Jetwings intl & Domestic

Jet Airways (India) Limited - 16th Annual Report 2007-08
b) During the year, the Holding Company to enable Jet Lite (India) Limited to pay installments
of demand of income tax in respect of earlier years paid Rs. 3,708 lac on behalf of the selling
shareholders of SAL since the liability in respect of income tax for the earlier years belongs
to selling shareholders of SAL. The Holding Company also communicated this fact to selling
shareholders vide its communication letter dated 26th March, 2008 and in the absence of
reimbursement has adjusted the same towards the first installment due. Accordingly, the
balance of first installment of Rs. 10,042 lac was paid on 30th March, 2008 and remaining
installments payable subsequently in accordance with the consent terms of Rs. 41,250 lac has
been disclosed under the separate head “Deferred payment liability towards Investments in
wholly owned Subsidiary Company”.
c) As per terms of SPA, the Holding Company has taken over all assets and liabilities of SAL except
certain assets which the Company (termed as “Carved out assets and liabilities”) is obliged to
sell or dispose off at no cost to the selling shareholders of SAL or transferee as per the terms of
SPA at book values as on the date of acquisition. On that basis in the accounts of the Subsidiary
Company such carved out assets and liabilities have been disclosed and no depreciation has
been charged on fixed assets held in trust. However, considering that such assets / liabilities are
held by the Company in trust pending transfer, the Holding Company has included the same on
net basis and the difference of Rs. 345 lacs, being existing on the date of acquisition, have been
adjusted to the amount of Goodwill on consolidation. The management envisages no significant
profit / loss on transfer of these assets / liabilities as aforesaid. The details of carved out assets
and liabilities held in trust are as under:
Amount (Rs. in lac)
Particulars of carved out assets / liabilities
Assets
Buildings 292
Helicopters including helicopter inventory 3,542
Investment in Joint Venture 77
Land held as inventory 47
Loan to Prakash Industries Limited 857
Advances to suppliers against Helicopter inventory
Liabilities
Loan from Others (erstwhile Holding Company - Sahara Industrial and
59
Commercial Corporation Limited) 4,429
Sundry Creditors 100
Net difference adjusted to Goodwill 345
d) The details of assets and liabilities taken over based on the accounts of the Subsidiary Company
as on the date of acquisition and the resultant Goodwill are as under:
Amount (Rs. in lac)
Particulars
Fixed Assets 11,501
Investment 78
Current Assets 24,473
Loans and Advances 17,043
Total Assets 53,095
Less: Liabilities (93,489)
Net Liabilities (40,394)
Add: Purchase consideration as stated in para a) above 146,500
Add: Arising out of carved out assets and liabilities (net)
(Refer para c) above)
345
Goodwill on Consolidation 187,239
111