BS 2010-11 PDF

Air India Limited
Standalone Balance Sheet for period 01/04/2010 to 31/03/2011
[610000] General information about financial statements

Unless otherwise specified, all monetary values are in Millions of INR
01/04/2009
01/04/2010
to
to
31/03/2011
31/03/2010
Disclosure of general information about
company [abstract]
Disclosure of company information [abstract]
Name of company Air India Limited
Corporate identity number U62200DL2007GOI161431
Permanent account number of entity AACCN6194P
Airlines House, 113, Gurudwara Rakabganj Road, , New Delhi , Delhi ,
Address of registered office of company
DELHI , INDIA - 110001
Type of industry Commercial and Industrial
Disclosure of document information
[abstract]
Date of board meeting when final accounts
29/11/2011
were approved
Period covered by financial statements 12 MONTHS
Date of start of reporting period 01/04/2010 01/04/2009
Date of end of reporting period 31/03/2011 31/03/2010
Nature of report standalone consolidated Standalone
Content of report Balance Sheet
Description of presentation currency INR
Level of rounding used in financial
Millions
statements
Type of balance sheet Sources and Application of Funds [Vertical Format]
Type of cash flow statement Indirect Method
Disclosure of other general information
[abstract]
Date from which register of members
29/11/2011
remained closed
Date till which register of members
29/11/2011
remained closed
[630000] Disclosures - Directors report

01/04/2010
to
31/03/2011
Disclosure in board of directors report [text block] Textual information (1) [See below]
Details regarding management discussion and analysis Textual information (2) [See below]
Air India Limited Standalone Balance Sheet for period 01/04/2010 to 31/03/2011
Textual information (1)
Disclosure in board of directors report [text block]

Directors? Report 2010-11
The Directors have pleasure in submitting the Fourth Annual Report of the Company together with the Audited Accounts, Auditors? Report and
Comments of the Comptroller and Auditor General of India on the accounts, for the year ended 31 March 2011.
The Civil Aviation scenario globally and within India is analysed herein to give a brief background on the results of Air India Limited for the
financial year 2010-11.
1. CIVIL AVIATION SCENARIO
World
2010
IATA reported full year 2010 demand statistics for international scheduled air traffic that showed a 8.2% increase in the passenger business and a
20.6% increase in freight. Demand growth outstripped capacity increases of 4.4% for passenger and 8.9% for cargo. Average passenger load
factor for the year was 78.4% which is a 2.7% improvement on 2009. The freight load factor saw a 5.2% improvement to 53.8%.
Forecast highlights - 2011 :

Traffic : Passenger demand is expected to grow 4.4% and cargo demand is expected to increase 5.5%.
Yields : Yields are forecast to grow by 3% for passenger traffic and 4% for cargo.
Load Factors : Overall capacity (combined passenger and cargo) is expected to expand 5.8%. Due to schedule commitments and fixed costs,
capacity adjustments are expected to continue lagging behind the fall in demand, driving load factors down.
Fuel : The average oil price for 2011 is expected to be $110 per barrel.
IATA reported that during 2010 margins remain pathetic. With a 2.7% net margin in 2010 shrinking to 1.5% in 2011. Airlines will barely be
able to cover the cost of capital with the industry remaining fragile and balancing on a knife edge.
India
The aviation industry has emerged out of the global financial crisis at a steady pace and on the back of this, Indian aviation industry has also
shown high growth rates over the last few quarters. With significant capacity rationalization in the domestic aviation sector in the last two years
and strong passenger growth, capacity increase is well aligned to demand. International passenger carriage to/from India registered a growth of
10.3% and Domestic air traffic grew by 19% during 2010-11 compared to the same period last year. This compares to capacity increase of 11%
for the same period.
The international and domestic freight handled by Indian airports during 2010-11 increased by 17.7% and 23.7%, respectively when compared
with 2009-10.
The Indian aviation market continued its growth during the year under review at a steady pace. The growth of Indian economy was a major
trigger and the aviation market has been growing at a healthy two times multiple of the GDP growth. According to the DGCA, the Indian
domestic traffic for the year continued to show an impressive growth rate of 21%.
Passengers carried by domestic airlines during January-November 2011 were 55.03 million as against 46.80 million during the corresponding
period of previous year thereby registering a growth of 17.6%.
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India is expected to cross the 450 million mark of domestic passengers by 2020. During the last two decades, from a fleet of only about 100, the
scheduled operators now have reached 435 aircraft connecting the nation and the world.
Infrastructure:
In a bid to encourage regional airlines and provide air links to small cities and towns, nearly 25 no-frill and low-cost Greenfield airport projects
have been identified for development by various States. Planned in the tier-II or tier III cities, these airports would be developed in addition to the
Ministry of Civil Aviation?s ambitious modernization programme for 35 non metro airports and two major airports in Kolkata and Chennai. A
no-frill airport allows operation of small jets as well as slightly bigger aircraft like Boeing?s B737 or Airbus? A320.
The Government has taken various steps towards structural policy reforms and is coming out with new policies which are liberal and will
encourage public-private partnerships.
Airports Authority of India (AAI) has entered into Operation Management and Development Agreements (OMDA) with M/s Delhi International
airport Ltd for IGI Airport, Delhi with an objective to develop it into a world class airport. Phase I of the development of IGI airport has been
completed with the construction of the new Integrated Terminal 3. It caters to additional 34 million passengers per annum and can operate as a
hub. AAI has also announced that it will seek the Government?s clearance for its proposal to issue Rs.50000 million (USD 1.04 billion) worth of
infrastructure bonds to further develop 15 airports in the country.
The Vision 2020 announced by the Ministry of Civil Aviation conceives of building infrastructure to support 280 million passengers.
2. REVIEW OF PERFORMANCE ?HIGHLIGHTS
2.1 Review of Company?s Performance :
2.2 Financial Performance:
The financial performance of the Company during the year 2010-11 was as under:
(Rupees in Million)
Particulars 2010-11 2009-10
(51735.7) (41621.4)*
Profit/(Loss) before Depreciation & Tax
16901.0 13887.6*
Less: Depreciation
Profit/(Loss) before tax
(68636.7) (55509.0)
Less: Provision for Tax
15.0 15.4
Add : Deferred Tax Benefit
- -
Net Profit/(Loss)
(68651.7) (55524.4)
* Figures Restated
2.3 Physical Performance :
Particulars Unit 2010-11 2009-10
3
ASKMs(Scheduled Services) Million 45608 44723
ASKMs (Total) Million 46123 45748
PKMs (Scheduled Services) Million 30168 28965
PKMs (Total) Million 30448 29448
ATKMs(Scheduled Services) Million 6322 6053
ATKMs (Total) Million 6381 6179
RTKMs (Scheduled Services) Million 3677 3533
RTKMs (Total) Million 3700 3576
Passenger Load Factor % 66.1 64.8
Overall Load Factor % 58.2 58.4
No.of Pax Carried (Scheduled Services) Million 12.78 11.75
No.of Pax Carried (Total) Million 13.08 11.97
Freight Carried Tonnes 174466 154752
Aircraft Utilisation(per aircraft) Rev.Hrs. 3448 3511
Total Revenue Hours Flown No. 391401 359778
3. OTHER FINANCIAL INFORMATION
3.1 Share Capital
Authorised Share Capital
The Authorised Share Capital of the Company is Rs.50,00,05,00,000/- divided into 5,00,00,50,000 equity shares of Rs.10/- each.
Issued, Subscribed & Paid-up Share Capital
The Issued, Subscribed & Paid-up Share Capital of the Company, is Rs.2,145,00,00,000/- divided into 2,145,0,00,000 fully paid up equity shares
of Rs.10 each. During the year 2011-12, Government of India infused Rs.12000 million towards equity capital.
3.2 Aircraft Project Loans :
As on 31 March 2011, the position of aircraft loans, including future lease obligations in respect of finance leases, was as under :
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(Rupees in Million)
Total Loan due as on 1 April 2010 1,98,801
Add : Amount drawn during April 2010 to March 2011 22,939
Less : Amount repaid during April 2010 to March 2011 14,954
Less : Exchange adjustments due to revision in rates of Currencies (1,003)
Add : Interest accrued and due as on 31 March 2011 1,098
_______
Balance as on 31 March 2011 2,06,881
3.3 Annual Plan Outlay 2010-11
The Government had approved an Annual Plan Outlay of Rs. 56,348.0 million (including Rs.12,000.0 million for equity infusion) for
the year 2010-11. Against this outlay, the actual expenditure for the year was Rs.34,189.6 million (including Rs.12,000.0 million for equity
infusion) as detailed below :
(Rupees in Million)
Approved Actual
Aircraft Projects
Payment to aircraft/spare engine manufacturers 39,463 18,153
Interest to be Capitalised 2,515 1,356
Non-Aircraft Projects
Other capital expenditure 2,370 2,680
Equity infusion by Government of India 12,000 12,000
TOTAL PLAN OUTLAY 56,348 34,190
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Due to the slippage in delivery of B787-8 aircraft, no advance payments were made to Boeing during 2010-11.
3.4 Annual Plan Outlay 2011-12
The Annual Plan Outlay for the year 2011-12 is Rs.57,493.6 million including Rs.12,000.0 million for equity infusion from Government. The
Company has spent Rs.14,595.5 million upto September 2011.
Due to further slippage in delivery of B787 aircraft from June 2011, as estimated at the time of formulation of Annual Plan 2011-12, to January
2012, no delivery/advance payments were made during the half year ended September 2011.
3.5 Twelfth Five Year Plan ? 2012-13 to 2016-17 :
Air India has submitted an outlay of Rs.329,637.0 million for the Twelfth Plan period as detailed below
(Rupees in Million)
Aircraft Projects 111,877
Non-Aircraft Projects 18,650
Budgetary support from Government 199,110
Total Plan Outlay 329,637
Approval from the Ministry of Civil Aviation is awaited.
4. STATUTORY COMPLIANCE
The following are the wholly owned subsidiaries of the Company :
Air India Air Transport Services Limited
Air India Charters Limited
Air India Engineering Services Limited
Airline Allied Services Limited
Hotel Corporation of India Limited
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IAL Airport Services Limited *
Vayudoot Limited
* The name of the Company was struck off the Register of the Registrar of Companies and the company stands dissolved with effect from 25
March 2011.
5. DIRECTORS? RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirm :
that in the preparation of the annual accounts, the applicable accounting standards have been followed and wherever there are
deviations, necessary disclosures have been given; that the selected accounting policies were applied consistently, other than disclosed in the
Notes to Accounts, and the Directors made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company as at 31 March 2011 and of the profit or loss of the Company for the period ended on that date; that proper and
sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and that the annual accounts have
been prepared on a ? going concern? basis.
6. INDUSTRIAL RELATIONS
Relations with the work force generally continued to be cordial during the year 2010-11 barring an agitation by the Indian Commercial Pilots?
Association (ICPA) representing line pilots of erstwhile Indian Airlines Limited for various demands including disparity in working conditions
and emoluments between erstwhile Indian Airlines and erstwhile Air India Pilots, from 27 April 2011 until 6 May 2011.
A number of flights were cancelled/combined and company had to immediately stop booking tickets on its flights as well as curtail flight
schedule. Even out of the curtailed schedule, 50% flights had to be cancelled. The flash strike caused serious inconvenience and harassment to a
large number of our esteemed passengers besides causing revenue loss to the Company.
The Management took a serious view of the above action and services of 6 Line Pilots and 3 Executive Pilots were terminated. Further, on
account of violation of terms of recognition, the recognition of ICPA was withdrawn and seven pilots were placed under suspension.
In order to resolve the matter, meetings were held by ICPA with the Officials of Ministry of Civil Aviation from 4 to 6 May 2011. In terms of the
Minutes of the Meeting, recognition of ICPA was restored and letters of termination issued to the terminated pilots were withdrawn, suspension
revoked and all terminated and suspended pilots joined back duties. Due to this normalcy was restored in all regions with effect from 6 May
2011. During this period, the Company was able to operate 10% of its scheduled domestic operations resulting in reduction of capacity and loss
of revenue and goodwill.
7. CORPORATE SOCIAL RESPONSIBILITY
7.1 Environment Protection
In keeping with the resolution to reduce fuel cost, bring down operating costs and strong commitment to go GREEN, Air India signed a 5 year
franchise agreement with Pratt & Whitney (P&W) to become the first and sole authorized service provider of EcoPower Engine Wash Service in
India . The EcoPower Engine Wash System is a new generation equipment and the only one of its kind that is designed and patented by P&W to
clean aircraft engine gas path in Line Maintenance. The System is used to effectively clean the engine gas path that results in a reduction of fuel
burn leading to reduction in carbon emissions. Further, Engine Exhaust Gas Temperature decreases by as much as 8-12 degrees, which in turn
leads to increased engine on-wing life. Thus, EcoPower Wash provides a safe and environmentally responsible solution.
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February 12-18, 2011 was celebrated as Green Productivity Week.
Fuel Savings
Actual fuel savings achieved from September 2008 to August 2011 is 177 million Kgs thereby saving Rs.6936.1 million.
Emission Reduction
A total carbon dioxide saving of 558 million Kgs was achieved from September 2008 to August 2011.
Environment Management System
Corporate-wide Environment Management System Policy has been signed and various initiatives were introduced for reducing Carbon Dioxide
emission, initiating tree plantation, commencing introduction of Document Management System to reduce use of paper in office.
EU-ETS
Various procedures were adopted in operational areas helped the Company reduce carbon emissions. The European Union Trading Scheme
(ETS) had mandated for the aviation industry that all flights with origin or destination in the European Union would have to be necessarily
covered by the Scheme. Air india submitted the ETS required plans for the annual emission and tonne kilometer monitoring in August 2009.
Air India has successfully cleared the EU-ETS Audit and verification process, which was conducted by M/s Bureau Veritas (EU accredited
verifier) from 22 March to 25 March 2011. The verification report and data was submitted to the Environment Agency of UK on 31 March 2011.
7.2 Encouragement/assistance to small scale industrial units
In accordance with the Government guidelines issued from time to time, the Company continued to support the SSI units/Social
Welfare/charitable organisations. The procurement from SSI units during the year amounted to approximately Rs.70.5 million and the selective
sourcing/procurement from social/charitable organisations amounted to Rs.0.03 million.
8. OFFICIAL LANGUAGE IMPLEMENTATION
In order to monitor progressive use of Hindi in the Office, meetings of 57 Official Language Implementation Committees constituted on all India
level were held regularly.
In order to facilitate officers/employees in doing their official work in Hindi, 2 Hindi workshop training programmes were organised. 31
officers/employees were trained in these training programmes. Further, 26 employees were trained in Hindi Language (Praboth & Praveen).
The Ministry of Civil Aviation carried out inspections of Srinagar, Goa, Coimbatore, Leh, Raipur, Lucknow, Nagpur and Varanasi stations.
During this period, Official Language Department of the Company also carried out inspection of 7 stations and 16 departments.
Mrs Praveena Sabnees, Security Officer was honoured with the ?Aashirwad Rajbhasha Samman? for doing excellent work and dedication towards
the progressive use of Hindi in day-to-day work at the 19 th Rajbhasha award function 2010 organised by a well known literary, socio-cultural
organization ?Aashirwad? of Mumbai.
New Passenger Service System (PSS) has been made available in which facility to book a ticket in Hindi has also been provided through net. In
India, Air India is the only airline which has provided this facility.
?Vimanika? was awarded first prize by the Secretary, Ministry of Civil Aviation (MOCA) in the Official Language Implementation Committee
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Meeting held on 23 December 2010, under the category of Hindi magazines published by subordinate organizations of the MOCA.
9. IMPLEMENTATION OF RESERVATION POLICY :
The Reservation Policy has been implemented as per the Presidential Directives issued in the year 1975, along with the revised Directives
effective 1991 and 1996.
SC/ST/OBC ? Number of employees as on 31 March 2011
Total No. of Total No. of SC % of SC Total No. of ST % of ST Total No. of OBC % of OBC
employees employees employees employees employees employees employees
28085
6146 21.88 2055 7.32 1382 4.92
10. CORPORATE GOVERNANCE
The Company?s Corporate Governance philosophy was to continuously strive to attain higher levels of accountability, transparency,
responsibility and fairness in all aspects of its operations. The Company remained committed towards protection and enhancement of overall long
term value for all its stakeholders ? customers, lenders, employees and the society. The Company also acknowledges and appreciates its
responsibility towards the society at large and has embarked upon various initiatives to accomplish this.
During the year under review, the Company continued its pursuit of achieving these objectives through the adoption of competitive corporate
strategies, prudent corporate and business policies and plans, strategic monitoring and mitigation of risks, while at the same time, creating
checks and balances in an organization that values people, propriety, equity and fair play. The Company follows sound business practices and
conducts its business in a transparent manner. The Company remained committed towards ensuring observance of Corporate Governance
principles in all its dealings.
Integrity Pact Programme was implemented effective 8 February 2008. It has been made mandatory to incorporate Integrity Pact in respect of all
contracts with a value of Rs.100 million and above.
11. AUDIT COMMITTEE
As part of the Corporate Governance process and following the policy of ensuring transparency, accountability, integrity and compliance of
various laws, the Company constituted the Audit Committee of the Board in November 2007. The Audit Committee met three times during the
year to review various issues including inter alia annual accounts of the Company for the year before submission to the Board.
As on 31 March 2011, the following were the Members of the Audit Committee :
Shri Harshavardhan Neotia Chairman
Shri E.K.Bharat Bhushan Member
Shri Prashant Sukul Member
Shri Arvind Jadhav Permanent Invitee
Director-Finance Special Invitee
ED-Internal Audit Special Invitee
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The terms of reference of this Committee are:
v To consider the appointment of the External Auditor, Audit Fee & all matters relating thereto ;
v To discuss with the Auditor before the audit commences the nature & scope of the audit and to ensure co-ordination where more than
one audit firm is involved;
v To review the half yearly and annual financial statements before submission to the Board ;
v To review the Statutory Auditor?s Report, Management?s response thereto and to take steps to ensure implementation of the
recommendations of the Statutory Auditors ;
v To review the Company?s Statement on Internal Control Systems prior to endorsement by the Board ;
v To review the Internal Audit programme and ensure co-ordination between the Internal & External Auditors as well as determine
whether the Internal Audit function is commensurate with the size and nature of the Airlines Business and to consider any other matter as desired
by the Board ;
12. BOARD OF DIRECTORS AS ON 31 MARCH 2011
Shri Arvind Jadhav Chairman & Managing Director
Shri Anup K. Srivastava Director (Personnel)
Smt. Anita Khurana SBU Head (Cargo)
Shri V. K. Sharma SBU Head-MRO (Eng. & Comp.)
Shri K. M. Unni SBU Head-MRO(Air Frame)
Shri S. Chandrasekhar Director (Finance)
Shri Harshavardhan Neotia Managing Director, Bengal Ambuja Housing Development Limited
Air Chief Marshal Fali H. Former Chief of Air Staff, Indian Air Force
Major (Retd.)
Shri Yusuffali M A Managing Director, EMKE Group
Shri E. K. Bharat Bhushan Addl. Secretary & Financial Advisor, Ministry of Civil Aviation
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Shri Prashant Sukul Jt. Secretary, Ministry of Civil Aviation
With effect from 12 August 2011, Shri Rohit Nandan was appointed Chairman & Managing Director of the Company vice Shri Arvind Jadhav.
During the year Shri Amod Sharma, Shri Anand Mahindra, Dr Amit Mitra ceased to be Directors effective 1 February 2011, 9 March 18 th
March 2011, respectively.
Shri Anup Srivastava and Smt Anita Khurana ceased to be a Directors effective 22 June 2011 and 14 July 2011, respectively.
Shri S Chandrasekhar retired from the services of the Company effective 31 August 2011.
The Board places on record its appreciation of the valuable services rendered by Shri Arvind Jadhav as Chairman & Managing Director and
S/Shri Amod Sharma, Anup Srivastava, Anand Mahindra, S Chandrasekhar, Dr Amit Mitra and Smt Anita Khurana during their tenure as
Directors of the Company.
The Board met 9 times during the year 2010-11 to discuss issues of vital significance for the airline including inter alia turnaround plan &
financial restructuring plan, operationalisation of Ground Handling and MRO subsidiaries, Commercial Transformation Project, revision of
gratuity ceiling, implementation of SAP-ERP, MRO Joint Ventures, Budget - 2010-11, B787 induction and compensation claim, aircraft
financing, working capital requirements of the Company, increase in overall borrowing limits, MOU/wage agreements with unions, leasing of
A320/A330 aircraft, disposal of A320 grounded aircraft, extension of AISATS joint venture to other airports, employees? service regulations,
sports policy, rearrangement of authorised share capital, bridge loan facility for aircraft financing, recruitment and promotion rules, introduction
of the new Passenger Service System, equity infusion by Government, etc.
13. COMMENTS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA
The comments of the Comptroller and Auditor General of India under Section 619(4) of the Companies Act, 1956 on the accounts of
the Company for the year ended 31 March 2011 and the reply of the Management are annexed to this report.
14. PARTICULARS OF EMPLOYEES
Information in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars
of Employees) Rules, 1975 as amended, is set out in the Annexure to the Directors? Report.
15. AUDITORS
M/s Kapoor Tandon & Co., Mumbai, M/s P K Chopra & Co., New Delhi, M/s R Devendra Kumar & Associates, Mumbai and M/s P K K G
Balasubramaniam & Associates, Chennai were appointed Joint Statutory Auditors for the year 2010-11 by the Comptroller & Auditor General of
India.
16. CAUTIONARY STATEMENT
Statement in the Management Discussion and Analysis describing the Company?s objectives, projections, estimates, expectations may be
?forward-looking? statements within the meaning of applicable laws and regulations. Actual results may differ materially from those
expressed or implied. The important factors that could make a difference to the Company?s operations include economic conditions affecting
demand/supply, global economic condition and pricing in the domestic and overseas markets in which the Company operates, changes in the
Government policies, regulations, tax laws and other statutes and other incidental factors. Fuel is a major determinant of the airline?s
profitability constituting nearly 35% of its total costs and any major variation in its prices could impact the airline?s profitability. Besides this,
global and economic factors like slowdown, liquidity crisis in the global markets, geo-political conditions and stability, exchange
fluctuations in the US dollar in which most of the debts/expenses of the Company are denominated could also influence the airline?s performance.
17. ACKNOWLEDGEMENTS
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The Board sincerely appreciates the Company?s valued customers in India and abroad for using the services of the Company and looks
forward to their continued support and confidence. The Board also expresses its deep sense of appreciation for the sincere and
devoted service rendered by the employees of the Company at all levels.
The Board also gratefully acknowledges the support and guidance received from various Ministries of the Government of India, the Ministry of
Civil Aviation in particular, in Company?s operations and development plans. The Board expresses its gratitude to the DGCA, Comptroller and
Auditor General of India, Ministry of Finance, Ministry of Corporate Affairs, the Statutory Auditors, Airports Authority of India, other
Government Departments, Airlines, Agents, Oil Companies, Reserve Bank of India, Indian and International Financial Institutions and Banks
including the EXIM Bank, USA and Kfw Bank.
For & on behalf of the Board
Sd/-
(Rohit Nandan)
Chairman & Managing Director
Place : New Delhi
Date : 29 December 2011
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Details regarding management discussion and analysis

MANAGEMENT DISCUSSION & ANALYSIS REPORT 1. ANALYSIS OF THE FINANCIAL/PHYSICAL PERFORMANCE I. REVENUE :
v Total revenue increased from Rs.130556.8 million last year to Rs.142551.1 million (an increase of Rs.11994.3 million) v Operating Revenue
was Rs.139743.9 million as against previous year?s revenue of Rs.127620.3 (increase of Rs.12123.6 million) v Passenger Revenue increased
from Rs.91502.2 million last year to Rs.104438.2 million (an increase of Rs.12936.0 million) which was mainly due to increase in yield per PKM
from 3.16 to 3.46 and increase in Passenger Load Factor from 64.8 to 66.1. II EXPENDITURE : v The total expenditure incurred during the year
was Rs.213196.5 million as compared to the previous year?s figure of Rs.186892.4 million (an increase of Rs.26304.1 million). v Operating
expenses increased from Rs.162330.5 million to Rs.179959.1 million (an increase of Rs.17628.6 million) mainly due to the following : Increase
in fuel price by Rs.10970.3 million i.e. 21.9% Increase in Booking Agency Commission by Rs.2135.4 million Increase in interest on aircraft
loans by Rs.4082.4 million due to induction of new aircraft Increase in interest on working capital loans by Rs.4533.1 million Increase in
depreciation by Rs.3013.4 million Increase in wage provision due to implementation of Gratuity Provision by Rs.2950.0 million Increase in
obsolescence and bad & doubtful debts 2. MEASURES TO IMPROVE PERFORMANCE 2.1 Network Vision v Hubs Delhi has been established
as Air India?s primiary hub effective from Winter?10 Schedule. Currently, Air India offers a total of 610 weekly flights and 1,05,600 weekly
seats from Delhi to 21 international destinations and 44 domestic destinations. The Hub at T-3 provides for a flawless integration of international
and domestic operations so as to provide passengers with a seamless, integrated experience. The Hub operations at Delhi have given rise to about
3000 transfer passengers per day which include sixth freedom traffic generated notably between Bangkok/Kathmandu and Europe/UK. v Central
Planning & Control System (CPCS) In early 2010, Air India signed a broad ranging agreement for establishing its Central Planning and Control
IT System (CPCS). M/s Sabre Airline Solutions who are industry leaders in this field were selected as system provider for a range of integrated
state of the art systems which cover Network Planning & Scheduling, Flight Operations Control (including integrated Operations Management &
Hub Management) and a comprehensive Crew Management System. In the Planning and Scheduling suite, out of the total 5 modules, 4 modules
have been implemented and are being used. The modules and their current status is as under : v Schedule Manager is being used extensively by
our Scheduling Team. The Schedules of Air India and Air India Express, the wholly owned subsidiary company, are being published through
Schedule Manager and regular changes are being updated and provided to the Passenger Service System (PSS) for updating the reservation
system. v Slot Manager is being used to monitor and manage slots. It is being used by the Scheduling Team at the slot co-ordination meetings
which are held twice every year. v Fleet Manager is an optimization tool, which helps in optimal fleet assignments for a given schedule. It has
already been used on the narrow body fleet. With the implementation of single code, the process is being re-defined to source the input data for
the entire fleet. v Codeshare Manager is mainly used for codeshare synchronization. The AI-LH codeshare testing has been completed. v The final
module Profit Manager is to be implemented. Process has been initiated to procure the source data for the market sizes (at origin-destination
levels), which is required for the calibration of Profit Manager. The Profit Manager module has the capability of providing demand forecasts at
city-pair/flight-leg levels and estimating the revenues and costs for a planned schedule. 2.2 Plans to turnaround performance : Several measures
were undertaken to improve the performance of the Company : Rationalization of certain loss making routes. Return of leased aircraft. Induction
of brand new fleet on several domestic & international routes thereby increasing passenger appeal. Introduction of non-stop services to USA &
Canada. Phasing out old fleet and consequent reduction of maintenance cost. Reduction of contractual employment & outsourced agencies.
Critical analysis of Fuel consumption on all flights by setting up a Fuel Council and Fuel Manager. Implementation of the recommendations made
by IATA Group of Fuel Efficiency Gap Analysis (FEGA). Setting up of an Integrated Operational Control Centre (IOCC) in Delhi for close
monitoring of the turnaround time of various aircraft in the fleet to optimize aircraft utilization. Curtailment of overtime and certain staff perks
and relocation of officers from abroad to India. Closure of some foreign stations including offline offices. Increase in passenger, cargo, excess
baggage revenue through aggressive sales & marketing strategy including a separate Cell for attracting Government traffic. Leveraging the assets
of the company to increase MRO revenue as well as revenue from real estate properties. Introduction of Common Code through a common
Passenger Service System (PSS) effective 27 February 2011 which would ensure seamless connectivity on domestic & international flights.
Implementation of Quickwin IT Solutions including upgrade of Revenue Management System, introduction of SAP-ERP throughout the network.
Establishment of Hub Control & Networking / Crew Scheduling System. Deferment of B777-300 aircraft deliveries. Cabinet Note on
Operationalization of Subsidiary Companies like AIATSL & AIESL and hiving-off the GH & Engineering / MRO activities to these Subsidiary
Companies including at certain location to AI SATS JV, submitted to the Ministry. Shifting of the Hub from FRA to DEL T3, the state-of-art
technology airport effective Winter 2010 . Upgradation of FFP and Introduction of several marketing initiatives including Companion Free
Schemes, Apex fare, GOI packages, Preferred Agents Partnership, Promotion of web bookings and other promotional schemes like AI Holidays,
etc. 2.3 Infusion of Additional Equity- Linked to the Turnaround Plan of the Company: In an attempt to adequately capitalize the Company and in
anticipation of Government induction of equity into the capital of the Company, Air India had increased its authorised capital during the year
2011-12 to Rs.110000 million comprising of 11000 million equity shares of Rs.10/- each. The Turnaround Plan (TAP)/Financial Restructuring
Plan (FRP) of Air India was submitted to the Group of Ministers (GoM) in the meeting held on 22 June 2011. The GoM after consideration of the
same, directed that a Group of Officers (GoO) from the Ministry of Finance will examine the TAP/FRP and come up with recommendations
within a specified period of time. The TAP/FRP was prepared by the Company in consultation with SBI CAPS which was independently vetted
by M/s Deloitte. Subsequently, a Committee headed by Special Secretary Expenditure was formed by the Ministry of Finance to review the
TAP/FRP submitted by Air India. The GoO presented its report to the GoM on 28 October 2011. The report recommended a scenario which
envisages a moderated growth scenario wherein the fleet strength of Air India would be 157 and those of the subsidiaries 76 in the Financial Year
2019, the net addition to come mainly through leasing. Committee has also prescribed various milestones for induction of equity wherein the
Passenger Load Factor to be attained by Air India would be 73% by Financial ear 2015 and 75% by 2020, the airline would be EBIDTA positive
by 2013, cash profits positive by 2018 and PBT and net worth positive by 2020. The report also envisages an upfront support of equity infusion
by Government of India in order to provide immediate relief of Rs.67500 million in Financial Year 2012 (including Rs.12000 million provided in
the Union Budget), infusion of equity to fund cash deficits upto Financial Year 2021 of Rs.45520 million, equity infusion to fund the principal
and interest repayments in respect of guaranteed aircraft loan ? Rs.189290 million subject to achievement of milestones. The total equity support
requested for would amount to Rs.302310 million upto Financial Year 2021. Besides this, Government would also provide a buy back guarantee
for Cumulative Redeemable Preference Shares (Financial Year 2027-2032) of Rs.74080 million. The FRP also involves regulatory forbearance
from RBI in respect of restructuring and provisioning for which SBI have taken up the issue with RBI. GoM has stated that the recommendation
made by the GoO under the Moderated Growth Scenario may be accepted. RBI?s firm views and regulatory forbearance of the TAP & FRP has
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been obtained following which the recommendation made by GoM is being processed for consideration by the Cabinet. The lenders have
requested certain further conversions in the provisioning requirements which have been taken up with RBI. The FRP is planned to be completed
before middle of March 2012. The Company has received Rs.12000 million towards equity investment for the year 2011-12. 2.4 Product
Development a) Premier Clubs The Flying Returns Programme has four levels of membership viz. Base, The Silver Edge Club, The Golden Edge
Club and the Maharajah Club. Currently the club memberships are open members globally : The Maharajah Club (TMC) The Maharajah Club is
the highest Tier in the Flying Returns Programme. Membership of this Club is on the basis of earning 75,000 miles in a span of twelve months.
Members may also be invited to join the Club on the basis of their status. Membership of the Club entitles members to enhanced privileges which
are : 30% bonus mileage points, additional baggage allowance, priority check-in, priority confirmation from the waitlist and lounge access at
select airports. The membership base as on 31 August 2011 was 4037. Golden Edge Club (GEC) The Golden Edge Club is the second highest
Tier in the Flying Returns Programme. Membership of this Club is on the basis of earning 50,000 miles in a span of twelve months. Members
may also be invited to join the Club on the basis of their status. Membership of the Club entitles members to enhanced privileges which are : 25%
bonus mileage points, additional baggage allowance, priority check-in,priority confirmation from the waitlist and lounge access at select airports.
The membership base as on 31 August 2011 was 27153. Silver Edge Club (SEC) The Silver Edge Club is the third highest Tier in the Flying
Returns Programme. Membership of this Club is on the basis of earning 25,000 miles in a span of twelve months. Members may also be invited to
join the Club on the basis of their status. Membership of the Club entitles members to enhanced privileges which are : 10% bonus mileage points,
additional baggage allowance and priority check-in. The membership base as on 31 August 2011 was 28321. b) Flying Returns Programme
Flying Returns Programme is designed to recognise and reward frequent flyers of Air India. The benefits and privileges of Flying Returns include
: v Increased check-in baggage allowance, tele check-in, personalized check-in counters at select airports, priority for confirmation from the
waitlist, priority baggage handling, pooling of mileage points and wide array of special offers. v Apart from earning and redeeming on Air India,
members can also earn and redeem on our airline partners - Lufthansa German Airlines and Singapore Airlines. v Members can accrue miles
while traveling on select flights of our code share partner airlines. v Members can transfer reward points from our non-airline partners to Flying
Returns. v Non-airline partners are American Express, Standard Chartered, HDFC Bank, the Hong Kong Shanghai Banking Corporation (HSBC),
ITC Welcome Group, Emirates Bank Group, Barclays Bank, SBI Cards, Citibank, Kotak Bank and ING Vysya Bank. The membership base as on
31 August 2011 was 8,65,270 as under: Region India Overseas Premium Clubs 5,20,759 2,85,000 59,511 Total 8,65,270 The highlights of Flying
Returns Programme are as follows : Membership extended worldwide Update profile details online Claim missing miles online Redeem miles
online at www.flyingreturns.co.in No redemption threshold limit for redemption tickets Purchase miles at Re.1 per mile on shortfall of
redemption 2.5 Marketing initiatives : Companion Free Scheme Domestic Passengers traveling on full Economy/Executive/First Class fares could
take accompanying spouse/child/parent free of cost in the same class and flight, while traveling on domestic sectors by paying Passenger Service
Fee/User Development Fee on free tickets. International (IATA Fares) : The offer was valid for travel between the following countries: India -
USA/Canada/UK/Europe (valid in both directions) Travel originating ex India to Tokyo/Osaka/Shanghai/HongKong/Singapore/Bangkok/Middle
East Special Companion Free Scheme The Special Companion Free Scheme was launched whereby passengers buying a ticket on the highest
market fares in First/Executive Class between India and all international destinations, without any incentive, would be entitled to a companion
ticket at 50% of the same fare. All applicable taxes/surcharges would be payable by the companion. This scheme was not valid in First Class on
the non-stop New York flights. Preferred Agent Programme (PAP) The PAP which was launched in 2009-10 was amended in 2010-11. While in
2009-10, the agents were incentivised on achieving a growth in market share on Air India, in the current year, the agents were incentivized on
achieving a growth in total productivity on Air India. Corporate House Scheme A revamped Corporate House Scheme was launched under which
tie-ups are done with corporates for targeted volume of yearly travel undertaken by them on AI/IC/CD coded flights. Incentives by way of credit
of a given percentage on the volume of agreed business are given to the corporates and the incentive amount credited to the corporate is used for
purchasing tickets on AI/IC/CD coded flights. With a view to reduce our distribution costs and encourage corporates to ticket directly with Air
India, a cut and pay incentive scheme on domestic sectors was launched for corporates whereby corporates with a travel potential of over Rs.10
million were provided a direct connectivity to our Website for direct booking/ticketing, where they would be able to avail of a discount of 20%.
Online Travel Portals (OTAs) Recognising the importance/growth of OTAs in India, a special segment-wise basket scheme was offered to major
B2C portals in India whereby agents were incentivized on selling targeted number of segments on Air India. From 1 July 2010 to 31 December
2010, a segment based scheme was offered to all OTAs for domestic sale only whereby FOC tickets were offered to agents based on number of
segments sold by them. For international sale, eligible OTAs were offered the applicable Preferred Agent Programme. Seamen Fares Seamen
fares were introduced for ticketing throughout the network. Special Incentives Special incentives were offered to the travel agents for promoting
West Bound sectors aggressively. E-Commerce In order to promote online bookings and thus reducing distribution costs, upto 10% discount on
the basic fare has been offered on all sales through Air India Website upto March 2012. Additionally, Frequent Flyers earned 500 additional
mileage points on every online booking made by them for self travel. Due to increase in fraudulent bookings made online, resulting in dispute in
payments, a fraud prevention tool was integrated with E Billing Solutions (EBS) in June 2010. Cutover to the new merged IBE on 26 February
2011 and launching of the website in Hindi. Online rebooking and cancellation module introduced for bookings made for Domestic travel
through the Air India website effective 26 February 2011. Integration with the Octopus website for making Hotel reservations online. Other
ancillary services like weather and city information, passport/visa information, currency convertor and health requirements can also be accessed
through the corresponding Octopus links provided on the website. Integration with ?Car Trawler? for Car reservations online. Online
redemption of FFP miles introduced on 26 February 2011. Mobile check in facility started effective 07April11. Ad word campaign with google
analytics to generate information and statistics on area wise web sales. 3. FUTURE STRATEGY : TURNAROUND PLAN/GOING CONCERN
The main vision of the turnaround plan was to make Air India the leader in Indian aviation and India's ambassador to the world. The corporate
mission is to deliver the highest quality of service around the world and be the epitome of Indian hospitality and to be India's flag carrier and
provide seamless travel within India and the world. A Turnaround Plan (TAP) was approved by the Board in July 2010 and SBI CAPS were
appointed as the Lead Banker for the restructuring of the working capital loans. The TAP was vetted by an Independent Aviation Consultant, M/s
Deloitte and certain modifications were carried out in the TAP to bring it in line with market realities for parameters like growth, yield and load
factors. The TAP/Financial Restructuring Plan (FRP) was submitted to the Ministry of Finance and the Group of Ministers reviewed the same in
the meeting held on 22 June 2011 and appointed a Group of Officers from the Finance Ministry to vet the TAP/FRP. The FRP envisages upfront
equity induction of Rs.67500 million in Financial Year 2011-12 and conversion of approximately 60% working capital to long term loan
(Rs.110000 million) and the balance (Rs.75000 million) into Cumulative Redeemable Preference Shares which would be repayable after 15 years
guaranteed by the Government of India (GOI). The restructuring of the working capital would bring interest relief to the extent of Rs.10000
million in the initial year. Besides this, the refinancing of certain high cost aircraft loans has already brought a relief to the extent of Rs.2000
million. The Group of Officers (GoO) from Ministry of Finance, examining Air India?s TAP/FRP have also prescribed various milestones for
induction of equity by Government of India. Under the scenario recommended by the GoO, the airline would be EBIDTA positive by 2013, cash
positive by 2018 and PBT & Networth positive by 2020. Based on this TAP and Government of India support in the form of equity, the
Management has prepared the accounts on ?Going Concern? basis. 4. HIGHLIGHTS Awards & Recognition Air India was ranked as the Most
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Trusted Airline in the country in 2010, as per the prestigious Economic Times Brand Equity survey for the fifth consecutive year. Air India was
also ranked 28th in the list of top 50 service brands, ahead of leading banks, insurance companies, food chains and airlines. Air India was awarded
Asia?s leading Airline in Economy Class and India?s leading Airline at the World Travel Awards Asia & Australasia Gala Ceremony 2011 held
at Bangkok on 28 September 2011. Air India was awarded the Earth Care Award ? 2011 for Excellence in climate change mitigation and
adaptation, in the category for Large Scale Enterprises from the JSW Foundation and Times of India, in association with Centre for Environment
Education, on 9 September 2011. 5. REVENUE GENERATION THROUGH OTHER SERVICES 5.1 Engineering Department Engineering and
Engine Overhaul have earned Rs.480.60 million during the year by means of third party work. This revenue is in addition to the revenue earned
for technical handling of other airlines whose contracts are administered by GSD, which is approximately Rs.120 million per annum. 5.2 Security
Department The Security Department earned a revenue of Rs.560 million for the year 2010-11 towards rendering security and other services to
customer airlines. 5.3 Cargo Revenue During the year, the cargo revenue was Rs.8757.9 million, which is a 27% growth over 2009-10. Air India
cargo carried 190,830 tonnes of cargo thereby registering a growth of 9% vis-a-vis 2009-10. 6. FLEET SIZE, AIRCRAFT UTLISATION,
NETWORK, JOINT VENTURES ETC. 6.1 Fleet Size As of 31 March 2011, Air India had the following aircraft in its fleet : Aircraft
TypeOwnedLeasedSale & Lease Bac kTotal B777-200LR8--8 B777-300ER12--12 B747-4003-25 A310-300-Pax--11 A310-300-Fr----
A320185831 A319195-24 A32120--20 A330-2-2 TOTAL801211103 Phase out/ return of aircraft: v Out of the 11 1989 & 1990 vintage A320
aircraft, 3 were sold during 2009-10 and the balance eight aircraft are under disposal. v It has been decided to phase out six B737-200 freighters
after completion of the Department of Post operations by April 2011. Approval was received from Ministry of Civil Aviation for phasing out
these six B737-200 freighter aircraft and the same are under disposal. v Six A320 leased aircraft were returned back to the lessor during 2010-11.
v 3 A310-300 freighter aircraft (2 owned and 1 on sale & lease back) and 3 A310-300 passenger aircraft (on sale & lease back) were phased out
from the fleet and grounded pending disposal. 6.2 Fleet Utilisation & Despatch Reliability Utilisation in terms of average daily utilisation per
aircraft in block hours and the Technical despatch reliability after considering technical delays of 15 minutes and above are given hereunder for
the year 2010-11 : Aircraft TypeBlock hrs flown/day/ aircraftTech Despatch Reliability (%) B747-4007.5298.82 A310-3004.3597.14
A3207.1098.82 A3198.5099.61 A32110.7099.61 A3307.6098.91 B777-200LR11.8498.04 B777-300ER12.9599.50 B777-200ER0.0880.00 6.3
Aircraft Availability On an average, 89.70% of the fleet was available for service during the year under report. 6.4 Equipment Serviceability
Equipment serviceability during the year under report was 91.06%. 6.5 Baggage Delivery On time baggage delivery for the year 2010-11 was
93.19% and 87.39% at Mumbai and Delhi respectively. 6.6 Network The pattern of operations during 2010-11 for international operation was as
under : RoutesSummer 2011Winter 2011Summer 2010Winter 2010 India/New York77147 India/New York/Washington---- India/London
(T)21211421 India/London/Toronto--7- India/Toronto77-7 India/Frankfurt/Chicago--7- India/Chicago77-7 India/Frankfurt7777
India/Frankfurt/Newark--7- India/Newark77-7 India/Paris4(Daily eff 01JUL)734(4th eff.1.12.2010) India/Nairobi ---- India/Gulf171167175175
India/Tokyo (T)3444 India/Shanghai4444 India/Hong Kong/Osaka3333 India/Hong Kong/Seoul444(w.e.f.1.8.2010)4 India/Hong Kong--4(upto
31.1.2011)- India/Kuala Lumpur--77 India/Singapore (T)28283535 India/Bangkok14141414 India/Yangon2322 India/Kathmandu22222222
Chennai/Colombo6677 India/Male14141414 India/Kabul6666 6.7 Extra Section Flights During the year Air India operated 10 VVIP flights on
behalf of the Government of India. 6.8 Joint Ventures and Code share Arrangements As on 31 March 2011, Air India had code share
arrangements with 12 foreign carriers, the details of which are as follows : To :Operating AirlineMarketing AirlineType of Code Share London
New York v.v.Kuwait AirwaysAIBlock Space Frankfurt India v.v.Lufthansa#AIFree Flow Munich India v.v.
Frankfurt-Berlin/Munich/Dusseldorf/Stuttgart/ Amsterdam/Copenhagen/Oslo/Stockholm v.v.* Frankfurt-Chicago/Los Angeles/Washington/
Denver/Detroit v.v.* Delhi Frankfurt v.v.AILHFree Flow Mauritius Bangalore Chennai MauritiusAir MauritiusAIBlock Space Mauritius Delhi
v.v. Mauritius Mumbai v.v. Vienna India v.v.Austrian AirlinesAIBlock Space Mumbai-Bangalore, Chennai, Delhi, Hyderabad, Trivandraum
v.v.*AISouth African AirwaysFree Flow Mumbai Johannesburg v.v. South African AirwaysAIFree Flow Johannesburg-Durban, Capetown v.v.*
Moscow Delhi v.v.AeroflotAIBlock Space MauritiusAir Mauritius Istanbul India v.v.Turkish AirlinesAIBlock Space Columbo India v.v.Sri
Lankan AirlinesAIBlock Space India Zurich v.v.SwissAIBlock Space Singapore - Kolkata, Bangkok, Kualalumpur, San Francisco, Los Angeles
v.v.Singapore AirlinesAIFree Flow Chennai Seychelles v.v.Air SeychellesAIBlock Space Addis Ababa India v.v.Ethiopian AirlinesAIFree Flow
Addis Ababa Dar es Salaam v.v.* #In addition, AI can code share on Lufthansa operated flights between Frankfurt-Lyon, Geneva, Zurich v.v.
However, currently connectivity is not there. *For carriage of through traffic only 7. FINANCING INITIATIVES Aircraft Financing : During the
year 2010-11, Air India availed a Bridge loan amounting to US$473 million for financing 3 B777-300ER aircraft and 1 GE spare engine.
Subsequently, this Bridge loan was re-financed through US Exim financing in August 2011 at a highly competitive interest rate structure resulting
in savings of Rs.800 million p.a. by way of interest. Similarly, the loan for acquisition of Airbus aircraft amounting to Rs.55000 million given by
a Consortium of Banks led by IDBI was refinanced in September 2011 with the ICICI Bond issue maturing in 15-20 years at a lower rate of
interest which resulted in a saving of approximately Rs.1800 million p.a. For the B787-8 financing, the airline is exploring a number of options
including Sale and Lease Back. The US Exim Bank has already issued a Commitment Letter to support delivery financing for the first 12 B787-8
aircraft to be inducted into the fleet. As of date, bids for the first 7 B787-8 aircraft for Sale and Lease Back have already been floated and the
response is awaited. 8. AIR SAFETY A dedicated website flightsafety@airindia.in has been set up which aids dissemination of vital safety
related information in a cost effective manner to all employees of the Company. On-line submission of operational incident, bird hit, EGPWS,
TA/RA and hazard identification reports has expedited analysis of incidents and addressing safety related issues. Various spot checks (Surprise
Field Inspections) have been introduced. Such checks contain finding which are subsequently addressed by the parent department, thus
maintaining required standards. Cockpit and Cabin Surveillance checks are routinely carried out to monitor safe operation of flights. The Flight
Operations Quality Assurance (FOQA) programme has been ramped up to include direct email interaction with flight crew, thus elevating safety
awareness. Cockpit Voice Recorder (CVR) monitoring on a regular basis with crew interaction through email has commenced. Counselling of
personnel is regularly conducted for safety enhancement and recommendations are sent to various departments requiring time bound ATRs
(Action Taken Reports). Flight Duty Time Limitations (FDTL) for pilots and Cabin Crew are monitored with violations addressed appropriately.
Regular PIB (Permanent Investigation Board) meetings are conducted in order to investigate incidents. Special PIBs are conducted to investigate
serious incidents. international and Domestic Safety Audits are carried out on a periodic basis. An Internal Audit is conducted for safety
evaluation of the airline and findings are actioned in a time bound manner. The associated report is filed with the DGCA. Airport Surveys/Risk
Assessments are carried out before commencement of flight operations to a new airport. Incident data is routinely uploaded to the DGCA
Website and a FSD Monthly Activity Report submitted to DGCA. 9. GROUND HANDLING As on 31 March 2011, Air India provided Ground
Handling services at 63 Indian Stations . During the period 2010-11 flights handled were as follows : 2010-112009-10 Air India1,23,845 1,23,940
Foreign Carriers 33,92635,642 Air India Express 11,34413,196 Other flights 839 850 Haj flights 273 846 Total flights handled1,70,227 1,74,474
Ground Handling Revenue for the flights handled during the year 2010 - 11 was Rs.5618.9 million. Additional/New Ground Handling contracts
negotiated during the year 2010-11 were with M/s Air Asia, Qatar Airways, Saudi Airlines, Silk Air, FedEx, NAS Air, Air Seychelles, Tiger
Airways, Buddha Air, Etihad, East Air, Hercules Aviation, Phillipines Air, Hainan Airlines, Thai Airways, Emirates, Oman Air, Malaysian
Airlines, British Midland Airways Ltd., Uzbekistan Airways. Joint Venture Agreement between Air India Limited and Singapore Airport
Terminal Services (SATS) on ground handling : The Company has entered into a Joint Venture (JV) agreement with SATS, Singapore in the
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equity ratio of 50:50 to provide ground handling services to airlines at certain metro airport. This was in pursuance of Government of India
Notification on the Ground Handling policy. The JV Company was formed on 20 April 2010. Prior to the formation of the Company, since the
airports at Hyderabad and Bangalore were made operational on 23 March 2008 and 24 May 2008, respectively, AISATS operated under an
Association of Persons (AOP). A Business Transfer Confirmation Agreement (BTA) was executed to transfer the entire assets and liabilities on a
?slump sale? basis to the new company on 1 August 2010. The BTA was executed on 30 March 2011 with a total value of Rs.872.3 million of
which AI share was 50% i.e. Rs.436.1 million. AI SATS JV also started operations in the new terminal at Delhi T3 partly w.e.f. 20 July 2010 and
then progressively from Winter Schedule 2010. The staff of Air India Delhi were transferred on deputation from July 2011. Presently AI SATS
JV is operational in Hyderabad, Bangalore, Delhi, Mangalore and Trivandrum. 10. MAINTENANCE, REPAIR AND OVERHAUL OF
ENGINES & COMPONENTS 10.1 Major checks carried out on A330 5 'A' checks and 2 ?B?/'C' checks were carried out during the year under
report thereby saving an amount of USD 1.9 million. Major checks carried out on A320 Major checks (A, B, C and Structural Inspection) on
A320 aircraft are undertaken at Delhi and Hyderabad. Hyderabad caters to ?A?, ?B? & ?C? (inclusive of 2A, 3A and 4A) and Delhi carries out
?A?, ?B?, ?C? checks and Structural Inspection, scheduled and unscheduled engine changes, weighment of aircraft, renewal of certificate of
airworthiness, compliance of major modifications, etc. Following number of checks were carried out during the financial year 2010-11 : ?A?
Checks ?C? Checks Delhi 101 11 Hyderabad NIL 9 10.2 Engine Overhaul facility at Mumbai In November 2009, Air India's Engine Overhaul
Facility, Mumbai and Aerostar Asset Management, Sharjah UAE agreed for a strategic alliance as 'The Team A' to provide Engine MRO services
to airlines operators in the Middle-East Region. Under this alliance, in the year 2010-11, Engine Overhaul Facility Mumbai overhauled nine
CF6-50 C2/E2 engines and four CF6-80C2 engines for various operators in the Middle-East Region. This was with a turn over of USD 6.97
Million and revenue earning of USD 3.5 Million. The agreement between Air India's Engine Overhaul Facility, Mumbai and Aerostar Asset
Management, Sharjah UAE will be renewed for another term. The facility will be upgraded with the investment from Aerostar to further add and
improve the products and services. 10.3 Jet Engine Overhaul Complex (JEOC) The facility for inspection and repairs of CFM56-5B engine is
being established. The facility is likely to be operational by second quarter of 2012 and the first CFM56 engine is targeted to roll out of JEOC
after refurbishment in the third quarter of 2012. 10.4 MRO-JV with Boeing A major portion of the Company?s existing MRO facilities caters to
its own fleet requirements. The Company has created a Strategic Business Unit for MRO to reduce cost, attract third party work and improve
turnaround time. Boeing had committed to invest about Rs.4700 million (USD 100 million) in the facility of Air India at the Nagpur SEZ. This
investment is being contemplated to be undertaken directly by Boeing on the infrastructure, plant & machinery and tooling required for B737,
B777 and B787 aircraft. As a part of Boeing's offset obligation, these facilities would be given free of cost to Air India. This facility will have two
wide body hangars, GE90/Genx engine overhaul facility, landing gear shop, seat refurbishment, components overhaul, composite repair shop,
specialised engine piece part repair shop. As a part of Boeing's commitment, MRO facility is being developed at Nagpur. Being located in SEZ
area, the Nagpur MRO would be ideally suited for third party work. Agreement has been signed with Maharashtra Airport Development
Corporation (MADC) for taking 50 acres of land from MADC for the setting up of the facilities. MRO is expected to be functional by July 2013.
10.5 MRO JV with EADS In accordance with the 43 new A320 family Aircraft Purchase Agreement dated 20 February 2006 entered between
erstwhile Indian Airlines and Airbus Industries, France, Airbus had offered certain co-operation projects which inter alia include its willingness,
together with its affiliates and industrial partners, for establishing in India a MRO facility for A320 family aircraft. A Business Plan on MRO
Venture was jointly prepared by Air India and EADS, which was broadly acceptable to EADS but the valuations proposed by Air India were not
acceptable to them. Price WaterhouseCoopers (PWC) were appointed as the independent valuer by EADS in consultation with Air India.
However, the report submitted by PWC was not acceptable to Air India due to the undervaluation of Air India?s contributions to the MRO
compared to what was indicated in the Business Plan. Air India conveyed to EADS that it was working on hiving off its MRO activity as a
separate company ? Air India Engineering Services Limited (AIESL), a wholly owned subsidiary of Air India. Air India suggested that Airbus
could contribute in the development and expansion of AIESL MRO facilities for Airbus including ATR aircraft as support/investment project.
The response from EADS/Airbus in this regard is awaited. 10.6 Construction of new hangar : The MRO project at Rajiv Gandhi International
Airport, Shamshabad, Hyderabad is being developed at an estimated cost of approximately Rs.800 million. This infrastructure project is coming
up in an area of 5 acres allotted by GHIAL on sub-lease basis for a period of 20 years. This project comprises of a state-of-the-art pre-engineered
hangar to accommodate 2 A320 aircraft or 1 wide bodied aircraft i.e. B747/777 series. The hangar will cater to major maintenance and also line
maintenance facilities for all the aircraft. The annexe buildings will have various shop facilities viz. accessories overhaul, electrical, radio,
instrument, wheel bay, brake assembly, storage of all tools and components required for the maintenance of the aircraft. In addition to the above,
the project will also have different ancillary buildings like HST & Oxygen, line maintenance, dope stores, plant maintenance, other engineering
services, administrative offices, etc. The project is in the final stage of completion and will be ready for commissioning by the end of 2011. 10.7
Facilities developed at Kolkata An in-house facility for 10 components had been set up to service Airframe, Engine and APU Components and
more component facilities are under process. APU Centre is gearing up for setting up in-house servicing facility for 131-9A/9B APUs and
in-house servicing facility for Engine and APU Fuel and Oil components installed on new generation aircraft. Upgrading of hi-flow facility for
testing of pneumatic components with higher flow and temperature is being set up. 10.8 Avionics Complex The new building came up in
Avionics Complex, Delhi where ATEC 6000 was installed to test computers of A320 family aircraft and became operational in October 2010.
The existing ATEC 5000 was also shifted to this building in January 2011. Test rig for WHC P/N 416-00318-001/003 fitted on A320 was
developed in the Electrical shop. A new tester was also fabricated locally for testing of aircraft clock of A320 family aircraft by the Instrument
Shop. 132 circuit card assemblies were serviced by level 3 approved repair in the Radio overhaul shop resulting in substantial foreign exchange
savings. Line Maintenance Division received new Aero-stretchers which are being used successfully on IFE fitted A320 aircraft for providing
stretcher facility for sick passengers at short notice. 11. TRAINING Engineering : Boeing During the year 2010-11, Training Section of the
Engineering Department conducted 132 courses. A total of 3466 Engineering personnel were trained, which includes 1957 Engineering personnel
trained for STAR Alliance familiarization in 57 such courses conducted. A total of 63 courses were conducted for AMEs, shop approval holders
and Technical officers and a total of 1224 personnel were trained. 10 courses were conducted for Service Engineers and others and a total of 174
personnel were trained. 2 courses were conducted for outside parties and a total of 10 personnel were trained. Airbus During the year 2010-11,
Training Section of the Engineering Department at Delhi, conducted 110 courses for AMEs and 52 courses for Aircraft Technicians. A total of
1773 AMEs and 1277 Aircraft Technicians participated in these courses. 75 participants from outside parties such as Indian Air Force, DGCA and
AASL also participated in various Engineering Training Programmes. Security : High emphasis is assigned to training in the form of basic/first
time, refresher and security awareness programmes to Security personnel and officers/staff from other departments viz., Operations, In-Flight
Services, Commercial Departments, by the Security Training Centre (STGC), Mumbai and Central Training Establishment (CTE), Hyderabad.
Both the training centres are authorised by the BCAS to conduct security training programmes based on the National Civil Aviation Security
Programme (NCASTP), which in turn has been formulated on the basis of the Standards and Recommended Practices (SARPs) contained in
Annexure 17 to the ICAO Convention on International Civil Aviation, Chicago. During the year 2010-11, Security Training Centre has conducted
various Aviation Security related courses for Security personnel as well as for the staff of other Departments. Approximately 4090 employees
were trained through various courses as per the requirement of National Civil Aviation Security Training Programme including 1056 employees
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on Security Awareness which is a mandatory requirement for the issuance of Airport Entry Permit/Pass. The Investigation & Fraud Prevention
(I&FP) Cell has also been actively conducting training for the benefit of all the frontline staff at the Booking Office (Reservations), Airport
Offices and Check-in Counters at the Domestic Stations. During the year, the I&FP Cell has trained over 220 staff from erstwhile Air India, other
Customer Airlines, Customs and Immigration Authorities (Government of India), in the field of fraud prevention. 12. Quality Management
System Emergency Response Plan Emergency Management Manual was prepared as per the requirement of the Emergency Response Plan and
STAR Alliance requirements. The integrated Plan includes checklists and actions to be carried out in a co-ordinated manner by all concerned
including Ground Handling, Airport Managers, Operations, Engineering, Flight Despatch/Operational Control, Finance, Medical, Security and
many others. Regular Mock Drills were conducted to enable the rehearsal of Emergency Response actions. QMS organized the IATA Training
across all functional areas of Air India. It ensured that the Company had a written Emergency Response Plan with structures, procedures and
check lists. Air India has around 463 SAT (Angels of Air India) members and the numbers are growing. Continuous training programme for
Airport Managers based in India and abroad has also been planned. The Court of Inquiry appreciated the response of Air India ERP Team for the
air crash of IX-812 at Mangalore on 22 May 2010. The fully functional Emergency Command Centre (ECC) at Mumbai was inaugurated on 6
September 2011. Documentation Management System(DMS) QMS is ensuring for the effective implementation of a comprehensive Document
Management System (DMS) which enables proper storage of all documents and their retrieval when required. This would be a major initiative
moving towards near paperless office. A centralised Corporate Document Management System was implemented to provide creation, version
management, search, retrieval and dissemination of documents over a browser to all authorised personnel based on individual rights, across all
Departments and all four AOP holders and Strategic Business Units. This would reduce the need for paper and would effectively have a
centralised corporate DMS to comply with IOSA standards as well as to meet the organisational requirements. This would not only generate cost
savings for the Company but also improve efficiency, save time as well as save the environment. During the combined IOSA Audit of the
Company, QMS successfully ensured that various soft copies of the integrated Manuals were loaded on the DMS to show it to the IOSA Auditors.
The Auditors found it satisfactory and there were no findings related to the same. Work continues with all Departments for ensuring
implementation of DMS. IATA Safety Audit for Ground Operations (ISAGO) Air India became an ISAGO Pool Member along with other
prominent Airlines. An Interim agreement was signed with IATA and QMS has qualified ISAGO auditors and is part of the ISAGO Auditing
Airline Pool. The ISAGO programme and the QMS participation will help in reduction of audits for ground handling, lower risk or ground
damage, generate cost savings and bring about more efficient processes with enhanced quality standards. Air India achieved a milestone to be the
first airline in India providing ground services to enter the ISAGO Registry with its Mumbai station. QMS ensured timely and successful
registration of ISAGO, which indicates the clear commitment of Air India to be proactive and go beyond the minimum safety and quality
standards in all spheres of Aviation. ISAGO audits were conducted by an Auditor deputed from IATA accredited Audit Organisation for Air India
Headquarters and by Airline Auditors from an ISAGO Audit Pool Member Airline for Mumbai Station. Compliance with ISAGO will go a long
way in reducing the number of accidents, ensures greater safety and quality standards. It ensures reduction in cost and less additional audit
operations. Operational Efficiency & Fuel Management QMS has been monitoring and ensuring quality enhancement in all areas of fuel
management, implementation of green initiatives as well as emission reduction. QMS has co-ordinated with the Aviation Fuel consulting group of
IATA who were entrusted with the work of conducting the Fuel Efficiency Gap Analysis (FEGA) on the consumption of Aviation turbine Fuel in
Air India as well as implementation of specific cost saving opportunities. QMS has helped in identifying and implementing the recommendations
of FEGA as a result of which the Company has been successful in saving fuel. Flight Planning System QMS has co-ordinated and commenced
trials for implementation of the New Flight Planning System which would optimise the routes and provide cost effective routing on day-to-day
basis for every flight and would contribute to cost savings. The F:WZ Flight Planning System being implemented is the most important cost
saving, technical and operational integration tool. The QMS along with the navigation and flight planning team worked consistently throughout in
testing the data systems, conducting live trials on the B777, B747, A320 and A330 and generated cost savings. Full implementation was achieved
on the Eastern Region in respect of Airbus A320 family. A large number of flights in the Western and Northern Region were also dispatched
using F:WZ Flight Planning System. The accumulated savings upto 30 September 2011 were approximately USD 20,00,514 (approximately
Rs.90 million) by using F:WZ Flight Planning System. Corporate Safety Management System Corporate-wide Safety Management System
Manual was approved by the DGCA recently. Corporate Safety Policy was also issued for the organization. Phase ? 2 as per DGCA guidelines
was completed and presently QMS is working on Phase ? 3 of the Safety Management System. IATA Operational Safety Audits (IOSA) The
IOSA Programme is an internationally recognised and accepted evaluation system designed to assess the efficacy of the operational management
and control systems of an airline for maintaining high standards of operational safety and security. Airlines that qualify the IOSA audit
demonstrate the commitment to quality and safety and the IATA membership is now a mark of quality. The Security Department of Air India has
undergone the periodic IATA Operational Safety Audits (IOSA), and are duly certified for complying with their requirements. Erstwhile
NACIL-A was the first airline in India to clear the IOSA in 2003 and had cleared 4 IOSA audits and NACIL-I had cleared 2 IOSA prior to the
merger. For the first time the merged entity underwent an IOSA in September 2011. 13. INFORMATION TECHNOLOGY Passenger Service
System (PSS) Air India has implemented PSS since 26 February 2011 consisting of Reservations, Departure Control and associated services such
as internet booking engine, frequent flyer programme. The system is since then running successfully on Air India network. As a part of PSS
implementation, SITA Departure Control System (DCS) cutover was done at 61 domestic and 18 international stations. SITA CUTE has been
implemented at 15 domestic and 10 international stations. IT Initiatives for Haj 2010 Department of Information Technology provided
Reservation and Check-in application for NAS and AL-Wafer airlines operating Haj flights for the year 2010-11. The first flight was from
Guwahati on 8 October 2010 and the last flight was from Nagpur on 7 November 2010. The following stations used this software : Jaipur,
Guwahati, Ranchi, Varanasi, Aurangabad, Mangalore, Nagpur, Bhopal and Indore. Technical Enhancement All the stations log on to the central
server using secured log-in via SSL/VPN connection and do centralized Boarding Card Printing/Check-in. Due to this enhancement, the stations
do not have to maintain a local server. They have to only have client PCs for the Reservation/Check-in process. Projects for Vigilance Department
Following IT facilities were extended for Vigilance Awareness Week commencing from 25 October 2010 : v A dedicated telephone number
(26265588) was provided for the benefit of recording the complaints from internal as well as external user. Such voice recorded messages are
stored in a Voice Messaging System which can be accessed by the Vigilance Department through a telephone line at any time and take suitable
action. v An interactive feedback form has been made available in the corporate website in the Vigilance Section and the link is provided on the
home page as well as in ?about us? page. Complainant can fill up this form and the complaint is automatically sent through e-mail to authorized
Vigilance personnel for action. Complaints pertaining to vigilance only will be processed by Vigilance Department and complaints pertaining to
any other services will be forwarded by Vigilance Department to relevant departments. This facility has also been introduced on CLICK portal
through Intranet. Secure Servers on Virtual Private Network (SOS-VPN) Air India had implemented SOS-VPN for accessing SITA host, based on
multiple favors of Internet Access (EVDO/3G/2G/Broad Band). This option of connectivity could also provide 24x7 Remote Secure Access to All
Servers/Hosts connected to Air India MPLS IP Network. 14. SECURITY The Security Department of the Company has a well defined security
policy for safety and security of its operations. It has a professionally managed set-up headed by Executive Director-Security, who is a senior
level IPS Officer on deputation from the Government, and permanent and contract security personnel through its subsidiary Companies viz. Air
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India Air Transport Services Limited (AIATSL), Air India Charters Limited (AICL) who are deployed for providing security coverage to all Air
India flights and those of our customer airlines. Officers and staff from the Security Department pre-dominantly have an Armed Forces, National
Cadet Corps (NCC) or Law Enforcement background. The Security Department of Air India has a well defined security policy for safety and
security of its operations. The safety and security of flight operations is being fulfilled through the Security Programme and Manuals based on the
National Civil Aviation Security Programme (NCASP) formulated by the Bureau of Civil Aviation Security (BCAS), Government of India. The
Security Programme provides guidance on all aspects of aviation security and incorporates established security policies and procedures for flights,
sets out measures to protect aircraft, passengers, crew, baggage, cargo, vital installations, etc. against acts of unlawful interference in civil aviation
operations and other criminal acts perpetrated against flight operations and property. In addition to its primary responsibility of providing security
for our flight operations and property, the Security Department also generates additional revenue for the Company by providing security services
to customer airlines. The Company implements the Aviation Security (AVSEC) programme appropriate to meet the requirements of the National
Civil Aviation Security Programme and security measures in accordance with the Circulars and AVSEC Orders issued by the Bureau of Civil
Aviation Security (BCAS) under the Aircraft Act, 1934 and Aircraft Rules 1937 (as amended from time to time) or any other applicable
Act/Rules to be made by the Government of India. The main objective of the Security Department is to safeguard the airline against acts of
unlawful interference and other criminal acts perpetrated against it. Air India implements the Aviation Security (AVSEC) programme to meet the
requirements of NCASP. Quality Control Programme A Security Quality Control Programme for Air India has been formulated to comply with
the Standards & Recommended Practices stipulated in Annexure 17 to the ICAO Convention on International Civil Aviation. The primary
purpose of the said programme is to achieve the best possible protection and safety of passengers, crew, ground personnel, general public, aircraft
and facility of an airport serving commercial aviation services against acts of unlawful interference in civil aviation operations perpetrated on
ground or in the air. Surveys/Audits/Inspection Security surveys, reviews, inspections and audits are conducted periodically by officials from the
Security Department for the purpose of identifying and overcoming weaknesses, as also to maintain the highest levels of efficacy and efficiency
of security systems for our flight operations at all times. Investigation & Fraud Prevention Cell The Investigation & Fraud Prevention Cell, a vital
wing of the Security Department, deals with all revenue and property crimes/frauds, including policies and procedures to prevent the travel of
inadmissible passengers on our flights to western countries with improper documents/documentation such as stolen/counterfeit/forged passports
and visae, counterfeit/forged/stolen revenue documents like tickets, Miscellaneous Charges Order(MCO), credit card frauds, etc. Owning to this,
the British Government has, through the Home Office (Her Majesty?s Immigration Service), bestowed upon Air India the Approved Gate Checks
status which enabled the waiver of several fines/penalties imposed by them for the carriage of inadmissible passengers (inadvertently) to the UK
on a case to case basis. 15. VIGILANCE Vigilance Department of the Company is guided by the agenda set by the Central Vigilance
Commission(CVC) and the key thrust areas for each year are decided accordingly. The main thrust areas currently projected by the CVC for the
year 2010-11 were : v implementation of the Integrity Pact Programme in tenders and v leveraging Technology through use of website for
bringing in transparency and accountability in all dealings v Curtailing delays in departmental action against officials charged in vigilance cases.
The Company has adopted the Integrity Pact Programme which covers all tenders of a value of Rs.100 million and above. With regard to the
leveraging of technology to ensure transparency and accountability in all dealings, access to the Vigilance Department was restored to the front
page of the Airline?s online website, whereby almost all complaints received from the various external customers were being followed up by
Vigilance with the concerned for quick and satisfactory disposal. One of the focus areas promoted by the CVC at the end of the financial year
2010-11 was to concentrate on irregularities committed by officers of the top echelons of the management. Though, the CVC made this a focus
area only by the financial year end, Air India Vigilance were focusing on this aspect since the start of the financial year. During the year, besides
main line investigations, the Department conducted 81 surprise checks, 5 procedural audits, 11 field studies and 4 station inspections, resulting in
a direct saving of about 1.97 crores. 16. HUMAN RESOURCES 16.1 Staff Strength The staff strength as on 31 March 2011 was 28085. 16.2
Long Service Mementoes Every year all the employees of the Company who had completed 25 years of service are presented with a long service
memento i.e. a wrist watch and a Certificate, on 27 August. Accordingly, this year on 27 August 2010, the Long Service Mementoes presentation
function was held Region-wise and 1128 employees were felicitated. 17. MEDICAL SERVICES During 2010-11, a revenue of approximately
Rs.52944/- was earned for carrying out pre-flight medical examination. A number of measures have also been initiated to reduce expenditure and
achieve savings in Medical Services Department : v Purchase of life saving medicines for terminally ill patients directly from the manufacturers
resulting in saving of Rs.8,36,898. v Availing institution discounts by stocking a large number of medicines in-house resulting in saving of
Rs.2,16,96,781/-. v Issue of prescription was curtailed thereby saving Rs.6,04,776/-. v Rs.9,48,000/- was saved on the cost of pre employment
medical examination as the cost is borne by the candidates as per the new policy. v Approximately an amount of Rs.14,17,76,124/- was saved by
treating employees in-house, both serving and retired and keeping strict control on issue of references to specialists and hospitalisation. Total
savings by the Medical Services Department during the year under review amounted to Rs.16,58,62,579/-. 18. SPORTS The Company continues
to encourage participation in sports in various fields like Cricket, Badminton, Power lifting, Chess, Shooting, Carrom, table tennis, Hockey and
Kabbadi as a result of which, many of our employees have excelled in different sports championships. Some of our employees have also
represented at the State and National level in various games. On 29 August 2010, cricketer Ms Jhulan Goswami, kabaddi player Dinesh Kumar
and chess prodigy Parimarjan Negi, were presented the Arjuna Award. With this, the number of Arjuna Award winners in the airline touched 32.
The airline also has five Padma Shri and two Rajiv Gandhi Khel Ratna awardees. Air India lifted the men?s singles and doubles titles at the
Federation Cup Carrom tournament held at Nagpur from 15-18 September 2010. Five players from the Air India Hockey team ? Arjun Halappa,
Vikram Pillay, Gurbaj Singh, Shivendra Singh, Prabodh Tirkey and Harinder Singh (Coach) were members of the Asiad 2010 (held in China)
Bronze Medal winning Indian Hockey team. Mr Anup Kumar was part of the Asiad 2010 Gold Medal winning Indian Kabaddi team. Mr Virendra
Singh, working at Safdarjung Airport and an international hockey umpire officiated at hockey matches at the Asian Games at Guangzhou, China
during 12-27 November 2010. 19. PUBLIC GRIEVANCES During the year 2010-11, 111 Public Grievance cases were received. Out of these, 96
cases have been settled during 2010-11 and reports have also been submitted to the Ministry of Civil Aviation. The grievances largely pertained
to the delayed flights, baggage handling, non receipt of refund against cancellation of booking, etc. 20. RIGHT TO INFORMATION (RTI) ACT
As required by the RTI Act, information has been displayed on the Company?s website for the public at large. A proper organizational set up
consisting of 7 Public Information Officers, 11 Department-wise Assistant Public Information Officers and 32 Station-wise Assistant Public
Information Officers exists in the Company to help the applicants get the information sought by them. Appellate Authorities have been
constituted to deal with the appeals/grievances from the applicants. During the year 479 cases of request were received in addition to 33 cases
pending, 79 cases rejected, 45 cases of decision received from Appellate Authority and 29 cases of decision received from CIC and in all cases
appeals/requests were accepted. 21. STATUTORY COMPLIANCE Air India has six subsidiary companies. The financial statements of the
subsidiaries are included in this Annual Report elsewhere. Their performance is briefly discussed here : 21.1 Air India Air Transport Services
Limited (AIATSL): (Rs.in Million) Particulars2010-112009-10 Air India?s investment in equity0.5000.500 Total Income486.03621.30
Profit/(Loss) After Tax(1.78)(1.59) AIATSL provides certain handling services for customer airlines at various Indian stations. A total of 2701
staff on contract have been employed to carry out the work of ground handling on behalf of the Company at various airports. Air India SATS
Airport Services Private Limited (AISATS) took over the functions of ground handling in Delhi effective 10 August 2010 and around 210 staff of
18
AIATSL were transferred to AISATS. All these staff have entered into a fresh contract with AISATS. At all the stations Security Handling of all
the flights is carried out exclusively by AIATSL staff, as the same is not permitted to be outsourced to any agency. The Air India Board at its
Meeting held on 7 August 2010 approved operationalisation of Air India Air Transport Services Limited and the same is awaiting Government
approval. 21.2 Air India Charters Limited (AICL): ( Rs. in Million) Particulars2010-112009-10 Air India?s investment in equity300.00300.00
Total Income13516.614018.6 Profit/(Loss) After Tax(3912.2)(3606.9) AICL operates a Low Cost Airline under the brand name "Air India
Express". Launched on 29 April 2005 with a fleet of 3 leased B737-800 aircraft, it operated from 3 stations in Kerala to 5 stations in the Gulf. As
on 31 March 2010, AICL had a fleet of 22 B737-800 aircraft (including 4 dry leased aircraft). In May 2010, due to the unfortunate incident at
Mangalore, Air India Express lost one of its owned aircraft VT-AXV. Thus, as on 31 March 2011 the Company had 21 B737-800 aircraft
(including 4 dry leased aircraft) in its fleet. It operated to 12 Indian and 13 foreign on-line stations. Due to the loss of aircraft VT-AXV, the
capacity offered reduced by 7.6%. However, the Passenger Load Factor and Yield increased by 1% and 7.5% respectively during the year
2010-11. The aircraft utilization also increased by 7.2% from 9.30hrs per day in 2009-10 to 9.97hrs per day in 2010-11. The revenue shared with
Air India remained almost constant at Rs.427 crores. Air India Express ended 2009-10 with a total of 203 flights per week. Air India Express
ended the Winter 2010-11 schedule with 189 flights per week. During the year 2010-11, Air India Express carried about 2.38 million passengers
as against 2.55 million passengers in 2009-10. However, due to increase in fuel costs the Company made a loss of Rs.3912.20 million during the
year 2010-11 as against Rs.3606.90 million during 2009-10. An unfortunate and tragic accident occurred to flight IX812 on 22 May 2010
operating Dubai/Mangalore, when, on landing at Mangalore Airport, the aircraft overshot the runway. There were 160 passengers and 6 crew
members on board. There were 8 survivors and the remaining 158 bodies were recovered from the site. An interim compensation of Rs.10 lakhs
to each of the deceased of 12 years and above, Rs.5 lakhs to each of the deceased below 12 years of age and Rs.2 lakhs to each of the injured
passengers was paid. Distribution of compensation commenced within a week of the accident and an amount of Rs.141.6 million was paid as
interim compensation in 166 cases.. The process of final settlement started and as of September 2011, 66 cases were settled completely and 7
cases were settled partly (wherein only some of the family members accepted the claim and other either did not accept or have not yet claimed),
for a total amount of Rs.568.4 million (including interim compensation). These claims are being settled on actual ?Proof of Loss? basis sustained
by the members of family as defined by the Carriage by Air Act, 1972 which incorporates the Montreal Convention. 21.3 Air India Engineering
Services Limited (AIESL): (Rs.in Million) Particulars2010-112009-10 Air India?s investment in equity0.5000.500 Total Income-- Profit/(Loss)
After Tax(0.016)(0.318) Air India Engineering Services Limited was incorporated on 11 March 2004 . Till date no business activity is conducted
by the Company. The Air India Board at its Meeting held on 7 August 2010 approved operationalisation of Air India Engineering Services
Limited and and the same is awaiting Government approval 21.4 Airline Allied Services Limited: (Rs.Million) Particulars2010-112009-10 Air
India?s investment in equity22.5022.50 Total Income3582.63686.3 Profit/(Loss) After Tax(291.2)(415.4) The Company operates under the brand
Alliance Air. As on 31 March 2011 the Company had 6 B737-200 Freighters(which have since been grounded), 7 ATR-42-320s and 4 CRJ-700s
leased aircraft in its fleet. B737 Freighter operations have been discontinued in April 2011. As at the end of the year, the network of the Company
consisted of 29 stations within the country for passenger operations. As on 31 March 2011, the staff strength of the Company was 674 consisting
of 648 employees on contract and the rest on deputation from Air India Limited. As per the terms of an MoU with the North Eastern Council
(NEC), the Company has been operating air services in the North East. The arrangement with the NEC which was initially for a period of five
years, is now being extended on year to year basis with last extension till the end of 2011. The Company has submitted the required information
for renewal of arrangement with NEC and the same is expected shortly. 21.5 Hotel Corporation of India Limited (HCI): (Rs.in Million)
Particulars2010-112009-10 Air India?s investment in equity406.00406.00 Total Income535.25*412.85 Profit/(Loss) After Tax(262.88)*(291.11)
*Subject to Audit Chefair Flight Catering, Mumbai As per the approval of the Ministry of Civil Aviation, several attempts were made in the
earlier years to offer the unit of Chefair Flight Catering, Mumbai(CFCM) under Management Contract by the Consultant M/s.Tourism Finance
Corporation of India Limited (TFCI), who were appointed for the same. Due to uncertainty involved in taking over of the unit by Mumbai
International Airports Limited (MIAL) under the airport expansion project, all efforts to offer the unit under Management Contract was failed. In
view of the same, the Board advised the management to make the unit as a separate profit centre and a viability report was then submitted to the
Board. Subsequently, effort is being made to make HCI as a Special Business Unit, so that it can cater to the flight catering needs of Air India for
all its ex-Mumbai and Delhi flights and the same is under process. Centaur Lake View Hotel, Srinagar : Subsequent to the execution of
Management Contract with the selected bidder M/s BD & P Hotels Private Ltd., on 15 September 2011 a Writ Petition was filed by certain unions
of the CLVH (viz., Centaur Hotel Employees Union, Srinagar and Centaur Hotel Officers? Welfare Association, Srinagar) against the proposal of
offering the unit under Management. The unit could not be handed over due to the Interim stay Order passed by the Hon?ble High Court of
Jammu & Kashmir in the matter. Subsequently, the State government of J&K conveyed its intention to take over the property of CLVH under its
management. Accordingly, the management conveyed its acceptance for the same and reiterated that the CLVH would be transferred to the State
Government on ?as is where is? basis alongwith its employees. In view of the change in the situation, the unit could not be given under
management contract to M/s. BD & P Hotels (India) Pvt. Ltd., and the Management Contract was terminated by invoking the clause of ?Force
Majeure? and the Interest Free Security Deposit and Minimum Guaranteed Amount was refunded to the party. Taking cognizance of the same, the
bidder M/s. BD & P Hotels (India) Pvt. Ltd., had filed an Arbitration Petition in the Hon?ble High Court at Bombay which was listed for hearing.
Post Disinvestment Issues The issue of settlement of Net Current Assets and other obligations with respect to Centaur Hotel Mumbai Airport was
disputed and the disputes raised by the Buyer were referred to Arbitration. As per the Award, the Hon?ble Tribunal was pleased to award in
favour of HCI a sum of Rs.188, 48,920/- together with interest @ 2% p.a over and above the SBI Prime Lending Rate amounting to Rs.215,
37,085.84 and also Rs.40 lakhs towards legal cost. The total amount receivable from the Respondent as on 30 April 2011 amounts to Rs.
443,86,005.84. The said Award was then served on the Respondent, M/s Sahara Hospital for its enforcement, who challenged the award and made
an application for setting aside the said Award and the matter is yet to come up on regular Board for hearing. In case of Centaur Hotel Juhu
Beach, the matter on three divergent issues referred to Executive Director-Finance & Company Secretary, Air India Limited, as advised by the
Sole Arbitrator, Joint Secretary, Ministry of Civil Aviation, appointed by the Ministry. Several meetings were held with M/s.Tulip Hospitality
Services Limited and the points of disputes were narrowed down and the final settlement is awaited. 21.6 IAL Airport Services Limited: IAL
Airport Services Limited was incorporated on 27 August 2003. As no business activity was conducted by the Company, the Board of Directors, in
December 2010, directed to dissolve the company. Accordingly, necessary steps were taken for striking off the name of the Company under Easy
Exit Scheme. The name of the Company was struck off the Register of the Registrar of Companies and the company stands dissolved with effect
from 25 March 2011. As on 31 March 2011, all assets and liabilities of IAL Airport Services Limited were transferred to the books of Air India
Limited. The bank account of the company has also been closed and balance has been transferred to the bank account of Air India Limited. 21.7
Vayudoot Limited: (Rs.Million) Particulars 2010-112009-10 Air India?s investment in equity 364.200364.200 Total Income -- Profit/(Loss) After
Tax (0.422)(0.423) Vayudoot Limited was incorporated on 20 January 1981 with authorized capital of Rs.500 million. The Ministry of Civil
Aviation, Government of India, vide its letter dated 25 May 1993 conveyed its decision to merge the company with erstwhile Indian Airlines
Limited and accordingly, the entire shareholding of the company was transferred to Indian Airlines Limited whereby the company became wholly
owned subsidiary of erstwhile Indian Airlines Limited. Effective 1 April 1997, the flight operations of the company were transferred to erstwhile
19
Indian Airlines Limited and the employees were transferred to erstwhile Indian Airlines and Air India Limited. An application of merger with Air
India Limited is under consideration of the Ministry of Corporate Affairs. 22. RISK MITIGATION STRATEGIES The Company continuously
monitored the risks perceptions and taken preventive action for mitigation of risks on various fronts. 23. INTERNAL CONTROL SYSTEMS The
Company continues to ensure proper and adequate internal control systems and procedures commensurate with its size and nature of business.
These control systems ensure that all assets are safeguarded and protected against loss from unauthorized use and that transactions are authorized,
recorded and reported correctly. The internal control system enables documented policies, guidelines, authorization and approval procedures. The
Company has an extensive system of internal controls which ensures optimal utilization and protection of resources, IT security, accurate
reporting of financial transactions and compliance with applicable laws and regulations as also internal policies and procedures. The internal
control system is supplemented by extensive internal audits, regular reviews by management and well documented policies and guidelines to
ensure reliability of financial and other records to prepare financial statements and other data. The Company has a well defined manual on
delegation of authority and administrative powers, based on which, the authorities exercise their powers. This manual is reviewed periodically to
cope with the changes necessitated by the needs of the organization. The said manual, along with the Company?s key functional process manuals,
further strengthens the internal control system of the organization. The Company has independent internal audit systems to monitor the entire
operations and services spanning over all locations, business and functions on a regular basis. The Company has also employed outside
consultants in its various areas of functioning in order to reduce/monitor its cost platform. *****************
01/04/2010 to 31/03/2011
Details of directors signing board report

1
Name of director signing board report [abstract]
First name of director Rohit
Middle name of director
Last name of director Nandan
Designation of director Managing Director
Director identification number of director 02195896
Date of signing board report 29/12/2011
[620000] Disclosures - Auditors report

01/04/2010
to
31/03/2011
Disclosure in auditor?s report [text block] Textual information (3) [See below]
20
Disclosure in auditor?s report [text block]

REPORT OF THE AUDITORS TO THE MEMBERS OF AIR INDIA LIMITED (FORMERLY KNOWN AS NATIONAL AVIATION
COMPANY OF INDIA LIMITED)
1. We have audited the attached Balance Sheet of Air India Limited (Formerly Known as National Aviation Company of India Limited) ,
as at 31 st March 2011, the Profit and Loss Account of the Company for the year ended 31 st March 2011 and the Cash Flow Statement for the
year ended on that date and annexed thereto. These Financial Statements are the responsibility of the Company?s management. Our responsibility
is to express an opinion on these Financial Statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor?s Report) Order, 2003 (as amended), issued by the Central Government in terms of Section 227
(4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and as per information and explanations given
during the course of our audit, we annex hereto a Statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. We further Report that :
i. As stated in Note No. 34 the visits to foreign stations/ Branches of the company could not be conducted. These Visits were meant to audit
the original records maintained at these stations/branches and to examine the internal controls. Therefore, our audit of the accounts has been
conducted subject to the said limitation and in respect of certain foreign stations for which some of the records were produced locally, has
remained restricted to examinations of records produced before us. Other foreign stations not visited by us, have remained unaudited.
ii. As stated in Note no.23,24,25,30,37,46 regarding confirmations and reconciliation of receivables and payables and reconciliation of
various balances in subsidiary accounts at certain locations, we are unable to comment on the impact of adjustments arising out of reconciliation /
confirmation of such balances, on the Financial Statements. The impact of the same on the Financial Statements is not ascertainable.
iii. Loans and Advances includes an amount of Rs.642.60 million paid to lessors towards maintenance charges of Aircrafts which have been
accounted for as prepaid expenses as per companies accounting policy to be charged to the profit and loss account when the maintenance is
actually carried out as the amount paid towards maintenance charges have been calculated and accrued on the basis of flight cycles/hour flown,
the amount paid should have been treated as expenditure as per accrual basis of accounting. This has resulted in overstatement of prepaid
expenses and under statement of loss for the year by Rs.642.60 million.
iv. As stated in Note No. 30(d) certain closing balances including liabilities in foreign currencies are not stated at FEDAI rates at the year end,
which is not in compliance with the requirements of AS-11issued by ICAI.
v. No provision has been made towards interest /penalty if any payable towards outstanding dues for service tax (Refer Note No. 30 (g)) and
Note No. 31(a) regarding dues from suppliers.
5. Attention is invited to :
i) As stated in Note No.44, the company has been carrying the net balance of deferred tax asset amounting to Rs.28425.2 million which
was recognized in years 2007-08 & 2008-2009. In the subsequent years deferred tax asset has been recognized only to the extent of deferred tax
liabilities as a prudent measure. Since the virtual certainty as stipulated under AS-22 had not been established in the year 2009-10, the carrying
21
amount of deferred tax asset should have been charged off to the Profit & Loss Account in the year 2009-10 itself. Consequent to above, the
opening balance of the carried forward losses has been understated to the extent of Rs. 28425.2 million and balance of deferred tax asset has been
overstated to that extent. Further during the year deferred tax has been recognized to the extent of deferred tax liability amounting to Rs.9,768.1
Million. Though the management is confident of realizing the deferred tax asset based on the turn around measures which are at various stages of
implementation as stated in the said Note No.44, the impact thereof as expected by the management can not be conclusively established and
22
therefore it has not been possible for us to conclude as to whether there is a virtual certainty as envisaged under the provisions of AS-22 issued by
ICAI. We have therefore not been able to form our opinion in respect of realisability of the deferred tax asset recognized during the year. The
impact of the above, if any, on the loss for the year could not be ascertained.
ii) Note No. 45 regarding the financial statements of the Company having been prepared on a going concern basis, notwithstanding the fact
that its net worth is completely eroded . The appropriateness of the said basis is interalia dependent on Company?s ability to obtain equity from
the Government for meeting its obligations and improved operational performance.
iii) Note No. 6 & 7 regarding pending registration formalities and title deeds being obtained in respect of certain properties and Note No.10
regarding reworking of the depreciation on certain assets.
iv) As stated in Note No. 12, fees associated with bridge / long term delivery financing being capitalized after the commercial operations, not
being in accordance with AS-16 issued by ICAI .
v) Note No.16 regarding impairment assessment being done in respect of certain assets in accordance with AS-28 issued by ICAI .
vi) Note No. 20 regarding additional premium payable to CIDCO towards non development of surplus land being capitalized.
vii) Note. No. 21 regarding accounting for claim of liquidated damages on account of delay in deliveries of aircraft, which is dependent on
delivery of aircraft.
viii) Note No. 27 and 30 regarding improvements required in internal control at various locations.
ix) Note No. 2 8 , regarding machinery spares meant for modification of aircrafts ( amount unascertained) are continued to have been
included as inventory .
x) Note No. 29 regarding certain items being accounted for on cash basis.
xi) Note No. 30(j) relating to redelivery of aircraft amounting to Rs. 792.0 million charged off to profit & loss account.
xii) Note No. 32 regarding manufacturer?s credit amounting to Rs. 175.12 million being taken to revenue instead of adjusting to the cost of
assets.
xiii) Note No. 41 of Schedule-X regarding non-cognizance of losses incurred by the subsidiary companies and, consequently not providing for
diminution in the value of Investments therein to be in compliance with AS-13.
xiv) Note No. 47 regarding adhoc provision towards wage arrears.
We further Report that in view of the observations made by us in the paragraphs 4 & 5 above, considering the impact to the extent quantifiable,
Loss for the year is understated by Rs.817.72 million, Accumulated losses are understated by Rs.28425.20 million, fixed asset are overstated by
Rs.175.12 million with consequential impact on loss for the year being not determined precisely, Current Assets, Loans and Advances are
overstated by Rs. 642.60 million and Deferred Tax Asset would have been Rs. nil.
6. Further to our comments in the Annexure referred to in Para 3 and subject to our observations in Para 4 & 5 above, we Report that:
i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of
our audit.
23
ii) In our opinion, proper Books of Account as required by law have been kept by the Company, so far as appears from our examination of
these books maintained at Central Accounts Office of the Company, incorporating the information/returns received from the stations and Reports
received from outsourced agencies and found to be generally adequate for the purpose of our audit.
iii) The Company being a Government Company as defined in Section 617 of the Companies Act, 1956, is exempted from the applicability
of the provisions of the Section 274 (1) (g) of the said Act vide circular no. 2/5/2001/CV.V General Circular no. 8/2002 dated March 22, 2002
issued by Ministry of Law, Justice and Company Affairs.
iv) The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the Books of Account.
v) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this Report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except as given in Para 4 & 5 above .
vi) In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statements subject to
paragraphs 4 & 5 above and read together with Notes thereon and significant accounting policies, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2011;
b) in the case of the Profit and Loss Account, of the loss for the year ended 31 st March 2011;and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended 31 st March 2011.
For and on behalf of For and on behalf of
R. Devendra Kumar & Associates Kapoor Tandon & Co.
Chartered Accountants Chartered Accountants
FRN: 114207W FRN : 000952C
(D.K.Gupta) (Rajesh Parasramka)
Partner Partner
Membership No.09032 Membership No.074192
P.K Chopra & Co. PKKG Balasubramaniam & Associates
FRN : 006747N FRN : 001547S
(Tarun Kandhari)
(C Suresh)
Partner Partner
24
Place : Delhi
Dated: 29 November 2011
ANNEXURE TO AUDITOR?S REPORT
Referred to in paragraph (3) of our report of even date
1. (a) The records relating to fixed assets including rotables maintained by the company are stated to be in the process of updation with
reference to full particulars, quantitative details and location thereof . The Company has not yet updated fair value of assets in the Fixed Assets
Register at certain locations and it is informed that the same is in process. The reconciliation of Fixed Asset Register for aircraft rotables and
other fixed assets with financial records is stated to be in progress.
(b) The Company has a program of physical verification of Fixed Assets on a rotational basis so that every asset is verified once in every two
years which in our opinion is adequate. It is observed that during the year, the physical verification has been conducted only at few locations. The
physical verification exercise is stated to be in progress to be in compliance with the laid down procedure . In the absence of a complete
reconciliation of the results of physical verification with financial records, we are unable to ascertain whether the physical verification to the
extent conducted revealed any material discrepancy. (Refer Note No.18)
(c) In our opinion and according to the information and explanations given to us, the Company has not disposed off substantial part of Fixed
Assets during the year affecting the going concern assumption .
2. (a) The Company has a procedure of conducting physical verification of Inventory atleast once in a block of two years, on a
perpetual basis.
(b) The procedure of physical verification of inventories on a perpetual basis by the Management is reasonable. However, considering the
size of the Company and nature of its business the same needs to be strengthened with regard to the frequency. The physical verification
conducted during the year is minimal and needs to be considerably enlarged. The Company has not obtained confirmations / certificates in respect
of Inventory lying with outside agencies.
(c) On the basis of our examination of the Inventory records, in our opinion, the Company is maintaining proper records of Inventory
except at, certain Regions & Stations which, limits the extent of audit due to non availability of requisite inputs, relating to receipts, issue, stocks
and at stores with regard to itemized movement etc. The centralized records relating to inventory and consumption maintained at stores need to be
fully reconciled with the financial records. (Refer Note No. 25)
The discrepancies noticed on physical verification of Inventory, as compared to book records are in the process of reconciliation and
adjustment subjecting to scrutiny by the concerned Department and thereafter the same are properly dealt with in the Books of Accounts.
3. (a) The Company has not granted any Loans, Secured or Unsecured to Companies, Firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(b) Consequently, the question of commenting on the rates of interest and the other terms and conditions of the loans granted being
prejudicial to the interests of the Company, receipt of regular principal and interest and reasonable steps taken for recovery of principal and
interest does not arise.
(c) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the Register maintained
under Section 301 of the Act.
25
(d) Consequently, the question of commenting on the rates of interest and the other terms and conditions of the loans taken being prejudicial
to the interests of the Company and payment of regular principal and interest does not arise.
4. In our opinion and according to the information and explanations given to us, except for overall control (without our being in a position
to comment upon the adequacy of internal controls) in respect of accounting of Wide Body which are exercised centrally at Head Office level,
there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchases of
Inventory, Fixed Assets and sale of goods and services . However the implementation of such controls needs to be strengthened. The Company is
in the process of reconciling sub-ledgers with the general ledger in respect of Inventory, Sundry Debtors/creditors, staff advances and certain
intermediary accounts, etc.
(Refer Note No. 30 (a) & (b)). The management needs to take corrective action on continuing failure to improve the weakness in internal control
system 5. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the
management, we are of the opinion that there are no particulars of contracts and arrangements referred to in Section 301 of the Companies Act,
1956 that need to be entered into the Register required to be maintained under that Section.
(b) Hence, the question of commenting whether the transactions made in pursuance of such contracts or arrangements, were made at prices
which are reasonable having regard to prevailing market prices at the relevant time does not arise.
6. In our opinion and according to the information and explanations given to us, the Company has not accepted any Deposits from the public
and hence the provisions of Section 58A, 58AA or any other provisions of the Companies Act, 1956, read with the Rules framed thereunder are
not applicable.
7. In our opinion, the internal audit function has to be made commensurate with the size of the Company and nature of its business. In
respect of Wide Body operations the Internal Audit coverage during the year was minimal. Internal Audit function needs to be strengthened for
timely performance, reporting, compliance, extending the scope to the major online Stations & Central Accounts Office, emphasizing on critical
areas and taking timely monitoring actions at the Head Quarter, so as to ensure effective internal controls. The closing balances as appearing in
the books are required to be reviewed through internal audit.
8. As per the information and explanations given to us, the maintenance of Cost Records has not been prescribed by the Central Government
under Section 209(1)(d) of the Companies Act, 1956.
9. (a) According to the information and explanations given to us and on the basis of our examination of the Books of Account, during
the year the Company has been generally regular in depositing undisputed Statutory Dues ,including Provident Fund, Employees? State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Cess and other statutory dues applicable to it with the appropriate authorities
except as stated below:
In respect of foreign stations, since the records are kept at the stations, we are unable to comment whether the dues are timely deposited.
The Provident Fund dues pertaining to the employees of the contractors / sub-contractors aggregating Rs. 29.8 million are kept in a
separate bank account in the absence of their registration numbers.
The Company is generally regular in depositing Tax Deducted at Source. However, at certain locations the Company has not reconciled
Tax deducted at Source and payable as at year end. The Company has not deducted tax on certain provisions made at the year end.
The Company is in the process of reconciliation of Service Tax recoverable and Service Tax payable.
The Service Tax including Input credit to be availed and TDS, EPF, ESIS, Profession tax and airport tax accounts are being reconciled.
As on 31/03/2011, there are undisputed service tax dues amounting to Rs. 1826.5 million and income tax dues of Rs. 79.15 million
.outstanding for more than six months.
As stated above, in the absence of reconciliation, we are unable to determine whether there are any other undisputed dues payable
in respect of above as at 31 st March, 2011 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues outstanding of Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Service Tax, Excise Duty or cess on account of any dispute other than mentioned below:
26
Name of Statute Amount (Rs. in Million) Nature and Forum where dispute is pending
1069.2
Income Tax Act, 1961 Demand Notices received by the Company which are under Appeal.
Customs Duty and Service Tax 5174.2 Customs Duty and Service Tax demanded by the Tax Authorities
Municipal Taxes / House Tax / Octroi 170.1 Property Taxes / House Tax / Octroi demanded by Municipal Authorities
10. Though five years have not elapsed since the amalgamated Company came into existence, the accumulated losses are more than the net
worth of the Company and Cash Losses have been incurred in the current and previous financial years. However, the accounts of the Company
have been prepared on the basis of going concern basis based on the assumption that the company is going to turn around and have improved
financial performance in future. (Refer Note No. 45).
11. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks and financial institutions. However as on the date of the Balance Sheet, there were overdue loans of Rs.
14224.50 million outstanding for payment. It was also observed that there were delays in repayment of interest and principal during the year.
12. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi/ mutual benefit fund/ societies.
14. The Company does not deal in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the Company has given guarantees for loans taken by its subsidiaries from
banks. The terms of such guarantee are not prima facie prejudicial to the interests of the Company.
16. According to the information and explanations given to us, the Term Loans were applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on an overall review of the Balance Sheet and Cash Flow of the
Company, we report that out of Short Term Loans taken for Working Capital, an amount of Rs.10090.9 million have been used for long term
purposes.
18. The Company has not made any preferential allotment of shares to parties or Companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. There are no secured debentures issued during the year.
20. The Company has not raised any money through public issue during the year.
21. During the course of our examination of the books and records of the Company during the year, carried out in accordance with the
generally accepted auditing practices in India, we have neither come across any instances of material fraud being noticed or reported on or by the
company nor we have been informed of any such instances by the management.
27
R. Devendra Kumar & Associates Kapoor Tandon & Co.
FRN: 114207W FRN : 000952C

(D.K.Gupta) (Rajesh Parasramka)
Partner Partner
P.K Chopra & Co. PKKG Balasubramaniam & Associates
FRN : 006747N FRN : 001547S
(Tarun Kandhari) (C Suresh)
Partner Partner
Place : Delhi
Dated: 29 November 2011
28
01/04/2010 to 31/03/2011
Details regarding auditors

1 2 3
Name of audit M/s R Devendra Kumar &
M/s P K Chopra & Co M/s Kapoor Tandon & Co
firm Associates
Name of auditor
KANDHARI TARUN PARASRAMKA RAJESH GUPTA DEVENDRA KUMAR
signing report
Membership
074852 074192 009032
number of auditor
N Block,Bombay Life 205 Blue Rose Industrial Estate,Near
C/o Rajesh Parasramka,Room No.1577,3rd
Address of Building,IInd Floor,Above Post Petrol Pump,Western Express
Floor,Bldg No.42B,Gangadhar Coop Hsg
auditors Office,Connaught Place,New Highway,Borivali-E,Mumbai
Society,Vartaknagar,Thane-W,400606
Delhik 110001 400066
Permanent
account number of
AAHFP6285D AACFK5666N AABFR2611M
auditor or auditor's
firm
SRN of form
Z99999999 Z99999999 S07673635
23B
Date of signing
audit report by 29/11/2011 29/11/2011 29/11/2011
auditors
Date of signing
of balance sheet by 29/11/2011 29/11/2011 29/11/2011
auditors
Details regarding auditors

4
Name of audit firm M/s PKKG Balasubramaniam & Associates
Name of auditor signing report SURESH C
Membership number of auditor 204602
Address of auditors Flat No.2&3,Door No.68/38,Brindavan,Street West Mambalam,Chennai 600033
Permanent account number of auditor or auditor's firm AAHFP5605R
SRN of form 23B Z99999999
Date of signing audit report by auditors 29/11/2011
Date of signing of balance sheet by auditors 29/11/2011
29
[100000] Sources and Application of Funds

31/03/2011 31/03/2010 31/03/2009
Sources application funds [abstract]
Sources of funds [abstract]
Shareholders' funds [abstract]
Paid-up share capital 21,450 9,450
Reserves surplus 804.7 624.8 633.5
Shareholders' funds 22,254.7 10,074.8
Loan funds [abstract]
Secured loans 107,080.4 65,907.1
Unsecured loans 198,901.4 184,761.1
Loan funds 305,981.8 250,668.2
Other liabilities 120,308.2 133,373.8
Sources of funds 448,544.7 394,116.8
Application of funds [abstract]
Fixed assets [abstract]
Net block [abstract]
Gross block 354,408.9 328,410.5
Accumulated depreciation, amortization and impairment [abstract]
Accumulated depreciation amortisation 47,282.5 31,990.6
Accumulated impairment 0 0
Accumulated depreciation amortisation impairment 47,282.5 31,990.6
Net block 307,126.4 296,419.9
Capital work-in progress, net 18,964.2 24,656.2
Fixed assets 326,090.6 321,076.1
Investments, net 1,320.5 1,219.3
Net deferred tax asset 28,425.2 28,425.2
Net current assets [abstract]
Current assets loans advances [abstract]
Current assets [abstract]
Sundry debtors 28,376.2 25,791.1
Cash bank balance 4,164.4 5,284.7
Inventories 6,759.6 8,677.8
Other current assets 825.2 768.1
Current assets 40,125.4 40,521.7
Loans advances 13,806.1 14,466.5
Current assets loans advances 53,931.5 54,988.2
Current liabilities provisions [abstract]
Current liabilities 69,241.1 55,652.5
Provisions 15,637.9 10,929.9
Current liabilities provisions 84,879 66,582.4
Net current assets -30,947.5 -11,594.2
Miscellaneous expenditure not written off 0 0
Profit loss debit balance 123,542.6 54,890.9
Other assets 113.3 99.5
Application of funds 448,544.7 394,116.8
30
[640000] Disclosures - Signatories of balance sheet
01/04/2010 to 31/03/2011
Details of directors signing balance sheet

1 2
Name of director signing balance sheet [abstract]
First name of director Rohit Prashant
Middle name of director
Last name of director Nandan Sukul
Designation of director Managing Director Director
Director identification number of director 02195896 02558916
Date of signing of balance sheet by director 29/11/2011 29/11/2011
31
[300000] Statement of Cash Flow, Indirect Method

01/04/2010 01/04/2009
to to 31/03/2009
31/03/2011 31/03/2010
Cash flow statement [abstract]
Net increase decrease cash and cash equivalents [abstract]
Net cash flow from used in operating activities [abstract]
Net profit loss before tax extraordinary items -68,636.7 -55,509
Adjustments profit loss operations [abstract]
Adjustment depreciation depletion amortisation [abstract]
Adjustment depreciation 16,934.2 13,897.9
Adjustment depreciation depletion amortisation 16,934.2 13,897.9
Adjustment gain loss sale disposal fixed assets 209.3 408.1
Adjustment interest expense 32,959 24,343.5
Adjustment interest dividend income [abstract]
Adjustment interest received [abstract]
Adjustment interest long-term investments 110.3 313.4
Adjustment interest received 110.3 313.4
Adjustment dividend received [abstract]
Adjustment dividend received other investments 41.7 44.6
Adjustment dividend received 41.7 44.6
Adjustment interest dividend income 152 358
Adjustments profit loss operations 49,950.5 38,291.5
Operating profit loss before changes working capital -18,686.2 -17,217.5
Changes working capital [abstract]
Changes current assets loans advances [abstract]
Changes inventories 1,918.2 964.3
Changes sundry debtors -1,924.7 -4,350.7
Changes current assets loans advances -6.5 -3,386.4
Changes current liabilities provisions [abstract]
Changes other liabilities 18,493.5 13,925.4
Changes current liabilities provisions 18,493.5 13,925.4
Changes working capital 18,487 10,539
Cash from generated operations -199.2 -6,678.5
Direct taxes paid refunded 14.5 14.8
Net cash flow from used in operating activities -213.7 -6,693.3
Net cash flow used in investing activities [abstract]
Purchase development fixed assets [abstract]
Purchase tangible fixed assets 23,279.5 60,509.6
Purchase development fixed assets 23,279.5 60,509.6
Proceeds sale disposal fixed assets [abstract]
Proceeds sale disposal tangible fixed assets 747.2 26
Proceeds sale disposal fixed assets 747.2 26
Proceeds interest dividend investments [abstract]
Proceeds interest investments [abstract]
Proceeds other interest 395.5 216.1
Proceeds interest investments 395.5 216.1
Proceeds dividend investments [abstract]
Proceeds dividends other investments 41.7 44.6
Proceeds dividend investments 41.7 44.6
Proceeds interest dividend investments 437.2 260.7
Extraordinary items investing activities 211.9 644.3
Other investing activities, net -101.2 12.5
Net cash flow used in investing activities -21,984.4 -59,566.1
Net cash flow from used in financing activities [abstract]
32
Proceeds issue share capital [abstract]

Proceeds issue equity share capital 12,000 8,000
Proceeds issue share capital 12,000 8,000
Proceeds financial liabilities [abstract]
Proceeds long-term borrowings 42,248 74,915.9
Proceeds financial liabilities 42,248 74,915.9
Interest financial expenses paid [abstract]
Interest expense long-term loans paid 33,156.4 24,196.7
Interest financial expenses paid 33,156.4 24,196.7
Extraordinary items financing activities -13.8 1,428.5
Net cash flow from used in financing activities 21,077.8 60,147.7
Net increase decrease cash and cash equivalents -1,120.3 -6,111.7
Cash and Cash Equivalents, Ending Balance 4,164.4 5,284.7 11,396.4
[100100] Schedule - Share capital

31/03/2011 31/03/2010
Share capital [abstract]
Authorised share capital [abstract]
Authorised equity share capital 50,000.5 48,756.45
Authorised preference share capital 0 1,244.05
Authorised share capital 50,000.5 50,000.5
Issued subscribed share capital [abstract]
Issued share capital [abstract]
Equity share capital issued 21,450 9,450
Preference share capital issued 0 0
Issued share capital 21,450 9,450
Subscribed share capital [abstract]
Equity share capital subscribed 21,450 9,450
Preference share capital subscribed 0 0
Subscribed share capital 21,450 9,450
Paid-up share capital [abstract]
Paid-up equity share capital 21,450 9,450
Paid-up preference share capital 0 0
Paid-up share capital 21,450 9,450
01/04/2010 to 31/03/2011
Details of every class of share capital

1
Type of share Equity
Nature of share Fully paid up
Nominal value per authorised share [INR/shares] 10
Number of authorised shares [shares] 500,00,50,000
Value of authorised shares 50,000.5
Nominal value per issued share [INR/shares] 10
Number of issued shares [shares] 214,50,00,000
Value of issued shares 21,450
Nominal value per subscribed share [INR/shares] 10
Number of subscribed shares [shares] 214,50,00,000
Value of subscribed shares 21,450
Nominal value per paid-up share [INR/shares] 10
Number of paid-up shares [shares] 214,50,00,000
Value of paid-up shares 21,450
33
01/04/2009 to 31/03/2010
Details of every class of share capital

1 2
Type of share Equity Preference
Nature of share Fully Paid-up Not issued
Nominal value per authorised share [INR/shares] 10 [INR/shares] 100
Number of authorised shares [shares] 487,56,45,020 [shares] 1,24,40,498
Value of authorised shares 48,756.45 1,244.05
Nominal value per issued share [INR/shares] 10 [INR/shares] 0
Number of issued shares [shares] 94,50,00,000 [shares] 0
Value of issued shares 9,450 0
Nominal value per subscribed share [INR/shares] 10 [INR/shares] 0
Number of subscribed shares [shares] 94,50,00,000 [shares] 0
Value of subscribed shares 9,450 0
Nominal value per paid-up share [INR/shares] 10 [INR/shares] 0
Number of paid-up shares [shares] 94,50,00,000 [shares] 0
Value of paid-up shares 9,450 0
[100200] Schedule - Reserves and Surplus

01/04/2010 01/04/2009
to to 31/03/2009
31/03/2011 31/03/2010
Reserves surplus [abstract]
Capital reserve consolidation [abstract]
Changes capital reserve consolidation [abstract]
Additions capital reserve consolidation 211.9 644.3
Deductions capital reserve consolidation 32 19.5
Changes capital reserve consolidation 179.9 624.8
Capital Reserve on Consolidation, Ending Balance 804.7 624.8 0
Capital reserve [abstract]
Changes capital reserve [abstract]
Changes capital reserve 0 0
Capital Reserve, Ending Balance 0 0
General reserve [abstract]
Changes general reserve [abstract]
Deductions general reserve 0 633.5
Changes general reserve 0 -633.5
General Reserve, Ending Balance 0 0 633.5
Reserves surplus 804.7 624.8 633.5
[100210] Schedule - Reserves and Surplus [Summary]

01/04/2010 01/04/2009
to to 31/03/2009
31/03/2011 31/03/2010
Reserves surplus [abstract]
Changes reserves surplus 179.9 -8.7
Reserves and Surplus, Ending Balance 804.7 624.8 633.5
34
[100300] Schedule - Secured debt

31/03/2011 31/03/2010
Secured loans [abstract]
Rupee term loans secured [abstract]
Rupee term loans banks secured 89,388.3 64,560.1
Rupee term loans others secured 841 0
Rupee term loans secured 90,229.3 64,560.1
Foreign currency loans secured [abstract]
Foreign currency loans banks secured 16,851.1 1,347
Foreign currency loans secured 16,851.1 1,347
Secured loans 107,080.4 65,907.1
[100400] Schedule - Unsecured debt

31/03/2011 31/03/2010
Unsecured loans [abstract]
Debentures unsecured [abstract]
Non-convertible debentures unsecured 7,000 7,000
Debentures unsecured 7,000 7,000
Rupee term loans unsecured [abstract]
Rupee term loans banks unsecured 184,412.2 168,638.1
Rupee term loans others unsecured 7,489.2 9,123
Rupee term loans unsecured 191,901.4 177,761.1
Public deposits unsecured 0 0
Unsecured loans 198,901.4 184,761.1
35
[100600] Schedule - Fixed assets

01/04/2010 01/04/2009
to to
31/03/2011 31/03/2010
Summary of assets [abstract]
Additions to, gross block during period 28,971.5 0
Deductions in, gross block during period 2,973.1 0
Gross block, at end of period 354,408.9 328,410.5
Depreciation amortisation during period 16,966.2 0
Deductions in depreciation amortisation during period 1,674.3 0
Other adjustments to depreciation amortisation during period 0
Accumulated depreciation amortisation, at end of period 47,282.5 31,990.6
Impairment during period 0
Reversal of impairment during period 0
Accumulated impairment, at end of period 0 0
Accumulated depreciation amortisation impairment, at end of period 47,282.5 31,990.6
Net block, at end of period 307,126.4 296,419.9
Capital work-in progress, net [abstract]
Tangible assets work-in progress, net 18,964.2 24,656.2
Capital work-in progress, net 18,964.2 24,656.2
Classes of assets [abstract]
Tangible assets, net [abstract]
Land and land improvements, net [abstract]
Land, net [abstract]
Free hold land, net [abstract]
Additions to free hold land, gross during period 0
Deductions in free hold land, gross during period 0
Free hold land, gross, at end of period 7,057.8 7,057.8
Impairment freehold land during period 0
Reversal of impairment freehold land during period 0
Accumulated impairment free hold land, at end of period 0 0
Free hold land, net, at end of period 7,057.8 7,057.8
Lease hold land, net [abstract]
Additions to lease hold land, gross during period 199.7 0
Deductions in lease hold land, gross during period 0
Lease hold land, gross, at end of period 64,059.8 63,860.1
Amortisation leasehold land during period 117.2 0
Deductions in amortisation leasehold land during period 0
Other adjustments to amortisation leasehold land during period 0
Accumulated amortisation leasehold land, at end of period 540.1 422.9
Impairment leasehold land during period 0
Reversal of impairment leasehold land during period 0
Accumulated impairment lease hold land, at end of period 0 0
Lease hold land, net, at end of period 63,519.7 63,437.2
Land, net 70,577.5 70,495
Land and land improvements, net 70,577.5 70,495
Building and building improvements, net [abstract]
Building, net [abstract]
Other building, net [abstract]
Additions to other building, gross during period 29.8 0
Deductions in other building, gross during period 102.8 0
Other building, gross, at end of period 17,776.1 17,849.1
Depreciation other building during period 1,203.5 0
36
Deductions in depreciation other building during period 26.5 0

Other adjustments to depreciation other building during period 0
Accumulated depreciation other building, at end of period 4,891.2 3,714.2
Impairment other building during period 0
Reversal of impairment other building during period 0
Accumulated impairment other building, at end of period 0 0
Other building, net, at end of period 12,884.9 14,134.9
Building, net 12,884.9 14,134.9
Building and building improvements, net 12,884.9 14,134.9
Plant machinery, net [abstract]
Additions to plant machinery, gross during period 122.9 0
Deductions in plant machinery, gross during period 1.7 0
Plant machinery, gross, at end of period 2,977.6 2,856.4
Depreciation plant machinery during period 234.3 0
Deductions in depreciation plant machinery during period 0.5 0
Other adjustments to depreciation plant machinery during period 0
Accumulated depreciation plant machinery, at end of period 880.3 646.5
Impairment plant machinery during period 0
Reversal of impairment plant machinery during period 0
Accumulated impairment plant machinery, at end of period 0 0
Plant machinery, net, at end of period 2,097.3 2,209.9
Equipments, net [abstract]
Office equipments, net [abstract]
Additions to office equipments, gross during period 71.3 0
Deductions in office equipments, gross during period 4.1 0
Office equipments, gross, at end of period 743 675.8
Depreciation office equipments during period 63.4 0
Deductions in depreciation office equipments during period 1.3 0
Other adjustments to depreciation office equipments during period 0
Accumulated depreciation office equipments, at end of period 253.8 191.7
Impairment office equipments during period 0
Reversal of impairment office equipments during period 0
Accumulated impairment office equipments, at end of period 0 0
Office equipments, net, at end of period 489.2 484.1
Computer equipments, net [abstract]
Additions to computer equipments, gross during period 41 0
Deductions in computer equipments, gross during period 0.3 0
Computer equipments, gross, at end of period 892.9 852.2
Depreciation computer equipments during period 134.4 0
Deductions in depreciation computer equipments during period 0.2 0
Other adjustments to depreciation computer equipments during period 0
Accumulated depreciation computer equipments, at end of period 518.5 384.3
Impairment computer equipments during period 0
Reversal of impairment computer equipments during period 0
Accumulated impairment computer equipments, at end of period 0 0
Computer equipments, net, at end of period 374.4 467.9
Equipments, net 863.6 952
Furniture fixtures, net [abstract]
Additions to furniture fixtures, gross during period 32.4 0
Deductions in furniture fixtures, gross during period 0.7 0
Furniture fixtures, gross, at end of period 182.1 150.4
Depreciation furniture fixtures during period 15.8 0
Deductions in depreciation furniture fixtures during period 0.2 0
Other adjustments to depreciation furniture fixtures during period 0
Accumulated depreciation furniture fixtures, at end of period 63.4 47.8
Impairment furniture fixtures during period 0
Reversal of impairment furniture fixtures during period 0
Accumulated impairment furniture fixtures, at end of period 0 0
Furniture fixtures, net, at end of period 118.7 102.6
Vehicles, net [abstract]
37
Aircrafts helicopters, net [abstract]

Additions to aircrafts helicopters, gross during period 27,421.7 0
Deductions in aircrafts helicopters, gross during period 2,847.6 0
Aircrafts helicopters, gross, at end of period 254,661.5 230,087.4
Depreciation aircrafts helicopters during period 14,702.1 0
Deductions in depreciation aircrafts helicopters during period 1,639.2 0
Other adjustments to depreciation aircrafts helicopters during period 0
Accumulated depreciation aircrafts helicopters, at end of period 38,410.4 25,347.5
Impairment aircrafts helicopters during period 0
Reversal of impairment aircrafts helicopters during period 0
Accumulated impairment aircrafts helicopters, at end of period 0 0
Aircrafts helicopters, net, at end of period 216,251.1 204,739.9
Motor vehicles, net [abstract]
Additions to motor vehicles, gross during period 2.3 0
Deductions in motor vehicles, gross during period 2.2 0
Motor vehicles, gross, at end of period 237.6 237.5
Depreciation motor vehicles during period 19.3 0
Deductions in depreciation motor vehicles during period 1 0
Other adjustments to depreciation motor vehicles during period 0
Accumulated depreciation motor vehicles, at end of period 168.7 150.4
Impairment motor vehicles during period 0
Reversal of impairment motor vehicles during period 0
Accumulated impairment motor vehicles, at end of period 0 0
Motor vehicles, net, at end of period 68.9 87.1
Vehicles, net 216,320 204,827
Leasehold properties, net [abstract]
Leasehold plant machinery, net [abstract]
Other fixed assets, net [abstract]
Additions to other fixed assets, gross during period 26.4 0
Deductions in other fixed assets, gross during period 13.7 0
Other fixed assets, gross, at end of period 4,665.3 4,652.6
Depreciation other fixed assets during period 347 0
Deductions in depreciation other fixed assets during period 5.4 0
Other adjustments to depreciation other fixed assets during period 0
Accumulated depreciation other fixed assets, at end of period 1,335.2 993.6
Impairment other fixed assets during period 0
Reversal of impairment other fixed assets during period 0
Accumulated impairment other fixed assets, at end of period 0 0
Other fixed assets, net, at end of period 3,330.1 3,659
Intangible assets, net [abstract]
Computer software, net [abstract]
Additions to computer software, gross during period 1,024 0
Deductions in computer software, gross during period 0
Computer software, gross, at end of period 1,155.2 131.2
Amortisation computer software during period 129.2 0
Deductions in amortisation computer software during period 0
Other adjustments to amortisation computer software during period 0
Accumulated amortisation computer software, at end of period 220.9 91.7
Impairment computer software during period 0
Reversal of impairment computer software during period 0
Accumulated impairment computer software, at end of period 0 0
Computer software, net, at end of period 934.3 39.5
38
[100610] Schedule - Fixed assets, net-gross classification

01/04/2010 01/04/2009
to to
31/03/2011 31/03/2010
Gross block [abstract]
Tangible assets, gross [abstract]
Land and land improvements, gross [abstract]
Land, gross [abstract]
Lease hold land, gross 64,059.8 63,860.1
Free hold land, gross 7,057.8 7,057.8
Land, gross 71,117.6 70,917.9
Land and land improvements, gross 71,117.6 70,917.9
Building and building improvements, gross [abstract]
Building, gross [abstract]
Other building, gross 17,776.1 17,849.1
Building, gross 17,776.1 17,849.1
Building and building improvements, gross 17,776.1 17,849.1
Plant machinery, gross 2,977.6 2,856.4
Equipments, gross [abstract]
Office equipments, gross 743 675.8
Computer equipments, gross 892.9 852.2
Equipments, gross 1,635.9 1,528
Furniture fixtures, gross 182.1 150.4
Vehicles, gross [abstract]
Aircrafts helicopters, gross 254,661.5 230,087.4
Motor vehicles, gross 237.6 237.5
Vehicles, gross 254,899.1 230,324.9
Other fixed assets, gross 4,665.3 4,652.6
Tangible assets, gross 353,253.7 328,279.3
Intangible assets, gross [abstract]
Computer software, gross 1,155.2 131.2
Intangible assets, gross 1,155.2 131.2
Gross block 354,408.9 328,410.5
Accumulated depreciation amortisation [abstract]
Accumulated depreciation on tangible assets [abstract]
Accumulated depreciation land and land improvements [abstract]
Accumulated depreciation land [abstract]
Accumulated amortisation leasehold land 540.1 422.9
Accumulated depreciation land 540.1 422.9
Accumulated depreciation land and land improvements 540.1 422.9
Accumulated depreciation building and building improvements [abstract]
Accumulated depreciation building [abstract]
Accumulated depreciation other building 4,891.2 3,714.2
Accumulated depreciation building 4,891.2 3,714.2
Accumulated depreciation Building and building improvements 4,891.2 3,714.2
Accumulated depreciation plant machinery 880.3 646.5
Accumulated depreciation equipments [abstract]
Accumulated depreciation office equipments 253.8 191.7
Accumulated depreciation computer equipments 518.5 384.3
Accumulated depreciation equipments 772.3 576
Accumulated depreciation furniture fixtures 63.4 47.8
Accumulated depreciation vehicles [abstract]
Accumulated depreciation aircrafts helicopters 38,410.4 25,347.5
Accumulated depreciation motor vehicles 168.7 150.4
39
Accumulated depreciation vehicles 38,579.1 25,497.9

Accumulated depreciation other fixed assets 1,335.2 993.6
Accumulated depreciation tangible assets 47,061.6 31,898.9
Accumulated amortisation on intangible [abstract]
Accumulated amortisation computer software 220.9 91.7
Accumulated amortisation intangible assets 220.9 91.7
Accumulated depreciation amortisation 47,282.5 31,990.6
Accumulated impairment [abstract]
Accumulated impairment on tangible assets [abstract]
Accumulated impairment land and land improvements [abstract]
Accumulated impairment land [abstract]
Accumulated impairment lease hold land 0 0
Accumulated impairment free hold land 0 0
Accumulated impairment land 0 0
Accumulated impairment Land and land improvement 0 0
Accumulated impairment building and building improvements [abstract]
Accumulated impairment building [abstract]
Accumulated impairment other building 0 0
Accumulated impairment building 0 0
Accumulated impairment Building and building improvements 0 0
Accumulated impairment plant machinery 0 0
Accumulated impairment equipments [abstract]
Accumulated impairment office equipments 0 0
Accumulated impairment computer equipments 0 0
Accumulated impairment equipments 0 0
Accumulated impairment furniture fixtures 0 0
Accumulated impairment vehicles [abstract]
Accumulated impairment aircrafts helicopters 0 0
Accumulated impairment motor vehicles 0 0
Accumulated impairment vehicles 0 0
Accumulated impairment other fixed assets 0 0
Accumulated impairment tangible assets 0 0
Accumulated impairment on intangible assets [abstract]
Accumulated impairment computer software 0 0
Accumulated impairment intangible assets 0 0
Accumulated impairment 0 0
Accumulated depreciation amortisation impairment 47,282.5 31,990.6
Tangible assets, net [abstract]
Land and land improvements, net [abstract]
Land, net [abstract]
Free hold land, net 7,057.8 7,057.8
Lease hold land, net 63,519.7 63,437.2
Land, net 70,577.5 70,495
Land and land improvements, net 70,577.5 70,495
Building and building improvements, net [abstract]
Building, net [abstract]
Other building, net 12,884.9 14,134.9
Building, net 12,884.9 14,134.9
Building and building improvements, net 12,884.9 14,134.9
Plant machinery, net 2,097.3 2,209.9
Equipments, net [abstract]
Office equipments, net 489.2 484.1
Computer equipments, net 374.4 467.9
Equipments, net 863.6 952
Furniture fixtures, net 118.7 102.6
Vehicles, net [abstract]
Aircrafts helicopters, net 216,251.1 204,739.9
Motor vehicles, net 68.9 87.1
Vehicles, net 216,320 204,827
40
Other fixed assets, net 3,330.1 3,659

Tangible assets, net 306,192.1 296,380.4
Intangible assets, net [abstract]
Computer software, net 934.3 39.5
Intangible assets, net 934.3 39.5
Net block 307,126.4 296,419.9
Additions to gross block during period [abstract]
Additions to tangible assets, gross during period [abstract]
Additions to land and land improvements, gross during period [abstract]
Additions to land gross during period [abstract]
Additions to lease hold land, gross during period 199.7 0
Additions to free hold land, gross during period 0
Additions to land, gross during period 199.7 0
Additions to Land and land improvements, gross during period 199.7 0
Additions to building and building improvements, gross during period [abstract]
Additions to building, gross during period [abstract]
Additions to other building, gross during period 29.8 0
Additions to building, gross during period 29.8 0
Additions to Building and building improvements, gross during period 29.8 0
Additions to plant machinery, gross during period 122.9 0
Additions to equipments, gross during period [abstract]
Additions to office equipments, gross during period 71.3 0
Additions to computer equipments, gross during period 41 0
Additions to equipments, gross during period 112.3 0
Additions to furniture fixtures, gross during period 32.4 0
Additions to vehicles, gross during period [abstract]
Additions to aircrafts helicopters, gross during period 27,421.7 0
Additions to motor vehicles, gross during period 2.3 0
Additions to vehicles, gross during period 27,424 0
Additions to other fixed assets, gross during period 26.4 0
Additions to tangible assets, gross during period 27,947.5 0
Additions to intangible assets, gross during period [abstract]
Additions to computer software, gross during period 1,024 0
Additions to intangible assets, gross during period 1,024 0
Additions to, gross block during period 28,971.5 0
Deductions in gross block during period [abstract]
Deductions in tangible assets, gross during period [abstract]
Deductions in land and land improvements, gross during period [abstract]
Deductions in land, gross during period [abstract]
Deductions in lease hold land, gross during period 0
Deductions in free hold land, gross during period 0
Deductions in land, gross during period 0
Deductions in Land and land improvements, gross during period 0
Deductions in building and building improvements, gross during period [abstract]
Deductions in building, gross during period [abstract]
Deductions in other building, gross during period 102.8 0
Deductions in building, gross during period 102.8 0
Deductions in Building and building improvements, gross during period 102.8 0
Deductions in plant machinery, gross during period 1.7 0
Deductions in equipments, gross during period [abstract]
Deductions in office equipments, gross during period 4.1 0
Deductions in computer equipments, gross during period 0.3 0
Deductions in equipments, gross during period 4.4 0
Deductions in furniture fixtures, gross during period 0.7 0
Deductions in vehicles, gross during period [abstract]
Deductions in aircrafts helicopters, gross during period 2,847.6 0
Deductions in motor vehicles, gross during period 2.2 0
Deductions in vehicles, gross during period 2,849.8 0
Deductions in other fixed assets, gross during period 13.7 0
Deductions in tangible assets, gross during period 2,973.1 0
41
Deductions in intangible assets, gross during period [abstract]

Deductions in computer software, gross during period 0
Deductions in intangible assets, gross during period 0
Deductions in, gross block during period 2,973.1 0
Depreciation amortisation during period [abstract]
Depreciation tangible assets during period [abstract]
Depreciation land and land improvements during period [abstract]
Depreciation land during period [abstract]
Amortisation leasehold land during period 117.2 0
Depreciation land during period 117.2 0
Depreciation land and land improvements during period 117.2 0
Depreciation building and building improvements during period [abstract]
Depreciation building during period [abstract]
Depreciation other building during period 1,203.5 0
Depreciation building during period 1,203.5 0
Depreciation Building and building improvements during period 1,203.5 0
Depreciation plant machinery during period 234.3 0
Depreciation equipments during period [abstract]
Depreciation office equipments during period 63.4 0
Depreciation computer equipments during period 134.4 0
Depreciation equipments during period 197.8 0
Depreciation furniture fixtures during period 15.8 0
Depreciation vehicles during period [abstract]
Depreciation aircrafts helicopters during period 14,702.1 0
Depreciation motor vehicles during period 19.3 0
Depreciation vehicles during period 14,721.4 0
Depreciation other fixed assets during period 347 0
Depreciation tangible assets during period 16,837 0
Amortisation intangible assets during period [abstract]
Amortisation computer software during period 129.2 0
Amortisation intangible assets during period 129.2 0
Depreciation amortisation during period 16,966.2 0
Deductions in depreciation amortisation during period [abstract]
Deductions in depreciation tangible assets during period [abstract]
Deductions in depreciation land and land improvements during period [abstract]
Deductions in depreciation land during period [abstract]
Deductions in amortisation leasehold land during period 0
Deductions in depreciation land during period 0
Deductions in depreciation land and land improvements during period 0
Deductions in depreciation building and building improvements during period [abstract]
Deductions in depreciation building during period [abstract]
Deductions in depreciation other building during period 26.5 0
Deductions in depreciation building during period 26.5 0
Deductions in depreciation Building and building improvements during period 26.5 0
Deductions in depreciation plant machinery during period 0.5 0
Deductions in depreciation equipments during period [abstract]
Deductions in depreciation office equipments during period 1.3 0
Deductions in depreciation computer equipments during period 0.2 0
Deductions in depreciation equipments during period 1.5 0
Deductions in depreciation furniture fixtures during period 0.2 0
Deductions in depreciation vehicles during period [abstract]
Deductions in depreciation aircrafts helicopters during period 1,639.2 0
Deductions in depreciation motor vehicles during period 1 0
Deductions in depreciation vehicles during period 1,640.2 0
Deductions in depreciation other fixed assets during period 5.4 0
Deductions in depreciation tangible assets during period 1,674.3 0
Deductions in amortisation intangible assets during period [abstract]
Deductions in amortisation computer software during period 0
Deductions in amortisation intangible assets during period 0
Deductions in depreciation amortisation during period 1,674.3 0
42
Other adjustments to depreciation amortisation during period [abstract]

Other adjustments to depreciation tangible assets during period [abstract]
Other adjustments to depreciation land and land improvements during period [abstract]
Other adjustments to depreciation land during period [abstract]
Other adjustments to amortisation leasehold land during period 0
Other adjustments to depreciation land during period 0
Other adjustments to depreciation land and land improvements during period 0
Other adjustments to depreciation building and building improvements during period [abstract]
Other adjustments to depreciation building during period [abstract]
Other adjustments to depreciation other building during period 0
Other adjustments to depreciation building during period 0
Other adjustments to depreciation Building and building improvements during period 0
Other adjustments to depreciation plant machinery during period 0
Other adjustments to depreciation equipments during period [abstract]
Other adjustments to depreciation office equipments during period 0
Other adjustments to depreciation computer equipments during period 0
Other adjustments to depreciation equipments during period 0
Other adjustments to depreciation furniture fixtures during period 0
Other adjustments to depreciation vehicles during period [abstract]
Other adjustments to depreciation aircrafts helicopters during period 0
Other adjustments to depreciation motor vehicles during period 0
Other adjustments to depreciation vehicles during period 0
Other adjustments to depreciation other fixed assets during period 0
Other adjustments to depreciation tangible assets during period 0
Other adjustments to amortisation intangible assets during period [abstract]
Other adjustments to amortisation computer software during period 0
Other adjustments to amortisation intangible assets during period 0
Other adjustments to depreciation amortisation during period 0
Impairment during period [abstract]
Impairment tangible assets during period [abstract]
Impairment land and land improvements during period [abstract]
Impairment land during period [abstract]
Impairment freehold land during period 0
Impairment leasehold land during period 0
Impairment land during period 0
Impairment land and land improvements during period 0
Impairment building and building improvements during period [abstract]
Impairment building during period [abstract]
Impairment other building during period 0
Impairment building during period 0
Impairment Building and building improvements during period 0
Impairment plant machinery during period 0
Impairment equipments during period [abstract]
Impairment office equipments during period 0
Impairment computer equipments during period 0
Impairment equipments during period 0
Impairment furniture fixtures during period 0
Impairment vehicles during period [abstract]
Impairment aircrafts helicopters during period 0
Impairment motor vehicles during period 0
Impairment vehicles during period 0
Impairment other fixed assets during period 0
Impairment tangible assets during period 0
Impairment intangible assets during period [abstract]
Impairment computer software during period 0
Impairment intangible assets during period 0
Impairment during period 0
Reversal of impairment during period [abstract]
Reversal of impairment tangible assets during period [abstract]
Reversal of impairment land and land improvements during period [abstract]
43
Reversal of impairment land during period [abstract]

Reversal of impairment freehold land during period 0
Reversal of impairment leasehold land during period 0
Reversal of impairment land during period 0
Reversal of impairment land and land improvements during period 0
Reversal of impairment building and building improvements during period [abstract]
Reversal of impairment building during period [abstract]
Reversal of impairment other building during period 0
Reversal of impairment building during period 0
Reversal of impairment Building and building improvements during period 0
Reversal of impairment equipments during period [abstract]
Reversal of impairment office equipments during period 0
Reversal of impairment computer equipments during period 0
Reversal of impairment equipments during period 0
Reversal of impairment furniture fixtures during period 0
Reversal of impairment vehicles during period [abstract]
Reversal of impairment aircrafts helicopters during period 0
Reversal of impairment motor vehicles during period 0
Reversal of impairment vehicles during period 0
Reversal of impairment other fixed assets during period 0
Reversal of impairment tangible assets during period 0
Reversal of impairment intangible assets during period [abstract]
Reversal of impairment computer software during period 0
Reversal of impairment intangible assets during period 0
Reversal of impairment during period 0
[100700] Schedule - Investments

31/03/2011 31/03/2010
Investments, net [abstract]
Current and long-term investments [abstract]
Long-term investments [abstract]
Equity securities long-term [abstract]
Equity securities long-term quoted [abstract]
Equity securities long-term quoted trade 7.6 7.6
Equity securities long-term quoted 7.6 7.6
Equity securities long-term unquoted [abstract]
Equity securities long-term unquoted trade 1,312.9 1,211.7
Equity securities long-term unquoted 1,312.9 1,211.7
Equity securities long-term 1,320.5 1,219.3
Long-term investments 1,320.5 1,219.3
Current and long-term investments 1,320.5 1,219.3
Investments, net 1,320.5 1,219.3
44
[100800] Schedule - Sundry debtors

31/03/2011 31/03/2010
Sundry debtors [abstract]
Sundry debtors, gross [abstract]
Debtors exceeding six months [abstract]
Debtors considered good exceeding six months unsecured 10,050.5 12,761.6
Debtors considered doubtful exceeding six months unsecured 5,579.4 2,742.2
Debtors exceeding six months 15,629.9 15,503.8
Debtors within six months [abstract]
Debtors considered good within six months unsecured 18,325.7 13,029.5
Debtors considered doubtful within six months unsecured 145.8 85.2
Debtors within six months 18,471.5 13,114.7
Sundry debtors, gross 34,101.4 28,618.5
Provision doubtful debts 5,725.2 2,827.4
Sundry debtors 28,376.2 25,791.1
[100900] Schedule - Cash and bank balances

31/03/2011 31/03/2010
Cash bank balance [abstract]
Cash balance hand [abstract]
Cash hand 143.1 65.4
Cash balance hand 143.1 65.4
Bank balances [abstract]
Balance scheduled banks [abstract]
Balance scheduled banks current account 525.5 925
Balance scheduled banks deposit account 2,553.9 3,267.9
Balance scheduled banks 3,079.4 4,192.9
Balance other banks [abstract]
Balance other banks current account 868.3 908.2
Balance other banks deposit account 46.9 117.4
Balance other banks 915.2 1,025.6
Bank balances 3,994.6 5,218.5
Other cash bank balance 26.7 0.8
Cash bank balance 4,164.4 5,284.7
[101000] Schedule - Inventories

31/03/2011 31/03/2010
Inventories [abstract]
Inventories stores spares 10,727.4 10,911.9
Inventories loose tools 200.9 237.4
Inventories transit 527.7 661.1
Inventories waste scrap -4,696.4 -3,132.6
Inventories 6,759.6 8,677.8
45
[101100] Schedule - Other current assets

31/03/2011 31/03/2010
Other current assets [abstract]
Interest income accrued but not due 825.2 768.1
Other current assets 825.2 768.1
[101200] Schedule - Loans and advances

31/03/2011 31/03/2010
Loans advances [abstract]
Secured loans advances [abstract]
Secured loans advances given employees 19.6 32.7
Secured loans advances 19.6 32.7
Unsecured loans advances [abstract]
Unsecured loans advances given subsidiaries 4,679.3 2,915.1
Unsecured loans advances given employees 163 150.6
Unsecured loans advances value be received 6,126.1 8,754.1
Unsecured loans advances 10,968.4 11,819.8
Advance tax paid [abstract]
Other advance taxes 2,683.6 2,491.9
Advance tax paid 2,683.6 2,491.9
Deposit assets [abstract]
Deposits with statutory authorities 134.5 122.1
Deposit assets 134.5 122.1
Loans advances 13,806.1 14,466.5
46
[101300] Schedule - Current liabilities

31/03/2011 31/03/2010
Current liabilities [abstract]
Sundry creditors [abstract]
Creditors due small micro enterprises 0 0
Creditors due others 45,944.3 38,189.4
Sundry creditors 45,944.3 38,189.4
Amount due related parties [abstract]
Amount due subsidiaries 1,175.9 27.2
Amount due related parties 1,175.9 27.2
Customer other advances [abstract]
Advance received against customers 9,519 8,652.6
Customer other advances 9,519 8,652.6
Accrued expenses payable [abstract]
Interest accrued but not due [abstract]
Interest accrued but not due secured loans 206.4 403.8
Interest accrued but not due 206.4 403.8
Accrued expenses payable 206.4 403.8
Deposit liabilities [abstract]
Public deposit payable current 0 0
Deposit liabilities 0 0
Other current liabilities 12,395.5 8,379.5
Current liabilities 69,241.1 55,652.5
[101400] Schedule - Provisions

31/03/2011 31/03/2010
Provisions [abstract]
Provision employees related liabilities [abstract]
Provision gratuity 8,154.9 5,250.6
Provision leave encashment 4,546.4 4,144.8
Provision other employee related liabilities 2,920.9 1,519.3
Provision employees related liabilities 15,622.2 10,914.7
Tax provision [abstract]
Wealth tax provision 15.7 15.2
Tax provision 15.7 15.2
Provisions 15,637.9 10,929.9
[101500] Schedule - Miscellaneous Expenditure Not Written Off

31/03/2011 31/03/2010
Miscellaneous expenditure not written off [abstract]
Miscellaneous expenditure not written off 0 0
47
[101600] Additional Details - Balance Sheet

01/04/2010 01/04/2009
to to
31/03/2011 31/03/2010
Additional information relating to balance sheet items
Additional information regarding share capital [abstract]
Breakup of equity capital [abstract]
Percentage of equity shares held up by government 100.00% 100.00%
Details of deposits [abstract]
Deposits accepted or renewed during period 0 0
Deposits matured and claimed but not paid during period 0 0
Deposits matured and claimed but not paid 0 0
Interest on deposits accrued and due but not paid 0 0
Unpaid dividend 0 0
48
[400100] Notes - Accounting policies and basis of presentation

01/04/2010
to
31/03/2011
Disclosure of accounting policies and
basis of presentation [text block]
Disclosure of basis of presentation
Textual information (4) [See below]
[text block]
Accounting conventions
Basis and presentation of
financial statements disclosure
Materiality concept in
presentation of financial statements
Disclosure of significant accounting
policies [text block]
Income statement policies
Revenue recognition policies Textual information (7) [See below]
Employee benefits policies Textual information (8) [See below]
Termination retirement
benefit plan policies
Defined contribution plan
policies
Defined benefit plan
policies
Other termination
retirement benefits
Provisions contingencies
related policy
Income tax policy
Current tax policy Provision for current tax is made in accordance with the provisions of Income Tax Act, 1961.
Deferred tax policy Textual information (13) [See below]
Assets and liabilities related
policies
Fixed asset policies Textual information (14) [See below]
Impairment of assets policies Textual information (15) [See below]
Depreciation policy Textual information (16) [See below]
D. INVESTMENTS Long-term investments are stated at cost less permanent diminution in value,
Investments relating policies
if any. Current investments are valued at lower of cost and fair market value
Inventories policies Textual information (17) [See below]
Accounts receivable policies
Bad doubtful receivables
recognition policy
S. OTHER LIABILITIES Liabilities which are more than three years old are written back unless
Other policies
such liabilities are specifically known to be payable in the future.
Leases policies Textual information (19) [See below]
Segment reporting policy Textual information (20) [See below]
49
Disclosure of basis of presentation [text block]

ACCOUNTING CONVENTION
i) These Financial Statements have been prepared on going concern concept on accrual basis (except as specifically stated) under historical
cost convention, and are in compliance with generally accepted accounting principles and the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956.
ii) The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and
estimates are recognized in the period in which results are known/materialized.
Basis and presentation of financial statements disclosure

These Financial Statements have been prepared on going concern concept on accrual basis (except as specifically stated) under historical cost
convention, and are in compliance with generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of
the Companies Act, 1956.
Materiality concept in presentation of financial statements

The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and
estimates are recognized in the period in which results are known/materialized.
Revenue recognition policies

G. REVENUE RECOGNITION a) Passenger, Cargo and Mail Revenue are recognized when transportation service is provided. At the end of
each financial year, based on available historical statistical data, a certain estimated percentage of the value of tickets/airway bills remaining
unutilized, is recognized as Revenue. b) Loss or gain on reissue/refund/ involuntary transfer of passengers to other carriers is also included in the
revenue for the period of uplift. c) Blocked Space arrangements/Code share revenue/expenditure is recognized on an actual basis, to the extent of
uplift data received from the code share partners. Wherever details from code share partners are not available, revenue/expenditure is booked to
the extent of documents/information received, and adjustments required, if any, are carried out at the time of such information being received. d)
Income from Interest is recognized on a time proportion basis. Dividend is recognized as income when the right to receive is established. e) The
claims receivable from Insurance Company are accounted for on their acceptance by the Insurance Company. f) Other Operating Revenue is
recognized when goods are delivered or services rendered during the year.
50
Employee benefits policies

48. Employee Benefits: (A) General description of Defined Benefit Plan a) Gratuity: Gratuity is payable to all eligible employees of the Company
on superannuation, death, or permanent disablement, in terms of the provisions of the Payment of Gratuity Act or as per the Company?s Scheme,
whichever is more beneficial. Government vide Gazette Notification dated 18th May 2010 has amended the Payment of Gratuity Act 1972,
whereby the limit of Rs 0.35 million has been enhanced to Rs 1.0 million for employees retiring w.e.f. 24th May 2010. During 2009-10 the
Gratuity Provision was made as per the limits of Rs 0.35 million stating that the additional impact on account of the increase in limits shall be
accounted for in 2010-11. Accordingly, the provision for Gratuity in 2010-11 has been provided as per the revised limit of Rs 1.0 million. The
total amount of Gratuity Provision made in 2010-11 is Rs.3641.9 million out of which Rs.2923.4 million is the additional impact of the revision in
Gratuity Limits from Rs 0.35 million to Rs 1.0 million. b) Leave Encashment: Privilege Leave Encashment is payable to all eligible employees at
the time of retirement upto a maximum of 300 days and Sick Leave encashment is payable to all eligible employees at the time of retirement upto
a maximum of 120 days subject to the condition that the employee should have at least 60 days of Sick Leave to his credit. c) Post Retirement
Medical Benefits: The Company has a Post Retirement Medical Benefit Scheme under which medical benefits are provided to retired employees
and their spouse. d) Others: Apart from the above the company also provided retirement gift to retiring employees and reimbursement of expenses
relating to transportation of personal effects to their home town at the time of retirement.
Defined contribution plan policies

(B) Defined Contribution Plan Employees Provident Fund: The Company has an Employees Provident Fund Trust under the Provident Fund Act
1925, which governs the Provident Fund Plans for eligible employees. The Company as well as the employees contributes 10% of the PF Pay to
the Fund out of which Provident Fund is paid to the employees.
Defined benefit plan policies

(C) Defined Benefit Plans ? Gratuity & Post Retirement Medical Benefits (Unfunded): (Rs in Millions) ParticularsGratuityPost Retirement
Medical Benefits As at 31.03.11As at 31.03.10As at 31.03.11As at 31.03.10 (a)Table for Change in Benefit Obligation: Liability at the beginning
of the year5045.94789.01353.11120.5 Interest Cost403.6349.3115.091.4 Current service cost199.3193.3372.4353.1 Past Service Cost (Vested
Benefit)2609.20.00.00.0 Benefit paid(757.6)(434.8)(325.8)(311.3) Actuarial (gain)/loss on obligations429.8 149.1 57.8 99.4 Liability at the end
of the year7930.25045.91572.51353.1 (b)Table for Fair Value of Plan Assets: Value of Plan Assets at beginning of the year---- Expected return
on Plan Assets---- Contributions757.6 434.8 325.8 311.3 Benefit paid(757.6)(434.8)(325.8)(311.3) Actuarial (gain)/loss on Plan Assets---- Fair
value of Plan Assets at the end of the year---- Total Actuarial Gain/(Loss) on Plan Assets0.00.00.00.0 (c)Table of Recognition of Actuarial
Gains/Losses: Actuarial (Gains)/Losses on obligation for the period429.8 149.1 57.8 99.4 Actuarial (Gains)/Losses on asset for the period----
Actuarial (Gains)/Losses recognized in P&L A/c 429.8 149.1 57.8 99.4 (d)Amount Recognized in the Balance Sheet: Liability at the end of the
year7930.25045.91572.51353.1 Fair value of Plan Assets at the end of the year---- Difference---- Amount Recognized in the Balance
Sheet7930.25045.91572.51353.1 (e)Expense recognized in the P & L Account: Current service cost199.3193.3372.4353.1 Interest
cost403.6349.3115.091.4 Expected return on Plan Assets---- Net actuarial (gain)/loss to be recognized429.8 149.1 57.8 99.4 Past Service Cost
(Vested Benefit)2609.2 0.0 0.0 0.0 Expense recognized in the P & L Account3641.9691.7545.2543.9 (f)Balance Sheet Reconciliation: Opening
Net Liability5045.94789.01353.11120.5 Expense as above3641.9691.7545.2543.9 Benefit Paid(757.6)(434.8)(325.8)(311.3) Net Liability/(Asset)
Recognized in P&L A/c7930.25045.91572.51353.1 (g)Actuarial Assumptions for the year: Discount Rate8.00%8.00%8.00%8.00% Salary
Escalation Rate4.00%4.00% Medical Cost Inflation Rate--4.00%4.00% Attrition Rate2.00%2.00%2.00%2.00%
Other termination retirement benefits

J. RETIREMENT BENEFITS The Retirement Benefits to the employees comprise of Defined Contribution Plans and Defined Benefit Plans. a)
Defined Contribution Plans consist of contributions to Employees Provident Fund and Employees State Insurance Scheme. The Company has
created separate Trusts to administer Provident Fund contributions to which contributions are made regularly. ESI dues are regularly deposited
with government authorities. b) The Company?s Defined Benefit Plans, which are not funded, consist of Gratuity, Leave Encashment including
Sick Leave and Post Retirement Medical Benefits and other benefits. The liability for these benefits except for (c) below is actuarially determined
under the Projected Unit Credit Method at the year end as per Indian Laws.. c) Liability for Gratuity, Leave Encashment, Pension and other
retirement Benefits for staff directly recruited at foreign stations is provided in compliance with local laws prevailing in the respective countries
based on available information as at the year end.
51
Provisions contingencies related policy

Q. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS a) Provisions involving a substantial degree of estimation in
measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of
resources. b) Contingent liabilities exceeding Rs.0.1 million in each case are disclosed in respect of possible obligations that arise from past
events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company. c) Contingent Assets are neither recognized nor disclosed in the financial statements.
Deferred tax policy

Deferred tax is recognised on timing differences between book and taxable profit using the tax rates and laws that have been enacted or
substantively enacted as on the Balance Sheet date. The Deferred tax assets are recognised and carried forward to the extent that there is a virtual
certainty based on operational and financial restructuring, revenue generation and cost reduction programme of the company that the assets will
be realised in the future.
Fixed asset policies

B. FIXED ASSETS i) a) Aircraft are stated at purchase price. Other incidental costs including interest wherever applicable, are also capitalized up
to the date of commercial operation. b) Other assets, including aircraft rotables, are capitalized and stated at historical cost. ii) Expenditure on
major modernization /modification /conversion of aircraft, resulting in increased efficiency/economic life, is capitalized. iii) Aircraft Fleet and
Equipment under leases, in respect of which substantially all the risks and rewards of ownership are transferred to the Company, are considered as
Finance Leases and are capitalized. iv) Physical Verification of Assets Physical Verification of Assets is done on a rotational basis so that every
asset is verified once in every two years and the discrepancies observed in the course of the verification are adjusted in the year in which report is
submitted. v) Gain or loss arising out of sale/scrap of Fixed Assets including aircraft over the net depreciated value is taken to Profit & Loss
account as Non-Operating Revenue or Expenses.
Impairment of assets policies

L. IMPAIRMENT OF ASSETS The carrying values of Fixed Assets of the identified cash-generating unit are reviewed for impairment at each
Balance Sheet date to determine whether there is any indication of impairment. The aircrafts are grouped at the fleet type level to constitute a
cash-generating unit, for comparing the recoverable amount (higher of its net selling price and value in use) with the carrying amount. The net
selling prices of aircraft fleet and equipment are estimated by the management using published sources as available. If the carrying value of a
cash-generating unit exceeds its estimated recoverable amount an impairment loss is recognized in the Profit & Loss Account and the asset value
of the cash-generating unit is reduced to its recoverable amount
Depreciation policy
C. DEPRECIATION a) Depreciation is provided on all assets on straight-line method. b) The rates adopted are in accordance with the manner
prescribed under Schedule XIV of the Companies Act, 1956 except for the following : i) New Fleet of Boeing and A-320 family aircraft are
depreciated upto 95% of the block value over 20 years instead of 16.96 years. ii) Airframe / Aero Engine Rotables are depreciated up-to 95% of
the value over the residual average useful life of the related fleet. iii) Increase/decrease in cost arising on account of conversion of foreign
currency liability for acquisition of fixed assets is amortized over the residual life of the respective assets including the year of conversion. iv)
Electrical fittings, Typewriter & Office Appliances, Other General Equipment and Cabin Catering Equipment are depreciated @ 6.33% instead of
4.75% v) Motor Cars are depreciated at 20% instead of 9.5% vi) Depreciation on additions to ?Rotables? and ?Other Fixed Assets? is provided
for the full year in the year of acquisition and no depreciation is provided in the year of disposal. c) Major modifications /refurbishment,
modernization/ conversion carried to leased assets are shown under improvement to leasehold assets and amortized over the balance period of
lease. d) Leasehold Land other than perpetual lease is amortized over the period of lease. e) Intangible assets are amortized over the estimated
useful life. f) Assets of small value not exceeding Rs.5000 in each case are fully provided for/charged off.
52
Inventories policies
E. INVENTORIES i) Inventories are stated at cost on weighted average basis. ii) Obsolescence provision for aircraft stores and spare parts: a)
Provision is made for the non-moving inventory exceeding a period of five years (net of realizable value of 5%) except for (b) & (c). b) Provision
is made in full (net of estimated realizable value) for aircraft fleet which has been phased out. c) Obsolescence provision in respect of inventories
exclusively relating to aircraft on dry/wet lease, is made on the basis of the completed lease period compared to the total lease period as at the
year-end. iii) Obsolescence provision for non-aircraft stores and spares is made for non-moving inventory exceeding a period of five years
Bad doubtful receivables recognition policy

H. PROVISION FOR DOUBTFUL DEBTS Debts pertaining to the Govt/Govt Departments/Public Sector Undertakings are provided for if they
are more than three years old except for debts which are known to be recoverable with certainty. All other debts are provided for, if they are either
more than three years old or specifically known to be doubtful.
Leases policies
M. OPERATING LEASE a) Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased assets
are classified as Operating Lease and Lease rental payable for the year is charged to Profit & Loss Account. b) Contributions made to lessors on
account of Maintenance Reserve for which, maintenance is expected to arise during the lease period is treated as a Prepaid Expense. These
contributions are adjusted to expense whenever the maintenance expenditure arises and in case of redelivery of aircraft to the lessor, balance in
maintenance reserve is charged as expense. All other contributions towards maintenance reserve are charged off to the revenue in the year of
payment.
Segment reporting policy

36. Segment Reporting: a) The Company is engaged in airline related business, which is its primary business segment, and hence, segment results
are not disclosed. The details of geographical area wise revenue earned (derived by allocating revenue to the area in which the sales were made)
are given hereunder: (Rs in Millions) Particulars2010-112009-10 a)USA/Canada15044.214495.4 b)UK/Europe7757.97791.1 c)Asia (excluding
India),21524.021790.3 Africa & Australia d)India95417.883543.5 Total139743.9127620.3 b) The major revenue-earning asset of the Company is
the aircraft fleet, which is flexibly deployed across its worldwide route network. There is no suitable basis for allocation of assets and liabilities to
geographical segments. Consequently area-wise assets and liabilities are not disclosed.
[401000] Notes - Related Parties

01/04/2010
to
31/03/2011
Disclosure of related parties [text block]
Details of transactions with related parties aggregated category wise [text block] Textual information (21) [See below]
53
Details of transactions with related parties aggregated category wise [text block]
37. Related Party Transactions:
Disclosures as required by Accounting Standard (AS-18) issued by the Institute of Chartered Accountants of India on ?Related Party Disclosures?
are given below:
As on 31 st March 2011, the Board comprised of the following members:
A. Key Managerial Personnel & Relatives:
Name Position on Board Designation
CMD
Mr. Arvind Jadhav
1 Chairman & Managing Director

CMD
Mr.Rohit Nandan (*)
Govt. Nominee
AS & FA, Ministry of Civil Aviation & Director General Civil
2 Mr. E.K. Bharat Bhushan
Aviation.
Govt. Nominee
3 Mr. Prashant Sukul Joint Secretary, Ministry of Civil Aviation
Functional Director
4 Mr.Amod Sharma SBU Head (Related Business)
(ceased w.e.f. 1 st February
2011)
Functional Director
5 Mr. Anup K. Srivastava Director (Personnel)
(ceased w.e.f. 22 nd June 2011)
Functional Director
6 Ms. Anita Khurana SBU Head (Cargo)
(ceased w.e.f. 14 th July 2011)
54
7 Mr. Vipin K. Sharma Functional Director SBU Head - MRO (Eng. & Comp)
8 Mr. K.M. Unni Functional Director SBU Head ? MRO (Airframes)
Functional Director
9 Mr. S. Chandrasekhar Director (Finance)
(ceased w.e.f. 31 st August
2011)
Independent Director
10 Mr Anand Mahindra Vice Chairman & Managing Director, Mahindra & Mahindra Ltd.
(ceased w.e.f. 9 th March 2011)
11 Dr. Amit Mitra Secretary General, FICCI
(ceased w.e.f. 18 th March
2011)
Managing Director,
12 Mr. Harshavardhan Neotia Independent Director
Ambuja Reality Development Ltd.
Air Chief Marshal Fali H Major

13 Independent Director Former Chief of Air Staff
(Retd)
Managing Director,
14 Mr.M.A. Yusuffali EMKE Group,
Abu Dhabi , UAE.
(*) Mr. Arvind Jadhav was the CMD upto 12 th August 2011 and Mr.Rohit Nandan
was appointed as the CMD w.e.f. 12 th August 2011.
B. Transactions with Key Managerial Personnel:
(i) There are no other transactions with key managerial personnel except Remuneration and Perquisites to Chairman & Managing Director
and Functional Directors.
(ii) Transactions such as providing Airline related services in the normal course of Airline business are not included above.
55
C. Joint Working Group Arrangement:
a) Joint Working Group with M/s.Hindustan Aeronautics Ltd (HAL) Bangalore .
During the year, the Company?s share of profit from Joint Working Group arrangement with HAL for Ground Handling arrangement at
Bengaluru Airport was Rs 10.7 Million (Previous Year : Rs 9.5 million) .
HAL has withheld an amount of Rs.99.6 million (Previous Year - Rs.99.6 million) from the settlement of AI profit share in the HAL- AI JWG at
Bengaluru due to pending litigation.
b) Joint Venture with M/s.Singapore Airport Terminal Services (SATS), Singapore :
The company has entered into a JV agreement with SATS, Singapore in the equity ratio of 50:50 to provide GH services to airlines at certain
metro airports. This was in pursuance of GOI Notification on the GH policy. The JV Company was formed on 20 th April, 2010 and AI SATS
had an initial contribution of Rs.50000 each. Prior to the formation of the Company, since the airports at HYD and BLR were made operational
on 23 rd March 2008 and 24 th May, 2008 respectively the JV between AI & SATS operated under an Association of Persons (AOP).
A Business Transfer Confirmation Agreement (BTA) was executed to transfer the entire asset and liabilities on a ?slump sale? basis to the new
company on 01 st August 2010 vide BTA between AI SATS & the company. The BTA was executed on 30 th March 2011 with a total value of
Rs.872.3 million of which AI share was 50% i.e. Rs.436.1 million. An amount of Rs.436.1 million (Previous Year: Rs.333.9 million) from the
BTA, has been shown as contribution towards capital investment in the JV company and transferred to Share Capital Suspense Account. In lieu of
this, the company?s share of the profit / loss of the JV as AOP has been recognized in the accounts and an amount of Rs.31.9 million has been
credited to Capital Reserve. AI SATS Airports Services Pvt. Ltd has on 11 th May 2011 issued 40419975 ordinary shares of Rs.10 each at a
premium of Rs.0.79 i.e. Rs.10.79 per share and has adjusted Rs.436.1 million.
AI SATS JV also started operations in the new terminal at Delhi T3 partly w.e.f. 20 th July 2010 and then progressively from Winter Schedule
2010. The staff of AI Delhi was transferred on deputation from July 2011.
The liability for provision of GH services by the JV for AI flights at HYD and BLR has been provided under the head Handling Charges based on
the rates mutually arrived at between both parties. The total liability provided in the Books on this account as on 31 st March 2011 is Rs.1441.0
million (Previous Year Rs.860.5 million). As against this, AI had billed AI SATS Rs.206.40 million in 2009-10 and Rs.348.6 million in 2010-11
in BLR and Rs.237.20 million in 2009-10 and Rs.95.30 million in 2010-11 in HYD totaling to Rs.887.4 million. Thus the balance confirmation
from AI SATS has not been obtained since the accounts are subject to reconciliation.
Whilst the rates for HYD & BLR has been decided, the rates for DEL are yet to be decided based on cost data to be submitted by AI SATS
Airports Services Pvt. Ltd.
56
Meanwhile an adhoc provision of Rs.161.1 million has been made in the Books based on the documents provided by AI SATS relating to the
manpower expenditure at T3, which are subject to verification.
D. No loans or credit transactions were outstanding with Directors or Officers of the Company or their relatives at the end of the year
except Rs 0.02 million (Previous Year & Maximum Balance during the year: Rs.0.04 million) on account of Housing Loan outstanding against
one of the Functional Directors which is required to be disclosed in accounts under the Companies Act, 1956.
E. In the opinion of the Company, the agreements with various Airlines, private parties termed as ?Joint Operations/Code-share
Agreements? do not fall within the definition of Joint Venture as mentioned in Accounting Standard (AS-18) and (AS-27), hence are not included
in above disclosures.
[401100] Notes - Leases

01/04/2010
to
31/03/2011
Disclosure of leases [text block] Textual information (22) [See below]
57
Disclosure of leases [text block]

39. Leases:
(A) Finance Lease
a) Aircraft Fleet and Equipment acquired subsequent to 1 st April 2001 , under finance leases are treated as if they had been purchased
outright. The cost of these assets taken on lease is Rs. 162061.3 million (Previous Year: Rs.162123.9 million). The future lease obligation is Rs.
120491.2 million as at March 31, 2011 (Previous Year: Rs.133373.7 million).
b) Liability on account of future minimum lease rentals is as under:
(Rupees in Million)
Particulars As at 31.03.11 As at 31.03.10
a) Outstanding balance of
minimum lease payments
including interest thereon
- Not later than one year 14252.7 14240.5
- Later than one year and 51848.8 53699.5
not later than five year
- Later than five years 63807.6 77086.6
Total 129909.1 145026.6
b) Present Value of (a) above

- Not later than one year 12659.8 12242.7
- Later than one year and 46427.8 47479.1
not later than five year
- Later than five years 61403.6 73651.9
Total (*) 120491.2 133373.7
c) Finance Charges 9417.9 11652.9
(B) Operating Lease
a) The Company has taken aircraft on non-cancelable operating lease. The future minimum lease rental payment, as at March 31, 2011, is Rs.
14016.5 million (Previous Year: Rs.15793.1 million).
Liability on account of future minimum lease rentals in respect of leases acquired after April 01, 2001:
(Rupees in Million)
a) Not later than one year 3954.7 4919.0

b) Later than one year and 10054.3 10245.2
58
Not later than five years

c) Later than five years 7.5 628.9
Total 14016.5 15793.1
However, in case of premature termination, the Lessee is required to pay the Lessor as per the terms of the agreement which includes balance
lease rent and losses suffered by the Lessor due to early termination like swap cost, unwinding charges etc.
Lease rent expenses, in respect of aircraft taken on lease recognized in Profit & Loss Account for the year is Rs. 5820.7 million (Previous Year
Rs 8168.1 million) this amount includes Rs 195.49 million paid towards Lease rent up to the termination date for B747-400 aircraft VT-ESM for
which lease agreement was terminated during the year pursuant to the aircraft being damaged and grounded during 2009-10.
b) The Company has taken various residential/commercial premises under cancellable operating lease. These lease agreements are normally
renewed on expiry.
c) The Company has also taken Vehicles and Office Equipment on operating lease with option to purchase but title may or may not eventually
be transferred. These assets are scattered at various stations and cumulatively not significant. Complete details of future obligation in this respect
could not be compiled, amount whereof is not material, hence not disclosed.
[401200] Notes - Earnings Per Share

01/04/2010
to
31/03/2011
Disclosure of earnings per share [text block] Textual information (23) [See below]
Disclosure of earnings per share [text block]

43. Earning Per Share
(Rupees in Million)
Profit/(Loss) After Tax & Before Extra-Ordinary Items (70660.3) (56351.0)

Less : Extra-Ordinary Items (2008.7) (826.6)
Profit/(Loss) after Tax & Extra- Ordinary Items (68651.6) (55524.4)
Weighted Average No. of Equity Shares 1181712329 149383562
EPS Before Extra-Ordinary Items (Rs per Share) (59.80) (377.2)
EPS After Extra-Ordinary Item (Rs per Share) (58.10) (371.7)
59
[401300] Notes - Subsidiary Information
01/04/2010 to 31/03/2011
Details of subsidiaries

1 2 3
Airline Allied Services Air India Air Transport
Name of subsidiary Air India Charters Limited
Limited Services Limited
Country of incorporation or residence of
INDIA INDIA INDIA
subsidiary
CIN of subsidiary company U62100MH1971GOI015328 U51101DL1983GOI016518 U63090DL2003PLC120790
Section under which company became
Section 4(1)(a) Section 4(1)(a) Section 4(1)(a)
subsidiary
Whether subsidiary has filed balance sheet Yes Yes Yes
SRN of filing of balance sheet by subsidiary P85597474 P86354560 P85297562
Whether financial year of subsidiary coincides
Yes Yes Yes
with financial year of holding company
Financial year of subsidiary [abstract]
Start date of accounting period of subsidiary 01/04/2010 01/04/2010 01/04/2010
End date of accounting period of subsidiary 31/03/2011 31/03/2011 31/03/2011
Date of becoming subsidiary 01/04/2007 01/04/2007 01/04/2007
Number of shares held of subsidiary [shares] 30,00,000 [shares] 2,25,000 [shares] 50,000
Face value of shares of subsidiary [INR/shares] 100 [INR/shares] 100 [INR/shares] 10
Paid up value of shares held of subsidiary 300 22.5 0.5
Percentage of share holding in subsidiary 100.00% 100.00% 100.00%
Proportion of voting power in subsidiary [pure] 1 [pure] 1 [pure] 1
Key information about subsidiary [abstract]
Reporting currency of subsidiary INR INR INR
Exchange rate as applicable for subsidiary 0 0 0
Share capital of subsidiary 300 50 1,000
Reserves and surplus of subsidiary 406.2 0 0
Total assets of subsidiary 37,467.7 22.5 0.5
Total liabilities of subsidiary 37,467.7 22.5 0.5
Investment of subsidiary 0 0 0
Total income of subsidiary 13,516.6 3,582.6 486.03
Profit before tax of subsidiary -3,916.9 -291.23 -5.9
Provision for tax of subsidiary 4.7 0 0.45
Profit after tax of subsidiary -3,912.2 -291.23 -1.8
Proposed dividend of subsidiary 0 0 0
Details of aggregate amount not included by
parent company
Aggregate amount of subsidiary not
3,912,200 291,226 1,785
accounted for current year
accounted for previous years since it became 7,146,900 5,537,727 25,225
subsidiary
60
Details of subsidiaries

4 5 6
Air-India Engineering Hotel Corporation of India
Name of subsidiary Vayudoot Ltd
Services Limited Limited
Country of incorporation or residence of
INDIA INDIA INDIA
subsidiary
CIN of subsidiary company U74210DL2004PLC125114 U55101MH1971GOI015217 U62100DL1981GOI011262
Section under which company became
Section 4(1)(a) Section 4(1)(a) Section 4(1)(a)
subsidiary
Whether subsidiary has filed balance sheet Yes Yes Yes
SRN of filing of balance sheet by subsidiary P84333210 P87606570 P87178505
Whether financial year of subsidiary coincides
Yes Yes Yes
with financial year of holding company
Financial year of subsidiary [abstract]
Start date of accounting period of subsidiary 01/04/2010 01/04/2010 01/04/2010
End date of accounting period of subsidiary 31/03/2011 31/03/2011 31/03/2011
Date of becoming subsidiary 01/04/2007 01/04/2007 01/04/2007
Number of shares held of subsidiary [shares] 50,000 [shares] 40,60,000 [shares] 3,64,200
Face value of shares of subsidiary [INR/shares] 10 [INR/shares] 100 [INR/shares] 1,000
Paid up value of shares held of subsidiary 0.5 406 364.2
Percentage of share holding in subsidiary 100.00% 100.00% 100.00%
Proportion of voting power in subsidiary [pure] 1 [pure] 1 [pure] 1
Key information about subsidiary [abstract]
Reporting currency of subsidiary INR INR INR
Exchange rate as applicable for subsidiary 0 0 0
Share capital of subsidiary 100 410 500
Reserves and surplus of subsidiary 0 0 35.44
Total assets of subsidiary 1.43 467.15 937.04
Total liabilities of subsidiary 1.43 467.15 937.04
Investment of subsidiary 0 0 0
Total income of subsidiary 0 535.76 0
Profit before tax of subsidiary 0.02 -267.1 -0.42
Provision for tax of subsidiary 0 0 0
Profit after tax of subsidiary 0.02 -267.1 -0.42
Proposed dividend of subsidiary 0 0 0
Details of aggregate amount not included by
parent company
16 267,101 420
accounted for current year
accounted for previous years since it became 934 349,386 2,579,398
subsidiary
[401400] Notes - Deferred Tax Assets and Liabilities

01/04/2010
to 31/03/2010
31/03/2011
Disclosures of deferred tax assets and liabilities [text block] Textual information (24) [See below]
Deferred tax asset [abstract]
Deferred tax asset other 28,425.2 28,425.2
Deferred tax asset 28,425.2 28,425.2
61
Disclosures of deferred tax assets and liabilities [text block]

44. Deferred Tax Asset
The Company is taking several initiatives towards cost cutting and revenue enhancement during the year which are expected to result in improved
operational performance. These measures which are aimed at operational & financial restructuring included the following:
Complete route rationalization of erstwhile AI & IA routes & elimination of route networks involving parallel operations ; Rationalization of
certain loss making routes ; Induction of brand new aircraft on several domestic & international routes to increase passenger appeal ; Phasing out
of old fleet and consequential reduction in maintenance cost ; Return of leased aircraft at the end of their tenure or prematurely ; Freezing of
employment in non-operational areas ;
Redeployment of staff to curb in fructuous expenditure ; Enhanced utilization of the new fleet resulting in production of higher ASKMs ;
Grounding of ageing fleet including B747-400 which would be used only for certain lines of operations and for operating VVIP flights. GOI has
already been approached to reimburse the expenditure incurred on account of these aircraft. GOI has in principle agreed to this and is in the
process of reimbursing Rs 3420.0 million for the year 2011-12. As regards 2010-11 a separate claim has been made on GOI for reimbursement of
cost including interest and service tax amounting to Rs.4218.5 million. Relocation of EDs / IBOs from abroad to India ; Closure of Overseas
Offline Offices at certain locations; Increase in passenger / cargo revenue, excess baggage revenue through aggressive sales & marketing efforts
and a separate cell for attracting government traffic ; Leveraging the assets of the Company to increase MRO revenue and revenue from
Company?s real estate properties ; Up gradation of IT Infrastructure & Implementation of Quick Win IT Solutions ; Introduction of PSS
(Passenger Services System) to have a single code and SAP ERP based Solutions throughout the Organization which would substantially benefit
the Organization in terms of increase in revenue and decrease in cost; Joining one of the Alliances & thereby providing passenger with seamless
connectivity across the globe on Star Carriers ; Dismantling of the Frankfurt hub and establishment of the Delhi hub resulting in substantial
savings due to restructuring of routes; Establishment of Integrated Operations Control Centre ; Proposed operationalization of Subsidiary
Companies such as AIATSL & AIESL and transfer of manpower and equipment and treating them as Independent Profit Centers ; Establishment
of proposed JVs with EADS for Airbus Airframe Repairs including Engines & Components with GE for repair of GE90 & GEnx engines with
Boeing to service the 777 & 787 fleet ; Travel of GOI traffic on AI ; Induction of Independent Directors on the Board of AI & formation of Board
Committees to monitor closely the financial & operating performance of the Company ; M/s. SBI Caps have recommended a Financial
Restructuring Plan (FRP) which would involve, inter alia, conversion of working capital loans into term loans with longer maturities at lower rate
of interest, issue of cumulative redeemable preference share guaranteed by the Government. This would have an effect of reducing the interest
burden and will result in an annual savings estimated by M/s. SBI Caps of Rs.10000.0 million per annum, besides de-stressing the cash flow. The
FRP was reviewed by Group of Ministers, who in turn, referred it to the Group of Officers in the Finance Ministry to furnish their
recommendations / observations. Based on the various discussions, the Group of Officers had with M/s. SBI Caps, M/s. Deloitte (who were
appointed as our independent Aviation Consultants to vet the Turn around Plan of Air India), the Group of Officers submitted their report to the
Group of Ministers in the meeting held on 28 th October 2011. As per the said report, the Group of Officers has recommended a moderate growth
scenario wherein the target load factor has been set at 73% by 2015 and 75% by 2020. Under this scenario, Government of India would have to
bring in Rs.67500.0 million in F.Y. 2012 (including Rs.12000.0 million provided in the Union Budget), infusion of equity to fund cash deficits
upto F.Y. 2021 of Rs.45520.0 million, equity infusion to fund principal and interest repayment in respect of guaranteed aircraft loan of Rs.
189290.0 million subject to achievement of certain milestones. Besides, Government would also provide a buy back guarantee for Cumulative
Redeemable Preference Shares (CRPS) (F.Y. 2027 ? 2032 of Rs. 74080.0 million). FRP also involves regulatory forbearance from RBI in respect
of restructuring and provisioning norms. In view of the above measures, the airline will turn EBDITA (Earnings before Depreciation, Interest,
Taxes and Amortization) positive in 2013, Cash positive by 2018 and PBT (Profit before Tax) and Net Worth positive by 2020 .
The Management is therefore confident of utilizing the Net Deferred Tax Asset to the extent of Rs 28,425.2 million already recognized as detailed
below, during the initial two years (2007-08 & 2008-09) of the formation of the company against the future tax liability. In the subsequent years,
the Deferred Tax Asset is being recognized towards unabsorbed depreciation to the extent of Deferred Tax Liability. As a prudent measure, the
Company has ceased to recognize excess of Deferred Tax Assets over Deferred Tax Liabilities as further Net Deferred Tax Asset till the above
measures, which are in various stages of implementation, enable the company to project a sustainable profit. As on 31 st March 2011, the details
of the major components of deferred tax assets and liabilities are as under:
(Rs in Million)
As on 31.03.09 (Recognized in DTA/DTL Recognized (2009-10 & Total DTA as on

Particulars
Accounts) 2010-11) 31.03.11
62
(A) Deferred Tax Liability
(i) Related to Fixed Assets 28606.5 19462.1 48068.6
Sub-Total (A) 28606.5 19462.1 48068.6
(B) Deferred Tax Asset
(i) Unabsorbed Depreciation 20356.8 19462.1 39818.9

(ii) Business Loss 32127.9 32127.9
(iii) Other Disallowances under Income
4547.0 4547.0
Tax Act
Sub-Total (B) 57031.7 19462.1 76493.8
Deferred Tax/(Liability) (Net) 28425.2 0.0 28425.2
[401410] Notes - Net Deferred Tax Assets

31/03/2011 31/03/2010
Net deferred tax assets [abstract]
Net deferred tax asset 28,425.2 28,425.2
[401420] Notes - Net Deferred Tax Liabilities

31/03/2011 31/03/2010
Net deferred tax liabilities [abstract]
63

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Air India Limited

Standalone Balance Sheet for period 01/04/2010 to 31/03/2011

[610000] General information about financial statements

[630000] Disclosures - Directors report

Textual information (1)

Disclosure in board of directors report [text block]

1. CIVIL AVIATION SCENARIO

Forecast highlights - 2011 :

2. REVIEW OF PERFORMANCE ?HIGHLIGHTS

2.1 Review of Company?s Performance :

2.2 Financial Performance:

Particulars 2010-11 2009-10

2.3 Physical Performance :

Particulars Unit 2010-11 2009-10

ASKMs(Scheduled Services) Million 45608 44723

ASKMs (Total) Million 46123 45748

PKMs (Scheduled Services) Million 30168 28965

PKMs (Total) Million 30448 29448

ATKMs(Scheduled Services) Million 6322 6053

ATKMs (Total) Million 6381 6179

RTKMs (Scheduled Services) Million 3677 3533

RTKMs (Total) Million 3700 3576

Passenger Load Factor % 66.1 64.8

Overall Load Factor % 58.2 58.4

No.of Pax Carried (Scheduled Services) Million 12.78 11.75

No.of Pax Carried (Total) Million 13.08 11.97

Freight Carried Tonnes 174466 154752

Aircraft Utilisation(per aircraft) Rev.Hrs. 3448 3511

Total Revenue Hours Flown No. 391401 359778

3. OTHER FINANCIAL INFORMATION

3.1 Share Capital

Authorised Share Capital

Issued, Subscribed & Paid-up Share Capital

3.2 Aircraft Project Loans :

Total Loan due as on 1 April 2010 1,98,801

Add : Amount drawn during April 2010 to March 2011 22,939

Less : Amount repaid during April 2010 to March 2011 14,954

Less : Exchange adjustments due to revision in rates of Currencies (1,003)

Add : Interest accrued and due as on 31 March 2011 1,098

Balance as on 31 March 2011 2,06,881

3.3 Annual Plan Outlay 2010-11

Payment to aircraft/spare engine manufacturers 39,463 18,153

Interest to be Capitalised 2,515 1,356

Other capital expenditure 2,370 2,680

Equity infusion by Government of India 12,000 12,000

TOTAL PLAN OUTLAY 56,348 34,190

3.4 Annual Plan Outlay 2011-12

3.5 Twelfth Five Year Plan ? 2012-13 to 2016-17 :

Aircraft Projects 111,877

Non-Aircraft Projects 18,650

Budgetary support from Government 199,110

Total Plan Outlay 329,637

Approval from the Ministry of Civil Aviation is awaited.

The following are the wholly owned subsidiaries of the Company :

Air India Air Transport Services Limited

Air India Charters Limited

Air India Engineering Services Limited

Airline Allied Services Limited

Hotel Corporation of India Limited

IAL Airport Services Limited *

5. DIRECTORS? RESPONSIBILITY STATEMENT

The Board of Directors of the Company confirm :

7. CORPORATE SOCIAL RESPONSIBILITY