The dawn of 5 Star flying The dawn of 5 Star flying - Kingfisher Airlines

The dawn of
5 Star flying

C O N T E N T S
Report of the Directors 2
Corporate Governance Report 18
Management Discussion & Analysis Report 31
Auditors’ Report 36
Balance Sheet 40
Profit and Loss Account 41
Schedules 42
Cash Flow Statement 72
Accounts of the Subsidiary 75

BOARD OF DIRECTORS Dr. Vijay Mallya, Chairman & CEO
Capt. G. R. Gopinath, Vice Chairman
Mr. S. R. Gupte
Mr. A. K. Ravi Nedungadi
Capt. K. J. Samuel
Mr. Vijay Amritraj
Mr. Anil Kumar Ganguly
Mr. Piyush G. Mankad
Dr. Naresh Trehan
Diwan Arun Nanda
Mr. Ghyanendra Nath Bajpai
COMPANY SECRETARY Mr. N. Srivatsa
CHIEF FINANCIAL OFFICER
AUDITORS
REGISTERED OFFICE
Mr. A. Raghunathan
M/s. B. K. Ramadhyani & Co.
Chartered Accountants
4B, 4 th Floor, 68, Chitrapur Bhavan,
8 th Main, 15 th Cross, Malleswaram,
Bangalore – 560 055
UB Tower, Level 12, UB City,
24, Vittal Mallya Road,
Bangalore – 560 001
1

2
To The Members,
Your Directors present the 14th Annual Report along with
the Audited Accounts of your Company for the year ended
March 31, 2009.
As Members are aware, as already intimated in the Directors’
Report for the previous financial period, the financial
statements for the year ended March 31, 2009, pertains
to the consolidated commercial airline entity consequent
upon the demerger and transfer of the Commercial Airline
Division Undertaking of the erstwhile Kingfisher Airlines
Limited into your Company with an Appointed Date of
April 1, 2008.
Operations
Your Company’s operations during the year ended March
31, 2009 have resulted in:
Year ended
March 31,
2009
(Rs. in millions)
Nine month
period ended
March 31, 2008
Gross Income 55775 15454
Earnings before financial
charges, lease rentals,
depreciation & amortization
and taxes (EBITDAR)
1352 (2379)
Add/Less: Depreciation &
Amortisation
1716 366
Lease Rentals 11851 3547
Financial charges 6962 779
Loss before taxes (19177) (7071)
Provision for taxes
(incl. FBT)
5464 (4945)
Net Profit/(Loss) from
ordinary activities after tax
(13173) (2126)
Extraordinary items (2375) 245
Net loss after tax (16088) (1881)
Scheduled Airline Operations
Your Company is the largest player in the Indian domestic
aviation sector and during the year under review had the
widest reach covering more destinations and carrying more
passengers than any other domestic carrier.
During the year under review, your Company carried
approximately 10.9 million passengers, with a fleet of 77
aircraft, a schedule of 412 domestic and 8 international
Report of the Directors
flights daily and a route network covering 70 domestic and
2 international destinations.
Further, since inception till March 31, 2009, your Company
has carried approximately 28.4 million passengers.
Your Company returned 8 Airbus A320 aircraft and 3 ATR-
42 aircraft during the year under review consequent upon
the route rationalization program initiated with a view to
maximize operational synergies and cost savings pursuant to
the Composite Scheme of Arrangement between erstwhile
Kingfisher Airlines Limited, erstwhile Deccan Aviation
Limited (your Company) and Deccan Charters Limited (“the
Scheme”), approved by the Hon’ble High Court of Karnataka
vide its Order dated June 16, 2008.
During the year under review, the severe recession in
global economies worldwide adversely impacted the
global aviation industry. The domestic aviation industry
witnessed significant capacity contraction by all major
airline operators. However, rising operating costs, fall in
passenger traffic and revenues as well as stiff competition
among all operators is putting pressure on yields resulting
in operating losses during the year under review. The
continued exorbitant rates of taxes on Aviation Turbine
Fuel in India also adversely affected the domestic aviation
industry. Avenues for funding continue to be blocked. The
unfortunate terrorist attacks on November 26, 2008 in
Mumbai, further affected air traffic into and from India.
Dialogue with the Government of India is underway for
relief measures to revive the industry. Individual items of
the financial statements are more fully discussed in the
section titled “Management Discussion and Analysis”.
The Company continues to offer the following classes of
service:
Kingfisher First – Premium Business class of service
Kingfisher Class – Premium Economy class of service
Kingfisher Red – Low fare basic class of service
Your Company commenced international operations with
the launch of the non-stop service between Bangalore and
London Heathrow Airport on September 3, 2008. However,
for commercial reasons, your Company is discontinuing
services on this route from September 15, 2009.
The Company launched the non-stop daily service between
Mumbai to London Heathrow Airport on January 5, 2009,

Report of the Directors (Contd.)
on wide body Airbus A330-200 aircraft. Other leading
international airlines already were in operation on this
route. Despite that, your Company has been able to carve
out a niche in this market due to the quality on-board
service and in-flight experience it offers.
On January 19, 2009, your Company started flights from
Chennai and Bangalore to Colombo, Sri Lanka. These
flights are operated on narrow - body Airbus A320 aircraft
and have a single cabin configuration of 180 seats with
Kingfisher Class of service. The Colombo flights have seen
high seat load factors since inception, including guests from
United Kingdom and other European markets to Colombo
via Bangalore. However, for commercial reasons, your
Company is discontinuing services on Bangalore – Colombo
route from September 15, 2009.
Subsequent to the year under review, your Company
commenced flights from Kolkata to Dhaka, Bangladesh on
May 15, 2009 and flights from Bangalore to Dubai on June
25, 2009.
In view of operating losses incurred during the year, your
Directors do not recommend payment of any dividend.
Subsidiaries
During the year under review, Northway Aviation Limited
ceased to be a subsidiary of the Company.
The statement of your Company’s interest in its only
subsidiary as at March 31, 2009, prepared in accordance
with the provisions of Section 212(3) of the Companies Act,
1956 is attached to the Balance Sheet.
Outlook
The integration of the commercial airline business into your
Company pursuant to the Scheme has enabled the Company
to sustain a market share of over 25%. The synergy benefits
mapped out by Accenture are likely to be realized over a
period of time and once the economy emerges from this
recessionary phase your Directors are hopeful that this will
reflect in the financial results of your Company. Oil prices
continued to be volatile and coupled with the high rate
of taxes on Aviation Turbine Fuel in India, the country’s
Civil Aviation industry is operating under severe pressure.
Continuing recessionary conditions in economies worldwide,
the sluggish revival of the financial markets and the
slump in the aviation industry worldwide have resulted in
reduced funds allocation to industry and the Civil Aviation
Sector. Given the recessionary conditions worldwide and
the slow-down in the air travel market, profitability
remains a concern for airlines in the short-term given
the high cost of operations. However, your Company is
hopeful that its ongoing dialogue with the Government of
India will result in measures that will revive the aviation
industry.
However, your Directors and the UB Group reiterate their
confidence in the potential of the Indian aviation industry
as Civil Aviation growth follows GDP growth. The Indian
economy is a trillion dollar economy and is expected to grow
at 5 to 6% per annum, despite the ongoing recessionary
conditions worldwide. Civil Aviation is undoubtedly a key
engine of this growth. Passenger traffic in India has grown
from 14 million in 2005 to over 39 million in 2008-2009. Your
Company is well-poised to meet the dynamic challenges
faced by the industry in the short-term as well as to take
advantage of the growth potential in the long-term.
Moving ahead, your Company intends to intensify its
presence in the Far East, Middle East and SAARC region. As
the largest domestic Indian airline, with pan India coverage,
your Company intends to use its international operations
to further strengthen its domestic network. Your Company
will commence operations on the following routes:
South East Asia Region
Kolkata – Bangkok, Thailand with effect from
August 14, 2009
Mumbai – Hong Kong with effect from
September 15, 2009
Mumbai – Singapore with effect from
September 16, 2009
Mumbai – Bangkok, Thailand
New Delhi – Bangkok, Thailand
SAARC Region
Mumbai – Colombo, Sri Lanka
Mumbai / Bangalore - Male, Maldives
GCC Region
Mumbai / New Delhi - Dubai, UAE
3

Capital
The Authorised Capital of your Company remained
unchanged at Rs. 500,00,00,000 divided into 40,00,00,000
of Rs. 10/- each and 1,00,00,000 Preference Shares of
Rs. 100/- each.
The Issued, Subscribed and Paid-up Equity Share Capital of
your Company also remained unchanged at Rs. 3,629,088,830
divided into 265,908,883 Equity Shares of Rs. 10/- each and
9,700,000 6% Redeemable Non-Cumulative Preference
Shares of Rs. 100/- each.
Depository System
The trading in the equity shares of your Company is under
compulsory dematerialization mode. As of date, equity
shares representing 96.28% of the equity share capital
are in dematerialized form. As the depository system
offers numerous advantages, members are requested to
take advantage of the same and avail of the facility of
dematerialization of your Company’s shares.
Auditors’ Report
As regards observations in para 4 of Auditors’ Report, as
part of the rapid expansion plans, the Company in the past
had incurred certain preoperative expenses and significant
expenditure on in house training of pilots and technical
engineers. All such deferred costs have been written off to
Profit and Loss Account by March 31, 2008 and no amount is
pending for amortization after that date.
In para 5 of the Auditors’ Report, the Statutory Auditors
have qualified their report by remarking that the receipt of
subsidy from aircraft manufacturers should be recognized
as income on an systematic basis over the period necessary
to match them with related costs which they are intended
to compensate though the accounting treatment does not
appear to be covered by the Accounting Standard (AS)–19
(Accounting for Leases) issued by the Institute of Chartered
Accountants of India. In the opinion of the Directors:
(1) The lessor of the Aircraft is a person other than the Aircraft
manufacturer and the lease contract is independent of
the contract with Aircraft manufacturer.
(2) The termination, if any, of the lease contract does not in
any event breach the conditions for the grant of subsidy
by the Aircraft manufacturer.
(3) The subsidy value, referred to in Para 5 of the Audit
Report have been received by the Company during
4
Report of the Directors (Contd.)
the 15 months period ended June 30, 2006. As per
Section 28 (iv) of the Income Tax Act, 1961, and
precedents available under Income Tax laws, including
pronouncements of the Apex Court, the revenue arising
out of support packages will be treated as income
for taxation purposes and therefore, it would not be
prudent for the Company to treat the said revenues
differently in the books of Accounts and for Taxation
purposes.
(4) In the event of non compliance of the contract with
the Aircraft manufacturer, the resultant possibility of
recovery of subsidy granted by the Aircraft manufacturer
has been disclosed as contingent liability and this
accounting treatment adopted by the Company is also
based on the well established principle of differentiation
of revenue receipt and capital receipt.
In view of the above, in the opinion of the Company, the
accounting treatment of the support package, received from
the Aircraft manufacturer, as Income in the year of accrual
and receipt is in order.
The fair market value of these Aircraft is not easily
ascertainable due to the unique specifications of the Aircraft.
Therefore, the management has obtained the valuation
report for Aircraft of similar type from a leasing company
to ascertain the fair market value which is higher then the
sale price of these Aircraft. This is also supported by the fact
that the insurance value to be covered as per respective
Lease Agreement is much more then the sale value of the
Aircraft.
As regards the observations in para 13(a) of the Auditors’
Report, the Note number 19 to Notes to Accounts (Schedule
19) is self explanatory.
As regards the observations in the Annexure to the Auditors’
Report, the Company has taken / is taking necessary steps
to ensure improvement in certain procedures and also
compliance with relevant laws.
Directors
Mr. A. K. Ravi Nedungadi, Capt. G. R. Gopinath and Capt. K.
J. Samuel, Directors, retire by rotation and, being eligible,
offer themselves for reappointment.
Mr. S. R. Gupte was appointed as an Additional Director with
effect from January 28, 2009 and holds office up to the date
of the ensuing Annual General Meeting of your Company.

Report of the Directors (Contd.)
Notice in writing has been received from a Member
signifying their intention to propose the appointment of
Mr. S. R. Gupte as a Director of your Company at the ensuing
Annual General Meeting.
Auditors
M/s. B. K. Ramadhyani & Co, your Company’s Auditors
have confirmed that they are eligible for re-appointment at
the ensuing Annual General Meeting and it is proposed to
re-appoint them and to fix their remuneration.
Listing of Shares of Your Company
The equity shares of your Company are listed on the Bombay
Stock Exchange Limited and the National Stock Exchange of
India Limited. The listing fee for the year 2009-10 has been
paid to these Stock Exchanges.
Corporate Governance
A report on Corporate Governance is annexed separately as
part of this Report along with a certificate of compliance from
a Company Secretary in practice. Necessary requirements of
obtaining certifications/ declarations in terms of Clause 49
have been complied with.
Management Discussion and Analysis
Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, the Management Discussion and Analysis
Report is annexed and forms an integral part of the Annual
Report.
Human Resources
Employee relations remained cordial. The information as are
required to be provided in terms of Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules, 1975, have been included as an annexure
to this Report.
Employee Stock Option Plan (ESOP)
Disclosures as required by Clause 12 of the SEBI (Employee
Stock Option Scheme and Employee Stock Purchase Scheme),
Guidelines 1999 are annexed to this Report.
Conservation of Energy, Research and Development,
Technology Absorption, Foreign Exchange Earnings and
Outgo
The particulars as prescribed under section 217(1)(e) of the
Companies Act, 1956 and the rules framed there under are
not applicable to your Company.
The relevant information relating to Foreign Exchange
Earnings and Outgo appears in the Notes Nos. 9 to 11 of
Schedule 19 to the Financial Statements.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956,
in relation to the Financial Statements of your Company
for the year ended March 31, 2009, the Board of Directors
reports that:
•
•
•
•
in the preparation of the Accounts for the year ended
March 31, 2009, the applicable accounting standards
have been followed along with proper explanation
relating to material departures;
accounting policies have been selected and applied
consistently and that the judgments and estimates
made are reasonable and prudent so as to give a true
and fair view of the state of affairs of your Company as
at March 31, 2009 and of the Loss of your Company for
the year ended March 31, 2009;
proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956, for safeguarding the assets of your Company
and for preventing and detecting fraud and other
irregularities;
the accounts for the year ended March 31, 2009, have
been prepared on a going concern basis.
Thank You
Your Directors place on record their sincere appreciation
for the continued support from shareholders, customers,
the Government of India especially the Ministry of Civil
Aviation and the Directorate General of Civil Aviation,
the various State Governments, Airports Authority of
India, banks and financial institutions, suppliers, other
business associates and employees.
For and on Behalf of the Board of Directors
Bangalore Dr. Vijay Mallya
July 28, 2009 Chairman & CEO
5

The statement of Particulars of Employees as required under section 217 (2A) of the Companies
Act, 1956 and Companies Rules, 1975 has been filed as part of Statutory Filings under the
Companies Act.

Report of the Directors (Contd.)
STOCK OPTIONS GRANTED UNDER THE ESOP 2005 & 2006
Disclosures as required by Clause 12 of the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999
Sl.No Particulars (ESOP 2006) (ESOP 2005)
(a) Options granted Nil Nil
(b) The Pricing formula Rs. 65/- Rs. 65/-
(c ) Options vested 546,320 897,990
(d) Options exercised 55,600 21,430
(e) The total number of shares arising as a result of exercise of options 55,600 21,430
(f) Options lapsed 1,142,600 472,855
(g) Variation of terms of options Nil Nil
(h) Money realized by exercise of options 3,614,000 1,392,950
(i) Total no. of options in force 1,203,400 589,780
(j) Employee wise details of options granted:
(i) Senior managerial personnel Nil Nil
(ii) Any other employee who received a grant in any one year of option amounting to 5% or
more of option granted during the year.
(iii) Identified employees who were granted options, during any one year, equal to or exceeding
1% of the issued capital (excluding outstanding warrants and conversions) of the Company
at the time of the grant
(k) Diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of options calculated in
accordance with Accounting Standard AS-20
(l) Method of accounting followed for value of charge on stock options (as per the Guidance Note on
Stock Based compensation by ICAI)
(m) Difference of amount of ESOP charge calculated as per the Intrinsic Value Method and the fair
value of the options (Black Scholes Method)
(n) Proforma Earning Per Share if the Charge have been accounted in accordance with fair value
method (Black Scholes Method)
Nil Nil
Nil Nil
N.A.
Intrinsic Value Intrinsic Value
Rs. (5,103,738)
Rs. (14.30)
(o) (i) Weighted-averaged exercise prices Rs. 65.00 Rs. 65.00
and
(ii) weighted-average fair values of options Rs. 137.93 Rs. 78.54
for options whose exercise price either equals or exceeds or is less than the market price of
the stock
(p) A description of the method and significant assumptions used during the year to estimate the fair
values of options :
(i) risk-free interest rate (%) N.A. N.A.
(ii) expected life (years) N.A. N.A.
(iii) expected volatility (%) N.A. N.A.
(iv) expected dividends (%) Nil Nil
(v) the price underlying share in market at the time of option grant N.A. N.A.
17

18
1. Company’s Philosophy on Corporate Governance
Your Company is committed to excellence in corporate
governance practices and recognizes that good corporate
governance is a continuous exercise. Your Company aims
at achieving transparency, accountability, equity and
ethics in all facets of its operations and in all interaction
with its stakeholders. Your Company believes that all
its operations and actions must result in enhancement
of overall shareholder value over a sustained period of
time without compromising in any way compliance with
laws and regulations.
2. Board of Directors
Sl.
No.
During the financial year under review, your Company’s
Name of the Director Category of Directorship No. of Board
Meetings
attended
1. Dr. Vijay Mallya Non-Executive
Non-Independent
Chairman (from April 22, 2008)
Managing designated Chairman & CEO
(from October 16, 2008)
2. Capt. G. R. Gopinath Non-Independent
Managing Director
(till October 15, 2008)
Vice Chairman and
Non-Executive Director
(from October 16, 2008)
3. Capt. K. J. Samuel Non-Independent
Executive Director
(till October 15, 2008)
Non-Executive Director
(from October 16, 2008)
4. Mr. A. K. Ravi Nedungadi Non-Executive
Non-Independent Director
5. Lt. Gen. (Retd.)
N. S. Narahari
Non-Executive
Independent Chairman (till April 22, 2008)
Non-Executive
Independent Director (from April 22, 2008) 1
6. Mr. S. N. Ladhani Non-Executive
Non-Independent Director 2
7. Mr. Vijay Amritraj Non-Executive
Independent Director
8. Col. Jayanth K. Poovaiah Executive
Non-Independent Director 3
9. Ms. Bala Deshpande Non-Executive
Non-Independent Director 4
Corporate Gover nance
Board of Directors comprised 11 directors out of which
1 is an Executive Director and 10 are Non-Executive
Directors.
During the year under review, Ten Board Meetings were
held i.e. on April 17, 2008, April 22, 2008, May 19, 2008,
July 25, 2008, September 29, 2008, October 15, 2008,
October 31, 2008, December 10, 2008, December 26,
2008 and January 31, 2009.
Attendance of each Director at the Board Meetings and
the last Annual General Meeting during the year under
review and details of number of outside Directorships
and Committee position(s) held by each of your Directors
as on date are given below:
Attendance at
last AGM held
on December,
26, 2008
# No. of Other
Companies in
which Director
No. of Committees
(other than your
Company) in which
Chairman/Member
8 Yes 23 1
(Chairman of 1)
10 Yes 4 Nil
7 Yes 2 Nil
10 Yes 12 4
(Chairman of 1)
5 N.A. N.A. N.A.
4 N.A. N.A. N.A
4 Yes 3 6
3 N.A. N.A. N.A.
NIL N.A. N.A. N.A.

Corporate Governance (Contd.)
Sl.
No.
Name of the
Director
Category of
Directorship
10. Prof. P. N. Thirunarayana Non-Executive
Independent Director 5
11. Mr. Anil Kumar Ganguly Non-Executive
Independent Director
12. Mr. Hitesh Harshad Patel Non-Executive
Non-Independent Director 6
13. Mr. Piyush Mankad Non-Executive
Independent Director
14. Dr. Naresh Trehan Non-Executive
Independent Director
15. Diwan Arun Nanda Non-Executive
Independent Director
16. Mr. Ghyanendra Nath
Bajpai
Non-Executive
Independent Director
17. Mr. S. R. Gupte Non-Executive
Non-Independent Director*
NOTE:
# The above details are in respect of their Directorship
only in Indian Companies.
a. Out of 23 other companies in which Dr. Vijay Mallya
is a Director, 9 are Private Limited companies and
2 companies incorporated under Section 25 of the
Companies Act, 1956.
b. All the other companies in which Capt. G. R. Gopinath
is a Director are Private Limited companies.
c. Both the other companies in which Capt. K. J. Samuel is
a Director are Private Limited companies.
d. Out of 12 other companies in which Mr. A. K. Ravi
Nedungadi is a Director, 4 are Private Limited companies
and 1 is a company incorporated under Section 25 of
the Companies Act, 1956.
e. Out of 3 other companies in which Mr. Vijay Amritraj is
a Director, 2 are Private Limited companies.
f. Out of 12 other companies in which Dr. Naresh Trehan
is a Director, 8 are Private Limited companies.
g. Out of 12 other companies in which Diwan Arun Nanda
is a Director, 7 are Private Limited companies.
h. Out of 17 other companies in which Mr. Ghyanendra
Nath Bajpai is a Director, 6 are Private Limited companies
and 1 is a company incorporated under Section 25 of
the Companies Act, 1956.
No. of Board
Meetings
attended
Attendance at
last AGM held
on December,
26, 2008
# No. of Other
Companies in
which Director
No. of Committees
(other than the
Company) in which
Chairman/ Member
2 N.A. N.A. N.A.
5 Yes 2 Nil
2 N.A. N.A. N.A.
3 No 12 9
(Chairman of 1)
1 No 12 2
(Chairman of 1)
5 Yes 12 3
(Chairman of 2)
2 No 17 9
(Chairman of 5)
1 N.A. 11 8
(Chairman of 4)
i. Out of 11 other companies in which Mr. S. R. Gupte
is a Director, 2 are Private Limited companies and 1
is a company incorporated under Section 25 of the
Companies Act, 1956.
1 Ceased to be Director w.e.f October 14, 2008.
2 Ceased to be Director w.e.f October 1, 2008.
3 Ceased to be Director w.e.f October 15, 2008.
4 Ceased to be Director w.e.f September 10, 2008.
5 Ceased to be Director w.e.f October 14, 2008.
6 Ceased to be Director w.e.f. July 7, 2008.
* Appointed Additional Director with effect from January
28, 2009.
Mr. Vishnu Singh Rawal, Alternate Director to Mr. S. N.
Ladhani also ceased to be a director w.e.f. October 1, 2008
upon the resignation of Mr. S. N. Ladhani as Director.
The current constitution of the Board of Directors of your
Company is as follows:
• Dr. Vijay Mallya – Chairman & Managing Director
designated Chairman & CEO
• Capt. G. R. Gopinath – Vice Chairman–Non–Executive
Director
• Mr. S. R. Gupte – Non – Executive Director
• Mr. A. K. Ravi Nedungadi – Non – Executive Director
19

• Capt. K. J. Samuel – Non – Executive Director
• Mr. Vijay Amritraj – Non – Executive Independent
20
Director
• Mr. Anil Kumar Ganguly–Non–Executive Independent Director
• Mr. Piyush Mankad–Non–Executive Independent Director
• Dr. Naresh Trehan–Non–Executive Independent Director
• Diwan Arun Nanda–Non–Executive Independent Director
• Mr. Ghyanendra Nath Bajpai–Non – Executive Independent
Director
DISCLOSURE REGARDING APPOINTMENT AND
REAPPOINTMENT OF DIRECTORS
Directors retiring by rotation and seeking re-appointment
Mr. A. K. Ravi Nedungadi, a Chartered and Cost Accountant
joined the UB Group in 1990 as the Corporate Treasurer.
Within two years, he became the Group Finance Director of
the Group’s international business managing the businesses
of UB International, which included the paint giant Berger
Jenson and Nicholson, spanning 27 countries. As the principal
leadership resource of UB Group, he was instrumental in
concluding the acquisition of Shaw Wallace & Co, Bouvet
Ladubay, Whyte and Mackay, erstwhile Air Deccan etc. and
has been deeply engaged with the creation of erstwhile
Kingfisher Airlines Limited (now Kingfisher Training and
Aviation Services Limited). He is a recipient of many awards
of excellence including the Udyog Ratan Award, CNBC TV
18’s – CFO of the Year - M & A, etc. and is on the Board of
several companies, both in India and overseas.
The details of his Directorships in other Indian Companies
and Committee Memberships are as under:-
Other Directorships Position held
Aventis Pharma Limited Director
Bayer CropScience Limited Director
United Breweries Limited Director
Idea Streamz Consultants Private Limited Director
Millenium Alcobev Private Limited Director
Pie Education Limited Director
Millenea Vision Advertising (P) Limited Director
Shaw Wallace & Company Limited Director
Shaw Wallace Breweries Limited Director
SWEW Benefit Company (Section 25 Member
Company)
Deccan Charters Limited Director
DCL Holdings Private Limited Director
Corporate Governance (Contd.)
Mr. A. K. Ravi Nedungadi holds the following other
Committee positions:
Name of the Committee Position held
Audit Committee
Aventis Pharma Limited Member
Bayer CropScience Limited Member
Shareholders/Investors Grievance Committee
Aventis Pharma Limited Member
Bayer CropScience Limited Chairman
Mr. A. K. Ravi Nedungadi does not hold any shares in your
Company.
Capt. G. R. Gopinath, a Graduate of the National Defence
Academy, is an ex Army officer who was in active service in
1971 in the war against Pakistan and took early retirement in
1979 to pursue his diverse interests. A pioneer in the areas of
organic farming and sericulture, he has several inventions to
his credit. He was awarded the “Rolex Award for Enterprise”
in 1996 for his contributions to organic farming. Your
Company was incorporated and established as the first heli-
charter company in India in 1995 under his direction.
The details of his Directorships in other Indian Companies
are as under:-
Other Directorships Position held
Pinewood Hospitality Private Limited Director and
Member
Deccan Emerging Business Ventures
Private Limited
Deccan Cargo & Express Logistics Private
Limited
Director and
Member
Director and
Member
DCL Holdings Private Limited Director and
Member
Deccan Charters Limited Director and
Member
Capt. G. R. Gopinath does not hold any Committee
Membership in other Indian Companies.
Capt. G. R. Gopinath holds 85,10,477 shares constituting
3.20% of the paid up capital of your Company.
Capt. K. J. Samuel, a recipient of the ‘Sena Medal’ for gallantry,
is a graduate of the National Defence Academy. After being
commissioned into the Indian Army in 1971, he fought in the
1971 war against Pakistan and is an experienced helicopter

Corporate Governance (Contd.)
pilot. He took voluntary retirement in 1992, as a Lieutenant
Colonel. He is also a qualified flying instructor and a DGCA
Examiner.
The details of his Directorships in other Indian Companies
are as under:
Other Directorships Position held
Deccan Cargo & Express Logistics Private
Limited
Director
DCL Holdings Private Limited Director
Capt. K. J. Samuel does not hold any Committee Membership
in other Indian Companies.
Capt. K. J. Samuel holds 77,56,807 shares constituting 2.92 %
of the paid up capital of your Company.
New Director
Mr. S. R. Gupte is a Chartered Accountant with over
four decades of corporate, financial, administration and
personnel experience. He has over two decades experience
in the Aviation Industry and served as the Acting Chairman
and Managing Director of Air India prior to joining the UB
Group. Mr. S. R. Gupte has been Vice-Chairman of the UB
Group for the last 17 years.
The details of his Directorships in other Indian Companies
and Committee Memberships are as under:-
Other Directorships Position held
Associated Breweries & Distilleries
Limited
Director
Aventis Pharma Limited Director
Mangalore Chemicals & Fertilizers
Limited
Director
Millennium Beer Industries Limited Director
Shaw Wallace & Co. Limited Director
Shaw Wallace Breweries Limited Director
UB Electronic Instruments Limited Chairman
United Spirits Limited Director
United Helicharters Private Limited Chairman
VJM Media Pvt. Limited Chairman
Federation of Indian Chambers of
Commerce & Industry
Executive
Committee Member
Mr. S. R. Gupte holds the following other Committee
positions:
Name of the Committee Position held
Audit Committee
Aventis Pharma Limited Chairman
Millennium Beer Industries Limited Chairman
Mangalore Chemicals & Fertilizers Limited Member
Shaw Wallace & Company Limited Member
United Spirits Limited Member
Shareholders/Investors Grievance Committee
Aventis Pharma Limited Chairman
Millennium Beer Industries Limited Chairman
Shaw Wallace & Company Limited Member
Mr. S. R. Gupte does not hold any shares in your Company.
3. AUDIT COMMITTEE
The Audit Committee was constituted on December 21,
2005 to meet the requirements under both the Listing
Agreement and Section 292A of the Companies Act,
1956.
During the year under review, meetings of the
Committee were held on April 22, 2008, October 15,
2008 and October 31, 2008. The details of attendance
by members of the Committee are as below:
Members Category No. of
Meetings
Attended
Mr. Anil Kumar
Ganguly
Non-Executive/
Independent
Lt. Gen. N. S. Narahari Non-Executive/
Independent
Mr. P. N.
Thirunarayana
Non-Executive/
Independent
Mr. S. N. Ladhani Non-Executive/
Non-
Independent
Mr. A. K. Ravi
Nedungadi
Non-Executive/
Non-
Independent
Diwan Arun Nanda Non-Executive/
Independent
Dr. Naresh Trehan Non-Executive/
Independent
2
1
1
1
2
2
1
21

22
The terms of reference to the Audit Committee cover
the areas mentioned under Clause 49 of the Listing
Agreement and Section 292A of the Companies Act,
1956, (besides some other functions as are referred to it
by the Board of Directors) which are as follows:-
• Regular review of accounts, accounting policies,
disclosures, etc.
• Review of the major accounting entries based on
exercise of judgment by management and review
of significant adjustments arising out of audit.
• Qualifications in the draft audit report.
• Establishing and reviewing the scope of the
independent audit including the observations of
the auditors and review of the quarterly, half-yearly
and annual financial statements before submission
to the Board.
• The Committee shall have post audit discussions
with the independent auditors to ascertain any
area of concern.
• Establishing the scope and frequency of internal
audit, reviewing the findings of the internal
auditors and ensuring the adequacy of internal
control systems.
• To look into reasons for substantial defaults in
the payment to depositors, debenture holders,
shareholders and creditors.
• To look into the matters pertaining to the
Director’s Responsibility Statement with respect
to compliance with Accounting Standards and
Accounting Policies.
• Compliance with Stock Exchange legal requirements
concerning financial statements to the extent
applicable.
• The Committee shall look into any related party
transactions i.e., transactions of the Company of a
material nature, with promoters or management,
their subsidiaries or relatives etc., that may have
potential conflict with the interests of Company at
large.
• Appointment and remuneration of statutory and
internal auditors.
• Such other matters as may from time to time be
required by any statutory, contractual or other
Corporate Governance (Contd.)
regulatory requirements to be attended to by the
Audit Committee.
Consequent upon the resignation of Directors and
appointment of Additional Directors as mentioned
hereinabove, the Audit Committee was reconstituted
on October 15, 2008 and comprised of the following
members:
• Mr. Anil Kumar Ganguly- Chairman
• Diwan Arun Nanda
• Dr. Naresh Trehan
• Mr. A. K. Ravi Nedungadi
Subsequent to the year under review, Mr. S. R. Gupte
was inducted into the Audit Committee on June 30,
2009.
The current composition of the Committee is as given
below:
• Mr. Anil Kumar Ganguly- Chairman
• Diwan Arun Nanda
• Dr. Naresh Trehan
• Mr. A. K. Ravi Nedungadi
• Mr. S. R. Gupte
4. SHARE ALLOTMENT, TRANSFERS AND INVESTOR
GRIEVANCE COMMITTEE
The Share Allotment, Transfers and Investor Grievance
Committee was constituted on December 21, 2005 to
operate in terms of the provisions related thereto in the
Listing Agreements with the Stock Exchanges and/or
the provisions as prescribed or may be prescribed in this
regard by the Companies Act, 1956.
During the year under review, the said Committee
comprised of the following Directors:
• Mr. Anil Kumar Ganguly - Chairman
• Lt. Gen. N. S. Narahari
• Mr. S. N. Ladhani
• Capt. K. J. Samuel
• Col. Jayanth K. Poovaiah
Mr. N. Srivatsa, Company Secretary, is the Compliance
Officer.
During the year under review, four meetings of the
Committee were held on May 19, 2008, July 14, 2008,
August 1, 2008 and October 1, 2008. The attendance

Corporate Governance (Contd.)
of your Directors at these Committee meetings is as
below:
Members Category No. of Meetings
Attended
Mr. Anil Kumar
Ganguly
Non-Executive/
Independent
Lt. Gen. N. S. Narahari Non-Executive/
Independent
Mr. S. N. Ladhani Non-Executive/
Non-Independent
Capt. K. J. Samuel Executive / Non-
Independent
Col. Jayanth K.
Poovaiah
Executive/ Non-
Independent
Consequent upon the resignation of Directors and
appointment of Additional Directors as mentioned
hereinabove, the Committee has been reconstituted on
October 15, 2008 and the current composition of the
Committee is as given below:
• Mr. Anil Kumar Ganguly - Chairman
• Mr. A. K. Ravi Nedungadi
• Capt. K. J. Samuel
During the year under review, 31 complaints were
received and replied/redressed to the satisfaction of the
shareholders.
5. REMUNERATION COMMITTEE
The Remuneration Committee was constituted on
March 16, 2005. The Committee is authorized, inter alia,
to deal with matters relating to framing policies and
compensation including salaries and salary adjustments,
incentives, bonuses, promotion, benefits, stock options
and performance targets of top executives, remuneration
of Directors, strategies for attracting and retaining
employees, employee development programmes and
other key issues referred by the Board of Directors of
your Company.
During the year under review, the Committee comprised
of the following Directors:
• Mr. S. N. Ladhani
• Ms. Bala Deshpande
• Lt. Gen. N. S. Narahari
• Prof. P. N. Thirunarayana
• Mr. Anil Kumar Ganguly
2
4
3
3
3
Mr. N. Srivatsa, Company Secretary, is the Secretary of
the Committee.
During the year under review, no meetings of the
Committee were held.
Consequent upon the resignation of Directors
and appointment of Additional Directors as mentioned
hereinabove, the Remuneration Committee and the
ESOP Committee were merged into one committee
namely “Remuneration and Compensation Committee”
on October 15, 2008. The Committee is authorized,
apart from the matters referred to above, to
formulate and implement Employee Stock Option
Scheme(s).
The current composition of the Committee is as given
below :
• Diwan Arun Nanda - Chairman
• Mr. Anil Kumar Ganguly
• Mr. A. K. Ravi Nedungadi
Remuneration of Directors
The details of remuneration paid to the Directors during the
year under review are given below:
a) Remuneration of Executive Directors
Name of the Director Salary payable
per annum (Rs.)
Capt. G. R. Gopinath
Managing Director
Capt. K. J. Samuel
Executive Director
Col. Jayanth K. Poovaiah
Executive Director
Actual Salary
paid (Rs.)
Rs. 30,00,000 Rs.16,20,968*
Rs. 14,88,000 Rs.8,04,000*
Rs. 24,00,000 NIL#
* Ceased to be whole-time Directors from October 15,
2008. Actual Salary paid is in respect of the period
April 1, 2008 to October 15, 2008.
# Ceased to be whole-time Director from October
15, 2008. As the said Director was in charge of the
Operations of the Charter Services, his Services and
Remuneration were transferred to Deccan Charters
Limited pursuant to the Composite Scheme of
Arrangement between your Company (formerly
Deccan Aviation Limited), Kingfisher Training and
Aviation Services Limited (formerly Kingfisher Airlines
Limited) and Deccan Charters Limited from the
effective date of the Scheme as sanctioned by Hon’ble
23

24
High Court of Karnataka vide its Order dated June 16,
2008.
Mr. Vishnu Singh Rawal ceased to be Alternate Director
w.e.f. October 1, 2008. His Services and Remuneration
payable to him as an employee in the whole-time
employment of the Charter Services Operations of your
Company were transferred to Deccan Charters Limited
pursuant to the Composite Scheme of Arrangement
between your Company (formerly Deccan Aviation
Limited), Kingfisher Training and Aviation Services
Limited (formerly Kingfisher Airlines Limited) and
Deccan Charters Limited from the effective date of
the Scheme as sanctioned by Hon’ble High Court of
Karnataka vide its Order dated June 16, 2008.
b) Sitting fees of Non-Executive Directors:
Name of the Director
Fees paid for attending
Board / Committee
Meetings (Rs.)
Dr. Vijay Mallya 1,00,000
Lt. Gen. (Retd.) N. S. Narahari 1,50,000
Mr. S. N. Ladhani` 1,20,000
Mr. Vijay Amritraj 80,000
Mr. A. K. Ravi Nedungadi 2,20,000
Ms. Bala Deshpande Nil
Mr. P. N. Thirunarayana 50,000
Mr. Anil Kumar Ganguly 1,40,000
Mr. Hitesh Patel 40,000
Capt. G. R. Gopinath 80,000
Capt. K. J. Samuel 60,000
Mr. Piyush Mankad 60,000
Dr. Naresh Trehan 30,000
Diwan Arun Nanda 1,20,000
Mr. Ghyanendra Nath Bajpai 40,000
Mr. S. R. Gupte 20,000
None of the Non-Executive Directors of your Company
have any pecuniary relationship or transaction with your
Company.
c) Shareholding of Non-Executive Directors during the year
under review
Apart from Dr. Vijay Mallya, Capt. G. R. Gopinath
and Capt. K. J. Samuel who held 1,51,17,321, 98,70,527
and 79,56,807 Equity Shares of Rs. 10/- each respectively
of your Company, no other Non-Executive Director held
shares in your Company as on March 31, 2009.
Corporate Governance (Contd.)
None of the Non-Executive Directors owned any shares
on beneficial basis during the year under review.
6. GENERAL BODY MEETINGS
The details in respect of the last three Annual General
Meetings are furnished as under:
Financial
Year
2005-2006 December 11,
2006
2006-2007 December 19,
2007
2007-2008 December 26,
2008
Date Time Venue
10.30 a.m. Dr. Ambedkar
Bhavan, Millers
Road, Vasanthnagar,
Bangalore - 560 052
04.00 p.m. Senate Hall, Hotel
Capitol, 3 Raj
Bhavan Road,
Bangalore - 560 001
02.45 p.m. Dr. Ambedkar
Bhavan, Millers
Road, Vasanthnagar,
Bangalore - 560 052
All the resolutions set out in the Notices,
including Special Resolutions were passed by the
Shareholders.
Postal Ballot
Your Company has not passed any resolution at the
above Annual General Meetings which was required to
be passed through Postal Ballot as per the provisions of
the Companies Act, 1956 (“the Act”) and the rules framed
thereunder.
Pursuant to Section 192A of the Companies Act, 1956, your
Company conducted Postal Ballot exercises following the
provisions and rules framed under the Act for conducting
Postal Ballot.
The details / results of the Postal Ballot exercises so conducted
are as under:
Date of
Notice
of Postal
Ballot
October
31, 2008
Date of
Scrutinizer’s
Report
December 16,
2008
Description Result
Special Resolution
under Section 17 of
the Companies Act,
1956 for Alteration
of Clause 3 viz. the
Objects Clause of
the Memorandum
of Association of the
Company
Carried with
requisite
majority.
Number of votes
cast in favour –
16,33,29,885
Number of votes
cast against –
10,475

Corporate Governance (Contd.)
Date of
Notice
of Postal
Ballot
May 28,
2009
Date of
Scrutinizer’s
Report
Description Result
Ordinary Resolution
under Section 293 (1)
(d) of the Companies
Act, 1956 authorising
the Board of Directors
to borrow moneys
upto an aggregate
amount of Rs. 7,500
Crores (Rupees
Seven Thousand Five
Hundred Crores)
Carried with
requisite
majority.
Number of votes
cast in favour –
16,29,13,834
Number of votes
cast against –
4,22,525
Ordinary Resolution Carried with
under Section 293 (1) requisite
(a) of the Companies majority.
Act, 1956 for creating Number of votes
security on the Assets cast in favour –
of the Company in 16,29,14,676
connection with the Number of votes
amounts borrowed/ to cast against –
be borrowed by the
Company
4,21,647
July 16, 2009 Ordinary Resolution
under Section 293 (1)
(d) of the Companies
Act, 1956 authorising
the Board of Directors
to borrow moneys
upto an aggregate
amount of Rs. 12,500
Crores (Rupees
Twelve Thousand Five
Hundred Crores)
Ordinary Resolution
under Section 293(1)
(a) of the Companies
Act, 1956 for creating
security on the Assets
of the Company in
connection with the
amounts borrowed/to
be borrowed by the
Company.
Carried with
requisite
majority.
Number of votes
cast in favour –
15,57,76,193
Number of votes
cast against –
6,11,165
Carried with
requisite
majority.
Number of votes
cast in favour –
15,57,70,187
Number of votes
cast against –
6,11,161
The Postal Ballot exercise was conducted by Mr. G. Krishna,
Company Secretary in Practice, Scrutinizer appointed for this
purpose.
7. DISCLOSURES
During the year under review, there were no materially
significant related party transactions with your
Company’s promoters, the Directors or the management,
their subsidiaries or relatives etc. that may have potential
conflict with the interests of your Company at large.
Details of related party transactions form part of Notes
to Accounts.
Your Company has complied with all the statutory
requirements comprised in the Listing Agreements /
Regulations / Guidelines / Rules of the Stock Exchanges /
SEBI / other statutory authorities excepting when it could
not hold an Audit Committee Meeting on January 31,
2009 for lack of quorum. Also with respect to furnishing
and publication of the Audited Financial Results relating
to the Year ended March 31, 2009 in terms of Clause
41 of the Listing Agreement, the Audit Committee
Meeting to consider the Audited Financial Results for
Year ended March 31, 2009 was convened to be held
on June 29, 2009. However, due to the non availability
of the Independent Directors as well as the Chairman
of the Audit Committee (who met with an unfortunate
accident) the requisite quorum for the Audit Committee
Meeting was not present and the Audit Committee
Meeting could not be held.
The Board of Directors were of the opinion that it
would be neither appropriate and proper in terms of
the compliance of the letter and spirit of Corporate
Governance nor in the interest of the investors, to have
the Annual Audited Accounts considered and
recommended / approved by the meetings of the Audit
Committee and the Board of Directors without adequate
representation and participation of independent
directors and without the presence of the Chairman of
the Audit Committee. The said Financial Results were
however considered at the Audit Committee Meeting
held on July 28, 2009 and approved by the Board of
Directors at the Board Meeting held the same day. SEBI
and National Stock Exchange Limited have issued Show
Cause Notices on the above which are being dealt with.
In view of the de-merger Appointed Date being April 1,
2008, and with a view to present to the shareholders a
transparent financial statement of the airline business
post-integration and to enable your Company to
synchronize its accounting year as April 1 to March 31
every year in line with the uniform financial year of the
other companies in the UB Group of which your company
is a constituent, the Board of Directors of your Company
decided that your Company should present one single
financial statement to the Members commencing April
1, 2008 (the Appointed Date under the Scheme) and
ending on March 31, 2009. As a consequence, the
reporting period for the previous accounting year was
for a period of nine months from July 1, 2007 to March
31, 2008.
25

26
Considering that, the Company’s financial year 2007-08
would be for the period July 1, 2007 to June 30, 2008,
the Company availed the 3 months option available
under the listing agreement for publication of the
Audited Financial Results for the said financial year.
However, in end September 2008, it was decided that,
in view of reasons stated above, the financial year 2007-
08 should be advanced to end on March 31, 2008 and
accordingly, the Audited financial statements for the
same was considered at the Audit Committee Meeting
held in October 2008.
In view of the above, there was a gap of 4 months
between the two Audit Committee Meetings as observed
in the certificate of the Practicing Company Secretary
relating to compliance of Corporate Governance.
There were no other instances of non-compliance by
your Company nor have any penalties, strictures been
imposed by Stock Exchanges or SEBI or any statutory
authority since incorporation of your Company on any
matter related to capital markets.
8. MEANS OF COMMUNICATION
The unaudited quarterly and half-yearly results are sent
to all the Stock Exchanges where the shares of your
Company are listed. The results are normally published
in Business Standard and Kannada Prabha.
The results are displayed on your Company’s website
www.flykingfisher.com.
9. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion & Analysis Report forms
part of this Annual Report.
10. GENERAL SHAREHOLDERS’ INFORMATION
a) Annual General
Meeting
Date September 29, 2009
Time 2.45 p.m.
Venue Good Shepherd Auditorium,
Opp. St. Joseph’s
Pre-University College,
Residency Road,
Bangalore -560 025.
b) Financial Year April 1, 2008 to March 31, 2009
c) Dates of Book Closure Friday, September 25, 2009 to
Tuesday, September 29, 2009
(both days inclusive)
d) Dividend Payment
Date
Corporate Governance (Contd.)
Your Company has not
declared any dividend for the
period April 1, 2008 to March
31, 2009.
e) Listing Fees The listing fees for the year
2009-10 have been paid to
both the Stock Exchanges
where your Company’s equity
shares are listed.
f) Registered Office UB Tower, Level 12, UB City, 24
Vittal Mallya Road, Bangalore
560 001 (w.e.f. June 2, 2008)
g) Listing on Stock
Exchanges in India
Bombay Stock Exchange
Limited, P. J. Towers, Dalal
Street, Mumbai 400 001
National Stock Exchange of
India Limited, Exchange Plaza,
C/1, Block G, Bandra-Kurla
Complex, Bandra (E),
Mumbai 400 051
h) Stock Code BSE- 532747
NSE- SYMBOL- AIRDECCAN
(upto October 5, 2008)
NSE- SYMBOL- KFA
(w.e.f. October 6, 2008)
i) ISIN No. INE438H01019
The listing fees for the year 2008-09 have been paid
to both the Stock Exchanges
j) Financial Calendar for the period April 1, 2009 to
March 31, 2010 is as given below:
First Quarterly
Results
Second Quarterly
Results
Third Quarterly
Results
Fourth Quarterly
Results
k) Market Price Data
July 28, 2009
By October 31, 2009
By January 31, 2010
By April 30, 2010
The shares of the Company are listed on Bombay
Stock Exchange Limited and National Stock
Exchange of India Limited. The table below sets out
the monthly high and low quotations of the shares
traded during the year under review. Your Company’s
Management cautions the readers that the share
price performance shown in the table below should
not be considered to be indicative of the share price
in the future.

Corporate Governance (Contd.)
l) Share Price of your Company
ON BSE ON NSE
Month High (Rs.) Low (Rs.) Close (Rs.) Volume (Nos.) High (Rs.) Low (Rs.) Close (Rs.) Volume (Nos.)
April 2008 151.30 113.40 143.30 6135083 151.90 113.15 143.45 16397134
May 2008 158.50 115.00 115.85 4468142 158.45 115.00 115.60 13326597
June 2008 117.50 59.00 59.85 4001746 117.00 59.00 59.90 11920653
July 2008 84.75 54.00 79.20 12777869 84.25 52.00 79.15 33083760
August 2008 96.20 75.00 79.35 6725383 96.30 75.00 79.60 16618888
September 2008 93.70 52.25 60.10 5866677 94.70 52.55 60.25 17238723
October 2008 64.30 24.90 32.25 4781921 64.50 24.15 32.25 10564998
November 2008 36.80 22.00 27.50 9224859 38.00 22.10 27.65 18630910
December 2008 43.85 25.85 40.70 21039281 44.00 25.50 40.80 41858406
January 2009 44.70 30.10 35.05 15003212 44.85 30.00 35.05 33358011
February 2009 37.85 30.55 32.30 14566838 37.60 30.50 32.30 35248818
March 2009 37.00 24.40 33.40 10658739 35.60 24.40 33.45 28699032
The Company’s performance for the period from April 1, 2008 to March 31, 2009 vis-à-vis BSE Sensex
Your Company vis-à-vis BSE
Your Company vis-à-vis NSE
27

m) Registrar and Share Transfer Agents
28
Karvy Computershare Pvt. Ltd.
Plot No. 17-24, Vittal Rao Nagar,
Madhapur, Hyderabad - 500 081
Tel No. : 91-040 - 23420816 - 824
Fax No. : 91- 040 - 23420814
Email ID : einward.ris@karvy.com
n) Share Transfer System
Corporate Governance (Contd.)
The power to consider and approve share transfers/ transmission/ transposition/ consolidation/ subdivision etc. has been
delegated to a Committee of Directors as indicated under the heading “Share Allotment, Transfers and Investor Grievance
Committee”. The Committee meets generally once in a month. The requirements under the Listing Agreement/ Statutory
regulations in this regard are being followed.
o) Distribution of Shareholding as on March 31, 2009
Equity Shares held Shareholders Shares held %
1 - 5000 62144 7,077,012 2.66%
5001 - 10000 2491 2,055,084 0.77%
10001 - 20000 1068 1,661,745 0.63%
20001 - 30000 384 996,991 0.38%
30001 - 40000 156 566,232 0.21%
40001 - 50000 153 733,056 0.28%
50001 - 100000 230 1,712,144 0.64%
100001 & Above 264 251,106,619 94.43%
Total 66890 265,908,883 100.00
p) Shareholding Pattern as on March 31, 2009
Sl. No. Name of Shareholder No. of shares % of holding
1. Promoters 176,217,925 66.27
2. Mutual Funds / UTI 13,995,802 5.26
3. Financial Institutions / Banks 11,200 0.00
4. Venture Capital Funds 0 0.00
5. Insurance Companies 1,254,420 0.47
6. Bodies Corporate 20,664,305 7.77
7. Individuals 37,127,444 13.96
8. Trusts 515,959 0.19
9. Clearing Members 1,158,099 0.44
10. Foreign Institutional Investors 1,705,877 0.64
11. Foreign Corporate Bodies 12,268,297 4.61
12. Non Resident Indians 283,755 0.11
13. Foreign Nationals 705,800 0.27
Total 265,908,883 100.00

Corporate Governance (Contd.)
q) Percentage of Shares held in Physical & Electronic Form as on March 31, 2009
Sl. No. Category Holders Total Shares % To Equity
1. Physical 40 32,832,809 12.35
2. NSDL 47219 123,040,203 46.27
3. CDSL 19631 110,035,871 41.38
Total 66890 265,908,883 100.00
Your Company has not issued GDRs/ADRs/Warrants or any convertible instruments.
r) Dematerialisation of Shares
87.65% of the paid-up capital is held in dematerialized form as on March 31, 2009 and 96.28% as on date.
s) Insider Trading
All the Directors and Senior Management Personnel have affirmed compliance of “The Code of Business Conduct and
Ethics” as suggested under the SEBI (Prohibition of Insider Trading) Regulations, 1992 and have executed Indemnity
Bonds thereof, individually.
t) Address for Correspondence
Shareholder correspondence should be addressed to your Company’s Registrar and Share Transfer Agents:
Karvy Computershare Pvt. Ltd.
Plot No. 17-24, Vittal Rao Nagar, Madhapur,
Hyderabad - 500 081
Tel No.: 91-040- 23420816-824
Fax No.: 91-040- 23420814
Email ID: einward.ris@karvy.com
Investors may also write to or contact Mr. N. Srivatsa, Company Secretary at:
Kingfisher Airlines Limited
35/2, Cunningham Road, Bangalore - 560 052
Tel.: 91- 080-41148190-99
Fax : 91-080-22352645/41148849
Email: N.Srivatsa@flykingfisher.com
In compliance with the provisions of Clause 47(f) of the Listing Agreement with the Stock Exchanges, an exclusive
email id, viz investor.relations@flykingfisher.com has been designated for registering complaints by investors, which has
been displayed on the website of your Company www.flykingfisher.com.
NON MANDATORY REQUIREMENTS
a. Remuneration Committee Your Company has “Remuneration and Compensation” Committee.
b. Shareholders Rights Your Company’s half-yearly results are published in English and Kannada newspapers.
Hence the same are not sent to the shareholders.
c. Training of Board Members The Board of Directors comprises of well experienced and accomplished members and
their formal training is considered not necessary.
d. Whistle Blower Policy Your Company has a Whistle Blower Policy in place.
29

To,
30
CERTIFICATE OF THE PRACTISING COMPANY SECRETARY IN RESPECT OF
COMPLIANCE OF CORPORATE GOVERNANCE
The Members of Kingfisher Airlines Limited
Bangalore
I have examined the compliance of conditions of Corporate Governance by Kingfisher Airlines Limited for the financial year
ended 31 st March, 2009 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges in
India.
The compliance of the conditions of Corporate Governance is the responsibility of the management. My examination was
limited to procedures and implementation thereof adopted by the Company for ensuring the compliance with the conditions
of Corporate Governance as stipulated in the above mentioned Listing Agreement.
In my opinion and to the best of our information and according to the explanations given to me, I certify that, the Company has
complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement
except that as regards meetings of the Audit Committee, only 3 meetings were held during the year and there was a gap of
more than 4 months between the first two meetings of the said Committee.
I state that in respect of investor grievances received during the financial year ended on March 31, 2009, no grievances are
pending against the Company as per records maintained by the Company and presented to the Share Allotment, Transfers
and Investor Grievance Committee.
I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Bangalore G. Krishna
July 28, 2009 Company Secretary
Membership No. ACS-9716
CP-5793
CEO / CFO Certificate
In terms of the requirement of the amended Clause 49, the Certificates from CEO / CFO have been obtained.
Bangalore Dr. Vijay Mallya
July 28, 2009 Chairman & CEO
On behalf of the Board of Directors
DECLARATION REGARDING AFFIRMATION OF CODE OF CONDUCT
In accordance with Clause 49 of the Listing Agreement with the Stock Exchange(s) it is hereby declared that all the Directors
and Senior Management Personnel of the Company have affirmed compliance with the Code of Conduct of the Company for
the year ended 31 st March, 2009.
Bangalore Dr. Vijay Mallya
July 28, 2009 Chairman & CEO
Corporate Governance (Contd.)

Management Discussion and Analysis Report
1. Industry structure and developments
a. In spite of the global recessionary trends, India
managed 6.7% economic growth in the fiscal
2009 despite the manufacturing sector recording a
dismal performance. A growth rate of 5.8% during
the last quarter of the fiscal and a 4.7% growth
during the first quarter of 2009-10, at a time when
most developed economies have shrunk, puts India
among the top-most growing nations.
b. However, the global economic slowdown has
impacted the aviation sector adversely across the
world. The International Air Transport Association
(IATA) has forecast that the global aviation industry
will incur US$9 billion losses this year. Asia-Pacific
region alone will account for more than a third or
US$3.3 billion of the forecast losses.
c. India alone accounted for nearly US$2 billion losses
in FY09.
d. Passenger traffic for the Indian Aviation Industry
declined significantly in FY09 given the economic
slowdown. This has been further heightened by
the events of 26/11 Mumbai terrorist attacks. The
financial year was marked by an unprecedented
rise in fuel prices touching a high of close to $150
per barrel in July 2008. Further there was also a
20 % depreciation of the Indian Rupee adversely
impacting a large proportion of the operational
costs. High ATF prices (Tax incidence of over 50% on
base price), High airport handling charges, Route
Dispersal Guidelines (a regulatory requirement that
require airlines to compulsory fly to certain sectors
whether commercially viable or not, taking into
account the Government’s need for air transport
services of different regions in the country) further
contributed to the woes of the aviation industry in
India.
e. The Indian Airline Industry responded with sharp
capacity cuts to rectify the excess supply situation
and curtail losses. Your Company has been at
the forefront of capacity correction, reducing
operating domestic capacity by over 20% over the
last Fiscal.
2. Industry impact on your Company
a. Given the slow-down in the air travel market,
profitability continues to remain a concern for
airlines in the short-term given high cost of
operations.
b. However, your Company is well positioned to
service current slowdown environment and will
continue to cut costs while adding new revenue
streams. It is our expectation that Government
will create a conducive environment to assist and
revive the ailing aviation industry such that a viable
business model can operate in profits.
3. Segment–wise or product-wise performance
a. During the year under review, your Company
continued to operate in a single business segment,
i.e. of providing air transportation services.
b. During the year under review, your Company
connected 70 destinations in India and commenced
international operations in September, 2008.
4. Internal control systems and their adequacy
a. Your Company has a proper and adequate system
of internal controls commensurate with its size
and nature of operations to provide reasonable
assurance that all assets are safeguarded,
transactions are authorised, recorded and
reported properly and applicable statutes,
codes of conduct and corporate policies are duly
complied with.
b. The Internal audit department reviews the
adequacy and efficacy of the key internal controls,
guided by the Audit Committee of the Board.
c. The Company’s Audit Committee comprises
four Non–executive Directors: Mr. A. K. Ganguly,
Chairman, Diwan Arun Nanda, Dr. Naresh Trehan
and Mr. A. K. Ravi Nedungadi. One of the objectives
of the Audit Committee is to review the reports
submitted by the Internal Audit Department
and to monitor follow-up and corrective action
by Management. The Audit Committee was
reconstituted on June 30, 2009 to co opt Mr. S. R.
Gupte as a member. The Committee now comprises
Mr. Anil Kumar Ganguly - Chairman, Diwan Arun
Nanda, Dr. Naresh Trehan, Mr. A. K. Ravi Nedungadi
and Mr. S. R. Gupte
d. Your Company has a compliance procedure
to ensure that all laws, rules and regulations
applicable to it are complied with.
31

32
e. The Company Secretary is the designated
Compliance Officer to ensure compliance with
SEBI regulations and with the Listing Agreement
with National Stock Exchange of India Limited and
Bombay Stock Exchange Limited.
f. Your Company has a process of both external and
internal safety audits for each area of operation.
Your Company is in full compliance with all laws,
rules and regulations relating to airworthiness,
air safety and other statutory operational
requirements.
g. Your Company, as part of its Risk Management
strategy, reviews, on a continuous basis, its
strategies, processes, procedures and guidelines
to effectively identify and mitigate risks. Further,
the Management has developed a procedure
to ensure adequate disclosures of key risks and
mitigation initiatives to the Audit Committee of
the Board.
5. Analysis of operational performance for the period
ended March 31, 2009
The current financial period is for twelve months from
April 1, 2008 to March 31, 2009 (FY09) and is the first
year of the consolidated airline entity and therefore,
not strictly comparable with the results of the previous
financial period of 09 months from July 1, 2007 to March
31, 2008 (FY08) on account of differing accounting
periods.
Income
a. Your Company’s total income stood at Rs. 55,774.73
million during the twelve month period from April
1, 2008 to March 31, 2009.
Management Discussion and Analysis Report (Contd.)
b. Income from operations formed 94% of total
income at Rs. 52,691.7 million. Your Company
carried 10.9 million revenue passengers in FY09,
down 19% over FY08.
c. Other income stood at Rs. 3083.02 million
during the twelve month period from April 1,
2008 to March 31, 2009. This includes incentives
received from aircraft manufacturer of Rs. 255.50
million.
d. Your Company’s robust airline operation helped
in facing a lot of challenges in FY09 including
capacity reduction, sky-high oil prices, effects of
26/11 terror attacks, economic slowdown and
part - deferral of international operations.
Expenditure
Total expenditure stood at Rs. 74,951.43 million during
the twelve month period from April 1, 2008 to March
31, 2009.
a. Aircraft Fuel Expenses: Expenditure on fuel stood
at Rs. 26,026.2 million during the twelve month
period from April 1, 2008 to March 31, 2009
accounting to 35% of the total costs. Domestic ATF
price movement in INR is given below.
b. Aircraft Engine / Lease Rentals: Aircraft / engine
lease rentals stood at Rs. 11,851.32 million during
the twelve month period from April 2008 to

Management Discussion and Analysis Report (Contd.)
March 2009. During the period under review,
your Company returned 8 A320s and 3 ATR 42-500
aircraft while adding 5 A330 wide bodies, which
added to the lease rentals on our existing fleet.
Average fleet strength of your Company during
FY09 was 84.
c. Employee Remuneration and Benefits (Personnel
Costs) : Employee remuneration and benefits stood
at Rs. 8,238.52 million during the twelve month
period from April 2008 to March 2009. Average
headcount for your Company during FY09 was
8,614.
d. Other Operating Expenses: Other operating
expenses stood at Rs. 25,465.41 million during the
twelve month period from April 1, 2008 to March
31, 2009. The same is impacted by the increase
in level of operations, domestic and international
during the period under review.
e. Interest and Finance Charges: Interest and Finance
Charges were at Rs. 6,962.32 million during the
twelve month period from April 1, 2008 to March
31, 2009.
f. Depreciation and Amortization: Depreciation
charges were Rs.1,332.0 million during the twelve
month period from April 1, 2008 to March 31, 2009.
Amortization charges stood at Rs.383.88 million
during the twelve month period from April 1, 2008
to March 31, 2009.
g. Maintenance Rent Reversed: During the twelve
month period from April 1, 2008 to March 31, 2009,
in order to cut costs, your Company converted its
Maintenance Reserve Cash payments to Letters of
Credit based payments. The net saving as a result of
this reversing was Rs. 5,308.244 million.
h. Provision for Tax: Our total tax expense, comprising
fringe benefit tax, was Rs. 125 million during the
twelve month period from April 1, 2008 to March
31, 2009.
i. Loss after Tax Expense for the Year: Loss after
tax during the twelve month period from April 1,
2008 to March 31, 2009 was Rs. 16,088.30 million
primarily due to following reasons:
• Significant impact of high fuel prices in the first
half of FY09.
• Impact of start-ups of International
Operations.
• One time impact of Deccan re-branding and
aircraft redelivery.
• Impact of the depreciation of the Indian Rupee.
• Interest costs of parked aircraft.
6. Material developments in Human Resources /
Industrial Relations front, including number of people
employed
a. The average number of employees for FY09 period
was 8,614.
b. There were no material developments as regards
human resources / industrial relations front during
the period under review.
7. Your Company’s Outlook
a. Your Company which commenced operations in
August, 2003 is today India’s largest domestic
carrier by passengers flown and cities. Despite
aggressive capacity reduction in FY09, your
Company continued to enjoy market leadership
with a market share of over 26% whilst having a
wide network in India covering in excess of 90% of
the addressable passenger base.
b. True to its vision that says “The Kingfisher Airlines
family will consistently deliver a safe, value-based
and enjoyable travel experience to all its guests”,
your Company offers a world class product to its
guests. Besides numerous awards and accolades,
your Company is the only airline with a ‘5-star’
rating (sixth in the world and the only domestic
airline in the world) by Skytrax.
c. During FY09, the airline transitioned its low fare
product from “Air Deccan” to the new and vibrant
33

34
“Kingfisher Red” (KFR) class of service. KFR went
through the following product enhancements:
• Enhanced distribution width through enrollment
on the GDS system.
• Enhanced consumer service delivery across
airport and all other consumer touch points.
• Enhanced in-flight service through provision of
“best in class" meals free of cost.
• Enhanced consumer value through provision of
frequent flyer program.
d. Your Company also commenced international
operations on Airbus A330 to the prestigious
London market; one of the highest traffic markets
for Indians from Bangalore and Mumbai. Your
airline also started operations to Colombo from
Bangalore and Chennai. However, for commercial
reasons, your Company is discontinuing services
on Bangalore – London and Bangalore – Colombo
routes from September 15, 2009.
e. Your Company has been on the forefront for
capacity correction to control the slowdown in the
market, reducing operating domestic capacity by
over 20% over the last Fiscal. It has returned 11
aircraft deemed excess in FY09, deferred aircraft
deliveries, rationalized route network, and
transferred certain seats of your Company’s route
network to a single class low fare product in-order
to effectively compete with low fare carriers.
f. As per the Naresh Chandra Committee Report,
Aviation Sector is an essential value addition
for a vast geography like India because of the
substantial impact it has towards the GDP growth
of the country. The sector has created a direct
employment opportunity to over 100,000 and
further to over 600,000 indirectly.
8. Opportunities and Threats, Risks and Concerns
a. Your Company has undertaken a phased approach
towards capacity additions as well as expansion
in both the domestic and international markets.
Progressive policies initiated by the Government
as regards new bilateral agreements with various
countries provide conducive framework for
expansion of international operations.
Management Discussion and Analysis Report (Contd.)
b. Your Company will closely monitor market
developments as well as the macro-economic
environment in the country from a global
perspective. Your Company is well-placed to
take advantage of emerging business and tourist
destinations in the country as well as augment
services in case of established routes in order to
further strengthen its domestic network.
c. Your company continues to be at the forefront
with regard to undertaking measures to improve
profitability / reduce losses, including :
• Planning for reduced / phased capacity
induction
• Deferring of aircraft deliveries as may be
possible on the basis of induction plan
• Rationalization of route structures
• Optimization of human resources including
cross-utilization
• Review of distribution channels and costs
d. Representations to the Ministry of Civil Aviation
for relief in case of ATF costs, reduction of landing
and navigation charges, against levy of additional
airport charges, flexibility in case of Route Dispersal
Guidelines, permission for self-handling at all
airports, etc. The volatility in the prices of Aviation
Turbine Fuel (ATF) as witnessed in the past few
months continues to have significant impact on
airline profitability. Discussions are ongoing with
the Ministry of Civil Aviation for reduction in the
exorbitant rate of taxes and duties on ATF. Your
Company is also seeking to manage the adverse
effects of steep increases in ATF prices by actively
managing fuel consumption.
e. The domestic market in the country continues
to witness overcapacity in case of certain routes.
However, with slow-down in capacity expansion,
airlines are expected to rationalize capacity as well
as pricing policies going forward.
f. Government initiatives as regards aviation
infrastructure development including efforts to
reduce congestion at key airports such as Mumbai
and Delhi have to be expedited.
g. The slow-down in global economies could further
adversely impact air traffic in the country in case of

Management Discussion and Analysis Report (Contd.)
both domestic and international routes. Besides,
factors such as political instability, weather
conditions, bird hits, epidemics, pandemics,
increased security measures, force majeure
events, terrorist attacks and other acts of violence
or war involving India, or other countries and
other acts or potential acts of violence or war
or natural calamity could adversely impact the
aviation industry.
9. Awards and Accolades
Significant awards and accolades received by your
Company during the period under review include:
a. Your Company has received 2 global awards:
‘Best Airline in Central Asia’ at the SKYTRAX
World Airline Awards.
Kingfisher RED named ‘Best Low Cost Airline
in Central Asia’ at the SKYTRAX World Airline
Awards.
b. Your Company’s frequent flyer programme, King
Club has won 2 global awards at Freddie awards:
‘Best Bonus Promotion’ at Freddie Awards
2008.
‘Best Customer Service’ at Freddie Awards
2008.
c. Rated as India’s “Top Airline Brand” in a survey
conducted by TNS on 'Asia Pacific's Top 1,000
Brands' for 2008.
d. Winner of the NDTV Business Leadership Award,
for the second time in 2008.
Cautionary Statement
Statements in the management discussion and analysis
describing your Company’s objectives, projections,
estimates, expectations may be ‘forward-looking statement’
within the meaning of applicable securities laws and
regulations. Actual results could differ materially from those
expressed or implied. Important factors that could make a
difference to your Company’s operations include economic
conditions in the domestic markets and overseas markets in
which your Company operates, changes in the Government
Regulations, tax laws and other statutes and incidental
factors.
35

TO
THE MEMBERS OF KINGFISHER AIRLINES LIMITED
(FORMERLY KNOWN AS DECCAN AVIATION LIMITED)
36
1. We have audited the attached Balance Sheet of
Kingfisher Airlines Limited (formerly known as Deccan
Aviation Limited) (“the Company”) as at March 31,
2009, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility
of the Company’s management. Our responsibility is to
express an opinion on these financial statements based
on our audit.
2. We conducted our audit in accordance with auditing
standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatement. An
audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the
accounting principles used and significant estimates
made by management, as well as evaluating the overall
financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order,
2003 issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies
Act, 1956 (“the Act”), as amended by the Companies
(Auditor’s Report) (Amendment) Order, 2004 (herein
after collectively referred to as the “Order”) we enclose
in the annexure a statement on matters specified in
paragraphs 4 and 5 of the Order.
4. The working results for the nine months ended March
31, 2008 was after charging off sums of Rs. 28,270,478
and Rs. 2,628,571 towards amortization of training
and preoperative expenses respectively based on
the Company’s accounting policy of amortizing the
said expenditure over a period of 3 years. We are of
the opinion that such accounting treatment is not in
accordance with (AS) 26 on “Intangible Assets” issued
by the Institute of Chartered Accountants of India and
such expenses were required to be written off to the
profit and loss account as and when incurred. However,
this has no impact on the current year’s Profit and Loss
Account.
5. Other Income for the fifteen months ended June 30,
2006 included a sum of Rs. 267,220,000 towards certain
Auditors' Report
subsidy provided to the Company by one of its suppliers
in conjunction with lease of aircrafts on operating lease
basis. The previous auditors had reported that they
were of the opinion that such accounting treatment
was not in accordance with Accounting Standard 19
on “Leases” and the subsidy should be recorded on a
straight-line basis over the period of the lease. Their
audit report on the financial statements for the fifteen
months ended June 30, 2006 was modified in this
matter. We concur with the views of the said auditors
in principle that such subsidy should be recognized on a
systematic basis in the Profit and Loss Account over the
periods necessary to match them with the related costs,
which they are intended to compensate although the
matter does not appear to be covered explicitly by the
said AS 19.
6. The Company novated its rights in certain aircrafts
purchase agreements during the year in favor of certain
lessors and took such aircrafts back on operating lease
from the same persons. The Company incurred a loss
of Rs. 1,362,960,844 on such novation (including
interest on loans borrowed for making pre-delivery
payments to aircraft manufacturers of Rs. 530,533,750).
In the absence of an independent valuation report, we
have relied on the representations of the management
that the novation was not established at fair value, the
fair value of the aircrafts is at least equal to or more
than the cost of acquisition and the preconditions
specified in AS 19 for deferring the said loss are
satisfied. We do not express any independent opinion
in the matter.
7. We further report that, except for the effect, if any,
of the matters stated in paragraphs 6 above and 13(a)
below and note 31 of Schedule 19, whose effect are
not ascertainable, had the observations made in
paragraphs 4 & 5 above been considered, the loss after
tax for the year ended March 31, 2009 would have been
Rs. 16,040,796,016 (March 31, 2008 – Rs. 1,814,834,524)
as against the reported loss of Rs. 16,088,299,349
(March 31, 2008 – Rs. 1,881,361,073), the debit balance
in profit and loss account as at March 31, 2009 would
have been Rs. 25,886,490,461 (March 31, 2008 –
Rs. 9,845,694,445) as against the reported figure of
Rs. 25,765,856,572 (March 31, 2008 – Rs. 9,677,557,223)
and other liabilities would have been Rs. 3,597,561,827
(March 31, 2008 – Rs. 680,362,049) as against the
reported figure of Rs. 3,476,927,938 (March 31, 2008 –
Rs. 512,224,827).

Auditors' Report (Contd.)
8. As a result of the changes in the methods of accounting
referred to in notes 34 to 36 of schedule 19, the loss for
the year before tax expense, loss for the year after tax
expense and debit balance in Profit and Loss Account as
at March 31, 2009 stand reduced by Rs. 12,607,833,100,
Rs. 11,432,697,935 and Rs. 11,432,697,935 respectively.
9. Without qualifying our opinion, attention of the
members is invited to note 30 of schedule 19, regarding
the reasons for preparing the financial statements of
the Company on a going concern basis, notwithstanding
the fact that its net worth is completely eroded.
Further to our comments in the annexure referred to
above, we report that:
10. We have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purpose of our audit.
11. In our opinion, the Company has kept proper books of
account as required by Law so far as appears from our
examination of those books.
12. The Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report are in
agreement with the books of account.
13. (a) Attention of the members is invited to note 19
of schedule 19 regarding recognition of deferred
tax credit during the year aggregating to
Rs. 5,588,761,517 (period ended March 31, 2008
Rs. 4,984,997,384) (Total amount recognized up
to March 31, 2009 Rs. 16,697,320,245) by virtue
of which its loss for the year and debit balance
in Profit and Loss Account each stand reduced by
Rs. 5,588,761,517 (Period ended March 31, 2008
Rs. 4,984,997,384) and Rs. 16,697,320,245 (As at
March 31, 2008 Rs. 4,984,997,384) respectively. In
view of explanation 1 to clause 17 of Accounting
Standard 22, we cannot express any independent
opinion in the matter.
(b) In our opinion, subject to the effect of the matters
stated in paras 4 to 6 and 13(a) above, the Balance
Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply in all
material respects, with the mandatory Accounting
Standards referred to in sub-section (3C) of section
211 of the Act.
14. On the basis of written representations received from
Directors as on March 31, 2009 and taken on record
by the Board of Directors, we report that none of the
Directors of the Company, are disqualified as on that
date from being appointed as a director, under clause (g)
of sub-section (1) of section 274 of the Act.
15. In our opinion and to the best of our knowledge
and according to the information and explanations
given to us, the said accounts subject to note 26 of
schedule 19 and read with other notes on accounts,
give the information required by the Act in the manner
so required and subject to the effect of the matters
stated in paras 4 to 7 & 13(a) above, our observations
in para 4 of the annexure and note 31 of schedule 19
regarding the basis of estimation of unflown revenue
as at March 31, 2009 (effect thereof on revenue not
ascertainable) give a true and fair view in conformity
with the accounting principles generally accepted in
India
i. In the case of the Balance Sheet, of the state of
affairs of the Company as at March 31, 2009;
ii. In the case of Profit and Loss account, of the loss
for the year ended on that date; and
iii. In the case of Cash Flow statement, of the cash
flows for the year ended on that date.
For B. K. RAMADHYANI & CO.
Chartered Accountants
Bangalore (R. Satyanarayana Murthi)
July 28, 2009 Partner
Membership No. 24248
B. K. Ramadhyani & Co.
Chartered Accountants
4B, Chitrapur Bhavan
No. 68, 8 th Main, 15 th Cross
Malleswaram
Bangalore – 560 055
37

(AS REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN
DATE TO THE MEMBERS OF KINGFISHER AIRLINES LIMITED
(FORMERLY KNOWN AS DECCAN AVIATION LIMITED)
38
1. a. The Company has maintained proper records showing
full particulars including quantitative details and
situation of fixed assets.
b. A portion of the fixed assets have been physically
verified by the management during the year. We
understand that no material discrepancies were
noticed on such verification. We understand that a
comprehensive verification of all fixed assets and
incorporation of comprehensive description of assets
and current location in the asset records is proposed
to be carried out in the current year.
c. There was no substantial disposal of fixed assets
during the year.
2. a. Management has conducted physical verification of
inventory at reasonable intervals during the year.
b. The procedures of physical verification of inventories
followed by the management are reasonable and
adequate in relation to the size of the Company and
the nature of its business.
c. No material discrepancies were noticed on physical
verification.
3. a. As informed, the Company has not granted any loans,
secured or unsecured to companies, firms or other
parties covered in the register maintained under
section 301 of the Act.
b. As informed, the Company has taken loans from a
company covered in the register maintained under
section 301 of the Act. The total amount outstanding
as at year end was Rs. 976,100,000 and the maximum
amount outstanding at any time during the year
was Rs. 976,100,000. The rate of interest and the
terms and conditions on which the said loans are
taken is not prima-facie prejudicial to the interests
of the Company. No stipulations for repayment have
been prescribed and as such no comments regarding
regularity of payments are being made. Interest
aggregating to Rs. 133,469,737 was payable as on
March 31, 2009.
4. In our opinion and according to the information and
explanation given to us, and taking into consideration
management’s representation that a large number
of items are of a special nature for which alternative
quotations cannot be obtained, there are adequate
internal control procedures commensurate with the size
of the Company and the nature of its business for the
purchases of inventory and fixed assets. However, internal
control procedures in respect of sale of services (refer
Annexure to the Auditors' Report
notes 31 to 33 of schedule 19) need to be strengthened
to make the same commensurate with its size and the
nature of its business and for the sale of services. During
the course of our audit, no continuing failure to correct
major weakness in internal controls has been noticed.
5. a. According to the information and explanations given
to us, we are of the opinion that transactions that
need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have
been so entered.
b. Further, contracts or arrangements referred to
in section 301 of the Act and aggregating to Rs.
500,000 or more per party have been entered into at
prices which are reasonable as compared to similar
services rendered to other parties except in respect
of advertisement and sales promotional expenses
of Rs.29,760,481 where we are unable to make any
comments on reasonability of rates since there were
no similar transactions with third parties at the
relevant time.
6. The Company has not accepted any deposits from the
public.
7. The Company has an internal audit system commensurate
with the size and nature of its business.
8. To the best of our knowledge and as explained, the
Central Government has not prescribed the maintenance
of cost records under section 209(1) (d) of the Act for the
products of the Company.
9. a. Undisputed statutory dues in respect of service tax,
withholding taxes, provident fund, fringe benefit tax
and employees’ state insurance dues have not been
regularly deposited with the appropriate authorities.
Undisputed statutory dues in respect of investor
education and protection fund, customs, excise duty,
cess and wealth tax as applicable, have generally
been regularly deposited with the appropriate
authorities. Since to the best of our knowledge, the
Central Government has till date not prescribed the
amount of cess payable under section 441A of the
Act, no comments in this respect have been made.
b. According to the information and explanations given
to us :-
(i) No amounts were outstanding as at year end on
account of undisputed amounts payable in respect
of provident fund, employees’ state insurance,
investor protection and promotion fund, wealth
tax, sales tax, customs duty, excise duty, and cess
for a period of more than six months from the
date they became payable.

Annexure to the Auditors' Report (Contd.)
(ii) Undisputed amounts payable in respect of tax
deducted at source of Rs. 1,113,000,831, service tax
of Rs. 28,064,601, professional tax of Rs. 222,868
(in all cases relating to the years 2007-08 and
2008-09) and fringe benefit tax of Rs. 52,616,277
(first and second installments of advance tax
payable for the year 2008-09) were outstanding
for a period of more than six months from the
date they became payable (excluding applicable
interest). The due dates for these amounts are as
per respective statutes.
c. According to the information and explanations given
to us, dues aggregating to Rs. 272,155,247 (relating
to assessment years 2007 - 2008 and 2008 - 2009) had
not been deposited as at March 31, 2009 (on account
of withholding tax under the Income Tax Act, 1961)
on account of disputes. Appeals are pending before
the Commissioner of Income Tax (Appeals).
10. The Company’s accumulated losses at the end of the
financial year were more than fifty percent of its net
worth. The Company has incurred cash losses during the
financial year and in the immediately preceding financial
period.
11. Based on our audit procedures and as per the information
and explanations given by the management, the Company
has defaulted in repayment of loans and interest to banks
and financial institutions. Delays ranging up to 61 days
(in payment of overdue installment) and up to 84 days
(in payment of overdue interest) were noticed in several
months. The unpaid overdue installments and interest
to banks as at March 31, 2009 was Rs. 270,330,602 and
Rs. 219,036,316 respectively. The unpaid overdue
interest to financial institutions as at March 31, 2009 was
Rs. 4,025,178. We understand that these amounts have
been paid after March 31, 2009. There were no dues
payable to the debenture holders.
12. According to the information and explanations
given to us and based on the documents and records
produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge
of shares, debentures and other securities. Accordingly,
the provisions of the clause 4(xii) of the Order are not
applicable to the Company.
13. In our opinion, the Company is not a chit fund or a nidhi,
mutual benefit fund / society. Accordingly, the provisions
of the clause 4(xiii) of the Order are not applicable to the
Company.
14. In our opinion the Company is not dealing in or trading
in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order
are not applicable to the Company.
15. According to the information and explanations given to
us, the Company has not given guarantees during the
year for loans taken by others from banks or financial
institutions. Accordingly, the provisions of clause 4(xv) of
the Order are not applicable to the Company.
16. Based on information and explanations given to us by
the management, term loans taken during the year
have been applied for the purpose for which they were
obtained.
17. According to the information and explanations given to
us and on an overall examination of the balance sheet
of the company, we report that funds raised on short-
term basis (including increase in current liabilities as at
March 31, 2009 as compared to March 31, 2008) to an
aggregate extent of Rs. 46,302,002,577 have been used
for long term investment as at March 31, 2009.
18. The Company has not made any preferential allotment
of shares to parties or companies covered in the register
maintained under section 301 of the Act. Accordingly,
the provisions of clause 4(xviii) of the Order are not
applicable to the Company.
19. There were no debentures outstanding at any time
during the year. Accordingly, the provisions of clause
4(xix) of the Order are not applicable to the Company.
20. We have verified the end use of money raised by public
issue during the period ended June 30, 2006 and incurred
during the current year and the same has been disclosed
in the notes to the financial statements (Refer note 5 of
schedule 19).
21. As per the information and explanations furnished to
us by the management, no material frauds on or by
the Company and causing material misstatements to
financial statements have been noticed or reported
during the course of our audit, except for charge backs
received by the Company aggregating to Rs. 437,328,467
from credit card service providers due to misutilisation
of credit cards by third parties (Refer Note 33 of
schedule 19).
For B. K. RAMADHYANI & CO.
Chartered Accountants
Bangalore (R. Satyanarayana Murthi)
July 28, 2009 Partner
Membership No. 24248
B. K. Ramadhyani & Co.
Chartered Accountants
4B, Chitrapur Bhavan
No. 68, 8 th Main, 15 th Cross
Malleswaram
Bangalore – 560 055
39

40
Balance Sheet as at March 31, 2009
Schedules
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 3,629,088,830 1,357,985,030
Employees Stock Option Outstanding (Net of deferred compensation cost) 81,094,419 100,878,940
Reserves and Surplus 2 802,218,525 10,207,416,756
4,512,401,774 11,666,280,726
Loan Funds
Secured Loans 3A 26,225,211,655 5,923,827,595
Unsecured Loans 3B 30,430,373,920 3,420,000,000
56,655,585,575 9,343,827,595
TOTAL 61,167,987,349 21,010,108,321
APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 18,918,023,771 3,223,346,286
Less : Depreciation / Amortisation 3,162,858,274 435,531,098
Net Block 15,755,165,497 2,787,815,188
Capital Work-in-Progress 16,309,464,581 3,462,459,288
32,064,630,078 6,250,274,476
Investments 5 500,000 -
Deferred Tax Asset
Deferred Tax Asset 20,340,849,905 5,288,120,350
Less: Deferred Tax Liability 3,643,529,660 303,122,966
16,697,320,245 4,984,997,384
Current Assets, Loans and Advances
Inventories 6 1,472,468,970 486,435,481
Sundry Debtors 7 2,298,361,124 271,606,013
Cash and Bank Balances 8 1,718,670,425 2,801,223,361
Other Current Assets 9 39,746,104 910,536,902
Loans and Advances 10 14,359,110,863 1,995,718,638
19,888,357,486 6,465,520,395
Less: Current Liabilities and Provisions 11
Current Liabilities 34,502,786,574 6,569,976,348
Provisions 455,458,082 95,177,231
34,958,244,656 6,665,153,579
Net Current Assets (15,069,887,170) (199,633,184)
Initial Cost on Leased Aircrafts 12 1,664,479,860 130,473,890
Miscellaneous Expenditure (To the extent not written off) 13 45,087,764 166,438,532
Profit and Loss Account 25,765,856,572 9,677,557,223
TOTAL 61,167,987,349 21,010,108,321
Notes and additional information 19
As per our report of even date
For B. K. Ramadhyani & Co. For and on behalf of the Board of Directors
Chartered Accountants
R. Satyanarayana Murthi Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Partner Chairman & Managing Director Director Director
Membership No. 24248
Bangalore Bangalore A. Raghunathan N. Srivatsa
July 28, 2009 July 28, 2009 Chief Financial Officer Company Secretary

Profit and Loss Account for the year ended March 31, 2009
Schedules
Year
ended
March 31, 2009
Rupees
Nine Months
ended
March 31, 2008
Rupees
INCOME
Income from Services 14 52,691,706,806 14,413,948,838
Other Income 15 3,083,025,358 1,040,483,067
TOTAL 55,774,732,164 15,454,431,905
EXPENDITURE
Employees’ Costs 16 8,238,523,122 2,457,763,768
Aircraft Fuel Expenses 26,026,207,816 8,892,963,244
Aircraft / Engine Lease Rentals 11,851,321,991 3,547,325,084
Operating and Other Expenses 17A 25,465,418,188 6,757,187,622
Depreciation on fixed assets 1,332,003,732 182,807,412
Amortisations 17B 383,888,748 183,131,655
Interest 18 6,962,319,453 503,749,696
Maintenance Rent Reversed (Refer Note 34 on Schedule 19) (5,308,244,068) -
TOTAL 74,951,438,982 22,524,928,481
Loss before Tax and exceptional items 19,176,706,818 7,070,496,576
Add: Exceptional Item (Refer Note 37 on Schedule 19) 2,375,354,048 -
Profit on sale of charter services operations undertaking - (244,598,527)
Loss after exceptional items but before tax expense 21,552,060,866 6,825,898,049
Provision for Tax expense
– Current Tax - -
– Deferred Tax Charge (5,588,761,517) (4,980,026,734)
– Fringe Benefit Tax 125,000,000 35,489,758
Loss After Tax expense 16,088,299,349 1,881,361,073
Balance in Profit and Loss Account - Loss balance brought forward from
previous period / year 9,677,557,223 7,786,542,942
Add: Provision for Gratuity and Leave Encashment as on July 1, 2007 in terms
of transitional provisions of AS 15 (revised) - 9,653,208
Loss carried to Balance Sheet 25,765,856,572 9,677,557,223
Loss per share before extraordinary items (par value Rs. 10/) - basic and diluted 65.28 14.85
Loss per share after extraordinary items (par value Rs. 10/) - basic and diluted 72.33 13.87
Weighted average number of equity shares 222,434,428 135,668,051
Notes and additional information 19
As per our report of even date
For B. K. Ramadhyani & Co. For and on behalf of the Board of Directors
Chartered Accountants
R. Satyanarayana Murthi Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Partner Chairman & Managing Director Director Director
Membership No. 24248
Bangalore Bangalore A. Raghunathan N. Srivatsa
July 28, 2009 July 28, 2009 Chief Financial Officer Company Secretary
41

42
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
SCHEDULE - 1
Share Capital
Authorised:
400,000,000 (March 31, 2008 - 400,000,000) equity shares of Rs. 10/- each 4,000,000,000 4,000,000,000
10,000,000 6% (March 31, 2008 - 10,000,000) Redeemable Non Cumulative
Preference shares of Rs. 100/- each 1,000,000,000 1,000,000,000
TOTAL 5,000,000,000 5,000,000,000
Issued, Subscribed and Paid-up :
265,908,883 (March 31, 2008 - 135,798,503) equity shares of Rs. 10/- each 2,659,088,830 1,357,985,030
9,700,000 6% (March 31, 2008 - Nil) Redeemable Non Cumulative Preference
Shares of Rs. 100/- each 970,000,000 -
3,629,088,830 1,357,985,030
Notes:
1) Refer Note 2(d) and Note 4 on Schedule 19.
2) Out of the above, 27,284,390 (March 31, 2008 - 27,284,390) equity shares of Rs. 10/- each have been allotted as fully
paid up bonus shares by capitalisation of securities premium of Rs. 253,750,200 (March 31, 2008 - Rs. 253,750,200) and
balance in Profit & Loss Account of Rs. 19,093,700 (March 31, 2008 - Rs. 19,093,700).
3) Number of shares held by the Holding Company & its Subsidiaries
(as certified by the management)
Equity Shares - 176,217,925.
Preference Shares - 9,700,000.
4) 6% Redeemable Non-Cummulative Preference Shares are redeemable on such date as may be decided by the Board
of Directors but expiring not later than twenty years from the date of issue.
SCHEDULE - 2
Reserves and Surplus
Securities Premium
Balance as at the beginning of the year / period 10,207,416,756 10,168,677,178
Add: Received during the year / period 8,360,537 38,739,578
Less : Adjusted against Goodwill pursuant to the Scheme (Refer Note 2(e) on
Schedule 19) (9,413,558,768) -
802,218,525 10,207,416,756
SCHEDULE - 3A
Secured Loans
A. Term Loans from Banks (Rupee Loans) 8,068,727,497 1,567,514,992
B. Cash Credit / Overdraft facility from Banks 3,479,024,270 172,970,477
C. Short Term Loans from Banks 4,270,791,914 2,485,281,100
D. Vehicle Loan from Banks 4,802,830 10,300,130
E. Finance Lease Obligations 9,405,596,250 1,058,217,086
F. Term Loan from Others 996,268,894 629,543,810
26,225,211,655 5,923,827,595

Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009 (Contd.)
Notes:
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
1) Long Term Loans from banks are secured as given below:
Security Offered
Fixed assets of the company other than Kingfisher House and
Ground Handling Equipments 84,748,038 -
Helicopters 815,844,215 -
Assignment of Rights under Purchase Agreement entered with Aircraft
Manufacturer for purchase of Aircrafts. 6,156,669,745 1,561,981,135
Second Charge on Current Assets 1,011,465,499 5,533,857
PDP loans of Rs. 672,141,771 (March 31, 2008 - Rs. 1,561,981,135) is
secured by personal guarantee of certain directors.
2) Cash credit facilities from banks are secured by a first charge on the current
assets of the company, including hypothecation of the present and future stocks
and receivables on a pari-passu basis. Cash Credit from banks amounting to
Rs. 206,512,629 (March 31, 2008 - Nil) have been secured by personal
guarantee of certain directors.
3) Short Term Loans from banks are secured as given below:
Security Offered
Fixed assets of the company other than Kingfisher House and
Ground handling equipments 506,799,571 -
Kingfisher House 1,669,726,978 -
Pari passu charge on Current assets 2,094,265,365 -
Fixed deposits - 2,485,281,100
4) Vehicle loans are secured by the hypothecation of the respective assets.
5) Finance lease is secured by the hypothecation of the respective assets.
6) Term Loans from Others are secured as given below:
Security offered
Hypothecation of the aircraft, assignment of documents of title to
such assets. Loans to an extent of Rs. 492,421,257 (March 31, 2008 - Rs.
542,252,163) is secured by personal guarantee of certain directors. 507,473,555 542,252,163
Second priority on the mortgage of aircraft. 488,795,339 87,291,647
7) Amount repayable within one year Rs. 9,477,690,682
(March 31, 2008 – Rs. 3,699,214,795).
SCHEDULE - 3B
Unsecured Loans
A. Long Term Loan from Banks 12,074,807,626 3,400,000,000
B. Short Term Loan from Banks 11,088,676,133 -
C. Term Loan from Others 7,266,890,161 20,000,000
30,430,373,920 3,420,000,000
Notes:
1) Short Term Loan (including interest accrued and due) of Rs. 1,265,724,118 is secured by personal guarantee of certain
directors.
2) Amount repayable within one year Rs. 15,620,911,443 (March 31, 2008 – Rs. 320,000,000).
43

44
SCHEDULE - 4
Fixed Assets (Rupees)
Gross Block Depreciation / Amortisation Net Block
As at
March 31,
2008
As at
March 31,
2009
As at
March 31,
2009
On
Deletions
For the
year
Adjustment
(Refer Note 2
below)
As at
April 1, 2008
As at
March 31,
2009
Deletions
during the
year
Additions
during the
year
Adjustment
(Refer Note 2
below)
Particulars As at
April 1, 2008
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009 (Contd.)
Owned Assets
Intangible Assets
Computer Software 64,730,359 40,144,148 17,036,990 22,272,351 99,639,146 21,450,360 14,994,681 36,797,318 11,486,657 61,755,702 37,883,444 43,279,999
Trademarks (Refer Note 1 below) - 10,000,000 - - 10,000,000 - 3,356,164 2,500,000 - 5,856,164 4,143,836 -
Design - Aircraft Interiors - 18,926,869 5,718,808 - 24,645,677 - 4,689,994 350,811 - 5,040,805 19,604,872 -
Non Compete Fees - 300,000,000 - - 300,000,000 - 10,163,934 60,000,000 - 70,163,934 229,836,066 -
Tangible Assets
Land & Buildings (Refer Note 3
below) - - 299,280,000 - 299,280,000 - - 2,231,973 - 2,231,973 297,048,027 -
Building on Rented Land 86,585,820 - - - 86,585,820 588,062 - 1,284,376 - 1,872,438 84,713,382 85,997,758
Leasehold Improvements -
on Buildings 2,722,770 100,019,864 62,643,577 - 165,386,211 54,620 49,198,151 33,405,384 - 82,658,155 82,728,056 2,668,150
- on Aircraft 150,892,044 734,947,777 25,066,321 37,164,381 873,741,761 46,793,364 192,115,191 182,831,042 14,296,335 407,443,262 466,298,499 104,098,680
Ground Support and Other
Equipment 380,611,622 675,176,534 242,207,123 - 1,297,995,279 40,940,617 43,352,772 85,234,357 - 169,527,746 1,128,467,533 339,671,005
Computers 116,910,035 280,854,002 121,986,861 - 519,750,898 41,861,792 57,594,870 77,254,270 - 176,710,932 343,039,966 75,048,243
Office Equipment 60,483,372 67,714,340 37,774,868 - 165,972,580 8,363,350 6,500,953 10,835,057 - 25,699,360 140,273,220 52,120,022
Furniture and Fixtures 161,635,731 199,853,799 48,653,378 - 410,142,908 25,438,317 26,087,664 31,333,529 - 82,859,510 327,283,398 136,197,414
Vehicles 28,237,837 186,991,770 1,349,277 - 216,578,884 4,614,072 28,311,914 20,546,414 - 53,472,400 163,106,484 23,623,765
Aircraft & Helicopter 616,929,244 - 1,063,298,750 - 1,680,227,994 38,651,900 - 76,645,252 - 115,297,152 1,564,930,842 578,277,344
Leased Assets
Aircrafts 1,486,800,342 11,159,539,163 54,929,998 - 12,701,269,503 197,416,184 984,740,148 709,975,701 - 1,892,132,033 10,809,137,470 1,289,384,158
Plant & Machinery 66,807,110 - - - 66,807,110 9,358,460 - 778,248 - 10,136,708 56,670,402 57,448,650
3,223,346,286 13,774,168,266 1,979,945,951 59,436,732 18,918,023,771 435,531,098 1,421,106,436 1,332,003,732 25,782,992 3,162,858,274 15,755,165,497 2,787,815,188
Previous Period 3,407,716,141 - 392,687,140 577,056,995 3,223,346,286 337,407,916 - 182,807,412 84,684,230 435,531,098 16,309,464,581 3,462,459,288
Capital Work-in-Progress (Refer Note 14 on Schedule 19) 32,064,630,078 6,250,274,476
Notes :
1) Certain Trademarks are pending registration.
2) Represents gross block and accumulated depreciation accquired pursuant to the Scheme.
3) Land and Buildings were purchased for a consoildated amount. Value of Land and Buildings have not been segregated. Depreciation has been provided on
the entire amount.
4) Additions and deletions do not include aircrafts, in respect of which rights to purchase have been transferred.

Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009 (Contd.)
SCHEDULE - 5
Investments
Long Term (at Cost)
Trade (unquoted), fully paid up
In Subsidiary
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
50,000 equity shares of Rs. 10/- each fully paid up
in Vitae India Spirits Limited 500,000 -
500,000 -
Aggregate value of unquoted investments at cost 500,000 -
SCHEDULE - 6
Inventories
(Refer Note 3(j) on Schedule 19 )
Rotables, Tools and Engineering Consumables 1,217,941,220 486,435,481
Less: Provision for Obsolescence 72,905,560 -
1,145,035,660 486,435,481
Inflight Stores and Consumables 318,251,001 -
Fuel 9,182,309 -
SCHEDULE - 7
Sundry Debtors
(Unsecured and considered good)
1,472,468,970 486,435,481
Debts for the period exceeding six months 29,429,516 2,089,661
Other Debts, considered good 2,268,931,608 269,516,352
2,298,361,124 271,606,013
45

SCHEDULE - 8
46
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
Cash and Bank Balances
Cash on hand * 13,102,142 4,987,725
Balances with Scheduled Banks:
- On Current Accounts 458,899,897 53,381,489
- On Deposit Accounts 1,224,544,308 2,742,854,147
(includes Rs. 7,540,628 pledged with airport authorities and Rs. 92,611,894 (March 31, 2008
Rs. 337,094,049) under lien with banks towards guarantees / letters of credit issued by them)
Balances with Non Scheduled Banks:
- On Current Accounts 22,124,078 -
Closing balance as at the year end
First Commerce Bank - I $ 21,568 (March 31, 2008 - Nil)
First Commerce Bank - II $ 1,000 (March 31, 2008 - Nil)
HSBC Bank UK - I GBP 641 (March 31, 2008 - Nil)
HSBC Bank UK - II GBP 100,774 (March 31, 2008 - Nil)
HSBC Bank UK (Euro) - EURO 893 (March 31, 2008 - Nil)
HSBC Bank UK (USD) - $ 8,223 (March 31, 2008 - Nil)
Citibank New York - $ 345,128 (March 31, 2008 - Nil)
Maximum amount outstanding during the year
First Commerce Bank - I $ 8,675,250 (March 31, 2008 - Nil)
First Commerce Bank - II $ 1,000 (March 31, 2008 - Nil)
HSBC Bank UK - I GBP 540,556 (March 31, 2008 - Nil)
HSBC Bank UK - II GBP 6,889,136 (March 31, 2008 - Nil)
HSBC Bank UK (Euro) - EURO 4,100 (March 31, 2008 - Nil)
HSBC Bank UK (USD) - $ 17,056 (March 31, 2008 - Nil)
Citibank New York $ 2,424,486 (March 31, 2008 - Nil)
* Includes Cash of Rs. 287,000 on which restriction is placed by the High Court Of Karnataka.
SCHEDULE - 9
Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009 (Contd.)
1,718,670,425 2,801,223,361
Other Current Assets
Accrued interest on Deposits with Banks 39,551,745 150,865,352
Receivable from Deccan Charters Limited 194,359 759,671,550
39,746,104 910,536,902
SCHEDULE - 10
Loans and Advances
(Unsecured and considered good, unless otherwise stated)
Advances recoverable in cash or in kind or for value to be received 3,675,376,528 458,639,684
Deposits with Lessors towards:
- Aircraft 1,763,699,033 891,817,027
- Aircraft Major Maintenance 6,714,311,469 -
8,478,010,502 891,817,027
Deposits with :
- Airport Authorities 180,627,356 34,990,365
- Other Parties 496,758,504 80,526,515
677,385,860 115,516,880
Duty Free Credit Entitlement Receivable 57,532,441 -
Service Tax Credit Receivable 1,344,815,433 434,035,713
Tax Deducted at Source 125,990,099 95,709,334
14,359,110,863 1,995,718,638
Notes:
1) Advances recoverable in cash or in kind include Nil (March 31, 2008 - Rs. 4,238,764) due from Deccan Cargo Private Limited,
in which some of the directors of the company are interested as directors. Maximum amount outstanding during the year
Rs. 4,238,764 (Previous Period - Rs. 20,760,269).

Schedules annexed to and forming part of the Balance Sheet as at March 31, 2009 (Contd.)
SCHEDULE - 11
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
Current Liabilities and Provisions
Current Liabilities:
Acceptances 25,624,521 -
Sundry Creditors 28,343,113,082 4,064,512,996
Deposits 318,287,721 231,284,289
Advances Received / Forward Sales (Refer Note 31 on Schedule 19) 2,218,765,845 1,540,127,091
Gain on sale and lease back transaction 65,682,366 -
Less : Income for the year 4,142,131 -
61,540,235 -
Interest Accrued but not due 7,583,204 67,526,120
Temporary Overdrawn Bank Balances 50,967,953 154,024,950
Unclaimed Dividend 276,075 276,075
Other Liabilities 3,476,627,938 512,224,827
34,502,786,574 6,569,976,348
Provisions :
Provision for Wealth Tax 300,000 175,795
Fringe Benefit Tax 125,000,000 17,107,945
Gratuity 91,103,577 38,434,073
Leave Encashment / Compensated Absences 132,913,388 39,459,418
Frequent Flyer Scheme 90,248,783 -
Stamp Duty Payable (pursuant to the Scheme) (Refer Note 2(b) on Schedule 19) 15,892,334 -
455,458,082 95,177,231
SCHEDULE - 12
Initial Cost on Leased Aircrafts
(Refer Note 3(s) on Schedule 19)
Per last Balance sheet 130,473,890 164,444,650
Additions during the year (taken over pursuant to the Scheme) 162,971,958 -
Less: Amortised during the year (97,302,784) (33,970,760)
196,143,064 130,473,890
Loss on novation / assignment of rights & interest on loans taken for financing pre delivery -
payments (taken over pursuant to the Scheme) 270,611,148
Additions during the year* 1,362,960,844 -
Less: Amortised during the year (165,235,196) -
1,468,336,796 -
1,664,479,860 130,473,890
* Includes Rs. 832,427,095 representing loss on novation / assignment & Rs. 530,533,750 being
interest charges taken for financing pre delivery payments, previously capitalised.
SCHEDULE - 13
Miscellaneous Expenditure
(To the extent not written off)
Share issue expenditure 364,052,302 364,052,302
Less: Accumulated amortisation - Share issue expenditure (318,964,538) (197,613,770)
45,087,764 166,438,532
47

SCHEDULE - 14
Income from Services
(Refer Notes 3(c), 31 & 33 on Schedule 19)
48
Schedules annexed to and forming part of the
Profit and Loss Account for the year ended March 31, 2009
Year
ended
March 31, 2009
Rupees
Nine Months
ended
March 31, 2008
Rupees
Passenger* 49,720,771,696 13,696,865,595
Cargo 1,818,315,089 34,137,161
Excess Baggage 117,801,285 127,277,406
Rebooking Charges / Cancellation 1,034,818,736 206,109,224
Helicopter Charter and Other Services - 349,559,452
* Net of debit adjustment relating to prior years of Rs.1,100,664,577 (Previous
period - Nil) and credit card chargeback amount of Rs. 437,328,467 (Previous period -
Rs. 66,430,000).
SCHEDULE - 15
Other Income
52,691,706,806 14,413,948,838
Incentives received from aircraft manufacturer 255,500,000 148,900,000
Interest on deposits with banks (gross) 76,028,313 189,755,634
[Tax Deducted at Source: Rs. 14,116,184 (Previous Period : Rs. 53,060,097)]
Profit on transfer of aircraft / engine purchase rights - 249,701,063
Income on sale and lease back transaction (Refer Note 3(g) on Schedule 19) 4,142,131 -
Duty free credit entitlement 57,532,441 -
Exchange gain (Net) (Refer Notes 3(n) and 35 on Schedule 19)* 2,446,978,686 155,500,977
Miscellaneous Income 242,843,787 296,625,393
*Net of Exchange Loss on Capital Advances for 2007-2008 of Rs. 646,589,695
(Previous Period - Nil).
SCHEDULE - 16
Employees Costs
3,083,025,358 1,040,483,067
Salaries and Allowances 8,025,067,834 2,401,765,167
Contribution to Provident & other funds (Refer Note 25(b) on Schedule 19) 76,181,320 22,151,693
Gratuity (Refer Note 25(a) on Schedule 19) 21,611,404 12,353,307
Leave encashment / Compensated absences 43,212,010 3,306,847
Staff Welfare 88,111,189 6,766,264
Employee Compensation Cost (Refer Note 15 on Schedule 19) (15,660,635) 11,420,490
8,238,523,122 2,457,763,768

SCHEDULE - 19
Notes to the financial statements for the year ended March 31, 2009
1. Background
50
Schedules forming part of accounts for the year ended March 31, 2009
Kingfisher Airlines Limited (formerly known as Deccan Aviation Limited) (“the Company”) is engaged in rendering
scheduled and unscheduled aircraft passenger services, including charter services. The Company was incorporated on
June 15, 1995 as a private limited company and converted itself into a public limited company on January 31, 2005.
Consequently the Company changed its name from Deccan Aviation Private Limited to Deccan Aviation Limited. On June
12, 2006, the Company’s shares were listed on the Bombay Stock Exchange Limited and the National Stock Exchange
Limited, pursuant to the Company’s initial public offer of shares. The Company changed its name from Deccan Aviation
Limited to Kingfisher Airlines Limited, with effect from September 5, 2008.
2. Demerger of the commercial airline division of Kingfisher Training and Aviation Services Limited
a) The Hon’ble High Court of Karnataka approved a Scheme of Arrangement vide its order dated June 16, 2008 under
Sections 391 to 394 of the Companies Act, 1956 (“Scheme”), which inter alia resulted in the demerger of the Scheduled
airline business of Kingfisher Training and Aviation Services Limited (“KTASL”) (previously known as Kingfisher Airlines
Limited) on a going concern basis with the Company, with effect from April 1, 2008 as the demerger appointed
date.
b) The Company has filed an application with the Hon’ble High Court of Karnataka, for issue of an order under Section
394 of the Companies Act, 1956 in form 42 of the Companies (Court) Rules, 1949. Pending adjudication of the Stamp
Duty by the Hon’ble High Court and payment of the same the issue of the order in form 42 is awaited. However, the
Stamp duty payable has been provided on the basis of the said application filed by the Company with the Hon’ble
High Court of Karnataka.
c) Consequent to the Scheme, all the assets and liabilities of the commercial airline division of KTASL have vested
with the Company. The balance sheet of KTASL as at March 31, 2008, duly audited by its statutory auditors after
eliminating assets and liabilities of a division retained by it have been incorporated in the books of account as of April
1, 2008 after taking cognizance of the Scheme, particularly clause 13, part C prescribing the accounting treatment to
be followed by the Company.
d) Pursuant to the Scheme, in consideration of the demerger referred to above, three equity shares of Rs. 10/- each
in the Company for every seven equity shares of Rs. 10/- each held by the equity shareholders in KTASL and one
6% redeemable non cumulative preference shares of Rs. 100/- each in the Company for every 6% redeemable non
cumulative preference share of Rs.100/- each held in KTASL, have been allotted to the shareholders of KTASL. The
face value of such equity and preference shares aggregate to Rs. 1,300,333,500 and Rs. 970,000,000 respectively.
e) Difference between the book value of assets minus liabilities of KTASL so taken over by the Company and the face
value of shares allotted as consideration vide sub paragraph (d) amounting to Rs. 9,413,558,768 has been set-off
against the ‘Securities Premium Account’ as detailed in clause 14.1 of the Scheme read with resolution of the Board
of Directors dated July 25, 2008 pursuant to clause 25.1 of the Scheme as detailed below:
Particulars Amount (Rs.)
Book value of assets taken over 39,893,116,671
Book value of liabilities taken over 47,036,341,939
Difference (A) 7,143,225,268
Face value of Shares allotted as consideration
Equity Shares Rs. 1,300,333,500
Preference Shares Rs. 970,000,000
Total face value of Shares allotted (B) 2,270,333,500
Amount debited to Securities Premium Account (A) + (B) 9,413,558,768
f) Harmonization of accounting policies of the commercial airline division of KTASL taken over with that followed by
the Company has been made to the extent identified and adjustments required thereof have been made in the Profit
and Loss Account.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
g) Documentation in respect of transfer of certain assets and liabilities so taken over to the name of the Company are
pending. The Company is in discussion with the Registrar of companies for transfer of charges created by KTASL to its
name in respect of securities granted for loans taken over by the Company.
3. Statement of significant accounting policies
(a) Basis of preparation
The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (“GAAP”)
under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as specified
in the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a
newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use. Further, the financial statements are presented in the general format
specified in Schedule VI to the Companies Act, 1956 (‘the Act’).
(b) Use of estimates
In preparation of the financial statements in conformity with generally accepted accounting principles, estimates
and assumptions, where necessary, have made based on Management’s best knowledge and experience. Accordingly,
actual results may differ from such estimates.
(c) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
revenue can be reliably measured. Revenue from charter services is recognized based on services provided and billed
as per the terms of the contracts with the customers provided that the collection is reasonably certain. Revenue from
sale of tickets of the airline operations and cargo operations are recognized in the period in which the service is
provided, i.e. on flown / carried basis. Such revenue is net of the statutory fees to be collected from customers as per
government regulations. Unearned revenue represents consideration on sale of passenger tickets and cargo against
which the Company has to provide services in future periods and is included under Advances from customers. The
same is released to the profit and loss account as the services are rendered.
Fees for passenger initiated changes and cancellations of tickets are recognized as revenues in the period in which
such changes / cancellations are effected.
Interest income is recognized on the time proportionate method when the right to receive income is established and
that collection is reasonably certain. Income from sale of advertisement space is recognized on accrual basis over the
period the advertisements are displayed.
The Company enters into barter arrangements with other parties for advertising in exchange for the Company's
advertising in the other party's media or in exchange for other services or goods. Such transactions are recorded at
the fair value of the services / goods received from the other party, or at the fair value of the services provided by the
Company if it is not feasible to determine the fair value of the services / goods received.
(d) Fixed assets and Intangible assets
Fixed assets and intangible assets are stated at cost of acquisition less accumulated depreciation / amortization and
impairment losses (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its
working condition for its intended use and also includes cost of modification and improvements to leased assets.
Borrowing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such
assets are ready to be put to use.
Advances paid towards the acquisition of fixed assets and the cost of fixed assets not ready for intended use as of the
balance sheet date are disclosed under capital work-in-progress.
(e) Depreciation
Depreciation on fixed assets, except non-compete fees, trademarks, design – aircraft interiors, software, leasehold
improvements, is provided on a straight line basis at the rates prescribed under Schedule XIV to the Companies Act,
51

52
(e) Depreciation (Contd.)
1956 which are estimated to be the useful life of fixed assets by the management. Additions are depreciated on a
pro-rata basis from the date of installation till the date the assets are sold or disposed.
– Non-compete fees are amortized over the period of agreement (i.e. five years).
– Trademarks are amortized over the period of four years.
– Design – Aircraft Interiors are amortized over the period of seven years.
– Software is depreciated over a period of 1 - 4 years, based on estimated useful life as ascertained by the
management.
– Leasehold improvements on operating leases are depreciated over the shorter of the period of the lease and their
estimated useful lives.
– Movable cabins and mobile phones are depreciated over the period of five and two years, respectively, on a
straight-line method.
(f) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the
cost of the assets. Other borrowing costs are recognized as an expense in the period in which they are incurred.
(g) Leases – Where the Company is a lessee
Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership
of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at
the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance
charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly
against income. Lease management fees, legal charges and other initial direct costs are capitalized.
If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized
leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term.
Leases where the lessors effectively retain substantially all the risks and benefits of ownership over the leased term
are classified as operating leases. Operating lease payments including expenses incurred for bringing the leased asset
to its working condition for intended use are recognized as an expense in the Profit and Loss account on a straightline
basis over the lease term.
Profit or loss on sale and leaseback arrangements resulting in operating leases are recognized immediately in case
the transaction is established at a fair value, else the excess over the fair value is deferred and amortised over the
period for which the asset is expected to be used. If the sale price is below the fair value and the loss is compensated
by future lease payments at below market price, the same is deferred and amortised in proportion to the lease
payments over the period for which the asset is expected to be used. If the fair value at the time of sale and lease
back transaction is less than the carrying amount of the asset, a loss equal to the amount of difference between the
carrying amount and fair value is recognised immediately. In case of sale and leaseback arrangement resulting in a
finance lease, any excess or deficiency of sales proceeds over the carrying value is deferred and amortised over the
lease term in proportion to the depreciation of the leased asset.
(h) Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted
average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over
its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in
circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
(i) Maintenance costs
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
In respect of aircraft, aircraft engines and helicopters, the Company has entered into maintenance arrangements.
Payments made to lessors for major maintenance expenditure as per the related maintenance agreements, comprising
fixed period-based amounts and variable activity-based amounts are initially considered as maintenance deposits and
expensed as and when maintenance expenditure is incurred.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
(j) Inventory
Inventories are valued at lower of cost or net realizable value. Cost is determined on first in first out basis except at one
of the divisions where the weighted average basis was followed till December 31, 2008. In respect of reusable items
such as rotables, provision for obsolescence is made based on the estimated useful life of the aircraft as derived from
Schedule XIV to the Companies Act, 1956. In-flight inventory is valued on weighted average basis, while Inventory of
fuel is valued on the basis of last fuel uplifted rates in respective aircrafts.
(k) Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long-term investments. Current investments are carried at lower
of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a decline other than temporary in the value of the
investments.
(l) Employee Benefits
i. Defined Contribution Plan
The Company contributes on a defined contribution basis to Employee’s Provident Fund and Employee Pension
Scheme towards post employment benefits, all of which are administered by the respective Government
authorities. The Company also contributes to social security schemes in respect of its employees at certain
overseas offices. It has no further obligation beyond making its contribution which is expected in the year in
which it pertains.
ii. Defined Benefit Plan
The Company has a defined benefit plan namely gratuity for all its employees. The liability for the defined
benefit plan of gratuity is determined on the basis of an actuarial valuation by an independent actuary at the
year-end, which is calculated using Projected Unit Credit Method. Actuarial gains and losses are adjusted in the
Profit and Loss Account.
iii. Other long-term employee benefits
The employees of the Company are entitled to leave as per the leave policy of the Company. The liability in
respect of unutilized leave balances is provided based on an actuarial valuation carried out by an independent
actuary as at the year-end and charged to the Profit and Loss Account. Actuarial gains and losses are adjusted in
the Profit and Loss Account.
(m) Income taxes
Tax expense comprises current, deferred and fringe benefit tax. Current income tax and fringe benefit tax are
measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act,
1961. Deferred income taxes reflects the impact of current period timing differences between taxable income and
accounting income for the period and reversal of timing differences of earlier years. Deferred tax is measured based
on the tax rates and the tax laws enacted or substantively enacted as at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward
of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized
against future taxable profits. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the
extent that it has become reasonably certain that future taxable income will be available against which such deferred
tax assets can be realized.
(n) Foreign currency transactions
i. Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
ii. Conversion
Foreign currency monetary items are reported at rate prevailing on the balance sheet date. Non-monetary items
which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange
rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar
valuation denominated in a foreign currency are reported using the exchange rates that existed when the values
were determined.
53

54
(n) Foreign currency transactions (Contd.)
iii. Exchange differences
Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items
at rates different from those at which they were initially recorded during the period, or reported in previous
financial statements, are recognized as income or as expenses in the period in which they arise.
iv. Forward exchange contracts
The Company uses forward exchange contracts to hedge its exposure to movements in foreign exchange rates.
The Company does not use the forward exchange contracts for trading or speculation purposes. In respect
of foreign currency monetary assets or liabilities in respect of which forward exchange contract is taken, the
premium or discount arising at the inception of forward exchange contracts is amortized as expense or income
over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit
and loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal
of forward exchange contract is recognized as income or as expense for the period. Pursuant to The Institute of
Chartered Accountants of India’s announcement ‘Accounting for Derivatives’, the Company marks-to-market all
such outstanding derivative contracts at the end of the period and the resulting mark-to-market losses, if any,
are recognized in the Profit and Loss Account.
(o) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of
equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to
the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting
period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus
issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of
shares).
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.
(p) Provisions
A provision is recognized when an enterprise has a present obligation as a result of past event; and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to their present value and are determined based on best estimate required to settle
the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.
(q) Deferred revenue expenses
Share issue expenses are amortized over a period of three years on a straight-line basis following the year of incurring
the expenses.
(r) Stock option compensation expense
The Company accounts for stock option compensation expense based on the intrinsic value of the options granted
which is the difference between the fair value of the share underlying the option and the exercise price of the option
determined at the grant date. Compensation expense is amortized over the period of vesting on a straight-line basis.
The accounting value of the options net of deferred compensation expense is reflected as Employee stock option
outstanding.
(s) Initial costs on leased aircrafts
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Expenses directly attributable and incurred in relation to aircrafts acquired on operating lease arrangement are
deferred and amortized over the period of lease of aircrafts. Such expenses interalia include initial borrowing costs
incurred on pre delivery payments for aircrafts till the Company novates / assigns the right to acquire the aircrafts in
favor of the lessors.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
(t) Incentives from aircraft manufacturers
Incentives from aircraft manufacturers are credited to Profit and Loss Account in the year when such incentives are
made available to the Company as per the terms of aircraft purchase agreements. This includes incentives granted for
the purpose of meeting certain revenue expenses.
(u) Commission
Commission to travel agents is recognized when the corresponding revenues are recognized as income on flown /
carriage basis.
4. Share Capital
During the year, the Company has allotted 77,030 equity shares under the Employee Stock Option Plan at Rs. 10/- each at
a premium of Rs. 55 per share.
5. The Company raised an aggregate amount of Rs. 36,328 lakhs through a public issue of shares during the period ended
June 30, 2006. The proceeds of the issue have been utilized as follows:
Particulars
Year ended
March 31, 2009
(in Rupees)
Nine months ended
March 31, 2008
Balance as per last Balance Sheet (A) 146,523,825 1,671,127,138
Utilization of proceeds
Repayment of debts Nil 134,461,179
Capital Expenditure Nil 50,022,934
Setting up of infrastructure at airports Nil 25,919,200
General Corporate Expenses 146,523,825 1,314,200,000
Marketing development initiatives Nil Nil
Total Out Flow (B) 146,523,825 1,524,603,313
Unutilized balance (A – B) Nil 146,523,825
6. Commitments and contingent liabilities not provided for:
Particulars
Estimated amount of
contracts remaining to be
executed on capital account
and not provided for (net
of advances)
Guarantees / letters of
credit given by banks on
behalf of the Company
Claims against the Company
not acknowledged as debts
(including civil and customer
suits) in the normal course
of business (to the extent
ascertainable)
As at
March 31, 2009
As at
March 31, 2008
Remarks
(In Rupees)
267,522,960,069 67,709,799,738 Pertains to acquisition of aircrafts & other capital
assets in future.
7,443,597,228 2,946,740,641 Pertains to guarantees and letters of credit given /
issued by banks to Airport Authorities, lessors,
suppliers of spares, stores & components and
others.
4,179,435,320 174,971,134 Pertains to litigations filed against the Company
which are pending with various authorities
/ arbitration, including National Consumer
Disputes Redressal Commission, Consumers’
Disputes Forums, Courts, Civil Court and invoices
of suppliers not accepted by the Company. The
Company has a claim against one of the parties
of Rs. 1010 million.
55

56
Demands raised by tax
authorities against which
the Company has preferred
appeals
Claims by ex-lessors not
acknowledged as debt
Redelivery and other costs
in respect of assets taken
on operating lease at the
end of the lease period
Amounts payable, if any
for breach of contractual
obligations
Liability for deduction of tax
at source on lease payments
in respect of aircrafts and
engines, where agreements
were entered into with
lessors prior to March 31,
2007 (excluding interest)
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
6. Commitments and contingent liabilities not provided for: (Contd.)
272,155,247 Nil Pertains to disputes with tax authorities. The
Company has filed necessary appeals.
2,131,637,613 Nil Pertains to claims by ex-lessors arising out of
repossession of leased aircrafts on account of
alleged breach of contractual obligations. The
Queen’s court in UK has held that termination
of the lease agreements by the lessors is in order
and that damages need to be quantified.
The Company has contended that the honorable
high court of Karnataka has exclusive jurisdiction
to consider the matter. The matter is pending
before the Supreme Court of India on a SLP filed
by the Company.
Not
ascertainable
Not
ascertainable
Not
ascertainable
Not
ascertainable
In respect of operating leases, the Company is
required to return the aircrafts as per prescribed
terms. However, the lease periods are extendable
for a longer period and considering on going
maintenance of aircrafts, a reliable estimate
cannot be made of the redelivery costs.
580,834,404 86,323,352 The Company has filed applications under section
10(15A) of the Income Tax Act, 1961 with the
Central Board of Direct Taxes seeking exemption
from deduction of tax, which are pending. These
are being followed up by the Company.
The Company has entered into agreements for purchase of aircrafts / engines under which the Company has commitments
to purchase aircrafts / engines over a period stipulated in the agreements. Such agreements involve complex pricing
arrangements wherein the Company receives discounts / credits on such purchases, which are based on the commitments
to purchase, which the Company is confident to fulfill currently. Accordingly, the amount of contingent liability, if any,
as at the balance sheet date is currently not ascertainable.
In addition to the above, there are certain arbitration proceedings with customers / suppliers / contractors, in respect of
which claims are currently not ascertainable.
The management believes, based on internal assessment and/or legal advice, that the probability of an ultimate adverse
decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered
necessary.

11. Expenditure in foreign currency (on accrual basis)
58
Salaries and allowances
Travelling & Conveyance
Particulars
Professional & Consultancy expenses
Training expenses
Aircraft and other maintenance expenses
Lease rentals
Ticket distribution and reservation system
Interest
Fuel Purchase
Airport Charges
Ground Handling
Redelivery costs
Others
12. Value of components and spare parts consumed
Imported
Indigenous
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Particulars
Year ended
March 31, 2009
892,956,659
404,749,011
49,892,252
151,170,513
3,982,606,531
11,851,321,991
2,247,355,770
595,325,114
90,869,927
293,796,020
201,379,010
1,845,783,634
2,088,515
Year ended
March 31, 2009
(In Rupees)
Nine months ended
March 31, 2008
583,029,085
7,877,116
90,455,048
112,181,349
1,525,024,832
3,547,325,084
53,537,426
50,655,855
Nil
Nil
Nil
Nil
1,803,015
Nine months ended
March 31, 2008
Amount (Rs.) % Amount (Rs.) %
344,905,618
166,952,211
67
33
352,817,857
85,038,716
Total 511,857,829 100 437,856,573 100
13. a) Buildings constructed at a cost of Rs. 8,873,587 are on land rented from the State Government, for which lease has
been transferred to Deccan Charters Limited (DCL). Such rental agreement is renewable on an annual basis. The
Company is in the process of entering into an appropriate arrangement with DCL.
b) Buildings Constructed at a cost of Rs. 86,585,820 are on land belonging to the Airport Authority of India. Such rental
agreements are renewable on a periodical basis.
14. Capital work-in-progress includes capitalized interest on borrowings for purchase of fixed assets. The movement in the
account is given below:
(In Rupees)
Particulars
Year ended
March 31, 2009
81
19
Nine months ended
March 31, 2008
Opening Balance 215,766,254 175,868,321
Add: Taken over from KTASL pursuant to Scheme 1,493,958,827 Nil
Add: Interest capitalized during the year / period 1,228,173,402 148,604,879
Less: Deletions on account of delivery and cancellation of orders of
aircrafts
(1,002,302,648) (108,706,946)
Closing Balance 1,935,595,835 215,766,254

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
15. Employee Stock Option Plan [ESOP]
On March 16, 2005, the shareholders of the Company approved an employee stock option plan [ESOP 2005]. Further on
December 21, 2005, the Board of Directors approved the ESOP 2006 scheme, which will govern issuance of options on or
after January 1, 2006. Options issued under ESOP 2005 would continue to be governed under ESOP 2005. The shareholders
have approved the issuance of 8,181,779 options in aggregate subject to a maximum of 10% of the aggregate number of
issued and outstanding equity shares (calculated on an as converted basis), under both the options put together.
During the year ended March 31, 2009, no options under ESOP 2006 scheme have been issued. Details of number and
weighted-average exercise prices of options are given below:
Particulars
Outstanding at the beginning of the year /
period
Number of
options
Year ended
March 31, 2009
Weighted
average exercise
price (per share)
(In Rupees)
Nine months ended
March 31, 2008
Number of
options
Weighted
average exercise
price (per share)
(In Rupees)
3,485,665 65 3,414,470 65
Granted during the year / period Nil Nil 731,400 65
Exercised during the year / period 77,030 65 328,385 65
Forfeited during the year / period 1,615,455 65 331,820 65
Outstanding at the end of the year / period 1,793,180 65 3,485,665 65
Exercisable at the end of the year / period 608,170 65 304,455 65
The weighted average price of the share on exercise date was Rs. 87.69.
The weighted average contractual remaining life of the options is 7.73 years as at March 31, 2009.
The Company has determined intrinsic values, based on the fair value of the shares on the date of grant, as follows:
Month & year of grant
Intrinsic value determined (Rs.)
June 2005 62.97
December 2005 62.97
April 2007 49.90
September 2007 83.80
February 2008 91.95
The Company has written back deferred compensation expense of Rs. 15,660,635 during the year, on account of forfeitures
for options issued. (During the nine months ended March 31, 2008 the Company recorded an expenditure of Rs. 11,420,490
net of forfeiture)
(In Rupees)
Accounting value of stock options outstanding 101,444,258
Less: Deferred stock compensation expense to be amortized in future years 20,349,839
Employee stock option outstanding 81,094,419
59

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Transactions during the
year / period
Helicopter lease rentals
earned (Deccan Aviation
(Lanka) Private Limited )
Rent Expense
(Capt. G.R. Gopinath)
Investment by Kingfisher
Finvest India Limited (*)
Remuneration (Mr. Ramki
Sundaram)
Interest income on advances
(Mr. Ramki Sundaram)
Expenses incurred on behalf
of DCPL
Reimbursement of expenses
incurred on behalf of DCPL
Consideration receivable on
slump sale of the charter
services operations (DCL)
Book value of assets transferred
on Slump Sale (DCL)
Liabilities transferred on
Slump Sale (DCL)
Reimbursements receivable
from DCPL
Net amount receivable from
DCL
Dues to the Company
(Mr. Ramki Sundaram)
Guarantee and security
commission (expense)
License fees (expense)
Interest expense
Mar-09
Mar-08
Mar-09
Mar-08
Mar-09
Mar-08
Mar-09
Mar-08
Mar-09
Holding
Company
Fellow
Subsidiaries
Associate Subsidiaries
Nil
1,943,778
NA
352,222,310
KMPs and
their relatives
Nil
450,000
4,544,930
10,288,523
2,668,493
Mar-08 2,000,000
Mar-09
Mar-08
(In Rupees)
Enterprises owned or
significantly influenced
by key management
personnel or their
relatives or persons
who have control or
significant influence
over the Company
N i l
2 0 , 8 9 9 , 3 6 4
Mar-09 4,337,956
Mar-08 23,578,709
Mar-09 Nil
Mar-08 690,000,000
Mar-09 Nil
Mar-08
807,793,919
Mar-09
Nil
Mar-08 331,404,752
Mar-09
Mar-08
Nil
4,238,764
Mar-09 NA
Mar-08
Mar-09 NA
Mar-08 25,000,000
Mar-09 327,791,300 1,750,000 #
Mar-08 NA NA
Mar-09 65,077,000
Mar-08 NA
Mar-09 136,051,772
175,036,001**
7,586,987#
Mar-08 NA NA
752,947,510
61

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Remuneration paid to directors is disclosed in the note 7 above.
Salaries paid Rs. 1,515,037 during the year ended March 31, 2009 (March 31, 2008 – Rs. 1,903,548), to a relative of
one of the directors of the Company. Balance due to such person as at March 31, 2009 is Rs. Nil (March 31, 2008 –
Rs 195,613).
Some of the key managerial personnel have given personal guarantees. In addition to key managerial personnel, their
relatives have offered collateral securities to banks and financial institutions against the loans taken by the Company
from such banks and financial institutions.
In addition the Company has derived revenue from certain related parties from sale of tickets / cargo space in the normal
course of business. These have not been quantified & shown separately.
b) List of Associates*
City Properties Maintenance Company Bangalore Limited
Deccan Charters Limited(formerly Kingfisher Aviation Training Limited)
H. Parsons Pvt. Limited
Inversiones Mirabel, S.A
Kingfisher Aviation Training Limited (formerly Kingfisher Training Academy Limited)
Kingfisher Training and Aviation Services Limited (formerly Kingfisher Airlines Limited)
Kingfisher Finvest India Limited (formerly Kingfisher Radio Limited)
Mangalore Chemicals & Fertilizer Limited
McDowell Holdings Limited
Mendocino Brewing Co.Inc, U.S.A
Pixray India Limited
Releta Brewing Company LLC
Rigby International Corp
Rubic Technologies Inc
UB Electronic Instruments Limited
UB Engineering Limited
UB Infrastructure Projects Limited
UB International Trading Limited
UB Overseas Limited
UBHL(BVI) Limited
UBSN Limited
United Breweries (Holdings) Limited
United Breweries International (UK) Limited
United Breweries of America Inc, Delaware
United Racing & Bloodstock Breeders Limited
United Spirits Limited
DCL Holdings Private Limited
WIE Engineering Limited (Under Liquidation)
* The above parties do not necessarily fall within the meaning of “ Related Parties” in terms of Accounting
Standard -18.
63

17. Leases and Hire Purchase
64
a) The Company has entered into operating and finance lease agreements. Disclosures required under AS 19 on “Leases”
is as given below:
Operating leases
Operating lease arrangements comprise of leases of aircraft, helicopters, spare engines and office premises. The
salient features of operating lease agreements for aircrafts, helicopters and spare engines are as follows:
• Lease periods range up to twelve years and are usually non-cancelable.
• Lease rentals are usually fixed over the term of the lease while some arrangements are subject to adjustments
linked to the Libor rates movements.
• The Company also has agreements for maintenance and lease of stores and spares for such aircrafts for which
fixed and variable rentals are paid. Variable rentals are paid on a pre determined rate payable on the basis of
actual flying hours / cycles. Such variable rentals are subject to annual escalations as stipulated in the agreements.
However, the Company is eligible to claim reimbursement of maintenance costs to the extent eligible under the
agreements.
• The Company does not have an option to buy the aircraft or helicopters and spare engines or to renew the
leases.
• In case of default by the Company, in addition to repossession of the aircraft, penalties are stipulated in the
agreements.
• The Company is required to deposit a commitment fee and a security deposit with the lessor or provide a letter of
credit for such amounts.
• Operating lease agreements for office & residential premises are mainly for a non cancelable period of three to
five years. The leased premises can be renewed at terms mutually agreeable to the Company and the lessors.
(In Rupees)
Particulars
Lease contributions for the year / period (excluding
maintenance reserves)
Minimum Lease Payments contributions:
- Not later than one year
- Later than one year but not later than five years
- Later than five years
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Year ended
March 31, 2009
11,874,232,309
12,930,060,902
42,352,317,086
29,363,941,306
Nine months
ended March 31, 2008 *
3,572,980,734
4,382,677,825
13,159,865,069
5,239,590,182
* Recast to exclude maintenance reserves consequent to change in method of accounting referred to in note 37
below.
In addition to the above, the Company has entered into agreements to lease aircrafts / engines in respect of
which the aircrafts / engines are pending delivery / the lease is yet to commence as at March 31, 2009. The above
table of minimum lease payments does not include amounts that may become payable in respect of leases yet to
commence as at March 31, 2009.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Finance leases
Particulars
Total minimum lease payments at the balance sheet date in case of
balance fixed non cancelable lease term
Less: Amount representing finance charges
Present value of minimum lease payments
Year ended
March 31, 2009
12,400,584,460
2,994,988,210
9,405,596,250
(In Rupees)
Nine months ended
March 31, 2008
1,288,286,143
230,069,057
1,058,217,086
Lease payments for the year / period 1,171,240,993 174,922,672
Minimum Lease Payments :
Not later than one year [Present Value Rs.1,100,444,378 as on March
31, 2009 (As on March 31, 2008 Rs.115,867,507)]
Later than one year but not later than five years [Present Value
Rs. 4,103,345,289 as on March 31, 2009 (As on March 31, 2008
Rs. 474,307,996)]
Later than 5 years [Present value Rs. 4,201,806,583 as on March 31, 2009
(Present value Rs. 468,041,583 as on March 31, 2008)]
Salient features of Finance Lease Agreement (Aircraft):
• Monthly aircraft lease rentals are paid in the form of fixed rentals.
1,719,893,435 165,260,719
5,818,547,883 615,566,357
4,862,143,142 507,459,067
• The Company is responsible for keeping the aircraft airworthy in all respects and in good condition and insuring
the same throughout the lease period.
• The Company has an option to purchase the aircraft either during the term of the lease on payment of the
outstanding principal amount or at the end of the lease term on payment of a nominal option price.
• In the event of default, the Lessee is responsible for payment of all costs of the Owner including financing costs,
and other associated costs. Further, a right of repossession is available to the Owner / Lessor.
Assets given on lease
The Company had given one helicopter to Deccan Aviation (Lanka) Private Limited under an operating lease
arrangement. Lease rental income recognized in the Profit and Loss account amounts to Rs. Nil (Previous period
Rs 1,943,778).
b) In addition, the Company has entered into cancelable leasing arrangements for office premises which are renewable
at mutual consent. The lease rentals of Rs. 546,080,596 (Previous period - Rs. 78,694,983) have been included under
the head “Operating and Other Expenses - Rent” under Schedule 17A in the Profit and Loss Account.
18. Segment disclosures
The Company operates in a single business segment, i.e. of providing scheduled and unscheduled air transportation
services. Accordingly, no separate segment disclosures for primary business segment are required to be given.
Geographical segments
Sales (domestic sectors) Rs. 51,674,163,151 (Previous period Rs. 14,413,948,348)
Sales (international sectors) Rs. 1,017,543,654 (Previous period Rs. Nil)
The carrying value of assets held outside India is not material.
65

19. Deferred taxes
66
Liability
Particulars
As at
March 31, 2009
(In Rupees)
As at
March 31, 2008
On account of depreciation on fixed assets 3,062,447,625 248,606,808
On account of timing differences in recognition of
expenditure
581,082,035 54,516,158
Deferred tax liability (A) 3,643,529,660 303,122,966
Asset
On account of timing differences in recognition of
expenditure
117,280,512 26,475,997
On account of disallowance under section 40a (ia) 1,964,844,760 Nil
On account of Unabsorbed losses and depreciation under
the Income Tax Act, 1961
18,258,724,633 5,261,644,353
Deferred tax asset (B) 20,340,849,905 5,288,120,350
Net deferred tax asset (B) – (A) 16,697,320,245 4,984,997,384
Deferred tax asset on unabsorbed depreciation and business losses has been recognized on the basis of business plan
prepared by the management, which takes into account certain future receivables arising out of contractual obligations.
The management is of the opinion that there is virtual certainty supported by convincing evidence that sufficient future
taxable income will be available against which the deferred tax asset can be realized.
20. Provisions
In accordance with Accounting Standard – 29 ‘Provisions, Contingent Liabilities and Contingent Assets’, following is the
movement in provision towards cost for frequent flyer program.
Frequent Flyer Program:
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
The Company has a Frequent Flyer Program (King Club), wherein passengers who fly frequently are entitled to accumulate
miles to their credit. The passenger is eligible to redeem such miles in the form of tickets. The cost of allowing free travel
to members is accounted considering the members’ accumulated mileage on an incremental basis. The movement in the
provision towards cost for frequent flyer program during the year is as under:
(In Rupees)
Particulars March 31, 2009 March 31, 2008
Opening Balance Nil Nil
Add: Taken over from KTASL pursuant to Scheme 42,972,008 Nil
Add: Provision during the year 47,276,775 Nil
Less: Amounts utilized during the year Nil Nil
Closing Balance 90,248,783 Nil
The outflow with regard to above would depend upon utilization of accumulated mileage by the members and hence,
the Company is not able to reasonably ascertain the timing of outflow.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
21. Loss per share (EPS)
Particulars
After extraordinary items
Loss for computation of basic and diluted EPS (Rs.)
Before prior period & extraordinary items
Loss before extraordinary items and tax expense (Rs.)
Add: Tax expense after reworking deferred tax credit on account of
extraordinary item
Loss for computation of basic and diluted EPS (Rs.)
Weighted average number of shares considered for basic EPS
(Rs. 10 par value)
Weighted average number of shares considered for diluted EPS*
Year ended
March 31, 2009
(16,088,299,349)
(19,176,706,818)
4,656,378,676
(14,520,328,143)
222,434,428
222,434,428
Nine months
ended March 31,
2008
(1,881,361,073)
(7,070,496,576)
5,055,194,220
(2,015,302,356)
135,668,051
135,668,051
* The effect of employee stock options on weighted average number of shares for diluted EPS is not considered since
their effect is anti-dilutive.
22. There were no forward contracts or derivative contracts outstanding as at March 31, 2009. Foreign currency exposures
that have not been hedged by any derivative instrument or otherwise are as follows:
(In Rupees)
Capital Advances
Prepaid Maintenance Reserve
Other Assets (Receivables)
Particulars
Finance Lease for aircrafts and other term loan from financial institution
Other Liabilities (Payables)
* Recast
As at
March 31, 2009
13,817,386,073
6,714,311,469
4,645,907,198
9,540,107,993
7,304,686,702
As at
March 31, 2008
3,220,972,919*
Nil
603,401,891
1,135,759,325
1,435,136,366
23. In respect of certain training costs which are initially funded by the employee, the Company has an obligation to reimburse
the employee such training costs in case the employee fulfills certain employment conditions under the terms of agreement
with the Company. The Company has made a provision for the year ended March 31, 2009 of Rs. 33,720,332 (March 31, 2008
Rs. 61,280,041).
24. Other Direct Operating Expenses for the year ended March 31, 2009 is net of credit memorandum of Rs. Nil (March 31, 2008 –
Rs. 208,989,119).
67

25. Employee Benefits:
68
a) Contribution to defined benefit plans-gratuity plan (unfunded)
Particulars
I) Change in benefit obligation:
Defined benefit obligation (DBO), at the beginning of the
year / period
Year ended
March 31, 2009
(In Rupees)
Nine months ended
March 31, 2008
38,434,073 35,115,726
Taken over from KTASL pursuant to Scheme 34,357,392 Nil
Excess provision as at July 1, 2007 credited to opening
reserves as per transitional provision of AS 15 (revised)
Nil (2,110,336)
Service Cost 19,362,983 8,188,329
Interest Cost 4,660,235 2,525,225
Actuarial loss / (gain) (2,411,814) 1,639,753
Benefits paid (3,299,292) (519,230)
Liability pertaining to charter service operations transferred
to DCL
Nil (6,405,394)
Defined benefit obligation at the end of the year / period 91,103,577 38,434,073
II) Components of cost for the year ended March 31, 2009:
Service cost 19,362,983 8,188,329
Interest on defined benefit obligation 4,660,235 2,525,225
Expected return on plan assets Nil Nil
Net actuarial gain recognized in the year / period (2,411,814) 1,639,753
Net gratuity recognized in the Profit and Loss Account 21,611,404 12,353,307
III) Actuarial assumptions:
Discount rate (p.a.) 7.75% 8.10%
Salary Escalation Rate (p.a.) 5% 8% for first 3 years and
6% thereafter
Retirement Age (other than pilots)
60 years
58 years
Retirement Age (pilots) 65 years
Mortality Rates of LIC (1994-
1996) mortality table
Rates of LIC (1994-
1996) mortality table
Withdrawal rate 2% Ranging from 1% to
15% depending on
age of employee.
b) Contribution to defined contribution plans
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
Contribution to provident fund is Rs. 64,796,883 (Nine months ended March 31, 2008 Rs. 21,743,735). Contribution to
social security schemes Rs. 15,779,354 (Nine months ended March 31, 2008 Rs. Nil).
26. The Company has initiated the process of obtaining confirmation from suppliers regarding the registration under the
MSME Act, 2006 (“Micro Small and Medium Enterprises Development Act 2006”). The suppliers are not registered
wherever the confirmations are received and in other cases, the Company is not aware of their registration status and
hence information relating to outstanding balance or interest due is not disclosed as it is not determinable.

Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
27. Details of non-resident shareholdings
Particulars March 31, 2009 March 31, 2008
Number of non resident share holders 627 451
Number of shares held by non resident shareholders 43,644,231 16,936,357
28. Discontinuing Operation
Particulars
March 31, 2009 March 31, 2008
Continuing
Operations
Discontinuing
Operations
Continuing
Operations*
(In Rupees)
Discontinuing
Operations
Total Assets 70,360,375,433 Nil 17,997,704,677 Nil
Total Liabilities 91,613,830,231 Nil 16,008,981,174 Nil
Income 55,774,732,164 Nil 15,110,957,179 343,474,726
Expenditure 74,951,438,982 Nil 22,158,125,096 366,803,385
Profit / (Loss) after tax
expense for the period / year
Net cash flow from / (used in)
(16,088,299,349) Nil (1,856,732,414) (24,628,659)
a. Operating activities 6,457,829,126 Nil 5,370,702,051 (175,193,393)
b. Investing activities (2,066,345,293) Nil (141,924,096) 3,720,513
c. Financing activities (2,901,100,291) Nil 113,266,385 198,700,456
* Recast
29. Accounts with certain creditors, debtors, loans & advances are subject to review / reconciliation / confirmation. Adjustments,
if any will be made on completion of such review / reconciliation / receipt of confirmations.
30. The Company has incurred substantial losses and its net worth has been eroded. However, having regard to the Scheme,
the synergies expected there from, the recently launched international operations, loans granted by banks after March
31, 2009, further loans from banks under negotiation, group support, capital raising plans, the financial statements have
been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying
value of assets and liabilities.
31. The Company’s Centralized Ticket Reservation System (CRS) does not support capture of unearned revenue on a
comprehensive basis. Accordingly, such unearned revenue has been estimated by the management based on estimated
aggregate number of unflown tickets as at March 31, 2009 and average estimated ticket value prevailing in each of
the months to which such unflown tickets relate to. Management is taking steps to further streamline the processes of
determination of unearned revenue.
32. The Company’s Cargo Revenue Management (CRM) system is yet to stabilize. Mistakes noticed have been corrected to the
extent identified. The Company is of the view that any unadjusted differences will not be material. Management is taking
steps to further streamline the processes and stabilize the system.
33. A large portion of the business has originated through usage of credit card as a form of payment of tickets by the
passengers. The Company has received chargeback, aggregating Rs. 437,328,467 (Previous period – Rs. 66,430,000), from
credit card service providers due to misutilization of credit cards by third parties. The Company has introduced necessary
internal checks to mitigate the risk of such transactions. Consequently, the Company is hopeful that there will be reduction
in chargeback in the coming years.
69

34. Change in the method of accounting maintenance reserves
As per our report of even date
For B. K. Ramadhyani & Co. For and on behalf of the Board of Directors
Chartered Accountants
R. Satyanarayana Murthi Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Partner Chairman & Managing Director Director Director
Membership No. 24248
Bangalore Bangalore A. Raghunathan N. Srivatsa
July 28, 2009 July 28, 2009 Chief Financial Officer Company Secretary
70
Schedules forming part of accounts for the year ended March 31, 2009 (Contd.)
On re-examination of the accounting treatment given to maintenance reserves payable to lessors in respect of aircrafts
and engines taken on operating lease and based on expert opinion, such amounts which were hitherto charged off to
revenue as and when they fell due for payment in terms of relevant agreements have been treated during the year as
recoverable deposits, to be adjusted to the Profit and Loss Account as and when relevant expenditure reimbursable
from lessors are incurred. The Company’s revised accounting treatment is fortified by the fact that certain lessors have
accepted standby letters of credit issued by the Company’s bankers in lieu of payment of maintenance reserves and have
also agreed to refund / adjust the amounts already paid. Consequently, amounts paid to lessors up to March 31, 2008
(net of expenses reimbursed wherever applicable) have been debited to deposits refundable by credit to the Profit and
Loss Account. But for the said change, the loss for the year before and after tax expense would have been higher by an
estimated amount of Rs. 10,217,995,882 and Rs. 9,855,166,388 respectively.
The amounts of maintenance reserves so recognized as deposits are subject to confirmation from the concerned lessors.
35. Treatment of capital advances, towards aircrafts and other equipments, as a monetary asset
The scheduled airline business of KTASL taken over by the Company pursuant to the Scheme considered capital
advances made in foreign currency and outstanding on the balance sheet date as a non monetary asset, thereby
recording them at historical cost and not restating them at closing rates. On re-examination of the matter and
in line with the practice followed by the Company, such advances outstanding as at March 31, 2009 have been
restated at closing rates in line with AS 11 and the resultant difference (to the extent they relate to the period
after March 31, 2007) has been adjusted in the Profit and Loss Account. But for the said change, the loss for the
year before and after tax expense would have been higher by an estimated amount of Rs. 1,903,514,614 and
Rs. 1,256,509,997 respectively.
36. Treatment of initial borrowing costs on pre-delivery payments for acquisition of aircrafts taken on operating lease
In line with the practice followed by the scheduled airline business of KTASL taken over pursuant to the Scheme, the
Company has changed its method of accounting initial borrowing costs on pre-delivery payments for acquisition of
aircrafts taken on lease till the novation / assignment of the right to acquire the same in favor of lessors (aircrafts taken on
lease on or after April 1, 2008) by deferring and amortizing the same over the period of the lease. But for the said change,
the loss for the year before and after tax expense would have been higher by an estimated amount of Rs. 486,322,604
and Rs. 321,021,550 respectively.
37. Extraordinary expenses represent redelivery costs and maintenance reserves written off on premature termination of
agreements for operating lease of aircrafts and interest amounts (previously capitalized) relating to premature termination
of aircraft delivery contracts.
38. The Company has not prepared consolidated financial statements (CFS) as required by the AS 21, since the transactions of
the subsidiary during the year was not material.
39. Previous period’s figures are for nine months ended March 31, 2008 while those of current year are for the year ended
March 31, 2009. Current year’s figures include the combined operations of the Company and the commercial airline
division of KTASL taken over pursuant to Scheme. Hence the same are not comparable. Previous period’s figures have
been regrouped / reclassified wherever necessary to conform to the current year’s presentation.

Statement pursuant to Section 212 of the Companies Act, 1956, related to the Subsidiary Company
Particulars Vitae India Spirits
For and on behalf of the Board of Directors
Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Chairman & Managing Director Director Director
Bangalore N. Srivatsa A. Raghunathan
July 28, 2009 Company Secretary Chief Financial Officer
Limited
1. Financial year of the Subsidiary ended on March 31, 2009
2. Shares of the Subsidiary held by the Compoany on the above date:
(a) Number & face value 50000
Equity Shares
of Rs.10/- each
(b) Extent of holding 100%
3. Net aggregate amount of profits/(losses) of the Subsidiary so far as
they concern members of Kingfisher Airlines Limited:
(a) For the financial year of the Subsidiary
(i) Dealt within the accounts of the Company
for the year ended March 31, 2009 (Rs. Lacs) NIL
(ii) Not Dealt with the accounts of the Company
for the year ended March 31, 2009 (Rs. Lacs) (1.53)
(b) For the previous financial year of the susidiary
since it became a subsidiary
(i) Dealt with in the accounts of the Company Not Applicable*
for the previous financial year ended
March 31, 2008 (Rs. Mn)
(ii) Not Dealt with the accounts of the Company Not Applicable*
for the previous financial year ended
March 31, 2008 (Rs. Mn)
* Incorporated on March 24, 2008 and Accounts prepared for the Year ended March 31, 2009 is the First Financial Statement
prepared after Incorporation.
71

72
A. Cash Flow from Operating Activities
Cash Flow Statement for the year ended March 31, 2009
Year ended
March 31, 2009
Rupees
Nine Months ended
March 31, 2008
Rupees
Loss Before Tax 21,552,060,866 6,825,898,049
Adjustments for :
Depreciation / Amortisation 1,332,003,732 182,807,412
Provision for Gratuity 18,312,112 11,834,076
Provision for Leave Encashment / Compensated Absences 35,957,383 3,306,847
Provision for Frequent Flyer Scheme 47,276,775 -
Provision for Doubtful Advances - 7,464,935
Bad debts (Net) 8,538,525 -
Initial Costs amortised on Leased Aircrafts 262,537,980 -
Amortisation of Training Expenses - 89,550,519
Amortisation of Preoperative Expenses - 2,628,571
Amortisation of Share issue Expenses 121,350,768 90,952,565
Employee Compensation (Income) / Expense (15,660,635) 11,420,490
(Profit) / Loss on sale of transfer of aircraft / engine rights 51,303,132 (249,791,344)
(Profit) / Loss on sale of assets 26,932,215 90,281
Interest expense 6,962,319,453 503,749,696
Interest Income on deposits with Banks (76,028,313) (189,755,634)
Profit from slump sale of Charter Business Undertaking - (244,598,527)
Unrealised Exchange Gain (2,176,707,768) -
6,598,135,359 219,659,887
Operating Loss before Working Capital Changes 14,953,925,507 6,606,238,162
Adjustment for changes in working capital:
(excludes assets & liabilities taken over pursuant to the Scheme.
Refer Note 4 given below)
(Increase) / decrease in inventories (553,423,363) 88,281,796
(Increase) / decrease in sundry debtors (804,791,143) 129,790,827
(Increase) / decrease in Loans and Advances and Other Current Assets (8,503,038,979) (756,413,534)
Increase / (decrease) in Current Liabilities and Provisions 18,387,630,581 2,048,600,067
8,526,377,096 1,510,259,156
Add : Taxes Paid (including fringe benefit tax) 30,280,765 99,529,652
Net Cash used in Operating Activities 6,457,829,176 5,195,508,658
B. Cash Flow from Investing Activities
(excludes assets & liabilities taken over pursuant to the Scheme.
Refer Note 4 given below)
Movement in fixed assets (including changes in Capital work-in -progress) (3,986,148,629) 278,947,800
Sale of fixed assets (6,721,531) (40,000)
Investment in subsidiaries 500,000 -
Initial Costs incurred on Leased Aircrafts 1,362,960,844 -
Repayment of Finance Lease obligation during the year (principal portion) 714,047,980 -
(Profit) / loss on sale of transfer of aircraft / engine rights 51,303,132 (249,791,344)
Interest on deposits with Banks (202,287,139) (167,320,039)
Net Cash used / (from) in Investing Activities (2,066,345,343) (138,203,583)

Cash Flow Statement for the year ended March 31, 2009 (Contd.)
Year ended
March 31, 2009
Rupees
Nine Months ended
March 31, 2008
Rupees
C. Cash Flow from Financing Activities
(excludes assets & liabilities taken over pursuant to the Scheme.
Refer Note 4 given below)
Proceeds from issue of Share Capital (5,006,950) (21,345,024)
Share issue expenses paid - 726,132
Proceeds from Loans from Banks and Others (net) (10,306,239,947) (206,145,011)
Interest Paid 7,410,146,606 538,730,744
Net Cash From Financing Activities (2,901,100,291) 311,966,841
Net (increase) / decrease in Cash and Cash equivalents 1,490,383,542 5,369,271,916
Cash and Cash equivalents at beginning of the year / period 2,801,223,361 8,170,495,277
Cash and Cash equivalents acquired from KTASL 407,830,606 -
Cash and Cash equivalents at the end of the year / period 1,718,670,425 2,801,223,361
As at
March 31, 2009
Rupees
As at
March 31, 2008
Rupees
Cash and Cash equivalents comprises of :
Cash in Hand 13,102,142 4,987,725
Balance with Banks 1,705,568,283 2,796,235,636
TOTAL 1,718,670,425 2,801,223,361
Notes:
1) The above cash flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard - 3
2) Figures in bracket indicate cash inflow.
3) Previous period’s figures have been regrouped/rearranged to conform with current year’s classifications.
4) The above Cash flow statement has been prepared without considering the assets & liabilities taken over pursuant to the
Scheme. (Refer Note 2 on Schedule 19). The details are as hereunder:
Amount (Rupees)
a) Inventory 432,610,126
b) Sundry Debtors 1,230,502,493
c) Loans and Advances 3,070,595,290
d) Other Current Assets 14,945,219
e) Current Liabilities 9,613,683,337
f) Provisions 218,825,987
g) Fixed Assets - Gross Block 13,774,168,266
h) Fixed Assets - Depreciation Block 1,421,106,436
i) Capital Advances (including interest capitalised) 16,072,243,865
j) Initial Cost 433,583,105
k) Secured Loans 21,828,640,907
l) Unsecured Loans 15,621,008,913
5) Proceeds from issue of share capital does not include shares issued pursuant to the Scheme
As per our report of even date
For B. K. Ramadhyani & Co. For and on behalf of the Board of Directors
Chartered Accountants
R. Satyanarayana Murthi Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Partner Chairman & Managing Director Director Director
Membership No. 24248
Bangalore Bangalore A. Raghunathan N. Srivatsa
July 28, 2009 July 28, 2009 Chief Financial Officer Company Secretary
73

Additional Information Pursuant to Part IV of Schedule VI to the Act
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I REGISTRATION DETAILS
74
REGISTRATION NUMBER L 8 5 1 1 0 K A 1 9 9 5 P L C 0 1 8 0 4 5
STATE CODE 0 8
BALANCE SHEET DATE 3 1 - 0 3 - 2 0 0 9
Date Month Year
II CAPITAL RAISED DURING THE YEAR (Amount in Rs. Thousands)
PUBLIC ISSUE N I L RIGHTS ISSUE N I L
INVESTMENTS 5 0 0
+ -
(Please tick appropriate box + for Positive, - for Negative)
$ includes initial Cost on Lessed Aircrafts and Deferred Tax
Asset
Balance Sheet Abstract
BONUS ISSUE N I L PRIVATE PLACEMENT @ 2 2 7 1 1 0 4
III POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs. Thousands)
TOTAL LIABILITIES 9 6 1 2 6 2 3 2 TOTAL ASSETS# 9 6 1 2 6 2 3 2
(including shareholder's Funds)
#includes Deferred Tax Asset
SOURCES OF FUNDS
PAID-UP CAPITAL 3 6 2 9 0 8 9 RESERVES & SURPLUS* 8 0 2 2 1 9
For and on behalf of the Board of Directors
Dr. Vijay Mallya A. K. Ganguly A. K. Ravi Nedungadi
Chairman & Managing Director Director Director
Bangalore N. Srivatsa A. Raghunathan
July 28, 2009 Company Secretary Chief Financial Officer
*excluding Employee Stock Option Outstanding
SECURED LOANS 2 6 2 2 5 2 1 2 UNSECURED LOANS 3 0 4 3 0 3 7 4
APPLICATION OF FUNDS
NET FIXED ASSETS 3 2 0 6 4 6 3 0 MISCELLANEOUS EXPENDITURE 4 5 0 8 8
NET CURRENT ASSETS $ 3 2 9 1 9 1 3 ACCUMULATED LOSSES 2 5 7 6 5 8 5 7
IV PERFORMANCE OF COMPANY (Amount in Rs. Thousands)
TURNOVER (including other income) 5 5 7 7 4 7 3 2 TOTAL EXPENDITURE 7 7 3 2 6 7 9 3
+ - + -
(Please tick appropriate box + for Profit - for Loss) (Please tick appropriate box + for Profit - for Loss)
PROFIT/LOSS BEFORE TAX 2 1 5 5 2 0 6 1
+ -
PROFIT/LOSS AFTER TAX 1 6 0 8 8 2 9 9
(Please tick appropriate box + for Positive, - for Negative)
EARNING PER SHARE (In Rs.) 7 2 . 3 3 DIVIDEND RATE % – –
V GENERIC NAMES OF PRINCIPLE PRODUCTS / SERVICES OF COMPANY (as per monetary terms)
ITEM CODE NO. (ITC CODE) PRODUCT DESCRIPTION
Not Applicable Airline Services
@includes shares issued pursuant to the Scheme

VITAE INDIA SPIRITS LIMITED
Directors' Report
To The Members,
Your Directors present the 1st Annual Report along with the
Audited Accounts of your Company for the period ended March
31, 2009.
Operations
Your Company was incorporated on March 24, 2008 and obtained
the Certificate of Commencement of Business on September 24,
2008. Your Company however, has not carried on any business
during the period and accordingly has no income to report. For
the period ended March 31, 2009, your Company has incurred a
loss of Rs. 1,52,934 comprising mainly of preliminary expenses
(Rs. 1,03,680) which have been charged off and other expenses
including professional charges.
Share Capital
The Authorised, Issued, Subscribed and Paid up Equity Share
Capital of your Company since incorporation is Rs. 5,00,000/-
Equity Shares of Rs. 10/- each.
Your Company has become a wholly owned subsidiary of
Kingfisher Airlines Limited consequent upon all the Equity
Shares being held by Kingfisher Airlines Limited.
Directors
Mr. Nagappa Kundapur and Ms. Seethalakshmi Kamath resigned
as Directors with effect from February 9, 2009.
During the period under review, Mr. A. Raghunathan,
Mr. Ramakrishnan Sundaram and Mr. Bharath Raghavan,
representatives of Kingfisher Airlines Limited, were appointed as
Directors of your Company with effect from February 09, 2009.
Subsequent to the period under review Mr. Panduranga Shettigar
Kinnigoli resigned as Director with effect from April 20, 2009
and Mr. Ramkrishnan Sundaram resigned as Director with effect
from June 17, 2009.
Subsequent to the period under review Mr. N. Srivatsa was
appointed as Additional Director on June 16, 2009 and shall hold
office up to the date of the ensuing Annual General Meeting
of your Company. Notice in writing has been received from a
Member signifying his intention to propose the appointment
of Mr. N. Srivatsa as Director of your Company at the ensuing
Annual General Meeting.
Mr. A. Raghunathan, Director retires by rotation at the ensuing
Annual General Meeting and being eligible offers himself for
reappointment.
Auditors
M/s Vishnu Ram & Co., your Company’s Auditors have confirmed
that they are eligible for re-appointment at the ensuing Annual
General Meeting and it is proposed to re-appoint them and to
fix their remuneration.
Conservation of Energy, Research and Development, Technology
Absorption, Foreign Exchange Earnings and Outgo
The particulars as prescribed under section 217(1)(e) of the
Companies Act, 1956 and the rules framed there under are not
applicable to your Company.
Foreign Exchange Earnings and Outgo
There is no earning or outgoing of Foreign Exchange during the
period under review.
Directors’ Responsibility Statement
In terms of the provisions of Section 217(2AA) of the Companies
Act, 1956 the Directors of your Company hereby confirm that:
• in the preparation of the Accounts for the period ended
March 31, 2009 the applicable accounting standards have
been followed along with proper explanation relating to
material departures;
• accounting policies have been selected and applied
consistently and that the judgments and estimates made are
reasonable and prudent so as to give a true and fair view of
the state of affairs of your Company at March 31, 2009 and
of the Loss of your Company for the period ended March 31,
2009;
• proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the
assets of your Company and for preventing and detecting
fraud and other irregularities;
• the accounts for the period ended March 31, 2009 have been
prepared on a going concern basis.
Particulars of Employees’ Remuneration
Your Company has no employees on its payroll and accordingly,
the provisions of Section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules 1975
are not applicable.
For and on Behalf of the Board of Directors
Bangalore A. Raghunathan Bharath Raghavan
July 16, 2009 Director Director
75

To
The Members of
VITAE INDIA SPIRITS LIMITED
1. We have audited the attached Balance Sheet of
76
VITAE INDIA SPIRITS LIMITED, as at 31 st March, 2009,
the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order,
2003, issued by the Government of India, in terms of
Sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to
above, we report that:
i) We have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purpose of our audit ;
ii) In our opinion, proper books of account, as required
by law, have been kept by the company so far as
appears from our examination of those books ;
Auditors’ Report
iii) The Balance Sheet, the Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement
with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement dealt with by this report comply
with the accounting standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956;
v) On the basis of written representations received
from the directors and taken on record by the Board
of Directors, we report that none of the directors
are disqualified as on 31 st March, 2009 from being
appointed as a director in terms of clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956 ;
vi) In our opinion and to the best of our information and
according to the explanations given to us, the said accounts
together with the notes thereon give the information
required by the Companies Act, 1956 (1 of 1956) in the
manner so required and give a true and fair view in
conformity with accounting principles generally accepted
in India;
(a) in the case of the Balance Sheet, of the state of affairs
of the Company as at 31-03-2009;
(b) in the case of the Profit and Loss Account of the loss
for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
For Vishnu Ram & Co.
Chartered Accountants
(S. Vishnumurthy)
Bangalore Proprietor
July 16, 2009 Membership No. 22715

Annexure to the Auditors’ Report
Re: VITAE INDIA SPIRITS LIMITED
Referred to in paragraph 3 of our report of even date
(a) There were no fixed assets. Therefore, the provisions of clause
4(i)(a) to 4(i)(c) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the Company.
(b) There were no stocks of goods. Therefore, the provisions of
clause 4(ii)(a) to 4(ii)(c) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the Company.
(c) The company has not granted any loans to companies, firms or
other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Therefore, the provisions of
clause 4(iii)(a) to 4(iii)(d) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the Company.
(d) The company has not taken any loans from companies, firms or
other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Therefore, the provisions of
clause 4(iii)(e) to 4(iii)(g) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the Company.
(e) In our opinion and according to the information and
explanations given to us, there are adequate internal control
system commensurate with the size of the company and the
nature of its business with regard to purchases of inventory,
fixed assets and with regard to the sale of goods and services.
During the course of audit, we have not observed any continuing
failure to correct major weaknesses in internal controls.
(f) According to the information and explanations given to us,
there are no transactions that need to be entered into the
register maintained under Section 301 of the Companies
Act, 1956. Therefore, the provisions of clause 4(v)(a) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to
the company.
(g) In our opinion and according to the information and
explanation given to us, there have not been any transactions
made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies
Act, 1956. Therefore, the provisions of clause 4(v)(b) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to
the company.
(h) The company has not accepted any deposits from the public
in contravention of the provisions of sections 58A, 58AA and
any other relevant provisions of the Act and the Companies
(Acceptance of deposits) Rules, 1975. Therefore, the provisions
of clause 4(vi) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the company.
(i) Since this is the first year of operation of the company, the
provisions with regard to internal audit of clause 4(vii) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to
the company.
(j) Provisions with regard to maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956 are not applicable
to this company.
(k) The company is regular in depositing with appropriate
authorities undisputed statutory dues including income tax and
other material statutory dues applicable to it.
Further, since the Central Government has till date not
prescribed the amount of cess payable under Section 441A of
the Companies Act, 1956, we are not in a position to comment
upon the regularity or otherwise of the company in depositing
the same.
(l) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth
tax, service tax, sales tax, customs duty and excise duty were in
arrears, as at 31-3-2009 for a period of more than six months
from the date they became payable.
(m) According to the information and explanations given to us,
there are no dues of sales tax, income tax, customs duty, wealth
tax, service tax and excise duty which have not been deposited
on account of any dispute.
(n) The company has been registered for a period of less than five
years. Therefore, the provisions of clause 4(x) of the Companies
(Auditor’s Report) Order, 2003 are not applicable to the
company.
(o) The company has not taken any loans from banks or financial
institutions nor issued any debentures. Therefore, the provisions
of clause 4(xi) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the company.
(p) The company has not granted any loans on the basis of security
by way of pledge of shares, debentures and other securities.
Therefore, the provisions of clause 4(xii) of the Companies
(Auditor’s) Order, 2003 are not applicable to the company.
(q) The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to
the company.
(r) The company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of
clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the company.
(s) The company has not given any guarantees for loans taken
by others from banks or financial institutions. Therefore, the
provisions of clause 4(xv) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the company.
(t) The company has not raised any term loans during the year.
Therefore, the provisions of clause 4(xvi) of the Companies
(Auditor’s Report) Order, 2003 are not applicable to the
company.
(u) According to the information and explanations given to us and
on an overall examination of the balance sheet of the company,
we report that no funds raised on short term basis have been
used for long term investment.
(v) According to the information and explanations given to us,
the company has not made preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Act. Therefore, the provisions of
clause 4(xviii) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the company.
(w) According to the information and explanations given to us,
the company has not issued any debentures during the year.
Therefore, the provisions of clause 4(xix) of the Companies
(Auditor’s Report) Order, 2003 are not applicable to the
company.
(x) During the year, the company has not raised any money by
public issue. Therefore, the provisions of clause 4(xx) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to
the company.
(y) According to the information and explanations given to us,
no fraud on or by the company has been noticed or reported
during the course of our audit.
For Vishnu Ram & Co.
Chartered Accountants
(S. Vishnumurthy)
Bangalore Proprietor
July 16, 2009 Membership No. 22715
77

78
I. SOURCES OF FUNDS
(1) Shareholders’ funds
Balance Sheet as at March 31, 2009
Schedule
As at
31-03-2009
Rupees
(a) Share capital 1 500,000
(b) Reserves and surplus -
(2) Loan funds
(a) Secured loans -
(b) Unsecured loans -
II. APPLICATION OF FUNDS
500,000
(1) Fixed Assets -
(2) Investments -
(3) Current assets, loans and advances
(a) Inventories
(b) Sundry debtors
(c) Cash and bank balances 2 366,523
(d) Loans and advances
Less: Current liabilities and provisions:
366,523
(a) Current liabilities 3 19,457
(b) Provisions -
19,457
Net current assets 347,066
(4) (a) Miscellaneous expenditure to the extent not written off or adjusted -
(b) Profit & loss account 152,934
Significant Accounting Policies and Notes on Accounts 4
Schedules referred to above and the notes thereon form an integral part of the Balance Sheet.
500,000
For and on behalf of the Board of Directors of Per our report of even date
Vitae India Spirits Limited For Vishnu Ram & Co.
Chartered Accountants
Bangalore A. Raghunathan Bharath Raghavan (S. Vishnumurthy)
July 16, 2009 Director Director Proprietor
Membership No. 22715

Profit and Loss Account for the period ended March 31, 2009
Income
Expenditure
Schedule
31-03-2009
Rupees
Bank charges 264
Filing fees 1,212
Miscellaneous expenses 2,300
Preliminary expenses written off 103,680
Professional charges 45,478
For and on behalf of the Board of Directors of Per our report of even date
Vitae India Spirits Limited For Vishnu Ram & Co.
Chartered Accountants
Bangalore A. Raghunathan Bharath Raghavan (S. Vishnumurthy)
July 16, 2009 Director Director Proprietor
Membership No. 22715
-
152,934
Loss for the period before tax provision (152,934)
Less: Income tax provision -
Loss for the period after tax provision (152,934)
Balance carried forward to the Balance Sheet (152,934)
Earnings per share (Basic/Diluted (in Rs.)) (3.06)
Significant Accounting Policies and Notes on Accounts 4
Schedules referred to above and notes thereon form an integral part of the Profit & Loss Account.
79

Schedule 1
Share Capital
80
Authorised
As on
31-03-2009
Rupees
50,000 Equity Shares of Rs.10 Each 500,000
Issued, subscribed and paid up
50,000 Equity Shares of Rs.10 Each 500,000
(All the shares are held by the holding company Kingfisher Airlines Ltd.)
Schedule 2
Cash and bank balances
500,000
Cash in hand 600
Balance in current account with Syndicate Bank 365,923
Schedule 3
Schedules to the Balance Sheet
366,523
Current Liabilities 19,457
Professional charges payable 19,457

Schedules forming part of the Accounts
Schedule 4
Notes forming part of the accounts
A. Basis for preparation
1. Accounting Convention:
The financial Statements are prepared under the historical cost convention, having due regard to the fundamental accounting
assumptions of going concern, consistency, accrual and in compliance with the mandatory accounting standards as specified in the
Companies (Accounting Standards) Rules, 2006.
2. Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the
date of the financial statements and the results of operations during the reporting year end. Although these estimates are based
upon management's best knowledge of current events and actions, actual results could differ from these estimates.
B. Significant Accounting Policies
1. Tax expense:
Current tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes are recognised for the future tax consequences attributable to timing differences
between the financial statement determination of income and their recognition for tax purposes. The effect on deferred tax
assets and liabilities of a change in tax rates is recognised in income using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets are recognised and carried forward only to the extent that
there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be
realised.
2. Revenue recognition:
All revenues are generally recognized on accrual basis except where there is an uncertainty of ultimate realization.
3. Provision and contingencies:
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.
4. Earning per Share:
The basic earning / loss per share are computed by dividing the net profit / loss attributable to equity shareholders for the year by
the weighted average number of equity shares outstanding during the period.
5. Related party transaction:
Transactions between the related parties are disclosed as per Accounting Standard 18 - Related Party Disclosure specified by the
Companies (Accounting Standards) Rules, 2006. Accordingly, disclosures regarding names of the transacting related party, description
of the relationship between the parties, nature of transactions and the amount outstanding as at end of the accounting year, are
made.
C. Notes to accounts
1. The company was incorporated on 24-03-2008 and this is the first financial statement prepared after incorporation. Therefore,
there are no previous year figures.
2. Retirement benefits:
Since there are no employees on the rolls of the company, no provision for gratuity or leave salary is made in the financial
statements.
3. Figures in the Balance Sheet, Profit and Loss Account and schedules have been rounded off to the nearest rupee.
4. Remuneration to auditors:
2008-09
Statutory audit fee 15,000
Service tax 1,545
Total 16,545
81

82
5. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. Nil.
6. Related Party Disclosures:
i) List of related parties:
Sl. No. Name of the related party Nature of relationship
1. United Breweries (Holdings) Limited Ultimate Holding Company
2. Kingfisher Airlines Limited Holding Company
3. Kingfisher Finvest India Limited Fellow Subsidiary
4. Kingfisher Training & Aviation Services Ltd. Fellow Subsidiary
5. Bangalore Beverages Limited Fellow Subsidiary
6. UB Electronic Instruments Limited Fellow Subsidiary
7. UB Infrastructure Projects Limited Fellow Subsidiary
8. UB International Trading Limited Fellow Subsidiary
9. City Properties Maintenance Company Bangalore Limited Fellow Subsidiary
10. Kingfisher Aviation Training Limited Fellow Subsidiary
11. Rigby International Corp. Fellow Subsidiary
12. United Breweries of America Inc., Delware Fellow Subsidiary
13. Inversiones Mirabel, S A Fellow Subsidiary
14. Mendocino Brewing Company Inc., USA Fellow Subsidiary
15. Rubic Technologies Inc. Fellow Subsidiary
16. Releta Brewing Company, LLC Fellow Subsidiary
17. UBSN Limited Fellow Subsidiary
18. United Breweries International (U.K.) Limited Fellow Subsidiary
19. UB Overseas Limited Fellow Subsidiary
20. UBHL (BVI) Fellow Subsidiary
ii) Related Party Transactions:
Sl. No. Nature of Transactions Holding Company
1 Kingfisher Airlines Limited 2008 – 09
Share capital Rs. 500,000
7. The company has adopted Accounting Standard - 20 on “Earning Per Share” specified in the Companies (Accounting Standards)
Rules, 2006 for calculation of EPS and the disclosures in this regard are as given below:
Particulars
Year ended 31-03-2009
Rupees
Net loss after tax (152,934)
Weighted average number of equity shares of Rs. 10/- each outstanding during the year
(No. of shares)
50,000
Basic / diluted earnings per share (Rs.) (3.06)
8. Segment information is not furnished since there is no reportable segment.
Schedules forming part of the Accounts (Contd.)
9. Information under paragraph of 3, 4C and 4D of part II of Schedule VI of the Companies Act, 1956 are not furnished, as they are not
applicable.
For and on behalf of the Board of Directors of Per our report of even date
Vitae India Spirits Limited For Vishnu Ram & Co.
Chartered Accountants
Bangalore A. Raghunathan Bharath Raghavan (S. Vishnumurthy)
July 16, 2009 Director Director Proprietor
Membership No. 22715

Cash Flow Statement for the period ended March 31, 2009
I. Cash Flow from operating activities
Profit / ( Loss ) before tax (152,934)
Adjustment for :
Increase in current liabilities 19,457
Net cash used in operating activities (133,477)
II. Cash flows from investing activities -
III. Cash flow from financing activities
Capital contribution 500,000
Net cash generated from financing activities 500,000
Net increase in cash & cash equivalents 366,523
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at the end of the period 366,523
Cash and cash equivalents comprises of:
Cash on hand 600
Balance at Bank 365,923
Note : The cash flow is prepared under the indirect method as mentioned under AS - 3 Cash Flow Statements.
Rs.
366,523
For and on behalf of the Board of Directors of Per our report of even date
Vitae India Spirits Limited For Vishnu Ram & Co.
Chartered Accountants
Bangalore A. Raghunathan Bharath Raghavan (S. Vishnumurthy)
July 16, 2009 Director Director Proprietor
Membership No. 22715
83

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE
84
I Registration Details
Balance Sheet Abstract
Registration No. 08/045717 State Code 08
Balance Sheet Date March 31, 2009
II Capital raised during the year (Amount in Rs. Thousands)
Public Issue NIL Rights Issue NIL
Bonus Issue NIL Private Placement 500.00
III Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities 500.00 Total Assets 500.00
Sources of Funds:
Paid up Capital 500.00 Reserves & Surplus NIL
Share application money NIL Unsecured Loans NIL
Secured Loans NIL Deferred tax NIL
Application of Funds:
Net Fixed Assets NIL Investments NIL
Net Current Assets 347.07 Misc. Expenditure NIL
IV Performance of Company (Amount in Rs. Thousands)
Accumulated loss 152.93
Total income NIL Total Expenditure 152.93
Profit (Loss) before tax (152.93) Profit (Loss) after tax (152.93)
Earning per Share in Rs. (3.06) Dividend rate % NIL
V Generic Names of Three Principal Products/Services of Company (as per monetary terms)
Item Code No. ( ITC Code) Not applicable
Product description Not applicable
For and on behalf of the Board of Directors of Per our report of even date
Vitae India Spirits Limited For Vishnu Ram & Co.
Chartered Accountants
Bangalore A. Raghunathan Bharath Raghavan (S. Vishnumurthy)
July 16, 2009 Director Director Proprietor
Membership No. 22715

NOTES
85

86
NOTES

NOTES
87

88
NOTES

Dr. Vijay Mallya
Capt. G.R. Gopinath
S.R. Gupte
Dr. Naresh Trehan Anil Kumar Ganguly
Board of Directors
Ravi Nedungadi Vijay Amritraj
Piyush Mankad
Capt. K.J. Samuel
G.N. Bajpai
Diwan Arun Nanda
N. Srivatsa
Company Secretary

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