Annual Report cb smile - Jet Airways

Significant Accounting Policies and Notes to Accounts (contd.)
13) EARNINGS PER SHARE (EPS) :
The earnings per equity share, computed as per the requirements of Accounting Standard–20 “Earnings Per Share”
is as under:
Amount (Rs. in lakhs)
Particulars 2009-10 2008-09
Net (Loss) after tax (46,765) (40,234)
(Loss) attributable to Equity Shareholders (A) (46,765) (40,234)
No. of Equity Shares outstanding during the year (B) 86,334,011 86,334,011
Nominal Value of Equity Shares (Rupees) 10 10
Basic and Diluted EPS (Rupees) (C = A/B) (54.17) (46.60)
14) The Deferred Tax as at 31st March, 2010 comprises of the following:
Amount (Rs. in lakhs)
Particulars
Deferred Tax Liability
2009-10 2008-09
Related to Fixed Assets
Deferred Tax Asset
73,210 46,929
Unabsorbed Depreciation/Business Loss (Refer Note below) 68,481 41,847
Other Disallowances under Income Tax Act, 1961 4,729 5,082
Deferred Tax Asset/(Liability) (Net)
Note:
- -
In the absence of virtual certainty, Deferred Tax Asset on account of unabsorbed depreciation and business loss has
been recognised to the extent it can be realised against reversal of deferred tax liability on account of depreciation.
15) As per Accounting Standard - 29, Provisions, Contingent Liabilities and Contingent Assets, given below are movements
in provision for Frequent Flyer Programme, Redelivery of Aircraft, Aircraft Maintenance Costs and Engine Repairs Costs.
a) Frequent Flyer Programme :
The Company has a Frequent Flyer Programme named ‘Jet Privilege’, wherein the passengers who frequently
use the services of the Airline become members of ‘Jet Privilege’ and accumulate miles to their credit. Subject
to certain terms and conditions of ‘Jet Privilege’, the passenger is eligible to redeem such miles lying to their
credit in the form of free tickets.
The cost of allowing free travel to members as contractually agreed under the Frequent Flyer Programme is
accounted considering the members’ accumulated mileage on an incremental cost basis. The movement in the
provision during the year is as under:
Amount (Rs. in lakhs)
Particulars 2009-10 2008-09
Opening Balance 3,344 2,949
Add: - Additional Provisions during the year 1,346 1,446
Less: - Amounts used during the year (1,053) (1,051)
Less: - Unused Amounts reversed during the year (416) -
Closing Balance 3,221 3,344
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