S.R. ASSOCIATES LLP Chartered Accountants City, · 2015. 6. 26. · S.R. & ASSOCIATES LLP Chartered Accountants Oval office, 8, iLabs Hitech City, Madhapur, Hyderabad - 500 081 INDEPENDENT

S.R. & ASSOCIATES LLP Chartered Accountants Oval office, 8, iLabs

Hitech City, Madhapur, Hyderabad - 500 081

INDEPENDENT AUDITOR'S REPORT

To the Members of GMR Hyderabad International Airport Limited

Report on the Financial Statements

&

Chartered Accountants Khivraj

Kasturba Road, - 560 001

We have audited the accompanying standalone financial statements of GMR Hyderabad International Airport Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. ·

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves perfo:i;ming procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the fi.'1.ancial statements, whether due to fraud or .error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedur · appropriate in the c· , but not for the

:/:.'¥:-, 0 "t' 0 a:: .

,a:i

purpose of an in financial control effectiveness such controls. An audit also includes evaluating the appropriateness of policies used and the

of the estimates made as well as

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

As more in the Note 45 to the financial statements, as at March the has investment amounting to Rs. 1,411,500,062 made in a wholly owned subsidiary Company GMR Aerospace Engineering Limited (formerly known as MAS GMR Aerospace Engineering Company Limited). The subsidiary has significant receivables from its wholly owned subsidiary whose accumulated losses have fully eroded its net worth as at March 31, 2015. Based on the reasons fully explained in the aforesaid note, the Management is of the view that there is no provision for diminution in the value of such investment required at this juncture. However, in our opillion, since the Company acquired the equity held by the other shareholder for USD 1, it should have made a provision for diminution in value of aforesaid investment as required by relevant Accounting Standards. Had the Company accounted for such a provision against the investment, loss before tax for the year would have been higher by Rs. 1,411,500,062 with a consequential impact on the carryillg values of such investment.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally acce\)ted in India, of the state of affairs of L.'1e Company as at March 31, 2015, its loss and its cash flows for the year ended on that date.

Emphasis of Matter

a. With regard to Note 46 to the financial statements, the Company has accrued Rs. 18,989,329 towards the remuneration to its Managing director, which includes Rs. 10,473,439 in excess of the limits specified in Sub Section (3) of Section 197 read with Schedule V of the Companies Act, 2013. The approval in respect of the aforesaid matter is awaited from the Central Government. The ultimate outcome of the matter cannot be presently determined. Pendillg the final outcome, no adjustments have been made in this regard in the fillancial statements.

b. We draw attention to paragraph (ix) of Note 42 to the fi.n.ancial statements regarding the costs related to residential quarters for Central Industrial Security Force (CISF) deployed at the Rajiv Gandhi International Airport, Hyderabad and other costs which continue to be adjusted against PSF (SC) fund pending the fillal instructions from L.'1e MoCA and final decision from the Honourable High Court at Hyderabad for the State of Telangana and for the State of Andhra Pradesh.

Our opinion is not qualified ill respect of the aforesaid matters.

As the 2015 issued the Cenlrnl Government of India in terms of sub-section of section 143 of the we give iTl the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) Except for effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

( d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) The matters described in the Basis for Qualified Opinion paragraph and note (b) under the Emphasis of Matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;

(f) On the basis of written representations received from the directors as on March 31, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013;

(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above;

in accordance with Rule to the best of our

i. The has disclosed the of on its financial position in its standalone financial statements - Refer Note 42(A), 42 and 48 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For S.R. BATLIBOI & ASSOCIATES LLP I Firm registration number: 101049W

har\ered Accountants

p~er Sunil Partner Membership No.: 035141

Place: Hyderabad Date: May 5, 2015

For Brahmayya & Co., ICAI Firm registration number: 0005155 Chartered Accountants

per G. Srinivas Partner Membership No.: 086761


Re:GMR

The has maintained proper records details and situation of fixed assets.

Fixed assets have been physically verified by the Management during the year and material

discrepancies identified on such verification have been properly dealt with in the books of

account.

(ii) (a) The Management has conducted physical verification of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to foe size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) According to fue information 11nd explanations given to us, the Company has not granted any

loans, secured or unsecured to companies, firms or other parties covered in fue register

maintained under section 189 of fue Companies Act, 2013. Accordingly, the provisions of

clause 3(iii)(a) and (b) of the Order are not applicable to fue Company and hence not

commented upon.

(iv) In our opinion and according to the information and explanations given to us, considering

that certain items purchased are of special nature for which comparative quotations are not

available, there is an adequate internal control system commensurate with the size of fue

Company and the nature of its business, for the purchase of inventory and fixed assets and

for the sale of services, except fuat, there have been delays in case of renewal of certain

revenue contracts wifu concessionaires. The activities of fue Company do not involve sale of

During the course of our we have not observed any weakness or

continuing failure to correct any major weakness in th.e internal control system of the

Company; in respect of fuese areas.

(v) The Company has not accepted any deposits from fue public.

(vi) We have broadly reviewed fue books of account maintained by fue Company pursuant to fue

rules made by t..1-ie Central Government for fue maintenance of cost records under section

148(1) of the Companies Act, 2013, related to aeronautical services, and services related to

supplying of fuel at the airport, and are of fue opinion fuat prima fade, the specified accounts

and records have been made and maintained. We have not, however, made a detailed

examination of the same.

(vii) (a) Undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealfu-tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues have generally been regularly deposited with fue appropriate aufuorities.

dues of service tax, sales tax,

excise value added tax, cess and other material dues which at the year for a of more than six months from the date

ar2 as foHows:

Name of the statute

Andhra Pradesh 1 Municipalities / Act, 1965

roperty tax

Amount of dues (Rs)

47,236,479*

*The amount includes penal interest of Rs. 12,503,774.

Period to which the amount

relates

April 2013 to 2014

(c) According to the records of the Company, the dues outstanding of income-tax, sales tax, wealth-tax, service tax, customs duty, excise duty, value added tax and cess on account of any dis ute, are as follows:

Name of the statute Nature of dues

Customs, Central eversal of Cenvat

Excise and Service Credit including 1 I Tax · enalty

. I Customs, Central enalty equivalent to I Excise and Service ·ervice tax on User

Tax fevelopment Fee

Building and Other l Construction

. If , ess on Building Workers' We are ·

Cess Act, 1996. I l

------~------+----

Custon1s,

Excise and

Tax

Customs,

Excise and

Tax

Customs,

Excise and

Tax

i Central Non- payment of

Service ervice tax on import

ron-payment of

tax for

Central upply of water and

Service lectricity to

Central

Service

f.oncessionaires and

i_rregular availrnent fCENVAT

rregular availment f CENV AT credit

pn Chartering of I ircrafts and IDBI

Amount of dues

(including

penalty) (Rs)

556,533,347*

74,300,000

252,026,054

31,982,471**

12,363,952***

Period to which the

amount relates

Various

dates

April 2008

to December

2008

Various

dates

Various

dates

October

2008 to June

2010

October

2011 to

March 2013

Forum where dispute is pending

Customs Excise &

Service Tax Appellate

Tribunal, Hyderabad

The Commissioner of

Customs, Central

Excise & Service Tax,

Hyderabad

High Court at

Hyderabad for the

State of Telangana and

for the State of Andhra

Commissioner of

Customs, Central

Excise & Service Tax,

Hyderabad

Customs Excise &


Tribunal, Hyderabad

Customs Excise &


Tribunal, Hyderabad

* Amount includes of The has Rs. under

** The amount fodudes of Rs. 16,662,816. The has

*** The amount includes of Rs. 6,181,976.

(d) There were no amounts which were required to be fransferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1of1956) and rules made thereunder.

(viii) Without considering the effects of the matter stated in the Basis for Qualified Opinion

paragraph of our auditors' report, the Company's accumulated losses at the end of the

fit"'1ancial year are less than fifty per cent of its net worth. The Company has not incurred cash

loss in the current and immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given by the

Management, we are of the opinion that the Company has not defaulted in repayment of

dues to a financial institution or banks. The Company did not have any outstanding dues in

respect of debenture holders during the year.

(x) According to the information and explanations given to us, the Company has given

guarantee for loans taken by others from banks, the terms and conditions in our

opinion, are not prima-facie prejudicial to the interest of the Company. According to the

information and explarrntions given to us, the Company has not given any guarantee for

loans taken by others from financial institutions.

(xi) Based on the information and explanations given to us by the Management, term loans were

applied for the purpose for which the loans were obtained.

(xii) Based upon the audit procedures performed for the purpose of reporting tJ1e true and fall:

view financial statements and as information the

Management, we report that no fraud on or

during the year.

For S.R. BATLIBOI & ASSOCIATES LLP IC~l.pirm registration number: 101049W

rar:fred Accountants

~L ., .?""~ '_ -:-'~~, ~-·~}-.<Gi~.,.-

per Sunil Bhumralkar Partner Membership No.: 035141


For Brahmayya & Co., ICAI Firm registration number: 0005155 Chartered Accountants

per G. "'"''""""c Partner Membership No.: 086761

Place: Hyderabad Date: May 5, 2~~::::::.-.....

GMR Hyderabad International Airport Limited CIN: U62100TG2002PLC040118

Balance sheet as at March 31, 2015

I. Equity and liabilities

1. Shareholders' funds (a) Share capital (b) Reserves and surplus

2. Non-current liabilities (a) Long-term borrowings (b) Trade payables (c) Deferred tax liabilities (net) (d) Other long-term liabilities

3. Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions

TOTAL

II. Assets 1. Non-current assets

(a) Fixed assets (i} Tangible assets (ii) Intangible assets

(iii) Capital work-in-progress (b) Non-current investments (c) Loans and advances (d) Other non-current assets

2. Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and bank balances (e) Loans and advances (f) Other current assets

TOTAL

Summary of significant accounting policies

The accompanymg notes are an mtegral part of the fmancial statements.

As per our report of even date

Notes March 31, 2015

3 3,780,000,000 4 (619,838,360)

3,160,161,640

5 20,226,345,064 8

14 -6 2,200,768,947

22,427,114,011

7 337,045 8 450 ,054,619 9 1,085,284,762 10 52,958,261

1,588,634,687 27,175,910,338

11 19,070,561,058 12 11,024,710

59,921,653 13 2,681,959,102 15 3,506,679,144

16.2 -25,330,145,667

17 440,028,753 18 121,826,672

16.1 769,616,127 19 236,264,547 15 193,817,825

16.2 84,210,747 1,845,764,671

27,175,910,338

2.1

(Amount in Rupees)

March 31 2014

3,780,000,000 1,255,714,382 5,035,714,382

19,778,159,814 29,409,608 92,586,879

2,032,236,975 21,932,393,276

676,710,160 548,212,595

2,461, 151,842 37,903,135

3,723,977,732 30,692,085,390

20,748,838,671 18,092,055

134, 197,870 1,819,459,040 3,395,667,681

118,158,092 26,234,413,409

993,063,344 132,850,523

1,757,738,655 259,821,267

1,247, 135,485 67,062,707

4,457,671,981 30,692,085,390

For S.R. BATLIBOI & ASSOCIATES LLP ICAI Firm registration

For Brahmayya & Co., !CAI Firm registration number: 0005155 Chartered Accountants

For and on behalf of the Board of Directors of GMR Hyderabad International Airport Limited

number: 101049W C Accountants

Partner Membership No.: 035141


per G. Srinivas Srinivas Bommidala


RSSLN Bhaskarudu


Statement of profit and loss for the year ended March 31, 2015

Notes For the year ended

March 31, 2015

Income (a) Revenue from operations 20 4,171,131,784 (b) Ot.'ier income 21 261,153,488

Total revenue (i) 4,432,285,272

Expenses (a) Concession fee 177,242,397 (b) Employee benefits expense 22 603,386,764 (c) Other expenses 23 1,599,410,556

Total expenses (ii) 2,380,039,717

Earnings before interest, tax, depreciation and amortization 2,052,245,555 (EBITDA) [(i) - (ii)J

Depreciation and amortization expenses 24 2,052,550,123 Finance costs 25 1, 967,835,053 (Loss)/ profit before prior period adjustment (iii) (1,968,139,621)

Less: Prior period adjustment on accounting of revenue grant 26 -from Government of India (iv)

(Loss)/ profit before tax [(iii) -(iv)J (1,968,139,621)

Tax expenses (a) Current tax - Minimum alternate tax -

Less: Minimum alternate tax credit entitlement -(b) Deferred tax (92,586,879) ( c) Taxes of earlier years (4,607,164)

Less: Minimum alternate tax credit entitlement of earlier years 4,607,164 Total tax expense (92,586,879)

(Loss)/ profit for the year (1,875,552,742)

Earnings per equity share [nominal value of share Rs. 10 (March 31, 2014: Rs. 10)1

Basic and diluted 27 (4.96) Summary of significant accounting policies 2.1

The accompanying notes are an integral part of the financial statements.


(Amount Rupees)

For the year ended March 31, 2014

7,252,533,521 434,052,349

7,686,585,870

301,776,946 594,509,554

2,436,482,580 3,332,769,080

4,353,816,790

1,327,718,498 2,084, 139,325

941,958,967

(57,475,891)

999,434,858

360,432,691 (360,432,691) 398,544,976

--

398,544,976

600,889,882

1.59

For S.R. BATLIBOI & ASSOCIATES LLP !CAI Firm registration



number:101049\tV rtered Accountants



per G. Srinivas Part.'ler Membership No.: 086761

Srinivas Bommidala Managing Director

00061464


RSSLN Bhaskarudu

MMohanRao Chief Financial Officer


Cash flow statement for the year ended March 31, 2015

I. Cash flow from operating activities (Loss) /profit before tax

to reconcile before tax to net cash flows Depreciation and amortization expenses Prior period on account of revenue grant from Government India Non cash expenses accounted on account of revenue grant from Government. of India Unrealized foreign exchange / loss Provisions no longer required, written back Provision for bad and doubtful debts Provision for doubtful advances Provision for '~-~''-·Bad debts written off Fixed assets written off Profit on sale of current investments (other than trade) Interest income Dividend income Profit on sale of fixed assets Loss on sale of investment in shares Interest expense

Operating profit before working capital changes Movements in working capital : (Decrease) /increase in trade payables Increase in other long term liabilities Increase in other current liabilities Increase in short-term provisions Decrease/ (increase) in trade receivables Decrease in inventories Decrease/ (increase) in loans and advances Increase in other current assets Cash generated from operations Direct taxes paid (net of refunds)

Net cash flow from operating activities (I)

II. Cash flows from investing activities Purchase of fixed assets, including CWIP and capital advances Proceeds from sale of fixed assets Purchase of non-current investments Purchase of current investments Proceeds from sale/maturity of current investments Proceeds from/ (investments) in maturity of margin money deposits (net) Loan to subsidiaries Refund of unsecured loan from subsidiaries Refund of loan from group companies Invested as share application money in subsidiary/ Joint venture Dividend received Income from investments received Interest received Net cash flow used in investing activities (II)

March 31, 2015

2,052,550,123

(243,047) (7,498,543)

39,099,049

10,284,199 (61,421,842)

(119,644,396) (52,036,818)

(352,687)

1,897,039,823 1,789,636,240

(119,825,995) 168,531,972

8,656,916 15,055,126

988,122,528 11,023,851

123,417,757 (17,249,497)

2, 967,368,898 (138,293,014)

2,829,075,884

(408,483,917) 634,869

(319,000,062) (9,314,600,000) 9,659,035,543

118,158,092 (100,300,000)

1,000,000,000 (17,000,000) 52,042,424 61,421,842

119,740,247 851,649,038

999,434,858

1,327,718,498 (57,475,891)

3,000,656 412,018

(48,126,523) 1,716,203 3,079,432

747,461,358 123,283,282

(63,738,441) (241,163,153) (41,638,424)

(141) 14,695,000

2,056,076,034 4,824,734,766

62,254,138 267,060, 107

19,865,355 3,185,909

(293,876,910) 6,940,126

(81,675,620) (15,910,181)

4,792,577,690 (451,824,201)

4,340,753,489

(755,670,588) 345,067

(230,945,511) (10,102,400,000)

9,645,442,395 (105,334,718) (113,000,000)

12,500,000

(374,000,000) 41,638,424 63,738,441

241,737,021 (1,675,949,469)


Cash flow statement for the year ended March 31, 2015

III. Cash flows from financing activities l\.e•Dmrmenr of (Repayment) / proceeds from short term hnrr'''w1n (net) Interest Net cash flow used in financing activities (HI)

Net decrease in cash and cash equivalents (I+ II+ III) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

IV. Components of cash and cash equivalents Cashon hand With banks- on current accounts

- Deposits with original maturity of less than three months Total cash and cash equivalents (note 19)


Note:

March 31, 2015

(3, 704,281,642)

(23,556, 720) I 259,821,267 236,264,547

405,011 30,827,387

205,032,149 236,264,547

(Amount

March 31, 2014

(1,386,672,851) 246,418,508

(2,017,499, 167) (3,157,753,510)

(492,949,490) 752,770,757 259,821,267

3,982,433 155,838,834 100,000,000 259,821,267

1. During the year, the Company has written back liabilities amounting to Rs. 53,380,863 (March 31, 2014: Rs. 63,892,896) and credited to fixed assets. The said transaction is considered as a non-cash transaction for the purpose of cash flow statement.

2. During the year, the Company has dassified its investment in its subsidiary Hyderabad Duty Free Retail Limited as non-current investment from current investment. Accordingly, the said transaction is considered as a non-cash transaction for the purpose of cash flow statement.

Summary of significant accounting policies



For S.R. BATLIBOI & ASSOCIATES LLP ICAI Firm registration number: 101049W




per G. Srinivas Partner Membership No.: 086761

2.1

For and on behalf of the Board of Directors of

GMR Hyderabad International Airport Limited

Srinivas Bommidala Managing Director DIN: 00061464

Date: May 5, 2015

RSSLN Bhaskarudu Director DIN: 00058527

MMohanRao Chief Financial Officer

4

GMR Hyderabad International Airport Limited Notes to the financial statements for the year ended March 31, 2015

Share capital

Authorized shares (No.) 400,000,000 (March 31, 2014: 400,000,000) shart>s of Rs.

Issued, subscribed and fully paid-up shares (No.) 378,000,000 31, 2014: 378,000,000) shart>S of Rs.! 0 each up

Total issued, subscribed and fully paid-up share capital

(a) Reconciliation of the shares outstanding at the beginning and at !he end of the reporting year

March 31, 2015

No. Rs. Equity Shares

At the beginning the year 378,000,000 3,780,000,000 Outstanding at the end of the year 378,000,000 3,780,000,000

(b) Terms/ rights attached to equity shares

(A mom1 tin Rupees)

March 31, 2015 March 31, 2014

4,000,000,000 4,000,000,000

3,780,000,000 3,780.000,000

3,780,000,000 3,780,000,000

March 31, 2014

No. Rs.

378,000,000 3,780,000,000 378,000,000 3,780,000,000

The Company has only one ciass of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per shdre.

In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution wiJ! be in proportion to the number of equity shares held by the shareholders.

Further, aH the sharehciders will have their representative Board of Directors of the Company as per th<' terms of the agreement

(c) Shares held by holding/ ultimate holding company

Out of equity shares issued by the Company, shares held by ies ho!ding company and ultimate holding company are as below.

March 31, 2015 March 31, 2014

GMR Airports Limited, holding compan} 238, 139,000 (March 31, 2014: 238, 139,000) Equitv shares of Rs. 10 ench fully paid~up 2,381,390,000 2,381,390,000

GMR Infrastructure Limited, ultimate holding company 1,000 (March 31, 2014: 1,000) Equity shares of Rs. 10 edch fullv p<lid-up I0,000 10,000

{d) Details of shareholders holding more than 5% shares in the Company

March 31, 2015 March 31, 2014

No. % holding No. % holding Equity shares of Rs. 10 each fully paid

GMR Airports Limited, holding company 238, 139,000 63.00% 238, 139,000 63.00% Airports Authority of India 49,140,000 13.00% 49,140,000 13.00% Government of And hra Pradesh 49,140,000 13.00% Government ofTelangana 49,140,000 13.00% -MAHB (Mauritius) Private Limited 41,573,540 11.00% 41,573,540 11.00%

As per records of the Company, including its register of shareholders/ members, the above shareholding represent both legal and beneficial ownership of shares.

Reserves and surplus (A 111ou11 t iu Rupees)

March 31, 2015 March 31, 2014

a) Capital reserve 1,070,000,000 1,070,000,000

Qosing Balance 1,070,000,000 1,070,000,000

b) (Deficit)/ surplus in the statement of profit and loss Balance as per last financial statements 185,714,382 (415,175,500) Add: (Loss)/ profit for the vear (1,875,552,742) 600,889,882

Net (deficit)/ surplus in the statement of profit and loss (1,689,838,360) 185,714,382

Total reserves and surplus {619,838,360) 1,255,714,382

6


Long-term borrowings

Term loans

Indian rupee Joans from banks (secured)

Indian rupee loans banks (unsecured) Foreign currency loan from a b.rnk (secured)

Indian rupee loa.n from financial institution (sffured) Indian rupee loan from findncial institution Government of Andhra Pradesh (unsecured) Government of Telangana (unS€<"ured) Loans from related parties (un5€cured)

The above amount includes Secured borrowings Unsecured borrowings Amount disclosed under the head "other current [i<1bi!ities" (note 9) Total

Non---current portion

I March 31, 2015 I March 31, 2014

3,760,840,000

1,987,250,000

5,177,226,000 5,509,126,750

4,250,000,000 3,390,9 IS,734 1,526,208,000 3, 150,500,000

3, 150,500,000

305, 916,330 453,316,330

20,226,345,064 19,778,159,814

16,769,928,734 12,660,885,484

3,456,416,330 7, Jl 7,274,330

20,226,345,064 19,778,159,814

(A mount in Rupefs)

Current portion

March 31, 2015 March 31, 2014

435,540,000

231,000,00()

564,387,000 539,873,250

392,700,000 177,408,000

142,800,000 151,696,218

707,187,000 1, 928,217,468

564,387,000 l,368, 113,250

142,800,000 560, 104,218

(707,187,000\ (l ,928,217,468)

i. Indian rupee term loans from banks (secured) carry interest at base rate plus agreed spread, which is subject to reset at the end of agreed intervaL The interest rate during the year was 1 I.20% to 11.40% p.a (2014: l L20% tc 1 l.40% p.a). During the year, the Indian rupee term loans from bdnks (secured) were refinanced with a moratorium period of two years in repayment of loans beginning from September 30, 2014. The loans are now repayable !n 52 quarterly insta!ments beginning from Juty 31, 2016 against the earlier repayment term of over 56 quarterly instalments beginning from July 1, 20'10.

ii. Indian rupee !oans from banks (unsecured) carry inter<.'st at base rate plus ,1greed spread, \Vhich is subject to reset at the end of agre0d interval. The interest rate during the year was 12% p.a. (2014: 11.75% to 12.0:0%). During the year, the Indian rupee term loans from banks (unsecured) were refinanced and converted into term loans from banks (secured).

iii. Foreign currency loan (secured} from a bank carriE>s interest @ LIBOR plus aveed spread, however the Company hild entered into an Interest Rctte Swap (IRS} arrangement to convert floating rate of interest into fixed rate of interest, as per the terms of the lod.n agreement. The effective weighted average Interest rate is 8.295% p.a (2014: 8.295%). The loan is repayable in 56 quarterly instalments beginning from July 01, 2010.

iv. Indian rupee term loans from financial institutions (secured) carry interest at base rate plus agreed spread, \.Vhich is subject to reset at the end of an agreed interval. The interest rate during the year ranges from H.20% to 10.90% p.a. (2ffl4: 10.65% to 1 L65% During the year, the term loans from financial institutions (secured) were refinanced with .a moratorium period of two yC'ars in repctymf'nt of loa.ns beginning September 30, 2014. The loans dre now repayable in 52 quarterly instalments beginning from July 31, 2ffl6 against the e.:1.r!ier repayment term of over 56 quarterly instalments beginning from July 1, 2010.

v. Indian rupee loans from financial institutions (unsecured) carry interest at base rate plus agreed spread, which is subj&:t to reset at the ('nd of agreed interval, The interest rate during the year was 11.65%. (2014: 11.65% }. The loans were repayable in 41 quarterly inst<llments b€ginning from March 31, 2013. During the year, the Indian rupee loans from financial institutions (unsecured) were refinanced and converted into term loans from banks and financial institution (secured).

vi. Indian rupee loans, foreign currency loan the IRS arrangement and loan from financial institution are secured mortgage of leasehold right, titte, interest and benefit in respect of leasehold land (to an extent 2044 acres and 29 guntas) and first pari-passu charge on all movable immovable assets, operating cash flows, book debts, receivables, intangibles and revenues, both present and future, as weH as assignment of all right, title, interest, benefits, claims and demands available under the concession agreement and other project documents, sE'Curity interest in the Trust and Retention account, Debt service reserve account and further secured by pledge of 164,123,514 (2014: 164,123,514) and 28,656,486 (2014: 28,656,486) equity shares, both present and future, held or to be held, Upto 51 % of the paid up share capital of the Company, as the case may be, by both, the holding company and \\11AHB (Mauritius) Private Limited respectively.

vii. Interest free loan received from the Government of Telangana (2014: Government of And hr a Pradesh) is repayable in five equal instalments commencing from 16th anniversary of the commercial operations date (March 23, 2008).

viii. During the previous year, the instalments were due in case of Indian rupee loans from banks and financial institutions on the first day of the quarter_ However, for the purpose of classification of the current maturitie-s, the Comp.;iny had considered the same as payable on the prt"ceding day, based on p<'Jst experience of actual payouts.

Other long-term liabilities (A mount in Rupees)

Non-current portion Current portion

March 31, 2015 March 31, 2014 March 31, 2015 March 31, 2014

Deferred obligation - concession fee payab!C' 1,578,849, 162 1,401,606, 765

Unearned revenue (note 9) 155,673,016 192,587,525 96,084,591 49,304,510

Deposits from concessionaires (note 9) 465,643,143 433,826,558 119,161,228 152,853,635

Retention money - Non trade (note 9) 603,626 4,216, 127 69,123,748 95,9"14,409

Total 2,200,768, 947 2,032,236,975 284,369 ,567 298,072,554

Concession fee is payable to Ministry of Civil Aviation in respect of first 10 years in 20 equal ha!f yearly instalments commencing from the ·11th anniversary of the commercial operations date (March 23, 2008). Concession fee from the I l th year is payable on a half yeariy basis,

7

IO

Short~term borrowings

Cash

The above dmount indudes Secured ,,. .. ,.,,,-.,,.,

GMR Hyderabad International Airport Limited Notes to the financial statements for the vear ended March 31, 2015

(unsecured)

(Amount iu Rupees)

March 31, 2015 March 31, 2014

337,045 I

337,045

337,045

476,7!0, 160 200 ,000 ,000 676,710,160

476,7!0,'160 200,000,000

i. Cash credit from bank is ~ecured Wd:Y of first pctri-passu charg(' on all movable and immovable assets, operating cash flows, book deb-ts, receivables, intangibles and revenues, both present and future and Sffond rdnking charges by of mortg(1g:e of leasehold right title, interest and benefit in respect of leasehold land (to an extent of2044 acres and 29 guntas) but not !imited to documents of title to goods The cash credit is repaydble on demand and carries interest 12.75% p.a (2014: 12.50%

ii. Short term loan from relatE'd parties (unsecured} carries interest at 12% p.a (2014: 12% p.a.). This loan was re-paid during the year.

Trade payables (Amount in Rupees)

Non-current Current March 31, 2015 I March 31, 2014 March 31, 2015 I March 31, 2014

Trade payables (Refer note 32) I 29,409,608 450,054,619 I 548,212,595

I 29,409,608 450,054,619 I 548,212,595

Other current liabilities (Amount in Rupees)

March 31, 2015 March 31, 2014 Current maturities of long-term borrowings (note 5) 707, 187,000 1,928,217,468 Interest accrued but not due on borrowings 2,865,567 115,123,948 Capita! creditors 53,159,241 77,603,727 Non trade payables

Retention money (note 6) 69,123,748 95,9"!4,409 Others 2,251, !23 2,731,037

Unearned revenue (note 6} 96,084,591 49,304,510 Deposits from concessionaires (note 6) I 19,161,228 152,853,635 Service tax 440,031 301,694 T,1x deducted at source 30,557,514 35,195,736 Other statutory dues 4,454,719 3,905,678

Total 1,085,284,762 2,461,151,842

Provisions (Amou1rt in Rupees)

Short-term

March 31, 2015 March 31, 2014

Provisions for employee benefits Provision for !eave benefits 51,834,252 36,665,936 Provision for su_pe-r annuation fund 1,112,089 1,219,764

52,946,341 37,885,700

Other provisions Provision for wealth tax 11,920 17,435

11,920 17,435

52,958,261 37,903,135

11

GMR Hyderabad International Airport Limited

Notes to the financial statements for the year ended March 31, 2015

Tangible assets (Amount in Rupees) Improvements

Runways and Roads- other Buildings on Electrical Plant and Office Computer

Furniture and to leasehold equipment and Vehicles Total taxiways than RCC leasehold land installations machinery equipment fixtures land IT systems Cost

At April 01, 2013 1,062,192,209 4,204,670,449 1,358,955,787 10,603,380,594 2,171,749,796 5,247,028, 948 306,114,529 1,646,878,245 497, 981,807 98,595,461 27, J 97,547,825 Additions - - - 24,854,163 43,053,281 51,541,413 424,898 25,691,377 13,654,481 - 159,219,613 Disposals* - - - (40,966,140) (106,616) (20,312,705) (235,868) (751,005) (185,833) (l,803,791) (64,361,958) AS-11-Exchange differences - 99,723,302 32,450,197 251, 901,523 51,593,647 124,652,187 7,409,176 38,987,523 11,830,413 618,547,968 At March 31, 2014 1,062,192,209 4,304,393, 751 1,391,405,984 10,839,170,140 2,266,290, 108 5,402,909,843 313,712,735 l,710,806,140 523,280,868 96,791,670 27,910,953,448 Additions** - - - 76,698,007 6,574,633 40,784,899 111,406 48,016,257 9,786,520 2,781,320 184,753,042 Disposals* - - - (263,955) - (4,229,915) (9,190,974) (181,385,835) (25,714,296) (40,753) (220,825,728) AS-11-Exchange differences - 39,499,471 12,827,139 99,576,920 20,819,963 49,635,475 2,882,017 15,716,841 4,807,279 ~~,765,105 At March 31, 2015 1,062,192,209 4,343,893,222 1,404,233,123 11,015,181,112 2,293,684,704 5,489,100,302 307,515,184 1,593,153,403 512,160,371 99,532,237 28,120,645,867

Depreciation

At April 01, 2013 89,083,368 662,671,671 104, 927,471 1,62tJ)l76,164 483,578,950 1,304,446,040 84,087,064 1,295,138,502 171,032,893 44,376,573 5,863,418,696 Adjushnents** - - - 262,043 459,422 11,620 18,531 103,332 854,948 Charge for the year* 17,738,610 144,498,551 23,673,276 357,251,401 108,182,976 278,463,325 14,906,473 308,169,805 36,874,411 8,206,441 1,297, 965,269 Disposals - - - - (116,716) - - (7,420) - (124,136) At March 31, 2014 106,821,978 807,170,222 128,600,747 1,981,327,565 592,023,969 1,583,252,071 99,005,157 1,603,326,838 208,003,216 52,583,014 7,162,114,777

Adjustments** - - - - - - - -Charge for the year* 39,847,996 146,506,920 313,985,311 372, 954,46'.1 398,285,766 423,401,493 211,079,855 44,473,385 74,657,230 19,656,097 2,044,848,516 Disposals - - - (49,271) - (1,142,067) (9,173,437) (129,853,866) (16,639,454) (20,389) (156,878,484) At March 31, 2015 146,669,974 953,677,142 442,586,058 2,354,232,757 990,309,735 2,005,511,497 300,911,575 1,517,946,357 266,020,992 72,218,722 9,050,084,809

Net block -- ,_________ At March 31, 2014 955,370,231 3,497,223,529 1,262,805,237 8,857 ,842,575 1,674,266,139 3,819,657,772 214,707,578 107,479,302 315,277,652 44,208,656 20,748,838,671

-~

At March 31, 2015 915,522,235 3,390,216,080 961,647,065 8,660,948,355 1,303,374,969 3,483,588,805 6,603,609 75,207,046 246,139,379 27,313,515 19,070,561,058

*Includes reversal of outstanding liabilities amounting to Rs.53,380,863 (March 31, 2014: Rs. 63,892,897) pertaining to project construction which are no longer payable and reversal for (fopreciation thereon amounting to Rs. 50,884,598 (March 31, 2014: 11,774,261) under depreciation charge of the year.

**Includes addition of import duty of Rs. Nil (March 2014: 28,844,629) paid through utilisation of Served from India Scheme (SFlS) scrip which was netted off from certain expenses and shown as prior period adjustment on accounting of revenue grant from the Government of India in the statement of profit and loss and provision for depreciation thereon amounting to Rs. Nil (March 31, 2014: 854, 948) pertaining to pn'vious years.

12 Intangible assets

Cost

At April 01, 2013 Additions*

At March 31, 2014

Additions At March 31, 2015

Amortfaation At April 01, 2013 Charge for the year Adjustments* At '.Vlarch 31, 2014

Charge for the year 'At 2015

Net Block At March 31, 2014

A! March 31, 2015

GMR Hyderabad International Airport Limited Notes lo the financial statements for the year ended March 31, 2015

I I

(Amountin Rupees) Computer software Total

I 180,364,960 I !80,364,960

4,031,235 4,031,235 184,396, 195 184,396, 195

634,262 634,262 185.030,457 185,030,457

136,550,327 l 36,550,327 29,753,229 29,753,229

584 584 166,304, 140 166,304, 140

7,?0"i,607 7,701,607 174,005,747 J 74,005,747

18,092,055 18,092,055

11,024,710 11,024,710

'Includes addition of import duty of Rs. Nil (!vlarch 2014: 657,966) paid through utilisation of Served from lndia Scheme (SFIS) scrip which was netted off from certain expenses and shown as prior period adjustment on accounting of revenue grant from the Government of India in the statement of profit and loss and provision for depreciation thereon amounting to Rs. Nil (March 31, 2014: Rs. 584) pertaining to previous years.

13 Non-current investments (Amount in Rupees)

Trade investments (valued at cost unless stated otherwise)

Unquoted equity instruments

Investment in subsidiaries Hydt>rabad Menzies Air Cargo Private Limited

520,200 (March 31, 2014: 520,200) Equity shares of Rs. 10 each fullv paid-up

Hydt>rabad Menzies Air Cargo Private Limited 18,735 (March 31, 2014: 18,735) Preference shares of Rs. 10 eac-h fullv p<lid-up

GMR Hyderabad Aerotropolis Limited

33,630,000 (March 31, 2014: 23,630,000) Equity shares of Rs. 10 each fullv paid-up

G_\.fR Hyderabad Airport Resource :Yfanagernent Limited

50,000 (March 3 l, 20'14: 50,000) Equitv shares of Rs. 10 each fullv paid-up

Hyderabad Airport Security ServicC'S Limited

'12,500,000 (March 31, 2014; 12,500,000) Equitv shares of Rs IO each fuiiv p<lid-up [3,750,000 (March 31, 2014: 3,750,000) Equity shares of Rs. 10 each fully paid up have been pledged with the banks agd:inst the loan taken bv the subsidiary}

GMR Hyderabad Aviation SEZ Limited 49,900,000 (March 31, 2014: 35,000,000) Equitv shares of Rs. 10 each fullv paid-up

GMR Hyderabad Mulliproduct SEZ Limited

50,000 (March 31, 2014: 50,000) Equitv shares of Rs. 10 each fullv paid-up

Hyderdbad Duty Free Retail Limited 16,950,000 (March 31, 2014: Nil) Equitv shares of Rs. 10 each fully paid-up [5,085,000 (March 31, 2014: Nii) Equity shares of Rs. IO each fully paid up have heen pledged with the banks against the loan taken bv the subsidiary]

GMR Airport Handling Services Company Limited 50,000 (March 31, 2014: 50,000) Equitv shares of Rs. 10 each fullv paid-up

GMR Hvderabad Airport Power Distribution Limited 50,000 (March 31, 2014: 50,000) Equitv shares of Rs,10 each fullv paid up

G~.tR Aerospace Engineering Limited (Formerly known as MAS GMR Aerospace Engineering Company Limited)

237,900,000 (March 31, 2014: Nil) Equitv shares of Rs. JO each fullv paid-up [110,619,000 ('.Vlarch 31, 2014: Ni!) Equity shares of Rs. 10 each fully paid up have been pledged with the banks against the loan taken by the subsidiary]

Investment in joint ventures MAS GMR Aerospace Engineering Company Limited

Nil (March 31, 2014: 96,750,000) Equity shares of Rs. 10 each fully paid-up

[Xii (March 31, 2014: 10,010,000) Equity shares of Rs. 10 each fully paid up have heen pledged with the banks against the loan taken by the joint venture company]

Laqshya Hyderabad Airport Media Private Limited 9,800,000 (March 31, 2014: 9,800,000) Equitv shares of Rs. 10 each fully paid up

Asia Pacific Flight Training Academy Limited 3,526,969 (!vlarch 31, 2014: 3,526,969) Equitv shares of Rs. JO each fully p>ia_I-'*,_ Aggr f unquoted investment

March 31, 2015 March 31, 2014

5,202,000 5,202,000

187,350 187,350

336,300,000 236,300,000

500,000 500,000

125,000,000 125,000,000

499,000,000 350,000,000

500,000 500,000

169,500,000

500,000 500,000

500,000 500,000

1,411,500,062

967,500,000

98,000,000 98,000,000

35,269,690 35,269,690


14 Deferred tax liabilities (net)

15

Gross deferred tax liability

Deferred tax asset On account of Unabsorbed depreciation On account of expenditure charged to the stateme-nt of profit and loss but a1!owE'd for tax purposes on payment basis.

On account of provision for doubtful trade receivabk~s, etdvances and diminution in value of investment.

Gross deferred tax asset Net deferred tax (liabilities)

1'ote:

Based on an independent expert's opinion, the aforementioned deferred asset has

Marett 31, 2015

1,916,497,551

1,916,497,551

l,649,] 77, 181

249,430,719

17,889,651

l ,916,497,551

2, 129,277,406

2,129,277,406

1,746,034,730

34,404,594

256,251,203

2,036,690,527

(92,586,879)

originated up to March 31, 2014 and were expected to revE>rse eithe; before commence-ment of the expected tax holiday [..-Wrtod or after the expiry of such tax holiday period.

The Company has recognised deferred tax asset on uria:bsorbed depreciation and carried forwMd losses cts at March Tl, 2015, only to the extent of deferred tax liability on depreciation as at March 31, 2015 as a matter of prudence.

Loans and advances (Amount in Rupees)

Non*current Current March 31, 2015 March 31, 2014 March 31, 2015 March 31, 2014

Capital advances Unsecured, considered good 833,045, 181 533,526,635

(A) 833,045,181 533,526,635 -Security deposit

Unsecured, considered goad 215,532,01! 209,583, 951 200,000 80,860,658 Less: Provision for doubtful deposit (3,079,432) (3,079,432)

(B) 212, 452,579 206,504,519 200,000 80,860,658

Loan and advances to related parties Unsecured, considered good 679,647,938 947,047,938 10,700,000 1,000,000,000

(C) 679,647,938 947,047,938 10,700,000 1,000,000,000

Advances recoverable in cash or kind Unsecured, considered good Passenger service fee (Security component) 800,315,552 863,916,930 . 8,896,758 Others 54,168,548 56,570,485 27,249,219 21,907,650

(D) 854,484,100 920,487,415 27,249,219 30,804,408

Other loans and advances Unsecured, considered good Advance income-tax (net for taxation) 179,690,32! 70,982,212 95,653,826 61,461,757 Minimum a.~. ... .,., ,, Entitlement 665,701,699 670,308,863 Prepaid expenses 81,389,156 39,463,013 34,741,332 50,521,580 Loans to employees 268, 170 973,261 417,296 4,132,979 Balances with statutory I govermnent authorities 6,373,825 24,856, 152 19,354,103

(E) 927,049,346 788,101,174 155,668,606 135,470,419

Total (A+B+C+D+E) 3,506,679,144 3,395,667,681 193,817,825 1,247,135,485

Non-current Current

March 31, 2015 March 31, 2014 March 31, 2015 March 31, 2014

loans and advances to related parties include

Share application money GMR Hyderabad Aerotropolis Limited 100,000,000 GMR Hyderabad Aviation SEZ Limited 17,000,000 70,000,000 GMR A~rospace En8ineering Limited (Formerly known as MAS GMR Aerospace Engineering Company Limited) 204,000,000

Other loans and ddv ances GMR Energy Limited 1,000,000,000 Hyderabad Airport Security Services Limited 66,150,000 66,150,000 GMR Hotels and Resorts Limited 507, 197, 938 406,897, 938 Laqshya Hyderabad Airport Media Privdte Limited 89,300,000 l00,000,flOO 10,700,000

G'.\1R Hyderabad International Airport Limited Notes to the financial statements for the year ended March 31, 2015

16 Trade receivables dnd other assets

16.1 Trade receivables

Non-current

March 31, 2015 March 31, 2014

Unsecured, considered good unless stated othen-vise outstanding for a period I exceeding six months from the date they are due for payment

I Unsecured, considered good Doubtful 3,360,955 3,360,955

3,360,955 3,360,955

Provision for doubtfui trade receivables (3.360,955) (3,360,955)

(A)

Other receivables

Unsecured, considered good

(Bil . . Total (A+B)

16.2 Other assets

1'\on--current

March 31, 2015 March 31, 2014

Unsecured, considered good unless statc·d oth£"rwise Margin money deposits (note19) 118,158,092

(A) 118,158,092

Oihers

Interest accrued on fixed deposits Non trade receivable Unbilled Revenue Grant receivable from authorities Dividend receivable from subsidiary

(B) . Total(A+B) 118,158,092

17 Current investments

Trade investments (valued at lower of cost and fair vaiue, unless stated otherwise}

Unquoted equity instru111wts Investment in subsidiaries

GMR Hotels and Resorts Limited

109,658,916 (March 31, 2014: 109,658,916) Equitv shares of Rs. each fuilv paid-up [At cost less provision for other than temporrtry diminution in value Rs_ 786,560,407 (March 31, 2014 :Rs, 747,461,358)1

Hyderabad Dutv Free Retail Limited

Nil (March 31, 2014: 16,950.000) Equity shares of Rs. IO each paid-up

(Nii (March 31, 2014: 5,085,000) Equitv shares of Rs. J() each paid up have been pledged with the banks a9;ainst the loan taken bv the sulJsi1j1arvl

Unquoted mutual funds

IDBI Liquid Fund - Regular plan Grov. th l\:il units (March 31, 2014: 43,245.023 units) of face value of Rs. 1,000 each

Sundararn Money Fund Regular Growth Nil units (March 31, 2014: l,853,722.24 units) of face vaiue of Rs. 10 each

Birla SunJife Cash Plus InstitutionaJ Premium - Growth 356,924.560 units (March 31, 20H: 532,311.244 units) of face value of Rs. I 00 each

Axis Liquid Institutional -Growth Option Nil units (March 31, 2014: 70,510.766 units) of face voiue of Rs. 1000 each

SBI Premier Liquid Fund Regular Plan - Growth 22,788.5980 units (March 31, 2014: Nil units) of face v,1lue of Rs. 1000 eat'h

TA. TA Liquid Super High Inv. Fund - Appreciation Nil units (March 31, 2014: 65,87!.042 units) of face value of Rs. !0()0 each

(Amount in Rupees)

Current March 31, 2015 March 31, 2014

!

345,473,955 978,537,984

345,473,955 978,537,984 . .

! 345,473,955 978,537,984

424, 142, 172 779,200,6Tl

424,142,172 779 ,200,671

769,616,127 1,757,738,655

(A mount in Rupees)

Current

March 31, 2015 March 31, 2014

718,286 814,137 69,782,739 46,311,380 13,309,722 19,531,584

400.000 400,000 5,606

84,210,747 67,062,707

84,210,747 67,062,707

(Amount in Rupees)

March 31, 2015 March 31, 2014

310.028,753 349,127,802

169,500,000

310,028,753 518,627,802

59,327,233

50,065,145

80,000,000 l 09,300,000

10(),043, 164

50,000,000

155,700,000

130,000.000 474,435,542 (B) 1--------1------i

Aggregate Net asset value of Unquoted mutual funds Aggregate amount of unquoted investments

130,089,925

440,028, =~3

475,239,542

993,063,344

18

19


Inventories (valued at lower of cost or net realizable value-)

Stores, spare parts and consumables Totai

Cash and bank balances Non-current

March 31, 2015 March 31, 2014

Cash and cash equiv alenls

Balances banks:

- On current accounts - Deposits with original maturity of less than three months

Cash on hand

Other bank balances

- Margin deposit* j 18, l 58,092

118,158,092

Amount disclosed under non-current dssets (note 16.2} (118, 158,092)

Total -*The margm money deposits are towart1s letters of credit dnd bank guarantees issued by the banks on behalf of thf' Company.

(Amount iu Rupees)

I March 31, 2015 I March 31, 2014

I 121,826,672 I 132,850,523

I 121,826,672 I 132,850,523

(Amount in Rupees)

Current March 31, 2015 March 31, 2014

30,827,387 l 55,838,834

205,032, 149 100,000,000

405,011 3,982,433 236,264,547 259,821,267

-- -

236,264,547 259,821,267


20 Revenue from operations (A tin Rupees)

For the year ended For the year ended March 31, 2015 March 31, 2014

Income from services Aeronautical 798,376,350 4,234,332,705 Non Aeronautical 3,372,755,434 3,018,200,816

4,171,131,784 7,252,533,521

Revenue from operations 4,171, 7,252,533,521

21 Other income (Amount in Rupees) l'or rne year endeo ror the year enaea

March 31, 2015 March 31, 2014

Interest income on

Bank deposits 24,298,702 5,506,152 Others 79,123,094 154,276,075

Delayed payments from customers 16,222,600 81,380,926

Dividend income on investment in subsidiary 52,036,818 41,638,424

Profit on sale of current investments (other than trade) 61,421,842 63,738,441

Gain on account of foreign exchange fluctuations (net) 2,317,757 3,064,906

Provisions no longer required, written back 7,498,543 48,126,523

Profit on sale of fixed assets (net) 352,687 141 Other non-operating income 17,881,445 36,320,761

261,153,488 434,052,349

22 Employee benefits expense (Amount in Rupees)

tor the year ended For the year ended March 31, 2015 March 31, 2014

Salaries, wages and bonus 486,798,537 436,119,164

Contribution to provident and other fund [Note 31 (a)} 22,129,058 21,171,659

Gratuity expense [Note 31 (b)] 10,878,921 548,121

Contribution to superannuation fund [Note 31 (a)] 14,458,307 14,360,208

Training charges 7,272,571 7,591,324

Staff welfare expenses 61,849,370 114,719,078

603,386,764 594,509,554


23 Other expenses


Operator fee 11,191,563 Operating and maintenance expenses 111,131,706 Electricity and water charges 192,262, 958 Operations-manpower outsourcing charges 170,712,197 House keeping charges 91,718,197 Stores and spare parts consumed 67,310,128

and maintenance

Plant and machinery 126,827,704 Buildings 40,972,629 IT Systems 104,279,194 Other 11,294,701

Insurance 25,254,907 Security charges 76,839,009 Bus hire charges 5,169,290 Health and safety expenses 1,754,735 Rent 8,164,354 Rates and taxes 87,483,188 Advertising and business promotion 28,656,529 Collection charges 1,225,339

Travelling and conveyance 80,836,309

Communication expenses 15,687,922 Office maintenance 24,927,754 Legal and professional fees 47,220,624

Management fees 173,101,120

Printing and stationery 2,525,691 Donations 600,000 CSR expenditure (Refer Note 49) 20,657,495

Community development -

Directors' sitting fees 1,152,000

Payment to auditors

Audit fee 1,800,000 Taxation matters 1,300,000

Other services (including certification fees) 1,867,500

Reimbursement of expenses 503,636 Provision for impairment in value of investments in shares of subsidiary company 39,099,049

Provision for bad and doubtful debts -Provision for doubtful advances -

Bad debts written off -

Loss on sale of investment in shares -Fixed assets written off 10,284,199

Miscellaneous expenses 15,598,929

1,599,410,556

24 Depreciation and amortization expenses

Depreciation of tanNIJ'll\!~;;,;,-p-"'

Amortization of i,,JH,,.f1'>J.-'l~>l'i-l'i!>;;>es


2,044,848,516

7,701,60

2,052,550,

(Amount in Rupees)


10,639,747

109,500,867 206,788,186

159,652,474

83,904,677

66,533,791

119,735,431

42,631,730

106,158,923

12,078,082

28,587,459

74,642,747

5,176,187

1,985,975

6,242,923

97,900,725

28,731,406

11,494,015

79,736,271

15,670,196

26,242,347

55,148,567

138,872,295

2,517,601

20,000,000

-13,797,287

660,000

1,800,000

300,000

1,405,000

310,991

747,461,358

1,716,203

3,079,432

123,283,282

14,695,000

17,401,405 2,436,482,580

(Amount in Rupees)



25 Finance costs (Amoun in Rupees)

For the year ended I For the year ended March 31, 2015 March 31, 2014

Interest on borrowings 1,884,732,526 2,053,290,123 Interest Others 12,307,297 2,785,911

Other borrowing costs 62,748,972 20,163,102

Bank charges 8,046,258 7,900,189

1,967,835,053 2,084,139,325

Prior period adjustment on a.L-.vu1 of revenue grant from (A Rupees)

26 Government of India

For the year ended For the year ended March 31, 2015 March 31, 2014

A. Expenditure related to earning of Government Grant utilised

Operations-manpower outsourcing charges (27,642,690)

House keeping charges (24,386,655)

Repairs and Maintenance

Buildings (4,400,128)

Plant and machinery (19,887,086)

Total (A) - (76,316,559)

B. Government grant utilised and already credited to expenditure in prior periods

Stores and spares consumed 13,644,771 Repairs and Maintenance

Plant and machinery 4,340,366

Total (B) - 17,985,137

C. Depreciation for prior periods on Government grant utilised

Depreciation 855,531

Total (C) - 855,531

Prior period adjustment (net) (A-B-C) - (57,475,891)

(Refer note 39 for details)

For the year ended For the year ended

27 Earning per share (EPS) March 31, 2015 March 31, 2014

Profit after tax (1,875,552,742) 600,889,882 Weighted average number of equity shares of Rs. 10 each outstanding during the year 378,000,000 378,000,000

Earning per share - basic and diluted (Rs.) (4.96) 1.59



1. Corporate information

GMR Hyderabad International Airport Limited ('GHIAL' or 'the Company'), was incorporated on December 17, 2002, for managing the operations of Rajiv Gandhi International Airport at Hyderabad. The Company had entered into a Concession Agreement with Ministry of Civil Aviation, Government of India, which gives the Company an exclusive right of the Development, Construction, Operation and Maintenance on revenue share model for an initial term of 30 years, which can be extended by another 30 years at the option of the Company.

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2.1 Summary of significant accounting policies

a. Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although, these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

i) Revenue from Aeronautical and Non Aeronautical operations are recognized on accrual basis net of service tax and applicable discounts, when services are rendered and it is probable that an economic benefit will be received which can be quantified reliably.

ii) Interest income is accounted on a time proportion basis taking into account the amount outstanding and the rate applicable except the interest income receivable from customers for delayed payments which is accounted only when it is unconditionally accepted by the customers.

iii) Dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

c. Concession fee:

The concession fee is computed as a percentage of gross income of the Company pursuant to the terms and conditions of the Concession Agreement with the Ministry of Civil Aviation, Govemmel}t of~ndia and is recognized as charge to the statement of profit and loss. · · ···· ·

GMR Hyderabad International Airport Limited CIN: U62IOOTG2002PLC040118


d. Tangible fixed assets:

Tangible fixed assets are stated at cost net of Cenvat credit and other drawbacks less accumulated depreciation and impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discount and rebate are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repairs and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the year during which such expenses are incurred.

Assets under installation or under construction as at the balance sheet date are shown as capital work in progress.

The Company adjusts exchange differences arising on translation/ settlement of the long-term foreign currency monetary items pertaining to the acquisition of a depreciable asset to the cost of the asset and depreciates the same over the remaining life of the asset. In accordance with MCA circular dated August 09, 2012, exchange differences adjusted to the cost of fixed assets are total differences, arising on long-term foreign currency monetary items pertaining to the acquisition of a depreciable asset, for the period. In other words, the Company does not differentiate between exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other exchange difference.

Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

e. Depreciation on tangible fixed assets:

Depreciation on tangible fixed assets is calculated on a straight-line basis using the rates arrived at, based on useful lives estimated by the Management, which coincide with the lives prescribed under Schedule II to the Companies Act, 2013. The Company has used the following useful lives to provide depreciation on its fixed assets.

Particulars Useful lives estimated by the management (years)

Improvements to leasehold land Runways and taxiways Roads- Other than RCC* Buildings on lease hold land Electrical installations* Plant and machinery Office Equipment Computer equipment and IT systems Furniture and fixtures Vehicles

2014-15 30

30 10 30 10 15 5

3-6

10 8 -10

*The management has estimated, supported by tech lives of the f lasses of assets:

2013-14 59.88

29.94 61.35

29.94-61.35 21.05

18.94-21.05 21.05 6.17

10.53-15.78 8.84-14.14

Depreciation Rates (SLM)

2013-14 1.67%

3.34% 1.63%

1.63%-3.34% 4.75%

4.75%-5.28% 4.75%

16.21 %

6.33%-9.5% 7.07%-11.31 %



• The useful lives of internal roads - other than RCC and certain electrical installations (transformers) are estimated as 10 years and 15 years respectively. These lives are longer than those indicated in schedule IL

• On June 12, 2014, the Airport Economic Regulatory Authority ("the Authority") has issued a consultation paper viz.05/2014-15 in the matter of Normative Approach to Building Blocks in Economic Regulation of Major Airports wherein it, interalia, mentioned that the Authority proposes to lay down, to the extent required, the depreciation rates for airport assets, taking into account the provisions of the useful life of assets given in Schedule II of the Companies Act, 2013, for such assets that have not been dearly mentioned in the Schedule II of the Companies Act, 2013 or may have a useful life justifiably different than that indicated in the Companies Act, 2013 in the specific context to the airport sector. The Authority has initiated the process to enable it to issue a notification as appropriate, pursuant to the provisions of Part B of Schedule II of the Companies Act, 2013 for this purpose. Pending issuance of final notification by AERA of the useful lives of airport specific assets i.e. Runways, Taxiways and Apron, the Company, in the absence of any specific mention of useful lives of these assets in Schedule II to the Companies Act, 2013, has continued to depreciate these assets over their estimated useful lives as determined by the Management based on a technical evaluation. The impact, if any, based on the useful lives as may be notified by the Authority will be considered as per the order of the Authority.

Leasehold Improvements are amortised over shorter of estimated useful lives or lease period.

Individual assets costing less than Rs.5,000 are fully depreciated.

Depreciation on adjustment to the historical cost of the assets on account of foreign exchange fluctuation, if any, is provided prospectively over the residual useful life of the asset.

f. Intangible assets:

Cost relating to software licenses, which are acquired, are capitalized and amortized on a straight -line basis over their useful life not exceeding six years.

g. Impairment of tangible and intangible assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company's cash-generating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. After impairment, depreciation is provided on the revised carrying amount of the asset over its . ~ ..•. - .. .,, .. ,_, useful life.



h. Inventories:

Inventories are valued at lower of cost and net realizable value. Cost is determined on a weighted average basis and includes other directly associated cost in bringing the inventories to their present location and condition. Net realizable value is the estimated current procurement price in the ordinary course of business.

i. Foreign currency transactions:

(i) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items which are measured in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(iii) Exchange differences

The Company accounts for exchange difference arising or translation/ settlement of foreign currency monetary items as below:

• Exchange difference arising on the settlement of monetary items, or on reporting such monetary items of Company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or expense in the year in which they arise.

• Exchange difference arising on long term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.

• Exchange difference arising on other long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortized over the remaining life of the concerned monetary item.

• All other exchange differences are recognized as income or as expenses in the period in which they arise.

• For the purpose of above, the Company treats foreign currency monetary item as "long-term foreign currency monetary item", if it has a term of 12 months or more at the date of its origination. In accordance with MCA circular dated August 09, 2012, exchange differences for this purpose, are total differences arising on long-term foreign currency monetary items for the period. In other words, the Company does not differentiate between exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other exchange difference.

(iv) Forward exchange contracts not intended for trading or speculations purposes

The premium or discount arising at the inception of the forward exchange contracts is amortized as expenses or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rate changes. Any profit or loss

~~~~!-!:•ion or renewal of forward ·s recognized as income or expenses



j. Government grant:

Grants and subsidies from the government are recognized when there is reasonable assurance that the grant/ subsidy will be received and all attaching conditions will be complied with. Government grant in the nature of capital subsidy is treated as reserve.

k. Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

I. Retirement and other employee benefits:

a) Retirement benefit in the form of provident fund and superannuation fund are defined contribution schemes. The contributions are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the funds.

b) The Company operates a defined benefit plan for its employees, viz., gratuity. The cost of providing benefits under this plan is determined on the basis of actuarial valuation at the end of each year. Actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for the defined benefit plan is recognized in full in the period in which it occurs in the statement of profit and loss.

c) Accumulated leave, which is expected to be utilized within the next hvelve months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

d) The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. However, the Company presents the entire provision towards accumulated leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for twelve months after the reporting date.



m. Borrowing costs:

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

n. Earnings per share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

o. Taxes on income:

Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes umecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes - down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is

redit to the statement of loss and shown as "MAT Credit "



The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the does not have evidence that it will pay normal tax during the specified period.

p. Leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

q. Corporate Social Responsibility (CSR) expenditure:

The Company has opted to charge its CSR expenditure during the year to the statement of profit and loss.

r. Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

s. Cash and cash equivalents:

Cash and cash equivalents for the purposes of cash flow statement comprise of cash at bank and in hand and short-term investments with an original maturity of three months or less.

t. Derivative instruments:

The Company enters into arrangements of interest rate swaps to hedge its risk on variable rate currency loans as an underlying hedge item or highly probable forecast transaction. Such derivative contracts, other than those covered under AS-11, are marked to market on a portfolio basis, and the net loss after considering the offsetting effect of hedge item is charged to the income statement. Net gains are ignored.

u. Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

v. Measurement of EBITDA

The Company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the Company does not include depreciation and amortization expense, finance cost and tax ex:p€:'fl8e,

GMR Hyderabad International Airport Limited CIN: U62100TG2002PLC040U8


28. The Company is engaged in operating the and related activities, which in the context of Accounting standard 17- Segment reporting, notified under Section 133 of the Companies Act, 2013 is considered as single business segment. Hence, reporting under the requirements of the said standard does not arise.

29. The financial statements of the Company do not include Accounts for Passenger Service Fee- Security Component [PSF- (SC)] as the same are maintained separately in the fiduciary capacity by the Company on behalf of the Government of India and are governed by Standard Operating Procedure vide letter number AV /13024/047 /2003-SS/ AD dated January 19, 2009 issued by the Ministry of Civil Aviation, Government of India.

30. Details of transactions with Related Parties:

A. Names of related parties and description of relationship:

SI. No. (i) (ii) (iii) (iv)

(v)

Relationship

Subsidiary Companies

Fellow Subsidiary Companies

Related party Name

GMR Air orts Limited (GAL) GMR Infrastructure Limited (GIL) GMR Holdin s Private Limited (GHPL) H derabad Menzies Air Car o Private Limited

GMR H derabad Aviation SEZ Limited GMR Hvderabad Multi roduct SEZ Limited GMR Hotels and Resorts Limited H derabad Du

I GMR Aerospace Engineering Limited (Formerly known as MAS GMR Aeros ace En ineerin Corn an Limited * GMR Hyderabad Airport Power Distribution Limited GMR Aero Technic Limited (Formerly known as MAS GMR Aero Technic Limited) GMR Aviation Private Limited

GMR Tambaram-Tindivanarn Expressways Private Limited

1 GMR Tuni-Anakapalli Expresswa s Private Limited Delhi International Air ort Private Limited

GMR Corporate Center Limited GMR Infrastructure (Mauritius) Limited

1 GMR SEZ and Port Holdin Private Limited

GMR Cor orate Affairs Private Limited

GMR Hyderabad Vijayawada Expressways Private Limited

I (vi)

(vii)

(viii)

(ix)

(x)

(xi)



EMCO Eue1 ts y T .imit<>rl

Chhattisgarh Energy Limited GMR Kamalanga Energy Limited

i GMR Airport Developers Limited . GMR Projects Private Limited f GMR Power Corporation Limited I GMR Male International Airport Private Limited I GADL International Limited

Kakinada SEZ Private Limited : Raxa Security Services Limited

GMR Sports Private Limited GMR Infrastructure (Singapore) Pte Limited

Associates of GMR t GMR Jadcherla Expressways Private Limited Infrastructure Limited GMR Ulundurpet Expressways Private Limited Shareholders having significant Government of Telangana influence

1 Airports Authority of India

MAHB (Mauritius) Private Limited

Key management personnel Mr. Srinivas Bomrnidala - Managing Director

Joint Venture Laqshya Hyderabad Airport Media Private Limited Asia Pacific Flight Training Academy Limited

Private company having common director (Section 8 1 GMR Varalakshrni Foundation Company) Joint Venture of a subsidiary

TVS GMR Aviation Logistics Limited** companv

I

I I

'

I

* GMR Aerospace Engineering Limited became a subsidiary during the year with effect from August 25, 2014. (Joint Venture in the previous year) **In the previous year, the Company had sold its share to the Joint Venture partner.

B. Summary of Transactions with related parties during the year is as follows:

S.No. Related Party Transactions March 31, 2015 March 31, (Rs.) 2014(Rs.)

(i) Remuneration to Key lvfanagement Personnel:

a Managing Director- Mr. Srinivas Bommidala 19,787,129 15,448,060 (ii) Services received:

a Raxa Security Services Limited 80,838,175 76,527,056

b GMR Hotels and Resorts Limited [ 3,304,460 4,075,076

c Airports Authority of India 140,000 777,504

d GMR Aviation Private Limited 42,348,440 35,604,426

e GMR Airport Developers Limited 124,410,168 120,891,506

f GMR Infrastructure Limited [ 104,762,761 80,763,240

g GMR Airports Limited 70,443,895 59,752,302

h , Laqshya Hyderabad Airport Media Private Limited 2,953,398 2,026,228

i GMR Corporate Affairs Private Limited : 9,137,655 9,095,339

j Government of Telangana 764,384 I -

- .'./ .. <,,~<:\ ~r:...'lYA ··"-,_[ -

lb

IC Id

e

I f (iv)

la

b

c

(v)

a

b

(vi)

a

b

c

d

e

f

g

h

i

j

k

L

ill

n

0

p

q

r

s

t

u

(vii)

a

(viii)

a (ix)

a



;!1-1 .. -"··''"'" .. 'l,,-11-i in:

:Ydera SEZ Limited i _49 000

i GMR Aerospace Engineering Limited 444,000,062

/ GMR Hyderabad Aerotropolis Limited I 100,000,000 I I Hyderabad Duty Free Retail Limited I - !

I Asia Pacific Flight Training Academy Limited -

· TVS GMR Aviation Logistics Limited -

Advance towards share application money: .

GMRHydera Aviation SEZ Limited I I){){) 000 ,_ -

GMR Hyderabad Aerotropolis Limited - I GMR Aerospace Engineering Limited -

SecurihJ Deposit (refunded) /received: I Hyderabad Menzies Air Cargo Private Limited (2,000,000)

GMR Aero Technic Limited 504,407

Income from operations:

Hyderabad Menzies Air Cargo Private Limited 180,282,587

Hyderabad Duty Free Retail Limited 157,826,551

GMR Krishnagiri SEZ Limited -

GMR Hotels and Resorts Limited 11,495,067

Airports Authority of India 30,209,203

GMR Aviation Private Limited ! 134,131

TVS GMR Aviation Logistics Limited -GMR Infrastructure Limited 1,742,910

GMR Hyderabad Aviation SEZ Limited I 42,027,831

Laqshya Hyderabad Airport Media Private Limited 215,457,068

GMR Projects Private Limited I -

Kakinada SEZ Private Limited 3,346,779

GMR Aero Technic Limited 4,529,859

GMR Airport Developers Limited 1,408,837

GMR Hyderabad Aerotropolis Limited 2,170,942

GMR Airports Limited I 1,253,220

Asia Pacific Flight Training Academy Limited 9,335,594

Raxa Security Services Limited 33,680

GMR Power Corporation Limited 256,957

GMR Varalakshmi Foundation 1,960,723

GMR Hyderabad Vijayawada Expressways Private -Limited Dividend income received from subsidiary Company:

Hyderabad Menzies Air Cargo Private Limited 52,036,818

Advance revenue received:

Hyderabad Menzies Air Cargo Private Limited 57,127,603 Unsecured loan availed during the year

GMR Airports Limited 30,000,000

~~ l~!I )

~ 1 ~

165 ,500 ,000

-I

70,000,000 I 15,569,690

14,700,000 I

000 000

100,000,000

204,000,000 .

--

178,839,407

140,353,063

30,929

10,900,729

26,404,135

125,349

(1,013,798)

2,472,523

40,929,738

174,492,494

19,127

3,593,573

2,716,622

4,359,679

1,799,831

786,312

7,771,206

6,230

-

-421,938

41,638,424

-

200,000,000

;.·:·:::·

............ ··

la b

I b I I (xii) I I a

(xiii)

b

c

(xiv)

a

b

c

(xv)

a

b

(xvi) I

a

b

c

(xvii)

a

(xviii)

a

b

c

(xix)

a

(xx)

a

b

c

d

e

f

g

h

i

j

k

I



Unsecured loan repai, during the year Hyderabad Airport Security Services Limited I 147,400,000 GMR Airports Limited 230,000,000 Interest paid durin~ year G Airports I Hyderabad Airport Security Services Limited 45,085,125

I Unsecured loan given : :

GMR Hotels and Resorts Limited 100,300,000 Unsecured loan received back:

, GMR Energy Limited l,000,000,000

Asia Pacific Flight Training Academy Limited -

I

Interest on unsecured loan given: I Asia Pacific Flight Training Academy Limited i -

I


GMR Energy Limited 38,356,164

Pledge of equihj shares by the Company with banks against the loan taken by the Subsidian; Companies:

GMR Aerospace Engineering Limited I L006,090,000

Hyderabad Duty Free Retail Limited - I

Corporate guarantee given by the Company on behalf of its I I

subsidiaries companies with banks against the loan taken: I

GMR Hyderabad Aviation SEZ Limited (66,582,296) I GMR Hotels and Resorts Limited (45,500,000)

GMR Aerospace Engineering Limited 2,575,322,510

Corporate guarantee availed from the intermediate holding company against loan taken from banks: GMR Infrastructure Limited I 7,670,798,000

Bank guarantee given by the Company on behalf of its I subsidiaries companies with banks: I

I


GMR Hyderabad Aviation SEZ Limited I (3 ,064,011)

Hyderabad Duty Free Retail Limited (200,000)

CSR Expenditure

GMR Varalakshmi Foundation I 7,835,ooo I Reimbursement of expenses claimed by the Company during the year from its related parties:

GMR Infrastructure Limited 202,969

Laqshya Hyderabad Airport Media Private Limited 9,823,098

Kakinada SEZ Private Limited 808,677

Delhi International Airport Private Limited I 1,159,993

GMR Sports Private Limited 568,900

GMR Rajahmundry Energy Limited -GMR Hyderabad Aviation SEZ Limited

I 32,544,913

GMR Airports Limited 326,723

' GMR Hotels and Resorts Limited 51,936,940

GMR Chhattisgarh Energy Limited i 23,599

Hv,.l----'--,.l Duty Free Retail Limited .r,.,-,,v" ""''"

9,266,224

t~ )

"" t::l %,

_,

71,400,000

62,325,652

113,000,000

- I

12,500,000

567,124

3,796,890

124,999,998 l

I -

36,000,000

I 14,405,000

! - I -

I I

- I

4,500,000

37,094,998

-

-

305,990

9,662,526

514,801

5,181,544

5,117,844

21,422

18,315,189

233,995

48,664,886 I

21,782

>' 2,921,942 / ',

5

c. balances at the end of the year:

Non-Current Current Non-Current Current

Is I No. I

i

I '

\g

h

I i I

j

k

l

m

n

0

p

q

r

s

t

u

v

w

x

y

z

aa

ab

ac

ad

ae

af

ag

ah

(ii)

a

b

GMR Hyderabad International Airport Limited CIN: U62IOOTG2002PLC040118


March 31 2014 (Rs) I Particulars March 31 2015 (Rs ) i , . . , I I I I I I Non-Current Current Non-Current i Current I

i Delhi International Airport I -i

(95,135) I - i (3,526,632) J Private Limited I I

i

GMR Sports Private Limited I - I - - 666,079 I

GMR Rajahmundry Energy I - 407,847 - I 407,847 ' Limited i I

GMR Airports Limited I - (8,681,496) - I (15,997,943)

Hyderabad Duty Free Retail I - 17,889,763 : - I 8,880,532 Limited GMR Hotels and Resorts Limited - 2,719,950 - 4,351,838

GMR Hyderabad Vijayawada - 56,136 . - 220,946 Expressways Private Limited GMR Holdings Private Limited - 59,831 - 59,831

GMR Aviation Private Limited - (6,091,087) - (8,616,336)

GMR Hyderabad Aviation SEZ - 59,347,2091 - 11,765,988 Limited I

' GADL International Limited - (718,991) - (718,991)

Asia Pacific Flight Training I

- 8,029,204 i - 564,029 Academy Limited

I

GMR Airport Developers Limited - (4,540,621) - (7,460,480)

Laqshya Hyderabad Airport - 46,171,418 - 83,234,399 Media Private Limited Kakinada SEZ Private Limited - I 186,702 I - 179,329

GMR Aero T echnic Limited - 3,442,349 - 866,891

GMR Chhattisgarh Energy - 45,381 - 21,782 Private Limited GMR Energy Limited - 21,995 -

GMR Jadcherla Expressways

I - -

I - 30,713

Private Limited i

EMCO Energy Limited I 22,186 5,853,583 - -GMR Power Corporation Limited - 21,885 - 94,382

GMR Hyderabad Aerotropolis - I 711,505 - 1,337,190 Limited GMR Pochanpalli Expressways - - - 12,413 Limited I I I

GMR Projects Private Limited - - - 7,293

GMR Infrastructure (Singapore) - 3,218,455 I - -Pte Limited I

GMR Varalakshmi Foundation - 183,221 - -Government of Telangana - (764,384) - -GMR Corporate Affairs Private - (1,013,798) - (1,777,830) Limited Securihj deposit received from I (paid) to related parties: Hyderabad Menzies Air Cargo 7,000,000 1,000,000 9,000,000 1,000,000 Private Limited Asia Pacific Flight Training 1,436,383 - 1,346,383 -Academu T ,imited ,/.I f;'.• i

~ p..YY,q<f //~. <'' .

M 0

I'~ ,, s>l *

<$' 70 ~~3 .. ·:::'::: .. :' .. '.;;

- .........

I

Is. I No. I

I I I

)c Id

e

f

g

(iii)

a

(iv)

a

(v)

a

b

c

(vi)

a

b

c

d

e

f

g

h

i

J

k

a

b



I Particulars

I March 31, 2015 (Rs.)

I March 31, 2014

I I Non-Current I Current I Non-Current ' I GMR Infrastructure Limited I - 44o,s96 I -

Hyderabad Duty Free Retail I

- 48,000 Limited Laqshya Hyderabad Airport I 3,525,000 - 500,000

1 Media Private Limited I I

GMR Aero Technic Limited 504,407 - '

Raxa Security Services Limited (17,494,000) i - I (17,480,000)

Dividend receivable from subsidiary

i I Companv:

Hyderabad Menzies Air Cargo I - - I -I

Private Limited I

Advance Revenue Received from I

I subsidian1 Company: Hyderabad Menzies Air Cargo - (57,127,603) - I Private Limited Advance towards hare application

I mone11: GMR Aerospace Engineering I - - 204,000,000 ' Limited I GMR Hyderabad Aerotropolis - -

I 100,000,000

Limited [

GMR Hyderabad Aviation SEZ 17,000,000 [ -I

70,000,000 Limited Investments in subsidiaries:

Hyderabad Menzies Air Cargo 5,389,350 5,389,350

I -

Private Limited GMR Hyderabad Aerotropolis I

336 ,300 ,000 236,300,000 -Limited GMR Hyderabad Airport

500,000 500,000 -Resource Management Limited Hyderabad Airport Security

125,000,000 I 125,000,000 -Services Limited GMR Hyderabad Aviation SEZ

499,000,000 350,000,000 -Limited GMR Hyderabad Multiproduct

500,000 500,000 -SEZ Limited GMR Hotels and Resorts Limited*

! - 310,028,753 I -

Hyderabad Duty free Retail 169,500,000 - -

Limited GMR Airport Handling Services

500,000 500,000 -Company Limited GMR Hyderabad Airport Power I

500,000 500,000 -Distribution Limited GMR Aerospace Engineering

1,411,500,062 --Limited Investment in joint venture company: GMR Aerospace Engineering

967,500,000 - -Limited Asi~qiiii<r~t Training 269,690 - 35,269,690 >'··

l~~h ~~~) !~? •'

;:l ~~Ji:)

·- p.S? -

(Rs.)

Current

440,896

-

625,000

-

5,606

-

-

-

-

-

-

-

-

-

-

349,127,802

169,500,000

-

-

-

-

- ·. .

I

s. No.

I c

(vii) I

a

a

b

c

(ix)



I Particulars

I March 31, 2015 (Rs.) I March 31, 2014 (Rs.)

I

Non-Current I I I Current Non-Current I Current '

! Academy Limited I I

I Laqshya Hyderabad Airport I 98,ooo,ooo I

! I

Media Private Limited - 98,ooo,ooo I -I

Interestfree subordinate debt given I I to subsidiaries: !

Hyderabad Airport Security i

I Services Limited 66,150,000 - 66,150,000 -

Loans and advances given : i

GMR Hotels and Resorts Limited I 507,197,938 I - 406,897,938 -'

GMR Energy Limited - - - 1,000,000,000

Laqshya Hyderabad Airport 89,300,000 10,700,000 I 100,000,000

Media Private Limited -

Loan received:

I I

I I

I

a Hyderabad Airport Security (305,916,330) (142,800 ,000) ( 453,316,330) (151,696,758) I Services Limited I

b GMR Airports Limited - - - (200,000,000)

*The above amount is net of provision for impairment in value of investment of Rs. 786,560,407 (March 31, 2014 Rs. 747,461,358) in GMR Hotels and Resorts Limited.

D. Outstanding guarantees/ pledge of equity shares at the end of the year:

s. Related Party Transactions I March 31, March 31, No. I 2015 (Rs.) 2014 (Rs.)

(i) Pledge of equity shares by the shareholders having significant influence

I in the Company, with banks against the loan taken:

a GMR Airports Limited 1,641,235,140 1,641,235,140 b MAHB (Mauritius) Private Limited 286,564,860 286,564,860

(ii) Pledge of equity shares by the Company with banks against the loan taken tnj the subsidiary companies:

a Hyderabad Airport Security Services Limited 37,500,000 37,500,000

b GMR Aerospace Engineering Limited 1,106,190,000 100,100,000 c Hyderabad Duty Free Retail Limited 50,850,000 50,850,000

(iii) Corporate guarantee given by the Company on behalf of its subsidiaries I

companies with banks against the loan taken:

a GMR Hotels and Resorts Limited 1,317,862, 140 1,363,362,140

b GMR Aerospace Engineering Limited 2,575,322,510 -

c GMR Hyderabad Aviation SEZ Limited I 497,822,704 564,405,000

(iv) Bank guarantee given by the Company on behalf of its subsidiaries I companies with banks, as required under the loan covenants:

I

a GMR Hotels and Resorts Limited 57,300,000 53,500,000

b GMR Hyderabad Aviation SEZ Limited 34,030,987 37,094,998

c Hyderabad Duty Free Retail Limited I 38,600,000 38,800,000

(v) Corporate guarantee availed from the intermedian; holding company

I against loan taken from banks:

a GMR Infrastructure Limited 11,592,700,000 3,921,902,000



31. Retirement and other employee benefits:

a) Defined contribution plan:

Contribution to provident and other funds under <>n-""'''""c'"' benefits expense (Note 22) are as under: (Amount in Ru ees)

Contribution to provident fund Contribution to ESI Contribution to labor welfare fund Contribution to superannuation fund

Total

b) Defined benefit plans:

For the year ended March 31, For the year ended 2015 March 31, 2014

21,909,553 20,789,762 217,105 379,340

2,400 2,557 14,458,307 14,360,208 36,587,365 35,531,867

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service.

The following table summarises the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

Statement of profit and loss:

Net employee benefits expense (recognized in employee cost)

Current service cost Interest cost on benefit obligation Expected return on plan assets Net actuarial loss recognized in the year Net benefit expense

Actual return on plan assets

Balance sheet

Details of provision for gratuity:

Fair value of plan assets Defined benefit obligation Plan asset

March 31, 2015

4,872,507 2,580,544

(3,682,757) 7,108,627

10,878,921

3,682,757

March 31, 2015 39,475,658 39,369,765

105,893

Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation Interest cost Current service cost Benefits paid Actuarial losses/ (gains) on obligation Acquisition cost Closin defi

March 2015 28,323,985

2,580,544 4,872,507 (852,431) 4,149,472

295,688 39,369,765

(Amount in Rupees) March 31, 2014

5,570,658 2,084,382

(3,231,923) (3,874,996)

548,121

(Amount in Rupees) March 31, 2014

39,604,486 28,323,985 11,280,501

(Amount in Rupees) March 20114

26,944,399 2,084,382 5,570,658

(2,422,585) (3,867,154)

14,285 28,323,985



Changes in the fair value of plan assets are as follows:

value assets Expected return on plan assets Contributions by employer Benefits paid Actuarial gains/ (losses) Closing fair value of plan assets

39,604,486 3,682,757

(852,431)

39,475,658

32,399,607 3,231,923 6,387,699

(2,422,585)

39,604,486

The Company expects to contribute Rs. Nil (March 31, 2014: Rs. 6,000,000) towards gratuity fund in 2015-16.

The major categories of plan asset as a percentage of the fair value of total plan assets are as follows:

March 31, 2015 March 31, 2014 Investments with insurer 100% 100%

The principal assumptions used in determining gratuity obligation for the Company's plans are shown below:

Discount rate Expected return on plan assets Rate of compensation increase Employee turnover

Notes:

March 31, 2015 7.80% 9.40%

6% 5%

March 31, 2014 9.25% 9.40%

6% 5%

i) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

ii) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company's policy for plan asset management.

Amounts for the current and prior periods are as follows: (Amount in Rupees)

2014 -15 2013 -14 2012-13 2011-12 2010 -11

Defined benefit obligation (a) 39,369,765 28,323,985 26,944,399 18,591,992 11,498,134

Fair value of plan asset (b) 39,475,658 39,604,486 32,399,607 24,082,944 14,633,627

Surplus (b - a) 105,893 11,280,501 5,455,208 5,490,952 3,135,493 Gain/(loss) on obligation due

( 4,577,219) 3,093,705 (983,505) 932,129 to change in assumption Experience gain/ (loss) on plan

427,747 773,449 (2,797,442) ( 4,202,028) (65,953) liabilities Experience gain/ (loss) on plan

(2,959,154) 7,842 (88,323) 746 (836,436) assets

c) Liability towards leave encashment is provided based on actuarial valuation amounts to Rs.51,834,252 (March 31, 2014: Rs. 36,665,936).



32. The Company has not dealt with any Enterprises Development Act, 2006

of Micro, Small and Medium

33. The Company had taken residential and office premises under cancellable operating leases. The rental expenses under such operating lease during the year is Rs. 29,896,131(March 31, 2014: Rs. 71,861,339).

34. Information on joint venture:

The Company's interest in the below mentioned joint venture is reported as non- current investments (note 13) and stated at cost. The Company's share of each of the assets, liabilities, income, expenses etc. related to its interests in the joint venture are as below:

a. L. f" . ist o 1ornt venture entities: Name of Joint Venture Description

I Nature of Ownership Owner- I Date of Country

of Interest business interest as ship Incorpor- of at March interest I ation Incorpo 31, 2015 as at -ration

March 31, 2014

Laqshya Hyderabad Jointly Advertising I 49% 49%

I Dec 11, India

Airport Media Private controlled

I 2008

Limited (LHAMPL) entity I Asia Pacific Flight Jointly Flight

I 39.44% I 39.44%

f

Feb 18, India I I

Training Academy I controlled Training I I

2011 Limited (APFT AL)* entity Academy GMR Aerospace -Jointly Operator of I 100% 50% Feb 29, India Engineering Limited controlled MRO I 2008 (GAEL) entity/ facilities

I f

Subsidiary** I I

*The Company became jointly controlled entity with effect from November 15, 2012.

**GMR Aerospace Engineering Limited ("GAEL") (Formerly known as MAS GMR Aerospace Engineering Company Limited) was a joint venture with Malaysian Aerospace Engineering Sdn Bhd as at March 31, 2014. GAEL became subsidiary with effect from August 25, 2014 and wholly owned subsidiary with effect from December 12, 2014.

b. Financial interest in jointly controlled entities: (Amount in Ru ees)

Com an 's share of Name of Joint Assets Liabilities Income Expenditure Contingent Capital Venture liabilities commitment

LHAMPL (Audited March 31, 2015 183,965,491 224,942,215 183,556,603 157,475,091 1,152,941 March 31, 2014 177,551,642 244,580,924 141,843,859 131,301,053 34,055,459

APFIAL (Audited) March 31, 2015 11,060,854 13,922,323 8,516,832 24,466,526 March 31, 2014 20,454,513 7,366,289 5,184,563 25,729,721

GAEL

NA NA NA



I Company's share of I Name of Joint Assets Liabilities Income j Expenditure

I Contingent / Capital

Venture liabilities i commitment March 31, 2014 2,290,203,780 1,359,406,963 i 200,058,556 I 217,971,148 81,113,873 I

35. Derivative instruments and un-hedged foreign currency exposure:

(a) There are no outstanding derivative contracts as at March 31, 2015 and March 31, 2014 other than interest rate swap as referred in note 40.

(b) Particulars of unhedged foreign currency exposure are as follows:

March 31, 2015 March 31, 2014 Particulars Amount in Amount in

I Amount in foreign Amount in

foreign currency Rupees currency Rupees Creditors GBP67,676 6,258,018 I - -

Creditors USD 58,1321 3,665,789 USD 1,905,280 I 115,092,818

Creditors EUR 108,148 7,266,488 EUR 42,774 3,448,087 Loan USD 91,050,000 5,741,613,000 I USD 100 ,000 ,000 6,049,000,000

36. (a) Earnings in foreign currency (on accrual basis):

Particulars I For the year ended

I March 31, 2015 Concession fees I 138,800,056 Total I 138,800,056

(b) Expenditure in foreign currency (on accrual basis):

Particulars

Professional charges Interest Others Total

37. C.I.F Value of imports:

Particulars

Capital goods

Stores and spares Total

38. Consumption of stores and spares:

Particulars

I For the year ended March 31, 2015

1,802,018 530,748,289 16,643,954

i 549,194,261

! For the year ended March 31, 2015

2,430,684

9,491,099 11,921,783


(Yo Value 34.34 23,113,293

44,196,835 I

67,310,128

I (Amount in Rupees)


43,555,050 43,555,050

mount zn (A . R upees For the year ended

March 31, 2014 5,713,123

627,745,063 24,745,780

658,203,966

(A t. R moun m upees For the year ended

March 31, 2014 110,574,809

26,041,669 136,616,478

Amount in Ru ees For the year ended

March 31, 2014 <Vo Value 23.45 15,603,828 76.55 50,929,963

100.00 66,53~,Z91

,<::,::~'



39. The Company was entitled to custom credit under Served From India Scheme (SFIS) of Foreign Trade Policy issued by Government of India. Under the terms of SFIS, service providers were entitled to custom duty credit scrip as a percentage of foreign exchange earned by the Company that can be utilised for payment of import duty.

The Company was of the view that such credit entitlements constitute capital grant and thus, was recording inventories and fixed assets (including capital work in progress) imported, at net amount (after excluding the amount of custom duty paid by using these scrips). However, the Expert Advisory Committee of the Institute of Chartered Accountants of India, pursuant to a specific application made by a fellow subsidiary of the Company in this regard, has clarified vide its opinion viz. TD/EAC/1484/13 dated November 19, 2013 that such scrips should be recognised and accounted as grant related to revenue under Accounting Standard 12 - Accounting for Government Grants.

Accordingly, during the previous year, the Company had adjusted (netted of) Rs. 57,475,891, (being the difference between the value of duty credit scrips amounting to Rs. 76,316,559 and depreciation amounting to Rs. 855,531 that ought to have been charged on such assets. This had been further reduced by Rs. 17,985,137 of utilisation already credited to expenditure account in earlier periods) against certain expenditure, which in its view were related to obtaining such custom duty credit scrip entitlements and had disclosed the same as prior period items (net).

40. As per the conditions precedent to disbursement of loan, the Company had entered into an interest rate swap (IRS) agreement from floating rate of interest to fixed rate of interest against its foreign currency loan of USD 125 million covering the loan period. The outstanding balance as at March 31, 2015 is Rs. 5,74t613,000 (March 31, 2014: Rs 6,049,000,000). Since the critical terms of the IRS and the principal term loan are same, based on an internal assessment carried out by the Management, the net impact of the marked to market valuation of the IRS, net of gain/ (loss) on the underlying loan, is not expected to be material.

41. Reimbursement of expenses claimed by the Company have been reduced from the respective expense head as mentioned in the table below:

(Amount in Rs.)

Expense Head For the year ended For the year ended

March 31, 2015 March 31, 2014 Electricity and water charges 270,571,110 246,814,026 Salaries, wages and bonus 18,130,062 -Staff welfare expenses 5,288,716 -Insurance 1,334,769 -Rates and taxes 2,368,364 -

Bank charges 500,000 -Miscellaneous expenses i 332,552 -Advertising and business promotion I 684,679 -Travelling and conveyance 142,193 -Communication expenses 39,300 -

42. Litigations and Contingent Liabilities

A) i.) Litigations provided for - Matters related to various service tax notices/ orders referred in note (c) of paragraph (B) below on contingent liabilities for which an amount of Rs. 8,087,907 (March 31, 2014: Rs. 7,956,715) have been provided for in the books of account.

ii.) A search operation under section 132 of the Income Tax Act, 1961 was carried out at the premises of the Company by the Income Tax authorities on October 11, 2012 followed by another search

November 10, 2012, eek the compliance with the provisions of the



Act, 1961. During the year, block assessment in respect Assessment Years 2007-08 to 2012-13 was 1...v,,a~nc:1.cu and the Company received the assessment which disallowed certain expenses and made few additions to the income resulting in reduction of carried forward loss amounting to Rs.1,094,397,461 and no additional tax liability was assessed to be payable by the Company. The Company has filed an appeal with the Commissioner of Income Tax (Appeals), Bengaluru against the said block assessment orders.

B) Contingent liabilities not provided for:

a) Bank guarantee outstanding in respect of customs and others Rs.229,930,987 (March 31, 2014: Rs. 229,394,998). Note: Performance guarantees given by the Company on its own behalf are not considered as contingent liability.

b) Corporate guarantees amounting to Rs. 4,391,007,354 (March 31, 2014: Rs. 1,927,767,140).

c) Matters under dispute are as follows:

i. The Company had received an order from the Office of Commissioner of Customs, Central Excise and Service Tax dated January 29, 2010 on irregular availment of the Cenvat amounting to Rs.245,433,347 (March 31, 2014: Rs. 245,433,347). The order also includes penalty of Rs. 311,100,000 (March 31, 2014: Rs. 311,100,000). The Company had received stay order from CESTAT modified by High Court of Andhra Pradesh against the said order subject to pre-deposit of Rs. 122,037,582 and accordingly, the Company had deposited the same with the service tax department within the stipulated time.

ii. The Company had received an order from the Office of Commissioner of Customs, Central Excise and Service Tax dated October 28, 2009, as per which the Company is liable to pay an amount of Rs. 74,300,000 (March 31, 2014: Rs. 74,300,000) towards penalty on delay in payment of service tax on the User Development Fee (UDF). The Company had received stay order against the said order in the earlier years.

iii. The Company had received an order from the Office of Commissioner of Customs, Central Excise and Service Tax dated November 25, 2013 on non- payment of service tax on recovery of electricity and water charges from its concessionaires and irregular availment of Cenvat amounting to Rs. 15,319,655 (March 31, 2014: Rs.15,319,655), including penalty of Rs. 16,662,816 (March 31, 2014: Rs. 16,662,816). During the year, the Company had received a stay subject to predeposit of Rs. 1,535,000 and accordingly, the Company had deposited Rs.1,535,000 within the stipulated time.

iv. The Company had received Show Cause Notice dated June 17, 2013 from the Office of Commissioner of Customs, Central Excise and Service Tax on non- payment of service tax on import of service amounting to Rs. 3,263,003 (March 31, 2014: Rs. 3,263,003). The Notice also included penalty of Rs. 4,057,766 (March 31, 2014: Rs. 4,057,766).

v. The Company had received the Show Cause Notice dated October 23, 2013 from the Office of Deputy Commissioner of Customs, Central Excise and Service Tax followed by another show cause notice dated April 22, 2015 from the Office of Assistant Commissioner of Customs, Central Excise and Service Tax on irregular availment of cenvat credit amounting to Rs. 333,000 and Rs. 379,373 (March 31, 2014: 333,000) respectively. The notice also includes the interest payable thereon and penalty of Rs. 333,000 and Rs. 379,373 (March 31, 2014: Rs. 333,000) respectively.

vi. During the year, the Company received Show Cause Notice dated April 23, 2014 from the Office of Commissioner of Customs, Central Excise and Service tax on irregular availment of .. c~vat



credit to Rs. The notice also includes the interest payable thereon and 2014: Rs.

vii. The Company had received a notice from the office of the Joint Commissioner of Labour for payment of Building and other construction workers' Welfare Cess @ 1 % of the cost of construction of Airport amounting to Rs. 252,026,054 (March 31, 2014: Rs. 252,026,054). The Company had received the stay order against the said order in the earlier years.

viii. The Company has received notice dated January 19, 2013, from Hyderabad Metropolitan Water Supply & Sewerage Board for disconnection of water connection for non-payment of sewerage cess arrears. The Company had received the stay order against the said order in the earlier years. The sewerage cess outstanding including interest as at March 31, 2015 amounts to Rs. 33,155,336 (March 31, 2014: Rs. 29,753,746).

ix. Recovery from PSF (SC) Escrow account: a) The Ministry of Civil Aviation (MoCA) had issued the order vide order no. AV 13024 /03/2011-

AS (Pt. I) dated February 18, 2014 requiring the Airport Operators to reverse the expenditure incurred, since inception till date, towards procurement and maintenance of security systems/ equipment and on creation of fixed assets out of PSF (SC) escrow account opened and maintained by the Airport Operator in a fiduciary capacity. The Company had incurred Rs.912,560,400 (March 31, 2014: Rs. 909,499,441) towards capital expenditure (excluding related maintenance expense and interest thereon) till March 31, 2015 out of PSF (SC) escrow account as per SOPs, guidelines and clarification issued by the MoCA from time to time on the subject of utilization of PSF (SC) funds.

As the above order is contrary to and inconsistent with SOPs, guidelines and clarification issued by the MoCA from time to time in this regard, the Company had challenged the said order before Hon'ble High court of Andhra Pradesh. The Honorable Court, vide its order dated March 3, 2014 followed by further clarifications dated April 28, 2014 and December 24, 2014, stayed the MoCA order with an undertaking that, in the event the decision of the writ petition goes against the Company, it shall reverse all the expenditure incurred from PSF (SC).

Accordingly, the Company is continuing to incur the procurement and maintenance cost of security systems / equipment from PSF (SC) escrow account and during the year ended March 31, 2015 incurred an amount of Rs. 24,956,622 (March 31, 2014 Rs. 27,523,765) on maintenance of security systems / equipment from the PSF (SC) escrow account.

b) As per the advice from the Ministry of Home Affairs and the SOP issued by the MoCA on March 06, 2002, the Company, through its wholly owned subsidiary, Hyderabad Airport Security Services Limited (HASSL) constructed the residential quarters for Central Industrial Security Force (CISF) deployed at the airport. After completion of such construction, the total construction cost including the cost of land amounting to Rs. 699,167,310 (March 31, 2014: Rs. 699,167,310) was debited to the Passenger Service Fee (Security Component) Fund [PSF (SC) Fund] with intimation to the MoCA. The Comptroller & Auditor General, during their audits of PSF (SC) Fund, observed that, the Company had not obtained prior approval from the MoCA for incurring such cost from the PSF (SC) Fund as required by the guidelines dated January 8, 2010 and April 16, 2010 issued by the MoCA. However, Management of the Company is of the opinion that these guidelines were issued subsequent to the construction of the said residential quarters and approached the MoCA for approval of such debit notes to the PSF (SC) Fund account and also, made an application for an increase in PSF (SC) tariff to recover these dues and to meet the shortfall in discharging other liabilities from PSF (SC) fund. During the year, the MoCA responded that, it is not in a position to consider the request for enhancement in the PSF (SC) tariff. As a result, the Company has requested the MoCA to advice the Airport Economic Regulatory Authority (AERA) for considering the cost of construction, land and other related costs 'f to the aforesaid r uarters in determination of Aeronautical ~.~·····+~·



the airport. final instructions from the residential quarters continue to be accounted under the PSF Fund and no adjustments have been made to these financial sta tern en ts.

x. Fuel surcharge adjustments (FSA) for the period from April 2008 to March 2010 amounting to Rs. 20,522,143 (March 31, 2014: Rs. 20,522,143).

Based on the internal assessment and / or legal opinion, the Management is confident that, for the aforesaid mentioned contingent liabilities under paragraph (B) above, no further provision is required to be made as at March 31, 2015.

43. Capital and other commitments:

a) Capital commitment:

Estimated value of contracts remaining to be executed on capital account not provided for (net of advances) amount to Rs. 156,748,918 (March 31, 2014: Rs. 403,567,142)

b) Other commitments:

i) As per the terms of Concession Agreement, the Company is required to pay concession fees to the Ministry of Civil Aviation (MoCA) at@ 4% on all its gross revenue (as defined in Concession Agreement) of the Company for an initial term of 30 years starting from March 23, 2008 which can be extended by another 30 years on satisfaction of certain terms and conditions pursuant to the provisions of the Concession Agreement.

ii) The Company has committed to provide financial support as necessary, to enable its wholly owned subsidiary companies i.e., GMR Hotels and Resorts Limited and GMR Aerospace Engineering Limited (formerly known as MAS GMR Aerospace Engineering Company Limited) to meet their operational requirements as they arise and to meet their liabilities as and when they fall due.

44. In accordance with the provisions of Schedule II of the Companies Act, 2013, the Company has revised the estimated useful lives of fixed assets except with regard to Runways, Taxiways and Apron with effect from April 1, 2014. Accordingly, the net-book value of the fixed assets as on April 1, 2014, is depreciated on a prospective basis over the remaining useful life, wherever applicable. Further, as per the notification issued by MCA dated August 29, 2014, the Company has opted to charge off, the carrying amount of certain fixed assets amounting to Rs. 233,178,097 as on April 1, 2014 whose remaining useful life was 'Nil' as on that date, as depreciation and amortization expenses in the financial statements. As a result of such change in the estimated useful lives, the depreciation and amortization expenses for the year ended March 31, 2015 is higher by Rs. 764,925,303 with a corresponding reduction in the net book value of the fixed assets and reserves and surplus of the Company.

45. The financial statements as at March 31, 2015 include investment aggregating to Rs. 1,411,500,062 (March 31, 2014: Investment and share application money aggregating to Rs. 967,500,000 and Rs. 204,000,000 respectively) made in wholly owned subsidiary company, GMR Aerospace Engineering Limited (formerly knmvn as MAS GMR Aerospace Engineering Company Limited. The subsidiary has a wholly owned subsidiary GMR Aero Technic Limited (formerly known as MAS GMR Aero Technic Limited), which has incurred a net loss of Rs. 686,642,583 (March 31, 2014: Rs. 754,904,286) in the current financial year and has accumulated losses of Rs.2,951,257,277 as at March 31, 2015 (March 31, 2014: Rs. 2,264,614,694), which exceeds its net worth. Also, it has incurred cash losses in the current and in the preceding financial year. The recovery of such investment in the subsidiary company is dependent upon the ability of the aforesaid wholly owned subsidiary to scale up its operations in future and achieve sustained profitability. Based on the future business plan and projections approved by the Board of Directors of the subsidiary company and valuation as done by the Manage anagernent is of the view that

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GMR Hyderabad International Airport Limited CIN: U62100TG2002PLC040Il8


permanent diminution in the value of such investments. include any adjustments relating to the recoverability of assets.

these financial statements do not

46. As at March 31, 2015, the Company has accrued Rs. 19,787,129 (March 31, 2014: Rs. 14,165,606) towards the remuneration to its Managing Director, which includes Rs. 10,473,439 (March 31, 2014; Rs. Nil) in excess of the limits specified in Sub Section (3) of Section 197 read with Schedule V of the Companies Act, 2013. The said remuneration has been approved by the Board of Directors, the Nomination and Remuneration Committee and by the Shareholders. Accordingly, the Company has applied to the Central Government for obtaining necessary approvals for payment of such remuneration and that, the amount in excess of the limits as mentioned above, will be paid as and when the approval is received from the Central Government. The Management of the Company is of the opinion that, the approval for payment of the remuneration will be obtained in due course and as such no adjustments have been made in these financial statements.

47. The Company continues to recognize, Minimum alternate tax (MAT) credit entitlement of Rs. 665,701,699 (March 31, 2014 Rs. 670,308,863), This amount can be adjusted after expiry of the tax holiday period (i.e. AY 2022-23) u/s 80IA of the Income Tax Act, 1961. Management is confident that in view of the anticipated tariff orders for the next control periods which will be effective from financial year 2016-17, the Company's normal tax liability will be more than the MAT payable after considering the deduction under section 80IA of the Income Tax, Act, 1961.

48. The Airport Economic Regulatory Authority (' AERA'), vide its powers conferred by section 13(1) (a) of AERA Act, 2008, passed an Aeronautical tariff order No.38 issued on February 24, 2014, in respect of control period from April 1, 2011 to March 31, 2016. As per the aforesaid order, there will be no Passenger Service Fee (Facilitation Component) -PSF (FC) for embarking passengers and the same will be considered as part of User Development Fee (UDF). Further, the UDF for the period from April 1, 2014 to March 31, 2016 has been determined to be Rs. Nil. Accordingly, revenue from operations, for the year ended March 31, 2015, do not include any income from PSF (FC) and UDF.

This has significantly impacted the cash flows of the Company for the year ended on March 31, 2015 and will continue to have a significant impact on the profitability and cash flows for the period April 01, 2015 to March 31, 2016. The Company has filed the appeal challenging the aforesaid AERA order with the AERA Tribunal. Due to non-constitution of AERAAT Bench, AERA Tribunal has refused to hear the appeal and hence, the Company has filed a writ petition with the Honorable High Court at Hyderabad for the State of Telangana and for the State of Andhra Pradesh, and the hearing is adjourned to a future date. In the meantime, the Company has initiated steps towards strategic cash management. During the year, the Company, entered into an arrangement with the lending institutions to refinance its rupee term loans and received two years moratorium for repayment of term loans beginning from September 30, 2014. The loans are now repayable in 52 quarterly installments beginning from July 31, 2016 as against the earlier repayment term of over 56 quarterly installments beginning from July 1, 2010. Further, with the expected UDF commencing in the next tariff cycle, the financial position is expected to improve thereafter. Moreover, GMR Airports Limited, the holding company of the Company, has agreed to provide necessary financial support, should the necessity arise and GMR Infrastructure Limited, the intermediate holding company of the Company, has provided a corporate guarantee to the lenders of the Company towards servicing of its debt.



49. Corporate Social Responsibility( CSR)

(a) Gross amount required to be spent by the Company during the year: Rs. 20,657,495. (b) Amount spent during the year under Corporate Social Responsibility expenditure includes donation to

GMR Varalakshrni Foundation Rs. 7,835,000 and on other activities such as food distribution, medical care for the elderly and promoting education for the under-privileged etc. amounting to Rs. 12,822,495 as approved by the CSR committee of the Company.

50. The Company has undertaken necessary steps to comply with the transfer pncmg regulations. The Management is of the opinion that the domestic transactions are at arm's length and believes that the aforesaid legislation will not have any impact on the financial statements.

51. Previous year figures have been regrouped and reclassified, wherever necessary, to conform to those of the current year.


For S.R. BATLIBOI & ASSOCIATES LLP ICAI Firm Registration Number:101049VV

Ftrred Accountants

~ J . ~~ .,..........'--""--''-' · p~ Bhum:l:alkar Partner Membership No.: 035141


For Brahmayya & Co., ICAI Firm Registration Number:000515S Chartered Accountants

per G. Srinivas Partner Membership No.:086761



Managing Director DIN.:00061464


RSSLN Bhaskarudu Director DIN.:00058527

Chief Financial Officer

Documents

S.R. ASSOCIATES LLP Chartered Accountants City, · 2015. 6. 26. · S.R. & ASSOCIATES LLP Chartered Accountants Oval office, 8, iLabs Hitech City, Madhapur, Hyderabad - 500 081 INDEPENDENT