<dhhead>Independent Auditors Report</dhhead>
To the Members of InterGlobe Aviation Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of
InterGlobe Aviation Limited ("the Company"), which comprise
the Balance sheet as at March 31,2025, the Statement of Profit and Loss, including the
statement of Other Comprehensive Income,
the Cash Flow Statement and the Statement of Changes in quity for the year then
ended, and notes to the standalone financial
statements, including a summary of material 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 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 31,2025, its profit including other comprehensive loss, 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 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 Financial Statements section of our report. We are
independent of the Company in accordance with the
Code of thics 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 thics. We
believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the standalone
financial statements for the financial year ended March 31, 2025. These matters were
addressed in the context of our audit of the
standalone 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 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 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
financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Recognition of Passenger Revenue (refer note 23 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. |
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, i.e., the SSAE 16 report, attesting the appropriateness and effectiveness of the internal control system established by the service provider) which govern revenue recognition, and key manual internal controls over passenger revenue recognition, including controls related to estimation of trends in respect of unused tickets and 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 tests to verify that the timing of passenger revenue recognition was appropriate. |
Lease accounting, incentives and corresponding tax implications (refer note 18.b to the standalone financial statements) |
|
The Company operates certain new and used aircraft under lease arrangements. |
Our audit procedures included but were not limited to: in |
tested that the Companys accounting policies are compliance with requirements of Ind AS 116, including consideration of exemptions; design, |
|
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. |
|
assessed the 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; |
|
We considered lease accounting, of aircraft and other leases (including the corresponding tax treatment), as a key audit matter 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 and other assets in ROU, componentisation of the ROU asset, and the tax treatment of incentives involves a significant degree of management judgement in interpreting the various relevant rules, regulations and practices. |
tested the completeness of the data in the aircraft lease master by validating the key terms of the aircraft acquisition and leases agreements (including modifications) and assessed management judgements used in determining the classification of leases; |
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; |
|
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 special bench orders received by the Company, opinions given by third party tax advisors. |
|
assessed the disclosures in respect of the tax position in Note 32 to the standalone financial statements. |
Key audit matters |
How our audit addressed the key audit matter |
Aircraft Maintenance Obligations (refer note 19 to the standalone financial statements) |
|
The Company operates aircraft which are owned or held under lease arrangements and incurs liabilities for maintenance costs in respect of aircraft leased during the term of the lease. |
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; |
|
These arise from legal and contractual obligations relating to the condition of the aircraft when it is returned to the lessor. |
|
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. |
|
assessed 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; |
|
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. |
|
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 analysis of historical flight hours, estimate of the cost of maintenance work to historic invoices; |
|
assessed the provision by ensuring that all significant return condition obligations included in aircraft lease contracts have been considered; |
|
performed sensitivity analysis around the key assumptions. |
Lease accounting, incentives and corresponding tax implications (refer note 18.b to the standalone financial statements)
The Company operates certain new and used aircraft under
lease arrangements.
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.
We considered lease accounting, of aircraft and other leases
(including the corresponding tax treatment), as a key audit
matter 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 and other
assets in ROU, componentisation of the ROU asset, and the
tax treatment of incentives involves a significant degree of
management judgement in interpreting the various relevant rules,
regulations and practices.
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;
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;
tested the completeness of the data in the aircraft lease
master by validating the key terms of the aircraft acquisition
and leases agreements (including modifications) and
assessed management judgements used in determining the
classification of leases;
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;
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
special bench orders received by the Company, opinions
given by third party tax advisors.
assessed the disclosures in respect of the tax position in
Note 32 to the standalone financial statements.
136 Annual Report 2024-25
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 financial statements and our
auditors report thereon.
Our opinion on the standalone 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 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 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 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
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 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 charged with governance are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the
standalone 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 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 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 with reference to financial statements 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 financial statements, including the disclosures,
and whether the standalone 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 financial statements for the financial year ended March 31,
2025 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("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 except, for the matter stated in the paragraph (i) (vi) below
on reporting under Rule 11(g);
(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 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 31,2025 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31,2025 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
with reference to standalone financial statements and the
operating effectiveness of such controls, refer to our separate Report in "Annexure
2" to this report;
(g) The modification relating to the maintenance of accounts and other
matters connected therewith are as stated in the
paragraph (b) above on reporting under Section 143(3)(b) and paragraph (i)(vi) below on
reporting under Rule 11(g);
(h) In our opinion, the managerial remuneration for the year ended
March 31,2025 has been paid / provided by the Company
to its directors in accordance with the provisions of section 197 read with Schedule V to
the Act;
(i) 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 financial
statements - Refer Note 32 to the standalone 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 were no amounts which were required to be transferred to the
Investor ducation and Protection Fund
by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge
and belief, no funds have been received by the
Company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-
clause (a) and (b) contain any material misstatement.
v. As stated in note 17 to the standalone financial statements, the
Board of Directors of the Company have proposed
final dividend for the year which is subject to the approval of the members at the ensuing
Annual General Meeting. The
dividend proposed is in accordance with section 123 of the Act as applicable.
vi. Based on our examination which included test checks, as stated in
Note 42 to the financial statements, the Company
has used accounting software(s) for maintaining its books of account which has a feature
of recording audit trail
facility and the same has operated throughout the year for all relevant transactions
recorded in the software at the
application level.
For a software used to manage payroll process, the audit trail feature
at the database was enabled throughout the
year. Further, for SAP and another software used for managing cargo revenue, the audit
trail feature was enabled
during the year for direct changes to database.
The accounting software used for managing passenger revenue of the
Company is operated by third-party software
service provider. In the absence of any information on existence of audit trail (edit
logs) for any direct changes made at
the database level in the Independent Service Auditors Assurance Report on the
Description of Controls, their Design
and Operating ffectiveness (SOC Type 2 report), we are unable to comment on
whether audit trail feature with
respect to the database level of the said software was enabled and operated throughout the
year.
Where audit trail is enabled, during the course of our audit, we did
not come across any instance of audit trail feature
being tampered with respect to the accounting software. Additionally, the audit trail in
respect of prior year has been
preserved by the Company as per the statutory requirements for record retention, to the
extent it was enabled.
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) (A) The company has maintained proper records showing full particulars, including quantitative details and situation of
Property, Plant and Equipment.
(B) The company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a regular programme of physical verification of its
Property, Plant and equipment by which all of them 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. 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
Property, Plant and equipment were
physically verified during the year. As informed to us, no material discrepancies were
noticed on such verification.
(c) There is no immovable property (other than properties where the
Company is the lessee and the lease agreements are duly
executed in favour of the lessee), held by the Company and accordingly, the requirement to
report on clause 3(i)(c) of the
Order is not applicable to the Company.
(d) The Company has not revalued its Property, Plant and Equipment
(including Right of use assets) or intangible assets during
the year ended March 31,2025.
(e) There are no proceedings initiated or are pending against the
Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals except for inventories lying with
third parties and goods in transit amounting to Rs. 2,360 million which
have not been verified at the end of the year. In our
opinion the coverage and the procedure of such verification by the management is
appropriate. Inventories lying with third
parties have been confirmed by them as at year end. Discrepancies of 10% or more in
aggregate for each class of inventory
have not been noticed on such physical verification and in respect of confirmations from
third parties.
(b) As disclosed in note 18.a to the Standalone financial statements,
the Company has been sanctioned working capital limits
in excess of Rs. five crores in aggregate from banks during the year on the basis of
security of current assets of the Company.
As stated in the aforesaid note no quarterly returns/statements were required to be filed
by the Company with such banks
during the year ended March 31, 2025. Accordingly, the reporting requirement in relation
to agreement of such quarterly
returns/statements with the books of account is not applicable to the Company.
(iii) (a) During the year, the Company has provided loans to companies as follows:
Particulars |
Loans |
Aggregate amount granted/ provided during the year to Subsidiary Companies |
Rs. 4,096 million |
Balance outstanding as at balance sheet date in respect of above case |
Rs. 1,260 million |
(b) The terms and conditions of the grant of the above-mentioned loans
to subsidiary companies are not prejudicial to the
Companys interest.
(c) The Company has granted the above-mentioned loan to subsidiary
companies where the schedule of repayment of principal
and payment of interest has been stipulated and the repayment or receipts are regular.
(d) There are no amounts of loans and advances in the nature of loans
granted to companies, firms, limited liability partnerships
or any other parties which are overdue for more than ninety days.
(e) There were no loans or advance in the nature of loan granted to
companies, firms, Limited Liability Partnerships or any other
parties which was fallen due during the year, that have been renewed or extended or fresh
loans granted to settle the
overdues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature of
loans, either repayable on demand or without specifying
any terms or period of repayment to companies, firms, Limited Liability Partnerships or
any other parties. Accordingly, the
requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, there
are no loans, investments, guarantees, and security in respect
of which provisions of section 185 are applicable. Further, according to the information
and explanations given to us, provisions
of section 186 of the Companies Act, 2013 in respect of loans, investments and,
guarantees, and security have been complied
with by the Company.
(v) The Company has neither accepted any deposits from the public nor
accepted any amounts which are deemed to be deposits
within the meaning of sections 73 to 76 of the Companies Act and the rules made
thereunder, to the extent applicable. Accordingly,
the requirement to report on clause 3(v) of the Order is not applicable to the Company.
(vi) 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) Company is regular in depositing with appropriate authorities undisputed statutory dues including goods and services tax,
provident fund, employees state insurance, income-tax, duty of
customs, 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.
According to the information and explanations given to us and based on audit procedures
performed by us, no undisputed
amounts payable in respect of these statutory dues were outstanding, at the year end, for
a period of more than six months
from the date they became payable.
(b) According to the records of the Company, the dues of income tax,
sales-tax, service tax, customs duty, value added tax and
cess and other statutory dues which have not been deposited on account of any dispute, are
as follows:
Name of the statute |
Nature of dues |
Amount (Rs. in million) |
Amount paid under protest (Rs. in million) |
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. |
- |
- |
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 |
8.66 |
8.66 |
AY 2010-11 |
High Court of Delhi 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 |
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 |
1,154.63 |
- |
AY 2012-13 |
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 |
3,381.39 |
- |
AY 2013-14 |
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 |
1,286.41 |
- |
AY 2014-15 |
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 |
2,063.07 |
- |
AY 2015-16 |
High Court of Delhi |
Name of the statute |
Nature of dues |
Amount (Rs. in million) |
Amount paid under protest (Rs. in million) |
Period to which the amount relates |
Forum at which the dispute is pending |
Finance Act, 1994 (Service Tax) |
Service Tax on incentives received from engine manufacturer and other equipment suppliers |
4,710.95 |
100 |
FY 2014- 15 (from October 2014) to FY 2017-18 (till June 30, 2017) |
CESTAT |
The Customs Act |
IGST (under customs) on import of certain aircraft parts and engine stand |
380.01 |
15.2 |
FY 2017-18 to FY 2021- 22 |
CESTAT and Commissioner of Custom (Appeals) |
The Customs Act |
Customs duty and penalty on import of aircraft engines |
481.20 |
- |
FY 2011-12 to FY 2012- 13 |
Supreme Court |
The Customs Act |
Customs Duty and Penalty demanded on netting off benefit and valuation of remnant ATF |
130.76 |
4.81 |
FY 2018- 19 to FY 2023-24 (till December 2023) |
CESTAT and Commissioner of custom (appeal) |
The Customs Act |
Demand for Cost Recovery Charges for transshipment |
5.97 |
5.97 |
FY 2018-19 to 2022-23 |
CESTAT and Assistant / Deputy Commissioner of Customs |
The Customs Act |
Penalty for non-filing/incorrect filing of EGM |
0.14 |
0.01 |
FY 2009-10 to 2020-21 |
Commissioner of Customs (Appeals) |
Central Sales Tax Act, 1956 & Maharashtra Value Added Tax, 2003 |
CST on sale of goods in an international flight |
7.85 |
0.95 |
FY 2012-13 |
Maharashtra Sales tax Tribunal |
Maharashtra Value Added Tax, 2003 |
Tax on inflight sales on international flights and denial of Input Tax Credit |
20.22 |
5.09 |
FY 2012-13, FY 2013-14, FY 2015-16, FY 2016-17, FY 2017-18 |
Maharashtra Sales tax Tribunal |
Mumbai Municipal Corporations Act, 1888 |
Octroi on import/inward movement of aircraft engine and engines stand into city of Mumbai for installation |
74.39 |
74.39 |
FY 2016-17 |
High Court |
Rajasthan Value Added Tax, 2003 |
Demand raised by AC of Commercial Taxes on account of mismatch in turnover and denial of Input Tax Credit |
0.13 |
- |
FY 2015-16 |
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 |
3.74 |
FY 2015-16 |
Karnataka Appellate Tribunal |
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 |
1.80 |
FY 2015-16 |
Karnataka Appellate Tribunal |
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 |
1.23 |
FY 2016-17 |
Karnataka Appellate Tribunal |
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 |
18,958 |
18,958 |
FY 2017-18 to FY 2024- 25 |
Supreme Court, High Court (Delhi),CESTAT and Commissioner of Customs (Appeals), ND/Bengaluru /Hyderabad/Chennai/ Mumbai |
Name of the statute |
Nature of dues |
Amount (Rs. in million) |
Amount paid under protest (Rs. in million) |
Period to which the amount relates |
Forum at which the dispute is pending |
Maharashtra GST Act, 2017 |
Demand on account of denial of ITC |
3.06 |
0.22 |
FY 2019-20 |
Joint Commissioner (Appeals) |
Andhra Pradesh Goods and Services Tax Act, 2017 |
Central and State Goods and Service Tax on various matters |
39.04 |
11.71 |
July 2017 to March 2019 |
Appellate Tribunal |
Delhi Value Added Tax Act, 2004 |
Denial of input tax credit on account of mismatch in sale reported by Suppliers |
1.01 |
- |
April 2012 to March 2013 |
Special Commissioner (Appeals) |
The Customs Act Uttar Pradesh GST Act, 2017 |
Penalty on incorrect IGST notification applied at the time of import Demand on account of reversal of ITC |
0.06 1.68 |
- 0.05 |
FY 2017-18 FY 2017-18 |
Additional Commissioner of Customs Additional Commissioner Grade-II Appeal |
Bihar GST Act, 2017 |
Demand on account of variance in outward supply |
1.13 |
0.05 |
FY 2017-18 |
Additional Commissioner of State Tax (Appeal) |
Odisha GST Act, 2017 |
Demand on account of denial of ITC |
3.61 |
0.33 |
FY 2017-18 |
Appellate Tribunal |
Odisha GST Act, 2017 |
Demand on account of denial of ITC |
106.49 |
10.45 |
FY 2018-19 |
Appellate Tribunal |
Andhra Pradesh GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
0.92 |
0.03 |
FY 2017-18 |
Appellate Authority |
Maharashtra GST Act, 2017 |
Demand on account of denial of ITC |
281.38 |
12.74 |
FY 2017-18 |
Joint Commissioner of Sales Tax (Appeal) |
Jharkhand GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
4.45 |
0.25 |
FY 2018-19 |
Additional Commissioner (Appeal) |
Andhra Pradesh GST Act, 2017 |
Central and State Goods and Service Tax on various matters |
17.25* |
- |
FY 2017-18 |
Commissioner Appeal |
Andhra Pradesh GST Act, 2017 |
Central and State Goods and Service Tax on various matters |
45.79* |
- |
FY 2018-19 |
Commissioner Appeal |
Andhra Pradesh GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
7.41 |
0.37 |
FY 2018-19 |
Additional Commissioner (ST) (Appeal) |
Goa GST Act, 2017 |
Demand on account of denial of ITC |
0.84 |
0.08 |
FY 2018-19 and 2020- 21 |
Additional/Joint Commissioner (Appeal) |
Andhra Pradesh GST Act, 2017 |
Demand on account of denial of ITC |
2.88 |
0.01 |
FY 2019-20 |
Commissioner Appeal |
Gujarat GST Act, 2017 |
Demand on account of denial of ITC |
150.32 |
7.46 |
FY 2018-19 |
Deputy Commissioner Appeal |
Punjab GST Act, 2017 |
Demand on account of denial of ITC |
5.12 |
0.24 |
FY 2018-19 |
Appellate Authority |
Bihar GST Act, 2017 |
Demand on account of variance in outward supply |
3.37 |
0.17 |
FY 2018-19 |
Additional Commissioner of State Tax (Appeal) |
Chhattisgarh GST Act, 2017 |
Demand on account of variance in outward supply |
27.47 |
1.38 |
FY 2019-20 |
Appellate Authority |
Gujarat GST Act, 2017 |
Demand on account of denial of ITC |
212.33 |
10.70 |
FY 2019-20 |
Deputy Commissioner Appeal |
Gujarat GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
246.79 |
- |
FY 2020-21 |
Assistant Commissioner of State Tax |
Kerala GST Act, 2017 |
Demand on account of denial of ITC |
1.71 |
0.15 |
FY 2019-20 |
Appellate Authority |
Bihar GST Act, 2017 |
Demand on account of variance in outward supply |
11.29 |
0.60 |
FY 2019-20 |
Additional Commissioner of State Tax (Appeal) |
Odisha GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
43.23 |
2.29 |
FY 2019-20 |
Additional Commissioner of State Tax (Appeal) |
Punjab GST Act, 2017 |
Demand on account of denial of ITC |
41.02 |
1.96 |
FY 2019-20 |
Appellate Authority |
Name of the statute |
Nature of dues |
Amount (Rs. in million) |
Amount paid under protest (Rs. in million) |
Period to which the amount relates |
Forum at which the dispute is pending |
Tamil Nadu GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
2.65 |
0.23 |
FY 2018-19 to 2020-21 |
Appellate Authority |
Uttar Pradesh GST Act, 2017 |
Demand on account of variance in outward supply |
3.11 |
0.14 |
FY 2018-19 |
Additional Commissioner Grade-II Appeal |
Delhi GST Act, 2017 |
Demand on account of variance in outward supply |
4.06 |
0.20 |
FY 2018-19 |
Appellate Authority |
Delhi GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
2,119.82 |
105.99 |
FY 2017-18 |
Appellate Authority |
Delhi GST Act, 2017 |
Demand on account of denial of ITC |
140.66 |
7.03 |
FY 2017-18 |
Appellate Authority |
Tamil Nadu GST Act, 2017 |
Demand on account of denial of ITC |
56.91 |
2.85 |
FY 2017-18, 2018-19, 2019-2020 |
Appellate Authority |
Haryana GST Act, 2017 |
Demand on account of denial of ITC |
0.11 |
0.01 |
FY 2017-18 |
Appellate Authority |
Uttar Pradesh GST Act, 2017 |
Demand on account of denial of ITC and variance in outward supply |
15.31 |
- |
FY 2020-21 |
Joint Commissioner |
InterGlobe Aviation Limited
*Demand amount includes interest levied upto date of SCN
(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax
assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii)
of the Order is not applicable to the Company.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or
financial institution or government or any
government authority.
(c) Term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of the
Company, no funds raised on short-term basis have been used
for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the
Company, the Company has not taken any funds from any entity
or person on account of or to meet the obligations of its subsidiary companies.
(f) The Company has not raised loans during the year on the pledge of
securities held in its subsidiary companies. Hence, the
requirement to report on clause 3(ix)(f) of the Order is not applicable to the Company.
(x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer (including debt
instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private
placement of shares /fully or partially or optionally
convertible debentures during the year under audit and hence, the requirement to report on
clause 3(x)(b) of the Order is
not applicable to the Company.
(xi) (a) No material fraud by the Company or no material fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of
the Companies Act, 2013 has been filed by cost auditor/
secretarial auditor or by us in Form ADT - 4 as prescribed under Rule 13 of Companies
(Audit and Auditors) Rules, 2014 with
the Central Government.
(c) We have taken into consideration the whistle blower complaints
received by the Company during the year while determining
the nature, timing and extent of audit procedures.
(xii) The Company is not a Nidhi Company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on
clause 3(xii) (a), (b) and (c) of the Order is not applicable to the Company.
(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) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of
the audit report, for the period under audit have been
considered by us.
(xv) The Company has not entered into any non-cash transactions with
its directors or persons connected with its directors and hence
requirement to report on clause 3(xv) of the Order is not applicable to the Company.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company.
Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted any Non-Banking Financial or Housing
Finance activities without obtaining a valid Certificate
of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act,
1934.
(c) The Company is not a Core Investment Company as defined in the
regulations made by Reserve Bank of India. Accordingly,
the requirement to report on clause 3(xvi)(c) of the Order is not applicable to the
Company.
(d) There is no Core Investment Company as a part of the Group, hence,
the requirement to report on clause 3(xvi)(d) of the
Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current and in the preceding financial year.
(xviii) There has been no resignation of the statutory auditors during
the year and accordingly requirement to report on Clause 3(xviii)
of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in note 46 to the
financial statements, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, our knowledge of
the Board of Directors and management plans and based on our examination of the evidence
supporting the assumptions read
together with emphasis in matter of our report of even date, nothing has come to our
attention, which causes us to believe that
any material uncertainty exists as on the date of the audit report that Company is not
capable of meeting its liabilities existing
at the date of balance sheet as and when they fall due within a period of one year from
the balance sheet date. We, however,
state that this is not an assurance as to the future viability of the Company. We further
state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within
a period of one year from the balance sheet date, will get discharged by the Company as
and when they fall due.
(xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund
specified in Schedule VII of the Companies Act (the Act), in compliance
with second proviso to sub section 5 of section 135
of the Act. This matter has been disclosed in note 38 to the financial statements.
(b) There are no unspent amounts in respect of ongoing projects, that
are required to be transferred to a special account in
compliance of provision of sub section (6) of section 135 of Companies Act. This matter
has been disclosed in note 38 to
the financial statements.
Annexure 2 referred in Paragraph 2(f) under the heading "report on
Other Legal and Regulatory Requirements"
of our Report of even date 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 with reference to
standalone financial statements of InterGlobe Aviation Limited ("the
Company") as of March 31, 2025 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
("ICAI"). 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 with reference to
standalone financial statements 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 with
reference to these standalone financial statements 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 with reference to these standalone financial statements and their
operating effectiveness. Our audit of
internal financial controls with reference to standalone financial statements included
obtaining an understanding of internal financial
controls with reference to these standalone financial statements, 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
Companys internal financial controls with reference to these standalone financial
statements.
Meaning of Internal Financial Controls With Reference to these Standalone Financial Statements
A Companys internal financial controls with reference to standalone
financial statements 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 controls
with reference to standalone financial statements
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 With Reference to these Standalone Financial Statements
Because of the inherent limitations of internal financial controls with
reference to standalone financial statements, 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 with
reference to these standalone financial statements
to future periods are subject to the risk that the internal financial control with
reference to these standalone financial statements 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, maintained in all material respects,
adequate internal financial controls with reference to standalone
financial statements and such internal financial controls with reference to standalone
financial statements were operating effectively
as at March 31, 2025, 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 issued by the
ICAI.
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