Dear Members,
Your Board of Directors are pleased to present the 21st Annual Report
of InterGlobe Aviation Limited ("Company" or "we" or
"IndiGo") along with the audited financial statements for the financial year
ended March 31, 2024 ("FY 2024"). Wherever required, the consolidated
performance of the Company and its subsidiaries have also been provided.
1. Financial Results
The standalone and consolidated financial highlights of the Company are
summarised below:
|
Consolidated |
Standalone |
Particulars |
Year ended |
Year ended |
|
March 31,2024 |
March 31,2023 |
March 31,2024 |
March 31,2023 |
Revenue from operations |
689,043.42 |
544,464.53 |
689,043.42 |
544,464.53 |
Other Income |
23,268.21 |
14,349.65 |
23,255.72 |
14,314.35 |
Total Income |
712,311.63 |
558,814.18 |
712,299.14 |
558,778.88 |
Profit / (Loss) before Tax |
80,493.09 |
(3,043.85) |
80,432.41 |
(3,167.16) |
Current Tax |
10.85 |
14.04 |
- |
- |
Deferred tax credit / (charge) |
(1,242.44) |
- |
(1,242.44) |
- |
Profit / (Loss) after Tax |
81,724.68 |
(3,057.89) |
81,674.85 |
(3,167.16) |
Other Comprehensive Income / (Loss) net of tax |
(145.92) |
77.24 |
(174.92) |
92.60 |
Total Comprehensive Income / (Loss) |
81,578.76 |
(2,980.65) |
81,499.93 |
(3,074.56) |
Earnings per equity share of the face value of Rs. 10 each |
|
|
|
|
Basic (Rs.) |
211.84 |
(7.93) |
211.71 |
(8.22) |
Diluted (Rs.) |
211.61 |
(7.93) |
211.48 |
(8.22) |
2. Company's Performance
On a consolidated basis, we achieved a total income of Rs. 712,311.63
million for FY 2024, higher by 27.47% over the previous year's total income of Rs.
558,814.18 million. We reported a net profit of Rs. 81,724.68 million for FY 2024 against
a net loss of Rs. 3,057.89 million for the previous year.
On a standalone basis, we achieved a total income of Rs. 712,299.14
million for FY 2024, higher by 27.47% over the previous year's total income of Rs.
558,778.88 million. We reported a net profit of Rs. 81,674.85 million for FY 2024 against
a net loss of Rs. 3,167.16 million for the previous year.
3. Subsidiaries and their Performance
The Company has the following two (2) subsidiaries:
Agile Airport Services Private Limited (Agile)
Agile is a wholly owned subsidiary of the Company, incorporated in the
year 2017 and is engaged in the business of providing ground handling and other allied
services to IndiGo at various airports in India.
The total income of Agile for FY 2024 was Rs. 6,913.56 million, higher
by 34.91% over the previous year's total income of Rs. 5,124.66 million. The net profit
was Rs. 49.84 million indicating a decrease of 54.39% over net profit of Rs 109.27 million
for FY 2023.
InterGlobe Aviation Financial Services IFSC Private Limited (IAFS)
IAFS is a wholly owned subsidiary of the Company, incorporated during
the year on October 12, 2023 and acts as an aircraft and aircraft engine operating lessor
for providing financial services in an IFSC, undertaking operating lease for an aircraft
ground support equipment and an aviation training simulation device. IAFS is yet to
commence its business operations.
The annual accounts of Agile and IAFS, subsidiary companies are
available on the website of the Company viz. www.goindigo.in and shall also be kept open
for inspection at the registered office of IndiGo. The Company shall also make available
the
annual accounts of these companies to any member of the Company who may
be interested in obtaining the same. The consolidated financial statements presented by
the Company include the financial results of its subsidiary companies.
A report on the performance and financial position of each of the
subsidiaries for the financial year ended March 31, 2024 in Form AOC -1 as per the
Companies Act, 2013 ("Act") is annexed to the consolidated financial statements.
The Company has adopted a policy for determining material subsidiaries
pursuant to requirements under SCSI (Listing Obligations and Disclosure Requirements),
Regulations, 2015 ("SCSI LODR Regulations"). The Policy can be viewed on the
Company's website at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/InterGlobe-Aviation-
Limited-Policy-on-Material-Subsidiary.pdf
InterGlobe Aviation Ventures LLP
Apart from the aforesaid subsidiaries of the Company, InterGlobe
Aviation Ventures LLP has been incorporated as a Limited Liability Partnership between the
Company and Agile during the year, on November 30, 2023, to engage with high potential
startups in order to provide early access to disruptive technologies, offering a
competitive edge and market intelligence to IndiGo.
4. Operational Performance
A. Operations and growth
IndiGo continued its growth in FY 2024 when it operated a total of
697,389 flights, a 17% increase compared to FY 2023. The Passenger Load Factor increased
from 82.1% in FY 2023 to 85.9% in FY 2024, demonstrating strong demand in the markets
where IndiGo operates.
In FY 2024, IndiGo also achieved the milestone of carrying more than
100 million passengers in one year, reaching 106.42 million passengers. This represents a
24% increase compared to the 85.59 million passengers transported in FY 2023.
During the year, IndiGo:
Operated scheduled services to 118 destinations, including 10
new domestic and 7 new international destinations
Completed 1,182 cargo flights, transporting more than 360,000
tons of cargo
Performed 2,767 charter flights (2,733 Military Charter and 34
Pax Charter)
Our peak operation reached 2,016 daily flights (2,001 in the commercial
schedule and 15 military flights), which represents an 11% increase compared to the 1,815
peak daily flights operated in FY 2023.
IndiGo's On-Time Performance (OTP) for FY 2024 was 81.3% on DGCA
metros. IndiGo also maintained a technical dispatch reliability of 99.9% (as published by
Airbus in February 2024), supporting the highest operational integrity.
B. Inducting aircraft and procedures to save fuel
As of March 31, 2024, our fleet consists of 192 Airbus A320 neo, 94
Airbus A321 neo, 20 Airbus A320 CCO, 45 ATR aircraft, 3 A321 Freighters (P2F), 2 B777
(damp lease) and 10 A320 (damp lease). During FY 2024, we inducted 45 new fuel-efficient
Airbus neo powered by CFM LCAP-1A engines, 1 A320 CCO, 6 ATR Aircraft, 1 A321 Freighter
(P2F), 1 B777 and 10 A320 (damp lease).
In addition to increasing the mix of new, fuel-efficient aircraft in
its fleet, IndiGo strives to adopt and implement cutting- edge measures to reduce fuel
consumption and carbon emissions. This includes fuel monitoring, pilot awareness of green
policies, engine and fuselage cleanings and weight reduction initiatives, which will be
progressively implemented in the ATR fleet.
C. Operational Initiatives
IndiGo continues to improve its customer interactions, with its social
media channels receiving a 49% increase in volume vs. FY 2023, reaching more than 1
million cases. Response times improved by 56%, from 114 minutes in FY 2023 to 49 minutes
in FY 2024. IndiGo continues investing in technologies, processes and people aimed at
efficiency improvements and adopting cutting-edge IT solutions to enhance customer
support, such as the implementation of salesforce across all communication channels. These
new tools allow IndiGo to maintain high service levels while managing increased demand
(e.g., in FY 2024, our call centers received more than 90 million calls, a 21% increase
from the previous year).
We remain committed to providing outstanding training for our staff and
in FY 2024, there was a 28% increase in the total headcount trained at iFly, our in-house
training facility, completing almost 120,000 individual training programs. Following last
year's launch of Competence-Based Training & Assessment (CBT) and Evidence-Based
Training (EBT) in the Airbus fleet, this year IndiGo became the first airline operator
globally to launch and implement the same programs in the ATR fleet.
IndiGo's Flight Operations team continued to pursue initiatives to
increase safety, operational efficiency and reduce disruptions caused by adverse weather.
One such measure is DGCA's approval to reduce Landing Minimas under certain conditions,
which will safely allow a more reliable and efficient service to passengers during the
winter season.
Our teams are collaborating with the AAI's Central Air Traffic Flow
Management (CATFM) team to ensure better coordination of operations and reduce delays.
Additionally, we have implemented more efficient aircraft lateral separation rules to
increase airspace capacity and allow flying more fuel-efficient routes.
IndiGo continues its digitalisation and adoption of AI tools to improve
efficiency. We are partnering with Airbus on predictive aircraft maintenance, leading the
way in using Airbus' Skywise Aircraft Health Monitoring platform and continuing to
transition core software suites to cloud-based solutions, enhancing robustness and
productivity.
Our Airport Operations and Customer Service team are integrating
fuel-efficient Combo Units (Ground Power + Air conditioning) to serve aircraft during
airport turnarounds. We are also introducing environmentally friendly equipment in our
operations, with more than 220 green passenger coaches, light vehicles and baggage tugs
introduced this year, replacing older equipment.
5. Dividend
The Dividend Distribution Policy of the Company is available on the
website of the Company and can be accessed at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/InterGlobe-Aviation-Limited-Dividend-
Distribution-Policy.pdf The Policy sets out the parameters and factors to be considered by
the Board in determining the distribution of dividend to its members and/or retaining
profits of the Company. There has been no change in this Policy during the year under
review.
Based on the Company's performance, cash flow position and the losses
carried forward from the previous years, the Board has not recommended any dividend on the
equity shares of the Company for FY 2024.
6. Transfer to General Reserve
The Directors do not propose to transfer any amount to reserves.
7. Employee Stock Option Schemes
During the year under review, the members of the Company approved the
'InterGlobe Aviation Limited - employee Stock Option Scheme 2023'.
There has been no material change in the existing ESOP Schemes of the
Company viz. 'InterGlobe Aviation Limited - employee Stock Option Scheme 2015 and 2023'
and the Schemes have been implemented in compliance with relevant/ applicable ESOP
Regulations/ Guidelines.
The Secretarial Auditors, M/s. RMG & Associates, Practising Company
Secretaries, have certified that the Employee Stock Option Schemes of the Company have
been implemented in accordance with the applicable Regulations and the resolutions passed
by the members in this regard.
The disclosure(s) as required under the SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 are disclosed on the website of the Company
and can be accessed at https://www.goindigo.in/content/dam/goindigo/
investor-relations/other-related-documents/2023-24/statement-under-Reg-14-of-the-SEBI-share-based-employee-benefits-
andsweat-equity-regulations-2021 -2024.pdf
8. Increase in Capital Structure
During the year under review, 431,590 equity shares of Rs. 10/- each
were allotted on exercise of vested Stock Options by the eligible employees of the
Company. Consequently, the issued and paid-up share capital of the Company as on March 31,
2024 was Rs. 3,859,786,890 divided into 385,978,689 equity shares of Rs. 10/- each.
9. Related Party Transactions
The Company had adopted 'InterGlobe Aviation Limited - Policy on
dealing with Related Party Transactions' ("RPT Policy") in compliance with
Regulation 23 of the SEBI LODR Regulations. During FY 2024, there has been no change in
the RPT Policy. The transactions entered into by the Company with its related parties were
in compliance with the RPT Policy and in the best interest of the Company. The RPT Policy
is available under the Investor Relations section of the website of the Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/IGRL-Policy-on-Related-Party-
Transactions-2019.pdf.
All the contracts/ arrangements/ transactions entered into by the
Company with its related parties during FY 2024, were in the ordinary course of business
and on an arm's length basis and were approved by the Audit Committee. We have obtained
necessary approvals, as required, in accordance with the RPT Policy.
During FY 2024, the Company has not entered into any
arrangement/transaction/contract with its related parties which could be considered
material and required approval of the Board or the members. Accordingly, the disclosure of
the particulars of the related party transactions in form AOC -2 as required under Section
134(3)(h) of the Act is not applicable.
For further details of related party transactions during the year,
please refer to note number 36 of the notes forming a part of the standalone financial
statements, attached to the Annual Report.
10. Directors and Key Managerial Personnel Directors
As on March 31, 2024, the Board comprised of eight (8) members with an
appropriate mix of Non-Executive Directors, executive Directors and Independent Directors.
In terms of applicable provisions of the Act and the Articles of
Association of the Company, Mr. Anil Parashar (DIN: 00055377), Director of the Company
retires by rotation at the ensuing annual general meeting and is eligible for appointment.
The notice of the ensuing annual general meeting includes the proposal for appointment of
Mr. Parashar.
Ms. Pallavi Shroff was appointed as an Independent Director w.e.f
September 19, 2019 for a period of five (5) years. Her term is due to expire on September
18, 2024. Being eligible in terms of the Act and the SEBI LODR Regulations, the Board on
the recommendation of the Nomination and Remuneration Committee has approved,
re-appointment of Ms. Pallavi Shroff for a period of five (5) years, subject to passing of
special resolution by the members.
Brief resume and other details of Mr. Anil Parashar and Ms. Pallavi
Shroff have been furnished in the Annexure of the notice of annual general meeting.
The Company has received declarations from all the Independent
Directors confirming that they meet the criteria of independence as prescribed in the Act
and the SEBI LODR Regulations.
I n the opinion of the Board, the Independent Directors of the Company
are persons of high repute, integrity and possess the relevant expertise and experience in
their respective fields. They fulfil the conditions specified in the Act, rules made
thereunder and SEBI LODR Regulations and are independent of the management.
None of the Directors on the Board of the Company have been debarred or
disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs or any other
statutory authority.
Key Managerial Personnel
During the year, Mr. Sanjay Gupta resigned as Company Secretary and
Chief Compliance Officer of the Company effective end of day, February 2, 2024. The Board
of Directors on the recommendation of the Nomination & Remuneration Committee,
appointed Ms. Neerja Sharma as Company Secretary and Chief Compliance Officer of the
Company effective February 3, 2024.
Mr. Rahul Bhatia, Managing Director, Mr. Pieter Elbers, Chief executive
Officer, Mr. Gaurav Negi, Chief Financial Officer and Ms. Neerja Sharma, Company Secretary
and Chief Compliance Officer are the Key Managerial Personnel of the Company in accordance
with the provisions of Section 2(51) and 203 of the Act read with Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014.
11. Number of Meetings of the Board
During FY 2024, fifteen (15) meetings of the Board of Directors were
held. For details of these Board meetings, please refer to the section Report on Corporate
Governance of this Annual Report.
12. Committees of the Board
As on March 31, 2024, the Board had the fallowing five committees:
i. Audit Committee
ii. Nomination and Remuneration Committee
iii. Risk Management Committee
iv. Corporate Social Responsibility Committee
v. Stakeholders Relationship Committee
The details of the composition, terms of reference, number of committee
meetings held during FY 2024 and attendance of the Committee members at each meeting are
given in the Report on Corporate Governance which forms a part of the Annual Report.
13. Annual evaluation of the Board, its Committees and Individual
Directors
Pursuant to the provisions of the Act and the SCSI LODR Regulations, a
process is carried out on an annual basis to evaluate the performance of the Board, Board
Committees, Chairperson of the Board and all Directors, including Independent Directors.
The evaluation is aimed at improving the effectiveness of all these constituents and
enhancing their contribution to the functioning of the Board.
For FY 2024, on the recommendation of the Nomination and Remuneration
Committee (NRC), a structured questionnaires were prepared covering various aspects of the
Board's functioning such as adequacy of the composition of the Board and its Committees,
Board culture, governance etc that were sent directly to the Board Members. This was
supplemented by individual conversations with each of the Board Members. A similar
exercise was carried out to evaluate the performance of each of the Board Committees and
individual Directors.
The evaluation process was led by the Chairperson of the NRC with
support from the Chairperson of the Board.
The results of evaluation of the Directors, Board and its various
Committees were subsequently discussed by the Board at its meeting and the areas for
improvement of the functioning were noted.
In a separate meeting of the Independent Directors, performance of the
Non-Independent Directors, Chairperson of the Board and the Board as a whole, were also
discussed, taking into account the views of executive and Non-Executive Directors.
14. Remuneration Policy
We have adopted the 'InterGlobe Aviation Limited - Nomination and
Remuneration Policy' in compliance with provisions of the Act and SEBI LODR Regulations,
for identification, selection and appointment of Directors, Key Managerial Personnel
(KMPs) and Senior management of the Company. The Policy lays down the process and
parameters for the appointment and remuneration of the KMPs and other Senior management
personnel and the criteria for determining qualifications, highest level of personal and
professional ethics, positive attributes, financial literacy and independence of a
Director. The Policy is available on the website of the Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/
policies/2021/InterGlobe-Nomination-and-Remneraion-Policy.pdf
There has been no change made in the Remuneration Policy during the
year under review.
15. Succession Planning
We have been following a rigorous process of leadership talent review,
named "Talent Council". As an outcome of the Talent Council, we discuss and
identify successors for all leadership roles. These successors are identified at three
different levels of readiness. We focus on developing this pool of identified successors
through diverse learning experiences and work on filling the gaps through external talent.
We are consciously transitioning from a function vertical specific succession strategy to
building a pool of fungible leaders who can assume new roles in any work context.
16. Risk Management Framework
The Company has a structured Enterprise Risk Management framework
("ERM framework") based on the guiding principles from SEBI of identifying,
assessing and mitigating the risks. We have strong and robust internal processes to
monitor & manage risks and it forms an integral part of decision-making and is dynamic
in nature, undergoing continuous improvement. The ERM framework follows an annual process
of setting objectives, identifying key risks on an ongoing basis, developing a mitigation
action plan and monitoring.
The Risk Management Committee has been empowered to frame, implement
and monitor the risk management practices. The Committee has been entrusted with
systematically overseeing, reviewing and updating the risk management calendar, based on
certain risks becoming more important during the year. The Committee meets on regular
intervals and discusses risks relating to airline security & safety, supply-chain
disruptions, unfavourable fuel and forex movement, competition, adverse regulatory changes
and litigations, pandemic, talent retention, cyber threat and data protection, employee
health and labour relations, sustainability and climate change, business continuity plan,
reputation, aircraft grounding and any other new risk that may be identified by the
management.
The Audit Committee has additional oversight in the area of financial
risks and the Nomination and Remuneration Committee ensures there is a succession plan in
place for leadership team.
A note on key risks of the Company is given in the Management
Discussion and Analysis Report which forms a part of the Annual Report.
17. Corporate Social Responsibility
A brief outline of the Corporate Social Responsibility
("CSR") Policy of IndiGo and the initiatives undertaken by it on CSR activities
during the year are set out in Annexure - A to this Report, in the format prescribed in
the Companies (Corporate Social Responsibility Policy) Rules, 2014.
For other details regarding the CSR Committee, please refer to the
Report on Corporate Governance, which forms a part of the Annual Report.
The Corporate Social Responsibility Policy as approved by the Board is
available on the Investor Relations section of the website of the Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/InterGlobe-Aviation-
Limited-Corporate-Social-Responsibility-Policy-2.pdf.
There has been no change made in the CSR Policy during the year under
review.
18. Statutory Auditors
M/s S.R. Batliboi & Co. LLP, Chartered Accountants (ICAI Firm
Registration Number 301003E/E300005) were appointed as Statutory Auditors of the Company
at the 16th AGM held on August 27, 2019 to hold office from the conclusion of the said
meeting till the conclusion of the 21st AGM to be held later this year. The term of office
of M/s S.R. Batliboi & Co. LLP, as Statutory Auditors of the Company will conclude
from the close of the forthcoming AGM.
The Board of Directors, based on the recommendation of the Audit
Committee, at its meeting held on May 23, 2024, reappointed M/s S.R. Batliboi & Co.
LLP, Chartered Accountants as the Statutory Auditors of the Company to hold office for a
second term of five consecutive years from the conclusion of the 21st AGM till the
conclusion of the 26th AGM to be held in the year 2029.
The Board recommends their reappointment to the members. The notice
convening the 21st AGM to be held on August 23, 2024 sets out the details.
M/s S.R. Batliboi & Co. LLP have audited the financial statements
of the Company for the year under review. The observations of Statutory Auditors in their
Report read with relevant Notes to Accounts are self-explanatory and therefore, do not
require further explanation. The Auditors' Report does not contain any qualification,
reservation or adverse remark. There were no frauds reported by the Statutory Auditors to
the Audit Committee or the Board under Section 143(12) of the Act.
19. Secretarial Auditors
M/s. RMG & Associates, Company Secretaries (Firm Registration
Number P2001DE016100) were appointed to conduct secretarial audit of the Company during FY
2024.
The Secretarial Audit Report for the said year is annexed herewith and
forms part of this report as Annexure - B. The Report does not contain any qualification,
reservation or adverse remark. There were no frauds reported by the Secretarial Auditors
to the Board under Section 143(12) of the Act.
20. Cost Audit / Records
Maintenance of cost records and requirement of cost audit as prescribed
under the provisions of Section 148(1) of the Act are not applicable for the business
activities carried out by the Company.
21. Whistle Blower Policy / Vigil Mechanism
We believe that it is critical to listen to whistle blowers to take the
path to sustainable growth and good governance. Any actual or potential violation of the
Company's Code of Conduct, or any law governing IndiGo, howsoever insignificant, is a
matter of serious concern for us. We understand that timely reporting of such violations
could avoid or minimise the Company's reputational or financial losses. To this effect and
pursuant to Section 177(9) of the Act and Regulation 22 of the SEBI LODR Regulations, the
Company has laid down best-in-class whistle blower/vigil mechanism, which enables timely
and reliable reporting of actual or suspected violations.
As part of this, the Company has laid down a Whistle blower Policy,
which provides the procedures for employees and other stakeholders to report unacceptable
practices, misconduct or violation of its Code of Conduct or laws, provides necessary
safeguards to protect whistle blowers from victimisation, retaliation and provides for
direct access to the Chairperson of the Audit Committee, in exceptional circumstances.
During FY 2024, no person was denied access to the Chairperson of the Audit Committee. The
policy is available under the Investor Relations section of the website of the Company at
https://www.
goindigo.in/content/dam/goindigo/investor-relations/policies/2024/Whistleblower-Policy
Updated 02-07-2024.pdf
The whistle blowing mechanism also comprises a whistle blower helpline,
named the "6C ethics Helpline". This provides whistle blowers five channels to
report violations, including toll-free hotline, email, web portal, chatbot and postal
mail. Four of these reporting channels provide whistle blowers the choice to report
anonymously. IndiGo takes pride in successfully implementing its whistle blowing helpline
in ways that have instilled confidence amongst employees and other stakeholders to raise
their concerns.
All complaints of suspected violations are taken seriously and reviewed
promptly. All investigations are carried out objectively and independently, following the
principles of natural justice. Based on the nature and severity of the violation of the
Code of Conduct, the Company policies and/or the law, appropriate action is taken. The
Audit Committee oversees the implementation of the Policy and reviews the resolution of
complaints on a quarterly basis.
22. Disclosure under Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, as Amended ("POSH ACT")
IndiGo has a zero-tolerance policy towards sexual harassment at
workplace reported by any woman against an employee. The Company has constituted an
Internal Committee which has a female Chairperson who is a member of our Senior management
team and also has an external female member who is a lawyer. The Internal Committee
ensures that all matters are resolved in a timely manner.
We have a robust internal mechanism and policy on 'Prevention of Sexual
Harassment at Workplace' to deal with such matters. All employees are sensitised to the
policy right from the day of employment. We also conduct awareness programs for employees
on the policy and have awareness campaigns with details of how to report a complaint along
with the details of the Internal Committee members, which are displayed across all our
working locations. The Internal Committee ensures that all cases reported are resolved in
a timely manner, in accordance with the POSH Act. All investigations are handled in a very
objective, sensitive and fair manner without attaching any prima-facie guilt to the
respondent merely upon receipt of a complaint against the employee. Utmost confidentiality
is maintained while handling these matters.
For details on the cases reported and resolved during FY 2024 and the
mechanism followed by the Company while dealing with such cases, please refer to the
Business Responsibility and Sustainability Report forming part of the Annual Report.
23. Internal Financial Controls and their Adequacy
An adequate Internal Financial Control (IFC) system has been put in
place to ensure compliance with various policies, practices and statutes. The Company
ensures that such IFC systems are commensurate with the size and complexity of our
business and are adequate and operating effectively on an ongoing basis.
The Board has adopted policies and procedures for:
Timely preparation of reliable financial information
effectiveness and efficiency of operations
Accuracy and completeness of the accounting records
Adequacy of safeguards for assets
Prevention and detection of frauds and errors
The details in respect of IFC and their adequacy are included in the
Management Discussion and Analysis Report, which forms part of the Annual Report.
24. Public Deposits
The Company has neither accepted nor renewed any deposits during FY
2024 in terms of Chapter V of the Act.
25. Particulars of Loans, Investments and Guarantees
The particulars of loans, investments and guarantees as on March 31,
2024, covered under Section 186 of the Act read with the Companies (Meetings of Board and
its Powers) Rules, 2014, as amended and SEBI LODR Regulations, are given in the notes to
the standalone financial statements, which forms part of the Annual Report.
26. Material Changes and Commitments Affecting the Financial Position
of the Company, between the end of the Financial Year FY 2024 and the date of this Report
Other than as stated elsewhere in this Report, there are no material
changes and commitments affecting the financial position of the Company between the end of
the financial year and the date of this Report.
27. Management Discussion and Analysis Report
The Management Discussion and Analysis Report on the Company's
financial and operational performance, industry trends and other required details prepared
in compliance with Regulation 34 of the SEBI LODR Regulations for FY 2024 forms a part of
the Annual Report.
28. Report on Corporate Governance
In compliance with Regulation 34 read with Schedule V of the SEBI LODR
Regulations, the Report on Corporate Governance of the Company, inter-alia,
covering composition, details of meetings of the Board and its Committees, together with a
certificate from the Secretarial Auditors regarding compliance of conditions of corporate
governance, forms a part of the Annual Report.
A certificate from the Chief executive Officer and Chief Financial
Officer in terms of Regulation 17 of the SEBI LODR Regulations, inter-alia,
confirming the correctness of the financial statements and cash flow statements, adequacy
of the internal control measures and reporting of matters to the Audit Committee, also
forms a part of the Annual Report.
In terms of SEBI LODR Regulations, a certificate from M/s RMG &
Associates, Company Secretaries (Firm Registration No. P2001DE016100) confirming
compliance of the conditions of Corporate Governance are annexed hereto and forms part of
this Annual Report.
29. Business Responsibility and Sustainability Report
In compliance with SEBI LODR Regulations, the Business Responsibility
and Sustainability Report for FY 2024 describing the various initiatives undertaken from
an ethical, environment, social and governance perspective during FY 2024 forms part of
the Annual Report
30. Annual Return
In terms of Sections 92(3) and 134(3)(a) of the Act, annual return is
available under the 'Investors' section of the Company's website, www.goindio.in and can
be viewed at the link: https://www.goindigo.in/content/dam/goindigo/investor-relations/
other-related-documents/2023-24/Annual-Return-MGT-7-FY-2023-24.pdf.
31. Significant Material Orders Passed by the Regulators, Courts and
Tribunals
There are no significant material orders passed by the regulators,
courts or tribunals impacting the going concern status of the Company and its operations
in future.
32. Awards and Recognitions
During FY 2024, we received multiple awards and recognition. Details in
respect of such awards and recognition received by the Company are captured at Page No.
34-35, which forms a part of the Annual Report.
33. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Act, the Board, based on
representations received from the management and the processes involving the Company's
statutory and internal audit functions, and to the best of its knowledge, ability and due
inquiry, confirms that:
i. In preparation of the annual accounts, applicable accounting
standards have been followed and proper explanation for any material departures has been
provided.
ii. Applicable accounting policies have been selected and applied
consistently in order to form views/make judgments and estimates that are reasonable and
prudent. This is intended to facilitate a true and fair view of the state of affairs of
the Company at the end of FY 2024 including profit/loss of the Company for that period.
iii. Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act is taken for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities.
iv. Annual accounts have been prepared on a going concern basis.
iv. I nternal Financial Controls (IFCs) to be followed by the Company
have been laid down and such IFCs are adequate and operating effectively.
vi. Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and such systems are adequate and operating effectively.
34. Particulars of Employees
The statement containing disclosure of remuneration under Section
197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel), Rules, 2014, as amended is given in Annexure - C forming a part of
this Report. The information as per Rule 5(2) and Rule 5(3) of the abovementioned Rules
pertaining to the names of top ten employees and other particulars of employees is
provided in a separate annexure. However, as per the provisions of Section 136(1) of the
Act and the Rules made thereunder, the Annual Report and the financial statements,
excluding the aforesaid annexure, are being sent to the members, and other persons
entitled thereto. Any Member interested in obtaining this statement, may write to the
Company Secretary requesting for the same.
None of the employees listed in the Annexure is related to any Director
of the Company.
35. Transfer to Investor Education and Protection Fund
During the year under review, the Company transferred unpaid/ unclaimed
dividend, amounting to Rs. 2,51,355 for FY 2016 (Final Dividend) to the Investor Education
and Protection Fund (IEPF) Authority of the Central Government of India.
36. Conservation of Energy, Technology Absorption
We persistently strive to run our operations more efficiently to reduce
fuel consumption and resultant fuel emissions. This endeavour entails IndiGo's continuous
commitment towards conservation of energy and motivates it to embrace newer technological
advances.
The Company has incorporated policies, including flight and ground
procedures, for conservation of fuel and has trained flight crew and aircraft maintenance
engineers to ensure that fuel is conserved to the extent it is safely possible.
The Company ensures that there is adequate fuel for its aircraft, after
evaluating various traffic trends in the air and also on the ground, thus avoiding any
additional/ unnecessary fuel upliftment. The Company has installed software for accurate
flight planning. These software provide accurate maps and the most efficient flight path,
employing continuous descent approaches and economy cruise speeds. It also provides
recommendations for optimising engine settings for take-off and climb. Further, innovative
statistical data driven solutions has been adopted along with recommended manufacturer
upgrades for descent profile optimisation. We are also working with Airbus on big data
analytics using Airbus platforms like SKYWISE.
The Company has also adopted fuel policies designed to reduce costs on
the ground, including the use of the Eco-Power Cngine Wash process for aircraft engines,
the use of ground equipment in place of aircraft auxiliary power units (which consume more
fuel), use of single engine for taxiing on ground and introduction of other
engineering/operating protocols.
We continue to use technology to enhance processes to ensure safe and
comfortable travel by air which helped gain customer confidence in IndiGo. Innovation such
as solar Baggage Freight Loader (BLF) and Combo unit [combined Ground Power Unit (GPU) and
Aircraft Cooling Unit (ACU)], helped in saving Air Turbine Fuel, reducing carbon
emissions. We are investing in Combo units which reduce Auxiliary Power Unit (APU) usage
on ground and helped in reducing APU fuel burn and reducing carbon footprint.
We are engaged with stakeholders to collaborate on multiple air space
optimisation initiatives like shortening of routes, optimum flight levels, promulgation of
required navigation performance (RNP) approaches, LPV (localiser performance with vertical
guidance) approaches, reduction of distance through conditional routes (CDR). Our ongoing
efforts involve close cooperation with the authorities to secure approval for RNP AR. In
comparison to other RNAV procedures, RNP AR offers notable operational and safety
advantages, as well as introducing enhanced navigation capabilities in terms of precision
and integrity.
Our ability to reduce approximately 44,128 tonnes of carbon emissions
is attributed to the use of CDR, re-dispatch techniques, improved planning for the nearest
alternate and optimizing flight levels.
With the introduction of more EDTO equipped aircraft, we are
strategically positioned to optimise overseas routes enabling us to achieve higher levels
of operational efficiency. By utilising EDTO, we aim to decrease carbon emissions by 2131
tonnes.
Our newly inducted ATR aircrafts with XT engines enable a fuel saving
of 3% compared to earlier engine variant. We are also working with the manufacturer to
upgrade our existing fleet with XT engines.
We have been consistently collaborating with Air Navigation Service
Providers and Air Authority of India to align separation minima with International Civil
Aviation Organisation (ICAO) recommendations, which has led to the implementation of a
surveillance separation minimum of 5 NM between identified aircraft, within terminal
airspaces. This proactive measure has resulted in tangible benefits such as reduced fuel
consumption and a decrease in carbon emissions.
Further, operational endeavours have helped save carbon emissions to
the tune of approximately 66,000 tonnes through single engine taxiing, decent profile
optimisation, reduced flap take-off & landing and focused fuel uplift.
The Company has sought to reduce the weight of its aircraft by
selecting lighter seats and by choosing not to have in- flight entertainment systems. The
aircraft weight has been further reduced by equipping the entire fleet with electronic
Flight Bags (EFB) and removing paper manuals weighing 40kg from each Airbus aircraft. As
an example, this small initiative alone will annually save fuel to the tune of 980
tonnes/3,110 tonnes of carbon emissions approximately.
We continue to explore the feasibility of using ground vehicles on
cleaner alternative fuels like CNG/electricity to reduce carbon emissions at airports.
37. Compliance with Secretarial Standards
The Company is fully compliant with the applicable Secretarial
Standards (SS) viz. SS-1 & SS-2 on Meetings of the Board of Directors and General
Meetings respectively.
38. Foreign exchange Earnings and Outgo
The details of foreign exchange earnings and outgo for FY 2024, on an
accrual basis, are set out below:
Particulars |
Amount (Rs. in million) |
Foreign exchange earnings |
103,494.59 |
Foreign exchange outgo |
237,658.13 |
39. Acknowledgement
The Board is grateful for the continuous patronage of our valued
customers and remains committed to ensuring that the Company provides an on-time,
courteous and hassle-free experience. The Board acknowledges and appreciates the hard work
and dedication of employees of the Company who have stood strong and worked together as a
team during FY 2024. We also take this opportunity to express its appreciation to the
Central and State governments, regulatory authorities, investors, bankers and all other
stakeholders for their trust and support and reaffirms its commitment to be the airline of
choice for all its stakeholders.
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