InterGlobe Aviation Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

1. During the quarter ended 31 December 2018, due to the demise of the Audit Committee Chairman and Independent Director of the Company on 25 November 2018, the Company could not meet the requisite quorum requirements of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 (LODR) for the Audit Committee meeting held on 23 January 2019. Based on a legal advice, the standalone financial results for the quarter and nine months period ended 31 December 2018 ('Results') have been reviewed by the existing Audit Committee members on 23 January 2019 and recommended to the Board of Directors ('Board') for approval. The Board at its meeting held on 23 January 2019 approved the results. The Statutory Auditors of the Company have carried out limited review of the above results pursuant to Regulation 33 of LODR and have issued an unmodified review opinion.

2. In the earlier years, the income tax authority has assessed and revised the taxable income for various assessment years on account of disallowance of certain expenses, provisions, depreciation and/or adjustments, and in respect of the tax treatment of certain incentives received from the manufacturer with the acquisition of aircraft and engines. During the year ended 31 March 2017, the Company has received favourable order from the final fact finding authority, Income Tax Appellate Tribunal ("1TAT") for Assessment Year 2007-08 against certain such disallowance and/or adjustments made by tax authority. However, the tax authority had filed an appeal before the Hon'ble High Court against the order of the ITAT. The Company believes, based on legal advice from counsel, that the view taken by the ITAT is sustainable in higher court and accordingly, no provision is required to be recorded in the books of account.
The tax exposure (excluding interest and penalty) estimated by the Company pertaining to these matters for various assessment years, which are presently under dispute, amounts to Rs. 6,346.42 as at 31 December 2018. This exposure is net of Rs. 1,017.21, which represents minimum alternate tax recoverable written off in the earlier years.

3. Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker ('CODM') evaluates the Company's performance at an overall company level as one segment i.e. 'air transportation services' based on the nature of operations, the risks and rewards and the nature of the regulatory environment across the Company's network and the interchangeability of use of assets across the network routes of the Company. Accordingly, the disclosures as per Regulation 33 (l)(e) read with Clause (L) of Schedule IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 are not applicable for the Company.

4. During the quarter ended 31 December 2018, the Company has paid Integrated Goods and Services Tax ('1GST') amounting to Rs. 625.10 under protest, on re-import of repaired aircraft, aircraft engines and other certain aircraft parts, to custom authorities and therefore as at 31 December 2018, cumulative amount paid under protest is Rs. 3,543.67. In this regard, the Company has also filed the appeals before the Appellate authority. The Company, based on legal advice from counsel, believes that no IGST is payable on such re-import of repaired aircraft, aircraft engines and other certain aircraft parts and accordingly, such amounts have been shown as recoverable.

5. With effect from 1 April 2018, the Company has adopted Ind AS 115, 'Revenue from Contracts with Customers' using the cumulative effect method which does not require comparative information to be restated in the above standalone financial results. The standard is applied retrospectively only to contracts that were not completed as at the date of initial application (i.e. 1 April 2018). There is no significant net impact on retained earnings as at 1 April 2018. Moreover, the application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue from operations and other related items in the standalone financial results of the Company.

6. Earnings/ (loss) per share is not annualized for the quarter ended 31 December 2018, 30 September 2018 and 31 December 2017 and nine months period ended 31 December 2018 and 31 December 2017.

7. Foreign exchange (gain)/ loss (net), which were earlier included in other expenses/ other income, has now been shown as separate line item in above standalone financial results.

Rahul Bhatia
Director & Interim Chief Executive Officer