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Cleartrip Private Limited: (400100) Disclosure of General Information About Company
Cleartrip Private Limited: (400100) Disclosure of General Information About Company
Cleartrip Private Limited: (400100) Disclosure of General Information About Company
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Opinion
We have audited the accompanying consolidated financial statements of Cleartrip Private Limited (hereinafter referred to as the "Holding
Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group"), which comprise the Consolidated
Balance Sheet as at March 31, 2019, and the Consolidated statement of Profit and Loss and the Consolidated cash flows Statement for the
year then ended, and notes to the Consolidated financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "the consolidated financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of their consolidated state of affairs of the Group as at March 31,
2019, of consolidated loss and its consolidated cash flows for the year then ended.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of
our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in India in terms of Code of Ethics issued by Institute of Chartered Accountant of India ("ICAI"), and the relevant
provisions of the Act and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Consolidated Financial Statements and Auditor's Report Thereon
The Holding Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Director's report but does not include the financial statements and ours auditors report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Holding Company's Board of Directors is responsible for the preparation and presentation of these consolidated financial statements in
term of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance
and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act. The respective Board of Directors of the companies included in the Group are responsible
for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for
preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as
aforesaid.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group are responsible
for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of
the Group.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing ("SAs") will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
We give in "Annexure A" a detailed description of Auditor's responsibilities for Audit of the Consolidated Financial Statements.
As required by Section 143(3) of the Act, we report, to the extent applicable, that:In our opinion, according to information, explanations
given to us, the provisions of Section 197 of the Act and the rules thereunder are not applicable to the Group,as it is a private Company.We
have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit of the aforesaid consolidated financial statements.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have
been kept so far as it appears from our examination of those books and the reports of the other auditors.
The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement dealt with by this
Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial
statements.
In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
On the basis of the written representations received from the directors of the Holding Company as on 31st March, 2019 taken on record by
the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies incorporated in India,
none of the directors of the Group companies, incorporated in India is disqualified as on 31st March, 2019 from being appointed as a director
in terms of Section 164 (2) of the Act.
With respect to the adequacy of internal financial controls with reference to financial statements of the Group and the operating effectiveness
of such controls, refer to our separate report in "Annexure B".
With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's)
Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group- Refer
Note 21 to the consolidated financial statements.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
The Group did not have any material foreseeable losses on long-term contracts including derivative contracts.
There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Holding Company, and
its subsidiary companies incorporated in India.
In our opinion, according to information, explanations given to us, the provisions of Section
197 of the Act and the rules thereunder are not applicable to the Group,as it is a private
Company.
Chartered Accountants
_______________
Deepak Rao
Partner
Membership No.113292
Place: Bengaluru
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF CLEARTRIP PRIVATE LIMITED.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has internal financial controls
with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its
associates and jointly controlled entities to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Group and its associates and jointly controlled entities to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.Obtain
sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its
associates and jointly controlled entities to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of
which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by
other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial
statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Chartered Accountants
_______________
Deepak Rao
Partner
Membership No.113292
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Place: Bengaluru
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF CLAERTRIP PRIVATE LIMITED
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' in the Independent Auditors' Report of even date to
the Members of Cleartrip Private Limited on the consolidated Financial Statements for the year ended 31st March 2019]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2019, we have
audited the internal financial controls with reference to consolidated financial statements of Cleartrip Private Limited (hereinafter referred to
as "the Holding Company") and its subsidiary companies, which are companies incorporated in India, as of that date.
The respective Board of Directors of the Holding company and its subsidiary companies, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial controls based on the internal control with reference to consolidated financial
statements criteria established by the respective companies considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("the ICAI").
These responsibilities include the design, implementation and maintenance of internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation
of reliable financial information, as required under the Act.
Auditor's Responsibility
Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial statements of the
Holding company and its subsidiary companies, which are companies incorporated in India, based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the
ICAI and the Standards on Auditing prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether internal financial controls with reference to consolidated financial statements was established and
maintained and if such controls operated effectively in all material respects.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Our audit involves performing procedures to obtain audit evidence about the internal financial controls with reference to consolidated
financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial
statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing
the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to
in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls
with reference to consolidated financial statements of the Holding company and its subsidiary companies, which are companies incorporated
in India.
A company's internal financial control with reference to consolidated financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in
accordance with generally accepted accounting principles. A company's internal financial control with reference to consolidated financial
statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
the company's assets that could have a material effect on the consolidated financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject
to the risk that the internal financial control with reference to consolidated financial statements may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, and to the best of our information and according to the explanations given to us, the Holding Company and its subsidiary
companies which are companies incorporated in India, have, in all material respects, an internal financial controls with reference to
consolidated financial statements and such internal financial controls with reference to consolidated financial statements were operating
effectively as at March 31, 2019, based on the internal control with reference to consolidated financial statements criteria established by the
respective companies considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Chartered Accountants
______________
Deepak Rao
Partner
Membership No.113292
Place: Bengaluru
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Adjustments for decrease (increase) in other current assets (C) -862 (D) -4,147.99
Adjustments for increase (decrease) in trade payables 270.98 9,912.34
Adjustments for provisions -14.5 230.8
Total adjustments for working capital -2,337.86 -608.52
Total adjustments for reconcile profit (loss) 1,499 2,315.83
Net cash flows from (used in) operations -2,122.45 -3,921.04
Footnotes
(A) equity settled share based payment provision for doubtful debts w/off provision for doubtful debts bad debts w/off interest
income profit on sale/ scrap of asset,Bad debts and advance written off
(B) equity settled share based payment provision for doubtful debts w/off provision for doubtful debts bad debts w/off interest
income profit on sale/ scrap of asset
(C) loans and advances
(D) loans and advances
(E) Direct tax paid
(F) Direct tax paid
(G) investment in FD
(H) investment in FD
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Value of shares subscribed and fully paid 340,82,04,630 304,92,14,030 340,82,04,630 304,92,14,030
Number of shares subscribed but not fully paid [shares] 0 [shares] 0 [shares] 0 [shares] 0
Value of shares subscribed but not fully paid 0 0 0 0
[shares] [shares]
Total number of shares subscribed 34,08,20,463
[shares] 30,49,21,403
34,08,20,463
[shares] 30,49,21,403
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Disclosure of shareholding more than five per cent in company [Table] ..(1)
Unless otherwise specified, all monetary values are in INR
Classes of share capital [Axis] Equity shares 1 [Member]
Name of shareholder [Axis] Shareholder 1 [Member]
01/04/2018 01/04/2017
to to
31/03/2019 31/03/2018
Disclosure of shareholding more than five per cent in company [Abstract]
Disclosure of shareholding more than five per cent in company [LineItems]
Type of share Equity Equity
ClearTrip, Inc. ClearTrip, Inc.
Name of shareholder (Mauritius) (Mauritius)
Country of incorporation or residence of shareholder MAURITIUS MAURITIUS
[shares]
Number of shares held in company 34,08,20,462
[shares] 30,49,21,402
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Footnotes
(A) Inter company payable, creditors for capital goods, customer deposit, Expenses payable, Others including statutory liabilities
(B) Inter company payable, creditors for capital goods, customer deposit, Expenses payable, Others including statutory liabilities
(C) Ineterst accrued on fixed asset
(D) Interest accrued on FD
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
[200800] Notes - Disclosure of accounting policies, changes in accounting policies and estimates
Unless otherwise specified, all monetary values are in INR
01/04/2018 01/04/2017
to to
31/03/2019 31/03/2018
Disclosure of accounting policies, change in accounting policies and Textual information (2) Textual information (3)
changes in estimates explanatory [TextBlock] [See below] [See below]
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory [Text Block]
Background
Cleartrip Private Limited ('the Company') was incorporated as a private limited company on 12 May 2005. The Company is an online travel
management company which provides its customers an opportunity to book airline tickets, train tickets and hotel accommodations through its
online web portal. On 31 March 2006, the Company, pursuant to a share purchase agreement between ClearTrip Inc., Mauritius and the
shareholders of the Company, became a wholly owned subsidiary of ClearTrip, Inc. (Mauritius). ClearTrip, Inc. (Mauritius) is a wholly
owned subsidiary of ClearTrip Inc. Cayman Islands. ClearTrip Inc. Cayman Islands is a subsidiary of SAP (Ultimate holding company).
On 4th September 2017, Cleartrip Packages & Tours Private Limited was set up as a wholly owned subsidiary of the Company.
The consolidated financial statements include the accounts of the Company and its subsidiaries, Cleartrip Packages & Tours Private Limited,
(together referred to as 'the Group'). The Group provides its customers an opportunity to book airline tickets, train tickets and hotel
accommodations through its online web portal.
Going concern
These financial statements have been prepared on a going concern basis notwithstanding that the Group as at 31 March 2019, has
accumulated losses of Rs. 55,504.97 lakhs (31 March 2018: Rs 51,883.52 lakhs).
With regard to Group's ability to continue as a going concern, management is of the view that the assets and liabilities can be recorded on the
basis that the Group will be able to realise its assets and discharge its liabilities in the normal course of business. The following reasoning
was considered by the management:
i) The Group has been in business for twelve years and has incurred significant advertising and promotion expenses and created goodwill for
its brand, the benefit of which would accrue to the Group in the future years.
ii) There is a conscious effort on the part of the Group to optimize cost.
iii) The Group has cash and bank balances of Rs. 4,722.63 lakhs as at 31 March 2019. Further during the year, the Group has received
additional equity infusion from the parent company of Rs. 7,179.82 lakhs.
iv) "ClearTrip Inc. Cayman Islands has provided an undertaking to the Company's Board of Directors that they would continue to provide
necessary financial and operational support in order for the Company to meet its payment obligations over the next 12 months from the date
of approval of these financial statements."
Basis of preparation
The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 2013 (the 'Act') and the accounting principles generally accepted in India
('Indian GAAP') and comply with the Accounting Standards ('AS') specified under section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014. The financial statements are presented in Indian Rupees in lakhs except for number of shares/securities, per share
data and where mentioned otherwise.
All assets and liabilities have been classified as current or non-current as per the Group's normal operating cycle and other criteria set out
under the Act.
Basis of consolidation
Subsidiaries:
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has the rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of
subsidiaries are included in the consolidated financial statements from the date on which control commences until the date control ceases.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
On disposal of the investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to profit or
loss.
Intra-group balances and transactions and any recognised income and expenses arising from intra group transactions are eliminated in
preparing the consolidated and separate financial statements.
Unrealised gains arising from transactions with equity- accounted investees are eliminated against the investment to the extent of the Group's
interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent there is no evidence of
impairment.
The preparation of financial statements in accordance with the generally accepted accounting principles in India requires that management
makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent
liabilities as of the date of financial statements. Management believes that the estimates used in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in
current and future periods.
Intangible assets
Intangible assets comprises application software purchased / developed, which are not an integral part of the related hardware and are
amortized on a written down value method over the estimated useful life of the asset.
The Group incurs cost on various internally developed software projects for own use. The cost, which is directly attributable to such
software projects are capitalized and classified as internally developed intangible asset under the category of "Intangible Asset" for projects
completed as at balance sheet date. The projects which were not completed as at balance sheet date are classified as "Intangible assets under
development" under property, plant and equipment schedule in the balance sheet.
Tangible assets
Property, plant and equipment are stated at the cost of acquisition less accumulated depreciation / amortisation and impairment loss, if any.
The cost of fixed assets includes freight, duties, taxes (to the extent not recoverable from tax authorities) and expenses incidental to the
acquisition / construction and installation of the respective fixed assets up to the time the assets are ready for their intended use.
The cost of fixed assets not ready for their intended use are disclosed under capital work in progress.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Act using the written down value method.
Leasehold improvements are amortised over the lower of the useful life of the asset and the lease terms of the leasehold premises on a
straight line basis.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Assets retired from active use and held for disposal are written down to their estimated realisable value and are classified as 'Assets held for
sale'.
2.4 Investments
Investments are classified into 'long-term' and 'current' depending on the management's intention of holding these investments.
Long-term investments are carried at cost. Provision is made when there is a decline, other than temporary, in the carrying value of such
investments, determined separately for each class of investments and the resultant reduction in the carrying amount is charged to statement of
profit and loss.
Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect
of each category of investments.
Profit or loss on sale of investments is determined on the basis of weighted average carrying amount of investment disposed off.
2.5 Impairment
In accordance with AS 28, Impairment of Assets, where there is an indication of impairment of the Group's assets, the carrying amounts of
the Group's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the
assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its
value in use. An impairment loss is recognised whenever the carrying amount of an asset or the cash generating unit to which it belongs,
exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss. If at the balance sheet date there is an
indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost.
Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at
the end of its useful life.
Revenue from operations comprises commission from airlines, hotels, railways and affiliates (other travel management companies/portals
with whom the Group has contractual arrangement), Service charges and cancellation charges levied on customer for online booking,
Incentives earned from airlines, Sale of tour packages and Fees from Global Distribution Systems service provider.
Commission income, service charges and cancellation charges are recognised net of discounts and taxes collected upon rendering of the
related services i.e. booking / cancellation of tickets and hotel rooms, whereas incentive from airlines is recognised when the service
conditions attached to such incentives are fulfilled by the Group. Fees from Global Distribution Systems service provider is recognized when
the related services are rendered in accordance with the long term contract arrangement.
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CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Upload commission received from airlines is accrued over the period of utilization of uploaded funds.
Income from packages business, including income from air tickets sold as part of packages and from commission earned on sale of hotel
room, is accounted for on a "gross" basis on the date of departure of the packages, as the Group is the primary obligor in the arrangement and
incurs the risk and responsibility, including the responsibility for delivery of services.
Revenue generated from third party advertisements on the Group's websites is recognized as and when the services are being performed.
Revenue from intercompany transactions is recognized based on the transfer pricing regulations as per the shared services agreement entered
into between the parties.
Interest is recognized using the time-proportion method, based on rates implicit in the transaction.
Dividend income is recognized when the Group's right to receive dividend is established.
2.7 Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax laws) and deferred
tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).
Current tax
Provision for current tax is recognised in accordance with the provisions of the Income tax Act, 1961 and is made annually based on the tax
liability after taking credit for tax allowances and exemptions.
Deferred tax
Deferred tax liability or asset is recognised for timing differences between the profits / losses offered for income taxes and profits / losses as
per the financial statements. Deferred tax assets and liabilities and the corresponding deferred tax credit or charge are measured using the tax
rates and tax laws that have been enacted or substantively enacted as at the balance sheet date.
Deferred tax asset is recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there
is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax asset is recognised only if there is a virtual certainty of
realisation of such asset. Deferred tax asset is reviewed as at each balance sheet date and written down or written up to reflect the amount
that is reasonably / virtually certain to be realised.
All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits. These
benefits include compensated absences such as paid annual leave. The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is charged to the statement of profit and loss in the period in which such services are
rendered.
52
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Contributions payable to the recognised Provident Fund which are defined contribution schemes, are charged to the statement of profit and
loss during the period in which the employee renders the related service.
The Group's gratuity benefit scheme is a defined benefit plan. The Group's net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods.
These benefits are discounted to determine its present value and the fair value of any plan assets is deducted therefrom.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation by an independent actuary at
the year end using the Projected Unit Credit Method, which recognises each period of service as giving rise to one additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation.
Plan asset, for gratuity payable to employees, is an insurer managed fund by Life Insurance Corporation (LIC), HDFC Life and Kotak Life
Insurance. The fund administered by LIC, HDFC Life and Kotak Life Insurance invests in eligible securities approved by the Government of
India authorities.
The obligations are measured at the present value of the estimated future cash flows. The discount rates used for determining the present
value of the obligation under defined benefit plan are based on the market yields on Government securities as at the balance sheet date. When
the calculation results in a benefit to the Group, the recognised asset is limited to the net total of any unrecognised actuarial losses and past
service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
All actuarial gains and losses arising during the year are recognised immediately in the statement of profit and loss.
The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of
accumulating compensated absences is determined by actuarial valuation using projected unit credit method on the additional amount
expected to be availed/paid as a result of the unused entitlement that has accumulated at the reporting date. Expense on non-accumulating
compensated absences is recognized in the period in which the absences occur.
The Cleartrip Inc. Cayman Islands, has formulated an Employees Stock Option Scheme for the employees of the Group. The Scheme
provides that employees are granted options to acquire the equity shares of the Cleartrip Inc. Cayman Islands that vests in a graded manner.
The options may be exercised within a specific period. The options are granted at the price at which the private funding (investment
tranches), immediately prior to the date of grant, took place or at a price approved by the Board. The intrinsic value of options granted under
Employees Stock Option Schemes is recognised over the vesting period.
Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference
arising on foreign currency transactions between the actual rate of settlement and the rate on the date of the transactions is charged or
credited to statement of profit and loss.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates prevailing
on the balance sheet date and the overall net exchange gain or loss on such conversion, if any, is credited / charged to the statement of profit
and loss. Non-monetary assets are recorded at the rates prevailing on the date of the transactions.
53
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Premium or discount on foreign exchange forward, options and futures contracts are amortised and recognized in the profit and loss account
over the period of contract.
In case such contracts are outstanding as on balance sheet date, then are mark to market and net losses, if any are recognized in statement of
profit and loss and net gains, if any are not recognized as per relevant announcement of the Institute of Chartered Accountants of India.
2.10 Leases
Assets taken on lease, where the Group acquires substantially all the risk and rewards incidental to the ownership of the assets, are classified
as finance lease, else as operating lease.
Lease rentals in respect of assets acquired on operating lease are charged to the statement of profit and loss on a straight line basis over the
lease term unless another systematic basis is more representative of the time pattern of the use of the asset.
Provisions comprise liabilities of uncertain timing or amount. Provisions are recognised when the Group has a present obligation as a result
of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be
reasonably estimated. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.
Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been
incurred and the amount can be reasonably estimated.
The basic earnings per equity share are computed by dividing the net profit or loss attributable to the equity shareholders for the period by the
weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings
per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average
number of equity shares which may be issued on the conversion of all dilutive potential shares, unless the results would be anti-dilutive.
Cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original
maturities of three months or less.
54
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory [Text Block]
Background
Cleartrip Private Limited ('the Company') was incorporated as a private limited company on 12 May 2005. The Company is an online travel
management company which provides its customers an opportunity to book airline tickets, train tickets and hotel accommodations through its
online web portal. On 31 March 2006, the Company, pursuant to a share purchase agreement between ClearTrip Inc., Mauritius and the
shareholders of the Company, became a wholly owned subsidiary of ClearTrip, Inc. (Mauritius). ClearTrip, Inc. (Mauritius) is a wholly
owned subsidiary of ClearTrip Inc. Cayman Islands. ClearTrip Inc. Cayman Islands is a subsidiary of SAP (Ultimate holding company).
On 4th September 2017, Cleartrip Packages & Tours Private Limited was set up as a wholly owned subsidiary of the Company.
The consolidated financial statements include the accounts of the Company and its subsidiaries, Cleartrip Packages & Tours Private Limited,
(together referred to as 'the Group'). The Group provides its customers an opportunity to book airline tickets, train tickets and hotel
accommodations through its online web portal.
Going concern
These financial statements have been prepared on a going concern basis notwithstanding that the Group as at 31 March 2018, has
accumulated losses of Rs. 51,883.52 lakhs.
With regard to Group's ability to continue as a going concern, management is of the view that the assets and liabilities can be recorded on the
basis that the Group will be able to realise its assets and discharge its liabilities in the normal course of business. The following reasoning
was considered by the management:
i) The Group has been in business for twelve years and has incurred significant advertising and promotion expenses and created goodwill for
its brand, the benefit of which would accrue to the Group in the future years.
ii) There is a conscious effort on the part of the Group to optimize cost.
iii) The Group has cash and bank balances of Rs. 12,785.01 lakhs as at 31 March 2018. Further during the year, the Group has received
additional equity infusion from the parent company of Rs. 3,875.48 lakhs.
iv) ClearTrip Inc. Cayman Islands has provided support letter to the Company that they would continue to provide support to the Group to
meet its payment obligations for the year ended 31 March 2018.
Basis of preparation
The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 2013 (the 'Act') and the accounting principles generally accepted in India
('Indian GAAP') and comply with the Accounting Standards ('AS') specified under section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014. The financial statements are presented in Indian Rupees in lakhs except for number of shares/securities, per share
data and where mentioned otherwise.
All assets and liabilities have been classified as current or non-current as per the Group's normal operating cycle and other criteria set out
under the Act.
Basis of consolidation
Subsidiaries:
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has the rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of
subsidiaries are included in the consolidated financial statements from the date on which control commences until the date control ceases.
On disposal of the investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to profit or
55
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
loss.
Intra-group balances and transactions and any recognised income and expenses arising from intra group transactions are eliminated in
preparing the consolidated and separate financial statements.
Unrealised gains arising from transactions with equity- accounted investees are eliminated against the investment to the extent of the Group's
interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent there is no evidence of
impairment.
The preparation of financial statements in accordance with the generally accepted accounting principles in India requires that management
makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent
liabilities as of the date of financial statements. Management believes that the estimates used in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in
current and future periods.
Intangible assets
Intangible assets comprises application software purchased / developed, which are not an integral part of the related hardware and are
amortized on a written down value method over the estimated useful life of the asset.
The Group incurs cost on various internally developed software projects for own use. The cost, which is directly attributable to such
software projects are capitalized and classified as internally developed intangible asset under the category of "Intangible Asset" for projects
completed as at balance sheet date. The projects which were not completed as at balance sheet date are classified as "Intangible assets under
development" under property, plant and equipment schedule in the balance sheet.
Tangible assets
Property, plant and equipment are stated at the cost of acquisition less accumulated depreciation / amortisation and impairment loss, if any.
The cost of fixed assets includes freight, duties, taxes (to the extent not recoverable from tax authorities) and expenses incidental to the
acquisition / construction and installation of the respective fixed assets up to the time the assets are ready for their intended use.
The cost of fixed assets not ready for their intended use are disclosed under capital work in progress.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Act using the written down value method.
Leasehold improvements are amortised over the lower of the useful life of the asset and the lease terms of the leasehold premises on a
straight line basis.
56
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Assets retired from active use and held for disposal are written down to their estimated realisable value and are classified as 'Assets held for
sale'.
2.4 Investments
Investments are classified into 'long-term' and 'current' depending on the management's intention of holding these investments.
Long-term investments are carried at cost. Provision is made when there is a decline, other than temporary, in the carrying value of such
investments, determined separately for each class of investments and the resultant reduction in the carrying amount is charged to statement of
profit and loss.
Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect
of each category of investments.
Profit or loss on sale of investments is determined on the basis of weighted average carrying amount of investment disposed off.
2.5 Impairment
In accordance with AS 28, Impairment of Assets, where there is an indication of impairment of the Group's assets, the carrying amounts of
the Group's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the
assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its
value in use. An impairment loss is recognised whenever the carrying amount of an asset or the cash generating unit to which it belongs,
exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss. If at the balance sheet date there is an
indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost.
Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at
the end of its useful life.
Revenue from operations comprises commission from airlines, hotels, railways and affiliates (other travel management companies/portals
with whom the Group has contractual arrangement), Service charges and cancellation charges levied on customer for online booking,
Incentives earned from airlines, Sale of tour packages and Fees from Global Distribution Systems service provider.
Commission income, service charges and cancellation charges are recognised net of discounts and taxes collected upon rendering of the
related services i.e. booking / cancellation of tickets and hotel rooms, whereas incentive from airlines is recognised when the service
conditions attached to such incentives are fulfilled by the Group. Fees from Global Distribution Systems service provider is recognized when
the related services are rendered in accordance with the long term contract arrangement.
Upload commission received from airlines is accrued over the period of utilization of uploaded funds.
57
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Income from packages business, including income from air tickets sold as part of packages and from commission earned on sale of hotel
room, is accounted for on a "gross" basis on the date of departure of the packages, as the Group is the primary obligor in the arrangement and
incurs the risk and responsibility, including the responsibility for delivery of services.
Revenue generated from third party advertisements on the Group's websites is recognized as and when the services are being performed.
Interest is recognized using the time-proportion method, based on rates implicit in the transaction.
Dividend income is recognized when the Group's right to receive dividend is established.
2.7 Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax laws) and deferred
tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).
Current tax
Provision for current tax is recognised in accordance with the provisions of the Income tax Act, 1961 and is made annually based on the tax
liability after taking credit for tax allowances and exemptions.
Deferred tax
Deferred tax liability or asset is recognised for timing differences between the profits / losses offered for income taxes and profits / losses as
per the financial statements. Deferred tax assets and liabilities and the corresponding deferred tax credit or charge are measured using the tax
rates and tax laws that have been enacted or substantively enacted as at the balance sheet date.
Deferred tax asset is recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there
is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax asset is recognised only if there is a virtual certainty of
realisation of such asset. Deferred tax asset is reviewed as at each balance sheet date and written down or written up to reflect the amount
that is reasonably / virtually certain to be realised.
All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits. These
benefits include compensated absences such as paid annual leave. The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is charged to the statement of profit and loss in the period in which such services are
rendered.
Contributions payable to the recognised Provident Fund which are defined contribution schemes, are charged to the statement of profit and
loss during the period in which the employee renders the related service.
58
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
The Group's gratuity benefit scheme is a defined benefit plan. The Group's net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods.
These benefits are discounted to determine its present value and the fair value of any plan assets is deducted therefrom.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation by an independent actuary at
the year end using the Projected Unit Credit Method, which recognises each period of service as giving rise to one additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation.
Plan asset, for gratuity payable to employees, is an insurer managed fund by Life Insurance Corporation (LIC), HDFC Life and Kotak Life
Insurance. The fund administered by LIC, HDFC Life and Kotak Life Insurance invests in eligible securities approved by the Government of
India authorities.
The obligations are measured at the present value of the estimated future cash flows. The discount rates used for determining the present
value of the obligation under defined benefit plan are based on the market yields on Government securities as at the balance sheet date. When
the calculation results in a benefit to the Group, the recognised asset is limited to the net total of any unrecognised actuarial losses and past
service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
All actuarial gains and losses arising during the year are recognised immediately in the statement of profit and loss.
The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of
accumulating compensated absences is determined by actuarial valuation using projected unit credit method on the additional amount
expected to be availed/paid as a result of the unused entitlement that has accumulated at the reporting date. Expense on non-accumulating
compensated absences is recognized in the period in which the absences occur.
The Cleartrip Inc. Cayman Islands, has formulated an Employees Stock Option Scheme for the employees of the Group. The Scheme
provides that employees are granted options to acquire the equity shares of the Cleartrip Inc. Cayman Islands that vests in a graded manner.
The options may be exercised within a specific period. The options are granted at the price at which the private funding (investment
tranches), immediately prior to the date of grant, took place or at a price approved by the Board. The intrinsic value of options granted under
Employees Stock Option Schemes is recognised over the vesting period.
Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference
arising on foreign currency transactions between the actual rate of settlement and the rate on the date of the transactions is charged or
credited to statement of profit and loss.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates prevailing
on the balance sheet date and the overall net exchange gain or loss on such conversion, if any, is credited / charged to the statement of profit
and loss. Non-monetary assets are recorded at the rates prevailing on the date of the transactions.
Premium or discount on foreign exchange forward, options and futures contracts are amortised and recognized in the profit and loss account
over the period of contract.
In case such contracts are outstanding as on balance sheet date, then are mark to market and net losses, if any are recognized in statement of
profit and loss and net gains, if any are not recognized as per relevant announcement of the Institute of Chartered Accountants of India.
59
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
2.10 Leases
Assets taken on lease, where the Group acquires substantially all the risk and rewards incidental to the ownership of the assets, are classified
as finance lease, else as operating lease.
Lease rentals in respect of assets acquired on operating lease are charged to the statement of profit and loss on a straight line basis over the
lease term unless another systematic basis is more representative of the time pattern of the use of the asset.
Provisions comprise liabilities of uncertain timing or amount. Provisions are recognised when the Group has a present obligation as a result
of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be
reasonably estimated. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.
Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been
incurred and the amount can be reasonably estimated.
The basic earnings per equity share are computed by dividing the net profit or loss attributable to the equity shareholders for the period by the
weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings
per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average
number of equity shares which may be issued on the conversion of all dilutive potential shares, unless the results would be anti-dilutive.
Cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original
maturities of three months or less.
60
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
61
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
62
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
63
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Footnotes
(A) Direct tax paid
(B) Direct tax paid
64
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
65
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
66
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
67
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Footnotes
(A) Profit on sale / scrapping of fixed assets, net and Reimbursement of expenses from fellow subsidry
(B) Other interest received, profit on sale of asset
(C) compensated absence
(D) compensated absence
(E) Credit card collectioncharges other cost of service foriegn exchange loss, net information technology charges housekeeping
expense rates and taxes chargeback expenses misc. exp
(F) Credit card collectioncharges other cost of service foriegn exchange loss, net information technology charges housekeeping
expense rates and taxes chargeback expenses misc. exp procuremnt cost of tour packages distributor support fee
68
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
69
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Commission income, service charges and cancellation charges are recognised net of discounts and taxes collected upon rendering of the
related services i.e. booking / cancellation of tickets and hotel rooms, whereas incentive from airlines is recognised when the service
conditions attached to such incentives are fulfilled by the Group. Fees from Global Distribution Systems service provider is recognized when
the related services are rendered in accordance with the long term contract arrangement
Upload commission received from airlines is accrued over the period of utilization of uploaded funds.
Income from packages business, including income from air tickets sold as part of packages and from commission earned on sale of hotel
room, is accounted for on a "gross" basis on the date of departure of the packages, as the Group is the primary obligor in the arrangement and
incurs the risk and responsibility, including the responsibility for delivery of services.
Revenue generated from third party advertisements on the Group's websites is recognized as and when the services are being performed.
Revenue from intercompany transactions is recognized based on the transfer pricing regulations as per the shared services agreement entered
into between the parties.
Interest is recognized using the time-proportion method, based on rates implicit in the transaction.
Dividend income is recognized when the Group's right to receive dividend is established.
70
CLEARTRIP PRIVATE LIMITED Consolidated Financial Statements for period 01/04/2018 to 31/03/2019
Commission income, service charges and cancellation charges are recognised net of discounts and taxes collected upon rendering of the
related services i.e. booking / cancellation of tickets and hotel rooms, whereas incentive from airlines is recognised when the service
conditions attached to such incentives are fulfilled by the Group. Fees from Global Distribution Systems service provider is recognized when
the related services are rendered in accordance with the long term contract arrangement.
Upload commission received from airlines is accrued over the period of utilization of uploaded funds.
Income from packages business, including income from air tickets sold as part of packages and from commission earned on sale of hotel
room, is accounted for on a "gross" basis on the date of departure of the packages, as the Group is the primary obligor in the arrangement and
incurs the risk and responsibility, including the responsibility for delivery of services.
Revenue generated from third party advertisements on the Group's websites is recognized as and when the services are being performed.
Interest is recognized using the time-proportion method, based on rates implicit in the transaction.
Dividend income is recognized when the Group's right to receive dividend is established.
71