Annual Report cb smile - Jet Airways

Significant Accounting Policies and Notes forming part of Consolidated Accounts (contd.)
Jet Airways Europe Services N.V.
Transactions During the Year :
- Reimbursement of Expenses (Staff Costs, Communication Costs, Rent) 2,059
(4,044)
- Service Charges 75
(88)
Closing Balance as on 31st March, 2010:
- Sundry Creditors 147
(540)
Jetair Tours Pvt. Ltd.
Transactions During the Year :
- Reimbursement of Expenses -
(1)
(Figures in brackets indicate 31st March, 2009 figures)
11. The Company has entered into Finance and Operating Lease agreements. As required under the Accounting Standard
19 on ‘Leases’, the future minimum lease payments on account of each type of lease are as follows:
a) Finance Leases / Hire Purchase
Amount (Rs. in lakhs)
Aircraft Future Minimum Present Value of Finance Charges
Lease Payments Future Minimum
Lease Payments
As at 31.03.2010
Less than 1 year 132,284 100,132 32,152
(142,399) (94,185) (48,214)
Between 1 and 5 years 489,494 406,669 82,825
(579,018) (438,266) (140,752)
More than 5 years 461,552 430,591 30,961
(664,583) (591,677) (72,906)
Total 1,083,330 937,392 145,938
(1,386,000) (1,124,128) (261,872)
(Figures in brackets indicates 31 st March, 2009 figures)
The salient features of a Hire Purchase / Finance Lease Agreement are:
. Option to purchase the aircraft either during the term of the Hire Purchase on payment of the outstanding
Principal amount or at the end of the Hire Purchase term on payment of a nominal option price.
. In the event of default, the Hirer / Lessee is responsible for payment of all costs of the Owner including the
financing cost, and other associated costs. Further a right of repossession is available to the Owner / Lessor.
. The Hirer / Lessee is responsible for maintaining the aircraft as well as insuring the same.
. In the case of Finance Lease the property passes to the Lessee, on the payment of a nominal option price at
the end of the term.
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