Notes to Accounts of TAAL Tech Ltd.

Mar 31, 2025

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will
be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions
are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance
Sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a
finance cost.

De-commissioning costs (if any), are provided at the
present value of expected costs to settle the obligation
using estimated cash flows and are recognized as part
of the cost of the particular asset. The cash flows are
discounted at a current pre-tax rate that reflects the risks
specific to the de-commissioning liability. The unwinding
of the discount is expensed as incurred and recognised
in the Statement of Profit and Loss as a finance cost. The
estimated future costs of de-commissioning are reviewed
annually and adjusted as appropriate. Changes in the
estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or nonÂ¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be
made. When there is an obligation in respect of which the
likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets are neither recognised nor disclosed
in the standalone financial statements.

2.12 Borrowing cost

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 or
construction of qualifying assets are capitalised as part of
the cost of the assets upto the date the asset is ready for
its intended use. All other borrowing costs are recognized
as an expense in the Statement of Profit and Loss in the
year in which they are incurred.

2.13 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at banks, cash on hand and short-term
deposits net of bank overdraft with an original maturity of
three months or less, which are subject to an insignificant
risk of changes in value.

For the purposes of the cash flow statement, cash and
cash equivalents include cash on hand, cash in banks
and short-term deposits net of bank overdraft.

2.14 Government grants

Government grants are recognized where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognized
as income on a systematic basis over the periods that
the related costs, for which it is intended to compensate
are expensed. When the grant relates to an asset, it
is recognized as income in equal amounts over the
expected useful life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grants are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual instalments.

2.15 Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is
measured at its fair value plus, in the case
of a financial asset not at fair value through

profit or loss, transaction costs that are directly
attributable to the acquisition of the financial
asset. Transaction costs of financial assets
carried at fair value through profit or loss are
expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in following
categories:

a) at amortized cost; or

b) at fair value through other comprehensive
income; or

c) at fair value through profit or loss.

The classification depends on the entity''s
business model for managing the financial
assets and the contractual terms of the cash
flows.

Amortized cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments
of principal and interest are measured at
amortized cost. Interest income from these
financial assets is included in finance income
using the Effective Interest Rate method (EIR).

Fair Value Through Other Comprehensive
Income (FVOCI): Assets that are held for
collection of contractual cash flows and
for selling the financial assets, where the
assets'' cash flows represent solely payments
of principal and interest, are measured at
Fair Value Through Other Comprehensive
Income (FVOCI). Movements in the carrying
amount are taken through OCI, except for
the recognition of impairment gains or losses,
interest revenue and foreign exchange gains
and losses which are recognised in Statement
of Profit and Loss. When the financial asset
is de-recognized, the cumulative gain or loss
previously recognized in OCI is re-classified
from equity to the Statement of Profit and
Loss and recognized in other gains / (losses).
Interest income from these financial assets is
included in other income using the effective
interest rate method.

Fair Value Through Profit or Loss (FVTPL):
Assets that do not meet the criteria for
amortized cost or FVOCI are measured at fair
value through profit or loss. Interest income
from these financial assets is included in other
income.

In accordance with Ind AS 109 - "Financial
Instruments", the Company applies Expected
Credit Loss (ECL) model for measurement
and recognition of impairment loss on financial
assets that are measured at amortized cost
and FVOCI.

For recognition of impairment loss on financial
assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, twelve months ECL is used to
provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is
used. If in subsequent years, credit quality of
the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the entity reverts to
recognizing impairment loss allowance based
on twelve months ECL.

Life time ECLs are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
twelve months ECL is a portion of the lifetime
ECL which results from default events that are
possible within twelve months after the year
end.

ECL is the difference between all contractual
cash flows that are due to the Company in
accordance with the contract and all the cash
flows that the entity expects to receive (i.e. all
shortfalls), discounted at the original EIR. When
estimating the cash flows, an entity is required
to consider all contractual terms of the financial
instrument (including pre-payment, extension
etc.) over the expected life of the financial
instrument. However, in rare cases when the
expected life of the financial instrument cannot
be estimated reliably, then the entity is required
to use the remaining contractual term of the
financial instrument.

In general, it is presumed that credit risk has
significantly increased since initial recognition
if the payment is more than 30 days past due.

Trade receivables

looking estimates. At every reporting date, the
historical observed default rates are updated
and changes in the forward-looking estimates
are analysed. On that basis, the Company
estimates the provision at the reporting date.

(iv) De-recognition of financial assets

A financial asset is de-recognised only when:

a) the rights to receive cash flows from the
financial asset is transferred; or

b) retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the financial asset is transferred then in
that case financial asset is de-recognised only if
substantially all risks and rewards of ownership
of the financial asset is transferred. Where
the entity has not transferred substantially all
risks and rewards of ownership of the financial
asset, the financial asset is not de-recognised.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and at amortized cost, as
appropriate.

All financial liabilities are recognised initially at
fair value and, in the case of borrowings and
payables, net of directly attributable transaction
costs.

(ii) Subsequent measurement

The measurement of financial liabilities
depends on their classification as described
below:

Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the EIR method. Gains
and losses are recognized in the Statement

of Profit and Loss when the liabilities are
de-recognized as well as through the EIR
amortization process. Amortized cost is
calculated by taking into account any discount
or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR
amortization is included as finance costs in the
Statement of Profit and Loss.

(iii) De-recognition

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the Statement of
Profit and Loss as finance costs.

(c) Embedded derivatives

An embedded derivative is a component of a hybrid
(combined) instrument that also includes a nonÂ¬
derivative host contract - with the effect that some
of the cash flows of the combined instrument vary in
a way similar to a standalone derivative. Derivatives
embedded in all other host contract are separated
if the economic characteristics and risks of the
embedded derivative are not closely related to the
economic characteristics and risks of the host and
are measured at fair value through profit or loss.
Embedded derivatives closely related to the host
contracts are not separated.

Re-assessment only occurs if there is either a
change in the terms of the contract that significantly
modifies the cash flows that would otherwise be
required or a re-classification of a financial asset out
of the fair value through profit or loss.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net
basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or the counterparty.

(a) Short-term obligations

Liabilities for wages and salaries, including nonÂ¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the year
in which the employees render the related service
are recognized in respect of employees'' services
upto the end of the year and are measured at the
amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the Balance Sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company makes defined contribution
to provident fund and superannuation fund,
which are recognized as an expense in the
Statement of Profit and Loss on accrual basis.
The Company has no further obligations under
these plans beyond its monthly contributions.

(ii) Defined benefit plans

The Company''s liabilities under Payment
of Gratuity Act and long-term compensated
absences are determined on the basis of
actuarial valuation made at the end of each
financial year using the projected unit credit
method, except for short-term compensated
absences, which are provided on actual basis.
Actuarial losses / gains are recognised in the
other comprehensive income in the year in
which they arise. Obligations are measured
at the present value of estimated future cash
flows using a discount rate that is determined
by reference to market yields at the Balance
Sheet date on government bonds where the
currency and terms of the government bonds
are consistent with the currency and estimated
terms of the defined benefit obligation.

(iii) Leave encashment - Encashable

Accumulated compensated absences, which
are expected to be availed or encashed within
twelve months from the end of the year are
treated as short-term employee benefits. The
obligation towards the same is measured at the
expected cost of accumulating compensated
absences as the additional amount expected
to be paid as a result of the unused entitlement
as at the year end.

Accumulated compensated absences, which
are expected to be availed or encashed
beyond twelve months from the end of the year

end are treated as other long-term employee
benefits. The Company''s liability is actuarially
determined (using the Projected Unit Credit
method) at the end of each year. Actuarial
losses / gains are recognized in the Statement
of Profit and Loss in the year in which they
arise.

2.17 Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to equity
shareholders of parent company by the weighted
average number of equity shares outstanding during the
year. Earnings considered in ascertaining the Company''s
earnings per share is the net profit or loss for the year
attributable to equity shareholders of parent company
after deducting preference dividends and any attributable
tax thereto for the year (if any). The weighted average
number of equity shares outstanding during the year and
for all the years presented is adjusted for events, that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to
equity shareholders of parent company and the weighted
average number of shares outstanding during the year
is adjusted for the effects of all dilutive potential equity
shares.

2.18 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company''s operating businesses
are organised and managed separately according to
the nature of services provided, with each segment
representing a strategic business unit that offers different
services and serves different markets. Thus, as defined
in Ind AS 108 - "Operating Segments", the business
segments are ''Air Charter''. The Company does not have
any geographical segment.

2.19 Investment in Subsidiary

When the entity prepares separate financial statements,
it accounts for investments in subsidiaries, joint ventures
and associates either:

(a) at cost; or

(b) in accordance with Ind AS 109.

The Company accounts for its investment in subsidiary at
cost.

Investments acquired from Taneja Aerospace and
Aviation Limited pursuant to Demerger of its âAir Charter
Business'' are recorded at its book value i.e cost as on

2.20 Rounding off amounts

All amounts disclosed in standalone financial statements
and notes have been rounded off to the nearest lakhs
as per requirement of Schedule III of the Act, unless
otherwise stated.

3 Significant accounting judgments, estimates and
assumptions

The preparation of standalone financial statements
requires Management to make judgments, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, the accompanying
disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the year end date, that
have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur.

(a) Defined benefits and other long-term benefits

The cost of the defined benefit plans such as
gratuity and leave encashment are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future. These
include the determination of the discount rate,
future salary increases and mortality rates. Due to
the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each year end.

The principal assumptions are the discount and
salary growth rate. The discount rate is based upon
the market yields available on government bonds at
the accounting date with a term that matches that
of liabilities. Salary increase rate takes into account
of inflation, seniority, promotion and other relevant
factors on long-term basis.

Ministry of Corporate Affairs (âMCAâ) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards)
Amendment Rules, 2023

(a) Ind AS 1 - Presentation of Financials Statements

This amendment requires the entities to
disclose their material accounting policies rather
than their significant accounting policies. The
effective date for adoption of this amendment is
annual periods beginning on or after April 1, 2023.
The Company has evaluated the amendment and
the impact of the amendment is insignificant in the
standalone financial statements.

(b) Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors

This amendment has introduced a definition of
''accounting estimates'' and included amendments
to Ind AS 8 to help entities distinguish changes in
accounting policies from changes in accounting
estimates. The effective date for adoption of this
amendment is annual periods beginning on or after
April 1, 2023. The Company has evaluated the
amendment and there is no impact on its standalone
financial statements.

(c) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the
initial recognition exemption so that it does not
apply to transactions that give rise to equal and
offsetting temporary differences. The effective date
for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Company
has evaluated the amendment and there is no
impact on its standalone financial statements

Mar 31, 2024

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

De-commissioning costs (if any), are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the de-commissioning liability. The unwinding of the discount is expensed as incurred and recognised in the Statement of Profit and Loss as a finance cost. The estimated future costs of de-commissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. When there is an obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed in the standalone financial statements.

2.12 Borrowing cost

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 or construction of qualifying assets are capitalised as part of the cost of the assets upto the date the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the Statement of Profit and Loss in the year in which they are incurred.

2.13 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short-term deposits net of bank overdraft.

2.14 Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grants are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual instalments.

2.15 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets

carried at fair value through profit or loss are expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the Effective Interest Rate method (EIR).

Fair Value Through Other Comprehensive Income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at Fair Value Through Other Comprehensive Income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in Statement of Profit and Loss. When the financial asset is de-recognized, the cumulative gain or loss previously recognized in OCI is re-classified from equity to the Statement of Profit and Loss and recognized in other gains / (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value Through Profit or Loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

(iii) Impairment of financial assets

In accordance with Ind AS 109 - "Financial Instruments", the Company applies Expected

Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, twelve months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on twelve months ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The twelve months ECL is a portion of the lifetime ECL which results from default events that are possible within twelve months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including pre-payment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payment is more than 30 days past due.

Trade receivables

An impairment analysis is performed at each reporting date on an individual basis for major clients. It is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forwardlooking estimates. At every reporting date, the historically observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the Company

estimates the provision at the reporting date.

(iv) De-recognition of financial assets

A financial asset is de-recognised only when:

a) the rights to receive cash flows from the financial asset is transferred; or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is de-recognised only if substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognised.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognised initially at fair value and in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the Statement of Profit and Loss when the liabilities are de-recognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs

that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

(iii) De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as finance costs.

An embedded derivative is a component of a hybrid (combined) instrument that also includes a nonderivative host contract - with the effect that some of the cash flows of the combined instrument vary in a way similar to a standalone derivative. Derivatives embedded in all other host contract are separated if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host and are measured at fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.

Re-assessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a re-classification of a financial asset out of the fair value through profit or loss.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.16 Employee benefits

(a) Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the year

in which the employees render the related service are recognized in respect of employees'' services upto the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the Balance Sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Company makes defined contribution to provident fund and superannuation fund, which are recognized as an expense in the Statement of Profit and Loss on accrual basis. The Company has no further obligations under these plans beyond its monthly contributions.

(ii) Defined benefit plans

The Company''s liabilities under Payment of Gratuity Act and long-term compensated absences are determined on the basis of actuarial valuation made at the end of each financial year using the projected unit credit method except for short-term compensated absences, which are provided on actual basis. Actuarial losses / gains are recognised in the other comprehensive income in the year in which they arise. Obligations are measured at the present value of estimated future cash flows using a discount rate that is determined by reference to market yields at the Balance Sheet date on government bonds where the currency and terms of the government bonds are consistent with the currency and estimated terms of the defined benefit obligation.

(iii) Leave encashment - Encashable

Accumulated compensated absences, which are expected to be availed or encashed within twelve months from the end of the year are treated as short-term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond twelve months from the end of the year end are treated as other long-term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses / gains are recognized in the Statement of Profit and Loss in the year in which they arise.

2.17 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders of parent company by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year attributable to equity shareholders of parent company after deducting preference dividends and any attributable tax thereto for the year (if any). The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share the net profit or loss for the year attributable to equity shareholders of parent company and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

2.18 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company''s operating businesses are organised and managed separately according to the nature of services provided, with each segment representing a strategic business unit that offers different services and serves different markets. Thus, as defined in Ind AS 108 - "Operating Segments", the business segments are ''Air Charter''. The Company does not have any geographical segment.

2.19 Investment in Subsidiary

When the entity prepares separate financial statements, it accounts for investments in subsidiaries, joint ventures and associates either:

(a) at cost; or

(b) in accordance with Ind AS 109.

The Company accounts for its investment in subsidiary at cost.

Investments acquired from Taneja Aerospace and Aviation Limited pursuant to Demerger of its âAir Charter Business'' are recorded at its book value i.e cost as on the appointed date less impairment if any.

2.20 Rounding off amounts

All amounts disclosed in standalone financial statements and notes have been rounded off to the nearest lakhs as per requirement of Schedule III of the Act, unless otherwise stated.

3 Accounting judgments, estimates and assumptions

The preparation of standalone financial statements requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Defined benefits and other long-term benefits

The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long-term basis.

3.2 Recent pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023

(a) Ind AS 1 - Presentation of Financials Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

(b) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

3.3 Recent pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

26 Segment reporting

The Company''s operations predominantly relate to providing air charter services. The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate segment information has been furnished herewith.

The customers whose revenue is more than 10% of Company''s total revenue are: Nil

27 Fair values of financial assets and financial liabilities

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short-term nature of these financial instruments.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits and other financial assets.

28 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

â¢ Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

â¢ Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

â¢ Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The carrying amount of cash and cash equivalents, Bank balances other than cash and cash equivalents and other payables are considered to be the same as their fair values.

29 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is co-ordinated by the Board of Directors and focuses on securing long-term and shortterm cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings. The Company is also exposed to fluctuations in foreign currency exchange rates.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to short-term borrowings with floating interest rates. The company not have any short-term or long-term borrowings from any of the bank or financials institutions, however presented below risk on future cash flow due to interest-rate risk.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings as follows:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a different currency from the Company''s functional currency).

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate (Net balance - receivable) (or any other material currency), with all other variables held constant, of the Company''s profit before tax (due to changes in the fair value of monetary assets and liabilities). The Company''s exposure to foreign currency changes for all other currencies is not material.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Company''s receivables from deposits, loans and advances and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the entities to whom such loans and advances and security deposits are given. The Company does not foresee any credit risks on deposits with regulatory authorities.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet at March 31, 2024 and March 31, 2023 is the carrying amounts as mentioned in notes 7 to 11.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

30 Capital management

For the purpose of the Company''s capital management capital includes issued equity capital, share premium and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure i.e. equity and debt. The company does not have any debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

a) Return on equity ratio, Net profit ratio, Return on capital employed was impacted as i) There is no dividend income in current year as compared to previous year and ii) Sale of salvage/ damaged aircraft during current year.

b) Current ratio was impacted due to the advance received reported under current liabilities in previous year for sale of salvage/ damaged aircraft getting adjusted against actual sales during the year.

36 Additional regulatory information required by Schedule III

(i) Details of benami property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(ii) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

(iv) Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(vi) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vii) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment and investment property or both during the current or previous year.

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961 that has not been recorded in the books of account.

(ix) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

37 Previous year figures have been re-grouped / re-classified to confirm presentation as per Ind AS as required by Schedule III of the Act.

As per our report of even date attached.

For V. P. Thacker & Co. For and on behalf of the Board of Directors of

Chartered Accountants TAAL Enterprises Limited

Firm Registration No. 118696W CIN : L74110KA2014PLC176836

Abuali Darukhanawala Salil Taneja Sudishkumar Kuttappan Nair Priya Chouksey

Partner Chairman Chief Financial Officer Company Secretary

Membership No. 108053 DIN: 00328668 Membership No. A67855

Place: Mumbai Place: Pune Place: Bengaluru Place: Pune

Date: May 30, 2024 Date: May 30, 2024 Date: May 30, 2024 Date: May 30, 2024

Mar 31, 2023

Earnings / (loss) per share

Basic earnings / (loss) per share amounts are calculated by dividing the profit / (loss) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earnings / (loss) per share amounts are calculated by dividing the profit / (loss) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note: No amounts pertaining to related parties have been written off or written back during the year.

# Excludes contribution to gratuity fund and provision for leave encashment as separate figures are not ascertainable for the managerial personnel. Further, the Company has not paid any commission to the managerial personnel.

26 Segment reporting

The customers whose revenue is more than 10% of Company''s total revenue are:

Customer 1 : INR Nil (March 31, 2022: INR Nil);

Customer 2 : INR Nil (March 31, 2022: INR Nil);

Customer 3 : INR Nil (March 31, 2022: INR Nil);

27 Fair values of financial assets and financial liabilities

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits and other financial assets.

28 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

â¢ Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

â¢ Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

â¢ Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The carrying amount of cash and cash equivalents, trade receivables, trade payables, other payables and short-term borrowings are considered to be the same as their fair values.

29 Financial risk management objectives and policies

(A) Market risk

(i) Interest rate risk

Interest rate sensitivity

(ii) Foreign currency risk

Foreign currency sensitivity

(B) Credit risk

The Company''s maximum exposure to credit risk for the components of the Balance Sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as mentioned in notes 6 to 11.

30 Capital management

32 Deferred tax calculations result into deferred tax assets as at March 31, 2023 as well as at March 31, 2022. However, as a matter of prudence, the Company has not recognized deferred tax assets as it is not probable that the Company will have future taxable profits.

33 The Company accounts for the investment in subsidiaries at cost and tests for any impairment in the value of investment on an annual basis in accordance with para 9 of IND AS 36 on Impairment of Asset. For the purpose of impairment testing, the Management arrived at the net recoverable amount plus net operating cash flows of subsidiary less the cost to be incurred.

35 The Board of Directors of the Company at their meeting held on 18th October 2022, have approved the Scheme of Amalgamation of TAAL Tech India Private Limited (âTransferor Companyâ) with the Company with effect from the appointed date of 1st April 2023. Accordingly, the Company has filed the requisite applications before the National Company Law Tribunal, Bengaluru Bench and the same is pending for approval.

37 Additional regulatory information required by Schedule III

(i) Details of benami property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(ii) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

(iv) Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(vi) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vii) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment and investment property or both during the current or previous year

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

38 Previous year figures have been re-grouped / re-classified to confirm presentation as per Ind AS as required by Schedule III of the Act.

Mar 31, 2018

1 General Information

TAAL Enterprises Limited (TEL) is a public limited company incorporated in India under the Companies Act, 2013. TEL was earlier a wholly owned subsidiary of Taneja Aerospace and Aviation Limited (TAAL). However, pursuant to approval of the Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 between TAAL & TEL, the Air Charter business of TAAL including investment in First Airways Inc, USA and Engineering Design Services business conducted through TAAL Tech India P. Ltd. has been demerged into TEL w.e.f. October 1, 2014 and TEL has seized to be a subsidiary of TAAL. Its principal business activity is providing Aircraft Charter Services.

2 Significant Accounting Judgments, Estimates and Assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

2.1 Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Defined benefits and other long term benefits

The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis.

3 Standards (including amendments) issued but not yet effective

The standards and interpretations that are issued, but not yet effective upto the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

(a) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is currently evaluating the requirements of amendments.

(b) Ind AS 115- Revenue from contract with customers

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115 - Revenue from contract with customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.

The standard permits two possible methods of transition:

(i) Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8-Accounting Policies, Changes in Accounting Estimates and Errors.

(ii) Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch-up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company is currently evaluating the requirements of amendments.

4 First-time Adoption of Ind-AS

These financial statements are the first set of Ind AS financial statements prepared by the Company. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on 31 March 2018, together with the comparative year data as at and for the year ended 31 March 2017, as described in the significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1 April 2016, being the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

4.1 Exemptions availed on first time adoption of Ind AS

Ind AS 101 - First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions:

(a) Deemed cost

Since there is no change in the functional currency, the Company has elected to continue with carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as its deemed cost at the date of transition after making adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 - Intangible Assets and Investment Properties. Accordingly the management has elected to measure all of its property, plant and equipment, investment properties and intangible assets at their Indian GAAP carrying value.

(b) Investment in subsidiaries

Option to measure Investments in subsidiaries, joint ventures and associate at cost as per Ind AS 27 or deemed cost is available. The deemed cost shall be its fair value on transition date or carrying amount as per previous GAAP. This exemption is availed by the Company.

Company has elected not to apply Ind AS 103 retrospectively to past business combinations (business combinations that occurred before the date of transition to Ind ASs).

4.2 Mandatory exemption on first-time adoption of Ind AS

(a) Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under Indian GAAP:

(i) Impairment of financial assets based on expected credit loss model.

(ii) Effective interest rate used in calculation of security deposit.

(b) Derecognition of financial assets and financial liabilities

A first-time adopter should apply the derecognition requirements in Ind AS 109 - Financial Instruments, prospectively to transactions occurring on or after the date of transition. Therefore, if a first-time adopter derecognized non-derivative financial assets or non-derivative financial liabilities under its Indian GAAP as a result of a transaction that occurred before the date of transition, it should not recognize those financial assets and liabilities under Ind AS (unless they qualify for recognition as a result of a later transaction or event). A first-time adopter that wants to apply the derecognition requirements in Ind AS 109 -Financial Instruments, retrospectively from a date of the entityâs choosing may only do so, provided that the information needed to apply Ind AS 109 - Financial Instruments, to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the derecognize provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

Ind AS 101 - First-time Adoption of Indian Accounting Standards, requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares of INR 10/- each. Each shareholder is entitled to one vote per share held. Dividend if any declared is payable in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

*As informed to us by the management, the Company owes no dues which are outstanding as at March 31, 2018, March 31, 2017 and April 1, 2016 to any âMicro, Small and Medium Enterprisesâ as covered under âMicro, Small and Medium Enterprises Development Act, 2006â. Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the âsuppliersâ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.

5 Earnings/ loss per share

Basic earnings /(loss) per share amounts are calculated by dividing the profit/ loss for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted earnings /(loss) per share amounts are calculated by dividing the profit/ loss for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note: This being the first year of actuarial valuation report obtained as per the requirements of Ind - AS, the previous year disclosures are not given w.r.t. clauses (v) and (vi) above.

6 There are no Contingent Liabilities, Capital and other commitments as at March 31, 2018, March 31, 2017 and April 1, 2016.

7 Related party disclosures: 31 March 2018

(A) Names of related parties and description of relationship as identified and certified by the Company: Parent Company

Vishkul Leather Garments Private Limited (Effective from: August 14, 2017)

Subsidiary Companies

TAAL Tech India Private Limited First Airways Inc, USA

TAAL Technologies Inc, USA (Subsidiary of Taal Tech India Private Limited)

TAAL Tech GmbH, Switzerland (Subsidiary of Taal Tech India Private Limited)

TAAL Tech Innovations GmbH, Austria (Subsidia ry of Taal Tech India Private Limited)

Key Management Personnel (KMP)

Mr. C S Kameswaran - Whole Time Director (upto February 06, 2018)

Non-Whole Time Director

Mr. Ajay Joshi (upto December 24, 2016)

Mr. Prakash Saralaya (upto April 24, 2016)

Mr. Salil Taneja (upto April 23, 2016)

Mr. Nirmal Chandra Mr. R Poornalingam

Mrs. Rahael Shobhana Joseph (upto April 22, 2017 and Reappointed from November 16, 2017)

8 Disclosure as required by Regulation 34(3) of the Listing Agreement

Amount of Investment in/ Loans and Advances in the nature of loans to subsidiaries and associates for the year ended March 31, 2018:

9 Segment reporting

The Companyâs operations predominantly relate to providing air charter services. The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate segment information has been furnished herewith.

There are 2 customers whose revenue is more than 10% of companies total revenue:

Customer 1 : INR 218.44 lacs (March 31, 2017 : INR 253.05 lacs)

Customer 2 : INR 72.75 lacs (March 31, 2017 : INR 64.91 lacs)

10 Fair values of financial assets and financial liabilities

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits and other financial assets.

11 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

- Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either

directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

12 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Companyâs risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a different currency from the Companyâs functional currency).

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate (Net balance - receivable) (or any other material currency), with all other variables held constant, of the Companyâs profit before tax (due to changes in the fair value of monetary assets and liabilities). The Companyâs exposure to foreign currency changes for all other currencies is not material.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Companyâs receivables from deposits, loans and advances and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a monthâs operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the entities to whom such loans and advances and security deposits are given. The Company does not foresee any credit risks on deposits with regulatory authorities.

13 Capital management

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Companyâs capital management is to maximize the shareholder value and to ensure the Companyâs ability to continue as a going concern.

The Company has not distributed any dividend to its shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of current borrowing which represents loan from bank. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

14.1 In terms of the Scheme of Arrangement approved / sanctioned by the Honâble High Court of Madras, (âthe Schemeâ), under section 391 to 394 of the Companies Act, 1956 between Taneja Aerospace and Aviation Limited (TAAL) and TAAL Enterprises Limited (âthe Companyâ), TAAL has demerged its Air Charter Business including investment in First Airways Inc., USA and Engineering Design Services Business conducted through TAAL Tech India Private Limited into the Company. Pursuant to the Scheme as sanctioned by the Honâble High Court of Madras vide order dated June 22, 2015, received on July 23, 2015, the Air Charter Business of TAAL including investment in First Airways Inc., USA and Engineering Design Services Business conducted through TAAL Tech India Private Limited has been demerged into the Company on a going concern basis with effect from October 1, 2014 being the appointed date. The certified copy of the said order of the Honâble High Court of Madras has been filed with the Registrar of Companies, Chennai on August 21, 2015 and as such the Scheme has become effective from that date.

14.2 As per Clause 9.2 of the above Scheme of Arrangement as approved /sanctioned by the Honâble High Court of Madras, Taneja Aerospace and Aviation Limited (TAAL) will carry on the business and activities relating to the demerged charter business for and on account of and in trust for TAAL Enterprises Limited (TEL) until the time TEL obtains the requisite statutory licences required for carrying on the demerged charter business.

The said licences are yet to be obtained and accordingly the demerged charter business has continued to be operated by TAAL in trust for and on behalf of TEL including banking transactions, statutory compliances and all other commercial activities.

15 During the financial year ended March 31, 2017, the Company had incurred expenditure of INR 1,72,60,993/- due to bird hit accident to the aircraft. An insurance claim was raised with the insurance company before March 31, 2017. The insurance company had accepted, approved and settled the claim amounting to INR 1,29,29,850/- and the same was realised by the Company on or before adoption of financial statements by the Board for the financial year ended March 31, 2017. INR 43,31,143/- net expenditure incurred has been classified and disclosed as an Exceptional Item for the financial year ended March 31, 2017.

16 Deferred tax calculation results into working of deferred tax assets as at March 31, 2018, March 31, 2017 as well as at April 1, 2016. However as a matter of prudence, the Company has not recognised deferred tax asset.

17 The Company considers its investment in and loans to subsidiaries as strategic and long term in nature and accordingly, in the view of the management, any decline in the value of such long term investments in subsidiaries is considered as temporary in nature and hence neither provision nor impairment for diminution in value is considered necessary.

18 The Company operates a chartered plane obtained under a lease agreement dated December 11, 2007 which is the sole aircraft being operated by the Company as a part of its business operations. As per the lease agreement with the lessor, the lease was for a period of 120 months which expired on December 11, 2017. During the year, the Company and Lessor agreed for an extension of the lease for a period of one year from December 12, 2017 to December 11, 2018. Further, as per the purchase option agreement entered between the Company, Lessor and First Airways Inc. (Wholly owned subsidiary), First Airways Inc. has an option to purchase the aircraft at the end of lease period. On this basis, the Company intends to either renew the lease term or exercise the purchase option at the end of lease period through its subsidiary. In view of above, the Company has prepared financial statements on going concern basis.

19 Upon expiry of the lease aggrement, the lessor has aggred to restructure the lease which interalia provide for one year extenction of the Aggrement, reduction in monthly lease rental and reduction in existing past liabilities. Accordingly, the total outstanding liability of the Company under the Aggrement has come down by USD 405,495 (INR 263.50 Lacs) which is considered as other income and disclosed as such.

20 Since year end, the directors of TAAL Tech India Private Limited (Subsidiary Company) have recommended the payment of a final dividend of INR 25 per fully paid equity share (Previous Year- INR Nil). This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting.

21 In the opinion of the Board, Current Assets and Loans and Advances are of the value stated if realised in the ordinary course of business. Further, provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary.

22 Effective from Tuesday, July 05, 2016 the equity shares of the Company got listed and admitted to dealings on the Bombay Stock Exchange.

23 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of the Act.

Mar 31, 2016

1. In terms of the Scheme 31,16,342 equity shares of Rs. 10/- each, fully paid-up, of the Company have been issued to the holders of equity shares of Taneja Aerospace & Aviation Limited, whose names were registered in the register of members on the record date, without payment being received in cash, in the ratio of 1 (one) fully paid-up equity share of Rs. 10/- each of the Company for every 8 (eight) equity shares held in Taneja Aerospace & Aviation Limited. Consequent to the above allotment, âShare Suspense Accountâ amounting to Rs. 3,11,63,420/- has been transferred to âEquity Share Capitalâ during the current year. Further, in terms of the Scheme, Equity Share Capital of Rs. 5,00,000/- prior to allotment of the above shares, stands cancelled.

2 In terms of the scheme, excess of net assets so recorded, over the amount of share capital to be issued amounting to

Rs. 10,80,58,886/-, is recognized in these financial statements, as Capital Reserve.

3. As per Clause 9.2 of the Scheme of Arrangement as approved / sanctioned by Honâble Madras High Court Taneja Aerospace and Aviation Limited (TAAL) will carry on the business and activities relating to the demerged charter business for and on account of and in trust for TAAL Enterprises Limited (TEL) until the time TEL obtains the requisite statutory licenses required for carrying on the demerged charter business.

The said licenses are yet to be obtained and accordingly the demerged charter business has continued to be operated by TAAL in trust for and on behalf of TEL including banking transactions, statutory compliances and all other commercial activities.

4. Segment Reporting: As the Company''s business activity falls within a single primary business segment, viz. "Air Charter", the disclosure requirements of Accounting Standard - 17 "Segment Reporting" is not applicable.

5. Deferred tax calculation results into working of deferred tax assets as at 31st March, 2016. However, as a matter of prudence, the Company has not recognized deferred tax asset.

6. The Company considers its investment in and loans to subsidiaries as strategic and long term in nature and accordingly, in the view of the management, any decline in the value of such long term investments in subsidiaries is considered as temporary in nature and hence no provision for diminution in value is considered necessary.

7. In the opinion of the Board, Current Assets and Loans and Advances are of the value stated if realized in the ordinary course of business. Further, provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary.

8. The Company was incorporated on 1st July, 2014. Therefore the previous year figures are for a period of 9 months.

9. Effective from Tuesday, July 05, 2016 the equity shares of the Company got listed and admitted to dealings on the Bombay Stock Exchange.

10. Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.

Current period figures are for 12 months ended 31st March 2016 and previous period figures include the results of Air Charter Business of Taneja Aerospace & Aviation Limited from the appointed date of demerger (i.e. 1st October, 2014) to the end of relevant financial year. Since the reporting period of operational units are not same, these figures are not comparable

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