For Website AI Airport Services Limited ENGLISH 2022-23

AI Airport Services Limited
CONTENTS
1. Corporate Information 1
2. Chairman’s Speech 2
3. Directors Report 10
4. Management Discussion & Analysis Report 22
5. Comments of the Comptroller & Auditor General of India 57
6. Independent Auditors Report 61
7. Balance Sheet as at 31 March 2023 81
8. Statement of Profit & Loss for the year ended 31 March 2023 82
9. Statement of Changes in Equity for the Year ended 31 March 2023 83
10. Cash Flow Statement for the year ended 31 March 2023 84
11. Notes forming part of the Financial Statements as at and for the year ended 86
31 March 2023
Ai Airport Services Limited
Corporate Information
Board of Directors (As on 03rd November 2023)
Shri Satyendra Kumar Mishra Chairman

Shri Padam Lal Negi
Smt. Parama Sen
Chief Executive Officer

Shri Rambabu Ch.
Chief Financial Officer

Shri Sandeep Malhotra
Company Secretary
Smt. Shashi Bhadoola
Auditors
M/s S. Mann & Co.,
Chartered Accountants, Delhi
Bankers
HDFC Bank Limited, Axis Bank and
SBI Bank
Registered Office
2nd Floor, GSD Building,
Air India Complex, Terminal-2, IGI Airport, New Delhi- 110037
Registrar And Transfer Agent

M/s Link Intime India Pvt Ltd
C 101, 247 Park, L B S Marg,
Vikhroli West, Mumbai 400083.
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CHAIRMAN’S SPEECH
Dear Shareholders
It gives me immense pleasure to present the 20th Annual Report of the Company for the Financial Year
2022-23.AI Airport Services Limited (“The Company”) (AIASL) is a leading ground-handling service provider
and is operational on PAN India.
AIASL was operationalized in February 2013 and commenced its autonomous operations from FY
2014-15. AIASL, since its stand-alone operationalization has been a profitable company except for FY
2020-21. During the FY 2020-21, the operations of the Company were majorly affected due to the advent
of the COVID-19 pandemic. However, the company was turned around to make profits from the next
FY 2021-22 onwards, and continued its profitability, in the FY 2022-23, the Company earned a profit of
Rs.783.14 Million.
AIASL has the largest and widest ground handling presence for providing ground handling and related
services at 113 airports in India. AIASL-served Airports include the highest altitude and snow-clad airports
at Leh & Thoise, the desert airfield at Jaisalmer, Island airports in Agatti & Port Blair, and table-top airports
at Calicut over the complete network.
AIASL has the largest inventory of Ground Support Equipment (GSE) and skilled expertise and experienced
manpower resources, capable of rendering ground Handling (GH) services, covering all types of passenger
& freighter aircraft up to A380, A350 & 777 Max.
OVERVIEW- CIVIL AVIATION INDUSTRY
India has become the third-largest domestic aviation market in the world and is expected to overtake the UK
to become the third-largest air passenger market by 2024. Indian aviation also contributed significantly to the
GDP, creating millions of jobs. The Aviation industry’s fastest growth is being propelled by the development
of airports across multiple city tiers; a liberalized FDI policy; increasing adoption of information technology
and a strong focus on regional connectivity.
India is already among the top 10 aviation markets, serving over 105 million domestic passengers annually,
and the volume of air traffic, both in terms of passengers and cargo, is growing at a rapid pace after the
COVID-19 pandemic. More than 4 lakh passengers are traveling daily (P.T.O) on domestic flights alone,
with almost 6,000 flight movements. Similarly, about 1.75 lakh passengers are traveling on international
flights with about 1,000 flight movements.
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Government of India, Ministry of Civil Aviation’s stimulating interventions play a major role in the
development of the aviation industry in India. One of the schemes launched by the Government in
support of the growth of aviation was the UDAN (Ude Desh Ka Aam Nagrik) scheme which was
released in June 2016 with the motive of offering half of the flights at subsidized fares and is expected
to be in process for a period of 10 years (till 2026). Under the UDAN scheme, there are about 75
Airports operating and supporting about 490 RCS routes operated by 11 operators, flying about 4.5
lakh flights annually.
OVERVIEW- GROUND HANDLING
The India ground handling services market is consolidating with a large number of GHA’s being appointed
at most of the Air Ports by the Airport Operators, and competing in the market. AI Airport Services Limited is
the leading player in terms of spread, handling, and revenue in the India ground handling services market.
Air India SATS Airport Services, Bird Worldwide Flight Services, Celebi NAS Airport Services Private
Limited, and Indo-Thai Airport Management Services are the other leading GHA’s.
An increase in air passenger and freight traffic will increase demand for ground handling services in
the future. Growth in airline fleets and modernization and expansion of airport terminals will be major
contributors to the ground-handling services market in India. The record number of aircraft orders placed
by almost all the Indian carriers, led by Air India Limited and Indigo will surely augment the ground-handling
services market in India.
STRONG POSITION IN THE WORLD’S FASTEST-GROWING AVIATION INDUSTRY
The Indian aviation market is on its sustained recovery path and high growth trajectory after Covid, which
has a direct bearing on the business volumes for AIASL, - with the following milestone achievements:
o Domestic Air passenger traffic grew by 60% in FY 2022-23.
o Air carriers flew about 8.52 crore passengers on local routes in FY 2022-23.
o International Traffic is expected to recover to pre-COVID levels of FY 2020 in FY 2023-24
o India is 3rd largest domestic civil aviation market in the world after the USA and China and is expected
to become the 3rd largest air passenger (including domestic and international) market by 2024 besides
being 2nd fastest-growing aviation market in the world.
o There are about 750 aircraft capacity in India and it is expected to add about 1000 aircraft over the
next few years with firm aircraft orders by almost all the leading domestic schedule operators, as some
of them will replace the existing aircraft that are either phased out or leases terminated. As per the
forecast, India will need about 2,500 new commercial aircraft by 2038.
o In addition, there are about 830 aircraft being operated by NSOPs, Government, Private owned and
Training Institutes, etc., in India.
o About 12 Passenger Airlines and 4 Cargo Airlines in India operate about 750 aircraft consisting of 50+
wide-body aircraft, 80+ Turbo Props aircraft, and the balance aircraft are Narrow-body aircraft.
o There are about 103 NSOPs including 81 Domestic NSOP operators, operating 344 aircraft in India.
Top 15 NSOP operators accounted for more than 73% of the total domestic NSOP flights operated in
the year 2022-23
o There are about 25+ Ground handlers in India operating at various Airports.
o On the side of General Aviation operators, 150+ Business Jets, 30+ Turbo Props, and 320+ Helicopters,
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who engage in operating Private Charters and Business Charters flights in India to various Airports,
which is a potential business for AIASL.
o Air India is acquiring about 470 aircraft i.e. narrow-body aircraft and wide-body aircraft.
o Indigo is acquiring about 500 narrow-body aircraft.
o India further plans to increase the number of operational airports to 220 by 2025.
o The Ministry of Civil Aviation (MoCA) stated that growth in aviation is likely to increase direct employment
across Airports, Airlines, FTOs, MROs, and GHs.
Ground handling companies are also the direct beneficiaries of the aviation sector growth in India (higher
flights handled leading to optimum utilization of resources and a larger revenue pool for ground handling
companies)
With the launch of the UDAN 5.2, with newly identified routes, about 500 RCS Routes are operationalized as
on date. AIASL by virtue of its pan-India presence is well placed to further consolidate its market leadership
position. However, sustenance and continuation of such Regional Connectivity Services Flights, is a
challenge for the Airlines, and thereby to AIASL and the other GHA’s operating at these UDAN Airports.
GROUND HANDLING REGULATION, 2018:
Airports Authority of India issued (Ground Handling Services) Regulation, 2018, which came into effect on
30th October 2018 and it regulated the size and structure of India’s ground handling sector or third-party
Ground Handling and Self Handling . This was the first time that India has had a single-document vision for
the aviation sector and that was a welcome development.
Airports Authority of India (AAI) on April 20, 2023, issued the Airports Authority of India (Ground Handling
Services) Amendment Regulations, 2023 to further amend the Airport Authority of India (Ground Handling
Services) Regulation 2018, in continuation to the previously amended regulations in 2019 and 2020.
DGCA AI Circular, 2022 For Providing Ground Handling Services at Private Airports:
The DGCA had issued AIC S.No03/2022 dated 25th February 2022, “Grant of Permission for providing
Ground Handling (GH) Services at Airports other than those belonging to the Airports Authority of India” i.e.
GH Policy for all Airports that are managed by private operators. This has regulated the Ground Handling
Services at Private Airports in terms of the GH Policy, uniformly.
Airports Economic Regulatory Authority of India- AERA
o AERA, is an independent economic regulator, aims to create level playing field, foster healthy
competition amongst all major Airports to encourage investment in airport facilities and regulate
tariffs for aeronautical services.
o One of the statutory functions of AERA as AERA Act, 2008, with specific reference to Ground
Handling Services, is to determine the tariff for Ground Handling services at Airports.
o Ensure, Healthy Competition by removing monopolistic practices which are detrimental to all the
stakeholders.
PERFORMANCE OF THE COMPANY
Financial
During FY 2022-23, the total revenue of the Company was Rs.9,322.98 million as against the total restated
revenue of Rs.7,220.56 million during FY 2021-22. The total expenses were Rs. 8350.01 million as against
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restated expenses of Rs. 7,333.29 million during FY 2021-22. Profit incurred before tax during the year
ended 31st March 2023 was Rs.972.97 million against the restated figure of Loss before Tax of Rs.112.73
million during FY 2021-22. The Net profit incurred during the period was Rs.783.14 million as against the
restated Net Profit of Rs.59.96 million during FY 2021-22
Financial Key Achievements
o AIASL has recorded the highest ever earned revenue of Rs.9,322.98 million in FY 2022-23 since, the
operationalization of the Company. The Turnover of Rs.8944.73 million is 1.28 times of the previous
year.
o AIASL has been a profit-making company since its operationalization, except for the FY 2020-21 (Covid
period). The profitability course of the company has been restored, soon after that Covid year
o During FY 2022-23, Profit before tax i.e. Rs.972.97 million is a respectable profit over the previous
year.
o AIASL has recorded the highest Revenue of Rs.371.84 million from Non-Scheduled Operations since
its Operationalization.
o AIASL has received a Statutory Audit Report with “Nil Qualifications” for the second consecutive year.
This is a significant achievement of the management for having secured such reports after nearly 10
years of its inception.
o AIASL has successfully remained as a debt-free company since its inception.
o All statutory compliances have been complied with during the year.
o The net worth of the company has been increased from Rs.3451.40 million to Rs.4230.70 million.
o Internally generated and retained earnings are used for all its expenses, including the most needed
CAPEX requirements to replace age-old Ground Support Equipment, without seeking funds support
from the parent company, AI Assets Holding Limited (AIAHL) or Govt. of India. The choice of borrowing
debt from the Banks is still open.
o The health of any company is determined by its financial ratios. AIASL proudly carrying on its business,
so professionally, with its very healthy financial ratios.
o AIASL is able to meetup with minimum wage compliances, by supporting with its internally generated
earnings. The arrears for the non-compliant years, is also being met out of the internal earnings.
o Complete reconciliation and cleaning up of Accounts has been carried out in compliance of Ind AS
requirements and findings of various Audit Reports, in the past few years.
o First time, in the history of AIASL, every employee is being paid bonus, by giving acknowledgment to
the employees for their hard work in AIASL’s transformation and image makeover process.
Operational
o AIASL handled 1,09,024 flights (AI Group Flights & Alliance Air flights) during FY2022-23 against
87,246 flights during FY 2021-22.
o Similarly, AIASL handled 95,112 flights of Scheduled Client Airlines in FY 2022-23 as against 66,570
flights during FY 2021-22,
o Handled 16,471 flights of Non-Scheduled Operators during FY 2022-23 as against 13,706 flights during
FY 2021-22,
o Handled 115 HAJ flights during FY 2022-23.
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o AIASL is the single largest Ground Handling Agency in India and in the Region having a presence at 113
airports in India. The second-largest Ground Handling Agency in India is having a presence at about
16 Airports only when compared with the presence of AIASL. AIASL has a diverse mix of international
and domestic client Airlines, having scheduled and non-scheduled flight operations, besides cargo
freighters.
o AIASL is having the largest market share of ~48% as of 01st May 2023 (considering 33 Airports where
3rd party airlines operate with competitors).
o AIASL is having a Joint Working Group (JWG) arrangement, in association with M/s HAL at HAL
Airport, BLR to handle all the Defense aircraft at that airport. AIASL is also ready to handle A-321
aircraft, recently acquired by DRDO/IAF from Air India, for transporting Defense Personnel across the
network.
Cargo Warehouse Management at MAA & BOM:
o AIASL manages and operates International Cargo Warehouses at both Mumbai and Chennai
Airports on behalf of Indian Customs. With continuous efforts, AIASL has secured Regulated Agent
(RA) status from BCAS for its Chennai Cargo Warehouse and further, the documents for getting a
similar RA status from BCAS for the Mumbai Cargo Warehouse, have also been submitted with the
BCAS.
o Further, AIASL is in the process of getting RA3 status for both Chennai and Mumbai Cargo Warehouses,
this would facilitate the carriage of cargo to UK, Europe and other EU countries directly from here,
after the screening.
o AIASL is also providing cargo handling services at almost all the domestic airports in India, wherever
authorized.
Additionally, AIASL also provides cabin cleaning, deep cleaning, and cabin dressing services besides
undertaking repairs of aircraft Unit Load Devices (ULD) (Containers and Pallets) and inflight catering Meal
Carts.
VVIP / SESF / Defense Flights
AIASL is privileged to provide Ground Handling Services and handle the VVIP flights of the Hon’ble President,
Vice President, and Prime Minister of India, as AIASL has been appointed as the sole ground handler by
the Indian Air Force for the handling of SESF/VVIP flights at all Indian domestic and International airports
(including Civil Enclaves, and Defense Enclaves Airports). It also handles all flights on behalf of defense
forces at all Indian airports like IAF, BSF, Indian Navy, DRDO, HAL, NSG, etc. AIASL has been discharging
GH functions after taking over successfully from Air India, following the appointment of AIASL as the sole
Ground Handling Agency by the Indian Air Force for coordinating, arranging, and ensuring the handling of
SESF/VVIP flights at all foreign airports (Overseas).
In line with the long pending demand of Air India and their group Companies like Air India Express, Air Asia
and Vistara, (now managed by Tata), and other major client Airlines, besides various Airport Operators,
AIASL has embarked upon upgrading the aging Ground Support Equipment (GSEs). AIASL is finally in the
process of giving a facelift to existing GSEs by adding a sizeable number of branded and brand new GSEs,
by spending a sizeable amount over two years.
AIASL has also been recognized as a valued member and admitted in International Air Transport Association
(IATA) Ground Handling Partnership Program in the year for 2022.AIASL continued to reap the benefits
from the IATA Partnership besides acquiring expertise on par with the global practices in GH.
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Operational Key Achievements

o AIASL has registered its presence at the highest-ever, and record number of Airports across the
width and breadth of India, which can be seen in the below map:
o AIASL has the highest (more than optimal) utilization of the available Ground Support Equipment.
o Handled, highest number of flights ever, in the history of AIASL i.e. 2, 20,722 flights during the F.Y
2022-23.
o Region and customer wise flights handled by AIASL in FY 2022-23.
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Region Air Alliance Air India Third Non- HAJ Total

India Air Express Party Scheduled Flights
Airlines Operators
Number of flights
Northern 9,957 10,680 1,468 19,200 5,032 - 46,337
Southern 12,121 4,920 9,684 27,522 33,39 - 57,586
Eastern 14,307 9,484 - 31,964 2,118 92 57,965
Western 29,867 5,547 989 16,426 5,982 23 58,834
Total 66,252 30,631 12,141 95,112 16,471 115 2,20,722
CORPORATE SOCIAL RESPONSIBILITY (CSR) FOR FY 2022-23
The Board has constituted a CSR Committee in compliance with the provisions of the Companies Act,
2013, and laid down the CSR Policy with the objective of making a positive contribution to society through
high-impact, sustainable programs. As per the CSR provisions stipulated in the Companies Act, 2013,
AIASL was not required to spend any fresh CSR Contributions during FY 2022-23, other than the previous
year’s allocated CSR funds for an ongoing project that is being spent during this year to acquire the Trainer
Aircraft for IGRUA, Amethi.
A detailed report on the CSR activities including the details of unutilized CSR funds pertaining to the
Ongoing CSR Projects that form part of the Directors’ Report is annexed at Annexure II.
CORPORATE GOVERNANCE
AI Airport Services Limited is in compliance with the guidelines on Corporate Governance issued by the
Department of Public Enterprises (DPE), wherever applicable during the year. The Company, based on
self-evaluation, falls under ‘Excellent’ grade for the compliance of DPE Corporate Governance Guidelines
for the FY 2022-2023. The DPE has also awarded ‘Excellent’ grading to AIASL for compliance of DPE
Corporate Governance Guidelines during 2021-22.
ACKNOWLEDGMENTS
I take this opportunity to thank AI Assets Holding Limited (Holding Company), the Airports Authority of India,
the Bureau of Civil Aviation Security, the Director General of Civil Aviation, the AERA (Airport Economic
Regulatory Authority), and the Ministry of Civil Aviation for their unstinted support. I also acknowledge the
support extended by all the State Govt. Authorities and the other stakeholders including all Private Airport
Operators in India (GMR, Adani Airports, CIAL, etc), Banks, and Regulatory agencies, and assure all that
we will continue to cruise on our course of a growth trajectory, by taking AIASL to greater heights. I would
like to thank my colleagues on the Board for their valuable contribution and guidance, and KMPs led by the
Chief Executive Officer in turning around the company and bringing in transformation on all fronts to the
satisfaction of all Client Airlines.
I would also like to thank all the employees of AIASL through the Chief Executive Officer, for rising to the
occasion and putting in their exemplary efforts to show the world, the strength and resilience of our team
spirit in pursuit of excellence. I would like to express my gratitude to each one of our employees, for their
individual contributions, who have always upheld the image of AIASL and bringing in the desired changes
at this hour of need.
On behalf of the Board, I seek continued support from one and all, as always.
Sd/-
Satyendra Kumar Mishra
Chairman
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VISION:
To be the leader in providing World Class Ground Handling services at all Indian Airports and expand
Globally.
MISSION:
- Customer
é Provide safe, reliable, and on-time services
é Deliver the highest quality of service at all Indian Airports
é Provide State-of-the-Art Ramp Equipment
é Be the epitome of Indian Hospitality
- Processes
é Continuously improve standards of safety and efficiency
é Continuous up-gradation and modernization of ramp equipment
- People
é To maintain an energetic, qualified, and highly motivated professional team
é Maintain a high degree of work ethics
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DIRECTOR’S REPORT
The Directors take pleasure in presenting the Twentieth Annual Report of the Company, together with the
Audited Accounts, Auditor’s Report, and Comments by the Comptroller and Auditor General of India, for
the year ended 31st March 2023.
FINANCIAL PERFORMANCE
(Rupees in Millions)
Particulars 2022-23 2021-22
(Restated)
Total Revenue 9322.98 7220.56
Total Expenses 8350.01 7333.29
Profit(Loss) before Exceptional Items and Tax 972.97 (112.73)
Profit(Loss) before Tax 972.97 (112.73)
Current Tax 235.77 Nil
Short Provision of Tax Nil 24.62
Deferred Tax Asset (45.94) (197.30)
Net Profit(Loss) after Tax 783.14 59.96
During 2022-23, the total revenue of the Company was Rs.9,322.98 million as against total restated
revenue of Rs.7,220.56 million during 2021-22. The total expenses were Rs. 8,350.01 million as
against restated expenses of Rs.7,333.29 million during 2021-22. Profit earned before tax during
the year ended 31st March, 2023 was Rs.972.97 million against restated figure of Loss before Tax of
Rs112.73 million during 2021-22. The Net profit earned during the period was Rs.783.14 million as
against the restated Net Profit of Rs.59.96 million during 2021-22.
OTHER FINANCIAL INFORMATION
Share Capital:
The Authorized Share Capital of the company during the year was Rs.1000,00,00,000/- (Rupees One
Thousand Crores).
The Paid-Up Share Capital of the company during the year was Rs.138,42,42,000/- (13,84,24,200 Equity
Shares of Rs.10/- each).
During the year under review, there was no change in the share capital of the Company and the entire
shareholding is held by AI Assets Holding Limited (AIAHL).
CHANGES IN SHARE CAPITAL, IF ANY
There was no change in the Authorized and Paid-up Share Capital of the Company.
STAFF STRENGTH
Based on the requirements for handling of Air India, Air India Express, Alliance Air Aviation, and other
Customer airline flights including Non-Schedule operators flights at various Indian Airports, the number of
staff inducted under various categories as on 31st March, 2023 is given below:
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Particulars Numbers
Chief Executive Officer 1
GM-GS(O) 2
Company Secretary 1
DGM 5
Chief Financial Officer 1
Dy COF & AGM(O)-Finance 1
AGM/AGM-GH/AGM-HR/Sr Manager 38
Sr Manager Ramp 1
Chief Security Officer 1
Dy.Terminal Manager/Asst.Terminal Manager/Terminal Manager/Duty Manager/ 174
Duty Officer/Dy. Ramp Manager/ Chief Aircraft Operator /Account Asst./Assistant-
HR/Executive-IR/Executive MMD/Chief Security Officer-cum-Dy.Terminal Manager/
Executive-Commercial, Training & HAJ Flights, VVIP & SESF/Executive-SESF &
HAJ Charters/ Sr.Executive - Maintenance/ Sr.Executive – IT/Asst Regional Security
Coordinator/ Ass Exe Corporate Intelligence/ Deputy Manager
Aircraft Operator, Apron Supervisor, Asst-I, Asst-II, Sr Driver/ Ramp Operator 646
Jr Serv Engineer, SrSupdtServ Engineer, Manager Service Engineer, 66
Supt. Serv Engineer /Sr Sup Technician
Officer HR/Officer Accounts/Officer B&D/Officer Personnel 24
Manager-Finance/ Officiating Finanace Manager 4
Manager- HR 2
Manager-IT 1
Manager-Technical 1
Jr. Executive – Technical 102
Jr. Executive - Pax Handling/Jr. Executive - HR 175
Customer Agent/ Para Medical Agent cum Cabin Services Agent 2972
Jr. Customer Agent 625
Sr. Customer Agent 1164
RSA/RSA-I/RSA(LG) 210
Sr. RSA/Sr.RSA-I/Sup RSA 428
Security Agent 56
Sr. Security Agent/Sup.SA 29
Utility Agent 419
Utility Agent Cum Ramp Driver 1406
HandyMan/SafaiKamgar 7856
Utility Service Agent 28
Temporary Key Account Holder 1
Total 16440
IMPLEMENTATION OF RESERVATION POLICY:
The Reservation Policy has been implemented as per the Presidential Directives issued in the year 1975,
along with the revised Directives effective 1991 and 1996.
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SC/ST/OBC – Number of employees as on 31 March 2023

Total No. of Total No. % of SC Total No. of % of ST Total No. % of OBC
employees of SC employees ST employees employees of OBC employees
employees employees
16440 3466 21.08 663 4.03 3545 21.56
ACTIVITIES OF AI AIRPORT SERVICES LIMITED
AIASL provides Comprehensive Ground Handling services to AI Group (Air India & Air India Express
Limited), Alliance Air Aviation Limited (Group Company), and many Domestic & Foreign Airlines, Cargo
Charters Operators, and Non-Schedule Operators at various airports in India. AIASL also operates cargo
warehouses one each at BOM & MAA.
AIASL is a leading ground-handling service provider in India and offers ground-handling services at 113
airports (including civil airports and civil enclaves) in India. AIASL presently has a presence at 81 airports
and arranges the ground handling services at additional 32 airports on request. Besides, AIASL also offers
Ground Handling services at Defense Enclaves (Airports) for all defense aircraft.
The services can be majorly identified as:
 Passenger Handling / Ramp Handling / Cargo Handling / Cabin Services / Station Management
 Cargo warehouse handling at BOM & MAA as at present and any other airports in the future.
 Fabrication and repair of ULDs (Unit Loading Devices) & Meal cart repair workshop at HQ, IGI Airport-
Delhi.
 Engineering services through AIESL.
 Ground Handling Services to Subsidiary Companies – Alliance Air Aviation Ltd & AI Engineering
Services Ltd.
 Non-scheduled flights Handling of Domestic & International Private Charter flights - PAN India basis.
 Special Extra Section Flights (SESF) of Indian Air Force (IAF) – Domestic & International.
 Non-SESF Domestic Handling of Govt. Agencies (Indian Air Force, Indian Navy, Border Security Forces,
NSG Charter) etc.
 HAL – AIASL Joint Working Group at Bengaluru, HAL Airport.
As per MOCA’s direction that outsourcing will not be permitted at airports due to security reasons effective
31 December 2016, and non-entities (GHAs) exited totally w.e.f 15th August 2021, AIASL takes pride in
implementing the Government’s decision at all the Operational Airports(where non-entities exited) in India
where Ground Handling Services are provided by AIASL. There is NIL outsourcing of manpower as of date
in AIASL.
IMPLEMENTATION OF OFFICIAL LANGUAGE
The Company is taking steps for implementation of the provisions of the Official Language Act and Rules
framed under the Act.
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DISCLOSURE UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE

WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The provisions of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal)
Act, 2013 have been implemented in the company and necessary actions are being taken in line with
guidelines received from time to time to prevent Sexual Harassment of Women at the workplace.
An internal complaints committee has been put in place as per Section 4 of the Act. In terms of Section 22
of the Act, the details of sexual harassment cases filed, if any, in the company during the financial year, are
as under:
• Number of complaints of sexual harassment received in the year; 15
• Number of complaints disposed of during the year; 14
• Number of cases pending for more than ninety days; None
• Number of workshops or awareness programs carried out in connection with sexual harassment;
Training on POSH organized by NAHRD was provided to all the members of the POSH Committee in a
phased manner. Further, General awareness programs through internal circulars are being implemented
across all offices of AIASL.
• Remedial measures taken by the company: Female Security Staff Deployed at workplaces and Time to
Time Counseling are done.
COMPLIANCE WITH THE RTI ACT, 2005
AIASL has successfully ensured compliance with the provisions of the Right to Information Act for providing
information to the citizens.
AIASL has decentralized its structure to deal with the applications/appeals received under RTI Act with
effect from 18 February 2014, 05 Public Information Officers (PIOs), 05 Assistant Public Information
Officers (APIOs), 01 Nodal Officer and an Appellate Authority have been appointed for speedy disposal of
applications/appeals.
During 2022-23, 41 RTI Requests and 03 Appeals were received and all have been disposed off.
CHANGE IN NATURE OF BUSINESS
There is no change in the nature of business of the Company.
DIVIDEND
The directors are not recommending any dividend for the year.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
Since there was no unpaid/unclaimed dividend for the past years, the provisions of Section 125 of the
Companies Act, 2013 did not apply.
AMOUNT TRANSFERRED TO RESERVES
The Board of the company has decided/proposed to carry NIL amounts to its reserves.
DEPOSITS
The Company has not accepted any deposits during the year under review.
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MSE COMPLIANCE
It always has been the endeavor of AIASL to support Micro and Small Enterprises (MSEs) and local
suppliers. AIASL has taken a number of steps including implementing the Public Procurement Policy of the
Government of India to procure the items specified from MSEs. The actual procurement from MSEs during
the financial year 2022-23 was Rs.151.55 Million.
INFORMATION ABOUT SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint Venture or Associate Company.
MATERIAL CHANGES AND COMMITMENTS
No material changes have occurred between 31st March 2023, and the date of the Board’s Report affecting
the financial position of the Company.
MEETINGS OF THE BOARD OF DIRECTORS
As required under Section 173 of the Companies Act, 2013, during the FY 2022-23, 7 Board Meetings were
held through video-conferencing and one Board Meeting was held physically. Further, the provisions of
the Companies Act, 2013 were adhered to while considering the time gap between the two Meetings. The
details of the meetings held during the F.Y 2022-23 are as under:
Sr.No. Date of Meeting Board Strength No. of Directors Present
1 07th June 2022 4 3
2 12th July 2022 4 3
3 02nd August 2022 4 3
4 20th September 2022 4 3
5 30th November 2022 4 2
6 09th February 2023 4 4
7 23rd February 2023 4 2
8 29th March 2023 3 3
DIRECTORS’ RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms:
1. that in the preparation of the Annual Accounts, the applicable IndAS has been followed and there has
been no material departure;
2. that the selected accounting policies were applied consistently and the Directors made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
the Company as at 31 March 2023 and of the profit or loss of the Company for the year ended on that
date;
3. that proper and sufficient care has been taken for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
4. the Company being an unlisted Company, provisions of Section 134(3)(e) are not applicable;.
5. that the annual accounts have been prepared on a going concern basis; and
6. the Directors have devised proper systems to ensure compliance with the provisions of all applicable
Laws and that such systems were adequate and operating effectively.
14
AUDIT COMMITTEE
As part of the Corporate Governance and in compliance with the provisions of the Companies Act, 2013
and DPE Guidelines, the Company initially constituted the Audit Committee of the Board in November 2014
and reconstituted the same on 13th December 2017. Further, post disinvestment of Air India Limited, the
Board of AIASL was reconstituted by the Ministry of Civil Aviation (MoCA) vide its several OM’s issued from
time to time. Further, in pursuant to the OM dated 28.02.2023 issued by the MOCA, the Audit Committee of
AIASL was again reconstituted by the Board on 14th March 2023 by passing a Circular Resolution bearing
No.58 comprising of the following members.
Presently, the Audit Committee is comprised of :
Name of the Director Position Held in the Committee Category of the Director
Shri Padam Lal Negi Chairman Government Nominee Director
Jt. Secretary & Financial Advisor,
MoCA
Shri S.K. Mishra, Chairman & Member Government Nominee Director
Managing Director, AI Assets
Holding Limited,
Jt. Secretary, MoCA
Smt.Parama Sen, Member Government Nominee Director
Add. Secretary, DIPAM
The Board has accepted the recommendations of the Audit Committee.
AUDITORS
M/s S. Mann & Co., Chartered Accountants, Delhi, were appointed as Statutory Auditors for the year 2022-
23 by the Comptroller & Auditor General of India.
The Auditors’ Report along with Management’s replies thereon are attached. The notes on financial
statements are self-explanatory and need no further explanation.
COMMENTS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA
The comments of the Comptroller and Auditor General of India under Section 143 (6) (b) of the Companies
Act, 2013 on the accounts of the Company for the year ended 31 March 2023 is annexed to this Report.
SECRETARIAL AUDIT REPORT
The Board has appointed M/s Amit Agarwal & Associates, Company Secretaries, Delhi to conduct the
Secretarial Audit for the Financial Year 2022-23. The Secretarial Audit Report for the Financial Year ended
31st March 2023 is annexed at Annexure-V to this Report.
COST AUDIT
The Company maintains Cost Accounts and records as per the provisions of Section 148(1) of the Act and
the same are audited by the Cost Auditors. During the FY 2022-23, the Cost Audit Report for FY2021-22
was filed with the Ministry of Corporate Affairs on 29th December 2022.
M/s ABK & Associates, Cost Accountant had been reappointed as Cost Auditor for conducting the Cost
Audit for F.Y 2022-23, however, they had tendered their resignation on 28.02.2023, which was taken
on record by the management on 28.02.2023 and consequently, M/s K. G Goyal & Associates were
appointed as Cost Auditor for the Financial Year 2022-23 by the Board at its 97th Meeting held on 29th
15
March 2023 in order to fill the casual vacancy caused due to the resignation of M/s ABK & Associates,
Cost Accountant.
LOANS, GUARANTEES, AND INVESTMENTS
There were no loans, guarantees, or investments made by the Company under Section 186 of the Companies
Act, 2013 during the year under review, and hence the provisions of Section 186 are not applicable to the
Company.
DETAILS OF THE DIFFERENCE BETWEEN THE AMOUNT OF THE VALUATION DONE AT THE TIME
OF ONE-TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING A LOAN FROM THE
BANKS OR FINANCIAL INSTITUTIONS
During the year under review, no Loan/no one-time settlement of Loans taken from Banks and Financial
Institutions.
SIGNIFICANT & MATERIAL ORDERS
During the year no significant and material orders were passed by the Regulators, Courts, or Tribunals
impacting the Going Concern Status and Company’s operations in the future.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
(A) Conservation of Energy and Technology Absorption
The particulars as required under the provisions of Section 134(3)(m) of the Companies Act, 2013 in
respect of Conservation of Energy and Technology Absorption have not been furnished considering the
nature of activities undertaken by the Company during the year under review.
However, the Company has made all efforts wherever possible for the conservation of non-renewable
sources of energy and utilizing the alternative sources of energy.
(B) Foreign Exchange Earnings and Outgo
The foreign exchange earnings and outgo during the year under review were as under:
USD in Millions
Earnings USD 24.38
Outgo USD 0.04
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In compliance with the requirements of the Companies Act 2013, the Board initially constituted a CSR
Committee on 23rd May 2016. Further, post disinvestment of Air India Limited, the Board of AIASL was
reconstituted by the Ministry of Civil Aviation (MoCA) vide its several OM’s issued from time to time.
Further, in pursuant to the OM dated 28.02.2023 issued by the MoCA, the CSR Committee of AIASL
was reconstituted by the Board on 14th March 2023 by passing a Circular Resolution bearing No.58, in
compliance with the provisions of Section 135 of the Companies Act, 2013, the Rules made thereunder
and the guidelines formulated by the Department of Public Enterprises. As of 31st March 2023, the CSR
Committee comprises of:
16
Name of the Director Position Held in the Category of the Director

Committee
Shri S.K. Mishra, Chairman Government Nominee
Chairman & Managing Director, AI Assets Director
Holding Limited, Jt. Secretary, MOCA
Shri Padam Lal Negi Member Government Nominee
Jt. Secretary & Financial Advisor, MOCA Director
Smt. Parama Sen, Member Government Nominee
Add. Secretary, DIPAM Director
As per the CSR provisions stipulated in the Companies Act, 2013, AIASL was not required to spend any
fresh CSR Contributions during FY 2022-23.
However, during the FY 2020-21, AIASL transferred its unutilized CSR fund (accumulated from the FY
2017-18, 2018-19 & 2019-20) amounting to Rs.5,38,90,383/- towards Indira Gandhi Rashtriya Uran
Akademy(IGRUA) for providing scholarships for obtaining Commercial Pilot Training (CPL) to Economical
Weaker Section of Society. During the FY 2021-22, no progress was noted in the said ongoing project
due to the advent of COVID and other unavoidable reasons. Consequently, during FY 2022-23, the said
project was amended/modified in the Board Meeting held on 02.08.2022 based on IGRUA’s request.
According to the amended project, IGRUA was required to utilize the said CSR funds for the procurement
of trainer aircraft, and in lieu of this IGRUA shall extend free-of-cost training to 7 no of candidates from
economically weaker sections of the society. Further, on completion of FY 2022-2023, the said CSR
funds were still lying unutilized with IGRUA. On the backdrop of unutilized money lying in IGRUA Account
in the form of FD, AIASL opened an Unspent CSR Account and transferred the CSR unutilized funds
(with a surplus) amounting to Rs.5,96,68,779/- (Rs.5,38,90,383+ Rs.57,78,396) from IGRUA Account to
Unspent CSR Account of AIASL on 29.04.2023.
In furtherance thereof, the Board in its meeting held on the 15th day of September, 2023 approved the
following on the recommendation of the CSR Committee:
(i) To release the unutilized CSR funds lying in AIASL Unspent CSR Account along with the surplus, if
any (which have been allocated for IGRUA) on the submission/issuance of a Purchase Order or any
similar document by IGRUA for the procurement of trainer aircraft on or before 31.03.2024 in terms of
the CSR provisions and as per the existing approval, and
(ii) To permit IGRUA to procure the trainer aircraft as per the existing board approval using the CSR
funds, and
(iii) To allow IGRUA to continue the stipulated training(PPL/CPL/Type rating) beyond 31.03.2024 (to 7
EWS category candidates) and complete the training in about 24 months or as per IGRUA stipulated
training schedule, at IGRUA’s cost, in lieu of procurement of trainer aircraft with allotted CSR fund
and for which the IGRUA shall provide an undertaking to the AIASL Management that the training of
7 EWS candidates shall be imparted and completed in about 24 months from the commencement of
training or as per IGRUA stipulated training schedule.
(iv) To direct IGRUA to provide a status update on half half-yearly basis until Training is completed. Also,
to direct IGRUA to submit the following completion certificates:
(a) Certificate of completion in line with the fund utilization after the procurement of trainer aircraft.
(b) Certificate of Completion of trainer aircraft registration formalities in India, upon receipt
17
(c) Certificate of Completion of CPL training on completion of CPL training of 7 EWS category
candidates.
Annual Report on CSR Activities for the F.Y 2022-23 is enclosed as Annexure-II.
SECRETARIAL STANDARDS
During F.Y 2022-23, the Company has complied with all applicable mandatory Secretarial Standards issued
by the Institute of Company Secretaries of India.
CORPORATE GOVERNANCE
The Company has complied with the requirements of Corporate Governance. The detailed Corporate
Governance Report forms part of this Report separately.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
A detailed Management Discussion and Analysis Report is given separately.
EXTRACT OF ANNUAL RETURN
In compliance with the provisions of Section 92(3) and Section 134(3)(a) of the Companies Act, 2013,
a copy of the Annual Return of the company for the year ended 31st March, 2023 shall be displayed on
Company’s website at www.aiasl.in. Further, an extract of Annual Return in Form MGT-9 is annexed at
Annexure III.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND
BANKRUPTCY CODE, 2016
During the year under review, there were no applications made or proceedings pending in the name of the
Company under the Insolvency and Bankruptcy Code, 2016.
PARTICULARS OF EMPLOYEES
As per the Ministry of Corporate Affairs Notification dated 5 June 2015, provisions of Section 134(3) (e) are
not applicable to a Government Company.
Consequently, details on Company’s policy on Directors’ appointment and other matters are not provided
under Section 178(3).
Similarly, Section 197 shall not apply to a Government Company. Consequently, a statement showing the
names and other particulars of every employee of the Company, who if employed throughout / part of the
Financial Year, was in receipt of remuneration in excess of limits set out in the Rules, is not provided in
terms of Section 197(12) read with Rule 5(1) / (2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
AIASL being a Government Company, its Directors are appointed/ nominated by the Government of
India as per the Government / DPE Guidelines which also include fixation of pay criteria for determining
qualifications and other matters.
ANNUAL EVALUATION
Vide NotificationNo.G.S.R.463 (E) dated 5 June 2015, the provisions of Section 134(3)(p) relating to Board
Evaluation are not applicable since the Directors are evaluated by the Ministry of Civil Aviation.
18
INDEPENDENT DIRECTORS AND DECLARATION

AIASL is a wholly owned subsidiary of AI Assets Holding Limited. As per Article 97 of the Articles of
Association of the Company, the number of Directors of the Company shall not be less than three and not
more than fifteen all of whom shall be appointed by Administrative Ministry/AI Assets Holding Limited, who
in turn can do so subject to the directions of the Government of India.
AIASL is an unlisted public company and a wholly-owned subsidiary of AI Assets Holding Limited and as
per the Ministry of Corporate Affairs Circular dated 5th July 2017, an exemption has been given to unlisted
wholly-owned subsidiary companies from appointing Independent Director.
NOMINATION & REMUNERATION COMMITTEE
The constitution of the Nomination & Remuneration Committee under section 178 of Companies Act 2013
has been exempted for the unlisted wholly-owned subsidiary companies vide notification no. GSR 880(E),
dated 13-07-2017. AIASL being an unlisted wholly owned subsidiary company of AI Assets Holding Limited
thus got exempted from these provisions.
REMUNERATION POLICY
Remuneration to Executive Directors and Non-Executive Directors
Provisions of Section 197 of the Companies Act, 2013 in respect of remuneration to Directors of the
Company are not applicable to Government Companies vide Notification No.G.S.R.463(E) dated 5 June
2015.
INTERNAL FINANCIAL CONTROLS
Adequate internal financial controls are in place for ensuring the orderly and efficient conduct of its business,
including adherence to the Company’s policies; the safeguarding of its assets; the prevention and detection
of frauds and errors; the accuracy and completeness of the accounting records; and the timely preparation
of reliable financial information, which is commensurate with the operations of the Company.
Further, the company is in the process of strengthening the internal control process so as to ensure the
coverage of all the areas as envisaged and ensure effective internal controls at stations, regional offices,
user departments.
M/s G. Deep And Co, Chartered Accountants, Delhi was appointed as Internal Auditors to review the
business processes and controls to assess the adequacy of the internal control system, to ensure compliance
with all applicable laws and regulations and, facilitate in optimum utilization of resources and protect the
Company’s assets for F.Y 2022-23.
DISCLOSURE REGARDING FRAUDS
There were no frauds reported by the Auditor to the Audit Committee or to the Board.
RISK MANAGEMENT
The Company is in the process of formulating the Risk Management Policy with the following objectives:
 Provide an overview of the principles of Risk Management
 Explain the approach adopted by the Company for Risk Management
 Define the Organizational Structure for effective Risk Management
 Develop a “risk” culture that encourages all employees to identify risks and associated opportunities
and to respond to them with effective actions
19
 Identify, assess and manage existing and new risks in a planned and coordinated manner with minimum
disruption and cost, to protect and preserve Company’s human, physical and financial assets.
MANAGEMENT
DIRECTORS
During the Financial Year 2022-23, the following changes have occurred in the constitution of Directors and
KMP of the Company:
Sr. No Name Designation Date of Date of Cessation
Appointment
1 Shri. Vikram Dev Dutt Chairman & Nominee 27.01.2022 28.02.2023
Director
2. Smt. Parama Sen Nominee Director 11.02.2022 -
3. Shri. S.K Mishra Nominee Director 02.02.2017 -
(Elected as Chairman
w.e.f 01.03.2023)
4. Shri. V.A Patwardhan Nominee Director 20.03.2020 14.12.2023
5. Shri. Rajeshsingh Nominee Director 14.12.2022 18.01.2023
Shrinarayan Sharma
6. Shri Padam Lal Negi Nominee Director 18.01.2023 -
KEY MANAGERIAL PERSONNEL (KMP)
Sr. No Name Designation Date of Date of Cessation
Appointment
1 Shri Rambabu Ch. CEO 31.07.2021 -
2 Shri Satya Narayan CFO 13.12.2021 31.12.2022
Panda
3 Shri Sandeep Malhotra CFO 09.02.2023 -
4 Smt. Shashi Bhadoola CS 11.06.2020 -
RELATED PARTY TRANSACTIONS
The Company, during the Financial Year, entered into contracts or arrangements with related parties, which
were in the ordinary course of business and on an arm’s length basis. These transactions are not falling
under the provisions of Section 188(1) of the Act.
Exemption from the first and second proviso to sub-Section (1) of Section 188 with regard to obtaining
approval of the Company in General Meeting, has been provided to a Government Company in respect of
contracts or arrangements entered into by it with any other Government Company.
The Company has obtained approval of the Board in its 92nd Board Meeting held on 2nd August 2022
for entering into contracts/arrangements with AI Assets Holding Limited and other subsidiary companies
(Government Companies) for an estimated amount of approximately Rs.65.84 Crores during 2022-23. The
details of Related Party Transactions in form AOC-2 are attached at Annexure-IV.
There was no material related party transaction with the Company’s Directors’, Management or their
relatives, which could have had a potential conflict with the interests of the company.
20
ACKNOWLEDGEMENTS
The Board gratefully acknowledges the support and guidance received from AI Assets Holding Limited, the
Ministry of Civil Aviation, the Airport Authority of India, and the Bureau of Civil Aviation Security. The Board
expresses its grateful thanks to the Comptroller and Auditor General of India, the Ministry of Corporate
Affairs, the Statutory Auditors, and various other Government Departments.
For & on behalf of the Board
Sd/-
Chairman
Place: New Delhi

Date : 03.11.2023
21
MANAGEMENT DISCUSSION & ANALYSIS REPORT
1. ANALYSIS OF FINANCIAL PERFORMANCE

Revenue
Total revenue earned during the year was Rs.9,322.98 million as against restated Rs.7,220.56
million during 2021-22.
Expenditure
The total expenditure incurred during the year was Rs.8,350.01 million as compared to the restated
previous year’s figure of Rs.7,333.29 million.
2. FUTURE OUTLOOK
AI Airport Services Limited (AIASL) , was operationalized on 1st February 2013 and started its independent
operations effective April 2014. Presently, AIASL provides ground handling services at 113 airports
(at 81 Airports, AIASL is fully Operational, and at 32 Airports AIASL is setting as per the development of
business) in India.
In the current scenario, Ground handling (passenger, ramp, and cargo) is provided to 7Indian scheduled
airlines (including AI Group – Air India & Air India Express flights); 5 Regional Airlines (including Alliance Air
flights); 1 domestic cargo airline; 65 foreign scheduled airlines, 4 seasonal charter airlines and 22 foreign
airlines availing (APEDA) perishable cargo handling apart from Non-Scheduled handling.
Additionally, AIASL also provides Cabin Cleaning & Cabin Dressing services besides undertaking Repairs
ofAircraft Unit Load Devices (ULD) and Meal Carts.
Region and customer wise flights catered by AIASL in FY 2022-23 (01st April 2022 to 31st March 2023)
Region Air Alliance Air Air India Third Party Non- HAJ Total
India Express Airlines Scheduled Flights
Operators
Number of flights
Northern 9,957 10,680 1,468 19,200 5,032 - 46,337
Southern 12,121 4,920 9,684 27,522 33,39 - 57,586
Eastern 14,307 9,484 - 31,964 2,118 92 57,965
Western 29,867 5,547 989 16,426 5,982 23 58,834
Total 66,252 30,631 12,141 95,112 16,471 115 220722
AIASL, the future outlook can be summarized as follows:
 AIASL migrating to a new ERP system from SAP, for automation of systems.
 AIASL has taken over the Cargo Warehousing custodianship at MAA, from AI, which will add to revenue
generation.
 AIASL has secured Regulated Agent (RA) status from BCAS for its Chennai Cargo Warehouse.
Further, AIASL is in the process of getting RA3 status for both Chennai and Mumbai Cargo Warehouse,
including RA status for Mumbai Cargo warehouse.
 AIASL is planning to start handling of International Courier business at the MAA Cargo warehouse, to
introduce new services and bring in additional business.
22
 AIASL is continuing to facilitate SESF Operations both in India and abroad.

 AIASL is facilitating the handling of the entire Defense forces-operated aircraft in India at all Airports
including Defense enclaves.
 AIASL has joined the IATA Ground Handlers Partnership (IATA GHP) by associating itself on the IATA
worldwide Platform, for visibility among world airlines and World Non-Schedule operators.
 AIASL is participating in world Ground Handling Conferences, for networking and Sourcing business.
 Revamp the Security, HR, MMD and IT sections with professionals.
 AIASL has started the process to comply and obtain ISAGO certification.
 AIASL is continuing the process of establishing offices at various airports across India and establishing
prominence in the Ground Handling Market share.
 Strive to achieve the service level agreement requirements of customer airlines.
 Imparting grooming & soft skills training to all the frontline staff across the network for improving and
maintaining the service standards of Client Airlines.
 Introducing Uniform and safety PPE for the employees.
 Inculcating safety culture to reduce and minimize ground handling incidents and aircraft damage.
SMS/QMS Section is being set up in AIASL with professionals
 Emphasizing the importance of functional trainings and imparting regular trainings to the employees.
 Expanding the scope of AIASL ground handling services in terms of technical assistance and line
maintenance to Client airlines.
 Offering ULD repair services to other Client airlines other than Air India group.
 Payment Gateway for Non-Schedule Airline operators Payments, through AIASL’s new ERP system,
is being explored.
 Operationalizing its workshops located at major base stations (BOM, MAA, CCU, COK, GOI, PNQ,
ATQ) by using its skilled workforce, thereby saving huge maintenance costs.
 Planning to replace age old Ground Handling Equipment in a phased manner in line with the Board
Approval for CAPEX.
 Planning to support the Government drive of Eco-friendly environment at Airports in line with the Board
Approval.
 AIASL is in the process of acquiring Air India Unity Complex at Chennai Airport from AIAHL from its
internal revenues. The same will be registered for title transfer.
The Ground Handling market in India is poised to grow on account of preferential traveling by air, the
increasing population of air travelers, the government UDAAN scheme, the induction of aircrafts by Airlines
and various initiatives taken by airport operators. In such a simulated industrial environment, there would
be a significantly larger market opportunity for offering Ground Handling services by AIASL.
3. GOING CONCERN
The Company has earned net profit since 2012-13 which has increased from Rs.5.06 million during
2012-13 to Rs.504.83 million during 2019-20. However, due to the COVID-19 situation, the Company
23
has incurred a loss of Rs.1,900.28 million during FY 2020-21. During the current year, the company
made a net profit after tax of Rs.783.14 million.
4. HUMAN RESOURCES
Staff Strength
The number of staff inducted under various categories as on 31 March 2023 was 16440.
5. RISK MITIGATION STRATEGIES
The Company continuously monitors the risk perceptions and takes preventive action for mitigation of risks
on various fronts.
6. INTERNAL CONTROL SYSTEMS
M/s G. Deep and Co, Chartered Accountants, Delhi has been appointed as Internal Auditors to review
the business processes and controls to assess the adequacy of the internal control system, to ensure
compliance with all applicable laws and regulations and facilitate in optimum utilization of resources and
protect the Company’s assets for F.Y. 2022-23
24
REPORT ON CORPORATE GOVERNANCE
1. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

The company firmly believes in and has consistently practiced good Corporate Governance. The company’s
essential character is shaped by the values of transparency, professionalism, and accountability. The
company is committed to attain the highest standard of Corporate Governance. The philosophy of the
company in relation to Corporate Governance is to ensure transparency in all its operations, make
disclosures, and enhance all stakeholders’ value within the framework of laws and regulations.
2. BOARD OF DIRECTORS
AI Airport Services Limited (AIASL) is a Public Sector Undertaking and a wholly-owned subsidiary of AI
Assets Holding Limited. Its Directors are appointed by the holding company / administrative ministry. As per
Article 97 of the Articles of Association of the Company, the number of Directors shall not be less than three
and not more than fifteen all of whom shall be appointed by the holding company / administrative ministry.
Accordingly, the composition of the Board of AIASL is prescribed in the following manner.
Board Of Directors as on 31 March 2023
Shri S.K Mishra - Chairman & Nominee Director
Jt. Secretary
Ministry of Civil Aviation &
CMD, AI Assets Holding Limited
Shri Padam Lal Negi - Nominee Director

Jt. Secretary & Financial Advisor
Ministry of Civil Aviation
Smt. Parama Sen - Nominee Director

Additional Secretary
Department of Investment and Public Assets Management, (DIPAM)
In pursuance of OM dated 14.12.2022 issued by MoCA regarding the constitution/reconstitution of the
Board of subsidiaries of AIAHL inter alia AIASL, the below changes took place on the Board of AIASL:
Shri Vimlendra Anand Patwardhan ceased to be Director on the Board of AIASL and Shri RajeshSingh
Shrinarayan Sharma (Rajesh Singh), Joint Secretary & Financial Advisor (JS&FA), MoCA had been
appointed on the Board of AIASL w.e.f.14.12.2022.
Further, in pursuance of OM dated 18.01.2023 issued by MoCA regarding the constitution of the Board of
subsidiaries of AIAHL inter alia AIASL, the below change took place on the Board of AIASL:
Shri Rajesh Singh Shrinarayan Sharma (Rajesh Singh), ceased to be a Director on the Board of AIASL
and Shri Padam Lal Negi, Joint Secretary & Financial Adviser (JS&FA), MoCA, had been appointed on the
Board of AIASL w.e.f. 18.01.2023.
Further MoCA vide order dated 28.02.2023, has assigned the additional charge for the post of Chairman
and Managing Director (CMD) of AI Assets Holding Limited (AIAHL) to Shri Satyendra Kumar Mishra, Joint
25
Secretary, MoCA, for a period of three months w.e.f. 01-03-2023 or till the regular appointment of CMD,
AIAHL, whichever is earlier, by virtue of the appointment of Shri Vikram Dev Dutt as Director General in
the Directorate General of Civil Aviation (DGCA). In view of this, the following changes took place on the
Board of AIASL:
Shri. Vikram Dev Dutt ceased as Nominee Director and Chairman from the Board of AIASL w.e.f
28.02.2023. Further AIASL Board vide its Circular Resolution bearing No. 58 dated 14.03.2023 had
nominated and elected Shri Satyendra Kumar Mishra, as the Chairman on the Board of AIASL w.e.f
01.03.2023 and passed the requisite resolution on 14.03.2023 till any further instruction from the MoCA/
Holding Company.
The Board places on record its appreciation of the valuable services rendered by Shri Vikram Dev Dutt,
Chairman, Shri Vimlendra Anand Parwardhan, Director, and Shri Rajeshsingh Shrinarayan Sharma,
Director on the Board and Board level Committees of the Company during their tenure.
3. DETAILS REGARDING THE BOARD MEETINGS, ANNUAL GENERAL MEETING, DIRECTORS’
ATTENDANCE THEREAT, DIRECTORSHIPS, AND COMMITTEE POSITIONS HELD BY THE
DIRECTORS:
BOARD MEETINGS
Eight Board Meetings were held during the financial year on the following dates:
7th June 2022 (90th Meeting)
12th July 2022 (91st Meeting)
2nd August 2022 (92nd Meeting)
20th September 2022 (93rd Meeting)
30th November 2022 (94th Meeting)
9th February 2023 (95th Meeting)
23rd February 2023 (96th Meeting)
29th March 2023 (97th Meeting)
Particulars of Directors including their attendance at the Board / Shareholders’ Meetings during the financial
year 2022-23:
Name of the Academic Attendance Details of Memberships held in
Director Qualifications out of 8 Board Directorships held in Committees
Meetings held other Companies
during the year
Shri Vikram Dev B.Tech. & PGDM, 7 Chairman and AI Airport Services
Dutt, -Chairman IAS (UT:93) (Eligible to Managing Director Limited
(From 27th January attend 7 AI Assets Holding Chairman
2022 to 28th meetings only) Limited till 28.02.2023 Corporate Social
February 2023) Responsibility Committee
Chairman Member
AI Airport Services Audit Committee
Limited till 28.02.2023, AI Engineering Services
AI Engineering Limited
Services Limited till Chairman
28.02.2023, Corporate Social
Hotel Corporation of Responsibility Committee
India Limited (HCI) till Member
28.02.2023 Audit Committee
26

during the year
Director Alliance Air Aviation
Port Blair Smart Limited
Projects Limited Chairman
HR Committee
Flight Safety Committee
Member
Audit Committee
AI Assets Holding
Limited
Member
Audit Committee
Shri S. K. Mishra M.Tech (Applied 7 Chairman & AI Airport Services
Jt. Secretary, Geology) Managing Director Limited
Ministry of Civil M.A. (Public Policy), Chairman
Aviation - Nominee IRS (IT:1990) AI Assets Holding Corporate Social
Director Limited w.e.f Responsibility Committee
(From 02.02.2017) 01.03.2023 Member
(AIASL Board Audit Committee
had nominated Chairman * CSR Committee
and elected Shri. AI Airport Services (*Shri. S.K Mishra was
S.K Mishra as Limited w.e.f the member of CSR
Chairman of 01.03.2023 Committee before
the Board w.e.f AI Engineering 14.03.2023)
01.03.2023 and Services Limited w.e.f
consequently 01.03.2023 AI Engineers Services
become the Hotel Corporation of Limited
Chairman of CSR India Limited w.e.f Chairman
Committee w.e.f 01.03.2023 Corporate Social
14.03.2023.) Alliance Air Aviation Responsibility Committee
Limited w.e.f
01.03.2023 Member
Audit Committee
Director
AI Airport Services Alliance Air Aviation
Limited w.e.f. Limited
02.02.2017 Chairman
AI Engineering HR Committee
Services Limited w.e.f. Flight Safety Committee
02.02.2017
AI Assets Holding Member
Limited w.e.f Audit Committee
22.01.2018
AI Assets Holding
Limited
Chairman
Nomination &
Remuneration Committee
Member
Audit Committee
27

during the year
Shri V.A B.Com, IA &AS 4 Director AI Airport Services
Patwardhan, Officer, 1996 Batch. (Eligible to AI Airport Services Limited
Joint Secretary & attend 5 Limited, Chairman
Financial Advisor, meetings only) AI Engineering Audit Committee
Ministry of Civil Services Limited, Member
Aviation- Nominee AI Assets Holding CSR Committee
Director (From 20th Limited,
March 2020 to 14th Pawan Hans Ltd., AI Engineering Services
December 2022) Indian Renewable Limited,
Energy Development Chairman
Agency Limited Audit Committee
(IREDA), Member
Solar Energy CSR Committee
Corporation of India
Ltd. (SECI). AI Assets Holding
Limited
Chairman
Audit Committee
Indian Renewable Energy

Development Agency
Limited
Chairman
1. Nomination &
Remuneration Committee,
2.Stakeholder Relationship
Committee
Member
1. NPA & Stressed Assets
Resolution Committee
2. Audit Committee,
3. Risk Management
Committee
Pawan Hans Ltd.,

Member
Audit Committee
Solar Energy Corporation

of India Ltd (SECI),
Member
1. Remuneration
Committee,
2.Audit Committee
Airport Authority of India

Member
1. Remuneration
Committee,
2. Audit Committee
28

during the year
Smt. Parama Sen, MSC Physics, IA&AS 2 Director AI Airport Services
Additional Secretary, (1994) AI Airport Services Limited
DIPAM Limited, Member
(From 11th February AI Engineering Audit Committee
2022) Services Limited, CSR Committee
, AI Assets Holding
Limited, National AI Engineering Services
Land Monetization Limited
Corporation Limited Member
Audit Committee
CSR Committee
AI Assets Holding
Limited
Member
Nomination and
Remuneration Committee
Shri Rajeshsingh -B.Sc (Geology, 0 Director AI Airport Services
Shrinarayan Sharma Mathematics); (No meeting National Internet Limited
(From 14th Hansraj College, was held during Exchange of Chairman
December,2022 to Delhi University, his tenure) India, Audit Committee
18th January 2023) Delhi National Informatics Member
-M.Sc (Geology); Centre CSR Committee
Department of Services,
Earth Sciences, IIT Incorporated AI Engineering Services
Roorkee Digital India Limited,
University, Roorkee. Corporation, Chairman
-PG Diploma in Pawan HansLimited Audit Committee
Public Policy AI Engineering Member
Management from Services CSR Committee
MDI (Gurgaon), Limited, AI Airport
Services Limited, AI
Assets Holding Limited
Shri Padam Lal Negi Director AI Airport Services
(From 18th January IDAS 1992 3 AI Airport Services Limited
2023) (Eligible to Limited, Chairman
attend 3 AI Engineering Audit Committee
Meetings only) Services Limited, Member
AI Assets Holding CSR Committee
Limited,
Pawan Hans Ltd., AI Engineering Services
Indian Renewable Limited,
Energy Development Chairman
Agency Limited Audit Committee
(IREDA), Member
Solar Energy CSR Committee
Corporation of India
Ltd. (SECI). AI Assets Holding
Limited
Chairman
Audit Committee
29
4. BOARD PROCEDURE
The meetings of the Board of Directors were generally held at the registered office of the Company via
Video Conferencing (VC)/ physical mode or at the corporate office of Holding Company. The meetings are
scheduled well in advance. In case of exigencies or urgency, resolutions are passed by circulation. The
Board meets at least once a quarter to review the operating performance of the Company. The agenda
for the meetings are prepared by the officials of the concerned departments and approved by the CEO &
the Chairman. The Board papers are circulated to the Directors in advance. The members of the Board
have access to all information and are free to recommend the inclusion of any matter on the agenda for
discussion. Senior executives are invited to attend the Board meetings and provide clarification as and
when required. Action Taken Reports are put up to the Board periodically. To enable better and more
focused attention on the affairs of the Company, the Board delegates certain matters to committees of the
Board set up for the purpose.
5. CODE OF CONDUCT
In terms of requirements of DPE guidelines on Corporate Governance for CPSEs, the Board has adopted
Code of Conduct for the Directors and Senior Management. There is a system of affirming compliance with
the Code by the Board Members and Senior Management Personnel of the Company. A declaration of
compliance signed by the Chief Executive Officer of the Company is enclosed with the Report.
6. BOARD COMMITTEES
AUDIT COMMITTEE
As part of the Corporate Governance and in compliance with the provisions of the Companies Act, 2013
and DPE Guidelines, the Company initially constituted the Audit Committee of the Board in November 2014
and reconstituted the same on 13th December, 2017. Further, post disinvestment of Air India Limited, the
Board of AIASL was reconstituted by the Ministry of Civil Aviation (MoCA) vide its several OM’s issued from
time to time. Further, in pursuant to the OM dated 28.02.2023 issued by the MOCA, the Audit Committee of
AIASL was again reconstituted by the Board on 14th March 2023 by passing a Circular Resolution bearing
No.58 comprising of the following members.
As on 31 March 2023, the following were the Members of the Audit Committee:
(i) Shri Padam Lal Negi (JS&FA, MoCA) - Chairman
(ii) Shri Satyendra Kumar Mishra (CMD, AIAHL & JS, MoCA) - Member
(iii) Smt. Parama Sen [AS, DIPAM] - Member
The terms of reference of this Committee are:
 To recommend for appointment, remuneration and terms of appointment of auditors of the company;
 To review and monitor the auditor’s independence and performance, and effectiveness of audit
process;
 To review the Internal Audit program & ensure co-ordination between the Internal & External Auditors
as well as determine whether the Internal Audit function is commensurate with the size and nature of
the Company’s Business;
 To discuss with the Auditor before the audit commences the nature & scope of the audit;
30
 To examine the financial statements and the auditors’ report thereon;

 To review the Statutory Auditor’s Report, Management’s response thereto and to take steps to ensure
implementation of the recommendations of the Statutory Auditors;
 Approval or any subsequent modification of transactions of the Company with related parties;
 Scrutiny of inter-corporate loans and investments;
 Valuation of undertakings or assets of the Company, wherever it is necessary;
 Evaluation of internal financial controls and risk management systems;
 Monitoring the end use of funds raised through public offers and related matters;
 To consider any other matter as desired by the Board.
Meetings of the Audit Committee
The Audit Committee had met Seven times during the year to review various issues including inter alia
Financial Statement of the Company for the year before submission to the Board, as per details given
below:
7th June 2022 (31st Meeting)
12th July 2022 (32nd Meeting)
2nd August 2022 (33rd Meeting)
20th September 2022 (34th Meeting)
30th November 2022 (35th Meeting)
23rd February 2023 (36th Meeting)
29th March 2023 (37th Meeting)
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In compliance with the requirements of the Companies Act 2013, the Board initially constituted a CSR
Committee on 23rd May 2016. Further, post disinvestment of Air India Limited, the Board of AIASL was
reconstituted by the Ministry of Civil Aviation (MoCA) vide its several OM’s issued from time to time.
Further, in pursuant to the OM dated 28.02.2023 issued by the MoCA, the CSR Committee of AIASL
was reconstituted by the Board on 14th March 2023 by passing a Circular Resolution bearing No.58, in
compliance with the provisions of Section 135 of the Companies Act, 2013, the Rules made thereunder
and the guidelines formulated by the Department of Public Enterprises. As of 31st March 2023, the CSR
Committee comprises of:
(i) Shri Satyendra Kumar Mishra (CMD, AIAHL & JS, MoCA) - Chairman
(ii) Shri Padam Lal Negi (JS&FA, MoCA) - Member
(iii)Smt. Parama Sen [AJS, DIPAM] - Member
Meetings of the CSR Committee
The CSR Committee met Three times during the year to review various issues related to the CSR Budget,
CSR Activities, etc. as per the details given below:
7th June 2022 (15th Meeting)
12th July 2022 (16th Meeting)
2nd August 2022 (17th Meeting)
31
Annual General Meetings (AGM) during the last three years:

AGM Number Date and time of the Venue Special Resolution
Meeting
17th 29th December 2020 at 2nd Floor, GSD Building, Air India Yes
1100hrs Complex, Terminal-2, IGI Airport,
New Delhi-110037
17th 9th March, 2021 at 2nd Floor, GSD Building, Air India
(Adjourned) 1100hrs Complex, Terminal-2, IGI Airport,
New Delhi-110037
18th 30th November 2021 at 2nd Floor, GSD Building, Air India Yes
New Delhi-110037
18th 14th December 2021 at 2nd Floor, GSD Building, Air India
(Adjourned) 1100hrs Complex, Terminal-2, IGI Airport,
New Delhi-110037
19th 30 December 2022 at 2nd Floor, GSD Building, Air India
th
Yes
New Delhi-110037
 During the year 2021-22, one Extra Ordinary General Meeting was held on 14th day of January
2022.
 M/s Link Intime India Pvt Ltd having its address at C 101, 247 Park, L B S Marg, Vikhroli West, Mumbai
400083, is the Registrar and Transfer Agent (RTA) of the Company.
7. DISCLOSURES AND STATUTORY COMPLIANCES: -
Adequate Disclosures pertaining to Director’s interest, related party transactions, and maintenance of
statutory registers have been taken and placed periodically before the Board of Directors to take informed
decisions, with the Board following a clear policy of specific delegation and authorization of designated
officers to handle the business matters. MCA Filings with respect to disclosures, intimations, allotments,
and appointments have been made in a time-bound manner with no pending matters. The Company, based
on self-evaluation, falls under the ‘Excellent’ grade for the compliance of DPE Corporate Governance
Guidelines for two financial years 2020-21 and 2021-22. The DPE has also awarded ‘Excellent’ grading
to AIASL for compliance of DPE Corporate Governance for two financial years 2020-21 and 2021-22. The
rating for F.Y 2022-23 is awaited.
8. CEO/CFO DECLARATION:
The Chief Executive Officer and Chief Financial Officer have certified in writing with respect to the truth and
fairness of the financial statements, due compliances, and financial reporting which was placed before the
Audit Committee and Board Meeting and forms part of this report.
32
CODE OF CONDUCT
DECLARATION
Pursuant to DPE guidelines on Corporate Governance for CPSEs, all the Board Members & Senior
Management Personnel have affirmed compliance with the Code of Conduct, as adopted by the Board of
Directors, for the year ended March 31, 2023.

Sd/-
(Rambabu Ch.)
Chief Executive Officer
Place: Delhi
Date: 03.11.2023
33
DECLARATION BY CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER
To,
The Board of Directors,
AI Airport Services Limited,
We, Rambabu Ch. , Chief Executive Officer and Sandeep Malhotra , Chief Financial Officer of AI Airport
Services Limited (hereinafter “the Company”), do hereby certify that:
1. We have reviewed the financial statements for the financial year 2022-2023 and that to the best of our
knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;
b) these statements give a true and fair view of the state of affairs of the Company and of the results
of operations and cash flows. The financial statements have been prepared in conformity, in all
material respects, with the existing generally accepted accounting principles including Accounting
Standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company
during the year which are fraudulent, illegal or violative of the Company’s code of conduct.
3. We accept overall responsibility for the Company’s internal control system for financial reporting. This
is monitored by the internal audit function, which encompasses the examination and evaluation of the
adequacy and effectiveness. Internal audit works with all levels of management and statutory auditors,
and reports significant issues to the Audit Committee of the Board of Directors.
The Auditors and Audit Committee are apprised of any corrective action taken with regard to significant
deficiencies and material weaknesses.
4. We indicate to the Auditors:
a) Significant changes in internal control over financial reporting during the year;
b) Significant changes in accounting policies during the year;
5. We further declare that all Board Members and Senior Managerial Personnel have affirmed compliance
with the code of conduct during the year ended 31st March 2023.
For AI Airport Services Limited

Sd/- Sd/-
Rambabu Ch. Sandeep Malhotra
Chief Executive Officer Chief Financial Officer
PAN: AGVPC9371P PAN: AFWPM3559B
Place: New Delhi
Date: 19.07.2023
34
C
D
Annexure I
AI AIRPORT SERVICES LIMITED (FORMERLY KNOWN AS AIR INDIA AIR TRANSPORT SERVICES
LIMITED)
CSR POLICY
A. Background
The new Companies Act, 2013 has introduced the concept of Corporate Social Responsibility (CSR)
through its ‘comply’ – explain mandate. In terms of the provisions of this Act, w.e.f. 1 April 2014 every
Company, Private Limited or Public Limited, which has a net worth of Rs.500 crores or a turnover
of Rs.1000 crores or net profit of Rs.5 crores has to spend at least 2% of its average net profit for
the immediately preceding three financial years on CSR activities. The CSR activities should not
be undertaken in the normal course of business and must be with respect to any of the activities
mentioned in Schedule VII of the Act. The Companies (CSR Policy) Rules, 2014 place down the
framework and modalities of carrying out CSR activities.
B. CSR Policy
I. Objective and Scope
The main objective of the CSR Policy is to lay down guidelines for AI Airport Services Limited (Formerly
known as Air India Air Transport Services Limited) (“AI APS”) to make CSR as one of the areas which
focuses on making a positive contribution to society through high impact, sustainable programs.
AI APS will focus on CSR activities in and around areas of Company’s operations viz., airports
and city offices. AI APS is committed to allocate at least 60% of the CSR budget for these local
communities.
AI APS will implement CSR activities to empower weaker, less privileged and marginalized sections
of the society to create social capital.
II. CSR Organization Structure
a) CSR Committee
The Company will have a Board Level Sub Committee, hereinafter referred to as CSR Committee,
consisting of three or more Directors out of which at least one shall be an Independent Director, if any.
The roles / responsibilities of the CSR Committee include :
(i) Formulate and recommend a CSR Policy to the Board of Directors for approval.
(ii) Recommend CSR activities as stated in the Schedule VII of the Companies Act 2013.
(iii) Recommend the CSR budget to be incurred on the activities referred to in clause (ii)
above.
(iv) Spend the allocated amount on the CSR activities once the same is approved by the
Board.
(v) Monitor the CSR Policy of the Company from time to time.
(vi) Create a transparent monitoring mechanism for implementation of the CSR projects /
programs / activities.
35
(vii) Approve projects / programs / activities with monetary value of Rs.50 lakhs and above in
each case.
(viii) Approve projects / programs / activities of any value which are outside AI APS’s focus
areas.
b) CSR Working Committee
Members of CSR Working Committee:
(i) Chief Executive Officer Chairman
(ii) Chief of Finance
(iii) Chief of Personnel
(iv) Company Secretary
The roles and responsibilities of the CSR Working Committee include :
(i) Review the proposals for CSR projects / programs / activities received from various
locations
(ii) Approve proposals of value less then Rs.10 lakhs against approved allocated budget
III. CSR Focus Area Projects / Programs / Activities
(a) AI APS’s CSR focus area projects / programs / activities are inspired by national
developmental policies for development of children, women and weaker sections of the
society and are based on inspiration from legislations on child rights, child development
and education, national skilled development mission, Swach Bharat Mission and policies
on community / rural development.
(b) The Company proposes to implement its CSR activities in the areas of
● Education
● Skilled development
● Environment and community development
● Drinking water
● Rural development
● Child care
● Conservation of natural resources
● Promoting and development of art and culture
● Public libraries
● Promotion and development of traditional arts and handicrafts
● Sports
● Health& Nutrition
(c) Detailed break up of projects / programs / activities under each of the above areas will be
approved in line with the limits of authority manual.
(d) Any projects / programs / activities in areas other than the above will be taken up with the
approval of the CSR Committee.
36
(e) These projects / programs/ activities shall be undertaken at any of the following :
● The area in the proximity to AI APS’s operation area / locations
● In Backward Region Grant Fund (BRGF) districts as identified by Planning
Commission
● Where there is a strategic connect for AI APS
(f) CSR projects / programs / activities will be implemented through implementing partners /
specialized agencies. The minimum eligibility criteria for an implementing partner are as
follows :
● It must be a registered society, trust, company or any specialized agency having
minimum of three years of experience post registration in handling activities of similar
nature.
● Experience of working with any government body or public sector enterprise will be
preferred.
However, the selection authority can request any other qualification on a mandatory basis
from the applicants while selecting the implementing partners.
IV. CSR Budget / CSR Spend
(i) As provided under the Companies Act, 2013 AI APS shall earmark as CSR Budget at least
2% of the average net profits of the Company during the three immediately preceding
financial years.
(ii) Budgetary allocation :
(a) Not less than 60% of the budget will be allocated for activities in a project mode.
(b) Not more than 5% of the budget will be allocated for capacity building and
communications.
(c) Balance budget could be for one time and other social activities.
(d) In case the Company fails to spend the budget in any particular financial year, the
Committee shall submit a report in writing to the Board of Directors specifying the
reasons for not spending the amount which shall be reported by the Board in the
Directors’ Report for that particular financial year. Any surplus arising out of the
CSR projects / programs/ activities shall not form part of the business profit of the
Company.
V. Monitoring Mechanism
(i) Monitoring process will be a two tier mechanism through
(a) CSR Committee on quarterly basis
(b) CSR Working Committee and Representatives of entities with which the Company
decides to collaborate together would ensure effective implementation and monitoring
of the projects / programs/ activities approved by the CSR Committee. They will
submit periodic reports to the CSR Committee on the progress of various projects /
programs / activities approved by the Committee.
37
(ii) In addition to the above, at the end of the year a third-party impactt assessment of major
projects will be carried out.
VI. Publication of CSR Policy and Programs
As per the CSR Rules, the contents of the CSR Policy shall be included in the Directors’ Report and
the same shall be displayed on the Company’s website.
VII. Policy Review and Future Amendment
The Committee shall annually review its CSR Policy and make suitable changes as may be required
and submit the same for the approval of the Board.
38
Annexure-II
AI AIRPORT SERVICES LIMITED
(FORMERLY KNOWN AS AIR INDIA AIR TRANSPORT SERVICES LIMITED)
Annual Report on CSR
Financial Year 2022-23
1. Brief outline on CSR Policy of the Company.
• The Board of Directors of the Company have adopted a CSR Policy, which includes implementation
of CSR activities in the areas of Education, Skill Development, Women Empowerment, Environment,
Rural Development, Child and Women Health, etc. The Company's Policy is to focus on making
positive contributions to society through high-impact, sustainable programs. At least 60% of the CSR
budget would be allocated for CSR activities in a project mode. The Company will implement CSR
activities to empower weaker, less privileged, and marginalized sections of the society to create social
capital.
• The CSR focus area projects/programs/activities are inspired by the National Development Policies
and would cover various areas as detailed in the CSR Policy. These activities could be undertaken
in the proximity of the Company's operation area, BRGF districts as identified by the Planning
Commission, and where there was a strategic connect for the Company.
• The CSR projects/programs / activities would be implemented through implementing partners /
specialized agencies, the selection of whose would be based on the laid down criteria.
• A brief outline of the Company's CSR Policy including an overview of projects or programs proposed
to be undertaken can be viewed on the website of the Company i.e. www.aiasl.in.
2. Composition of CSR Committee:
Sl. Name of Director Designation/ Number of Number of
No. Nature of Directorship meetings of meetings of
CSR Committee CSR Committee
held during the attended during
year the year
1. *Shri Vikram Dev Dutt Chairman 3 3
(Ceased to be Chairman w.e.f
28.02.2023)
2. Shri V.A Patwardhan Member 3 3
(Ceased to be Member w.e.f
14.12.2022)
3. *Shri S.K Mishra Member 3 3
(Designation changed from
Member to Chairman w.e.f
14.03.2023)
4. Smt. Parama Sen Member 3 0
5. ** Shri. Rajesh Singh Member 3 0
Shrinarayan Sharma (Member from 19.12.2022 to
18.01.2023 )
6. **Shri. Padam Lal Negi Member 3 0
(Member from 30.01.2023)
* Shri. Vikram Dev Dutt ceased as Nominee Director and Chairman from the Board & CSR Committee
of AIASL w.e.f. 28.02.2023. Further, in pursuant to the OM dated 28.02.2023 issued by the MoCA, the
39
CSR Committee of AIASL was reconstituted by the AIASL Board on 14th March 2023 by passing a
Circular Resolution bearing No.58, in compliance with the provisions of Section 135 of the Companies
Act, 2013, the Rules made thereunder and the guidelines formulated by the Department of Public
Enterprises, whereby Shri. Satyendra Kumar Mishra has become the Chairman of the CSR Committee
w.e.f. 14.03.2023.
** The CSR Committee met three times during the year i.e. 7th June 2022, 12th July 2022 and 2nd August
2022, therefore Shri. RajeshSinghShrinarayan Sharma and Shri Padam Lal Negi had not attended any
meetings during F.Y 2022-23.
3. Provide the web link where the Composition of the CSR committee, CSR Policy and CSR projects
approved by the board are disclosed on the website of the company:
S. No Particulars Weblink
1. Composition of CSR Committee https://www.aiasl.in/csr.aspx
2. CSR Policy https://www.aiasl.in/csr.aspx
3. Project approved by the Board https://www.aiasl.in/csr.aspx
4. Provide the details of the Impact assessment of CSR projects carried out in pursuance of
sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if
applicable (attach the report).:
Not Applicable.
5. Details of the amount available for setoff in pursuance of sub-rule (3) of rule 7 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, and amount required for setoff for the
financial year, if any:
Not Applicable
6. Average net profit of the company as per section 135(5): Nil
7. (a) Two percent of the average net profit of the company as per section135(5) : Nil
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial
years : NIL
(c) Amount required to be set off for the financial year, if any : NA
(d) Total CSR obligation for the financial year (7a+7b-7c). : Nil
8. (a) CSR amount spent or unspent for the financial year : Nil
Total Amount Spent for Amount Unspent (in Rs.)
the Financial Year.
Total Amount transferred to Amount transferred to any fund specified
(inRs.)
Unspent CSR Account as under Schedule VII as per the second
per section 135(6). proviso to section 135(5).
Amount. Date of Name of the Amount. Date of
transfer. Fund transfer.
Nil - - - - -
40
(b) Details of CSR amount spent against ongoing projects for the financial year : Nil
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name Item from Local Location of Project The Amount Amount Mode of Mode of
No. of the the list of area the project. duration. amount spent in transferred Implemen- Implemen-
Project. activities (Yes/ allocated the to Unspent tation tation Through
in No). for the current CSR Implementing
Schedule project financial Account Agency
VII to the (in Rs.). Year for the
Act. State. District. (in Rs.). project as Name CSR
per Section Registra-
135(6) tion
(in Rs.). number.
1. - - - - - - - - - - -
(c) Details of CSR amount spent against other than ongoing projects for the financial year: Nil
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name Item from Local Location of the Amount Mode of Mode of
No. of the the list of area project. spent for implemen- implementation-
Project activities in (Yes/ the project tation Through
schedule VII No). (inRs.). on Direct implementing agency.
to the Act. State District. (Yes/No). Name. CSR
Registration
number.
NA NA NA
(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: Not Applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): Nil
(g) Excess amount for set off, if any: Nil
Sl. Particular Amount
No. (in Rs.)
(i) Two percent of average net profit of the company as per section135(5) -
(ii) Total amount spent for the Financial Year -
(iii) Excess amount spent for the financial year[(ii)-(i)] -
(iv) Surplus arising out of the CSR projects or programs or -
Activities of the previous financial years, if any
(v) Amount available for setoff in succeeding financial years [(iii)-(iv)] -
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount Amount Amount transferred to any fund The amount
No. Financial transferred spent in the specified under Schedule VII as remaining to
Year. to Unspent Reporting per section 13 if any. be spent in
CSR Account Financial Name Amount (in Date of succeeding
under Year (in Rs.) of the Rs). transfer. financial
section135 (6) Fund years. (in
(in Rs.) Rs.)
1 2019-20 - - 5,38,90,383
2 2020-21 - *5,38,90,383/- 5,38,90,383
3 2021-22 - - 5,38,90,383
41
* This is an exceptional case, where during the FY 2020-21 AIASL transferred its unutilized CSR fund
(accumulated from the FY 2017-18, 2018-19 & 2019-20) amounting to Rs.5,38,90,383/- towards Indira
Gandhi Rashtriya Uran Akademy (IGRUA) for providing scholarships for obtaining Commercial Pilot
Training to Economical Weaker Section of Society. During the FY 2021-22, no progress was noted in the
said ongoing project due to the advent of COVID and other unavoidable reasons. Consequently, during
FY 2022-23, the said project was amended/modified in the Board Meeting held on 02.08.2022 based on
IGRUA’s request. According to the amended project, IGRUA was required to utilize the said CSR funds
for the procurement of trainer aircraft, and in lieu of this IGRUA shall extend free-of-cost training to 7 no
of candidates from economically weaker sections of the society. Further, on completion of FY 2022-2023,
the CSR funds were still lying unutilized with IGRUA. On the backdrop of unutilized money lying in IGRUA
Account in the form of FD, AIASL opened an Unspent CSR Account and transferred the CSR unutilized
funds (with a surplus) amounting to Rs.5,96,68,779/- (Rs.5,38,90,383+ Rs.57,78,396) from IGRUA Account
to Unspent CSR Account of AIASL on 29.04.2023, which may further be allocated to IGRUA, if the Board
satisfied itself that the CSR –IGRUA project could be completed by March 2024, else the said CSR funds
shall be transferred to the fund specified under Schedule VII with the approval of the Board on or before
30.04.2024.
In furtherance thereof, the Board in its meeting held on the 15th day of September, 2023 approved the
following on the recommendation of the CSR Committee:
(i) To release the unutilized CSR funds lying in AIASL Unspent CSR Account along with the surplus, if
any (which have been allocated for IGRUA) on the submission/issuance of a Purchase Order or any
similar document by IGRUA for the procurement of trainer aircraft on or before 31.03.2024 in terms
of the CSR provisions and as per the existing approval, and
(ii) To permit IGRUA to procure the trainer aircraft as per the existing board approval using the CSR
funds, and
(iii) To allow IGRUA to continue the stipulated training(PPL/CPL/Type rating) beyond 31.03.2024 (to 7
EWS category candidates) and complete the training in about 24 months or as per IGRUA stipulated
training schedule, at IGRUA’s cost, in lieu of procurement of trainer aircraft with allotted CSR fund
and for which the IGRUA shall provide an undertaking to the AIASL Management that the training of
7 EWS candidates shall be imparted and completed in about 24 months from the commencement of
training or as per IGRUA stipulated training schedule.
(iv) To direct IGRUA to provide a status update on half half-yearly basis until Training is completed. Also,
to direct IGRUA to submit the following completion certificates:
(a) Certificate of completion in line with the fund utilization after the procurement of trainer
aircraft.
(b) Certificate of Completion of trainer aircraft registration formalities in India, upon receipt
(c) Certificate of Completion of CPL training on completion of CPL training of 7 EWS category
candidates.
42
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding
financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project Name Financial Project Total Amount Cumulative Status of
No. ID. of the Year in duration. amount spent on the amount spent the project
Project. Which the allocated project in at the end Completed
project was for the the reporting of reporting /Ongoing.
commenced. project Financial Year Financial Year.
(in Rs.). (in Rs). (in Rs.)
1.
TOTAL
10. In case of the creation or acquisition of capital asset, furnish the details relating to the assets
created or acquired through CSR spent in the financial year (asset-wise details). : NA
(a) Date of creation or acquisition of the capital asset(s).
NA
(b) Details of the entity or public authority or beneficiary under whose name such capital assets
is registered, their address etc.:
NA
(c) Provide details of the capital asset(s) created or acquired (including complete address and
location of the capital asset).:
NA
(d) Specify the reason(s), if the company has failed to spend two percent of the average net profit
as per section 135(5):
As per the CSR provisions stipulated in the Companies Act, 2013, AIASL was not required to spend any
fresh CSR Contributions during FY 2022-23. However, the detail pertaining to the unutilized fund for the
preceding 3 years has already been stated in point 9 (a) above.
Sd/- Sd/-
Satyendra Kumar Mishra Rambabu Ch.
Chairman of CSR Committee Chief Executive Officer
Sd/- Sd/-
Shashi Bhadoola Sandeep Malhotra
Company Secretary Chief Financial Officer
43
Annexure III
ANNEXURE TO DIRECTORS’ REPORT FOR THE YEAR 2022-23
FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN
Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management &
Administration) Rules, 2014.
I. REGISTRATION & OTHER DETAILS:
1. CIN U63090DL2003PLC120790
2. Registration Date 9th June 2003
3. Name of the Company AI AIRPORT SERVICES LIMITED
4. Category/Sub-category of the Company Government Company
5. Address of the Registered office & 2nd Floor, GSD Building, Air India Complex,
contact details Terminal-2, IGI Airport, New Delhi South West Delhi
DL 110037 IN
6 Whether listed company No
7. Name, Address & contact details of the Link Intime India Private Limited
Registrar & Transfer Agent, if any. C-101, 247 Park,
L.B.S. Marg Vikhroli (West)
Mumbai – 400083
+91 22 49186000
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing
10% or more of the total turnover of the company shall be stated) –
Sr Name and Description of main NIC Code of the % to total turnover of
No products/services Product/ service the company
1. Service activities incidental to air 522 100
transportation
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY:
Sr. Name and Address of the CIN/GIN Holding / % of Applicable
No. Company Subsidiary / Shares Section
Associate
1 AI Assets Holding Limited U74999DL2018GOI328865 Holding 100% 2 (46)
Indian Airlines Bldg, 113,
Gurudwara Rakabganj Road,
Na New Delhi North East Dl
110001 In
IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as a percentage of :
Total Equity) :
No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
[As on 01-04-2022] [As on 31-03-2023] Change
Category of
Shareholders Demat Physical Total % of Demat Physical Total % of during
Total Total the
Shares Shares year
A. Promoters
(1) Indian
a) Individual/ HUF
44
No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
[As on 01-04-2022] [As on 31-03-2023] Change
Category of
Shareholders Demat Physical Total % of Demat Physical Total % of during
Total Total the
Shares Shares year
b) Central Govt
c) State Govt(s)
d) Bodies Corp. 138424200 0 138424200 100 138424200 0 138424200 100
e) Banks / FI
f) Any other
Total
shareholding of 138424200 0 138424200 100 138424200 0 138424200 100
Promoter (A)
B. Public
Not Applicable
Shareholding
1. Institutions
a) Mutual Funds/
UTI
b) Banks / FI
c) Central Govt.
d) State Govt.(s)
e) Venture Capital
Funds
f) Insurance
Companies
g) FIIs
h) Foreign
Venture Capital
Funds
i) Others (specify)
Foreign Banks
Sub-total (B)(1):- - - - - - - - - -
Category-wise Share Holding

Category of No. of Shares held at the beginning of the No. of Shares held at the end of the year %
Shareholders year [As on 01-04-2022] [As on 31-03-2023] Change
Demat Physical Total % of Demat Physical Total % of during
Total Total the
Shares Shares year
Non-Institutions Not Applicable
a) Bodies Corp. (Market
Maker + LLP)
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders
holding nominal share
capital uptoRs. 1 lakh
ii) Individual shareholders
holding nominal share
capital in excess of Rs. 1
lakh
45
Category of No. of Shares held at the beginning of the No. of Shares held at the end of the year %
Shareholders year [As on 01-04-2022] [As on 31-03-2023] Change
Demat Physical Total % of Demat Physical Total % of during
Total Total the
Shares Shares year
c) Others (specify)
i) Non Resident Indians
ii) Non Resident Indians -
Non Repatriable
iii) Office Bearers
iv) Directors
v) HUF
vi) Overseas Corporate
Bodies
vii) Foreign Nationals
viii) Clearing Members
ix) Trusts
x) Foreign Bodies - D R
Sub-total (B)(2):- - - - - - - - - -
Total Public Shareholding - - - - - - - - -
(B) = (B)(1)+ (B)(2)
C. Shares held by - - - - - - - - -
Custodian for GDRs &
ADRs
Grand Total (A+B+C) 138424200 0 138424200 100 138424200 0 138424200 100
B) Shareholding of Promoter-
Sr Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. Name No. of % of total %of Shares No. of % of total %of Shares Shareholding
Shares Shares of the Pledged / Shares Shares Pledged / during the
Company encumbered of the Encumberedd year
to total shares company to total shares
1 AI Assets Holding 138424200 100 NIL 138424200 100 NIL 100
Limited
C) Change in Promoters’ Shareholding (please specify, if there is no change):

Sr Particulars Shareholding at the beginning Cumulative Shareholding at end
No. of the year of the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders
of GDRs and ADRs):
Sr For Each of the Top 10 Shareholders Shareholding at the Cumulative Shareholding at
No beginning of the year end of the year
No. of shares % of total shares No. of shares % of total
of the company shares of the
company
NOT APPLICABLE
46
E) Shareholding of Directors and Key Managerial Personnel:
S. Shareholding of each Directors and each Key Shareholding at the beginning Cumulative Shareholding at the
No. Managerial Personnel of the year end of year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
NIL
(Note : Equity Shares are held by Nominees of AI
Assets Holding Limited only, which includes
Directors also ddirectors also)
Total
V. INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but

not due for payment.
(In Rs Crore)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year 0 0 0 0
i) Principal Amount 0 0 0 0
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 0 0 0 0
Total (i+ii+iii) 0 0 0 0
Change in Indebtedness during the financial year 0 0 0 0
* Addition 0 0 0 0
* Reduction 0 0 0 0
Net Change 0 0 0 0
Indebtedness at the end of the financial year 0 0 0 0
i) Principal Amount 0 0 0 0
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 0 0 0 0
Total (i+ii+iii) 0 0 0 0
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager : NOT APPLICABLE
(Figures in Rs.)
Sr Particulars of Remuneration Name of MD/WTD/ Manager Total
No Amount
1 Gross salary
(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act,
1961
(b) Value of perquisites u/s 17(2) Income-tax
Act, 1961
(c) Profits in lieu of salary under section
17(3) Income- tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commissionas % of profitothers, specify.
5 Others : (PF, DCS, House Perks tax etc)
Total (A)
Ceiling as per the Act
* There are no Managing, Whole Time Directors in the Company.
47
B. Remuneration to other directors-Not applicable

Sr Particulars of Remuneration Name of Directors Total
No. Amount
1 Independent Directors
Fee for attending board committee meetings
Commission - - - - - -
Others, please specify (Fees for attending - - - - - -
Board Sub Committee Meetings)
Total (1) - - - - - -
2 Other Non-Executive Directors - - - - - -
Fee for attending board committee meetings - - - - - -
Commission - - - - - -
Others, please specify - - - - - -
Total (2) - - - - -
Total (B)=(1+2) - - - - - -
Total Managerial Remuneration - - - - - -
Overall Ceiling as per the Act - - - - - -
- - - - - -
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

(figures in million)
Sr. Particulars of Key Managerial Personnel
No. Remuneration CEO CS CFO Total
Shri Rambabu Smt. Shashi Shri Satya Shri Sandeep
Ch. Bhadoola Narayan Panda Malhotra
(From 01.04.2022 (From 09.02.2023
to 31.12.2022) to 31.03.2023)
1 Gross salary 4.867 1.080 1.260 0.268 7.475
(a) Salary as per provisions - - - - -
contained in section
17(1) of the Income-tax
Act, 1961
(b) Value of perquisites u/s - - -
17(2) Income-tax Act,
1961
(c) Profits in lieu of salary - - -
under section 17(3)
Income-tax Act, 1961
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission - - -
- as % of profit - - -
Others, specify. - - -
5 Others: (PF, DCS, House - - -
Perks tax etc)
Total 4.867 1.080 1.260 0.268 7.475582
48
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Authority Appeal made,
Companies Description Penalty / [RD / NCLT/ if any (give
Act Punishment/ COURT] Details)
Compounding
fees imposed
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Sd/-
Chairman
49
Annexure-IV
FORM NO. AOC-2
[Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8 (2) of the Companies
Accounts Rules, 2014).
Form for disclosure of particulars of contracts/arrangements entered into by the Company with
related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including
certain arm’s length transactions under third proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis:
There were no contracts or arrangements or transactions entered during the year ended March
31, 2023, which were not at arm’s length basis.
2. Details of contracts or arrangements or transactions at arm’s length basis.
All contracts /arrangements/transactions entered by the Company with related parties under
Section 188(1) of the Act during the financial year 2022-23 were on an arm’s length basis, in
the ordinary course of business, which were duly approved by the 92nd Board Meeting of the
Company held on 2nd August 2022. The details of Contracts or arrangements or transactions at
arm’s length basis are as follows”:
Name of Related Party and Nature of Transaction Duration of Salient Terms of Amount in
Nature of Relation transaction Transaction Millions
AI Assets Holding Limited Revenue from Operation 01.04.2022-
Holding Company 31.03.2023
Manpower services Revenue 1.52
Expenditure
Reimbursement of cost Expenditure 6.38
Interest on outstanding Expenditure 35.69
payable
Alliance Air Aviation Limited Revenue from Operation 01.04.2022-

(AAAL) (subsidiary of AI 31.03.2023
Assets Holding Limited)*
Ground handling Revenue 281.49
revenue
Supply of manpower Revenue 0.59
services
Interest on outstanding Revenue 94.80
recoverable
Expenditure
SOD Expenditure 1.25
50
Name of Related Party and Nature of Transaction Duration of Salient Terms of Amount in
Nature of Relation transaction Transaction Millions
AI Engineering Services Revenue from Operation 01.04.2022-
Limited(subsidiary of AI 31.03.2023
Assets Holding Limited)*
Manpower services/ Revenue 204.08
cabin cleaning
Interest on outstanding Revenue 21.87
recoverable
Expenditure
Provision for Head Set Expenditure 12.42
Hotel Corporation of India Expenditure 01.04.2022-

Limited (Subsidiary of same 31.03.2023
of AI Assets Holding Limited)
Staff hotel expenses 7.52
Festive expenses 2.27
Event expenses 1.93
Sd/-
Chairman
51
SECRETARIAL AUDIT REPORT

For The Financial Year Ended March 31, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
(Formerly known as Air India Air Transport Services Limited)
2nd Floor, GSD Building, Air India Complex, Terminal-2,
IGI Airport, New Delhi-110037
CIN: U63090DL2003PLC120790
We report that:
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by AI Airport Services Limited [(Formerly known as Air India Air
Transport Services Limited) (hereinafter referred as ‘the Company’)] having its registered office at 2nd
Floor, GSD Building, Air India Complex, Terminal-2, IGI Airport, New Delhi-110037. Secretarial Audit was
conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Company’s Responsibilities
The Company’s Management and Board of Directors are responsible for the maintenance of secretarial
record under the Companies Act, 2013 and compliance of the provisions of Corporate and other applicable
laws, rules, regulations, standards. Further the Company’s management and the Board of Directors are
also responsible for establishing and maintaining adequate systems and process, commensurate with the
size and operations of the Company to identify, monitor and ensure compliances with the applicable laws,
rules, regulations and guidelines.
Auditor’s Responsibilities Statement
Our responsibility is only to examine and verify those compliances on a test basis and express an opinion
on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the Secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,
we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the
Company. Wherever required, we have obtained the Management representation about the compliance of
laws, rules and regulations and happening of events etc.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.
52
Limitations
Due to the inherent limitations of an audit including internal, financial and operating controls, there is an
unavoidable risk that some Misstatements or material non-compliances may not be detected, even though
the audit is properly planned and performed in accordance with the Secretarial Auditing Standards as
prescribed by Institute of Company Secretaries of India (ICSI).
Further, we conducted the secretarial audit by examining the secretarial records including minutes,
documents, registers, other records and returns related to the applicable laws on the Company etc. received
via electronic means. The management has confirmed that the records submitted to us are the true and
correct. We have also relied upon representation given by the management of the Company for certain
areas which otherwise requires physical verification.
Basis of Opinion
We have followed the audit practices, secretarial auditing standards and processes as were applicable
and appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial
records. The verification in some cases was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion. We also believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Report on Secretarial Records and Compliances thereof
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and
other records maintained by the Company and also the information provided by the Company, its officers,
agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our
opinion, the Company has during the audit period covering the financial year ended on March 31, 2023
complied with the statutory provisions listed hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter.
We have examined the books, papers, minute books, forms and returns filed and other records maintained
by the Company AI Airport Services Limited [(Formerly known as Air India Air Transport Services
Limited) for the financial year ended on March 31, 2023 according to the applicable provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
Not Applicable
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent
of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (Not
applicable to the company during the Audit Period): Not Applicable
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (‘SEBI Act’): Not Applicable
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
53
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,
2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,
2014 [Not applicable to the company during the Audit Period];
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008 [Not applicable to the company during the Audit Period];
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993, regarding the Companies Act and dealing with client [Not applicable to the
company during the Audit Period];
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
[Not applicable to the company during the Audit Period];
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 [Not
applicable to the company during the Audit Period]; and
(i) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
(vi) Other laws applicable specifically to the Company namely:
a) The DPE Guidelines.
b) The Competition Act, 2002.
c) The Right to Information Act, 2005;
d) Air Corporations Act, 1953
e) Airports Authority of India Act, 1994
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India with respect to
conducting board and general meetings.
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, standards etc. mentioned above.
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-
Executive Directors. The Changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
Adequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance for meetings other than those held at shorter notice, and
a system exists for seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting.
54
Majority decision is carried through while the dissenting members’ views are captured and recorded as part
of the minutes.
We further report that there are adequate systems and processes in the Company commensurate with
the size and operations of the Company to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
We further report that the compliance by the Company of applicable financial laws like direct and indirect
tax laws and maintenance of financial records and books of accounts has not been reviewed in this Audit
since the same have been subject to review by statutory financial audit by other designated professional.
We further report that during the audit period there were no specific events / corporate actions in pursuance
of the above referred laws, rules, regulations, guidelines, standards, etc.
For Amit Agarwal & Associates
(Company Secretaries)
Sd/-
CS Amit Agrawal
Date : 01.08.2023 Partner
Place: New Delhi CP No. 3647, MNo.5311
UDIN: F005311E000717242
This report is to be read with my letter of even date which is annexed as an “Annexure-A” and forms an
integral part of this report.
55
ANNEXURE- A
To,
The Members,
2nd Floor, GSD Building, Air India Complex, Terminal-2,
IGI Airport, New Delhi-110037
CIN: U63090DL2003PLC120790
My Secretarial Audit Report of even date is to be read along with this letter:
1. Maintenance of Secretarial record is the responsibility of the management of the Company. My
responsibility is to express an opinion on these secretarial records based on our audit.
2. I have followed the audit practices and process as were appropriate to obtain reasonable assurance
about the correctness of the contents of the Secretarial records. The verification was done on test basis
to ensure that correct facts are reflected in Secretarial records. I believe that the process and practices,
I have followed, provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of
the Company.
4. Where ever required, I have obtained the management representations about the compliance of laws,
rules and regulations and happening of events etc.
5. The Compliance of provisions of corporate and other applicable laws, rules, regulations, standards is
the responsibility of the management. My examination was limited to the verification of procedure on
test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability nor of the efficacy of the
effectiveness with which the management has conducted the affairs of the Company.
For Amit Agrawal & Associates

(Company Secretaries)
Sd/-
CS Amit Agrawal
Place: New Delhi Partner
Date : 01.08.2023 CP No. 3647, MNo.5311
UDIN: F005311E000717242
56
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA

UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL
STATEMENTS OF AI AIRPORT SERVICES LIMITED FOR THE YEAR ENDED 31
MARCH 2023
The preparation of financial statements of AI AIRPORT SERVICES LIMITED for the year ended 31 March
2023 in accordance with the financial reporting framework prescribed under the companies act, 2013 (Act)
is responsibility of the management of the company. The Statutory Auditor appointed by the Comptroller
and Auditor General of India under section 139(5) of the Act is responsible for expressing opinion on the
financial statements under section 143 of the act based on independent audit in accordance with the
standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by
them vide their Audit Report dated 19 July 2023.
I, on behalf of the comptroller and Auditor General of India, have conducted a supplementary audit of the
financial statements of AI AIRPORT SERVICES LIMITED for the Year ended 31 March 2023 under section
143(6) (a) of the Act. This supplementary audit has been carried out independently without access to the
working papers of the statutory auditor and is limited primarily to inquiries of the Statutory Auditor and
company personnel and a selective examination of some of the accounting records.
Based on my supplementary audit, I would like to highlight the following significant matters under section
143(6) (b) of the Act which have come to my attention and which in my view are necessary for enabling a
better understanding of the financial statements and the related audit report.
A. Comments on Profitability
Statement of Profit and Loss
Current Tax - ₹ 23.58 crore
Deferred Tax - ₹ (4.59) crore
The unabsorbed loss brought forward from previous year (2021-22) was ₹ 65.05 crore. The same was
adjusted as unabsorbed losses while computing the tax of ₹ 23.58 crore payable for the current year.
However, the said brought forward loss amounting to ₹ 65.05 crore was also considered while computing
the Deferred Tax expense of ₹16.37 crore as on 31 March 2023 and accordingly, the Deferred Tax Asset
has been created for such absorbed loss.
Para 5 of Ind AS 12 on Income Taxes states that ‘Deferred tax assets are the amounts of income taxes
recoverable in future periods in respect of (a)deductible temporary differences; (b) the carry forward of
unused tax losses; and (c) the carry forward of unused tax credits.’
Thus, as the unabsorbed loss was already considered while computing the tax payable for the current
year, therefore, the same should not have been considered while computing Deferred Tax Assets as
there is no unabsorbed carry forward loss for the year ended 31 March 2023.
This has resulted in overstatement of Deferred Tax Assets and understatement of Deferred Tax Expense
by ₹16.37 crore. Consequently, profit after tax is also overstated to the same extent.
The above has also rendered note no. 46 deficient to that extent. Further, non-reporting of the above said
57
issue by the statutory auditor has rendered the Independent Auditor’s Report deficient to that extent.
B. Comments on Auditors’ Report
1. Annexure ‘A’ to the Independent Auditor’s Report – Para no. vii (b)
The above states that as of 31 March 2023, the company has disputed outstanding dues under the Provident
Fund Act, 1952 for ₹6.01 crore related to damages and interest for the period 2020-2022. However, the
company has not disputed the said dues and made provision of ₹6.01 crore during the current year. Also,
out of the said dues of ₹ 6.01 crore, the company paid an amount of ₹ 0.15 crore in February 2023. Since
the above said dues were not under dispute, hence the dues amounting to ₹ 5.86 crore should have been
depicted as undisputed dues under para no. vii (a) of Annexure A of Independent Auditor’s Report. Thus,
the Independent Auditor’s Report is deficient to that extent.
2. Annexure ‘A’ to the Independent Auditor’s Report – Para no. (xi)(a)
According to para 3(xi) (a) of Companies (Auditor’s Report) Order, 2020, the statutory auditor shall report
in its Independent Auditor’s Report ‘Whether any fraud by the company or any fraud on the company has
been noticed or reported during the year; if yes, the nature and the amount involved is to be indicated.’
However, the statutory auditor has reported that ‘According to the information and explanation given to us
and based on our examination, we report that no fraud by the company or on the company by its officers or
employees has been noticed or reported during the year’.
As the company has reported about the fraud by the company or on the company by its officers or employees
only and no reporting regarding the frauds by the company or on the company by any third party has been
done. This has rendered the Independent Auditor’s Report deficient to that extent.
For on behalf of the

Comptroller and Auditor General of India
Sd/-
(Atoorva Sinha)
Principle Director of Audit (Infrastructure)
Place: New Delhi New Delhi
Date: 25.09.2023
58
MANAGEMENT REPLY ON THE COMMENTS ON THE COMPTROLLER AND

AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES
ACT, 2013 ON THE FINANCIAL STATEMENTS OF AI AIRPORT SERVICES
LIMITED FOR THE YEAR ENDED 31 MARCH 2023
CAG Comments for FY 22-23 Management’s Reply
A. Comments on Profitability Brought forward of losses of Rs 65.05 crores
Statement of Profit and Loss has been considered erroneously while
computing the deferred tax for the year 2022-
Current Tax - ₹ 23.58 crore
23.
Deferred Tax - ₹ (4.59) crore
Further, We would like to state that there is no
The unabsorbed loss brought forward from previous year
financial impact of deferred tax on operating
(2021-22) was ₹ 65.05 crore. The same was adjusted
profit of the company for the year 2022-23
as unabsorbed losses while computing the tax of ₹ 23.58
since the deferred tax is below the line item in
crore payable for the current year . However, the said
statement of Profit and Loss Account.
brought forward loss amounting to ₹ 65.05 crore was also
considered while computing the Deferred Tax expense of Deferred tax asset/ deferred tax liability is only
₹16.37 crore as on 31 March 2023 and accordingly, the an estimate which arises at the end of the
Deferred Tax Asset has been created for such absorbed financial year based on the timing differences
loss. as per Ind AS 12 like provision for tax which
is payable to Income Tax department as
Para 5 of Ind AS 12 on Income Taxes states that ‘Deferred
per Income Tax Act, 1961, which also gets
tax assets are the amounts of income taxes recoverable
changed after completion of tax audit.
in future periods in respect of (a) deductible temporary
differences; (b) the carry forward of unused tax losses; Since the company has made the provision
and (c) the carry forward of unused tax credits.’ for income tax accurately and excess
deferred tax created is only an estimate in
Thus, as the unabsorbed loss was already considered
financial statements at the year end and not
while computing the tax payable for the current year,
payable to any authority, further, we ensure
therefore, the same should not have been considered while
to take the necessary impact of DTA/DTL in
computing Deferred Tax Assets as there is no unabsorbed
next FY 23-24.
carry forward loss for the year ended 31 March 2023.
In view of the auditors, in accordance with
This has resulted in overstatement of Deferred Tax Assets
Para A111 of Standard on Auditing 315,
and understatement of Deferred Tax Expense by ₹ 16.37
deferred tax is neither a transaction nor
crore. Consequently, profit after tax is also overstated to
an event and only an estimate of tax on
the same extent.
timing difference. It is below the line item
The above has also rendered note no. 46 deficient to that in statement of Profit and Loss Account and
extent. Further, non-reporting of the above said issue has no financial impact on operational profit
by the statutory auditor has rendered the Independent of the company for the year 2022-23.
Auditor’s Report deficient to that extent.
59
CAG Comments for FY 22-23 Management’s Reply

B. Comments on Auditors’ Report Auditors have been apprised about this
1. Annexure ‘A’ to the Independent Auditor’s Report – observation with respect to their Audit Report
Para no. vii (b) and they have duly noted it for their future
compliance.
The above states that as of 31 March 2023, the company
has disputed outstanding dues under the ProvidentFund
Act, 1952 for ₹ 6.01 crore related to damages and
interest for the period 2020-2022. However, the company
has not disputed the said dues and made provision of
₹6.01 crore during the current year. Also, out of the said
dues of ₹ 6.01 crore, the company paid an amount of ₹
0.15 crore in February 2023. Since the above said dues
were not under dispute, hence the dues amounting to
₹ 5.86 crore should have been depicted as undisputed
dues under para no. vii (a) of Annexure A of Independent
Auditor’s Report. Thus, the Independent Auditor’s Report
is deficient to that extent.
2. Annexure ‘A’ to the Independent Auditor’s Report – As such, the statutory auditors have noted
Para no. (xi)(a) for future compliance that with respect to
According to para 3(xi) (a) of Companies (Auditor’s reporting on fraud as per of Companies
Report) Order, 2020, the statutory auditor shall report (Auditor’s Report) Order, 2020, the reporting
in its Independent Auditor’s Report ‘Whether any fraud with respect to fraud by third parties is also to
by the company or any fraud on the company has been be mentioned which erroneously missed out
noticed or reported during the year; if yes, the nature and in their audit report. However, in the auditors
the amount involved is to be indicated.’ subsequent replies to provisional comments
issued by CAG, they have confirmed that no
However, the statutory auditor has reported that ‘According
fraud has been reported by third parties on
to the information and explanation given to us and based
company during the period under audit.
on our examination, we report that no fraud by the company
or on the company by its officers or employees has been
noticed or reported during the year’.
As the company has reported about the fraud by the
company or on the company by its officers or employees
only and no reporting regarding the frauds by the company
or on the company by any third party has been done. This
has rendered the Independent Auditor’s Report deficient
to that extent.
******
60
INDEPENDENT AUDITORS’ REPORT

To
The Members of AI AIRPORT SERVICES LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of AI AIRPORT SERVICES LIMITED (“The
Company”), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss
(including other comprehensive income), the statement of changes in equity and the statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as “financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so
required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, its profit and total comprehensive income, changes in equity and its cash flows for
the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the
Auditor’s Responsibilities for the Audit of the financial statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the financial statements under
the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial
statements.
Emphasis of Matter
1. We draw attention to Note 53 to the financial statements, During the year 2022-23, Air India Limited
and Alliance Air Aviation Limited has raised an invoice for an amount of Rs. 121.41 million and Rs.
1.61 million respectively towards penalty. However, the same has not been provided in the books of
accounts of the company.
2. We draw attention to Note 37 to the financial statements, the Company is charging interest at the
rate of 9% p.a. on overdue balances of receivables in respect of group companies, namely, Air India
Engineering Services Limited and Alliance Air Aviation Limited. During the audit period, interest on
overdue payments amounting to Rs.116.67 million has been booked as other income. We have
relied on the management contention that such amount will be fully recovered and hence, no further
adjustments are required for the current audit period.
61
3. We draw attention to Note 7 to the financial statements, the Company has inventories consisting of
stores and spares gross amounting to Rs. 56.11 million (Provision of Rs. 33.14 million has been made
for obsolescence of such inventories). These inventories are transferred from Air India Limited and
Air India Engineering Services Limited, which are not used for more than three years. We have relied
on the management contention that such inventories have value in use and is at-least equal to the
carrying value in the books based on the confirmation received from the user (technical) department of
the Company and hence, no further adjustments are required for the audit period.
4. We draw attention to Note 54 to the financial statements, the Company has entered into leases
for various commercial premises (with option to purchase/renew but title of the same may or may
not eventually be transferred) which are scattered at various locations/stations/regions, there is a
foreclosure clause in the contract wherein it is cancellable by providing notice period of 90 days by
either side. In view of the management, considering it as cancellable lease, the same does not qualify
for recognition under Ind AS 116 Lease Accounting.
Pending evaluation, these leases have not been considered as right-of-use asset under Ind AS 116
and rent of the same has been charged systematically to the statement of profit & loss for the current
year. We have relied on the management contention that the impact of the same will not be material.
5. We draw attention to Note 47 to the financial statements, the Company has provided interest amounting
to Rs. 35.69 million at the rate of 9% p.a. to AIAHL on average of outstanding balance payable.
6. We draw attention to Note 33 to the financial statements, amounts receivables from and payables to
the various parties are subject to confirmation and reconciliation.
7. We draw attention to Note 43 to the financial statements, Go Airlines India Limited has submitted
their application to NCLT for insolvency resolution process and accordingly NCLT has accepted the
application and initiated the insolvency process vide order dated May 10th, 2023 and now company
has filed its claim amounting Rs 220.35 million as on March 31st, 2023 (including interest amounting
Rs 11.27 million and accordingly company has made the 100% provision of the receivables excluding
interest in ECL).
Our opinion is not modified in respect of these matters.
Information Other than the Financial Statements and Auditors’ Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and analysis, Board’s Report
including Annexures to Board’s Report but does not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements, or
our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated.
When we read the other information comprising the above documents, if we conclude that there is
a material misstatement therein, we are required to report the fact. We have nothing to report in this
regard.
62
Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance, and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors of the company is also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are
also responsible for expressing our opinion on whether the Company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
63
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
Report on Other Legal and Regulatory Requirements
A. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central
Government in terms of Section 143(11) of the Act, we give in “Annexure-A” a statement on the
matters specified in paragraphs 3 and 4 of the Order.
B. As required by Section 143(3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books.
(c) The Balance sheet, the Statement of Profit and Loss including other comprehensive income, the
statement of changes in equity and the statement of cash flows dealt with by this report are in
agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section
133 of the Act.
(e) In pursuance to the Notification No. G.S.R 463 (E) dated 05-06-2015 issued by the Ministry of
Corporate Affairs, sub-section (2) of section 164 of the Act pertaining to disqualification of the
directors, is not applicable to the Company.
64
(f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure-B”.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of Section 197(16) of the Act, as amended.
In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the
provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information
and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its
financial statement.
ii) The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts. The Company does
not have any derivative contracts.
iii) There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.
iv) a. The Management has represented that, to the best of it’s knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company
to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
b. The Management has represented, that, to the best of it’s knowledge and belief, no funds (which
are material either individually or in the aggregate) have been received by the Company from
any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
c. Based on the audit procedures that has been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.
v) The company has not declared or paid any dividend during the financial year.
vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using
accounting software which has a feature of recording audit trail (edit log) facility is applicable to the
65
Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
C. As required by Section 143(5) of the Act and as per directions issued by comptroller and Auditor
General of India, the actions taken thereon and its impact on the accounts and financial statements of
the Company, refer to our separate report in “Annexure C”.
For S. Mann & Co

Chartered Accountants
Firm Registration No. 000075N
Sd/-
(Subhash Chander Mann)
Partner
Membership No. 080500
UDIN : 23080500BGXRAU5748
Place: New Delhi

Date: 19.07.2023
66
ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in “Paragraph-A” under ‘Report on Other Legal and Regulatory Requirements’
section of our report to the Members of AI AIRPORT SERVICES LIMITED of even date)
To the best of our information and according to the explanations provided to us by the Company and the
books of account and records examined by us in the normal course of audit, we report that:
i. In respect of the Company’s Property, Plant and Equipment and Intangible Assets:
(a) (A) The Company has not maintained proper records showing full particulars, including quantitative
details and situation of Property, Plant and Equipment. The quantitative details shown for various
assets (ref. to Asset Number) in the Fixed Asset Register does not correspond to the physical
records of fixed assets maintained as provided by the Company.
(B) The Company does not have any intangible assets. Therefore, paragraph 3 (i)(a)(B) of the said
order is not applicable to the company.
(b) The Property, Plant and Equipment were physically verified during the year by the management
in accordance with a regular programme of verification which, in our opinion, provide for physical
verification of all the property, plant and equipment at reasonable intervals. According to the information
and explanations given to us, material discrepancies were noticed on such verification and dealt with
in the books of accounts.
(c) The Company does not own any immovable properties, therefore paragraph 3 (i) (c) of the said order
is not applicable to the company.
(d) The company has not revalued its’ Property, Plant and Equipment (including Right of Use assets)
or intangible assets or both during the year therefore paragraph 3 (i) (d) of the said order is not
applicable to the company.
(e) The company does not hold any benami property, further no proceedings have been initiated during
the year or are pending against the Company as at March 31, 2023 under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
ii. (a) As explained to us, inventory has been physically verified by management during the year, the
frequency of which in our opinion is reasonable. The Company is not maintaining proper records of
inventory. In our opinion, having regard to the size, nature and location of inventory, the coverage
and procedure of such verification by the management is appropriate. Discrepancies of 10% or
more in aggregate for each class of inventory were not noticed on such verification conducted by
the Company.
(b) The company has not been sanctioned working capital limit in excess of 5 Crores, in aggregate
from banks and financial institutions on the basis of security of current assets, therefore paragraph
3 (ii) (b) of the said order is not applicable to the company.
iii. With respect to investments made, provided any guarantee or security or granted any loans or advances
in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any
other parties:
(a) During the year the company has not provided any guarantee or security or granted any loans
or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability
67
Partnerships or any other parties and hence reporting under paragraph 3 (iii)(a) and (c) to (f) of the
Order is not applicable to that extent.
(b) In our opinion, the investments made during the year are, prima facie, not prejudicial to the Company’s
interest.
(c) During the year the company has not provided loans to any companies, Therefore, paragraph 3 (iii)(c)
of the said order is not applicable to the company.
(d) During the year the company has not provided loans to any companies, Therefore, paragraph 3 (iii)(d)
of the said order is not applicable to the company
(e) No loan granted by the Company which has fallen due during the year, has been renewed or extended
or fresh loans granted to settle the overdues of existing loans given to the same parties
(f) The Company has not granted any loans or advances in the nature of loans either repayable on
demand or without specifying any terms or period of repayment during the year. Hence, reporting
under clause 3(iii)(f) is not applicable
The Company has not provided any guarantee or security or granted any advances in the nature of
loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties
iv. According to the information and explanations given to us and on the basis of our examination of the
records, the Company has not given any loans, or provided any guarantee or security as specified
under Section 185 of the Companies Act, 2013 and the Company has not made any investments
or provided any guarantee or security as specified under Section 186 of the Companies Act, 2013.
Therefore, paragraph 3 (iv) of the said order is not applicable to the company.
v. The Company has not accepted any deposits from the public and hence the directives issued by the
Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the
Act and the Companies (Acceptance of Deposit) Rules, 2015 regarding the deposits accepted from the
public are not applicable.
vi. The maintenance of cost records has been specified by the Central Government under Section
148(1) of the Companies Act, 2013. We have broadly reviewed the books of account maintained by
the Company pursuant to the rules prescribed by the Central Government for maintenance of cost
records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. However, we have not made
a detailed examination of the cost records with a view to determine whether they are accurate or
complete.
vii. (a) According to information and explanations given to us and our examination of the books of
account, and records, the Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-Tax, Goods and Service Tax,
Duty of Customs, Cess and any other statutory dues applicable to it. According to the information
and explanations given to us, the undisputed amounts payable in respect of the above were in
arrears as at March 31, 2023 for a period of more than six months from the date on which they
become payable, are as follows:
68
Name of statute Nature of dues in Million Period to which Date of

amount relates payment
Provident Fund Act, 1952 PF 7.33 FY 2022-23 Not paid
Employee State Ins, 1948 ESIC 0.82 FY 2022-23 Not paid
Professional Tax PT 4.78 Earlier years and Not paid
FY 2022-23
(b) According to the records of the Company, there are no dues referred to in sub-clause (a) above
as at 31st March 2023, which have not been deposited with the appropriate authorities on
account of any dispute, except as mentioned below:
Name of the statute Nature of in Million Period to which Forum where
Dues the amount dispute is pending
relates
Income Tax Act, 1961 Income tax 19.18 AY 2013-14 CIT (Appeals)
and interest
Income Tax Act, 1961 Income tax 6.60 AY 2017-18 CIT (Appeals)
Income Tax Act, 1961 Income tax 5.40 AY 2017-18 NFAC
Income Tax Act, 1961 Income tax 80.76 AY 2018-19 NFAC
Income Tax Act, 1961 Income tax 200.25* AY 2020-21 NFAC
and Interest
Goods and Service Tax Act, Goods and 659.40 FY 2017-2020 Departmental
2017 Service Tax and Authorities
Interest
Goods and Service Tax Act, Goods and 78.17 FY 2017-2020 Departmental
2017 Service Tax and Authorities
Interest
Goods and Service Tax Act, Goods and 9.77 FY 2017-2018 Assistant Commissioner
2017 Service Tax and (Central GST)
Interest
Goods and Service Tax Act, Penalty 5.71 FY 2018-2019 Additional
2017 Commissioner (GST)
Provident Fund Act, 1952 Damages and 60.06 FY 2020-2022 Regional Provident
Interest Fund Commissioner
* ₹ 82.65 million amount has been deposited as self-assessment tax on October 16, 2021.
viii. There were no transactions relating to previously unrecorded income that were surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the
year.
ix. (a) The Company has not defaulted in the repayment of loans and borrowing to banks. The Company
has not taken any loan either from financial institutions or from the government and has not issued any
debentures.
(b) In our opinion and according to the information and explanations given to us, the Company has
not been declared willful defaulter by any bank or financial institution or other lender. Hence,
reporting under paragraph 3 (ix) (b) is not applicable.
(c) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, the company has not taken any term loans during the period, from
69
banks and financial institutions, therefore paragraph 3 (ix) (iii) of the said order is not applicable to
the company.
(d) According to the information and explanations given to us and on the basis of our examination
of the records of the Company, the company has not raised funds on short term basis during the
period, therefore paragraph 3 (ix) (iv) of the said order is not applicable to the company.
(e) In our opinion and according to the information and explanations given to us, the company has
not taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates, or joint ventures during the period.
(f) In our opinion and according to the information and explanations given to us, the company has not
raised any loans on the pledge of securities held in its subsidiaries, associates, or joint ventures
during the period.
x. (a) The Company has not issued any of its securities (including debt instruments) during the year and
hence reporting under clause (x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotment or private placement of
shares or convertible debentures (fully or partly or optionally) and hence reporting under clause
(x)(b) of the Order is not applicable to the Company.
xi. (a) According to the information and explanation given to us and based on our examination, we report
that no fraud by the Company or on the Company by its officers or employees has been noticed
or reported during the year.
(b) To the best of our knowledge and belief, no report under sub-section (12) of section 143 of the
Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of the
Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As represented to us by the management, there are no whistle-blower complaints received during
the year by the Company, therefore paragraph 3 (xi) (c) of the said order is not applicable to the
company and hence not commented upon.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not
applicable.
xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, where
applicable, for all transactions with the related parties and the details of related party transactions
have been disclosed in the financial statements etc. as required by the applicable accounting
standards.
xiv. a) In our opinion the Company has an adequate internal audit system commensurate with the size
and the nature of its business.
b) We have considered the internal audit reports for the year under audit, issued to the Company
till date for the period under audit, in determining the nature, timing and extent of our audit
procedures.
xv. In our opinion during the year the Company has not entered into any non-cash transactions with its
directors or persons connected with him and hence provisions of section 192 of the Companies Act,
2013 are not applicable to the company.
70
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934. Hence, reporting under clause 3 (xvi)(a), (b) and (c) of the Order is not applicable.
The Company is not a Core Investment Company (CIC) as defined in the regulations made by the
Reserve Bank of India. According to the information and explanations given to us, the Group has no
CIC as a part of the group.
xvii. According to the information and explanations given to us and based on our examination of the records
of the Company, the Company has not incurred any cash losses during the financial year covered by
our audit and in the previous financial year.
xviii. In our opinion and according to the information and explanations given to us, there has been no
resignation of the statutory auditors during the year.
xix. According to the information and explanations given to us and on the basis of the financial ratios,
ageing and expected dates of realization of financial assets and payment of financial liabilities, other
information accompanying the financial statements, our knowledge of the Board of Directors and
management plans and based on our examination of the evidence supporting the assumptions,
nothing has come to our attention, which causes us to believe that any material uncertainty exists as
on the date of the audit report that company is not capable of meeting its liabilities existing at the date
of balance sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the company. We further
state that our reporting is based on the facts up to the date of the audit report and we neither give any
guarantee nor any assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the company as and when they fall due.
xx. The provisions of Section 135 with respect to Corporate Social Responsibility (CSR) of the Companies
Act, 2013 are not applicable to the Company. Hence, reporting under clause 3(xx)(a) and (b) of the
Order is not applicable.
For S. Mann & Co

Sd/-
Partner
Membership No: 080500
Place: New Delhi

Date: 19.07.2023
71
ANNEXURE – ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN

DATE ON THE FINANCIAL STATEMENTS OF AI AIRPORT SERVICES LIMITED
Report on the Internal Financial Controls over financial reporting under Clause (i) of Sub- section 3
of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of AI AIRPORT SERVICES LIMITED
(“the Company”) as of March 31, 2023, in conjunction with our audit of the financial statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the guidance note on Audit of Internal financial control over
Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to
the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on audit of
Internal financial controls over financial reporting (the “Guidance Note”) and the standards on auditing as
specified under Section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of internal financial controls and, both issued by Institute of
Chartered Accountants of India. Those standards and the guidance note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
Internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial control system with reference to these financial statements and their operating effectiveness.
Our audit of internal financial controls with reference to these financial statements included obtaining an
understanding of internal financial controls with reference to these financial statements, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls with Reference to these Financial Statements
A company’s internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
72
external purposes in accordance with generally accepted accounting principles. A company’s internal
financial control over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with the generally
accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the Company; (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements,
including the possibility of collusion or improper management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the following material
weaknesses have been identified as at March 31, 2023:
(a) Deficiencies in the design of internal control over the preparation of the financial statements being
audited:
(i) Detailed documented Standard Operating Procedures as required by the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by ICAI for critical processes are not in
place.
(ii) Authorization controls such as maker/checker controls in accounting and billing software needs
further strengthening.
(iii) Optimum utilization of information technology (IT) general and application controls needs to be
strengthened to provide complete information consistent with financial reporting objectives and
current needs.
(iv) Payroll is a significant process considering the size of Company’s Operations. However, it has
been observed that various processes such as attendance, leave records, details of new joiners
and resigned employees, payment of statutory dues, etc. are not fully automated and maintained
manually.
(b) The controls for reconciliation of physical inventory and fixed assets with the books of account can be
further strengthened.
(c) Timely reconciliations of certain significant accounts such as accounts receivables, accounts payables,
statutory dues with returns and payroll balances are not done in an accurate manner.
(d) Galaxy software to account cargo handling and APEDA and SAP are not integrated.
(e) Due to bugs in MBS software, full billing is not captured in SAP. The Company does the reconciliation
manually to account the billing which was not interfaced in SAP from MBS software.
73
(f) While creating new customer ledger, KYC Documents shared with the department are incomplete.
(g) No scrap register is maintained w.r.t property, plant and equipment (Ramp Equipments & Others)
(h) Records of procurement of material by MMD are not fully automated and maintained manually.
(i) Records of Ramp Assistance Form (RA Forms) issued are not fully automated and maintained manually.
There are no records of the Ramp Assistance Form (RA Forms) for which invoices have not been
issued. Such controls should be further strengthened.
A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control over
financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s
annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, based on the effect of the material weaknesses described above on the achievement of the
objectives of the control criteria, the Company has not maintained adequate and effective internal financial
controls over financial reporting as of March 31, 2023, based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal control stated in the
Guidance Note.
For S. Mann & Co

Sd/-
Partner
Membership No.080500
Place: New Delhi

Date: 19.07.2023
74
ANNEXURE-C TO THE INDEPENDENT AUDITOR’S REPORT

We have examined the books of Accounts of AI AIRPORT SERVICES LIMITED, for the year ended 31st
March, 2023 and we are submitting our comments based on direction issued by Comptroller and Audit
General of India, according to best our information and explanation given to us by management and as
appears from the examination of books of accounts and records maintained, as under.
Directions indicating the areas to be examined by the Statutory Auditors during the course of
audit of annual accounts of AI AIRPORT SERVICES LIMITED for the year 2022-23 issued by the
Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013
S. No. Directions Auditor’s Remark
1. Whether the company has system in place to process The Company has system for accounting
all the accounting transactions through IT system? transactions through IT system. However, it
If yes, the implications of processing of accounting has been observed that adequacy of design of
transactions outside IT system on the Integrity of the information technology (IT) general and application
accounts along with the financial implications, if any, controls that prevent the information system from
may be stated. providing complete and accurate information
consistent with financial reporting objectives needs
to be strengthened. We refer our remarks given in
our separate Report in “Annexure B” - Report on
the internal financial controls with reference to the
aforesaid financial statements under Clause (i) of
sub-section (3) of Section 143 of the Act for further
details.
2. Whether there is any restructuring of an existing There is no restructuring of existing loan or cases of
loan or cases of waiver/write off of debts/loans/ waiver/ write off of debts/ loans/interest etc. made
interest etc. made by a lender to the company due by a lender to the company due to the company’s
to the company’s inability to repay the loan? If yes, inability to repay the loan.
the financial impact may be stated. Whether such
cases are properly accounted for? .(In case, lender
is a Government Company then this direction is also
applicable for statutory auditor of lender company)
3. Whether funds (grants/subsidy etc.) received/ The funds received/ receivable for specific schemes
receivable for specific schemes from Central/State from central/state agencies were properly accounted
Government or its agencies were properly accounted for/ utilized as per its term and conditions.
for/utilized as per its term and conditions? List the
cases of deviation.
For S. Mann & Co

Sd/-
Partner
Place: New Delhi Membership No. 080500
Date: 19.07.2023 UDIN : 23080500BGXRAU5748
75
MANAGEMENT REPLIES TO THE AUDITOR’S REPORT ON THE FINANCIAL

STATEMENT OF AI AIRPORT SERVICES LIMITED FOR THE FINANCIAL YEAR
2022-23
STATUTORY AUDITOR’S REPORT
Sr. Point of Qualification Management Reply
No.
Emphasis of Matter
1 We draw attention to Note 53 to the financial statements, As per MSA between Air India and AI
during the year 2022-23, Air India Limited and Alliance Airport Services Ltd. the service standard
Air Aviation Limited has raised an invoice for an amount and performance targets have been set
of Rs.121.41 million and Rs.1.61 million respectively and based on the performance. Non-
towards penalty. However, the same has not been adherence to service standards, Air India
provided in the books of accounts of the company. raises an ERF form. As per Clause 36.2
of MSA (Page No- 66) entered between
AI and AIASL wherein it is mentioned
that Air India to prepare and provide the
handling report for certification by the
authorized representative after each shift.
The Handling Exception Report Format
(ERF) shall be jointly signed by AI and
AIASL. Further as per clause 2.7, the
delays will be jointly reviewed and only
be attributable if they are within the AIASL
responsibility and control.
During the year 2022-23, Air India
has raised an invoice for an amount
of Rs.121.41 million towards penalty.
However, AIASL has been contesting
the penalties raised as there is no ERF
forms provided along with the Invoice. In
such cases as per escalation matrix, Air
India should escalate the matter to Hub
Control Centre/Airport Manager then to
Regional General Manager and then to
Regional Director. It is observed that
inspite of AIASL protesting the levy of
penalty, Air India has not escalated the
matter and neither has responded to our
correspondence.
AIASL is of the strong opinion that
the penalties imposed by Air India are
unilateral and without the consent of
AIASL.
76

No.
Inspite of AIASL contesting it, Air India has
neither reverted nor escalated the matter
which has made our assumption stronger
that the penalties levied are not in norms
with the Service Level Agreement.
The above reasoning holds good even for
penalties imposed by Alliance Air.
2 We draw attention to Note 37 to the financial The interest recoverable from Air India, Air
statements, the Company is charging interest at the India Express, AI Engineering Services
rate of 9% p.a. on overdue balances of receivables in Limited and alliance Airlines Pvt. Ltd. on
respect of group companies, namely, Air India Limited overdue balance is in terms of the MSA
(considered related party till January 13, 2022), Air and has already been recovered from
India Express, Air India Engineering Services Limited said Companies for past years and is fully
and Alliance Airlines Private Limited. During the audit recoverable for the year under audit as
period, interest on overdue payments amounting to ₹ well.
116.67 million has been booked as other income. We
have relied on the management contention that such
amount will be fully recovered and hence, no further
adjustments are required for the current audit period.
3 We draw attention to Note 7 to the financial statements, Our Technical team has confirmed that
the Company has inventories consisting of stores there is no diminishing in the value of
and spares amounting to ₹ 56.11 million(Provision of stores and spares inventory which has
Rs.33.14 million has been made for obsolescence of been lying with us for over 3 years and
such inventories). These inventories are transferred hence inventory is being carried in the
from Air India Limited and Air India Engineering books at which it was transferred to us
Limited, which are not used for more than three years. from AI. Further we have made a provision
We have relied on the management contention that for the obsolescence of such inventories.
such inventories have value in use and is at-least
equal to the carrying value in the books based on
the confirmation received from the user (technical)
department of the Company and hence, no further
adjustments are required for the audit period.
4 We draw attention to Note 54 to the financial The Company has provided the necessary
statements, the Company has entered into leases information as per Ind AS 116 in respect of
for various commercial premises (with option to the vehicles taken on Lease and accounted
purchase/renew but title of the same may or may for the same. The Company has made
not eventually be transferred) which are scattered the necessary compliance under Ind AS
at various locations/stations/regions. Based on 116 for vehicles, by capitalizing the lease
evaluation of the lease agreement by the Company, rentals as Right of use Assets.
the agreement shall be foreclosed in the event of
disinvestment of Air India and its subsidiaries.
77

No.
In view of the management, considering it as cancellable As regards the premises we have
lease, the same does not qualify for recognition under considered these as short term lease
Ind AS 116 Lease Accounting. since the agreement have an option
to terminate the same at short notice
Pending evaluation, these leases have not been
of 90 days by either parties. So, it was
considered as right-of-use asset under Ind AS 116 and
interpreted that in respect of cancellable
rent of the same has been charged systematically to
leases applicability of Ind AS 116 was not
the statement of profit & loss for the current year. We
considered. However, the expense on
have relied on the management contention that the
account of rental had been charged to the
impact of the same will not be material.
P/L and suitable disclosure to this effect
has been made in Notes to Accounts.
5 We draw attention to Note 47 to the financial statement’s, The interest has been provided in line
the Company has provided interest amounting to with the MSA we have with other Group
Rs.35.69 million at the rate of 9% p.a. to AIAHL on Companies.
average of outstanding balance payable.
6 We draw attention to Note 33 to the financial statements, We did sent to all the Third Party Airlines
amounts receivables and payables to the various for Balance Confirmation to as on
parties are subject to confirmation and reconciliation. 31.03.2023, however, except for few, none
of the Airlines confirmed the balances.
We have obtained balance confirmation
from AI Express, AI Engineering Services,
Alliance Air and AI AHL.
7 We draw attention to Note 43 to the financial statements. This is a statement of fact.
Go Airlines India Limited has submitted their application
to NCLT for insolvency resolution process and
accordingly NCLT has accepted the application and
initiated the insolvency process vide order dated May
10th, 2023 (including interest amounting to Rs.11.27
million and accordingly company has made the 100%
provision of the receivables excluding interest in
ECL).
Annexure A- CARO
(i) The Company has not maintained proper records During the year all Stations were
(a) showing full particulars, including quantitative details instructed for maintaining a Fixed Assets
(A) and situation of Property, Plant and Equipment. The Register. The reconciliation of Fixed
quantitative details shown for various assets (refer Assets maintained at Station and that with
to Asset Number) in the Fixed Asset Register does the books is under reconciliation and the
not correspond to the physical records of fixed assets impact if any, will be analysed and impact
maintained as provided by the company. of the same shall be taken after obtaining
approval from the BoD.
78

No.
Annexure B - IFC
(a) Deficiencies in the design of internal control over the
preparation of the financial statements being audited:
(i) Detailed documented Standard Operating Procedures The company is in process of development
as required by the guidance note on Internal Financial of new SOPs along with implementation
Controls over Financial Reporting for critical processes of new accounting software/ERP.
are not in place.
(ii) Authorisation controls such as maker/checker controls The Company is dependent on AI and
in accounting software needs further strengthening. IBM for any implementation of controls
in the existing ERP. A new software
named Oddo has been implemented
effective 1st April 2023 in which adequate
measures of maker/checker control is
implemented.
(iii) Optimum utilization of information technology (IT) The Company was dependent on AI and
general and application controls should be ensured, to IBM for any implementation of controls
provide complete information consistent with financial in the existing ERP. In the new ERP
reporting objectives and current needs. implemented effective 1.4.2023, the
control measures has been taken care.
(iv) Payroll is a significant process considering the size The Company has already implemented
of Company’s Operations. However, it has been the new ERP named Zeta HRMS and
observed that various processes such as attendance, we are in the process of automation of
leave records, details of new joinees and resigned all HR and payroll related matter.
employees, payment of statutory dues, etc. are not
fully automated and maintained manually.
(b) The controls for reconciliation of physical inventory This is noted for compliance
and fixed assets with the books of account can be
further strengthened.
(c) Timely reconciliations of certain significant accounts The reconciliation of all ledgers has
such as accounts receivables, accounts payables, been done and shared to the auditor as
statutory dues with returns and payroll balances are on the Balance Sheet date.
not reconciled in an accurate manner.
(d) Galaxy software to account cargo handling and APEDA The cargo invoices are recorded in SAP
and SAP are not integrated. at the end of the month from the data
extracted from the Galaxy software.
However, effective measures are taken
care every month to ensure accuracy.
Integration of both the software shall be
done in the new ERP.
79

No.
(e) Due to bugs in MBS software, full billing is not captured Due to some error in customer coding
in SAP. The Company does the reconciliation manually and GL coding, the invoices are stuck
to account the billing which were not interfaced in SAP for being recorded in SAP. The invoices
from MBS software. which are not flown in SAP from MBS are
reconciled and flown at regular intervals,
and accuracy is maintained.
(f) While creating new customer ledger KYC not called/ The customer code is created by accounts
shared with the department. department wherein the customer is asked
to fill up all the details in a format provided.
KYC details such as GST certificate, etc.
are called for to ensure correctness of
details filled by the customer.
(g) No scrap register is maintained w.r.t property, plant Scrap Register is maintained, however,
and equipment (Ramp Equipment & Others) will need an upgradation.
(h) Records of procurement of material by MMD are not It is a fact that procurement of material
fully automated and maintained manually. by MMD are done manually, however, the
process of automation is on and will be
implemented shortly.
(i) Record of Ramp Assistant Form(RA Forms) issued are In the new ERP, there is a provision for
not fully automated and maintained manually. There digitalization of RA Forms wherein all the
are no records of the Ramp Assistance Form (RA RA forms data will captured digitally and
Forms) for which invoices have not been issued. Such will be flown in to ERP automatically to
controls should be further strengthened. generate invoice. This is being done in
the second phase of implementation of
ERP.
80
Balance Sheet as at March 31, 2023

(₹ in Millions)
Particulars Note As at As at As at
No. March 31, 2023 March 31, 2022# April 01, 2021#
Restated Restated
Assets
1. Non-current assets
(a) Property, plant and equipment 2 (a) 2,934.47 3,168.65 3,369.42
(b) Intangible assets under development 2 (b) 2.15 - -
(c) Right of use assets 2 (c) - - 31.76
(d) Financial assets
(i) Other financial assets 3 1,299.16 9.17 12.71
(e) Income tax assets (net) 4 487.68 450.12 49.89
(f) Deferred tax assets (net) 5 1,130.35 1,084.41 964.11
(g) Other non-current assets 6 23.74 19.77 29.85
Total non-current assets 5,877.56 4,732.12 4,457.74
2. Current Assets
(a) Inventories 7 22.97 59.14 62.27
(b) Financial assets
(i) Trade receivables 8 4,071.44 3,499.33 3,730.34
(ii) Cash and cash equivalents 9 520.43 776.18 43.46
(iii) Bank balances other than cash and cash equivalents (ii) above 10 1.73 61.66 1.59
(iv) Other financial assets 11 100.96 1.13 95.74
(c) Other current assets 12 144.75 38.57 35.76
Total current assets 4,862.28 4,436.01 3,969.16
Total assets 10,739.84 9,168.13 8,426.90
Equity and liabilities
1. Equity
(a) Equity share capital 13 1,384.24 1,384.24 1,384.24
(b) Other equity 14 2,846.46 2,067.16 1,778.29
Total equity 4,230.70 3,451.40 3,162.53
Liabilities
2. Non-current liabilities
(a) Financial liabilities
(i) Lease liabilities 15 - - -
(ii) Other financial liabilities 16 72.48 64.51 52.17
(b) Provisions 17 2,413.54 2,429.09 2,625.43
Total non-current liabilities 2,486.02 2,493.60 2,677.60
3. Current liabilities
(a) Financial liabilities
(i) Lease liabilities 15 - - 35.19
(ii) Trade payables
Total outstanding dues of micro enterprises and small enterprises 21 2.30 0.14 4.51
Total outstanding dues of creditors other than micro enterprises 21 1,619.33 1,458.10 978.97
and small enterprises
(iii) Other financial liabilities 18 1,185.56 990.53 897.70
(b) Provisions 19 859.04 478.54 312.29
(c) Other current liabilities 20 356.89 295.82 358.11
Total current liabilities 4,023.12 3,223.13 2,586.77
Total liabilities 6,509.15 5,716.73 5,264.37
Total equity and liabilities 10,739.84 9,168.13 8,426.90
Significant accounting policies, key accounting estimates and judgements 1
See accompanying notes to the financials statements
# Refer note 31 for details regarding the restatement as a result of error or omission
As per our report of even date attached
For S. Mann & Co For and on behalf of the Board of Directors

Firm Registration No: 000075N
Sd/- Sd/- Sd/-

Subhash Chander Mann Satyendra Kumar Mishra Padam Lal Negi
Partner Chairman Director
Membership No: 080500 DIN: 07728790 DIN: 10041387
UDIN: 23080500BGXRAU5748
Sd/- Sd/- Sd/-
Sandeep Malhotra Rambabu Ch. Smt. Shashi Bhadoola
Chief Financial Officer Chief Executive Officer Company Secretary
Place: New Delhi
Date : July 19, 2023
81
Statement of Profit and Loss for the year ended March 31, 2023
( ₹ in Millions, except EPS )
Particulars Note Year Ended Year Ended
No. March 31, 2023 March 31, 2022#
Restated
1 Income
Revenue from operations 22 8,944.73 6,988.51
Other income 23 378.25 232.05
Total income 9,322.98 7,220.56
2 Expenses
Employee benefits expense 24 5,161.82 4,821.47
Finance costs 25 149.21 373.53
Depreciation and amortization expenses 26 283.79 407.86
Other expenses 27 2,755.19 1,730.43
Total expenses 8,350.01 7,333.29
3 Profit/ (Loss) before tax (1-2) 972.97 (112.73)
4 Tax expenses 44
(i) Current tax 235.77 -
(ii) Short provision for tax relating to previous years - 24.62
(iii) Deferred tax (45.94) (197.30)
Total tax expenses 189.83 (172.68)
5 Profit/(loss) after tax for the year (3-4) 783.14 59.96
6 Other comprehensive income
Items that will not be reclassified to profit or loss (net of
tax)
- Remeasurement of employee benefits obligations (3.92) 228.92
Total other comprehensive income (3.92) 228.92
7 Total comprehensive income/(loss) for the year (5+6) 779.22 288.88
8 Earnings/(loss) per equity share (of ₹ 10/- each)

(i) Basic 28 5.66 0.43
(ii) Diluted 28 5.66 0.43
Significant accounting policies, key accounting estimates and
1
judgements
# Refer note 31 for details regarding the restatement as a result of error or omission

Sd/- Sd/- Sd/-

Sd/- Sd/- Sd/-
Place: New Delhi
82
Statement of Changes in Equity For the Year ended March 31, 2023
( ₹ in Millions )
A Equity share capital
Balance as at Changes in equity Restated balance as at Changes in equity Balance as at
April 1, 2022 share capital due to April 1, 2022 share capital during March 31, 2023
prior period errors the period
1,384.24 - 1,384.24 - 1,384.24

prior period errors the year
1,384.24 - 1,384.24 - 1,384.24

prior period errors the year
1,384.24 1,384.24 - 1,384.24
B Other equity
( ₹ in Millions )
Particulars Reserves & surplus Other comprehensive Total
Retained earnings income
Balance as at April 1, 2020 3,752.31 (6.44) 3,745.87
Loss for the year (1,885.33) - (1,885.33)
Correction of error/omission (86.78) - (86.78)
Remeasurement of employee benefits obligations - 4.53 4.53
Balance as at March 31, 2021 1,780.20 (1.91) 1,778.29
Loss for the year 59.96 - 59.96
Balance as at March 31, 2022 1,840.16 227.01 2,067.16
Balance as at April 1, 2022 1,840.16 227.01 2,067.16
Profit/ (Loss) for the period 783.14 - 783.14
Rounding off difference 0.07 - 0.07
Remeasurement of employee benefits obligations - (3.92) (3.92)

Sd/- Sd/- Sd/-

Sd/- Sd/- Sd/-
Place: New Delhi
83
Statement of Cash Flows for the year ended March 31, 2023
( ₹ in Millions )
Particulars Year ended Year ended
March 31, 2023 March 31, 2022
A. Cash flow from operating activities :
Profit before tax 972.97 (112.73)
Adjustments for
Depreciation and amortisation expenses 283.79 407.86
Interest income on fixed deposits (47.48) (1.44)
Interest income on income tax refund - -
Finance costs 149.21 373.53
Bad debts written off - 110.00
Rounding off difference 0.07 -
Sundry balances written off - 106.31
Provision for expected credit loss 750.06 231.72
Loss on sale of duty credit entitlement under SEIS - 4.30
Assets Written off 14.46 -
Provision for duty credit entitlement under SEIS - 66.79
Provision for doubtful advances 5.54 9.74
Remeasurement of employee benefits obligations (3.92) 228.92
Net unrealised exchange loss (25.16) 449.61
Operating profit/(loss) before working capital changes 2,099.54 1,874.61
Adjustments for
(Increase) / decrease in inventory 36.17 3.13
(Increase) / decrease in trade receivables (1,297.00) (328.60)
(Increase) / decrease in other current financial assets (68.20) (313.40)
(Increase) / decrease in other non-current financial assets - 3.54
(Increase) / decrease in other current assets (111.72) (12.67)
(Increase) / decrease in other non-current assets (3.97) 10.08
Increase / (decrease) in short term provision 380.50 (87.98)
Increase / (decrease) in long term provision (15.55) (196.34)
Increase / (decrease) in trade payables 163.40 450.14
Increase / (decrease) in financial liabilities 203.00 105.16
Increase / (decrease) in other liabilities 61.07 (62.29)
Cash generated from operations 1,447.24 1,445.39
Income taxes (paid)/refunded (273.34) (323.23)
Net cash generated from operating activities (A) 1,173.90 1,122.16
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March 31, 2023 March 31, 2022
B. Cash flow from investing activities :
Purchase of property, plant & equipment (66.22) (175.33)
Interest income on fixed deposits 15.85 0.33
Investments in bank deposits (1,230.07) (60.07)
Net cash used in investing activities (B) (1,280.44) (235.07)
C. Cash flow from financing activities :
Repayment of lease liabilities - (35.19)
Finance costs (149.21) (119.30)
Net cash used in financing activities (C) (149.21) (154.49)
Net increase / (decrease) in cash and cash equivalents (A+B+C) (255.75) 732.60
Cash and cash equivalents at the beginning of year 776.18 43.58
Cash and cash equivalents at the end of year (refer note 9) 520.43 776.18
Significant accounting policies, key accounting estimates and 1

judgements
Notes to Cash Flow Statement:

1. The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Ind AS 7
"Statement of Cash Flows".
2. Previous years figures have been regrouped wherever necessary.

Sd/- Sd/- Sd/-
Sd/- Sd/- Sd/-
Place: New Delhi
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Notes forming part of the audited financial statements

1. SIGNIFICANT ACCOUNTING POLICIES
A. Corporate Information
AI Airport Services Limited (a wholly owned subsidiary of AI Asset Holding Limited a Government
of India Company) is a public limited company incorporated in India under the provisions of the
Companies Act applicable in India with a CIN: U63090DL2003PLC120790. The company has
changed its name from Air India Transport Services Limited to AI Airport Services Limited. The
company mainly provides services of Ground Handling at Indian Airports to Airlines Operators.
The registered office of the company is situated at: 2nd Floor, GSD Building, Air India Complex,
Terminal-2, IGI Airport, New Delhi - 110037.
B Significant Accounting Policies
The company has prepared these Financial Statements which comprise the Balance Sheet as at
March 31, 2023, Statement of Profit and Loss and the Statement of Changes in Equity for the year
ended as on that date, and accounting policies and other explanatory information (together hereinafter
referred to as “Financial Statements”).
i) Basis of Preparation & Presentation
The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind
AS), under the historical cost convention except for certain financial instruments measured at fair
values at the end of each reporting period, as explained in the accounting policies below.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price
is directly observable or estimated using another valuation technique. In estimating the fair value of
an asset or a liability, the Company takes in to account the characteristics of the asset or liability if
market participants would take those characteristics into account when pricing the asset or liability at
the measurement date.
Fair value for measurement and/or disclosure purposes in these Financial Statements within the
scope of Ind AS 116, Financial Statements is determined on such a basis, except for leasing
transactions that are within the scope of Ind AS 1116, and measurements that have some similarities
to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind
AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,2,
or 3 based on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurements in its entirety, which are described as
follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for
the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
For assets and liabilities that are recognized in the Balance Sheet on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.
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For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair
value hierarchy as explained above.
ii) Functional Currency
Currency of the primary economic environment in which the Company operates (“the Functional
Currency”) is Indian Rupee (₹) in which the Company primarily generates and expends cash.
Accordingly, the Management has assessed its functional currency to be Indian Rupee (₹) The
Financial Statements are presented in Indian Rupee (₹) which is Company’s Presentation and
Functional currency and all amounts disclosed in the Financial Statements and Notes have been
rounded off to the nearest Million (up to one decimal), unless otherwise stated.
iii) Current and Non-Current Classification
The Company presents assets and liabilities in the Balance Sheet based on current / non-current
classification.
An asset is classified as current when it satisfies any of the following criteria:
• it is expected to be realized in the Company’s normal operating cycle. it is held primarily for the
purpose of providing services;
• it is expected to be realized within 12 months after the reporting date; or
• it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
• it is expected to be settled in the Company’s normal operating cycle;
• it is held primarily for the purpose of providing services;
• it is due to be settled within 12 months after the reporting date; or the Company does not have
an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current only.
The Company being in service sector, there is no specific operating cycle; however, 12 months
period has been adopted as “The Operating Cycle” in-terms of the provisions of Schedule III to the
Companies Act 2013. Accordingly, current liabilities and current assets include the current portion of
non-current financial liabilities and assets.
C. Recent Pronouncements
Ministry of Corporate Affairs (MCA) notified Companies (Indian Accounting Standards) Amendment
Rules, 2022 vide Notification dated 23 March 2022. Following amendments and annual improvements
to Ind AS are applicable from 1 April 2022.
Ind AS - 103 Business Combination
The amendment specifies that for identified assets and liabilities to qualify for recognition as part
of applying the acquisition method, the identifiable assets acquired, and liabilities assumed must
meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting
under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered
Accountants of India at the acquisition date.
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Ind AS - 16 Property Plant and Equipment

The amendment clarifies that sale proceeds of items produced in the process of making PPE available
for its intended use cannot be deducted from the cost of PPE. Instead, such proceeds shall be
recognized in the statement of profit or loss.
Ind AS - 37 Provisions
The amendment clarifies that that the ‘costs to fulfil’ a contract include both incremental costs (direct
labour and material) and an allocation of other direct costs (e.g: depreciation charge for an item of
PPE used in fulfilling the contract).
Annual improvements to Ind AS 109 - Financial instruments
The amendment clarifies while performing the ’10 percent test’ for derecognition of financial liabilities,
borrower includes only fees paid or received between borrower and lender directly or on behalf of the
other’s behalf. The Company does not expect the above amendments / improvements to have any
significant impact on its standalone financial statements.
D. Use of Estimates & Judgements
Inherent in the application of many of the accounting policies used in preparing the IND AS Financial
Statements is the need for Management to make judgments, estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and
the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates
and assumptions used.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and future periods are affected.
Key source of judgments, assumptions and estimation uncertainty in the preparation of the
Financial Statements which may cause a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are mainly in respect useful lives of property, plant
and equipment, depreciation/amortization, impairments, employee benefit obligations, provisions,
provision for income tax, measurement of deferred tax assets, contingent assets and contingent
liabilities etc.
E Property, Plant & Equipments (PPE):
a) The cost of property, plant and equipment comprises its purchase price net of any trade discounts
and rebates, any import duties and other taxes (other than those subsequently recoverable from the
tax authorities), any directly attributable expenditure on making the asset ready for its intended use,
including relevant borrowing costs for qualifying assets and any expected costs of decommissioning.
Expenditure incurred after the property, plant and equipment have been put into operation, such as
repairs and maintenance, are charged to the Statement of Profit and loss in the year in which the
costs are incurred.
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognized in Statement of
Profit and loss.
Property, plant and equipment except freehold land held for use in the providing services, supply or
administrative purposes, are stated in the Balance Sheet at cost less accumulated depreciation and
accumulated impairment losses, if any.
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The Company had elected to continue with the carrying value for all of its property, plant and equipment
as recognised in the Financial Statements on transition to Ind AS, measured as per the previous
GAAP and use that as its deemed cost as at the date of transition.
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation is recognized so as to write off the cost of assets less their
residual values over their useful lives, using straight-line method as per the useful life prescribed in
Schedule II to the Companies Act, 2013. PPE of small value not exceeding INR 10,000, in each case,
are fully provided for in the year of Purchase. The company has changed its capitalisation policy for
PPE which is an accounting estimate of small value not exceeding INR 10,000 from current financial
year, which has NIL financial impact in current financial year.
(in years)
Asset Useful life as per Companies Act, 2013
Office equipment 5
Ramp equipments 15
Furniture & fixtures 10
Electrical fittings 10
Computers 3
Workshop equipments & instruments 10
Plant & machinery 15
Vehicles 8
b) Physical Verification of PPE is done on a rotational basis so that every asset is verified in every two
years and the discrepancies observed in the course of the verification are adjusted in the year in
which report is submitted.
c) Impairment of Property, plant and equipment
At the end of each reporting year, the Company reviews the carrying amounts of its tangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of
an individual asset, the Company estimates the recoverable amount of the cash-generating unit to
which the asset belongs. Where a reasonable and consistent basis of allocation can be identified,
corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated
to the smallest group of cash- generating units for which a reasonable and consistent allocation basis
can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised immediately in the Statement of Profit and Loss.
F. Inventories
Inventories consist of various stores and spares which are valued at lower of cost and Net Realizable
Value (‘NRV’). Costs of inventories are determined on weighted average cost basis. Net realisable
value represents the estimated selling price for inventories less all estimated costs of completion and
costs necessary to make the sale.
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G. Revenue Recognition
Ind AS 115 addresses the recognition of revenue from customer contracts and impacts on the
amounts and timing of the recognition of such revenue. The standard introduced a five-step approach
to revenue recognition:
- Identifying the contract;
- identifying the performance obligations in the contract;
- determining the transaction price;
- allocating that transaction price to the performance obligations; and
- Finally recognizing the revenue as those performance obligations are satisfied.
On transition to Ind AS 115 the company has adopted the modified retrospective approach, and
therefore has not restated the prior year comparative within this year’s Financial Statements. On
transition to Ind AS 115 an impact assessment was performed.
Rendering of Services
The Company recognizes revenue when control over the promised services is rendered to the
customer at an amount that reflects the consideration to which the Company expects to be entitled
in exchange for those services.
The Company recognises revenue generally at the point in time when the services are rendered to
customer
a) Ground handling services are recognized when the services are provided. Un-billed services at
the end of each financial year, based on available data, are estimated and are recognized as
revenue.
b) Income from interest is recognized on a time proportion basis.
c) Other operating revenue is recognized when services rendered during the period.
In revenue arrangements with multiple performance obligations, the Company accounts for individual
services separately if they are distinct – i.e. if a service is separately identifiable from other items
in the arrangement and if a customer can benefit from it. The consideration is allocated between
separate services in the arrangement based on their standalone selling prices.
Contract balances
i) Contract assets
A contract asset is the right to consideration in exchange for services rendered to the customer. If the
company performs by rendering of services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognized for the earned consideration including Trade
receivables.
ii) Contract liabilities
A contract liability is the obligation to render services to a customer for which the company has
received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company render services to the customer, a contract liability is recognized
when the payment is made or the payment is due (whichever is earlier). Contract liabilities are
recognized as revenue when the company performs under the contract including advance received
from customer.
iii) Refund liabilities
A refund liability is the obligation to refund some or all of the consideration received (or receivable)
from the customer and is measured at the amount the Company ultimately expects it will have to
return to the customer. The Company updates its estimates of refund liabilities at the end of each
reporting period.
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H. Foreign Currency Transactions

The functional currency of the company is determined on the basis of the primary economic
environment in which it operates. The functional currency of the Company is Indian National Rupee
(INR).
The transactions in currencies other than the entity’s functional currency (foreign currencies) are
recognized at the following rates
a) Interline settlement on account of IATA Clearing House (ICH) bills settlement is carried out at the
exchange rate published by International Air Transport Association (IATA) for respective month.
b) At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at exchange rate circulated by Foreign Exchange Dealers Association of India (FEDAI)
and the gains / losses arising out of fluctuations in exchange rates are recognized in the Statement
of Profit and Loss.
c) Non-monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
I. Leases
The Company has adopted Ind AS 116 Leases from 1st April, 2019. Ind AS 116 “Leases” introduced
a single, Balance Sheet accounting model for lessees. As a result, the company, as a lessee, has
recognised right-to-use assets representing its rights to use the underlying assets and lease liabilities
representing its obligation to make lease payments.
The Lease working has been done till 30th June’ 2021 as on that date, there is a expiration of contract
and, after that contract extends for short term period only and Ind AS 116 not applicable on short term
leases.
The following is the summary of practical expedients elected on initial application:
a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic
environment with a similar end date
b) Apply the exemption not to recognize right-to-use assets and liabilities for leases with less than
12 month of lease term, low value asset and the lease contracts in which the lessee and the
lessor each have the right to terminate the lease without permission from the other party with no
more than an insignificant penalty as on the date of initial recognition.
c) Applied the practical expedient to grandfather the assessment of which transactions are leases.
Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases
under Ind AS 17.
The Company as a Lessee:
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration and the company applied practical expedient to “grandfather approach” for the
assessment of transactions as leases. Accordingly, Ind AS 116 is applied only to contracts that were
previously identified as leases under Ind AS 17. Leases as Lessee (Assets taken on lease) the
Company applies a single recognition and measurement approach for all leases, except for short-
term leases, leases of low-value assets and the lease contracts in which the lessee and the lessor
each have the right to terminate the lease without permission from the other party with no more
than an insignificant penalty. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether:
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(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the
period of the lease and
(iii) the Company has the right to direct the use of the asset.
For the short-term, low-value leases and the lease contracts in which the lessee and the lessor each
have the right to terminate the lease without permission from the other party with no more than an
insignificant penalty, the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease. Certain lease arrangements includes the options to
extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities
includes these options when it is reasonably certain that they will be exercised.
The Company determines the lease term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The
Company has several lease contracts that include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option
to renew or terminate the lease. That is, it considers all relevant factors that create an economic
incentive for it to exercise either the renewal or termination. After the commencement date, the
Company reassesses the lease term if there is a significant event or change in circumstances that
is within its control and affects its ability to exercise or not to exercise the option to renew or to
terminate.
The ROU assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease
plus any initial direct costs less any lease incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date on a straight-line basis over the shorter
of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability
whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the
fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the
asset does not generate cash flows that are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset
belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the
Company changes its assessment of whether it will exercise an extension or a termination option.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.
J. Government Grant
Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attached to them and that the grants will be received.
Government grants are recognised in the Statement of Profit and Loss on a systematic basis over
the period in which the Company recognises as expenses the related costs for which the grants are
intended to compensate or when performance obligations are met.
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Government Grants related to assets are presented in the Balance Sheet as deferred income and are
recognized in profit or loss on a systematic basis over the expected useful life of the related assets.
K. Employee Benefits
Retirement benefit costs and termination benefits
Payments to defined contribution retirement benefit plans are recognized as an expense when
employees have rendered service entitling them to the contributions. The retirement benefits to the
employees comprise of defined contribution plans and defined benefit plans.
a) Defined contribution plans
Defined contribution plan consists of contribution to Employees Provident Fund. The Company has
Employees Provident Fund Trusts under the Provident Fund Act, 1925 for Permanent employees till
1st December’ 2021. After that, trust has been dissolved and amount had been transferred to EPFO
under Employees’ Provident Fund Scheme, 1952. As regards Fixed Term Contract (FTC) employees,
Provident Fund (PF) dues are deposited with the office of Employees’ Provident Fund Organization
(EPFO) by the Company. There had been a Supreme Court (SC) judgement dated February 28,
2019, relating to components of salary structure that need to be taken into account while computing
the contribution to provident fund under the EPF Act. There are interpretative aspects related to the
Judgement including the effective date of application. In the view of the management, the contribution
for PF is to be calculated as per Employee’s Provident Funds and Miscellaneous Provisions Act,
1952. Employees’ State Insurance Corporation (ESIC) dues are regularly deposited with government
authorities. The company’s payment to defined contribution plans are recognized as an expense
during the period in which the employees perform the services that the payment covers.
b) Defined benefit plans
The Company’s defined benefit plans, which are not funded, consist of Gratuity, Post-Retirement
Medical Benefits and other benefits. For defined retirement benefit plans, the cost of providing
benefits is determined using the projected unit credit method, with actuarial valuations being carried
out at the end of each annual reporting year.
The obligation is measured at the present value of estimated future cash flows. The discount rates
used for determining the present value of obligation under defined benefit plans, is based on the
market yields on Government securities as at the Balance Sheet date, having maturity periods
approximating to the terms of related obligations. Re-measurements gains and losses arising from
experience adjustments and changes in actuarial assumptions are recognized in the period in which
they occur, directly in Other Comprehensive Income. They are included in “Other Equity” in the
Statement of Changes in Equity and in the Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from settlement or curtailments
are recognized immediately in Statement of Profit and Loss as past service cost.
Other Long-Term Employee Benefits
In the form of Leave Encashment are accounted as other long-term employee benefits. The Company’s
net obligation in respect of Leave Encashment is the amount of benefits to be settled in future, that
employees have earned in return for their service in the current and previous years. The benefit is
discounted to determine its present value. The obligation is measured on the basis of an actuarial
valuation using the Projected Unit Credit Method. Re-measurements are recognized in Statement of
Profit and Loss in the period in which they arise.
Short Term Benefits
Short Term Employee Benefits are accounted for in the period during which the services have been
rendered.
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Short-term and other long-term employee benefit

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the year the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the Company in respect of
services provided by employees up to the reporting date.
L. Taxes on Income
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current Tax
Current tax is the amount of expected tax payable based on the taxable profit for the period as
determined in accordance with the applicable tax rates and the provisions of the Income Tax Act,
1961
Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred
tax assets are recognized for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilized.
Such deferred tax assets and liabilities are not recognized if the temporary difference arises from
the initial recognition (other than in a business combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are
not recognized if the temporary difference arises from the initial recognition of goodwill. The carrying
amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic
benefits in the form of adjustment to future income tax liability, is considered as a deferred tax asset
if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probable that future economic benefit
associated with it will flow to the Company.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting year.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
The Deferred tax assets are recognized and carried forward to the extent that there is a virtual
certainty based on operational and financial restructuring, revenue generation and cost reduction
program of the company that the assets will be realized in the future.
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Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they are relating to items that
are recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Where current tax or deferred tax arises from the initial accounting for a business combination, the
tax effect is included in the accounting for the business combination.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net
basis.
M. Provisions, Contingent Liabilities / Capital Commitments & Contingent Assets
a) Provisions involving a substantial degree of estimation in measurement are recognized when
there is a present obligation (legal or constructive) as a result of past events and it is probable that
there will be an outflow of resources. 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. These estimates are reviewed at each reporting date and adjusted to reflect the
current best estimates. The expense relating to a provision is presented in the Statement of Profit
and Loss
b) The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the Balance Sheet date, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to
settle the present obligation, it carrying amount is the present value of those cash flows (when
the effect of the time value of money is material).
c) When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
d) Contingent liabilities are disclosed by way of a note in respect of possible obligations that may
arise from past events but their existence is confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the Company.
e) Contingent assets are possible assets that arises from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company. A contingent asset is disclosed, when an inflow of
economic benefits is probable.
f) Onerous Contracts
An onerous contract is considered to exist where the Company has a contract under which the
unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received from the contract. Present obligations arising under onerous contracts are
recognized and measured as provisions.
N. Cash and Cash Equivalents
Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to insignificant risk of
changes in value.
For the purpose of the Statement of Cash Flows, cash and cash equivalent consists of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an
integral part of the Company’s cash management.
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O. Earning Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average
number of equity shares outstanding during the period. The weighted average number of equity
shares outstanding during the period is adjusted for treasury shares, bonus issue, bonus element in
a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).
Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares including the treasury shares held by
the Company to satisfy the exercise of the share options by the employees.
P. 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. Financial assets and financial liabilities are recognized
when an entity becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) are
added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and loss are recognized immediately in Statement of
Profit and Loss.
i) Financial Assets
a) Classification of Financial Assets
On initial recognition, a financial asset is measured at amortized cost, fair value through other
comprehensive income (FVTOCI) or FVTPL on the basis of the objective of its business model,
applied for managing the financial assets and characteristics of the contractual cash flows.
b) Recognition and initial measurement
A financial asset is initially recognized at fair value and, for an item not at FVTPL, transaction costs
that are directly attributable to its acquisition or issue. Purchases and sales of financial assets are
recognized on the trade date, which is the date on which the Company becomes a party to the
contractual provisions of the instrument. In case financial assets are not recorded at fair value
through Statement of Profit and Loss, transaction costs are attributed to the acquisition of the financial
asset.
In addition, on initial recognition, the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if
doing so eliminates or significantly reduces and accounting mismatch that would otherwise arise.
c) Subsequent measurement
A financial asset is measured at amortized cost if it meets both of the following conditions and is not
designated at FVTPL:
• The asset is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
96
• The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any
gains and losses arising on remeasurement recognized in statement of profit or loss. The net gain
or loss recognized in statement of profit or loss incorporates any dividend or interest earned on the
financial asset and is included in the ‘other income’ line item. Dividend on financial assets at FVTPL
is recognized when:
• The Company’s right to receive the dividends is established,
• It is probable that the economic benefits associated with the dividends will flow to the entity,
• The dividend does not represent a recovery of part of cost of the investment and the amount of
dividend can be measured reliably.
d) Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party.
e) Impairment of other financial assets
The Company applies the expected credit loss model for recognizing impairment loss on financial
assets measured at amortized cost, debt instruments at FVTOCI, lease receivables, trade receivables,
other contractual rights to receive cash or other financial asset
Expected credit losses are the weighted average of credit losses with the respective risks of default
occurring as the weights. Credit loss 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 Company
expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-
adjusted effective interest rate for purchased or originated credit-impaired financial assets). The
Company estimates cash flows by considering all contractual terms of the financial instrument (for
example, prepayment, extension, call and similar options) through the expected life of that financial
instrument.
The Company measures the loss allowance for a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on that financial instrument has increased significantly
since initial recognition. If the credit risk on a financial instrument has not increased significantly
since initial recognition, the Company measures the loss allowance for that financial instrument at
an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion
of the life-time expected credit losses and represent the lifetime cash shortfalls that will result if
default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are
predicted over the next 12 months.
If the Company measured loss allowance for a financial instrument at lifetime expected credit loss
model in the previous year, but determines at the end of a reporting period that the credit risk has not
increased significantly since initial recognition due to improvement in credit quality as compared to
the previous year, the Company again measures the loss allowance based on 12-month expected
credit losses.
For trade receivables or any contractual right to receive cash or another financial asset that result
from transactions that are within the scope of Ind AS 115, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.
97
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables,
the Company has used a practical expedient as permitted under Ind AS 109. This expected credit
loss allowance is computed based on a provision matrix which takes into account historical credit loss
experience and adjusted for forward-looking information.
The impairment requirements for the recognition and measurement of a loss allowance are equally
applied to debt instruments at FVTOCI except that the loss allowance is recognized in other
comprehensive income and is not reduced from the carrying amount in the Balance Sheet.
f) Effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and
of allocating interest income over the relevant year. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through
the expected life of the debt instrument, or, where appropriate, a shorter year, to the net carrying
amount on initial recognition.
Income is recognized on an effective interest basis for debt instruments other than those financial
assets classified as at FVTPL. Interest income is recognized in statement of profit or loss and is
included in the ‘Other income’ line item.
g) Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Company determines
that the counterparty does not have assets or sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off. However, financial assets that are written off
could still be subject to enforcement activities in order to comply with the Company’s procedures for
recovery of amounts due.
ii) Financial Liabilities
a) Classification
Financial liabilities are classified as either financial liabilities ‘at FVTPL’ or ‘other financial liabilities’
b) Initial recognition and measurement
All financial liabilities are recognized initially at fair value. The Company’s financial liabilities include
trade and other payables
c) Subsequent measurement
Other financial liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently
measured at amortized cost using the effective interest method. Gains and losses are recognized
in Statement of Profit and Loss when the liabilities are derecognized 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.
d) De-recognition
The Company de-recognizes financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or they expire. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in the Statement of Profit
and Loss.
98
e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an
intention to sell on a net basis, to realize the assets and sell the liabilities simultaneously
Q. Key sources of estimation uncertainty
Useful lives of property, plant and equipment:
Management reviews the useful lives of property, plant and equipment at least once a year. Such
lives are dependent upon an assessment of both the technical lives of the assets and also their
likely economic lives based on various internal and external factors including relative efficiency and
operating costs. This reassessment may result in change in depreciation and amortization expected
in future periods
Contingencies:
In the normal course of business, contingent liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are possible but not probable of crystalizing or are very
difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the
notes but are not recognized. The cases which have been determined as remote by the Company
are not disclosed.
Contingent assets are neither recognized nor disclosed in the Financial Statements unless when an
inflow of economic benefits is probable.
Fair value measurements:
When the fair values of financial assets or financial liabilities recorded or disclosed in the Financial
Statements cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include consideration of inputs such as liquidity risk, credit
risk and volatility.
Taxes:
Pursuant to the announcement of the changes in the corporate tax regime, the Companies have
an option to either opt for the new tax regime or continue to pay taxes as per the old applicable tax
structure together with the other benefits available to the Companies including utilization of the MAT
credit available. This requires significant estimation in determining in which year the company would
migrate to the new tax regime basis future year taxable profits is including the impact of ongoing
expansion plans of the Company and consequential utilization of available MAT credit. Accordingly,
in accordance with IND AS 12 – Income Taxes, deferred tax assets and liabilities are required to be
measured at the tax rates that are expected to apply to the year when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
99
2 (a). Property, plant and equipment

( ₹ in Millions )
Particulars Office Ramp Furniture Electrical Computers Workshop Plant & Vehicles Total
equipments equipments & fixture fittings equipment machinery
&
instruments
Year ended March 31, 2021
Gross carrying amount
Cost as at April 1, 2020 2.03 5,934.60 1.17 10.86 8.54 2.07 0.07 25.95 5,985.29
Additions 0.06 164.32 - - 0.16 - - - 164.54
Disposals - - - - - - - - -
Closing gross carrying 2.09 6,098.92 1.17 10.86 8.70 2.07 0.07 25.95 6,149.83
amount
Accumulated depreciation
Balance as at April 1, 2020 1.59 2,397.29 0.39 4.14 7.09 0.68 0.07 9.50 2,420.75
Additions 0.21 354.50 0.12 1.02 0.52 0.21 - 3.08 359.66
Disposals - - - - - - - - -
Closing accumulated 1.81 2,751.79 0.51 5.16 7.61 0.88 0.07 12.58 2,780.41
depreciation
Net carrying amount as at 0.28 3,347.13 0.66 5.70 1.08 1.19 0.01 13.37 3,369.42
March 31, 2021
Cost as at April 1, 2021 2.09 6,098.92 1.17 10.86 8.70 2.07 0.07 25.95 6,149.83
Additions 0.25 166.99 0.01 - 2.22 - - 5.85 175.33
Disposals - - - - - - - - -
amount
Accumulated Depreciation
Additions 0.19 370.33 0.12 1.02 0.64 0.21 0.00 3.59 376.09
Disposals - - - - - - - - -
depreciation
March 31, 2022*
Period ended
March 31, 2023
Cost as at April 1, 2022 2.34 6,265.92 1.18 10.86 10.92 2.07 0.07 31.80 6,325.15
Additions 5.84 51.72 - - 4.75 - - 1.75 64.07
Disposals - (270.61) - - - - - - (270.61)
amount
Accumulated Depreciation
Additions 0.33 276.82 0.12 1.02 1.52 0.21 - 3.78 283.79
Disposals - (256.15) - - - - - - (256.15)
depreciation
March 31, 2023*
100
III
IV
2 (b) Intangible assets under development

( ₹ in Millions )
Particulars As at As at As at
March 31, 2023 March 31, 2022 April 1, 2021
Intangible assets under development* 2.15 - -
2.15 - -
* New ERP is under implementation and accodingly proportionate cost paid has been capitalized in Intangible assets
under development
Intangible assets under development aging schedule as on 31st March, 2023

( ₹ in Millions )
Particulars Amount in CWIP for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Projects in Progress 2.15 - - - 2.15

Projects temporarily suspended - - - - -
Intangible assets under development aging schedule as on 31st March, 2022

( ₹ in Millions )
1 year 3 years
Projects in Progress - - - - -
Intangible assets under development aging schedule as on 1st April, 2021

( ₹ in Millions )
1 year 3 years
Projects in Progress - - - - -
101
2 (c) Right to use of assets

( ₹ in Millions )
Particulars Lease of buses
Balance as at April, 1, 2020 252.74
Additions -
Disposals -
Balance as at March 31, 2021 252.74
Balance as at April 1, 2020 92.37
Additions 128.61
Disposals -
Net carrying amount as at March 31, 2021 31.76
Balance as at April 1, 2021 252.74
Additions -
Disposals -
Balance as at April, 1, 2021 220.98
Additions 31.76
Disposals -
Net carrying amount as at March 31, 2022 -
Balance as at April 1, 2022 -
Additions -
Disposals -
Balance as at March 31, 2023 -
Balance as at April, 1, 2022 -
Additions -
Disposals -
Balance as at March 31, 2023 -
102
3. Other non-current financial assets

( ₹ in Millions )
Security deposits 8.50 8.50 8.50
Fixed Deposits >12 months 1,290.00 -
Recoverables from staff 0.66 0.67 4.21
1,299.16 9.17 12.71
4. Income tax assets (net)

( ₹ in Millions )
Advance tax and TDS [net of provisions ₹ 1,985.84 Millions] 487.68 450.12 49.89
487.68 450.12 49.89
5. Deferred tax assets (net)

( ₹ in Millions )
Deferred tax liabilities on account of (DTL)
Depreciation (189.84) (166.59) (151.69)
Total deferred tax liability (189.84) (166.59) (151.69)
Deferred tax asset on account of (DTA)
Unabsorbed depreciation & losses 163.72 278.00 -
Other tax disallowances 1,156.47 973.00 1,115.80
Total deferred tax asset 1,320.19 1,251.00 1,115.80
Net deferred tax asset 1,130.35 1,084.41 964.11
6. Other non-current assets

( ₹ in Millions )
Recoverables from staff 23.74 19.77 29.48
23.74 19.77 29.85
7. Inventories
(Valued at lower of cost or net realisable value)
( ₹ in Millions )
Stores & spares (at cost) 56.11 59.14 62.27

Less: Provisions (33.14) - -
22.97 59.14 62.27
103
8. Trade receivables
( ₹ in Millions )
Unsecured
Considered good* 2,662.98 1,757.25 1,053.25
Undisputed having significant increase in credit risk 1,759.42 1,009.37 958.75
4,422.40 2,766.62 2,012.00
Less: Allowance for expected credit loss 1,759.42 1,009.37 958.75
2,662.98 1,757.25 1,053.25
Dues from group companies** 1,408.46 1,742.08 2,677.09
4,071.44 3,499.33 3,730.34
*Company has reclassified advances from trade receivables and has shown separately as gross.
** Dues from group companies and payables to group companies has been shown separately.
Trade receivable ageing schedule ( ₹ in Millions )

As at March 31, 2023 Outstanding for the following period from due date of Total
payment
Particulars Unbilled Less than 6 month - 1 -2 2-3 More
Dues 6 month 1 year years years than 3
years
Undisputed trade receivable - 1,103.62 1,679.01 677.54 424.75 186.51 - 4,071.43
considered good
Undisputed trade receivable - which - 223.50 139.80 99.16 43.54 1,253.43 1,759.42
have significant increase in credit risk
Undisputed trade receivable - credit - - - - - - -
impaired
Disputed trade receivable - - - - - - - -
considered good
Disputed trade receivable - which - - - - - - -
Disputed trade receivable - credit - - - - - - -
impaired
Less: Allowance for expected credit - - - - - - (1,759.42)
loss (refer note 46 (B)(i))
Net trade receivables 1,103.62 1,902.50 817.34 523.91 230.06 1,253.43 4,071.44
( ₹ in Millions )
payment
years
Undisputed trade receivable - 1,160.32 1,106.12 407.69 370.33 454.87 - 3,499.33
considered good
Undisputed trade receivable - which - 38.17 29.75 58.30 118.46 764.69 1,009.37
impaired
considered good
104
( ₹ in Millions )
payment
years
impaired
Less: Allowance for expected credit - - - - - - (1,009.37)
Net trade receivables 1,160.32 1,144.29 437.44 428.63 573.33 764.69 3,499.33
( ₹ in Millions )
As at April 1, 2021 Outstanding for the following period from due date of Total
payment
years
Undisputed trade receivable - 183.55 725.16 2.67 851.47 768.29 1,199.20 3,730.34
considered good
Undisputed trade receivable - which - - - 46.85 47.08 864.82 958.75
impaired
considered good
impaired
Less: Allowance for expected credit - - - - - - (958.75)
Net trade receivables 183.55 725.16 2.67 898.32 815.37 2,064.02 3,730.34
The credit period on sales of services ranges from 30 to 60 days with or without security.
Before accepting any new customer, the company uses an external credit scoring system to assess the potential
customer’s credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed
once a year.
The company does not generally hold any collateral or other credit enhancements over these balances nor does it
have a legal right of offset against any amounts owed by the company to the counterparty.
Credit risk management regarding trade receivables has been described in note 48 (B)(i).
Trade receivables from related parties’ details has been described in note 47.
Trade receivables does not include any receivables from directors and officers of the company.
Trade receivables does not include any amount of receivables from struck off companies.
105
9. Cash and cash equivalents

( ₹ in Millions )
Balances with banks
-In current account 520.23 592.06 43.27
Cash on hand - - -
Fixed deposits with banks with original maturity of less than 0.20 184.12 0.19
three months*
520.43 776.18 43.46
( ₹ in Millions )
* Earmarked balance represents fixed deposits with Dy. 0.20 0.20 0.19
Commissioner (sales tax)
10. Bank balances other than cash and cash equivalents

( ₹ in Millions )
Fixed deposits with banks with original maturity more than 3 1.73 61.66 1.59
months but less than 12 months*
1.73 61.66 1.59
( ₹ in Millions )
Particulars As at As at As at April 1,
March 31, 2023 March 31, 2022 2021
* Earmarked balance represents fixed deposits with Dy. 1.73 1.66 1.59
Commissioner (goods and service tax)
11. Other current financial assets

Unsecured, considered good ( ₹ in Millions )
Other receivables 32.75 1.13 0.94
Entitlement of “Service Export from India Scheme” 90.25 22.05 94.80
Less: Allowance for duty credit entitlement under SEIS (22.05) (22.05) -
100.96 1.13 95.74
12. Other current assets

( ₹ in Millions )
Advance to suppliers* 79.98 44.14 35.64

Less: Allowance for doubtful advances (15.28) (9.74) -
64.70 34.40 35.64
Prepaid expenses 79.84 4.13 -
Advance to staff 0.21 0.04 0.12
144.75 38.57 35.76
** During the year 22-23 and 21-22, company has reclassified advances from customers and has shown separately,
however for the year 20-21, advance from customers are shown net.
106
13. Equity share capital
a. Details of authorised, issued and subscribed and paid up share capital ( ₹ in Millions )
Particulars No. in As at No. in As at No. in As at
millions March 31, 2023 millions March 31, 2022 millions April 1, 2021
Authorised capital
Equity shares of ₹ 10/- each 1,000 10,000.00 1,000 10,000.00 1,000 10,000.00
Issued capital, subscribed and fully

paid up
Equity shares of ₹ 10/- each 138.42 1,384.24 138.42 1,384.24 138.42 1,384.24
1,384.24 1,384.24 1,384.24
b. Reconciliation of number of shares ( ₹ in Millions )
Particulars As at March 31, 2023 As at March 31, 2022 As at April 1, 2021

Number ₹ in Millions Number ₹ in Millions Number ₹ in Millions
Shares outstanding at the beginning of 138.42 1,384.24 138.42 1,384.24 138.42 1,384.24
the year
Shares Issued during the year - - - - - -
Shares outstanding at the end of 138.42 1,384.24 138.42 1,384.24 138.42 1,384.24
the year
c. Terms and conditions

The company has only one class of equity shares having a face value of ₹10 per share. Each holder of equity share
is entitled to one vote per share. In the event of liquidation of the company, the holder 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.
d. Shareholders having more than 5% shareholding
Name of shareholder As at March 31, 2023 As at March 31, 2022 As at April 1, 2021
Number Percentage Number Percentage Number Percentage
Air India Limited - - - - 138.42 100%
AI Assets Holding Limited 138.42 100.00% 138.42 100.00% - -
e. Equity shares held by the holding company: ( ₹ in Millions )

Name of the Relationship As at March 31, 2023 As at March 31, 2022 As at April 1, 2021
shareholder Number ₹ in Millions Number ₹ in Millions Number ₹ in Millions
Air India Limited# Holding - - - - 138.42 1,384.24
Company
AI Assets Holding Holding 138.42 1,384.24 138.42 1,384.24 - -
Limited## Company
Total 138.42 1,384.24 138.42 1,384.24 138.42 1,384.24
# upto January 13, 2022
## from January 13,2022
107
f. Shareholding of promoters ( ₹ in Millions )

Name of the As at March 31, 2023 As at March 31, 2022 As at April 1, 2021
promoter Number Percentage Percentage Number Percentage Percentage Number Percentage Percentage
change change change
during the during the during the
period period period
Air India Limited - - - - - - 138.42 100.00% -
AI Assets 138.42 100.00% - 138.42 100.00% - - - -
Holding Limited
Note
The number of shares held and percentage of holding represents the shares held in the individual capacity.
Promoter here means promoter as defined in the Companies Act, 2013, as amended.
g. Shares issued other than Cash

There were no bonus shares issued and there is an instance of shares being issued for consideration other than cash and
no shares have been bought back by the company during the period of five years immediately preceding the date of Balance
Sheet.
14. Other equity ( ₹ in Millions )

Particulars Reserves & Other Total
surplus comprehensive
Retained earnings income

Loss for the year (1,885.33) - (1,885.33)
Correction of error/ omission (refer note 31) (86.78) - (86.78)
Balance as at March 31, 2021 1,780.20 (1.91) 1,778.29
Profit/ (Loss) for the year 59.96 - 59.96
Balance as at April 1, 2022 1,840.16 227.01 2,067.16
Profit/ (Loss) for the period 783.14 - 783.14
Rounding off difference 0.07 - 0.07
Remeasurement of employee benefits obligations - (3.92) (3.92)
Nature and purpose of reserves

Retained earnings
Retained earnings represents surplus/accumulated earnings of the Company and
are available for distribution to shareholders
Other comprehensive income
Other comprehensive income consists of remeasurement gains/ (loss) on defined employee benefit obligations.
108
15. Lease liabilities

( ₹ in Millions )
Lease liabilities on initial recognition as on 1st April
Additions - - -
Interest accrued - 0.52 9.55
Lease principal payments - 35.19 131.05
Lease interest payments - 0.52 9.55
At 31st March
Current - - 35.19
Non-current - - -
16. Other financial liabilities

( ₹ in Millions )
Security deposits from customers 38.05 28.99 21.50

Security deposits from vendors 34.43 34.29 30.56
Payable to employees - 1.23 0.11
72.48 64.51 52.17
17. Provisions
( ₹ in Millions )
Provision for employee benefits:

Leave entitlement 300.21 301.74 307.41
Gratuity 701.88 780.53 818.83
Medical 1,411.45 1,346.82 1,499.18
2,413.54 2,429.09 2,625.43
18. Other current financial liabilities

( ₹ in Millions )
Payable to employees 1,185.56 990.53 897.70
1,185.56 990.53 897.70
109
19. Provisions
( ₹ in Millions )
Provision for employee benefits
Leave entitlement 67.61 75.61 74.44
Gratuity 159.28 172.67 183.63
Medical - 64.63 54.23
Other provisions
Provision for other statutory dues 632.04 141.01 -
Provision for demand notice under SEIS - 24.58 -
Provision for interest on MSME vendors 0.10 0.04 -
859.04 478.54 312.29
20. Other current liabilities

( ₹ in Millions )
Statutory liabilities 72.56 8.19 357.54
Advance from customers * 284.33 287.63 0.57
356.89 295.82 358.11
** During the year 22-23 and 21-22, company has reclassified advances from customers and has shown separately,
however for the year 20-21, advance from customers are shown net.
21. Trade payables

( ₹ in Millions )
Total outstanding dues of micro enterprises and small 2.30 0.14 4.51
enterprises
Total outstanding dues of creditors other than micro 1,619.33 1,458.10 978.97
enterprises and small enterprises*
1,621.64 1,458.24 983.48
* Company has reclassified advances to trade payables and has shown separately.
* Dues from group companies and payables to group companies has shown separately.
Interest paid / payable by the Company on the aforesaid principal amount has been waived by the concerned
supplier.
Trade payables Ageing of Schedule
As at March 31, 2023 ( ₹ in Millions )
Particulars Outstanding for following periods from due date of Accrued Total
payment expenses
Not due Less than 1-2 2 - 3 More than
1 year years years 3 years
(i) MSME - 2.30 - - - - 2.30
(ii) Others - 700.15 557.45 9.53 60.09 292.12 1,619.33
(iii) Disputed dues - MSME - - - - - - -
(iv) Disputed dues - others - - - - - - -
Total - 702.45 557.45 9.53 60.09 292.12 1,621.64
110
As at March 31, 2022 ( ₹ in Millions )

payment expenses
(i) MSME - 0.10 - - 0.04 - 0.14
(ii) Others - 899.97 28.38 63.84 107.16 358.75 1,458.10
Total - 900.07 28.38 63.84 107.20 358.75 1,458.24
As at April 1, 2021 ( ₹ in Millions )

payment expenses
(i) MSME - - - 4.51 - 4.51
(ii) Others - 428.06 393.60 97.68 10.55 49.08 978.97
Total - 428.06 393.60 97.68 15.06 49.08 983.48
Trade payables does not include the amount payable to struck off companies.
Trade payable are normally settled within 30 to 60 days
Trade payable to related parties has been disclosed in note 47
22. Revenue from operations
( ₹ in Millions )
Particulars Period ended Year ended
March 31, 2023 March 31, 2022
A. Revenue from handling services
Revenue from Air India 2,708.50 3,235.40
Revenue from group companies 485.69 697.33
Revenue from 3rd party handling 4,417.59 2,450.97
Revenue from government parties 158.38 29.57
Revenue from casual handling 371.84 321.52
8,142.00 6,734.79
Less: Revenue sharing with holding company - 356.53
Total (A) 8,142.00 6,378.26
B. Cargo handling revenue

APEDA revenue 29.93 25.51
Others 581.43 445.29
Total (B) 611.36 470.80
C. Equipment loaning
Other 191.37 139.45
Total (C) 191.37 139.45
Total revenue from operations (A+B+C) 8,944.73 6,988.51
111
Timing of revenue recognition

( ₹ in Millions )
March 31, 2023 March 31, 2022
Services transfered at a point in time 8,944.73 6,988.51
Total revenue from contacts with customers 8,944.73 6,988.51
23. Other income

(₹ in Millions)
March 31, 2023 March 31, 2022
Recruitment application money 5.37 0.26
Interest on overdue payments on group companies 116.67 172.24
Interest on overdue payments on other than group companies 29.72 1.67
Interest income on fixed deposit 47.48 1.44
Foreign Exchange Gain (Net) 25.16 -
Profit sharing of HAL-JWG (refer note 32) 13.70 8.35
Miscellaneous income 140.75 48.09
Total 378.25 232.05
24. Employee benefits expense

(₹ in Millions)
March 31, 2023 March 31, 2022
Salaries and bonus 4,604.70 4,216.54
Contribution to provident and other funds 395.48 416.96
Staff welfare expenses 7.60 25.52
Gratuity 59.20 69.90
Leave encashment 53.56 55.94
Medical benefit expenses 41.29 36.61
Total 5,161.82 4,821.47
25. Finance costs

(₹ in Millions)
March 31, 2023 March 31, 2022
Interest expense on lease liability - 0.52
Interest on delayed payment of statutory dues 13.43 121.99
Other interest costs 135.78 251.02
Total 149.21 373.53
26. Depreciation and amortization expense

(₹ in Millions)
March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 283.79 376.10
Depreciation on right-of-use assets - 31.76
Total 283.79 407.86
112
27. Other expenses

(₹ in Millions)
March 31, 2023 March 31, 2022
Handling charges 265.01 36.35
Insurance 23.44 57.68
Repairs & maintenance - others 83.12 81.16
Electricity, heating & fuel 332.54 210.34
Water charges 5.58 1.99
SESF Handling Charges 22.99 0.75
Stores & spares consumption 136.13 71.59
Hire of transport & equipments 23.23 14.41
Loss on sale of duty credit entitlement under SEIS - 4.30
Write off of assets 14.46 -
Sundry balances written off - 106.31
Allowance for duty credit entitlement under SEIS (refer note 40) - 66.79
Allowance for doubtful advances 5.54 9.74
Allowance for Inventories 33.14 -
Printing & stationary 9.95 4.05
General office expenses 16.70 14.27
Bad debts written off (net) - 110.00
Expected credit loss allowance 750.06 231.72
Rent expenses 442.70 190.25
Rates and taxes 474.80 14.11
Travelling and conveyance expenses 60.22 19.70
Legal and professional expenses 4.78 8.15
Foreign exchange loss (net) - 449.61
Corporate social responsibility - 4.98
Remuneration to statutory auditor
- Audit fees 1.00 1.00
- Out of pocket expenses 0.10 0.10
Miscellaneous expenses 49.70 21.08
Total 2,755.19 1,730.43
28. Earnings/(loss) per equity share:

March 31, 2023 March 31, 2022
Basic/diluted earnings per Share
Profit/(loss) attributable to equity shareholders (₹ in millions) 783.14 59.96
Weighted average number of equity shares (in millions) 138.42 138.42
Basic and diluted earnings per share (in ₹) 5.66 0.43
Face value per Share (in ₹ ) 10 10
113
29. Contingent liabilities, assets & commitments

a) Contingent liabilities
( ₹ in Millions )
March 31, 2023 March 31, 2022
Claims against the company not acknowledged as debts:
- Income tax demands against which the company is in appeals (including 312.19 218.34
interest upto date of order)#
- Interest on GST demands ## 296.22 -
- Others ### 14.91 23.76
Total 623.32 242.10
#Income tax demand notices received by the Company which are under appeal (₹ in Millions)
Particulars AY Appeal status Amount
The income tax outstanding demand order raised on March 04, 2013-14 CIT(A) on April 19.18
2016 u/s 143(3) 07, 2016
The income tax outstanding demand order raised on December 2017-18 CIT(A) on 6.60
27, 2019 u/s 143(3) January 21, 2020
The income tax outstanding demand order raised on March 24, 2017-18 Response to IT 5.40
2021 u/s 143(1) Dept on June 09,
2022
The income tax outstanding demand order raised on May 25, 2018-19 CIT(A) on 80.76
2021 u/s 143(3) October 04, 2021
The income tax outstanding demand order raised on December 2020-21 CIT(A) on 200.25
23, 2021 u/s 143(1). In this, ₹ 82.65 million amount of tax has October 29, 2022
already been paid on October 16, 2021
Total 312.19
## Interest on GST demand notices received by the Company (₹ in Millions)

Particulars FY Notice Status Amount
Maharashtra State 2017-2020 Interim Notice 262.16
Goa State 2017-18 Show Cause 4.63

Notice
Rajasthan State 2017-2020 GST Summon 29.43
296.22
Explanatory statement in respect of other contingent liabilities:

## Other claims on account of staff/civil/arbitration cases pending in courts (₹ in Millions)
Description Name of Case no. Amount
parties
It is against the punishment of removal from services for M L Shetty CGIT 2/12-2016 0.21
misconduct relating to loss of business to the company. The party Pending for
has asked for re-instatement with back wages in services till the hearing
date of normal retirement, i.e., December 31, 2016.
The workman is challenging the order dated March 01, 2016 ST Katkar CGIT 2/13 of 2.30
regarding his removal from the services for misconduct relating to 2016
defamation of AIATSL Executives. He is demanding continuity in Pending for
services with full back wages. hearing
114
(₹ in Millions)
Description Name of Case no. Amount
parties
It is against the punshiment of removal from the services relating PN Powar CGIT 2/3 of 2017 2.30
to willful insubordination or disobedience of any lawful and Pending for
reasonable order of his superior and neglect of work. The party hearing
is asking for re-insistatment in service with full back wages and
other benefits.
This reference is against the termination of contract for misconduct. SB Adhav CGIT 2/15 of 0.20
The party has claimed re-instatement with full back wages w.e.f 2017
October 17, 2017, i.e., date of termination of contract. Pending for
hearing
The Party had raised a demand of ₹ 9.90 millions (including penal Neha NA 9.90
interest and GST thereon) for providing baggage, cargo handling Aviation
and miscellaneous services at Jaipur Airport.The Company has Management
reviewed all their outstanding bills and found that the bills raised Pvt. Ltd.
by the vendor were not correct and even for a single service,
billing for double services has been raised. Hence, the claim
has not been acknowledged as debt and has been shown as
contingent liability.
Total 14.91
b. Capital and other long-term commitments:

Capital contract commitments and long-term commitments is ₹ 119.50 millions as on March 31, 2023 (previous year
₹ Nil). Summary of Capital commitments are as below:
Particulars (₹ in Millions)
Intangible assets 66.08
Ramp equipments 29.65
Computers 4.48
Vehicles 17.85
Furniture and fixtures 0.35
Workshop equipment & instruments 0.31
Office equipments 0.79
Total 119.50
30. Disinvestment Status:

Air India Limited has been disinvested on 27th January 2022. AI Airport Services Limited shares were transferred on
13th January 2022 to AI Asset Holding Limited. By virtue of the above, AI Airport Services became a wholly owned
subsidiary of AI Asset Holding Limited w.e.f. 13th January 2022.
AIAHL, a Special Purpose Vehicle (SPV) was created for warehousing accumulated working capital loans not backed
by any asset along with four subsidiaries AAAL, AIASL, AIESL, HCI, non-core assets paintings and artificats and
other non-operational assets of Air India.
Further in this regard the Preliminary Information Memorandum (PIM) for the invitation of the bids of Expression
of Interest (EOI) for the disinvestment of AIASL has already been issued and the details of which are as under.
AIAHL had issued PIM on 12th February 2019 for inviting Expression of Interest for the proposed strategic sale of
Air India Air Transport Services Limited followed by 12 corrigendum extending the dates with the last date being 27th
December 2019. However, it was informed that the strategic sale of AI ASL stood cancelled and AIAHL will reinitiate
the process of proposed strategic sale of AI ASL in due course.
115
31. Correction of prior period errors in accordance with Ind AS 8 “Accounting policies, changes
in accounting estimates and errors”
During the year, the company undertook a detailed review of Opening Balances and discovered that the below
mentioned Line items of financial statements had been incorrectly accounted/disclosed in the prior year. These errors
have now been corrected by restating each of the affected financial statements line items for the prior year.
( ₹ in Millions )
Particulars As at March 31, 2022 As at April 1, 2021
Balance sheet (extract) As Increase/ Restated As Increase/ Restated
previously (decrease) previously (decrease)
reported reported
Property, Plant and 3,161.54 7.11 3,168.65 3,369.42 - 3,369.42
Equipments
Other non-current 1,563.47 - 1,563.47 1,088.32 - 1,088.32
financial assets
Other non-current assets - - - - - -
Total non-current assets 4,725.01 7.11 4,732.12 4,457.74 - 4,457.74
Trade receivables 3,492.60 6.73 3,499.33 3,715.39 14.95 3,730.34
Other current financial 838.97 - 838.97 140.79 - 140.79
assets
Other current assets 97.71 - 97.71 98.03 - 98.03
Total current assets 4,429.28 6.73 4,436.01 3,954.21 14.95 3,969.16
Total assets 9,154.29 13.84 9,168.13 8,411.95 14.95 8,426.90
Equity share capital 1,384.24 - 1,384.24 1,384.24 - 1,384.24
Retained earnings 2,160.48 (93.32) 2,067.16 1,850.12 (71.83) 1,778.29
Total Equity 3,544.72 (93.32) 3,451.40 3,234.36 (71.83) 3,162.53
Other non-current - - - - - -
financial liabilities
Other non-current 2,493.60 - 2,493.60 2,677.60 - 2,677.60
liabilities
Total non-current 2,493.60 - 2,493.60 2,677.60 - 2,677.60
liabilities
Trade payables - Total 1,457.88 0.36 1,458.24 983.48 - 983.48
outstanding dues of
creditors other than micro
enterprises and small
enterprises
Other current financial 883.73 106.80 990.53 846.11 86.78 932.89
liabilities
Other current liabilities 774.36 - 774.36 670.40 - 670.40
Total current liabilities 3,115.97 107.16 3,223.13 2,499.99 86.78 2,586.77
Total equity and 9,154.29 13.84 9,168.13 8,411.95 14.95 8,426.90
liabilities
Statement of Profit and
loss (extract)#
Revenue from operations 6,981.78 6.73 6,988.51 - - -
Other income 219.84 12.21 232.05 - - -
Total revenue 7,201.62 18.94 7,220.56 - - -
Employee benefits 4,714.67 106.80 4,821.47 - - -
expense
116
Particulars As at March 31, 2022 As at April 1, 2021

Finance costs 373.53 - 373.53 - - -
Depreciation 402.40 5.46 407.86 - - -
Other expenses 1,730.43 - 1,730.43 - - -
Total expenses 7,221.03 112.25 7,333.29 - - -
Loss before tax (19.41) (93.32) (112.73) - - -
Loss after tax 153.27 (93.32) 59.96 - - -
Total comprehensive 382.19 (93.32) 288.88 - - -
loss for
the year
32. Disclosure with regard to joint working group

HAL Bangalore airport belongs to Hindustan Aeronautics Limited (HAL) and Ground Handling Services were
provided by HAL. However, Company entered into an arrangement vide agreement dated April 29, 2016 with
HAL to provide the expertise of the Company for Ground Handling Services at Bangalore Airport. In terms of such
arrangement, the Company will use all infrastructure of HAL to provide the Ground Handling Services at that
airport and in terms of the same net profit of HAL, after tax, shall be shared equally between HAL and the company.
Accordingly, 50% share of net profit of HAL for the current year amounting to ₹ 13.70 millions has been accounted
for as Other Income.
( ₹ in Millions )
Name of the joint working Group AIASL joint working
group
As at March As at March
31, 2023 31, 2022
Share of company / ownership interest 50% 50%
Income - company’s share 62.50 44.10
Expediture - company’s share 35.10 27.40
Profit - company’s share 27.40 16.70
Share of income of joint working groups of the company with HAL 13.70 8.35
Contingent liability - -
33. Reconciliation/Confirmation
(a) The Company has sought for the confirmation of balances for all the major trade receivables and the company
has obtained the balance confirmation of balances receivables from the holding company, sister concern of the
holding company and is yet to obtain the balance confirmation from some private parties, further reconciliation
has been completed and balance confirmations have been sent. In case of trade payables some parties have
responded and wherever the party’s balances are not in agreement with the books, the reconciliation of the
differences is in progress. Impact, if any, of the consequential adjustments arising out of the reconciliation will
be dealt with in the year of completion of the reconciliation and approvals from appropriate authority.
(b) The reconciliation and matching of certain unmatched receivables/ recoverable from staff and payables including
certain control ledger is in the process. Impact, if any, of the consequential adjustments arising out of the
reconciliation will be dealt with in the year of completion of the reconciliation and approvals from appropriate
authority.
(c) Goods & Service Tax (GST) and other statutory dues have been reconciled with the returns filed and statutory
records maintained by the company. Necessary adjustments have been made.
117
34. Property, plant and equipment (PPE)

As per the policy of the company physical verification of the major assets of the company will be done on rotational
basis so that every asset will be verified every two years. Accordingly, the company has conducted the physical
verification of the assets in house and company is verifying the discrepancies observed in the course of the verification
and the same will be adjusted in the year in which final reconciliation is completed, after taking approval from the
concerned authority. Further, management has identified the requirement to tag all assets of the company and to fulfill
the same, a reconciliation exercise has been initiated on all station across pan India and the impact of reconciliation
will be taken in the year in which exercise will be completed.
35. Inventories
Physical Verification of Inventories carried out internally at four locations where inventories are stored has been
carried out by officer of the company and duly certified. Physical verification has been carried out on March 31,
2023. The inventories have value in use at least equal to the carrying value in the books based on the confirmation
received from the user (technical) department. The consumption of inventories is computed on the basis of derived
figure.
Further, company has made provision for following categories of inventories as per the rate mentioned below:
a) Fast moving inventories- 0%
b) Slow moving inventories- 25%
c) Non moving inventories- 50%
d) Obselete inventories- 100%
36. Cash and bank balances

The process of year end Bank balances have been fully reconciled and confirmations from banks have been obtained
in respect of all bank accounts. Further, company has not maintaining any cash, therefore there is no cash in hand
at the end of the year.
37. Interest on overdue payments on group companies

The interest has been charged at the rate of 9% on average balance method in respect of Air India Engineering
Services Limited, Alliance Air Aviation Limited as per past practice.
The interest charged for the group companies is as under:

( ₹ in Millions )
Particulars Amount
Air India Engineering Services Limited 21.87
Alliance Air Aviation Limited 94.80
Total 116.67
38. Income on supply of manpower

Company is supplying manpower to group companies including few third parties after charging cost plus 10% and
accordingly company has shown the 10% markup in other income and cost recovery was reduced from Manpower
cost till FY 21-22. However, from current FY 22-23, company has shown complete cost recovery with 10% mark up
in Revenue from operations and accordingly company has reclassified the figures in statement of Profit and Loss for
FY 21-22.
39. Internal control
The company has appointed independent firm of Chartered Accountants for conducting the internal audit to provide
suggestions for the improvement in the system required if any. The scope of the internal auditor is reviewed by the
management from time to time so as to ensure implementation of the effective internal controls at stations, regional
offices and user departments and system for uniform and timely accounting entries of transactions in SAP.
118
40. Entitlement of “Service Export from India Scheme” (SEIS)

The company is entitled for credit under the “Service Export from India Scheme” on the basis of the foreign exchange
earned by the company through export of services. The said benefit, in the form of license /scrips, is provided by
the Director General of Foreign Trade (DGFT). The company is in the process of submitting of claim for the 2019-
20. Pending submission of claim, no export entitlement has been recognized for such financial years in the current
year.
During the year, the company had received a license amounting Rs 69.69 millions for FY 2018-19 from
Directorate General of Foreign Trade (DGFT) dated March 15, 2023, The company has recognized this license
as assets after crediting to other income. Further, company has observed that company has claimed Rs 1.49
millions inadvertently on higher side and accordingly company has paid the same by way of Demand Draft dated
27.04.2023.
During the year, SEIS license no. 0319271362 issued for the year 2017-18 having entitlement claim of ₹ 22.06
millions, had expired on January 19, 2022. The company had applied to Policy Relaxation Committee (PRC) for
extension of expiry date for the aforesaid license and accordingly, the Company had created a provision to the extent
of full value of the license during FY 2021-22.
41. Valuation of unclaimed/uncleared Cargo lying at International Cargo Warehouse, Mumbai

In the FY 22-23, Company has conducted the valuation of uncleared/ unclaimed cargo for the year 2012 to 2020
through a govenrment approved valuer appointed through a tender process. The company has sent the 2 notices via
speed post to the consignee’s wherever the records of consignee are available and also displayed public notices at
various locations and on various websites, intimating disposal/ auction of uncleared/unclaimed cargo lying at Cargo
Warehouse, Mumbai.
Valuer has valued Rs 9.16 million the value of unclaimed/uncleared cargo lying at cargo warehouse and accordingly
company has intimated the same to Customs Disposal Task force. The Customs task force will undertake 100%
examination of all the consignments. After examination of the same, it will be auctioned through M/s MSTC Limited or
destucted in presence of Custom officials, after obtaining clearance from regulatory agencies. Expected cost involved
in destruction would be Rs 0.5 millions. At this stage, we are unable to quantify the realizable value of unclaimed/
uncleared cargo to recognize the same in books of accounts.
42. Claims from Jet Airways (India) Ltd.
The Company has submitted its claims of ₹ 250.18 millions (including interest) from M/s Jet Airways (India) Ltd to
the Interim Resolution Professional / Resolution Professional of M/s Jet Airways (India) Ltd out of which claims of ₹
166.10 millions has been admitted. Further, with reference to regulation 39 (5A) of the Insolvency and Bankruptcy
Board of India Regulations 2016, principle or formulae proposed to Operational creditors (other than Workmen &
employees and Ticket Refund) under the Approved Resolution Plan (Jet Airways (I) Limited) by Hon’ble NCLT on
25th June 2021 vide order dated 22nd June 2021, payment of a fixed sum of ₹ 15000/-(irrespective of the claim
amount) to each Relevant Creditor was awarded. The company has submitted that the payment of a fixed sum of
₹ 15,000/- was not acceptable. However, 100% provision of the receivables from M/s Jet Airways (India) Ltd is
considered in ECL.
43. Claims from Go Airlines India Ltd.
The Go Airlines India Limited has submitted their application to NCLT for insolvency resolution process and
accordingly NCLT has accepted the application and initiated the insolvency process vide order dated May 10th,
2023 and allow company has filed its claim amounting Rs 220.35 millions as on March 31st, 2023 (including
interest amounting Rs 11.27 millions and accordingly company has made the 100% provision of the receivables
excluding interest in ECL.
119
44. The Micro and Small Enterprises Development Act, 2006:

The accounting system (SAP) has a field, minority indicator in vendor master, which is updated to identify the
vendor as MSME. The system is being enhanced to capture more details of SSI vendors, such as certificate
no., issuing agency, validity, etc. However, payments to such undertakings covered under the Micro, Small and
Medium Enterprises Development Act (to the extent identified) have been made within the prescribed time limit/
date agreed upon with the supplier and hence, no interest is payable on delayed payments. In other cases,
necessary compliance/disclosure will be ensured in due course.
( ₹ in Millions )
Particulars As at As at
March 31, 2023 March 31, 2022
The principal amount remaining unpaid to any supplier as at the end of accounting 2.30 0.14
year;
Principal amount overdue more than 45 days 2.30 0.14
The interest due and remaining unpaid to any supplier as at the end of accounting 0.10 0.04
year;
The amount of interest paid by the buyer in terms of Section 16 of the MSMED - -
Act, 2006 along with the amounts of the payment made to the supplier beyond the
appointed date during each accounting year;
The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed date during the year) but without
adding the interest specified under the MSMED Act, 2006;The amount of interest
due and payable for the period (where the principal has been paid but interest
under the MSMED Act, 2006 not paid);
The amount of interest accrued and remaining unpaid at the end of accounting 0.10 0.04
year; and
The amount of further interest due and payable even in the succeeding year, - -
until such date when the interest dues as above are actually paid to the small
enterprise, for the purpose of disallowance as a deductible expenditure under
section 23 of MSMED Act, 2006.
The information has been given in respect of such vendor to the extent they could be identified as Micro and Small
Enterprise as on the basis of information available with the company.
45. Employees benefit plan

(A) Defined contribution plan
Employees provident fund: The company has employees provident fund trusts under the Provident Fund Act, 1925
for permanent employees. Also, the company subscribes to EPFO under Employees’ Provident Fund Scheme, 1952
which governs the provident fund plans in respect on employees on contract. The company as well as the employees
contributes at applicable rates to the provident fund out of which provident fund is paid to the employees. Company’s
contribution to provident fund recognized in the Statement of profit and loss is ₹ 327.79 million (previous year:
₹ 363.50 million)
There is a Supreme Court (SC) judgement dated February 28, 2019, relating to components of salary structure
that need to be taken into account while computing the contribution to provident fund under the EPF Act. There
are interpretative aspects related to the Judgement including the effective date of application. In the view of the
management, the contribution for PF is to be calculated as per Employee’s Provident Funds and Miscellaneous
Provisions Act, 1952.
120
(B) Defined benefit plans:

a) Gratuity: Gratuity is payable to all the eligible employees of the company on superannuation, death, or permanent
disablement, in terms of the provisions of the Payment of Gratuity Act. The company has a defined benefit gratuity
plan in India (unfunded). gratuity is paid from the company as and when it becomes due and is paid as per the
company scheme for Gratuity.
i) Disclosure statement as per Ind AS of gratuity
March 31, 2023 March 31, 2022
Type of benefit Gratuity Gratuity
Country India India
Reporting currency INR INR
Reporting standard Indian Accounting Indian Accounting
Standard 19 Standard 19
(Ind AS 19) (Ind AS 19)
Funding status Unfunded Unfunded
Starting period April 01,2022 April 01,2021
Date of reporting March 31,2023 March 31,2022
Period of reporting 12 months 12 months
a) Assumptions (previous period)

March 31, 2022 March 31, 2021
Expected return on plan assets N.A. N.A.
Rate of discounting 6.84% 6.57%
Rate of salary increase 5.50% 5.50%
Rate of employee turnover 10% & 2% as 10% & 2% as
Applicable Applicable
Mortality rate during employment ndian Assured Lives Indian Assured Lives
Mortality 2012-14 Mortality
(Urban (2006-08) Ultimate
Mortality rate after employment N.A. N.A.
b) Assumptions (Current Period)

( ₹ in Millions )
March 31, 2023 March 31, 2022
Rate of salary increase 5.50% 5.50%
Rate of employee turnover 10% & 2% as 10% & 2% as
Applicable Applicable
Mortality rate during employment Indian Assured Lives Indian Assured Lives
Mortality 2012-14 Mortality (2006-08)
(Urban) Ultimate
Mortality rate after employment N.A. N.A.
Present value of benefit obligation at the beginning of the period 953.19 1002.45
Interest cost 63.35 63.04
121
March 31, 2023 March 31, 2022
Current service cost 59.2 68.45
Past service cost - -
(Benefit paid directly by the employer) (218.50) (136.42)
Actuarial (gains)/losses on obligations - due to change in demographic (0.14)
assumptions
Actuarial (gains)/losses on obligations - due to change in financial (20.16) (38.50)
assumptions
Actuarial (gains)/losses on obligations- due to Experience 24.08 (5.69)
Present value of benefit obligation at the end of the period 861.16 953.19
c) Amount recognized in the balance sheet

( ₹ in Millions )
March 31, 2023 March 31, 2022
Present value of benefit obligation at the end of the period (861.16) 953.19
Funded status (surplus/ (deficit)) (861.16) 953.19
Net (liability)/asset recognized in the balance sheet (861.16) (953.19)
d) Net interest cost for current period

( ₹ in Millions )
Particulars For the Year ended For the Year ended
March 31, 2023 March 31, 2022
Present value of benefit obligation at the beginning of the period 953.19 1,002.46
Net liability/(asset) at the beginning 953.2 1002.46
Net interest cost for current period 63.35 63.04
e) Expenses recognized in the statement of profit or loss for current period

( ₹ in Millions )
March 31, 2023 March 31, 2022
Net interest cost 63.35 63.04
(Expected contributions by the employees) - -
(Gains)/losses on curtailments and settlements - -
Net effect of changes in foreign exchange rates - -
Expenses recognized 122.55 131.49
f) Expenses recognized in the other comprehensive income (OCI) for current period
( ₹ in Millions )
March 31, 2023 March 31, 2022
Actuarial (gains)/losses on obligation for the period 3.92 (44.33)
Return on plan assets, excluding interest income - -
Change in asset ceiling - -
Net (income) / expense for the period recognized in OCI 3.92 (44.33)
122
g) Balance Sheet reconciliation

( ₹ in Millions )
March 31, 2023 March 31, 2022
Opening net liability 953.19 1,002.44
Expenses recognized in statement of profit or loss 122.54 131.49
Expenses recognized in OCI 3.92 (44.33)
Net liability / (asset) transfer in 0 -
Net liability / (asset) transfer out 0 -
(Benefit paid directly by the employer) (218.50) (136.42)
(Employer’s contribution) -
Net liability/(asset) recognized in the balance sheet 861.16 953.19
h) Other Details
( ₹ in Millions )
March 31, 2023 March 31, 2022
No of members in service 16440 11,369
Per month salary for members in service 182.42 135.61
Weighted average duration of the defined benefit obligation 6 6
Average expected future service 8 7
Defined benefit obligation (DBO) - total 861.16 953.20
Defined benefit obligation (DBO) - due but not paid 41.78 27.05
i) Net interest cost for next year

( ₹ in Millions )
March 31, 2023 March 31, 2022
(Fair value of plan assets at the end of the period) 0 -
Net liability / (asset) at the end of the period 861.16 953.20
(Interest Income) 0 -
Net interest cost for next year 60.72 63.35
j) Expenses recognized in the statement of profit or loss for next year

( ₹ in Millions )
March 31, 2023 March 31, 2022
Net interest cost 60.72 63.35
Expenses recognized 129.47 122.54
123
k) Maturity analysis of the benefit payments

Projected benefits payable in future years from the date of reporting ( ₹ in Millions )
March 31, 2023 March 31, 2022
1st following year 159.28 199.72
2nd following year 95.61 80.33
3rd following year 128.78 133.63
4th following year 137.06 127.17
Sum of years 6 to10 335.76 405.87
l) Sensitivity analysis:increase/(decrease)
( ₹ in Millions )
March 31, 2023 March 31, 2022
Defined benefit obligation on current assumptions 861.16 953.20
Delta effect of +1% change in rate of discounting (32.87) (39.86)
Delta effect of -1% change in rate of discounting 36.11 44.00
Delta effect of +1% change in rate of salary increase 34.81 43.11
Delta effect of -1% change in rate of salary increase (32.77) (40.02)
Delta effect of +1% change in rate of employee turnover 2.60 2.52
Delta effect of -1% change in rate of employee turnover (2.95) (2.84)
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.The sensitivity analysis
presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely
that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Notes:
Gratuity is payable as per company’s scheme as detailed in the report. Actuarial gains/losses are recognized in
the period of occurrence under Other Comprehensive Income (OCI).All above reported figures of OCI are gross
of taxation. Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with
the industry practice considering promotion and demand & supply of the employees. Maturity Analysis of Benefit
payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as
mentioned above for forseeable future of next 10 years. Average Expected Future Service represents Estimated
Term of Post - Employment Benefit Obligation. Weighted Average Duration of the Defined Benefit Obligation is the
weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total
present value. Any benefit payment and contribution to plan assets is considered to occur end of the year to depict
liability and fund movement in the disclosures.
ii) Post-retirement medical benefits:The company has a post-retirement medical benefit scheme under which
medical benefits are provided to retired employees and their spouse.
124
Disclosure statement as per Ind AS of post-retirement medical benefits

March 31, 2023 March 31, 2022
Type of benefit Medical Medical
Country India India
Reporting currency INR INR
Reporting standard Indian Accounting Indian Accounting
Standard 19 (Ind AS Standard 19 (Ind AS
19) 19)
Funding status Unfunded Unfunded
Starting period April 01,2022 April 01,2021
Date of reporting March 31,2023 March 31,2022
Period of reporting 12 Months 12 Months
a) Assumptions (previous year)

March 31, 2022 March 31, 2021
Medical cost inflation 4.00% 4.00%
Rate of employee curnover 2.00% 2.00%
Mortality Mortality
(2006-08) Ultimate (2006-08) Ultimate
Mortality rate after employment Indian Individual Indian Individual
AMT (2012-15) AMT (2012-15)
b) Assumptions (current year)

March 31, 2023 March 31, 2022
Medical cost inflation 4.00% 4.00%
Rate of employee turnover 2.00% 2.00%
Mortality Mortality
2012-14 (Urban) 2012-14 (Urban)
Mortality rate after employment Indian Individual Indian Individual
AMT (2012-15) AMT (2012-15)
c) Change in the present value of defined benefit obligation

( ₹ in Millions )
March 31, 2023 March 31, 2022
Present value of benefit obligation at the beginning of the period 1,411.45 1553.51
Interest cost - 107.35
Current service cost - 12.18
Liability transferred in/acquisitions - -
125
March 31, 2023 March 31, 2022
(Liability transferred out/divestments) - -
(Gains) / losses on curtailment - -
(Liabilities extinguished on settlement) - -
(Benefit paid directly by the employer) - -
(Benefit paid from the fund) - -
The effect of changes in foreign exchange rates - -
Actuarial(gains)/losses on obligations - due to change in demographic - (0.15)
assumptions
Actuarial(gains)/losses on obligations - due to change in financial - (78.45)
assumptions
Actuarial (gains) / losses on obligations - due to experience - (182.99)
d) Change in the fair value of plan assets

March 31, 2023 March 31, 2022
Fair value of plan assets at the beginning of the period - -
Interest income - -
Contributions by the employer - -
Expected contributions by the employees - -
Assets transferred - -
(Assets transferred out/divestments) - -
(Benefit paid from the fund) - -
(Assets distributed on settlements) - -
Effects of asset ceiling - -
The effect of changes in foreign exchange rates - -
Return on plan assets, excluding - -
e) Amount recognized in the balance sheet

( ₹ in Millions )
March 31, 2023 March 31, 2022
Present value of benefit obligation at the beginning of the period (1411.45) (1411.45)
Fair value of plan assets at the end of the period - -
Net (liability) / asset recognized in the balance sheet (1411.45) (1411.45)
f) Net interest cost for current year

( ₹ in Millions )
March 31, 2023 March 31, 2022
Present value of benefit obligation at the beginning of the period 1,411.45 1553.51
Fair value of plan assets at the end of the period - -
Net liability / (asset) at the beginning 1,411.45 1553.51
Interest cost - 107.35
(Interest income) - -
Net interest cost for current period - 107.35
126
g) Expenses recognized in the statement of profit or loss for current year

( ₹ in Millions )
March 31, 2023 March 31, 2022
Current service cost - 12.17
Net interest cost - 107.35
(Gains) / losses on curtailments and settlements - -
Net effect of changes in foreign exchange rates - -
Expenses recognized - 119.52
h) Expenses recognized in the other comprehensive income (OCI) for current

( ₹ in Millions )
March 31, 2023 March 31, 2022
Actuarial (gains) / losses on obligation for the period - (261.59)
Return on plan assets, excluding interest income - -
Change in asset ceiling - -
Net (income) / expense for the period recognized in OCI - (261.59)
i) Balance sheet reconciliation

( ₹ in Millions )
March 31, 2023 March 31, 2022
Opening net liability 1,411.45 1553.52
Expenses recognized in statement of profit or loss - 119.52
Expenses recognized in OCI - (261.59)
Net liability / (asset) transfer in - -
Net (liability) /asset transfer out - -
(Benefit paid directly by the employer) - -
(Employer’s contribution) - -
Net liability / (asset) recognized in the balance sheet 1411.45 1411.45
j) Other details
( ₹ in Millions )
March 31, 2023 March 31, 2022
No of active members - 869
No.of retired employees - 1303
Weighted average duration of the projected benefit obligation - 12
Average future term - 30
Projected benefit obligation 1411.45 1411.45
Prescribed contribution for next year (12 Months) - -
127
k) Maturity analysis of the benefit payments: from the employer

( ₹ in Millions )
March 31, 2023 March 31, 2022
Projected benefits payable in future years from the date of reporting
1st following year 64.63 64.63
2nd following year 64.54 64.54
3rd following year 71.59 71.59
Sum of years 6 to 10 431.80 431.80
Sensitivity analysis: increase / (decrease)

( ₹ in Millions )
March 31, 2023 March 31, 2022
Projected benefit obligation on current assumptions 1411.45 1411.45
Delta effect of + 1% change in rate of discounting - (138.99)
Delta effect of - 1 % change in rate of discounting - 168.66
Delta effect of +1 % change in medical cost inflation - 172.90
Delta Effect of - 1% Change in Medical Cost inflation - 144.38
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.The sensitivity analysis
presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that
the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognized in the balance sheet.There was no change in
the methods and assumptions used in preparing the sensitivity analysis from prior years.
Notes
The company was providing the medical expenses payable to retired employees of Air India on the basis of
Acturial valuation made by the Acturial Valuer, however after the disinvestment of Air India, it was decided
by AIAHL being a holding company of the AIASL that all retired employees will contribute the amount to
CGHS and accordingly they will avail the medical benefits directly from CGHS and therefore company has
not done the acturial valuation during the year.
Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All
above reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry
practice considering promotion and demand & supply of the employees.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in
respective year for members as mentioned above for forseeable future of next 10 years.
Average Future Term represents Estimated Term of Post - Employment Benefit Obligation.
Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where
weights are derived from the present value of each cash flow to the total present value.
Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund
movement in the disclosures.
128
There was curtailment in the scheme where in liability of the majority of the employees were taken over by the
government resulting in curtailment.
The payments made doesn’t commensurate witht the scheme valued at the start of the year.
(C) Other long term employee benefits
i. Compensated Absence
The Company has a policy on compensated absences with provisions on accumulation and encashment by the
employees during emloyment or on separation from the company due to death, retirement or resignation.The
expected cost of compensated absence is determined by actuarial valuation performed by an independent actuary
at the balance sheet date using projected unit credit method.
ii. Bonus
Bonus is payable to all employees as per the provisions of the Payment of Bonus Act, 1965 and the provision for the
same has been made in the current financial year.
46. Income taxes

(a) Income tax recognised in Statement of Profit and loss ( ₹ in Millions )
Particulars Year Ended Year Ended
March 31, 2023 March 31, 2022
Current tax expense (A)
Current year 235.77 -
Short/(excess) provision of earlier years (B)
Short provision for tax for earlier years - 24.62
Deferred tax expense (C)
Origination and reversal of temporary differences 45.94 (197.30)
Tax expense recognised in the income statement (A+B+C) 281.71 (172.68)
(b) Income tax recognised in other comprehensive income ( ₹ in Millions )

March 31, 2023 March 31, 2022
Before Tax Net of tax Before tax Tax (expense)/ Net of tax
tax (expense)/ benefit
benefit
Items that will not be
reclassified to profit or
loss
Remeasurement of (3.92) - (3.92) 305.92 77.00 228.92
employee benefits
obligations
(3.92) - (3.92) 305.92 77.00 228.92
(c) Reconcilation of income tax expense applicable to accounting profit before tax at the statutory income
tax rate to recognised income tax expense for the year indicated are as follows
( ₹ in Millions )
March 31, 2023 March 31, 2022
Profit before tax 972.97 (112.73)
Enacted tax rate in India 25.168% 25.168%
Expected income tax expense at statutory rate (A) 235.77 -
Tax effect of
129

March 31, 2023 March 31, 2022
Expenses not deductible in determining taxable profits - -
Excess provision of tax for earlier years - 24.62
Income tax recognized in the statement of profit and loss 235.77 24.62
Impact of deferred tax 45.94 (197.30)
Income tax recognized in the statement of profit and loss (including 281.71 (172.68)
deferred tax)
(d) Deferred tax assets/(liabilities)

The following is the analysis of deferred tax assets / (liabilities) balances presented in the balance sheet:
( ₹ in Millions )
March 31, 2023 March 31, 2022
Deferred tax liabilities (189.84) (166.59)
Deferred tax assets 1,320.19 1,251.00
Total 1,130.35 1,084.41
Significant component of deferred tax assets / (liabilities) and movement during the year are as under:
( ₹ in Millions )
Particulars As at For the year ended As at
March 31, 2022 March 31, 2022 March 31, 2023
Recognized Recognized
through P&L through OCI
Deferred tax balance in relation to
Deferred tax asset of earlier years - - - -
Property, plant & equipment (166.59) (23.25) - (189.84)
Provision for employee benefits 710.96 (11.19) - 699.77
Provision for inventories - 8.34 - 8.34
Expected credit loss 262.04 186.32 - 448.36
Disallowance under section 43B and 40(a) - - - -
(ia) of Income tax Act, 1961
Lease balances - - - -
Unabsorbed losses 278.00 (114.29) - 163.72
Total 1,084.41 45.94 - 1,130.35
( ₹ in Millions )
Particulars As at For the year ended As at
April 1, 2021 March 31, 2022 March 31, 2022
Recognized Recognized
through P&L through OCI
Deferred tax balance in relation to
Deferred tax asset of earlier years 939.37 (939.37) - -
Property, plant & equipment (151.69) (14.90) - (166.59)
Provision for employee benefits (193.29) 981.25 (77.00) 710.96
Expected credit loss 241.30 20.74 - 262.04
Disallowance under section 43B and 40(a) 127.56 (127.56) - -
(ia) of Income tax Act, 1961
Lease balances 0.86 (0.86) - -
Unabsorbed losses - 278.00 - 278.00
Total 964.11 197.30 (77.00) 1,084.41
130
The company is creating deferred tax assets considering that company is hopeful of showing improved performance
in future and accordingly, has reasonable certainty that deferred tax asset recognized will be realized against future
taxable profits.
47. Related party disclosures

Disclosure of the names and designations of the related parties as required by the Ind AS 24 “Related Party
Disclosures”, during the year 2022-23:
A. List of related parties : (As identified by the management), unless otherwise stated
i. In terms of Ind AS 24, following are related parties which are government related entities i.e. significantly
controlled and influenced entities (Government of India) :
Sr. Name of the company Relationship
No.
1 AI Assets Holding Limited (w.e.f. January 13, 2022) Holding company
ii. List of Fellow Subsidiary Companies

Sr. Name of Company Relationship
No.
1 Hotel Corporation of India Limited (HCI) Fellow subsidiary company
2 Air India Engineering Services limited (AIESL) Fellow subsidiary company
3 Alliance Air Aviation Limited (AAAL) Fellow subsidiary company
B. Key Managerial Personnel

Sr. Name of key managerial personnel Designation
No.
1 Shri. Vikram Dev Dutt Chairman
(ceased as CMD effective February 28, 2023
2 Shri. Satyendra Kumar Mishra Chairman
(appointed as CMD effective March 01, 2023
3 Shri. Rambabu Ch. Chief Executive Officer
4 Shri Satya Narayan Panda Chief Financial Officer
(ceased as CFO & KMP w.e.f. December 31, 2022)
5 Wing Cdr. Sandeep Malhotra (retd) Chief Financial Officer
(Appointed as CFO w.e.f. December 28, 2022
& KMP w.e.f. on February 09, 2023)
6 Smt.Shashi Bhadoola Company Secretary
C. Transaction during the year ended and balance outstanding with related parties are as follows -
i. No loans or credit transactions were outstanding with directors or officers of the company or their relatives at the
end of the year.
ii. In terms of Ind AS 24, following are the disclosure requirements related to transactions with certain government
related entities i.e. significantly controlled and influenced entities (Government of India) and other than government
related parties:
(i) Disclosure in respect of transaction with related parties: (₹ in Millions)
Particulars Nature of transaction Year ended Year ended
March 31, 2023 March 31, 2022
Air India Engineering Services Revenue from operations
Limited Manpower services/ cabin cleaning 204.08 238.16
Interest on outstanding recoverable 21.87 68.33
Expenditure
Headset services 12.42 0.06
131
(₹ in Millions)
Particulars Nature of transaction Year ended Year ended
March 31, 2023 March 31, 2022
Airline Allied Service Limited Revenue from operations
(Alliance Air) Ground handling revenue 281.49 191.05
Supply of manpower services 0.59 0.24
Interest on outstanding recoverable 94.80 70.18
Expenditure
Staff on duty expenditure 1.25 0.77
Hotel Corporation of India Limited Expenditure
(HCIL-Centaur) Staff hotel expenses 7.52 2.19
Festive expenses 2.27 -
Event expenses 1.93 -
AI Assets holding Limited (AIAHL) Revenue from operations
Manpower services 1.52 -
Expenditure
Reimbursement of cost 6.38
Interest on outstanding payable 35.69 6.09
(ii) Outstanding balances ( ₹ in Millions )

Name of the party Receivable/payable As at As at
March 31, 2023 March 31, 2022
AI Assets Holding Limited Payable (434.86) (392.65)
Air India Engineering Services Payable (6.62) 514.54
Limited
Alliance Air Aviation Limited Receivable 1,290.47 911.13
Hotel Corporation of India Limited Payable (5.58) (2.61)
(HCIL-Centaur)
D. Compensation to key management personnel: ( ₹ in Millions )

March 31, 2023 March 31, 2022
Short-term employee benefits 7.48 6.19
Post-employment benefits - -
Other long-term benefits - -
Termination benefits - -
Total compensation to key management personnel 7.48 6.19
As the future liability for post-employment, other long-term and termination benefits are provided on actuarial basis
for the company as a whole, the amount pertaining to individual is not ascertainable and therefore not included
above.
132
48. Financial instruments – Fair values and risk management

A. Accounting classification and fair values
The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is
a reasonable approximation of fair value.
( ₹ in Millions )
Financial assets and Note no. Non- Current Total Routed through profit Routed through OCI Carried at Total
liabilities as at March 31, current & loss amortised amount
2023 Level Level Level Total Level Level Level Total cost
1 2 3 1 2 3
Financial assets
Trade receivables 8 - 4,071.44 4,071.44 - - - - - - - - 4,071.44 4,071.44
Other financial assets 3 & 11 1,299.16 100.96 1,400.12 - - - - - - - - 1,400.12 1,400.12
Cash and cash equivalents 9 - 520.43 520.43 - - - - - - - - 520.43 520.43
Bank balances other than 10 - 1.73 1.73 - - - - - - - - 1.73 1.73
cash and cash equivalents
Total financial assets 1,299.16 4,694.56 5,993.72 5,993.72 5,993.72
Financial liabilities
Lease liabilities 15 - - - - - - - - - - - - -
Trade payables 22 - 1,621.64 1,621.64 - - - - - - - - 1,621.64 1,621.64
Other financial liabilities 16 & 19 72.48 1,185.56 1,258.04 - - - - - - - - 1,258.04 1,258.04
Total financial liabilities 72.48 2,807.20 2,879.68 - - - - - - - - 2,879.68 2,879.68
liabilities as at March 31, current & loss amortised amount
2022 Level Level Level Total Level Level Level Total cost
1 2 3 1 2 3
Financial assets
Other financial assets 3 & 11 9.17 1.13 10.30 - - - - - - - - 10.30 10.30
Total financial assets 9.17 4,338.30 4,347.47 - - - - - - - - 4,347.47 4,347.47
Lease liabilities 15 - - - - - - - - - - - - -
Trade payables 22 - 1,458.24 1,458.24 - - - - - - - - 1,458.24 1,458.24
Other financial liabilities 16 & 19 64.51 990.53 1,055.04 - - - - - - - - 1,055.04 1,055.04
liabilities as at April 1, 2021 current & loss amortised amount
Level Level Level Total Level Level Level Total cost
1 2 3 1 2 3
Financial assets
Other financial assets 3 & 11 12.71 95.74 108.45 - - - - - - - - 108.45 108.45
Total financial assets 12.71 3,871.13 3,883.84 - - - - - - - - 3,883.84 3,883.84
Lease liabilities 15 - 35.19 35.19 - - - - - - - - 35.19 35.19
Trade payables 22 - 983.48 983.48 - - - - - - - - 983.48 983.48
Other financial liabilities 16 & 19 52.17 897.70 949.87 - - - - - - - - 949.87 949.87
Fair value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable
and consist of the following three levels:
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Inputs are other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. prices) or indirectly
(i.e. derived from prices).
133
Level 3: Inputs are not based on observable market data unobservable inputs. Fair value are determined in whole or in part using a valuation
model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are
they based on available market data.
B. Financial risk management objective and policies:

The company has exposure to following risks arising from financial instruments:
i. Credit risk
ii. Liquidity risk
iii. Market risk – a. Foreign currency and b. Interest rate
The company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial
liabilities is to finance receivable, and cash and cash equivalents that derive directly from its operations.
The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management oversees
the management of these risks. A board of directors reviews and agrees policies for managing each of these risks,
which summarized below:
(i) Credit risk management
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 obligation. Customer credit risk is managed centrally by the Company and subject to established
policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed
based on an individual credit limits defined in accordance with the assessment.
The maximum exposure to the credit at the reporting date is primarily from trade receivables. Trade receivables are
typically unsecured and are derived from revenue earned from customers. The company does monitor the economic
environment in which it operates. The company manages its credit risk through credit approvals, establishing credit
limits and continuously monitoring credit worthiness of customers to which the Company brands credit terms in the
normal course of the business.
Trade receivables consist of number of customers from the same aviation industry. Significant of outstanding is from
its group Companies (i.e. 60%) and for which the management expects no credit risk. Accordingly, no expected credit
loss has been considered on receivables from group companies. Further, receivables from government companies
is also considered as fully recoverable and hence, no provisioning considered on such receivables.
Apart from group company and government receivables, in respect of other parties there is no significant concentration
of credit risk. No single customer accounted for 10% or more of revenue in any of the years indicated. The outstanding
trade receivables are regularly monitored, and appropriate action is taken for collection of overdue receivables.
As per simplified approach, the company makes provision of expected credit losses on trade receivables using a
provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date
wherever outstanding is for longer period and involves higher risk. Our historical experience of collecting receivables
indicate a low credit risk. Hence, trade receivables are considered to be a single class of financial assets.
As per policy receivables are classified into different buckets based on the overdue period ranging from 6 months –
one year to more than one year and one to two years.
Based on the business environment in which the company operates, management considers that the trade receivable
are in default (credit impaired) if the payments are past due. There provisioning norms computed based on the
proportion computed by taking ratio of outstanding receivables for more than 36 months. According ECL is provide
using following rates:
Bucket As at As at As at
All parties including government company and group company
(a) Past due not exceeding 6 months 4.73% 3.40% NA
(b) Past due exceeding 6 months but not exceeding 1 year 9.46% 6.80% NA
(c) Past due exceeding 1 year but not exceeding 3 years 18.93% 13.60% NA
(d) Past due exceeding 3 years 100% 100% NA
134
Government company NA NA 27.19%

Group company NA NA 0.00%
Other parties past due upto three years NA NA 27.19%
Other parties past due more than three years NA NA 100.00%
Specific credit risk impairment on individual basis 100% 100% 100.00%
The movement in allowance for Expected credit loss is as follows:

( ₹ in Millions )
Balance at the beginning of the year 1,009.37 958.75 521.93
Add :Allowance for trade receivable which have significant 750.06 231.72 436.82
increase in credit risk
Less :Specific credit risk impairment on individual basis - (181.10) -
Balance as at the end of the year 1,759.43 1,009.37 958.75
##
The company has not provided for impairments of financial assets (trade and other contractual receivables)
using provision matrix in accordance with the requirements of Ind AS – 109 “Financial Instruments”. During
the year, the company has computed cumulative effect of expected credit loss as on March 31, 2023 applying
simplified approach for trade and other contractual receivables from the parties amounting to ₹ 1,759.43 million
(previous year ₹ 1009.37 million).
48. Financial instruments – Fair values and risk management (continued..)

(ii) Liquidity risk management
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligation associated with its Financial
liabilities that are settled by delivering cash or another Financial assets.
The company’s approach to manage Liquidity is to have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed circumstances, without incurring unacceptable losses or risking damage to the
Company’s reputation.
The company believes that its liquidity position, including total cash (including bank deposit lien and excluding
interest accrued but not due) anticipated future internally generated funds from operations, and its fully available,
revolving undrawn credit facility of ₹ Nil (March 31, 2022: Nil; April 1, 2021: Nil) will enable it to meet its future known
obligation in the ordinary course of business. However, if a liquidity needs were to arise, the company believes it has
access to financing arrangement, value of unencumbered assets, which should enable it to meet its ongoing capital,
operating, and liquidity requirement.
The company’s liquidity management process as monitored by management includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirement can be met.
- Maintaining rolling forecast of the Company’s liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.
The following are the remaining contractual maturities of financial liabilities at the reporting data. The contractual
maturity is based on the earliest date on which the company may be required to pay:
135
Exposure to liquidity risk

As at March 31, 2023
( ₹ in Millions )
Particulars Carrying Contractual cash flows
amount Upto 1 year 1-5 years More than 5 years Total
Financial assets
Non-current
Other financial assets 1,299.16 1,299.16 - - 1,299.16
Current
Trade receivable 4,071.44 4,071.44 - - 4,071.44
Cash & cash equivalents and other bank 522.17 522.17 - - 522.17
balances
Other financial assets 100.96 100.96 - - 100.96
As at March 31, 2022

( ₹ in Millions )
Financial assets
Non-current
Current
balances
As at April 1, 2021
( ₹ in Millions )
Financial assets
Non-current
Current
balances
Non-current
Lease liabilities - - - - -
Other financial liabilities 52.17 52.17 - - 52.17
Current
Lease liabilities 35.19 35.19 - - 35.19
Trade payables 983.48 983.48 - - 983.48
Other financial liabilities 897.70 897.70 - - 897.70
136
48. Financial instruments – Fair values and risk management (continued..)

(iii) Market risk
Market risk is that the fair value and future cash flows of financial instrument will fluctuate because of changes in
market prices. Market risk comprises two type of risk namely: currency risk and interest rate risk. The objective
of market risk management is to manage and control market risk exposure within acceptable parameters, while
optimizing the return.
(a) Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The company is not exposed to any borrowings.
(b) Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. The company is exposed to the effects of fluctuation in the prevailing foreign currency rates
on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuation between the
functional currency and other currencies from the company’s operating, investing and financing activities.
Exposure to foreign currency risk
The summary of quantitative data about the company’s exposure to currency risk, as expressed in Indian Rupees,
as at March 31,2023; as at March 31, 2022; are as below:
( USD and ₹ in Millions )
Particulars As at March 31, 2023 As at March 31, 2022 As at April 1, 2021
USD INR USD INR USD INR
Financial assets
Current
Trade receivable 3.94 323.50 1.65 125.37 6.23 455.25
Cash & cash equivalents and 0.00 - 0.01 0.17 12.59
bank balances
Total financial assets 3.94 323.50 1.65 125.38 6.40 467.84
Current
Trade payables 0.02 1.84 0.02 1.71 - -
Other financial liabilities - - - - 0.61 44.70
Total financial liabilities 0.02 1.84 0.02 1.71 0.61 44.70
Sensitivity analysis
The following table details the company’s sensitivity to a 5% increase and decrease in the INR against the relevant
foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive
number below indicates an increase in profit or equity where INR depreciates 5% against the relevant currency. For
a 5% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and
the balances below would be negative.
( ₹ in Millions )
Particulars Increase (Decrease)
As at As at As at April As at As at As at April 1,
March 31, March 31, 1, 2021 March 31, March 31, 2021
2023 2022 2023 2022
Receivable
USD/INR 16.17 6.27 23.39 (16.17) (6.27) (23.39)
Payable
USD/INR (0.09) (0.09) (2.24) 0.09 0.09 2.24
137
49. Ratios
Current ratio ( ₹ in Millions )
Particular As at As at
MArch 31, 2023 March 31, 2022
Total current assets 4,862.28 4,436.01
Total current liabilities 4,023.12 3,223.13
Ratio 1.21 1.38
% change -12.19% -14.91%
Debt equity ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Total debt - -
Shareholder’s equity 4,230.70 3,451.40
Ratio - -
% change - -
Debt service coverage ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
EBIT - -
Total debt - -
Ratio - -
% change - -
Return on equity ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Net profit for the year 783.14 59.96

Average stakeholders’ equity 4,230.70 3,451.40
Ratio 18.51% 1.74%
% change 965.61% -102.79%
Reason Due to net profit earned during the year as
compared to net loss during the previous
year
Inventory turnover ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Cost of goods sold 172.29 74.72
Average inventory 41.06 60.71
Ratio 419.66 123.09
% change 240.94% 94.73%
Reason Due to increase in consumption of spares
of during the year as compared to previous
year
138
Trade receivable turnover ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Revenue from operations 8,944.73 6,988.51
Average trade receivables 3,785.38 3,614.83
Ratio 2.36 1.93
% change 22.23% 213.93%
Net capital turnover ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Revenue from operations 8,944.73 6,988.51
Working capital 839.16 1,212.88
Ratio 10.66 5.76
% change 85.00% 197.18%
Reason Due to increase in revenue as compared to
previous year
Net profit ratio ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Profit for the year 783.14 59.96
Revenue from operation 8,944.73 6,988.51
Ratio 8.76% 0.86%
% change 920.54% -101.27%
Reason Due to increase in profit earned as compared
to previous year
Return on capital employed ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Profit before exceptional item, finance cost & tax 1,122.18 260.80
Capital employed 6,716.72 5,945.00
Ratio 16.71% 4.39%
% change 280.85% -112.09%
Reason Due to increase in profit earned as compared
to previous year
Return on investment ( ₹ in Millions )

MArch 31, 2023 March 31, 2022
Income from investment Nil Nil
Closing balance of investment Nil Nil
Ratio Nil Nil
% change Nil Nil
Reason No investment made by company
139
1. Total debt = Non-current borrowings + Current borrowings

2. Earnings before interest & tax (EBIT) = Profit before exceptional item & tax + Finance costs
3. Cost of goods sold = Cost of materials consumed + Purchases of stock-in-trade + Changes In inventories of
finished goods and work-in-progress
4. Working capital = Total current assets - Total current liabilities
5. Capital employed = Total equity + Total non current liabilities
6. Total equity = Total equity excluding non controlling Interest (less) / add ( deferred tax assets) / deferred tax
liability (net)
50. Following are the details of foreign currency earned and expended by the company during the
financial year
( ₹ in Millions )
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
Foreign exchange earnings 1,960.48 1,023.57
Foreign exchange expended (for import payments) (3.03) (156.64)
Net foreign exchange earnings 1,957.45 866.93
51. Corporate social responsibility

Pursuant to the requirement of Section 135 of the Companies Act, 2013, CSR committee has been formed by the
Company. The primary function of the CSR Committee is to assist the Board of Directors in formulating a CSR Policy
and review the implementation and progress of the same from time to time. The CSR Policy focuses on making
positive contribution to the society through high impact, sustainable programmes.
(₹ in Millions)
March 31, 2023 March 31, 2022
Amount required to be spent by the company during the year - -
Amount of expenditure incurred - 23.66
Nature of CSR activities
a) Construction / acquisition of any assets - -
b) On purpose other than 1 above - 23.66
Shortfall at the end of the year / period - -
Total of previous years shortfall - -
Reason for shortfall - -
Nature of CSR activities : Contribution to PM care fund
52. Segment reporting

The Chairman of the company has been identified as the Chief Operating Decision Maker (CODM) as defined by
Ind AS 108, Operating Segments. The CODM evaluates the company’s performance and allocates resources based
on an analysis of various performance indicators, however the company is primarily engaged in only one segment
viz., “Ground handling services” and that all of the operations are in India. Hence the company does not have any
reportable Segments as per Indian Accounting Standard 108 “Operating Segments”.
Disclosure of customer with more than 10% of revenue:
140
(₹ in Millions)
Particular For the year ended For the year ended
March 31, 2023 March 31, 2022
Air India Limited 2,845.63 1,696.43
53. Penalties under Dispute

During the year 2022-23, M/s Air India Limited (AI) and M/s Alliance Air Aviation Limited (AAAL) has raised an invoice
for an amount of Rs.121.41 million and Rs 1.61 million respectively towards penalty. However, AIASL is of the strong
opinion that the penalties imposed by Air India and Alliance Air are unilateral as they have not provided jointly signed
Exception Report Format (ERF) in terms of Clause 36.2 of Master Service Agreement entered with AI and AAAL.
Hence, the same has not been provided in Books of accounts.
54. IND AS 116 clarificatory note on not considering airport spaces for lease liability
Following the recognition exemption available under Ind AS 116, regarding short term leases, low value assets and
those assets which were not covered under the previous Ind AS 17, the company has availed the same exemptions
for the implementation of the new Ind AS 116.
In respect of other leases for various commercial premises, (with option to purchase/renew but title of the same may
or may not eventually be transferred) which are scattered at various locations/stations/regions, there is a foreclosure
clause in the contract wherein it is cancellable by providing notice period of 90 days by either side.
Pending evaluation these the company has not considered as ROU under Ind AS 116 , regarding short term leases,
low value assets and those assets which were not covered under the previous Ind AS 17, the company has availed
the same exemptions for the implementation of the new Ind AS 116.
55. Additional regulatory information required by Schedule III

(i) Details of benami property held
No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) Wilful defaulter
The company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(iii) Compliance with number of layers of companies
The company is in compliance with number of layers of companies.
(iv) Compliance with approved scheme(s) of arrangements
The company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(v) Utilisation of borrowed funds and share premium
(1) The company has not advanced or loaned or invested funds to any other persons or entities, 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.
(2) The company has not received any fund from any persons or entities, 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.
141
(vi) 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.
(vii) 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.
(viii) Title deeds of immovable properties not held in name of the company
Company does not have any immovable property.
(ix) Transactions with stuck off companies
There are no transactions with the stuck off companies
56. Code on social security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by
the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft
rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders
which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once
the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the
Code becomes effective and the related rules to determine the financial impact are published.
57. Previous years figures
Previous year figures have been regrouped/reclassified where necessary, to conform with current period’s presentation
for the purpose of comparability.

Sd/- Sd/- Sd/-

Sd/- Sd/- Sd/-
Place: New Delhi
142

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  

4. Management Discussion & Analysis Report 22

5. Comments of the Comptroller & Auditor General of India 57

6. Independent Auditors Report 61

7. Balance Sheet as at 31 March 2023 81

9. Statement of Changes in Equity for the Year ended 31 March 2023 83

Shri Satyendra Kumar Mishra Chairman

Chief Executive Officer

Chief Financial Officer

Registrar And Transfer Agent

Operational Key Achievements

Region Air Alliance Air India Third Non- HAJ Total

SC/ST/OBC – Number of employees as on 31 March 2023

DISCLOSURE UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE

Name of the Director Position Held in the Category of the Director

INDEPENDENT DIRECTORS AND DECLARATION

For & on behalf of the Board

Place: New Delhi

MANAGEMENT DISCUSSION & ANALYSIS REPORT

1. ANALYSIS OF FINANCIAL PERFORMANCE

 AIASL is continuing to facilitate SESF Operations both in India and abroad.

REPORT ON CORPORATE GOVERNANCE

1. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

Shri Padam Lal Negi - Nominee Director

Smt. Parama Sen - Nominee Director

Name of the Academic Attendance Details of Memberships held in

Name of the Academic Attendance Details of Memberships held in

Indian Renewable Energy

Pawan Hans Ltd.,

Solar Energy Corporation

Airport Authority of India

Name of the Academic Attendance Details of Memberships held in

 To examine the financial statements and the auditors’ report thereon;

Annual General Meetings (AGM) during the last three years:

DECLARATION BY CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER

For AI Airport Services Limited

(d) Amount spent in Administrative Overheads: NIL

For AI Airport Services Limited

Category-wise Share Holding

C) Change in Promoters’ Shareholding (please specify, if there is no change):

E) Shareholding of Directors and Key Managerial Personnel:

V. INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

B. Remuneration to other directors-Not applicable

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

For AI Airport Services Limited

Alliance Air Aviation Limited Revenue from Operation 01.04.2022-

Hotel Corporation of India Expenditure 01.04.2022-

For AI Airport Services Limited

SECRETARIAL AUDIT REPORT

For Amit Agrawal & Associates

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA

For on behalf of the

MANAGEMENT REPLY ON THE COMMENTS ON THE COMPTROLLER AND

CAG Comments for FY 22-23 Management’s Reply

INDEPENDENT AUDITORS’ REPORT

Management’s Responsibility for the Financial Statements

For S. Mann & Co

Place: New Delhi