accounting estimates' and included amendments
to Ind AS 8 to help entities distinguish changes in
accounting policies from changes in accounting
estimates. The effective date for adoption of this
amendment is annual periods beginning on or after
April 1, 2023. The Company has evaluated the
amendment and there is no impact on its standalone
financial statements.

(c) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the
initial recognition exemption so that it does not
apply to transactions that give rise to equal and
offsetting temporary differences. The effective date
for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Company
has evaluated the amendment and there is no
impact on its standalone financial statements