a) Basis of preparation of financial statements
 
 The financial statements of the Company have been prepared in
 accordance with generally accepted accounting principles in India
 (''Indian GAAP''). The Company has prepared these financial statements to
 comply in all material respects with the accounting standards notified
 under the Companies (Accounting Standards) Rules, 2006, (as amended)
 and the relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on an accrual basis and under the
 historical cost convention. The accounting policies adopted in the
 preparation of financial statements are consistent with those of
 previous year.
 
 The current year''s financial statements have been prepared and
 presented in accordance with the requirements of the revised Schedule
 VI, as notified under the Companies Act, 1956 and applicable to the
 Company. The Company has also reclassified previous year figures in
 accordance with these requirements.
 
 The Company has achieved significant growth in revenues for the year
 and has also managed to achieve better yields towards the end of the
 year. However, the Company''s operating results has been materially
 affected by various factors, particularly high aircraft fuel costs,
 significant depreciation in the value of the currency and general
 economic slowdown. The Company has been actively implementing various
 measures such as fare and route rationalization, optimizing aircraft
 utilization, improving operational efficiencies, renegotiation of
 contracts and other cost control measures to improve the Company''s
 operating results and cash flows. Subsequent to the close of the
 financial year, business conditions have improved and the Company
 expects to perform better in the future. In addition, the Company
 continues to explore various options to raise finance in order to meet
 its short term and long term obligations, with the promoters infusing
 additional capital during and post the year end. The Company believes
 that these measures will not only result in sustainable cash flows, but
 also enhance the Company''s plans of expansion. Accordingly, the
 Company''s financial statements have been prepared on a going concern
 basis whereby the realization of assets and discharge of liabilities
 are expected to occur in the normal course of business.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with Indian GAAP
 requires management to make judgments, estimates and assumptions that
 affect the reported amounts of revenues, expenses, assets and
 liabilities and the disclosure of contingent liabilities, at the end of
 the reporting period.  Although these estimates are based on
 management''s best knowledge of current events and actions, uncertainty
 about these assumptions and estimates could result in the outcomes
 requiring a material adjustment to the carrying amounts of assets or
 liabilities in future periods.
 
 c) Tangible fixed assets
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Any trade discounts and rebates are deducted in
 arriving at the purchase price.  For accounting periods commencing on
 or after December 7, 2006, the Company adjusts exchange differences
 arising on translation / settlement of long term foreign currency
 monetary items pertaining to the acquisition of a depreciable asset to
 the cost of the asset and depreciates the same over remaining life of
 the asset.
 
 Subsequent expenditure related to an item of fixed asset is added to
 its book value only if it increases the future benefits from the
 existing asset beyond its previously assessed standard of performance.
 All other expenses on existing fixed assets, including day-to-day
 repair and maintenance expenditure and cost of replacing parts, are
 charged to the statement of profit and loss for the period during which
 such expenses are incurred.
 
 Gains or losses arising from derecognition of fixed assets are measured
 as the difference between the net disposal proceeds and the carrying
 amount of the asset and are recognized in the statement of profit and
 loss when the asset is derecognized.
 
 Borrowing costs relating to acquisition of fixed assets which takes
 substantial period of time to get ready for its intended use are also
 included to the extent they relate to the period till such assets are
 ready to be put to use.
 
 The cost of fixed assets not ready for intended use before such date is
 disclosed under capital work- in-progress.
 
 d) Depreciation on tangible fixed assets
 
 Depreciation is provided using the straight line method in the manner
 specified in Schedule XIV to the Act, at the rates prescribed therein
 or at the rates based on management''s estimate of the useful lives of
 such assets, whichever is higher, as follows:
 
 Asset Description                         Percentage
 
 Office Equipment                            4.75%
 
 Computers                                  16.21%
 
 Furniture and Fixtures                      6.33%
 Motor Vehicles                     9.50% - 11.31%
 
 Plant and Machinery                         4.75%
 
 Aircrafts                                   5.60%
 
 Rotable and Tools                           5.60%
 
 Leasehold improvements are amortised over the estimated useful lives or
 the remaining primary lease period, whichever is less. Assets
 individually costing Rupees five thousand or less are fully depreciated
 in the year of purchase.  
 
 e) Intangible assets
 
 Intangible assets acquired separately are measured on initial
 recognition at cost. Following initial recognition, intangible assets
 are carried at cost less accumulated amortization and accumulated
 impairment losses, if any. Intangible assets are amortized on a
 straight line basis over the estimated useful economic life.
 
 Costs incurred towards purchase of computer software are depreciated
 using the straight-line method over a period based on management''s
 estimate of useful lives of such software being 3 years, or over the
 license period of the software, whichever is shorter.
 
 f) Leases
 
 Where the Company is a lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term. Lease management fee, legal charges and other initial direct
 costs of lease are capitalized.
 
 Sale and lease back arrangements
 
 Profit or loss on sale and lease back arrangements resulting in
 operating leases are recognized immediately in case the transaction is
 established at fair value. If the sale price is below fair value, any
 profit or loss is recognised immediately except that, if the loss is
 compensated by future lease payments at below market price, it is
 deferred and amortised in proportion to the lease payments over the
 period for which the asset is expected to be used. If the sale price is
 above fair value, the excess over the fair value is deferred and
 amortized over the period for which the asset is expected to be used.
 
 The sale and lease back arrangements entered into by the Company are as
 per the standard commercial terms prevalent in the industry. The
 Company does not have an option to buy back the aircraft, nor does it
 have an option to renew or extend the lease after the expiry of the
 lease.
 
 g) Borrowing costs
 
 Borrowing cost includes interest, amortization of ancillary costs
 incurred in connection with the arrangement of borrowings and exchange
 differences arising from foreign currency borrowings to the extent they
 are regarded as an adjustment to the interest cost.
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 h) Impairment of tangible and intangible assets
 
 The Company assesses at each reporting date whether there is an
 indication that an asset may be impaired. If any indication exists, or
 when annual impairment testing for an asset is required, the Company
 estimates the asset''s recoverable amount. An asset''s recoverable amount
 is the higher of an asset''s or cash-generating unit''s (CGU) net selling
 price and its value in use. The recoverable amount is determined for an
 individual asset, unless the asset does not generate cash inflows that
 are largely independent of those from other assets or groups of assets.
 Where the carrying amount of an asset or CGU exceeds its recoverable
 amount, the asset is considered impaired and is written down to its
 recoverable amount. In assessing value in use, the estimated future
 cash flows are discounted to their present value using a pre-tax
 discount rate that reflects current market assessments of the time
 value of money and the risks specific to the asset. In determining net
 selling price, recent market transactions are taken into account, if
 available. If no such transactions can be identified, an appropriate
 valuation model is used.
 
 The Company bases its impairment calculation on detailed budgets and
 forecast calculations which are prepared separately for each of the
 Company''s cash-generating units to which the individual assets are
 allocated. These budgets and forecast calculations are generally
 covering a period of five years. For longer periods, a long term growth
 rate is calculated and applied to project future cash flows after the
 fifth year.
 
 Impairment losses of continuing operations, including impairment on
 inventories, are recognized in the statement of profit and loss. After
 impairment, depreciation is provided on the revised carrying amount of
 the asset over its remaining useful life.
 
 An assessment is made at each reporting date as to whether there is any
 indication that previously recognized impairment losses may no longer
 exist or may have decreased. If such indication exists, the Company
 estimates the asset''s or cash-generating unit''s recoverable amount. A
 previously recognized impairment loss is reversed only if there has
 been a change in the assumptions used to determine the asset''s
 recoverable amount since the last impairment loss was recognized. The
 reversal is limited so that the carrying amount of the asset does not
 exceed its recoverable amount, nor exceed the carrying amount that
 would have been determined, net of depreciation, had no impairment loss
 been recognized for the asset in prior years. Such reversal is
 recognized in the statement of profit and loss.
 
 i) Inventories
 
 Inventories comprises of expendable aircraft spares and miscellaneous
 stores. Inventories have been valued at cost or net realizable value,
 whichever is lower after providing for obsolescence and other losses,
 where considered necessary. Cost includes custom duty, taxes, freight
 and other charges, as applicable and is determined on a weighted
 average basis.
 
 j) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured. The revenue is recognized net of VAT / Service tax
 (if any).
 
 Service Income
 
 Passenger revenues and cargo revenues are recognised as and when
 transportation is provided i.e.  when the service is rendered. Amounts
 received in advance towards travel bookings / reservations are shown
 under current liabilities as unearned revenue.
 
 Revenues from special service requests in the nature of fees charged
 from passengers for reservation, changes in itinerary, cancellation of
 flight tickets etc. are recognised as revenues on rendering of the
 related services.
 
 Income in respect of hiring / renting out of equipments and spare parts
 is due on time proportion basis at rates agreed with the lessee. Due to
 significant uncertainties involved in realization, the income is
 recorded on settlement with the lessee or actual realization, whichever
 is earlier.
 
 Training Income
 
 Training Income is recognized upon completion of the related training
 activities.
 
 Export Incentives
 
 Export incentives are recognized on availment of the benefits under the
 respective schemes.
 
 Interest
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable. Interest income
 is included under the head Other Income in the statement of profit
 and loss.
 
 k) Manufacturers incentives
 
 Cash Incentives
 
 The Company receives incentives from Original equipment manufacturers
 (''OEM''s'') of aircraft components in connection with acquisition of
 aircrafts. As the related aircrafts are held under operating lease by
 the Company, these incentives are recognized as income coinciding with
 delivery of the related aircrafts.
 
 Non-cash Incentives
 
 Free of cost spare parts received in respect of purchase of aircraft''s
 are recorded at a nominal value.
 
 Non cash incentives relating to aircrafts taken on finance lease are
 recorded as and when due to the Company by setting up a deferred asset
 and a corresponding incentive. These incentives are recognized under
 the head other income in the statement of profit and loss on a straight
 line basis over the remaining lease period of the related lease.
 
 The deferred asset explained above is reduced on the basis of
 utilization against purchase of goods and services.
 
 l) Aircraft maintenance costs and engine repairs
 
 Aircraft, Auxiliary Power Unit (''APU'') and Engine maintenance and
 repair costs are expensed as incurred. In cases where such overhaul
 costs in respect of engines / APU are covered by third party
 maintenance agreements, these are accounted in accordance therewith,
 along with adequate estimates.
 
 m) Foreign currency translation
 
 Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 Exchange Differences
 
 With effect from accounting periods commencing on or after December 7,
 2006, the Company accounts for exchange differences arising on
 translation / settlement of foreign currency monetary items as below:
 
 - Exchange differences arising on long-term foreign currency monetary
 items related to acquisition of a fixed asset are capitalized and
 depreciated over the remaining useful life of the asset. For this
 purpose, the Company treats a foreign monetary item as long-term
 foreign currency monetary item, if it has a term of 12 months or more
 at the date of its origination.
 
 - Exchange differences arising on other long-term foreign currency
 monetary items are accumulated in the Foreign Currency Monetary Item
 Translation Difference Account and amortized over the remaining life
 of the concerned monetary item.
 
 - All other exchange differences are recognized as income or as
 expenses in the period in which they arise.
 
 n) Retirement and other employee benefits
 
 Retirement benefit in the form of provident fund is a defined
 contribution scheme. The contributions to the provident fund are
 charged to the statement of profit and loss for the year when the
 contributions to the respective fund are due. The Company has no
 obligation, other than the contribution payable to the provident fund.
 
 Gratuity liability under the Payment of Gratuity Act, 1972 is a defined
 benefit obligation. The cost of providing benefits under this plan is
 determined on the basis of actuarial valuation at each year-end.
 Actuarial gains and losses are recognized in full in the period in
 which they occur in the statement of profit and loss.
 
 Accumulated leave, which is expected to be utilized within the next 12
 months, is treated as short- term employee benefit. The Company
 measures the expected cost of such absences as the additional amount
 that it expects to pay as a result of the unused entitlement that has
 accumulated at the reporting date.
 
 The Company treats accumulated leave expected to be carried forward
 beyond twelve months, as long-term employee benefit for measurement
 purposes. Such long-term compensated absences are provided for based on
 the actuarial valuation using the projected unit credit method at the
 year- end. Actuarial gains / losses are immediately taken to the
 statement of profit and loss and are not deferred. The Company presents
 the entire leave as a current liability in the balance sheet, since it
 does not have an unconditional right to defer its settlement for 12
 months after the reporting date.
 
 o) Income taxes
 
 Tax expense comprises current and deferred income taxes. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Income-tax Act, 1961 enacted in
 India. Deferred tax is measured using the tax rates and the tax laws
 enacted or substantively enacted at the reporting date.
 
 Deferred income taxes reflects the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years. Deferred tax is
 measured based on the tax rates and the tax laws enacted or
 substantively enacted at the reporting date.
 
 Deferred tax liabilities are recognized for all taxable timing
 differences. Deferred tax assets are recognised only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised. As the Company has unabsorbed depreciation or carry forward
 tax losses, deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that such deferred tax
 assets can be realised against future taxable profits.
 
 At each reporting date, the Company re-assesses unrecognized deferred
 tax assets. It recognizes unrecognized deferred tax asset to the extent
 that it has become reasonably certain or virtually certain, as the case
 may be, that sufficient future taxable income will be available against
 which such deferred tax assets can be realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain that sufficient future taxable income will be
 available.
 
 Minimum Alternative Tax (''MAT'') credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period. In the year in
 which the credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the profit and loss account and shown as
 MAT Credit Entitlement. The Company reviews the same at each balance
 sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 p) Employee stock compensation cost
 
 Measurement and disclosure of the employee share-based payment plans is
 done in accordance with SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on
 Accounting for Employee Share-based Payments, issued by the Institute
 of Chartered Accountants of India. The Company measures compensation
 cost relating to employee stock options using the intrinsic value as
 applicable to the relevant grant. Compensation expense is amortized
 over the vesting period of the option on a straight line basis.
 
 q) Segment reporting
 
 The Company''s operations predominantly relate only to air
 transportation services and accordingly this is the only primary
 reportable segment. Further, the operations of the Company are
 substantially limited within one geographical segment (India) and
 accordingly this is considered the only reportable secondary segment.
 
 r) Earnings Per Share (EPS)
 
 The earnings considered in ascertaining the Company''s earnings per
 share comprise the net profit or loss after tax attributable to equity
 share holders. The number of shares used in computing basic earnings
 per share is the weighted average number of shares outstanding during
 the year. The number of shares used in computing diluted earnings per
 share comprises the weighted average number of shares considered for
 deriving basic earnings per share and also the weighted average number
 of shares, if any, which would have been issued on the conversion of
 all dilutive potential equity shares.
 
 s) Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best estimate of amounts
 required to settle the obligation at the balance sheet date. These are
 reviewed at each balance sheet date and adjusted to reflect the current
 best estimates.
 
 t) Contingent liabilities
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or non
 occurrence of one or more uncertain future events beyond the control of
 Company or present obligation that is not recognized because it is not
 probable that an outflow of resources will be required to settle the
 obligation. A contingent liability also arises in extreme rare cases
 where there is a liability that cannot be recognized because it cannot
 be measured reliably. The Company does not recognise a contingent
 liability but discloses its existence in the financial statements.
 
 u) Cash and cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 v) Measurement of Earnings Before Interest, Tax, Depreciation and
 Amortization (EBITDA)
 
 As permitted by the Guidance Note on the Revised Schedule VI to the
 Companies Act, 1956, the Company has elected to present EBITDA as a
 separate line item on the face of the statement of profit and loss. The
 Company measures EBITDA on the basis of profit / (loss) from continuing
 operations. In its measurement, the Company does not include
 depreciation and amortization, finance costs, tax expense and, where
 applicable, prior period items.