1. The audited financial statements for the Year ended March 31, 2009 were reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors in its Meeting held on May 25, 2009. The information presented above is extracted from the audited financial statements as stated.

2. In view of the seasonality of the business, the financial results for the Quarter ended March 31, 2009 are not indicative of the full year’s performance.

3. Depreciation on Narrow Body Aircraft was hitherto provided on Written down Value Method. Based on the usage or such Aircraft, the Industry practice followed in domestic and international markets, the company, in order to reflect a more appropriate preparation / presentation of financial statements, has changed the method of depreciation on such Aircraft to Straight line Method w.e.f. April 01, 2006 and the surplus arising from retrospective computation aggregating Rs 92,377 lac (excluding adjustment to revaluation reserve) has been accounted and disclosed under Exceptional item. Consequently, charge on account of depreciation for the quarter and year ended March 31, 2009 is lower by Rs 2,059 lac and Rs 12,997 lac respectively.

4. The Company has continued to adjust the foreign currency exchange differences on amounts borrowed for acquisition of fixed assets, to the carrying cost of fixed assets. This was a matter of reference in the Limited Review Report. However, pursuant to the retrospective amendment (with effect from December 07, 2006) to Accounting Standard (AS 11) on Effects of Changes in Foreign Exchange Rates vide GSR Notification 225(E) dated March 31, 2009, the above accounting treatment followed by the Company is consistent with the revised AS 11.

Consequent to change in accounting from the first quarter of the current year, the foreign currency difference (gain) previously credited to the profit and loss account aggregating Rs 20,727 lac has been reversed from the opening balance of profit and loss account and adjusted to the cost of fixed assets. However, as required by the above amendment, the reversal earlier made from opening balance of profit and loss account was first adjusted to the General Reserve and the balance amount was reversed from the opening balance of profit and lost account.

5. The Company has equity and preference Investments aggregating to Rs 164,500 lac in Jet Lite (India) Ltd, a wholly Owned subsidiary, and an amount of Rs 62,314 lac advanced as interest free loan at on March 31, 2009. The said subsidiary has continued to incur losses, which has resulted further increase in its negative net-worth. A reputed valuer have recently valued the equity interest in the subsidiary based on its business plans, which supports the carrying value of such investment. The Company continues to provide financial support to subsidiary’s operations to further such business plans and expects it to turn around. Accordingly its financial statements have been prepared on ‘Going Concern’ basis and no provision is considered necessary at this stage in respect of its Investments and loans outstanding from the said subsidiary company at the year end.

6. Other income during Quarter and Year ended March 31, 2009 includes Profit on Sale and Lease Back of one and Two aircraft aggregating to Rs 4,404 lac and Rs 15,730 respectively. The corresponding figures for the Quarter and Year ended March 31, 2009 in respect of Sale and bad Lease Back in respect of Two and Four aircraft aggregating to Rs Nil and Rs 31,484 lac respectively. In respect of the Audited Consolidated Financial Results, Other income for the Quarter and Year ended March 31, 2009 and March 31, 2008 respectively includes Profit on Sale and Lease Back in respect of Two and Four Aircraft aggregating to Rs 15,730 lac and Rs 31,484 lac respectively.

7. The company, during the year ended March 31, 2009, suffered losses mainly on account of high fuel and other operating costs and lower load factors resulting into lower revenues than expected. The company continues to implement the steps Initiated earlier towards cost control, route rationalisation amongst others. The company expects that such steps initiated should result into achieving operational efficiencies and improved results.

8. Pursuant to the clarification by CBEC vide circular No. File No.137/72/2008-CX.4 dated November 21, 2008, that the accumulated CENVAT credit upto March 31, 2008 can be utilised by the company for payment of output service tax without any restriction of time limit. The company has recognised such CENVAT credit amounting to Rs 34993 lac as current asset.

9. The Board of Directors do not recommended any Dividend for the Year Ended March 31, 2009.

10. The figures for the corresponding periods have been regrouped / reclassified, wherever necessary, to make them comparable.

Saroj K Datta
Executive Director