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MANAGEMENT DISCUSSION & ANALYSIS REPORT

1. ANALYSIS OF THE FINANCIAL / PHYSICAL PERFORMANCE

STAND-ALONE

TheFinancialPerformanceoftheCompanyduringFY2020-21washighlyimpactedduetotheCOVIDpandemicwhichadverselyaffectedtheoperationsoftheCompany.Therewasanoverallreductionofaround63%intheASKMsinFY2020-21whencomparedtoFY2019-20.ThishadacascadingimpactonthefinancialperformanceoftheCompanyduringtheyearasgivenbelow.

I. REVENUE

TotalRevenuedecreased fromRs.285,244.4Million in2019-20 toRs.121,040.5Millionduring2020-21(decreaseofRs.164,203.9Million)

Operating Revenue decreased from Rs.277,106.1 Million in 2019-20 to Rs.103,433.0 Millionduring2020-21(decreaseofRs.173,673.1Million)

Passenger Revenue decreased from Rs.226,197.0 Million in 2019-20 to Rs.73,721.3 Millionduring2020-21(decreaseofRs.152,475.7Million)

II EXPENDITURE

TheTotalExpenditure incurred during the yearwasRs.190,833.3Million as compared to thepreviousyear’sfigureofRs.362,901.7Million(decreaseofRs.172,068.4Million)

OperatingExpensesdecreasedfromRs.323,709.1Millionduring2019-20toRs.152,469.6Millionduring2020-21(decreaseofRs.171,239.5Million)

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Therewasadecreaseinstaffcostby30%fromRs.32,253.7Millionin2019-20toRs.25,557.1Million during 2020-21.

Fuelcostdecreasedby73%fromRs.93,992.7Millionin2019-20toRs.25,358.7Millionduring2020-21.

Therewas an overall foreign exchange impact of Rs.41,270.0Million during the FY 2020-21whencomparedtothepreviousyear.ThiswasbecausetheclosingexchangeratewasRs.73.11/USDinFY2020-21ascomparedtoRs.75.66/USDinFY2019-20.DuetothisascomparedtoaforeignexchangelossofRs.32,280.0MillioninFY2019-20,therewasaforeignexchangegainofRs.8,990.0MillioninFY2020-21.

CONSOLIDATED

I. REVENUE

TotalRevenuedecreased fromRs.328,306.2Million in2019-20 toRs.134,064.9Millionduring2020-21,adecreaseof59.2%.

Passenger Revenue decreased from Rs.275,357.5 Million in 2019-20 to Rs.91,153.9 Millionduring2020-21,adecreaseof66.9%.

OtherRevenuedecreasedfromRs.13,309.4Millionduring2019-20toRs.4,475.8Millionduring2020-21,decreaseof66.4%.

GroupOperating Loss was Rs.39,519.1Million in 2020-21 as against the Operating Loss ofRs.24,070.3Millionduringpreviousyear2019-20.

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GrouphasshownConsolidatedNetLossfor2020-21atRs.76,418.6MillionwhichwaslessbyRs.515.1Millionascomparedtothepreviousyear'slossofRs.76,933.7Million.

II. EXPENDITURE

TherewasadecreaseinTotalExpensesby48.8%fromRs.389,737.4Millionduring2019-20toRs.199,648.5Millionduring2020-21.

TherewasadecreaseinStaffCostby31.5%fromRs.35,498.8Millionin2019-20toRs.24,322.5Million during 2020-21.

FuelCost haddecreasedby72.8% fromRs.108,879.7Millionduring2019-20 toRs.29,593.4Million during 2020-21.

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2. MEASURES TO IMPROVE PERFORMANCE

2.1 Going Concern

The Govt. of India has continued to support Air India in various ways to partly ameliorate the strained financialpositionoftheCompanyundertheStrategicRevivalPlanandalsoduringtheCOVIDPandemic.Thissupporthasbeenextendedinthefollowingmeasures:

• LoansofAirIndiaLtdamountingtoRs.294,640.0MillionhavebeenapprovedtobetransferredtotheAirIndiaAssetsHoldingLtd(AIAHL)underthedisinvestmentplanofAirIndiaLtd.OutofthisamountLoansamountingtoRs.220,640.0MillionhavealreadybeenpaidoffinFY2019-20andtheprocessoftransferringthebalanceamountofRs.74,000.0Millionisunderway.

• TheGovthasduringFY2020-21renewedtheGoIGuaranteeSupport forvariousexistingAILWorkingCapital Loans and theGovt has issued freshGovt support for raising newWorkingCapitalLoansfromBanksandNSSFamountingtoRs.59,640.0Million.TheGovthascontinueditssupportduringFY2021-22.

• TheGovthasfurtherrenewedtheGoIGuaranteeforUSD819Million(Rs.61,500.0Million)foraircraftbridgeloansfor7aircraftinDecember2020.

• Further,theGovtduringtheCOVIDperiodaskedAItooperatePassengerFlightstointernationaldestinations under the Vande Bharat Mission and therefore Air India Ltd and its SubsidiaryCompanies got much needed relief and liquidity.

TheCompanyhasregularlyreceivedEquityInfusionfromtheGoI.FurtherstepstakenbytheCompanyandalsotheGoIinlightoftheprocessofdisinvestmenthavebeendiscussedindetailinNote28.AllthesestepsareaimedatcreatingapositiveenvironmentforthedisinvestmentoftheCompany,whichhas reached the concluding stage.

InviewoftheaboveandthefinancialsupportfromtheGovtofIndiaandvariousmeasurestakenbytheCompanytoimproveitsoperationalefficienciesandrevenueenhancingmeasures,costcontrolmeasuresundertakenetc.,theCompanyexpectsimprovementinitsOperationalandFinancialPerformance,inthenearfutureandhence,theFinancialStatementsoftheCompanyhavebeenpreparedonthe‘GoingConcern’basis.

2.2 Product Development

FrequentFlyerProgramme(LoyaltyProgramme)

PremierClubs

TheFlyingReturnsProgrammeoftheCompanyhasfourlevelsofmembershipviz.Base,TheSilverEdgeClub,TheGoldenEdgeClubandTheMaharajahClub (thehighestTier).Membershipof theMaharajahClub,GoldenEdgeClubandSilverEdgeClub is on thebasis of earning75,000miles,50,000milesand25,000miles,respectively,inaspanoftwelvemonths.

Membershipof theMaharajaandGoldenEdgeClubsentitlesmembers toenhancedprivileges likeBonusFlyingReturnspoints,additionalbaggageallowance,prioritycheck-in,priorityconfirmationfromthewait-list,upgradevouchersandloungeaccessatselectairports,etc.

Membership of Silver EdgeClub entitlesmembers to the privileges such as Bonus FlyingReturnspoints,additionalbaggageallowance,upgradevouchersandprioritycheck-in.

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ThemembershipbaseoftheClubsason31March2021wasasunder:

TheMaharajaClub 1,831

GoldenEdgeClub 3000

SilverEdgeClub 13,117

FlyingReturnsProgramme:TotalFlyingReturnsmembership(IncludingClubMembers)ason31March2021was30,82,822.

FlyingReturnsProgramme(FRP)isdesignedtorecognizeandrewardfrequentflyersofAirIndia.ThebenefitsandprivilegesofFRPinclude:

Increasedcheck-inbaggageallowance,telecheck-in,personalizedcheck-incountersatselectairports,priorityforconfirmationfromthewait-list,prioritybaggagehandling,familypoolandwidearrayofspecialoffers.

Membership is offeredeven to childrenaged2 to12 years.Members candomany thingsonline -updateprofile,claimmissingmiles,redeemmilesforflightsandupgrades,etc.

Apart from earning, redeeming and upgrading onAir India, FlyingReturnmembers can also earn,redeem and upgrade on all 26 Star Alliance partner carriers and get access to more than 1000 airport loungesworldwide.Memberscanalsoaccruepointswhiletravelingonselectflightsofourcodesharepartner airlines.

Besidesairlines,thereareNon-airlinepartnerslikeSBICoBrandCardsandCitibanketc.andMemberscan transfer reward points from our non-airline partners to Flying Returns.

2.3 Marketing Initiatives

WiththeonsetoftheCOVID-19pandemicatthebeginningofFinancialYear2020-21andtheensuingLock-Down,theaviationindustrywasseverelyimpactedandbusinesswasdifficulttosaytheleast.

WiththecommencementofrepatriationflightsfromacrosstheglobeundertheVandeBharatMission,AirIndiawasstandingbesidethecommonmanaswellasbusinessenterprises.

Inthebackdropofcircumstancessurroundingthetravelindustryanduncertaintyofdemandrecovery,theMarketingstrategyforthefinancialyearwasprimarilyfocussedtowardsrestoringcustomerconfidencetobuildandincentivizetraffic.

The incentives were targeted to reward travel agents for better performances; passengers wereincentivized directly so as to make Air India their preferred choice. Corporate/Travel Management Companies were given special terms to promote Air India. Some of the promotional initiatives undertaken byAirIndiaintheFinancialYear2020-2021aredetailedbelow:

PerformancebasedincentivesweregiventotravelagentsinIndiaforachievingsetmilestonesand exceeding previous year revenues.

Corporatecustomersweredirectlyincentivisedwithspecialincentiveandothersoftbenefitsfortheir continuous patronage.

SeveralShorttermsincentiveschemeswereconceptualizedandimplemented,directlytargetingthe passengers to makeAir India their preferred choice, like: Extension of ticket validity tillDecember2021andanoptiontochangetransferthetickettoanotherindividual,lowerfareswere

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offeredtoArmedforces,warwindows,students,seniorcitizensetc.

VariouspromotionalcampaignswereruntobringawarenessaboutscheduleofVBM/AirBubbleflights,faresandtocommunicatesafetymeasuresundertakenbyAirIndiawhileoperatingVBM/AirBubbleflights.

AtargetedawarenesscampaignwasruntopromotenewflightsfromNewDelhi,BengaluruandHyderabadtotheUSA.

ExclusivecharterflightswerepromotedbyAirIndiaatForeignDestinationsthroughitsGeneralSalesAgentstodiverttrafficfromcompetitorstowardsAirIndia.

AirIndiaalsosupportedamyriadoftravel&tourismevents,whichwereheldduringthefinancialyear 2020-21.

Specialpromotions:

UnlockyourdestinationDomestic:Anumberofsectorsinthedomesticmarketwereopenedafterthelockdownwaslifted.Apromotioncampaignwasdonetobringawarenessofthescheduleofthereopenedflights.

UnlockyourdestinationInternational:Apromotioncampaignwasdonetobringawarenessabouttheschedule&faresoftheVBM/AirBubbleflights.

Delhi/Mumbai/Delhi campaign:Asmultiple numbers of flights were introduced back onDelhi/Mumbai/Delhisector,aseparatepromotionwasdoneforthis.

SpecialcampaignforDelhi/Newark/Delhi:SinceDelhi/NewarkwasanewsectorforAirIndia;aseparatepromotionwasdonetobringawarenessaboutthisnewmarket.

Special awareness campaign: Localised campaigns were run to promote new return flightslaunchedfromBengalurutoSanFranciscoandHyderabadtoChicago.

Cargo

DespitetheunprecedentedchallengesbeingfacedbytheindustryduetotheCOVID19pandemicandanoverallslumpintheeconomy,AIupliftedatotalofapprox.31885tonsofcargoon itsDomesticNetwork&about43576tonsacrosstheInternationalNetwork-whichincludescargoupliftstomanyOff-line stationslikeJohannesburg,Auckland,Kiev,Wuhan,Hanoietc,whereAIoperatedanumberofflightsundertheVandeBharatmission.

Further,thefollowinginitiativeswereundertakeninFY2020-21formaximizingtheCargoRevenue:

CargoCharteroperations:Inordertobringinthemuchneededmedicalgoodsinthecountry,duetotheongoingpandemic,AIoperatedanumberofCargochartersprimarilybetweenIndia-China-India& India - Hongkong - India routes.

Freighters:Tocatertothehugedemandandearnmaximumrevenue,anumberofflightsas'CargoOnlyaircraft'weredeployedonbothdomesticandInternationalroutes.AIoperatedatotalofabout26FreightersonitspotentialDomesticsectors-likeCCU-IMF,CCU-IXAandMAA-IXZ.Similarly,ontheinternationalfront,about46flightswereoperatedasCargoFreighterswhichwereprimarilybetweenIndia-Seoul,India-Hongkong&India-Singaporeroutes.

DynamicPricing:Inordertoensureoptimumutilizationofthecapacitiesandmaximizationofrevenues,thecargoratesandflightsperformanceweremonitoredextremelycloselyandtheCargorateswererevised upwardly /downwardly in line with the market dynamics.

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3. AWARDS AND RECOGNITION

Inspiteofthechallengesofaworldnumbedbythepandemic,AirIndiahadmobilisedallitsresourcestoflybackIndiansstrandedallovertheworldandreachingpeoplebacktotheirhomeallovertheglobe.Tohelpthestrandedpassengersacrosstheglobeandothertravellerswhoallareeagerlywaitingforauthentic informationfromAir India,ourCorporateCommunicationsteamhasbeenworking24x7todisseminatinginformationregardingflightschedules,reservations,eligibilitycriteriaetc.,totheexternalpublic,includingthemediathroughdirectcommunicationandsocialmediaplatforms.

MediaHandling:

• Timetotimedisseminationofinformationtomediaabouttheschedule,update,bookingetc.,ofVandeBharatflights,AirBubbleflights,LifelineUdaanflights,specialmedicalcargoflights,etc.

• AirIndiaanditsemployeescontributedselflesslyintheseadversetimestomakeMissionLifelineUdaanandVandeBharatMissionflightsasuccessearningaccoladesfromeveryquarter.WetriedtoestablishAirIndiaasaTrueTravelPartnerforeverytravellerandmanagedtogetgoodcoverageacrosstheboardforalloureffortsduringthepandemic.

• AirIndiaaddedanewfeatherinitscapwitharecord-settingnon-stopflightbetweenSanFranciscoandBengaluruon11thJanuary,2021,flyingoverthePolarroute.Theflightwasoperatedbyanall-womencockpitcrewsettingnewbenchmarksintheannalsofglobalcivilaviation.Withroundtheclockreportingof thishistoricflightweensuredexceptionalcoverageandpublicity for thesame.

• AirIndiagrouphastheprivilegeofhavingflownover3MillionpassengersunderVandeBharatMissionsinceitslaunchon7thMay,2020.Asandwhenweachievedanymajormilestonesuchas1,2and3Millionpassengers,regularupdatesweregiventomajormediahousesacrossthenetwork.

SocialMedia:

• 24x7 monitoring of social media channels

• Provided all possible information i.e. flight schedule, booking procedure, eligibility criteria,destinationspecificquarantinerules, fares, refund,waiver rulesetc., throughoursocialmediachannels and stranded people across the world trusted and followed our twitter handle for most authentic information.

• A passenger awareness campaign #FlyTheNewNormal was executed successfully to inform travellingpublicaboutthenewrulesofflying.

• AsaCSRactivity,covidappropriatebehaviourcampaignwasalso running throughoursocialmediachannelsonregularbasis.

• Dailyupdatesintheformofinfographics,trivia,testimony,etc.,weredonetoanswerthequeriesandinteractwithtravellingpublic.

BrandingInitiatives:

• Whenthepandemicstartedspreadingacrossthecountry,allscheduledinternationalanddomesticpassengerflightsweresuspendedfromMarch23andMarch25,respectively.DomesticflightswererestartedinalimitedmannerfromMay25,2020withnewrulesandregulations.Accordingly,toeducatepassengersaboutthenewnormalofflyingandstepstakenbyAirIndiaforcleanlinessandsafetyofouraircraftregularcampaignswereexecutedthroughallavailablechannels.

• Even after opening of the operations in staggered manner Air India was facing issues due to

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lowoccupancy,totacklethesame,anewbrandcampaign#TrueTravelPartnerhighlightingourUSP’sandspecialoperationsduringpandemic,wasplannedandexecutedsuccessfullythroughinnovativeandattractivevideosacrossallavailablechannels.

Communicationtomotivatetheemployees:

• Various achievements of employees and the organisation were highlighted through our in house webzine"Samvaad”.

• ShortfilmswerepreparedandpromotedatvariousforumstoacknowledgeandshowcasetherelentlesseffortofourAirIndians.Thesameweremailedtoallemployeesandarealsopromotedthrough our social media channels.

Awardsandaccolades:

• Theongoingevacuationof fellowcitizens fromaffected countriesby teamAir IndiahasbeenapplaudedbynolessthanTheHon'blePresidentandThePrimeMinisterofIndiabesidesearningworldwide acknowledgement.

• PrimeMinisterShriNarendraModiaddressedthe1stepisodeof ‘MannkiBaat’programmeof2021 on 31st January in which he hailed and accentuated the historic move where Air India’s longestdirectrouteflightwiththeall-womenpilotteamonJanuary11landedinBengalurufromSanFrancisco,flyingovertheNorthPoleandcoveringadistanceofabout16,000kilometres.

• Air India won the SKOCH AWARD Platinum for Response to Covid 19 at the 68thSkoch virtual summit held on 28th Nov 2020.

4. FLEET SIZE, NETWORK, JOINT VENTURES ETC.

4.1 Fleet Size

Air India Limited Fleet (As on 31 March 2021)Aircraft type Owned Leased Aircraft Total

Sale & Lease Back Dry LeaseOperational FleetWide BodyB777-200LR 3 - - 3B777-300ER 1 12 - 13B747-400 4 - - 4B787-800 6 21 - 27Wide Body Total 14 33 - 47Narrow BodyA320-CEO 4 - 5 9A320-NEO - - 27 27A319 19 - 2 21A321 20 - - 20Narrow Body Total 43 - 34 77Total 57 33 34 124

4.2 Joint Ventures and Code Share Arrangements

Ason31March2021,AirIndia,aSTARAllianceMember,hadatotalof24Code-ShareAgreementsthat included 14 alliances with STAR carriers and 10 with Non-STAR Carriers. All the Code-Share

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ArrangementsareonFreeFlowbasisexceptthatwithAustrianAirlinesandSwiss,whichareonaBlockSpacebasis.

5. FINANCING INITIATIVES

AirIndiahadtoclosetheforeigncurrencyBridgeLoansmaturinginFY2020-21amountingtoUSD819Million.AirIndiaraisedRs.3,381.65Cr.fromtwoIndianbanksandconcludedrefinancingof4aircraftduringthemonthofDecember2020.Outofthebalance3aircraft,onlyoneaircraftcouldberefinancedbyraisingINR905.09Cr.fromanotherIndianbank.However,thetwoForeignCurrencyBridgeLoansrelatingtothebalancetwoaircraftcouldnotberefinanced.

6. FLIGHT SAFETY

6.1 WEBSITE

Adedicatedwebsiteflightsafety@airindia.inhasbeendevelopedinternally,whichaidsdisseminationofvitalsafetyrelatedinformationinacosteffectivemannertoallemployeesoftheCompany.Thiswebsitealso facilitates raising of SMS Hazard/Mandatory reports online.

KeyfunctionsofFSDare:

• Ensure a sound Safety Management System.

• Promote active participation of all departments in adopting optimum safety standards.

• Introduce methods which enhance safety awareness.

• Recommend safety measures within the Training environment, thereby addressing known /perceived threats and errors.

6.2 QUALITYMANAGEMENTSYSTEM(QMS)

TheISOCertification9001:2015forQMSDepartmentawardedbytheBureauofIndianStandards(BIS)was valid from the period 02nd July 2018 to 08thDecember2020.

OnsitelicenserenewalauditcouldnotbeconductedbyBISbecauseofextenuatingsituationsduetopandemic.Henceshort-termassessmentremoteauditforextensionoflicensewasconductedbyBISon 04thDecember2020,whichwasclearedbyQMSwith“NIL”findingsandobservations.Subsequently,license extension was granted for a period from 09thDecember2020to08th June 2021. BIS Conducted remoteauditforrenewalISOcertificationon26th & 27thApril2021,andthesamewasclearedwith“NIL”FindingsandObservations.BIShasnowawardedISOcertification9001:2015toQMSdepartmentforperiod of three years i.e. till 8th Dec 2023.

6.3 DOCUMENTATIONMANAGEMENTSYSTEM(DMS)

A centralized Corporate Document Management System provides creation, version management,search, retrievalanddisseminationofdocumentsoverabrowser toall authorisedpersonnelbasedonindividualrights,acrossallDepartmentsandallthreeAOCandSubsidiariesi.e.,AirIndia,AirIndiaExpress Limited,AllianceAir, AI Engineering Services Limited andAIAirport Services Limited. IteffectivelycomplieswithIOSA,DGCA,ISAGO,StarAlliancestandards,Governmentrequirementsaswell as organization requirements.

DMSPortalhaspresentlybecomenon-functionalduetotheobsoletehardwareandsoftware.AsaninterimmeasurebackupofDMShasbeencreatedintheFlightSafetyWebsite.DMSisuploadingallthecontrolledmanualsofthreeAOCsandsubsidiariesinFlightSafetyWebsite.

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6.4 IATAOPERATIONALSAFETYAUDIT(IOSA)

AIisoneofthefirstfewairlinesintheworldandfirstinIndiatoclearIOSA.AIwasalsothefirstAirlinein theworld tovoluntarilygetaudited forE-IOSA (Enhanced IOSA)withnewstandardseffective1st September2013.

IATAOperationalSafetyAudit(IOSA):IOSAisaninternationallyrecognisedandacceptedevaluationsystemdesignedtoassesstheoperationalmanagementandcontrolsystemsofanairline,andrepresentsthehighestsafetybenchmarkintheIndustry.IOSAcoversallareasoftheairlineincludingOrganisationandManagement,FlightOperations,Training,FlightDispatch,CabinOperations,Engineering,GroundHandling (Airport&Ramp),Cargo,Security,QMS (QualityAssurance) aswell asFlightSafetyandSMS (SafetyManagement System). This ismandatory for the IATAmembership and StarAlliancemembership.

CorporateQualityManagementSystem(QMS)conductscontinuous internalaudits/assessments for2yearsofalloperationalareasandhelps theseareas to takesuitablecorrectiveactions forclosinginternalfindingsandobservations. CorporateQMSalsohelps theNodalOfficersof theseareas toprepare their Manuals in line with the IOSA requirements. These internal audit reports and assessments andmanualswerereviewedandcheckedduringtheIOSArenewalauditbytheIATAAuditors.

ThelastIOSArenewalauditofAirIndiaLimitedwasconductedbyM/s.AviationQualityServices(AQS)(the IATA accredited Agency from Germany) from 21st to 25th August 2017. AI cleared the IOSA renewal auditwithNILfindingsandtheIOSARegistryhasbeenrenewedtill16thJanuary,2020.

For renewal of Registry, the IOSA Renewal Audit was conducted through M/s.Quali-Audit (IATAAccredited Agency) from 26th to 30thAugust,2019.AirIndiaLimitedclearedtheIOSARegistryandthevalidityofIOSARegistryhasnowbeenextendedtill16thJanuary,2022.

6.5 SAFETYMANAGEMENTSYSTEM(SMS)

ArobustCorporateSafetyManagementSystem(SMS)isinplacewhichhasbeenimplementedinall3AOCsi.e.AirIndia,AirIndiaExpressandAllianceAir&2SBUs(AIESLandAIASL)operatingunderit.ItalsocoversAI-SATSandalloutsourcedagenciesusedbyAirIndiaanditssubsidiariesacrossthenetwork.

SMS is implemented and integrated throughout the organization to ensure management of the safety risks associated with aircraft operations.

7. INFLIGHT SERVICES/OPERATIONS DEPARTMENT

Special Measures taken in view of COVID-19 situation

• AsperGovernmentguidelines,postcompletelockdown,gradualreintroductionofMealServiceto passengers with amendment to the service procedures to incorporate safety measures and ensure prevention of spread of infection.

• Pre-flightInspectionofInflightKitchensbyFlightKitchenInspectorstomonitorallCovidprotocolspertainingtothehygieneandqualityofMealsupliftedonboard.

• IntroductionofQRCodesforCabinCrewtoknowFlightwiseMealsUpliftMenuforPassengersand Crew Meals.

• FullPPE’sasperregulationswereintroducedforFlyingcrewonallflightstocontinuethesmoothoperationofflights.

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• Initiative to provide Covid Isolation Facility to the Covid positive crew with domestic/family constraints.

• Mentorship Initiative-Formationof support groups formonitoring thehealth, safety and issuesfacedbyCabincrewduringCovidTimes.

• Staggered full service was later introduced with all safety precautions.

• IntroductionofQRcodestocabincrewforpaperlessMealOrderSheetpertainingtothequantity/menuofmealsupliftedonboardkeepinginviewminimizingthehandlingofpaperworkbycabincrew during Covid times.

• Updated Circulars conveying guidelines of the State/Regulator/Airline was issued to all the Crew onaregularbasis.

8. TRAINING DEPARTMENT

Strict compliance was done for the Regulator COVID protocols for Crew Training in the Simulators/Classroomswithproperandregularsanitization,cleaningandadherencetootherhygienemeasuresfor the Contact ground classes.

• DistanceLearningwas introducedandapprovedby theRegulator forpropersocialdistancingof the Trainees for the ground classes. This resulted in reduced SOD Movement of crew and considerablesavingsinHotelAccommodation.

• The validities of mandatory recency requirements for all Crew were maintained through regular SimulatortrainingbyadheringtoallCOVIDprotocols.

9. INFORMATION TECHNOLOGY

9.1 ImplementationofSDWAN(SoftwareDefinedWideAreaNetwork)technologyinAirIndiaNetwork

SDWAN solution builds a secure, unified connectivity over any transport (Multiprotocol LabelSwitching[MPLS],Broadbandandothers).Italsoprovidessimplifiedoperationswithcentralizedmanagement,costreductionduetouseofcheaperinternetlinks,policycontrolandapplicationvisibilityacrosstheenterprises.TheSDWANsolutionbuildsanoverlayfabricwhichiscarrierandtransportagnostic.Italsooffersnetwork-widesegmentationandembeddedandcloudsecurityfeatures.

9.2 WhatsApp Business platform

Air India has started serving its customers on WhatsApp Business platform starting from 21st August2021.AirIndiaWhatsAppaccountisverifiedandsameisrepresentedbygreencheckmarkbesidethedisplayednameinthecontactsview.ManyoptionslikeFlightStatus,Showmybooking,Get my ticket are shown to Customer.

9.3 Online Health Undertaking

AspertheguidelinesbyMoCA,DomesticPassengersarerequiredtocertifythestatusoftheirhealth through the Health Undertaking form during Covid-19. Air India has facilitated its passengers tofillthisformonlineduringWebcheck-in,Kioskcheck-inandMobilecheck-in.

9.4 GroundHandlingAgents(AISATSandAIASL)-SLAMonitoringModule

An in-houseapplication isdevelopedanddeployedformonitoringperformanceofSLAsof theCompanywithAISATSandAIASL.Rolebasedaccessisconfiguredforusers.Authoriseduserscan feed deviations and upload evidential documents (for dispute resolution with these GHAs). ApplicationrecordsdeviationsconcerningOTP,AircraftSafety,Security,Documentation,adequatemanpower,check-inandboardingactivity,Rampactivity,BaggagedeliveryULDactivitiesetc.

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Application facilitates penalty calculations based on observed performance. Application alsogenerates various MIS reports.

9.5 Aircom servers

AircomserversinstalledinMumbai,withtheobjectiveofcommunicatingwithaircraftforfulfillingthebusinessaswellascommercialrequirementlikeFlightplan,Loadsheetmovement,Emergencymessage transfer. These servers were upgraded to latest version of SITA Aircom application. ItenabledAir India in implementingADS-BandFlightTrackermoduleas itwasmandatedbyDGCA.

Ithasalsohelpedinimplementinge-WASPilot(ElectronicWeatherawareness)solutiononiPad,iPhone,WindowstabletsforAirbusfleet

9.6 Provision of VPN connectivity for smooth functioning of departments during pandemic

IntheCovid-19pandemic,ITDepartmentprovidedVPNfacilityforWFH(WorkfromHome)tovariousdepartmentsandsubsidiaries likeAIExpress,AIESLforsmoothandefficientoperations.VPNconnectivityfacilitatesuserstoaccessvarioussystemslikePSS,SAP,Revenueaccounting,etc.tocarryoutofficework.Atotalof455VPNconnectionshavebeenprovidedinthelastoneyear.

10. HUMAN RESOURCES

10.1 StaffStrength

ThestaffstrengthforPermanentEmployeesason31March2021was8156.

10.2 LongServiceMementoes

Every year all the employees of the Company who have completed 25 years of service are presentedwithalongservicemementoon27August.Accordingly,duringtheyear2020-21,on27August2020,atotalof715employeeswerefelicitated.

11. SPORTS

TheglobalimpactofCovid-19pandemichadsevereimpactontheactivitiesofsportspersonnel..Sinceitsonset,allsportsactivitiesofAirIndiahavecometoastandstill.Air IndiaSportsPromotionBoardfollowed protocol as per the circulated government directives.

However, it is amatter of pride thatmany of our Sportspersonswere selected/appointed/assignedresponsibilitiesforparticipatinginsportsactivities,whilefollowingdirectivesissuedbytheGovernmentandrespectiveSportsassociations.Further, in-spiteofseverepandemicsituationinthecountry,oursportspersonscarriedouttheirdutiesonVandeBharatmissionflights.

12. STATUTORY COMPLIANCE RELATING TO SUBSIDIARIES

AirIndiahasfivesubsidiarycompanies.ThefinancialstatementsofthesubsidiariesareincludedinthisAnnualReportelsewhere.Theirperformanceisbrieflydiscussedhere:

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12.1 AIAirportServicesLimited(AIASL)

(Rs.in Millions)Particulars 2020-21 2019-20 (Restated)

Air India’s investment in equity 1384.24 1384.24Total Income 3341.15 6961.56Total Comprehensive Income for the year (2030.51) 498.38

AIAirport Services Limited, a wholly owned subsidiary ofAir India Limited was operationalised on1st February, 2013 and started its independent operations effective April 2014. Presently, AIASLprovidesgroundhandlingservicesat103AirportsinIndia.ApartfromhandlingtheflightsofAirIndiaand its subsidiary companies, ground handling is also provided to 55 Foreign ScheduledAirlines,4 Domestic Scheduled Airlines, 4 Regional Airlines, 7 Seasonal Charter Airlines, and 23 ForeignAirlinesavailingPerishableCargohandling.AdditionallyAIAirportServicesLimitedalsoprovidescabincleaning & cabin dressing services besides undertaking repairs of aircraft Unit LoadDevice (ULD)andmealcarts.AIASLmanagedtogetadditionalbusinessatairportswhichwerehithertohandledbyunauthorizedagencies,postissuanceofnotificationbyAirportAuthorityofIndia,disallowingthesame.

AIAirportServiceshavebeen recognisedandconferredwith theRunnerupAward in thecategoryof Public Sector Undertaking by BMLMunjalAwards for ‘Business Excellence through Learning &Development’ in the year 2020-21.

12.2 AirIndiaExpressLimited(AIXL)(Rs.in Millions)

Particulars 2020-21 2019-20Air India’s investment in equity 7800.0 7800.0Total Income 20,394.15 52,306.0TotalComprehensiveIncomefortheYear 996.28 4127.7

AIXL,awhollyownedsubsidiaryofAirIndia,startedoperationsundertheBrandname‘AirIndiaExpress’from29April2005.AirIndiaExpresshasachievedanetprofitofRs.1000.97MillioninFY2020-21.

DuetooutbreakofCOVID-19pandemic,AIXLsuspendedoperationstotheaffectedcountriesandtravelrestrictionswerefurtherextendedamountingtoextensivesuspensionofinternationaloperations,whichadverselyaffectedtherevenues.Thetravelbansandordersforcessationofscheduledinternational&domesticflightscontinuedtobeoperativewellintotheFirstQuarterofFY2020-21,untilDGCAissuedOrderforcalibratedresumptionofdomesticserviceswitheffectfrom25May2020.

TomitigatetheimpactofCOVID19outbreak,theManagementswungintoactionandtookvariousstepslike operatingCargo flights, availingWorkingCapital loans under theEmergency FundingSchemeannouncedbyReserveBankof India,moratoriumonpaymentof interestonWorkingCapital loansandaircraftloans,moratoriumonpaymentofaircraftleaserentals,reductioninsalaryandallowancesofemployees,allowingemployeestoworkfromhome,controlofpaymenttovariousstationvendorsfromHeadOffice,operatingflightsunderVBMandairbubbletransportarrangement,etc.ThesestepshelpedtheCompanysailthroughtheunprecedentedenvironmentcreatedbythePandemic.

DuringFY2020-21,AirIndiaExpresscommenceditsoperationswithafleetof25B737-800NGaircraftincluding 8 leased aircraft. Due to the unfortunate incident in Kozhikode on 07thAugust2020,thefleetstrengthreducedto24aircraft.ThenumberofdestinationsservedbyAirIndiaExpressason31March

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2021 was 33 - 20 Indian and 13 International.

AirIndiaExpresshasbeennamedtheIconicBrandofIndia2021byTheEconomicTimesinrecognitionof itsoverallperformanceandefforts toensurebusinesscontinuity.Air IndiaExpresshasalsobeencitedbyEconomicTimesasoneofthe‘BestWorkplacesforWomen’fortheyear2021.

12.3 AIEngineeringServicesLimited(AIESL)(Rs. in Millions)

Particulars 2020-21 2019-20Air India’s investment in equity 1666.67 1666.67Total Income 11855.4 14275.9TotalComprehensiveIncomefortheYear 119.4 242.4

AIESLisaleadingMRO(MaintenanceRepairandOverhaul)serviceproviderinthecountryprovidingbothLineMaintenanceandMajorMaintenance for various typesofaircraft for thefleetofAir Indiagroup,thirdpartyairlinesaswellasIndianAirForce.Further,thecompanyisalsoimpartingpracticaltraining element (PTE) in association with training institutes.

DuringpandemicperiodofCOVID-19,AIESLprovidedLineMaintenanceServices toAir IndiaFleetfor itsVandeBharatFlights.Besidescarryingout,maintenancework forDomesticoperators,AIESLcarriedoutmajormaintenanceworkforAviationResearchCentre(ARC),IndianAirForce,IndianNavy,IndianCoastGuardandHAL,aswellasmaintenanceofaircraftofprivatepartieslikeReliance,TajAirCharters,ZoomAir,CluboneAirandBluedartAircraft.

12.4 AllianceAirAviationLimited(AAAL)

(Rs. in Millions)

Particulars 2020-21 2019-20Air India’s investment in equity 4022.50 4022.50Total Income 4592.27 11,811.54TotalComprehensiveIncomefortheYear (3,599.32) (2,355.75)

AAAL,awhollyownedsubsidiaryofAirIndiaLimited,whichoperatesunderthebrandnameAllianceAir,commenced operations from 15 April 1996.

AllianceAirAviationLimited(formerlyknownasAirlineAlliedServicesLimited) isoneof the leadinginternational regional airlines in the country providing connectivity to Tier II & Tier III cities in India in complete synergy with the network of Air India. It is in the process of expanding its operations on pan India basis by inductingmore aircraft in its fleet. These aircraft will serve shorter routeswithin thecountryandalsoflyoverseas.

WiththeintroductionofRegionalConnectivityScheme(RCS),anumberofnewroutestounservedandunderservedairportshaveopenedupforAllianceAirandithasbeenawarded17routes,26routes,40 routes, 12 routes and 14 routes in the 1st, 2nd, 3rd, 3.1 and 4th round respectively of the biddingprocess.AllianceAirhadactivelyparticipatedinthe4.1roundof(RCS)biddingandawaitingitsrouteallotment.AllianceAir,withitsyoungfleetofATRaircraftcantakeapositionofdominanceintheregionalmarket.It,therefore,planstoparticipateaggressivelyinthesubsequentroundsofRCSbiddingaswell.

DuetotheimpactofCOVID-19pandemicintheaviationindustry,necessarystepshavebeentakenby

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the management to cut the costs and re-negotiate various agreements with the lessors & vendors. Once theGovernment banon flight restrictionsandCOVID-19 situation improves, theCompanyplans toexpanditsnetwork(includinginternational)byincreasingthefleetinthecomingyears.

UnderWingsIndia2018,organizedbyFICCIinassociationwithGovernmentofIndia,AllianceAirhasbeendeclaredasthewinnerof‘BestAirlinesandHelicopterunderRCS’.

12.5HotelCorporationofIndiaLimited(HCI):

(Rs. in Millions)Particulars 2020-21 2019-20Air India’s investment in equity 1106.00 1106.00Government's investment in equity 270.00 270.00Total Revenue 249.60 676.25Net(Loss) (966.19) (655.47)

HCIearnsrevenuethroughitstwohotelsvizTheCentaurHotel,NewDelhiandCentaurLakeViewHotel,SrinagarandthroughitsflightKitchens,ChefairatMumbaiandDelhi.HCIalsooperatestheAirIndiaLoungeatT3,IGIAirport,NewDelhi.

IntheFY2020-21,COVID-19pandemichasaffectedthehospitalitysectorinanunprecedentedmannerwithanarrayofdisruptionsaffectingallsegmentsofthehospitalitybusiness.Thelockdownsandtravelrestrictions severely affected the hospitality business across the world and HCI was no exception.DespitetheoverallRevenuesbeingdownbyover63%overthepreviousyear,theteammanagedtosubstantiallycontroltheoperatingcostsbysaving30%againstthepreviousyear.

Withdomesticandinternationaltravelexpectedtonormalizesoon,HCIisreasonablyoptimisticthatitwillreinventandrepositionitselftocapturevariousopportunitiesinthehospitalityandcateringbusinessaswellasforayintorelatedproductanddistributionextensions.

12.6 JOINTVENTUREAGREEMENTBETWEENAIRINDIALIMITEDANDSINGAPOREAIRPORTTERMINALSERVICES(SATS)ONGROUNDHANDLING

TheCompanyhasentered intoaJointVenture(JV)agreementwithSATS,Singapore, in theequityratioof50:50toprovidegroundhandlingservicesatcertainmetroairports.ThiswasinpursuanceofGovernmentofIndiaNotificationontheGroundHandlingpolicy.

13. RISK MITIGATION STRATEGIES

The Company continuously monitored the risks perceptions and taken preventive action for mitigation of risks on various fronts.

14. INTERNAL CONTROL SYSTEMS

The Company continues to ensure proper and adequate internal control systems and procedures commensurate with its size and nature of business to ensure that all assets are safeguarded andprotected against loss from unauthorized use and that transactions are authorized, recorded andreportedcorrectly.Theinternalcontrolsystemenablesdocumentedpolicies,guidelines,authorizationandapprovalprocedures.NecessaryactionswerealsobeingtakentoaddresssomeoftheconcernsraisedbytheAuditorsinthisregard.

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The Company has an extensive system of internal controls which ensures optimal utilization and protectionof resources, ITsecurity,accurate reportingoffinancial transactionsandcompliancewithapplicablelawsandregulationsasalsointernalpoliciesandprocedures.Theinternalcontrolsystemissupplementedbyextensive internalaudits, regularreviewsbymanagementandwelldocumentedpoliciesandguidelinestoensurereliabilityoffinancialandotherrecordstopreparefinancialstatementsand other data.

TheCompanyhasawelldefinedmanualondelegationofauthorityandadministrativepowers,basedonwhich,theauthoritiesexercisetheirpowers.Thismanualisreviewedperiodicallytocopeupwiththechangesnecessitatedbytheneedsoftheorganization.Thesaidmanual,alongwiththeCompany’skeyfunctionalprocessmanuals,furtherstrengthenstheinternalcontrolsystemoftheorganization.TheCompany has independent internal audit systems to monitor the entire operations and services spanning overalllocations,businessesandfunctionsonaregularbasis.TheCompanyhasalsoemployedoutsideconsultants in its various areas of functioning in order to reduce/monitor its cost platform.

15. COMPLIANCE WITH THE RTI ACT, 2005

AirIndiaLimited,asaPSUOrganisationwithlargepublicinterface,hassuccessfullyensuredcompliancewith the provisions of Right to Information Act for providing information to the citizens.

AsrequiredbytheRTIAct,informationhasbeendisplayedontheCompany’swebsiteforthepublicat large. Air India has decentralized its structure to deal with the applications / appeals received under RTIActwitheffectfrom9January2015.Presently,AirIndiahas85CentralPublicInformationOfficers(CPIOs),75CentralAssistantPublicInformationOfficers(CAPIOs)atoutstationsand24FirstAppellateAuthorities (FAAs) for speedy disposal of applications / appeals.

2187 cases of RTI Requests and 255 Appeals were received. During the year 2020-21

Outof255Appeals,254weredisposedoffbytheFirstAppellateAuthorities.

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CORPORATE GOVERNANCE

1. Company’s Philosophy on Corporate Governance:

Air India’s philosophy on Corporate Governance has been to ensure fairness to the Stakeholdersthroughtransparency,fulldisclosures,empowermentofemployeesandcollectivedecisionmaking.Inthisprocess,theCompanycontinuouslystrivestoattainhighestlevelsofaccountability,responsibilityand fairness in all aspects of its operations. The Company remains committed towards protection and enhancementofoveralllongtermvalueforallitsstakeholders-customers,lenders,employeesandthesociety.TheCompanyalsoacknowledgesandappreciatesitsresponsibilitytowardsthesocietyatlargeandhasembarkeduponvariousinitiativestoaccomplishthis.

2. The Corporate Governance Structure:

The Governance of the Company is carried out under the overall supervision and guidance of the Board ofDirectors.Tofacilitateeffectivegovernancethedecisionmakingtakesplaceatvariouslevels.Beingaservicesectorindustrywithlargeinteractionwithpeople,theCompanyisorganisedintofunctionalaswellas territorialdivisions.Thefield levelofficialsareempowered to takequickdecisions,at thesametime;thehigherlevelstakestrategicdecisionsandlaydownguidelinesforthefieldtotakeproperdecisions.Broadlyspeaking,thedecisionmakingauthorityvestsatvariouslevels.Theselevelsareasfollows:

1. Board of Directors and the Committees of the Board.

2. TheChairmanandManagingDirectorassistedbytheExecutiveCommittee.

3. Functional Directors

4. Heads of Departments

5. Regional Heads

6. Regional Managers

7. Station Managers

3. Board of Directors:

3.1 Composition

BeingaGovernmentcompany,theDirectorsareappointedbytheGovernmentofIndia.As on 31 March 2021, theBoard comprised fiveWhole timeDirectors –Chairman andManagingDirector, Director(Finance), Director (Personnel), Director (Commercial) and Director (Operations) – and four Non-Executive Directors (two Government nominee Directors and two Independent Directors)Non-executive Boardmembersareeminentpersonalitieshavingwideexperience.

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BOARD OF DIRECTORS AS ON 31 MARCH 2021

Shri Rajiv Bansal Chairman & Managing Director

ShriSatyendraKumarMishra JointSecretary,MinistryofCivilAviation

Shri Vimalendra A Patwardhan Joint Secretary & Financial Advisor

Ministry of Civil Aviation

Shri Kumar Mangalam Birla Independent Director

Smt.DaggubatiPurandeswari IndependentDirector

Shri Vinod Hejmadi Director (Finance)

Smt. Amrita Sharan Director (Personnel)

Ms. Meenakshi Mallik Director (Commercial)

Capt. Rajwinder Singh Sandhu Director (Operations)

ShriKumarMangalamBirlaandSmt.D.PurandeswericeasedtobeDirectorseffective7August2021and3October 2021 respectively.Asondate there is no IndependentDirector on theBoardof theCompany

3.2 Board/Committee Meetings and Procedures

While the CMD and Functional Directors are whole time Directors who are in charge of the day to dayoperationsoftheCompany,strategicdecisionsaretakenundertheoverallsupervisionandguidance of Board of Directors which include Government Nominee Directors and Independent Directors. The Board functions either as a full Board or through its constituted Committees. Meetings of the Board and the Committees are held at regular intervals. Statutory requirements relatingtominimumnumberofmeetingsandtimegapbetweentwoconsecutivemeetingsarecompliedwith.Incaseofexigencies,theResolutionsarepassedbycirculation.VideoConferencingfacilityisalsoofferedtotheDirectors.CompanySecretaryassistsinallthemeetingsofthe Board and Committees and prepares Draft Minutes of such meetings.

3.3 Meetings of the Board

Duringthefinancialyear2020-21,eightmeetingsoftheBoardofDirectorswereheldon29May2020,7July2020,11September2020,1December2020,27January2021(twomeetings),19March2021(twomeetings)andallthesemeetingswerechairedbytheCMD.

The attendance of the Directors was as follows:

Name of Director No of Meetings

held during tenure in

FY 2020-21

Attendance in Board Meetings

held during the year

Whether attended Adjourned

AGM held on 19 March 2021

No. of Directorships in Companies

No. of Committee

Memberships across all

companiesA.EXECUTIVEDIRECTORS

Shri Rajiv Bansal CMD

8 8 Yes 11 5

Shri Vinod Hejmadi Director (Finance)

8 8 Yes 5 11

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Smt. Amrita Sharan Director (Personnel) (Appointedeff14July2020)

6 6 No 3 2

Ms. Meenakshi Mallik Director (Commercial) (Appointedeff.14July2020)

6 4 No 4 Nil

Capt. R.S. Sandhu Director (Operations) (Appointedeff.24July2020)

6 6 No 1 1

B. GOVT NOMINEE DIRECTORSShri S K Mishra 8 8 Yes 5 9Shri V Patwardhan 8 8 Yes 8 9C. INDEPENDENT DIRECTORS

Dr. R K Tyagi (Ceasedeff.31May2020)

1 1 No 3 5

Dr.SyedZafarIslam Ceasedeff.31May2020)

1 1 No 1 1

Shri Kumar Mangalam Birla

8 1 No 23 7

Smt.DaggubatiPurandeswari

8 4 No 1 5

Note:

1. NoneoftheDirectorsarerelatedtoeachother;

2. NoneoftheDirectorshaveanypecuniaryrelationshiportransactionswiththeCompany,exceptremunerationincludingsittingfeesforwhichtheyareentitled;

3. TheDirectorships/CommitteeMembershipsinotherCompaniesarebasedonthelatestdisclosuresreceived from the respective Director.

4. Board Sub-Committees:

TheBoard has been assisted byBoardSub-Committees, and theCompanySecretary acts as theSecretarytoalltheBoardCommittees.TheBoardCommitteesdeliberateandrecommendtotheBoardtheproposalsfallingundertheirTermsofReferenceandthefinalauthority todecideonthemattersiswiththeBoard.Thedetailsinter-alia,pertainingtocomposition,briefofTermsofReference(ToR),meetingandattendanceattheCommitteeMeetingsoftheCompanyisenumeratedbelow:

4.1 Audit Committee

Ason31March2021,AuditCommitteeconsistsoffourmembersoutofwhichtwoareIndependentDirectors.TheAuditCommitteeassiststheBoardtofulfillitsCorporateGovernanceandoverseeing

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responsibilities in relation to its financial reporting, internal control systems, riskmanagementsystemsandinternalandexternalauditfunctions.WhiletheDirector(Finance),HeadofInternalAuditandStatutoryAuditorsareSpecialInvitees,theChairmanandManagingDirectorattendasPermanent Invitee.

During the year under review, four meetings of the Audit Committee were held. The details of membersincludingchange,ifany,intheirtenure,numberofmeetingsheldduringtheyearandtheattendanceofthemembersaregivenbelow:

Name of Director Category No. of Meetings held during tenure

Attendance by Directors

Dr. Syed Zafar Islam, Independent Director(CeasedtobeDirectoreffective31May2020)

Chairman 0 0

Dr.R.K.Tyagi,IndependentDirector(CeasedtobeDirectoreffective31May2020)

Member 0 0

ShriVPatwardhan,JointSecretaryandFinancialAdvisor,MoCA

Chairman 4 4

ShriSKMishra,JointSecretary,MoCA Member 4 4Shri Kumar Mangalam Birla, IndependentDirector (Ceased to be Director effective 7August 2021)

Member 4 0

Smt. D. Purandeswari, Independent Director(CeasedtobeDirectoreffective3October2021)

Member 4 1

The Terms of Reference of the Audit CommitteehavebeenapprovedbytheBoard,takingintoaccounttheprovisionsofSection177oftheCompaniesAct,2013andguidelinesonCorporateGovernanceforCPSEs2010,issuedbytheDepartmentofPublicEnterprises(DPE)andincludethefollowing:

• Oversightofthecompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible.

• RecommendingtotheBoardthefixationofauditfeesofexternalauditorsandalsoapprovalforpayment for any other services

• Reviewing,withthemanagement,theannualfinancialstatementsbeforesubmissiontotheBoardforapproval,withparticularreferenceto:

a) MattersrequiredtobeincludedintheDirectors’ResponsibilityStatementtobeincludedintheBoard’sreportintermsofsection134(5)oftheCompaniesAct,2013;

b) Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame;

c) Major accounting entries involving estimates based on the exercise of judgment bymanagement;

d) Significantadjustmentmadeinthefinancialstatementsarisingoutofauditfindings;

e) Compliancewithlegalrequirementsrelatingtofinancialstatements;

f) Disclosureofanyrelatedpartytransactions;and

g) Qualificationsinthedraftauditreport.

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• Reviewingwiththemanagement,adequacyofinternalauditfunction,coverageandfrequencyofinternalaudit,performanceofinternalauditorsandadequacyoftheinternalcontrolsystems;

• Discussionwithinternalauditorsand/orstatutoryauditorsanysignificantfindingsandfollowupthere on.

• Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditors/agenciesintomatterswhere there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.

• Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofaudit as well as post-audit discussion to ascertain any area of concern.

• To look into the reasons for substantialdefaults in thepayment to thedebentureholdersandcreditors.

• To review the functioning of the Whistle Blower mechanism.

• ToreviewthefollowupactionontheauditobservationsoftheC&AGaudit.

• To review the follow up action taken on the recommendations of the Committee on PublicUndertakings of the Parliament.

• Provideanopenavenueofcommunicationbetweentheindependentauditor,internalauditorandthe Board of Directors.

• Review all related party transactions in the company.

• Reviewwiththeindependentauditortheco-ordinationofauditeffortstoassurecompletenessofcoverage,reductionofredundanteffortsandtheeffectiveuseofallauditresources.

• Considerandreviewthefollowingtheindependentauditorandthemanagement:

a. The adequacy of internal controls including computerized information system controls and security,and

b. Related findings and recommendations of the independent auditor and internal auditor,together with the management responses.

• Considerandreview the followingwith themanagement, internalauditorand the independentauditor:

a. Significantfindingsduringtheyear,includingthestatusofpreviousauditrecommendations

b. Any difficulties encountered during audit work including and restrictions on the scope ofactivities or access to required information

• Commensurate with its role, theAudit Committee is invested by the Board of Directors withsufficientpowers,whichincludethefollowing:

a. To investigate any activity within its terms of reference.

b. To seek information on and from any employee.

c. Toobtainoutsidelegalorotherprofessionaladvice,subjecttotheapprovaloftheBoardofDirectors.

d. Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary.

e. Toprotectwhistleblowers.

4.2 CorporateSocialResponsibility(CSR)andSustainabilityCommittee

TheBoard constituted itsCorporateSocialResponsibility andSustainabilityCommitteeon11

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December2012toapproveandreviewsustainabilitydevelopmentprojectsfromtimetotime.Ason31March2021,followingweretheMembersoftheCSRandSustainabilityCommittee:

Shri K.M.Birla ChairmanSmt.D.Purandeswari MemberShri Vinod Hejmadi MemberShriAshwaniSehgal,GM–Personnel NodalOfficer

TheobjectiveofthisCommitteeistoreview,monitorandprovidestrategicdirectionstotheCompany'sCSR and sustainability practices, guide the Company in integrating its social and environmentalobjectiveswithitsbusinessstrategies.TheCommitteeshallalsoformulateandmonitortheCSRPolicyand recommend to the Board the annual CSR Plan of the Company. The Terms of Reference of this Committeeareasunder:

i. Formulateand recommend to theBoard,aCorporateSocialResponsibilityPolicywhichshallindicatetheactivitiestobeundertakenbythecompanyasspecified;

ii. RecommendtheamountofexpendituretobeincurredonvariousCSRactivities;and

iii. MonitortheCorporateSocialResponsibilityPolicyofthecompanyfromtimetotime.

However,itmaybenotedthatinviewofthelossesmadebytheCompany,nocontributionismadetowardsCSRintermsofCompaniesAct2013andassuch,noCorporateSocialResponsibility(CSR)andSustainabilityCommitteemeetingheldduringtheyear

4.3 Nomination and Remuneration Committee

BasedontheTermsofReferenceasperSection178oftheCompaniesAct,2013,DPEGuidelinesonCorporateGovernanceforCPSEs,2010,andtheadministrativerequirementsoftheCompany,theNominationandRemunerationCommittee (NRC)hasbeen constituted. Ason31March2021,theNRCcomprisedofthefollowing:

Smt.D.Purandeswari ChairpersonShri Rajiv Bansal MemberShri K.M.Birla MemberShri S K Mishra Member

TheCompany,beingaGovernmentCompany,theappointment,tenureandremunerationofDirectorsare decided by the Government of India. The provisions of the Companies Act, 2013, relating toappointmentofDirectors,policyrelatingtotheremunerationofDirectorsandperformanceevaluationpertainingtoNRCshallnotbeapplicabletoGovernmentcompanies.

The Committee shall recommend nomination to the key positions of Executive Directors and CEOs of subsidiaries.Incaseofhiringofspecializedhumanresources(oncontract)theCommitteeshalldecidethe remuneration keeping in view the market practices.

TheNominationandRemunerationCommitteemettwiceon24April2020and26October2020duringthe year under review.

Thedetailsofmembersincludingchange,ifany,intheirtenure,numberofmeetingsheldduringtheyearandtheattendanceofthemembersaregivenbelow:

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Name of Director Category No. of Meetings held during tenure

Attendance by Directors

DrSyedZafarIslam(CeasedtobeDirectoreffective31May2020)

Chairman,Independent Director

1 1

Smt. D. Purandeswari (Appointed as Chairperson we.f. 7 July 2020)

Chairperson Independent Director

1 1

Shri Rajiv Bansal Member 2 2Shri K.M.Birla MemberIndependent

Director2 0

Shri S K Mishra MemberGovernmentNominee Director

2 2

Dr. R. K. Tyagi (Ceased to be Directoreffective31May2020)

MemberIndependentDirector

1 1

4.3.1. Remuneration to Directors

AirIndiabeingaGovernmentCompany,theappointmentandremunerationpayabletoitsWhole-timeDirectorsisdeterminedbytheGovernmentofIndia.Thenon-officialpart-time(Independent)DirectorsarepaidSittingFeesforBoardMeetingsandSubCommitteeMeetingsoftheBoardattendedbythem.AirIndiadoesnothaveapolicyofpayingcommissiononprofitstoanyoftheDirectors of the Company.

ThedetailsofremunerationofDirectorsaregivenbelow:

a. Executive Directors

Names of Directors All elements of remuneration packages of the Directors i.e. salary, benefits, bonus, pension, etc.

Total

Salary & Allowances

Contribution to Provident Fund & other

funds

Other benefits & perquisites

Performance Related Pay

Shri Rajiv Bansal 32,46,464 Nil Nil Nil 32,46,464Shri Vinod Hejmadi 32,75,502 2,87,487 43,200 Nil 33,18,702Smt. Amrita Sharan 27,87,538 2,26,679 32,400 Nil 28,19,939Ms.Meenakshi Mallik 25,24,958 2,26,084 32,400 Nil 25,57,359Capt.R.S.Sandhu 71,40,174 2,29,423 32,400 Nil 71,72,574

b.IndependentDirectors

The Independent Directors are paid sitting fees at Rs.20,000foreachmeetingoftheBoardandRs.10,000 for eachmeeting of theCommittee attendedby them.The sitting feespaid to theindependentdirectorsduringtheyeararegivenbelow:

Dr.RKTyagi Rs.40,000/-

Dr.SyedZafarIslam Rs.30,000/-

ShriK.M.Birla Rs.20,000/-

Smt.DaggubatiPurandeswari Rs.1,20,000/-

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c. Government Nominee Directors Government Nominee Directors are neither paid any remuneration nor sitting fees.4.3.2 Stock Option The Company has not introduced any Stock Option Scheme. 4.4 Human Resources (HR) Committee TheTermsofReferenceoftheHRcommitteearetoassisttheBoardbyreviewingandfinalising

ServiceRegulations,PassageRegulations,RecruitmentProcedure,PromotionPolicy,MedicalBenefitScheme,ForeignPostingPolicies,organizationstructure,etc.Ason31March2021,thefollowingweretheMembersoftheHRCommittee:

Smt.D.Purandeswari ChairpersonShri Vinod Hejmadi MemberShri S K Mishra Member

TheHRCommitteemetonceduringtheyear,on15March2021,whereinallthememberswerepresent.4.5 Share Allotment Committee TheShareAllotmentCommitteeconsiderstheallotmentofshares,issuanceofsharecertificates

andothermattersincidentalthereto.Ason31March2021,thefollowingweretheMembersoftheShareAllotmentCommittee:

Shri V Patwardhan ChairmanShri S K Mishra MemberShri Vinod Hejmadi Member

TheShareAllotmentCommitteemetonceduringtheyear,on6th October2020whereinallthememberswere present.

4.6 Flight Safety Committee The Flight Safety Committee was constituted as per the directives of the Ministry of Civil Aviation.

The Terms of Reference are to review and monitor all safety related matters and to close the Audit findingsinatimelymanner.TheCommitteemaycarryoutinspectionsforthispurpose.EDandChiefofFlightSafetyisapermanentinviteeandtheCommitteemetonce,duringtheyearunderreview.Ason31March2021thefollowingweretheMembersoftheFlightSafetyCommittee:

Shri S K Mishra ChairmanShri Vinod Hejmadi MemberCapt R S Sandhu Member

ED & Chief of Flight Safety is a permanent invitee to this Committee. 4.7 Consumer Satisfaction Committee The Terms of Reference of this Committee are to look into the various areas relating to customer

interests/facilities,suchasfoodonboard,marketingschemes,loyaltyprogramme,businessdealswithcorporatehouses,schemeslikeMaharajaDirectetc.Ason31March2021,thefollowingweretheMembersoftheConsumerSatisfactionCommittee:

Shri K.M.Birla ChairmanMs Meenakshi Mallik Member,Convenor

ED-CustomerServicesandED-InflightServicesareInviteestothisCommittee.

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4.8 Executive Management Committee

The Executive Management Committee (EMC) forms an integral part of the Governance structure. PresidedoverbytheChairmanandManagingDirector,allthefunctionalDirectorsandheadsofallDepartmentsshallbemembersoftheEMC.

TheprimaryroleoftheCommitteeisstrategicmanagementoftheCompany'sbusinesseswithinBoardapproveddirection/frameworkandrealizationofCompanygoals,aswellastoenabledecision making through multi-functional inputs apart from enhancing participation involvement and commitment of Functional Heads in the Corporate Governance and to ensure ethical and efficientconductof theaffairsof theCompany. Allsubjectscomingbefore theBoardarefirstplacedbeforetheEMCandareasoneddecisionisarrivedat.ThedeliberationsoftheEMC,insuchcasesareplacedbeforetheBoard.

4.9 Cost Cutting Committee

The Committee was constituted in July 2020. The Terms of Reference are to consider and urgently implementcostcuttingmeasuresforachievingthefinancialefficiencieswhichwasprojectedtothe Government as a part of the revival programme.

Duringtheyearunderreview,theCommitteemettwice.Ason31March2021,thefollowingwereMembersoftheCommittee:

Shri Vinod Hejmadi ChairmanShri V Patwardhan MemberSmt.D.Purandeswari Member

5. Meeting of Non official Independent Directors

AsrequiredunderSchedule IVof theCompaniesAct,2013, theIndependentDirectorsarerequiredtoholdatleast onemeeting in a year,without thepresenceof theotherDirectorsandmembersofmanagement. No meeting was held during the year.

6. Code of Conduct for members of the Board and senior management

TheBoardofDirectorshaslaiddownCodeofConductfortheBoardmembersandseniormanagementpersonnelof theCompany.Acopyof theCode isavailableon thewebsiteof theCompany.All themembersoftheBoardandSeniorManagementPersonnelhaveaffirmedcomplianceofrespectiveCodeofConductduringtheyearended31March2021.AdeclarationofcompliancesignedbyChairman&Managing Director of the Company is enclosed with this Annual Report.

7. Integrity Pact

In linewith theCVCguidelines, theCompanyhas introduced IntegrityPact (IP) toenhanceethics /transparencyintheprocessofawardingcontractswitheffectfromFebruary2008.TheIntegrityPacthasnowbecomeapartof tenderdocuments tobesignedby theCompanyandby thevendor(s) /bidder(s)withavalueofRs.100Millionandabove.

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8. Annual General Meetings

Thelocation,dateandtimeoftheAGMsheldduringtheprecedingthreeyearsaregivenbelow:

Date and time of the Meeting

Venue Special Resolution Passed at the Meeting

12th Annual General Meeting

26December2018 AirlinesHouse,113GurudwaraRakabganjRoad,New Delhi 110001

13th Annual General Meeting

30December2019 AirlinesHouse,113GurudwaraRakabganjRoad,NewDelhi110001

Extra Ordinary General Meeting

8November2019 AirlinesHouse,113GurudwaraRakabganjRoad,NewDelhi110001

Alteration of Memorandum & Articles of Association as per CompaniesAct,2013

14th Annual General Meeting

29December2020 AirlinesHouse,113GurudwaraRakabganjRoad,NewDelhi110001

Increase the remuneration of Statutory Auditors of the Company for the year 2019-20

9. Means of communication

The Company's website (www.airindia.in) provides information on the company profile, financialperformance,etc.Substantialbusinesshappensthroughthewebsite.Mattersofinteresttoemployeesare circulated internally from time to time.

10. General Shareholders/Debenture holders information

• TheentiresharecapitalhasbeenheldbythePresidentofIndiaalongwithhisnominees.• ThesharesoftheCompanyarenotlistedonanyStockExchange.However,theNon-convertible

Debentures (NCDs)are listedwithNSEandBSE.AnnualListingFeeshavebeenpaid to theStock Exchanges

• M/sLinkIntimeIndiaPvtLtdhavingitsaddressatC-101,247Park,L.B.S.Marg,Vikhroli(West),Mumbai400083aretheRegistrarandTransferAgentforthedebenturesoftheCompany.Allmatters connected with debenture transfer, transmission, interest payment is handled by thetransfer agent.

11. Disclosures

• Duringtheyear,therewerenotransactionsofmaterialnaturewiththedirectorsortheirrelativesorthemanagementthathadpotentialconflictwiththeinterestoftheCompany.

• TherewerenomateriallysignificantrelatedpartytransactionshavingpotentialconflictwiththeinterestsoftheCompanyatlargeduringFY2020-21.Nevertheless,RelatedPartyDisclosuresare included in the notes forming part of the Financial Statements of the Company for the year 2020-21.

• Therewerenoinstancesofnon-complianceonanymatterrelatedtoanyguidelinesissuedbytheGovernment during the last three years.

• TheCompanyhascompliedwith the ‘CorporateGovernanceGuidelinesforCPSEs’ issuedbytheDepartmentofPublicEnterprisesasdirectedbytheMinistryofCivilAviationandquarterlycompliancereportshavebeenregularlysubmitted.

• TheCompanybeingPSU,CentralVigilanceCommissionGuidelinesareapplicable,whichprovideadequate safeguard against victimization of employees.

***********

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CODE OF CONDUCT

DECLARATION

IherebydeclarethatalltheBoardMembers&SeniorManagementPersonnelhaveaffirmedcompliancewiththeCodeofConductasadoptedbytheBoardofDirectorsfortheyearended31March2021.

Sd/-(Rajiv Bansal)

Chairman & Managing DirectorAirIndiaLtd.

Place:NewDelhi

Date:29December2021

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ANNUAL STATEMENT SHOWING REPRESENTATION OF THE PERSONS WITH DISABILITIES IN SERVICE AS ON 1 JANUARY 2021 AND DIRECT RECRUITMENT

/ PROMOTION DURING THE CALENDAR YEAR 2020

NAME:AIRINDIALIMITED

Representation of VH/HH/OH as

on 1.1.2021

Number of Appointments made during the Calendar Year 2021

By Direct Recruitment By Promotion By DeputationGroup Total VH HH OH Total VH HH OH Total VH HH OH Total VH HH OH(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)“A” 4526 03 01 18 03* - - - - - - - - - - -“B” 2157 03 02 10 -- - - - 04 - - - - - - -“C” 69 -- - -- 83** - - - -- - - - - - - -“D” 1538 10 08 12 - - - - - - - - - - - -Total 8290 16 11 40 86 - - - 04 - - - - - - -

Note:Recruitmentcarriedout in theyear2020 forall thepostswere“FixedTermContract”.There isnoreservationforPWDsforthepostsofCabinCrew.Forotherposts,noPWDcandidatesappearedfortheprocess.

Group Post Total No. of appointments onFTCbasis A* Doctor 03 C** Tr Controller 07 Data Entry Operator 02 CabinCrew 74

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ANNEXURE TO DIRECTORS’ REPORT FOR THE YEAR 2020-21FORM NO.MGT 9 EXTRACT OF ANNUAL REPORT

AS ON FINANCIAL YEAR ENDED ON 31.03.2021PURSUANT TO SECTION 92(3) OF THE COMPANIES ACT, 2013 AND RULE 12(1)

OF THE COMPANIES (MANAGEMENT & ADMINISTRATION) RULES, 2014

I. REGISTRATION & OTHER DETAILS

1 CIN U62200DL2007GOI1614312 Registration Date 31 March 20073 Name of the Company AIRINDIALIMITED4 Category/Sub-CategoryoftheCompany Government Company5 Address of the Registered Office & Contact

DetailsAirlines House, 113, Gurudwara RakabganjRoad,NewDelhi110001

6 Whether listed Company Yes(Debentures)7 Name, Address & Contact Details of the

Registrar&TransferAgent,ifanyLink Intime (I) Pvt. Limited C-101, 247 Park,L.B.S.Marg, Vikhroli (West), Mumbai 400 083 ContactNo.:022–491860000

II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)

Sr. No. Name and Description of main Products/Services

NIC Code of the Product/Service

% to Total turnover of the Company

Toestablish,maintainandoperate internationaland domestic air transport services, scheduledand non scheduled, in all the countries of theworldforthecarriageofpassengers,mealsandfreight and for any other purposes

511 100

III PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY

Sr. No.

Name and Address of the Company

CIN/GIN Holding/ Subsidiary/ Associate

% of Shares

Applicable Section

1 AirIndiaExpressLimited1stFloor,OldOperationsBldg.,AirIndiaComplex,OldAirport,Santacruz(E),Mumbai400029

U62100MH1971GOI1015328 Subsidiary 100% 2(87)

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2 AIAirportServicesLimited2ndFloor,GSDBuilding,AirIndiaComplex,Terminal2,IGIAirport,NewDelhiSouthWest,Delhi 110 037

U63090DL2003PLC120790 Subsidiary 100% 2(87)

3 AI Engineering Services Ltd. AirlinesHouse,113,GurudwaraRakabgangRoad,NewDelhi110001

U742101DL2004GOI125114 Subsidiary 100% 2(87)

4 AllianceAirAviationLtd.AllianceBhavan,DomesticTerminalI,IGIAirport,New Delhi 110 037

U51101DL1983GOI016518 Subsidiary 100% 2(87)

5 Hotel Corporation of India Limited 1stFloor,TransportAnnexBuilding,AirIndiaComplex OldAirport,Santacruz(E),Mumbai400029

U55101MH1971GOI015217 Subsidiary 80.38% 2(87)

6 Air India SATS Airport ServicesLimited AirlinesHouse,113,GurudwaraRakabgangRoad,NewDelhi110001

U74900DL2010PTC201763 Joint Venture

50% 2(6)

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

Category of the

Shareholders

No. of Shares held at the beginning of the year (As on 01-04-2020)

No. of shares at the end of the year (31-03-2021)

% Cha-nge

during the

yearDemat Physical Total % of

Total Shares

Demat Physical Total % of Total

SharesA. Promoters(1) Indiana) Individual/ HUFb)Central Govt.

32665210000 32665210000 100 32665220000 32665220000 100

c) State Govt. (s)d) Bodies Corp.e) Bank/FIf) Any otherTotal shareholding of Promoter (A)

32665210000 32665210000 100 32665220000 32665220000 100

B.PublicShareholding

Not Applicable

1. Institutions

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a) Mutual Funds /UTIb)Banks/FIc) Central Govt.d) State Govt.e) Venture Capital Fundsf) Insurance Companiesg) FIIh) Foreign Venture Capital Fundsi) Others (specify) Foreign BanksSub-total(B)(1)

Category-wise Share Holding

Category of the

Shareholders

No. of Shares held at the beginning of the year

(As on 01.04.2020)

No. of Shares held at the end of the year (As on 31-03-2021)

% Cha-nge

during the

yearDemat Physical Total %of

Total Shares

Demat Physical Total %ofTotalShares

2. Non-Institution

NotApplicable

a) Bodies Corp. (Market Maker + LLP)i) Indianii) Overseasb)Individuali) Individual shareholders holding nominal share capital uptoRs.1 lakhii) Individual shareholders holding nominal share capital in excess of Rs.1 lakhc) Others (specify)i) Non Resident Indianii) Non Resident Indian – Non Repatriableiii)OfficeBearersiv) Directorsv) HUF

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vi) Overseas Corporate Bodiesvii) Foreign Nationalsviii) Clearing Membersix) Trustsx) Foreign Bodies – D RSub total(B)(2)Total Public Shareholding (B)=C. Shares held byCustodianforGDRs& ADRsGrand Total (A+B+C)

32665210000 32665210000 100 32665220000 32665220000 100

B) Shareholding of PromoterSr. No.

Shareholder’s Name

Shareholding at the beginning of the year

Shareholding at the end of the year % change in Share-holding

during the year

No. of shares

% of Total

Shares of the

Company

% of Shares Pledged/

encumbered total shares

No. of shares

% of Total Shares of the

Company

% of Shares Pledged/

encumbered total shares

1 Government of India

32665210000 100 NIL 32665220000 100 NIL

C) Change in Promoters’ Shareholding (please specify, if there is no change) – No change

Sr. No.

Particulars Shareholding at the beginning of the year

Cumulative Shareholding at the end of the year

No. of Shares % of total shares of the

company

No. of shares

% of total shares of the

companyAt the beginning of theyearGovernment of India 32665210000 100 32665220000 100At the end of the yearGovernment of India 32665210000 100 32665220000 100

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D) Shareholding Pattern of top ten shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)

Sr. No.

For each of the Top 10 Shareholders

Shareholding at the beginning of the year

Cumulative Shareholding at the end of the year

No. of shares % of total shares of the company

No. of shares

% of total shares of the company

1 NOT APPLICABLE2345678910

E) Shareholding of Directors and Key Managerial Personnel

Sr. No.

Shareholding of each Directors and each Key Managerial Personnel

Shareholding at the beginning of the year

Cumulative Shareholding at the end of the year

No. of shares % of total shares of the company

No. of shares

% of total shares of the

company123

V. INDEBTEDNESS – Indebtedness of the Company including interest outstanding/accrued but not due for payment

(Rs. in Million)No. Particulars Total

Secured loans excluding deposits

Unsecured loan Deposits Total

(A) Indebtedness at the beginning of the Financial Year

i) Principal Amount 74,479.2 309,184.7 0 383,663.9ii) InterestDuebutnotpaid 663.1 7,065.1 0 7,728.2iii) InterestAccruedbutnot

due298.9 5,153.9 0 5,452.8

Total (A) = (i + ii + iii) 75,441.2 321,403.7 0 396,844.9

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No. Particulars TotalSecured loans

excluding deposits

Unsecured loan Deposits Total

(B) Changes in Indebtedness during the Financial Year

0

i) Additions 44,179.5 59,640.0 0 103,819.5ii) Reductions 33,531.0 15,710.7 0 49,241.7iii) Revaluation impact (1,344.2) (607.8) 0 (1,952.0)

Net Change (B) = (i + ii + iii) 9,304.3 43,321.5 0 52,625.8(C) Indebtedness at the End of

the Financial Yeari) Principal Amount 83,783.5 352,506.2 0 436,289.7ii) InterestDuebutnotpaid 340.6 11,178.8 0 11,519.4iii) InterestAccruedbutnotdue 640.9 5,649.7 0 6,290.6

Total (C) = (i + ii + iii) 84,765.0 369,334.7 0 454,099.7

VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole Time Director and/or Manager

(Figures in Rs.)Sr. No.

Particulars of Remuneration

Name of MD/WTD/Manager Total AmountShri Bansal Shri Hejmadi Smt. Sharan Ms Mallik Capt. Sandhu

1 Gross Salary 32,46,464 32,75,502 27,87,539 25,24,959 71,40,174 1,57,28,174(a) Salary as per provisions contained in Section 17(1) of the Income Tax Act 1961(b)Valueofperquisites u/s 17(2) of the Income Tax Act 1961

43,200 32,400 32,400 32,400 1,40,400

(c)Profitsinlieuof salary under section 17(3) of the Income Tax Act 1961

2 Stock Option3 Sweat Equity4 Commissionas%

ofprofit,5 Others specify6 Others(PF,DCS,

HousePerks,taxetc)Total 32,46,464 33,18,702 28,19,939 25,57,359 71,72,574 191,15,038

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B REMUNERATION OF DIRECTORS(Figures in Rs.)

Sr. No.

Particulars of Remuneration

Name of MD/WTD/Manager Total Amount

1 Independent Directors Dr. R K Tyagi

Dr.SyedZafarIslam

Shri K M Birla

Smt. D Purandeswari

Fees for attending Board Committee Meetings

40,000 30,000 20,000 1,20,000 2,10,000

CommissionOthers,pleasespecify(Fees for attending BoardSubCommitteeMeetings)Total (1) 40,000 30,000 20,000 1,20,000 2,10,000

2 Other Non Executive Directors Fees for attending Board Committee MeetingsCommissionOthers,pleasespecify(Fees for attending BoardSubCommitteeMeetings)Total (2) -- -- -- -- --Total (B) = (1+2) 40,000 30,000 20,000 1,20,000 2,10,000Total Managerial RemunerationOverall ceiling as per the Act

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C REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/WTD/MANAGER(Figures in Rs.)

Sr. No.

Particulars of Remuneration Key Managerial Personnel Total Amount

Smt.KalpanaRao,Company Secretary

1 Gross Salary 25,48,976 25,48,976(a) Salary as per provisions contained in Section 17(1) of the Income Tax Act 1961(b) Value of perquisites u/s17(2) of the Income Tax Act 1961(c)Profitsinlieuofsalaryundersection 17(3) of the Income Tax Act 1961

2 Stock Option3 Sweat Equity4 Commissionas%ofprofit

Others specifyOthers(PF,DCS,HousePerks,tax etc)Total 25,48,976 25,48,976

VII PENALITIES/PUNISHMENT/COMPOUNDING OF OFFENCES

Type Section of the Companies Act

Brief Description

Details of Penalty

Punishment/ Compounding fees imposed

Authority (RD/NCLT/COURT)

Appeal made if

any (give detail)

A.COMPANY–NILPenaltyPunishmentCompoundingB.DIRECTORS–NILPenaltyPunishmentCompoundingC. OTHER OFFICERS INDEFAULT–NILPenaltyPunishmentCompounding

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SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31STMARCH, 2021

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleno.9oftheCompanies(AppointmentandRemunerationPersonnel)Rules,2014]

To,TheMembers,AirIndiaLimited,

IhaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyAirIndiaLimited(hereinaftercalled‘theCompany’).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinion thereon.IhaveconductedonlineverificationandexaminationofrecordsasfacilitatedbytheCompanyduetoCovid19andsubsequentlockdownsituationforthepurposeof issuing this Report.

BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyhasduringtheauditperiodcoveringthefinancialyearendedon31stMarch,2021generallycomplied with the statutory provisions listed hereunder and also that the Company has proper Board process andcompliancemechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmadeavailabletomeandmaintainedbytheAirIndiaLimitedforthefinancialyearendedon31stMarch,2021accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(theAct)andtherulesmadethereundersubjecttothefollowingobservations:

(a) Debenture Reserves as required under Section 71(4) of the Companies Act, 2013and rules made thereunder is not created in absence of profit.

(b) The Audit Committee was not properly constituted as required Section 177(2) of the Companies Act, 2013.

(c) Audit Committee comprises of 4 directors out of which only 2 are independent and chairman is also not ID.

(d) No meeting of the Audit Committee was held during the 1st April, 2020 to 5th October, 2020.

(e) None of the Independent Directors was present in three out of the four meetings of the Audit Committee.

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandByelawsframedthereunder;

(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialborrowing;

AsconfirmedbytheManagement,theCompanydoesnothaveForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialborrowing.

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndia

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Act,1992(‘SEBIAct’):-

a) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtsSecurities)Regulations,2008;

b) ChapterV of theSecurities andExchangeBoard of India (ListingObligations andDisclosureRequirements)Regulations,2015:

The Company has issued five series of Debentures and the same are listed with the BSE Ltd. and the National Stock Exchange of India Ltd. I report that the Company has complied with the applicable regulations under SEBI (LODR) Regulations, 2015 except There was a marginal delay in compliance of the provisions of Regulations 50(1) and 60(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Ireportthatduringtheyearunderreview,therewasnoaction/eventinpursuanceof–

a) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,2009;

b) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

c) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;

d) TheSecuritiesandExchangeBoardofIndia(Buy-backofSecurities)Regulations,1998;and

e) The Securities and Exchange Board of India (Employees Stock Option Scheme and employees Stock Purchase Scheme) Guidelines, 1999 and/or SEBI (Share Based Employee Benefits)Regulations,2014;

f) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2009;and

g) The Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Regulations,1993regardingtheCompaniesActanddealingwiththeclient.

(vi) FollowingaretheActs/GuidelinesspecificallyapplicabletotheCompany:

• AircraftAct,1934

• CarriagebyAirAct,1972

• TokyoConventionAct,1975

• Anti-HijackingAct,1982

• SuppressionofUnlawfulActsagainstSafetyofCivilAviationAct,1982

• CivilAviationRequirementsissuedbyDirectorGeneralofCivilAviation(DGCA)

Basedontheexplanationgivenandrepresentationmadebythemanagement, I report thatDirectorGeneral of Civil Aviation (DGCA) has issued Civil Aviation Requirements under Section 4 of the Aircraft Act,1934 readwithRule133AofAircraftRules,1937and theCompany is required tocomplywithsuchrequirementsunderDGCAchecksystems.WhilethebroadprinciplesoflawarecontainedintheAircraftRules,1937,CivilAviationRequirementsareissuedtospecifythedetailedrequirementsandcompliance procedure.

Asperexplanationandrepresentationmadebythemanagement,DGCAhasissuedacirculardated21.12.2011inconnectionwithregulatoryauditpolicyandprogramme,underwhichregulatoryauditsarebeingcarriedoutwithanaimtoascertaintheinternalcontroloftheorganisationinitsactivitiesandto

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ensurecomplianceofregulatoryrequirements.ItisexplainedbytheCompanythattheregulatoryauditoftheCompanyisdonebytheauditteamofDGCAaspertheauditprogrammeandauditprocedureasprescribedunderregulatoryauditpolicyofDGCA.TheJointDirectorGeneralofCivilAviationnominatedby theDGCA is responsible forall regulatoryauditsand inspectionsand isnormally theConveningAuthority.

RegulatoryAuditsareconductedforthegrantofapprovalsforInitialCertification,AdditionalApproval,RoutineConformanceandSpecialPurposeAuditpursuanttotheAircraftAct,1934.TheDGCAoranyotherofficerspeciallyempoweredinhisbehalfbytheCentralGovernmentperformsthesafetyoversightfunctionsinrespectofmattersspecifiedinthisActortheRulesmadethereunder.

Ifurtherreportthatbasedontheinformation,explanationandrepresentationmadebythemanagement,the Company is generally regular in compliance of the aforesaid laws and the compliance by theCompanyofsuchaviationlawsbeingthesubjectofreviewbyDGCAandotherdesignatedprofessionals/authorities. I have not reviewed the same in this audit.

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

a) Secretarial Standards with regard to Meeting of the Board of Directors (SS-1) and General Meetings(SS-2)issuedbytheInstituteoftheCompanySecretariesofIndia;

b) Chapter V of the Securities Exchange Board of India (Listing Obligations and DisclosureRequirements)Regulations,2015.

The Company has issued five series of Debentures and the same are listed with the BSE Ltd. and the National Stock Exchange of India Ltd. I report that the Company has complied with the applicable regulations under SEBI (LODR) Regulations, 2015 except there was a marginal delay in compliance with the provisions of Regulations 50(1) and 60(2) of SEBI (LODR) Regulations, 2015.

c) GuidelineonCorporateGovernanceforCentralPublicSectorEnterprises,2010asissuedbytheMinistryofHeavyIndustriesandPublicEnterprises,GovernmentofIndia.

I report the following observations based on the aforesaid Guidelines on Corporate Governance:

(i) As per Clause 4.1.1 of the DPE Guidelines, the Audit Committee shall have minimum three Directors as members and two-thirds of the members of Audit Committee shall be Independent Directors. It is observed that the composition of the Audit Committee was not as per the Clause 4.1.1 and 4.1.2. Meetings of the Audit Committee were held without the presence of Independent Directors;

(ii) Further, as per Clause 4.4. Of the DPE Guidelines, the Audit Committee is required to meet four times in a year and not more than four months should elapse between the two meetings. It is observed that the first meeting of the Audit Committee in the financial year under review was held on 06/10/2020; thereby leading a gap of more than six months from the beginning of the financial year.

(iii) Risk management as envisaged in Clause 3.6 is required to be strengthen.

I furtherreportthatasstatedinClause3.3.3oftheDEPguidelines,periodicalreviewofcompliancereportofalllawsapplicabletotheCompanyisbeingdonebytheBoardeffectivefrom1stJanuary,2021.

Ireportthatduringtheyearunderreview,theCompanyhascompliedwiththeprovisionsoftheAct,Rules, Regulations, Guidelines and Standardsmentioned above subject to the observationsmadethereunder.

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I further report that –

• TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the year under review were carried out in compliance with the provisions of the Act.

• AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailedproposalonagendaweresentinadvancedulycomplyingwiththetimelimitsspecifiedandasystemexitsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandfor meaningful participation at the meeting.

• Aspertheminutesofthemeetingdulyrecordedandsignedbythechairman,thedecisionsoftheBoardwere unanimous.

I furtherreportthatbasedontheinformationprovidedbytheCompany, inmyopinionadequatesystemsand processes and control mechanism exists commensurate with the size and operation of the Company to monitorandensurecompliancewithapplicablegenerallaws,rules,regulationsandguidelines.

IfurtherreportthatthecompliancebytheCompanyofapplicablefinanciallawslikedirectandindirecttaxlawshasnotbeenreviewedinthisauditsincethesamehasbeensubjecttoreviewbystatutoryfinancialaudit and other designated professionals.

I further report thatduring theauditperiod, therewasnootherspecificevent/action inpursuanceof theabovereferredlaws,rules,regulations,standards,guidelines,etc.referredtoabove,havingmajorbearingontheCompany’saffairsexceptissueof10,000EquitySharesofRs.10/-eachforcashpartoPresidentofIndiaonrightsissuebasis.

Sd/-(U.C. SHUKLA)

UDIN: F002727C001477508COMPANYSECRETARY

Place:Mumbai FCS:2727/CP:1654Date:18.11.2021

Note:Thisreportistobereadwithmyletterofevendatewhichisannexedas‘ANNEXUREA’andformsanintegral part of this report.

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ANNEXURE A

To,TheMembersAirIndiaLimitedAirlinesHouse,113,GurudwaraRakabganjRoadNew Delhi 110 001

Myreportofevendateistobereadwiththisletter.

1. Maintenance of secretarial record is the responsibility of the management of the Corporation. Myresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonmyaudit.

2. Ihavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theverificationwasdoneonthetestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords. Ibelievethattheprocessandpractices,Ifollowed,providereasonablebasisformyopinion.

3. Ihavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandbooksofaccountsofthe Corporation.

4. Whereverrequired,Ihaveobtainedthemanagementrepresentationaboutthecomplianceofthelaws,rules and regulations and happening of events etc.

5. Thecomplianceoftheprovisionsofcorporateandotherapplicablelaws,rules,regulationsandstandardsistheresponsibilityofthemanagement.Myexaminationwaslimitedtotheverificationofprocedureontestbasis.

6. ThesecretarialauditreportisneitheranassuranceastofutureviabilityoftheCorporationnoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCorporation.

Sd/-(U.C. SHUKLA)

COMPANY SECRETARY UDIN: F002727C001488123

FCS: 2727/CP: 1654

Place:MumbaiDate:

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CORPORATE GOVERNANCE REPORT

TheMembersofAir-IndiaLimited

IhaveexaminedthecomplianceoftheconditionsofCorporateGovernancebyAir-IndiaLimited,asstipulatedinGuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises,2010issuedbytheMinistryofHeavyIndustriesandPublicEnterprises,DepartmentofPublicEnterprises,GovernmentofIndia,forthefinancialyearended31stMarch,2021.

TheComplianceofconditionsofCorporateGovernanceasstipulatedintheGuidelinesistheresponsibilityofmanagement.MyexaminationwaslimitedtotheproceduresandimplementationthereofadoptedbytheCompany for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit noranexpressionofopiniononfinancialstatementsoftheCompany.

In my opinion and to the best of my information and according to the explanation given to me by themanagement,IherebycertifythattheCompanyhascompliedwiththeconditionsoftheCorporateGovernanceasstipulatedintheGuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises,2010issuedbytheMinistryofHeavyIndustriesandPublicEnterprisesasaforesaidwiththeexceptionof–

a) AsperClause4.1.1oftheDPEGuidelines,theAuditCommitteeshallhaveminimumthreeDirectorsasmembersandtwo-thirdsofthemembersofAuditCommitteeshallbeIndependentDirectors.It isobserved that the composition of theAudit Committeewas not as per theClause 4.1.1 and 4.1.2.MeetingsoftheAuditCommitteewereheldwithoutthepresenceofIndependentDirectors;

b) Further,asperClause4.4.oftheDPEGuidelines,theAuditCommitteeisrequiredtomeetfourtimesinayearandnotmorethanfourmonthsshouldelapsebetweenthetwomeetings.ItisobservedthatthefirstmeetingoftheAuditCommitteeinthefinancialyearunderreviewwasheldon06/10/2020;therebyleadingagapofmorethansixmonthsfromthebeginningofthefinancialyear.

c) RiskmanagementasenvisagedinClause3.6isrequiredtobestrengthen.

IfurtherreportthatasstatedinClause3.3.3oftheDEPguidelines,periodicalreviewofcompliancereportofalllawsapplicabletotheCompanyisbeingdonebytheBoardeffectivefrom1stJanuary,2021.

IfurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

Sd/-(U.C. SHUKLA)

COMPANY SECRETARY UDIN: F002727C001488123

FCS: 2727/CP: 1654

MumbaiDate:19.11.2021

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MANAGEMENT'S REPLY ON THE OBSERVATIONS CONTAINED IN THE SECRETARIAL AUDIT REPORT

(I) The Companies Act, 2013 (the Act) and the rules made thereunder

a) DebentureReserveasrequiredunderSection71(4)oftheCompaniesAct,2013andrulesmadethereunderisnotcreatedinabsenceofprofit.

b) The Audit Committee was not properly constituted as required Section 177(2) of the Companies Act,2013.

c) Audit Committee comprises of 4 directors out of which only 2 are independent and chairman is also not ID.

d) No meeting of the Audit Committee was held during the 1stApril,2020to5thOctober,2020.

e) None of the Independent Directors was present in three out of the four meetings of the Audit Committee.

Management's Comments

(a) DebentureRedemptionReserve,asrequiredunderSection71(4)oftheCompaniesAct,2013,hasnotbeencreatedinviewoftheabsenceofanyprofitearnedbytheCompany.

(b) TheappointmentofDirectorsontheBoardof theCompany isdonebythePresidentof India.Accordingly, theAuditCommitteewasconstitutedwith themembersavailableduring theyear2020-21.

(c) Dr.Syed Zafar Islam & Dr.R.K.Tyagi, Independent Directors were Chairman and Member,respectively, in the Audit Committee. On completion of their tenure on 31st May 2020, ShriK.M.BirlaandSmt.D.Purandeswari, IndependentDirectorswereappointedasmembersof theAuditCommittee.But due to preoccupation ofwork, both of themexpressed their inability toassumethepostofChairman,AuditCommittee.

(d) AnAuditCommitteemeetingwasscheduledtobeheldon30thMarch2020butcouldnotbeheldduetolockdownsituationannouncedbytheGovernment.TheMinistryofCorporateAffairshadgivenrelaxationforholdingBoard/CommitteeMeetingstill30September2021.However,therewasasmalldelayoffivedayssincetheCommitteehadtobereconstituted.

(e) Duetobusyscheduleintheirwork,IndependentDirectorswerenotabletoattendthemeetings.

(II) Compliance with SEBI (LODR) Regulations, 2015

TheCompanyhas issuedfiveseriesofDebenturesand thesameare listedwith theBSELtd.andtheNationalStockExchangeofIndiaLtd.IreportthattheCompanyhascompliedwiththeapplicableregulationsunderSEBI(LODR)Regulations,2015excepttherewasamarginaldelayincomplianceof the provisions of Regulations 50(1) and 60(2) of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015.

Management's Comments

Noted.

Duetopandemicsituationtherewassomedelayincoordinationandcompilingtheinformation.However,nopenaltieswerepayable.Alleffortsarebeingmade tocomplywithall theregulationsunderSEBI(LODR)Regulations,2015withintheprescribedtimelines.

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(III) Guidelines on Corporate Governance

i. As per Clause 4.1.1 of the DPEGuidelines, theAudit Committee shall haveminimum threeDirectorsasmembersandtwo-thirdsofthemembersofAuditCommitteeshallbeIndependentDirectors.ItisobservedthatthecompositionoftheAuditCommitteewasnotaspertheClause4.1.1 and 4.1.2. Meetings of the Audit Committee were held without the presence of Independent Directors;

ii. Further,asperClause4.4.oftheDPEGuidelines,theAuditCommitteeisrequiredtomeetfourtimes inayearandnotmorethanfourmonthsshouldelapsebetweenthetwomeetings. It isobservedthatthefirstmeetingoftheAuditCommitteeinthefinancialyearunderreviewwasheldon06/10/2020;therebyleadingagapofmorethansixmonthsfromthebeginningofthefinancialyear.

iii. RiskmanagementasenvisagedinClause3.6isrequiredtobestrengthened.

Management's Comments

i. TheappointmentofDirectorsontheBoardof theCompany isdonebythePresidentof India.Dr. Syed Zafar Islam & Dr. R.K.Tyagi, Independent Directors were Chairman and Member,respectively, in the Audit Committee. On completion of their tenure on 31st May 2020, ShriK.M.BirlaandSmt.D.Purandeswari,IndependentDirectorswereappointedasmembersoftheAuditCommittee.Butduetopreoccupationofwork,bothofthemexpressedtheirinabilitytoassumethepostofChairman,AuditCommittee.

ii. AnAuditCommitteemeetingwasscheduledtobeheldon30thMarch2020butcouldnotbeheldduetolockdownsituationannouncedbytheGovernment.TheMinistryofCorporateAffairshadgivenrelaxationforholdingBoard/CommitteeMeetingstill30September2021.However,therewasasmalldelayoffivedayssincetheCommitteehadtobereconstituted.

iii. Noted for compliance.

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