Interglobe Aviation Ltd Directors Report.

To the Members of InterGlobe Aviation Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of InterGlobe Aviation Limited ("the Company"), which comprise the Balance sheet as at March 31 2020, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2020, its loss including other comprehensive income its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Emphasis of Matter

We draw attention to Note 44 in the financial statements, which describes the possible effects of uncertainties relating to COVID-19 on Companys operations and results as assessed by the management. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2020. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.

Recognition of Passenger Revenue (refer note 21 to the standalone financial statements)

The Company recognises passenger revenue on flown basis i.e. when the service is rendered. Moreover, fees charged for cancellation of flight tickets is recognised as revenue on rendering of the said service. Further, the Company recognises revenue from unexercised rights of customers which are nonrefundable in nature, based on past trends in proportion to the pattern of rights exercised by the customer. Our procedures included, but were not limited to the following:
• assessed that the revenue recognition policy is in line with Ind AS 115 Revenue from Contracts with Customers;
• involved our IT specialist to assist in assessing the design, implementation and operating effectiveness of managements general IT controls and key application controls over the Companys IT systems and third- party systems (assessed the assurance report attesting the appropriateness and effectiveness of the internal control system established by the service provider (the SSA€ 16 report)) which govern revenue recognition, and key manual internal controls over passenger revenue recognition, including testing of preventive controls over unauthorised override;
The determination of passenger revenue to be recognised for each flight requires complex IT systems and involves high volume of transactions.
We identified revenue recognition as a key audit matter because passenger revenue is one of the Companys key performance indicators, it involves complicated IT systems that handle large volumes of transaction data and includes exchange of information with industry systems and partner airlines and the judgement required by management in determining the unexercised rights of passengers, all of which give rise to an inherent risk that revenue could be recorded in the incorrect period or at incorrect amount.
• performed tests of details such as tested revenue and collection reconciliations of Companys records with reports generated from third party systems, tested manual journal entries posted into relevant revenue accounts in the sub-ledger and general ledger which met specified risk-based criteria.
• performed data analytics to analyse the flow of transactions from ticket sales to passenger revenue to identify unusual patterns and events
• analysed the terms related to passenger tickets and obtained data supporting Companys historical expiry trend in respect of unused revenue documents and tested a sample of revenue documents from the source data to ascertain timing of the recognition they were recorded and evaluated the judgements used in determining the timing of the recognition of revenue from unexercised rights of passengers.
• performed tests to verify that the timing of passenger revenue recognition was appropriate;

First time adoption of Ind AS 116 for leases - Lease accounting, incentives and corresponding tax implications (refer note 16.b to the standalone financial statements)

The Company operates certain new and used aircraft under both finance and operating lease arrangements. The Company has applied Ind AS 116 from the application date (April 1,2019) using the modified retrospective approach, thereby recognising the cumulative effect as an adjustment to the opening balance of retained earnings as at April 1,2019, with no restatement of comparative information. Our audit procedures included but were not limited to:
• tested that the Companys accounting policies are in compliance with requirements of Ind AS 116, including consideration of exemptions and practical expedients exercised;
• assessed the design, implementation and operating effectiveness of managements key internal controls over process for identifying lease contracts, or contracts which contain leases, related incentives and accounting thereof;
Further, for determination of the appropriate lease accounting under Ind AS 116, basis classification of leases, sale and leaseback transactions, and corresponding tax treatment, the Company has considered the substance of the transaction rather than just the legal form including among other factors, treatment of receipt of non-refundable incentives in connection with acquisition of new aircrafts.
• tested the completeness of the data in the aircraft lease master, by validating the scope of the aircraft and other leases and assessed management judgements used in determining the classification of leases, re-validating operating leases identified under the previously applicable standard, exemptions and practical expedients exercised;
The first-time adoption of the standard resulted in the recognition, as at April 1,2019, of right of use of INR 93,942.04mn, a lease liability amounting to INR 146,320.72mn and decrease in retained earnings of INR.6,180.47mn (net of deferred taxes of INR.3,319.76mn).
• performed tests of details to examine the inputs used for determining right of use assets and lease liabilities related to lease contracts with underlying lease agreements including related incentives received and performed computation checks on the amount of lease liability and the right to use, tracing of the same to bank statements, credit notes, underlying contracts/documents;
We considered the first-time application of the standard as a key audit matter, on aircraft and other leases (including the corresponding tax treatment), due to significant judgement required in the assumptions and estimates used to determine the Right of Use (ROU) asset and lease liability, viz assessment of lease term (including modification terms), determination of appropriate incremental borrowing rate, treatment of non-refundable incentives received in connection with the acquisition of the aircrafts from ROU, componentisation of the ROU asset, practical expedients used) and the tax treatment of incentives involves a significant degree of management judgement in interpreting the various relevant rules, regulations and practices.
• assessed the inputs used for determination of the incremental borrowing rate including, assessment of lease term by reference to the underlying lease contracts and market data;
• engaged our internal tax specialists to assess Companys assumptions, critical judgements made by management on the tax treatment of incentives, which impacted their estimations of the provisions required for open tax assessments and for other years, basis the favourable ITAT orders received by the Company and opinions given by third party tax advisors;
• assessed the adequacy of the disclosures in respect of the adoption in Note 16.b and in respect of the tax position in Note 30 to the standalone financial statements.

Aircraft Maintenance Obligations (refer note 41 to the standalone financial statements)

The company operates aircraft which are owned or held under operating lease arrangements and incurs liabilities for maintenance costs in respect of aircraft leased during the term of the lease. These arise from legal and contractual obligations relating to the condition of the aircraft when it is returned to the lessor. Our audit procedures to assess aircraft maintenance provisions included but were not limited to the following:
• assessed the design, implementation and operating effectiveness of the managements internal controls over the maintenance process including accounting for maintenance provisions for aircraft held under operating leases;
At each reporting date, the calculation of the maintenance provision includes a number of variable factors and assumptions including: likely utilisation of the aircraft; the expected cost of the heavy maintenance check at the future date it is expected to occur; the condition of the aircraft engine, contractual return conditions.
Given the involvement of inherent level of management judgement required as a result of the complex and subjective element around these variable factors and assumptions in order to quantify the provision amounts, we have identified this as a key audit matter. • assessed the adequacy of the provision recorded and key assumptions adopted by management in estimating the provisions and any changes therein, and reviewed the terms of the operating leases, compared assumptions to contract terms and the Companys maintenance cost experience;
• obtained information about the utilisation pattern by reference to the expected future maintenance event dates from Companys appropriate personnel and assessed the consistency of the provisions with the engineering departments assessment of the condition of aircraft, based on underlying engine borescope inspections and results, analysis of historical flight hours, estimate of the cost of maintenance work to historic invoices;
• assessed the adequacy of the provision by ensuring that all significant return condition obligations included in aircraft operating lease contracts have been considered;
• performed sensitivity analysis around the key assumptions;
• assessed the adequacy of the related disclosures in respect of the change in estimate in Note 41 to the standalone financial statements.

Impact of COVID-19 on impairment of non-financial assets (refer note 44 to the standalone financial statements)

During the current year, due to impact of COVID-19, impairment indicators were identified on the investments in non-financial assets, namely PPE and ROU. As a result, an impairment assessment was required to be performed. There was uncertainty in estimating the recoverable amount of the PPE and ROU, which principally arose from the inputs used in both forecasting and discounting future cash flows. Furthermore, the value in use is highly sensitive to changes in these inputs. The determination of the recoverable amount of the PPE and ROU was one of the key judgmental areas in preparing the financial statements due to a combination of the significance of the ROU and PPE and involved management making estimates and judgements that are critical to the outcomes of these inputs and the inherent uncertainty in the assumptions supporting the recoverable amount of these assets, hence impact of COVID-19 on the impairment of non-financial assets, has been determined to be a key audit matter. Our audit procedures included but were not limited to:
• obtained managements most recent financial results forecasts and liquidity analysis underlying their impairment assessment and tested the integrity of the forecasts, including mathematical accuracy.
• together with our valuation specialists, inspected managements most recent forecasts and assessed the underlying assumptions/calculations, the assumed duration of the disruption, having considered information on capacity, passenger load factors and expected growth rates from recent industry sources.
• assessed potential changes in key drivers with management in order to evaluate whether the inputs and assumptions used in the cash flow forecasts were suitable.
• assessed the most recent forecasts with the management of the entity to understand Companys and the Boards views on impairment of the nonfinancial assets.
• assessed the adequacy of the disclosures made in the financial statements.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the standalone Ind AS financial statements and our auditors report thereon. Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2020 and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

The Ind AS financial statements of the Company for the year ended March 31, 2019, included in these standalone Ind AS financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 27, 2019

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the written representations received from the directors as on March 31,2020 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2020 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;

(g) The remuneration paid to Chief Bxecutive Officer and Wholetime Director for the year ended March 31,2020, being in excess of the limits prescribed within provisions of section 197 read with Schedule V to the Act by INR 155.82 million, is subject to the approval by a special resolution by the shareholders;

(h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 30 to the standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

For S.R. Batliboi & Co LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Vij
Partner
Place of Signature: Gurugram Membership Number: 95169
Date: June 2, 2020 UDIN:20095169AAAABH9500

Annexure 1 referred to in paragraph 1 under the heading "Report on other legal and regulatory requirements" of our report of even date Re: InterGlobe Aviation Limited (the Company)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of two years except for aircraft and spare engines which are verified on an annual basis and rotables which are verified over the period of three years basis the changes in its physical verification programme of rotables during the current year, and accordingly physical verification of rotables would be covered during the next year. In our opinion, this periodicity of physical verification by management is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain fixed assets were physically verified during the year. As informed to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, there are no immovable properties, included in property, plant and equipment of the Company and accordingly, the requirements under paragraph 3(i) (c) of the Order are not applicable to the Company.

(ii) The management has conducted physical verification of inventory at reasonable intervals except for goods in transit amounting to Rs. 63.44mn, which have not been verified during the year or at the end of the year. No material discrepancies were noted on such verification. Inventories lying with third parties have been confirmed by them as at year end and no material discrepancies were noticed in respect of such confirmations.

(iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, there are no loans, guarantees, and securities given in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon. In respect of investments made, provisions of section 186 have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under Section 148(1) of the Companies Act, 2013, for the products/services of the Company

(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues, including provident fund, employees state insurance, income-tax, goods and services tax, duty of custom, cess, and other statutory dues applicable to it. As explained to us, the Company did not have any dues on account of duty of excise, sales tax, service tax and value added tax.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income-tax, service tax, sales tax, value added tax, duty of custom, duty of excise, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the Company, the dues of income tax, sales-tax, service tax, customs duty, value added tax and cess which have not been deposited on account of any dispute, are as follows:

Name of the statute Nature of dues Amount (Rs.) Amount paid under protest Period to which the amount relates Forum at which the dispute is pending
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) AY 2007-08 High Court of Delhi and CIT (A)
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) AY 2008-09 and AY 200910 High Court of Delhi and ITAT
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) 8.66 1.30 AY 2010-11 ITAT and CIT(A)
Income Tax Act Writ Petition before High Court challenging the reopening of assessment on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) 3,921.14 AY 2011-12 High Court of Delhi
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) 7,980.44 350.00 AY 2012-13, AY 2013-14 , AY 2014-15 and AY 2015-16 ITAT
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) 7,396.76 381.26 AY 2016-17 CIT(A)
Income Tax Act Revision to the taxable income on account of: Tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses /adjustments (Refer Note 30) 9,270.31 391.92 AY 2017-18 CIT(A)
Income Tax Act Tax deducted at source 1.02 - AY 2007-08 AO
Income Tax Act Tax deducted at source 162.59 12.91 AY 2010-11 and AY 201112 ITAT
Income Tax Act Tax deducted at source 22.78 11.41 AY 2012-13 CIT(A)
Income Tax Act Tax deducted at source 0.73 0.73 AY 2014-15 CIT(A)
Income Tax Act Tax deducted at source 37.60 2.13 AY 2008-09, AY 2009-10, AY 2010-11, AY 2013-14, AY 2014-15, 2019-20 AO, ITAT
Income Tax Act Tax deducted at source 115.74 - AY 2013-14 DCIT
Finance Act, 1994 (Service Tax) Penalty for late payment of service tax on various expenses incurred on ECB 358.56 89.64 FY 2012-13 to FY 2013-14 CESTAT
Finance Act, 1994 (Service Tax) Service tax on food and beverages sold in aircraft to on-board passengers 344.93 18.26 FY 2013-14 to FY 2017-18 (till 30 June 2017) CESTAT
The Customs Act Customs duty and penalty on import of aircraft engines 531.20 - FY 2011-12 to FY 2012-13 CESTAT
Finance Act, 1994 (Service Tax) Service tax on passenger ticket cancellation and refund processing charges 2,086.19 47.52 FY 2012-13 to FY 2016-17 CESTAT
Finance Act, 1994 (Service Tax) Cenvat credit availment on input services used for providing cargo service and credit availed on the basis of ineligible invoices 204.55 7.67 FY 2008-09 to FY 2011-12 CESTAT
The Customs Act Customs duty and penalty on relinquishment of warehoused liquor 0.16 0.15 FY 2019-20 Commissioner of Customs (Appeals)
The Customs Act IGST (under customs) on engine stand imported 25.37 - FY 2017-18 to FY 2018-19 CESTAT
The Customs Act Refund of customs duty attributable to notional freight charges added to the value of ATF 0.12 0.12 April 2015 to August 2017 Commissioner of Customs (Appeals), New Delhi
The Customs Act Customs Duty and Penalty demanded on notional freight charges added to value of ATF 0.35 FY 2018-19 Commissioner of Customs (Appeals)
Kerala Value Added Tax, 2003 VAT on sale of goods in International Flights 0.66 0.92 FY 2012-13 to FY 2013-14 Kerala VAT Appellate Tribunal Ernakulam
Maharashtra Value Added Tax, 2003 CST on sale of goods on international flights in state of Maharashtra 7.38 0.48 FY 2012-13 Joint Commissioner
Maharashtra Value Added Tax, 2003 Denial of Input Tax Credit 0.17 FY 2012-13 Joint Commissioner
Maharashtra Value Added Tax, 2003 Tax on sale of goods on international flights in state of Maharashtra and Denial of Input Tax Credit 4.67 0.26 FY 2013-14 Joint Commissioner
Mumbai Municipal Corporations Act, 1888 Octroi on import/inward movement of aircraft and engines stand into city of Mumbai for installation 74.39 74.39 FY 2016-17 High Court
Central Sales Tax Act, 1956 & APCST Rules Central Sales Tax on sale of goods in international flights in state of Andhra Pradesh 0.35 0.04 FY 2012-13 Deputy Commissioner of Commercial Taxes, Telangana
Rajasthan Value Added Tax, 2003 Demand raised by AC of Commercial Taxes on account of mismatch in turnover and denial of Input Tax Credit 4.83 FY 2015-16 and FY 201617 Assistant Commissioner of Commercial Taxes, Jaipur
Rajasthan Value Added Tax, 2003 Demand raised by AC of Commercial Taxes on account of mismatch in turnover and denial of Input Tax Credit 0.01 FY 2017-18 Assistant Commissioner of Commercial Taxes, Jaipur
Karnataka Value Added tax, 2003 Demand raised by DC on differential tax of 9% on the goods sold @ 5.5% and denied refund. 4.75 FY 2015-16 Deputy Commissioner (Appeals)
Name of the statute Nature of dues Amount (Rs.) Amount paid under protest Period to which the amount relates Forum at which the dispute is pending
Central Sales Tax Act, 1956 & Karnataka Vat Rules, 2005 Central Sales Tax on sale of goods in international flights in state of Karnataka 1.80 FY 2015-16 Deputy Commissioner (Appeals)
Central Sales Tax Act, 1956 & Karnataka Vat Rules, 2005 Central Sales Tax on sale of goods in international flights in state of Karnataka 1.23 FY 2016-17 Deputy Commissioner (Appeals)
Customs Tariff Act, 1975 and The Integrated Goods and Services Tax, 2017 Integrated Goods and Services Tax on re-import of aircraft, engines & certain aircraft parts after repair 5,916.00 5,916.00 FY 2017-18 to FY 2019-20 CESTAT Delhi and Commissioner of Customs (Appeals), ND/Bengaluru /Hyderabad

According to the information and explanations given to us, there are no dues of excise duty, and cess which have not been deposited on account of any dispute.

(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution or bank. The Company did not have any loans or borrowing from the government and there were no debentures issued during the year or outstanding as at 31 March 2020.

(ix) In our opinion and according to information and explanations given by the management, monies raised by the Company by way of Institutional Placement Programme during the year 2017-18, were applied for the purpose for which they were raised. The term loans taken by the Company have been applied for the purposes for which they were raised.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanation given by the management, we report that remuneration of the Chief Executive Officer and Wholetime Director for the year ended March 31, 2020 is in excess of the limits applicable under section 197 of the Act, read with Schedule V thereto, by Rs 155.82 million. We are informed by the management that it proposes to obtain approval of the shareholders in a general meeting by way of a special resolution.

(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.

(xv) According to the information and explanations given by the management, the Company has not entered into any noncash transactions for purchase of assets with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.

(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S.R. Batliboi & Co LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Vij
Partner
Place of Signature: Gurugram Membership Number: 95169
Date: June 2, 2020 UDIN:20095169AAAABH9500

Annexure 2 Referred In Paragraph 2(F) Under The Heading "Report On Other Legal And Regulatory Requirements" Of Our Report On The Standalone Financial Statements Of Interglobe Aviation Limted

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Interglobe Aviation Limited ("the Company") as of March 31,2020 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2020, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S.R. Batliboi & Co LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Vij
Partner
Place of Signature: Gurugram Membership Number: 95169
Date: June 2, 2020 UDIN:20095169AAAABH9500