Annexure I - AERA

Annexure I-D-I 

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S.R.Batliboi & Associates 

Chartered Accountants 

12" & 13& Floor, "UB City" Canberra Block, 

No. 24, Vittal Mallya Road, 

Bangalore - 560001, India. 

Auditors' Report 

To 

The Members of GMR Hyderabad International Airport Limited 

Braihniayya & Co. 


Khimj Mansion, 

1 0/2, Kasturba Road, 

Bangalore - 560001, India. 

1. We have audited the attached Balance Sheet of GMR Hyderabad International Airport 

Limited ('the Company') as at March 31,201 1 and also the Profit and Loss account and the 

Cash flow statement for the year ended on that date annexed thereto. These financial 

statements are the responsibility of the Company's Management. Our responsibility is to 

express an opinion on these financial statements based on our audit. 

2. We conducted our audit in accordance with auditing standards generally accepted in India. 

Those Standards require that we plan and perform the audit to obtain reasonable assurance 

about whether the financial statements are fke of material misstatement. An audit includes 

examining, on a test basis, evidence supporting the amounts and disclosures in the financial 

statements. An audit also includes assessing the accounting principles used and significant 

estimates made by Management, as well as evaluating the overall financial statement 

presentation. We believe that our audit provides a reasonable basis for our opinion. 

3. As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by the 

Central Government of India in terms of sub-section (4A) of Section 227 of the Companies 

Act, 1956, we enclose in the Amexure a statement on the matters specified in paragraphs 4 

and 5 of the said Order. 

4. As morefuIIy explained in Note I1 (24) of Schedule 20, in respect of duty credit entitlements 

under Servedfrom India scheme: 

a. The Company has utilized custom duty credit scrips amounting Rs. 12,904,767 against 

payment of import duty on eligible imports and recorded inventories at net amount i.e. it 

is not recording any income in relation to cwtom duty credit scrip entitlement and is 

adjusting it to cost of invento?ypurchased upon utilization. In our opinion, the Company 

should have recorded income and hentories purchases on gross bmis. 

b. Further as at March 31, 2011, the Compy is entitled for further custom hty credit 

scrip entitlements amounting to Rs. 243,294,667. Mlbnagement h estimated zbililizatr-on 

for eligible imports, which should have been accrued as income during the year ended 

March 31, 201 1 amounting to Rs. 186,377,630 (including Rs. 125,399,237 estimated to 

be utilised within the group as per tk scheme). 

ticcoF.Hin&, tk ofher C&mrating horn is mdetstcJted to m &eat of& 199,282,397. 

Maeew hrrs sot &ermined other e~weqwm-al impacts OR mcow of 

cons- of merids d c a ~ i Be m paq"dIe an the j?mmcirJI statenre&. 

Pdng &emrimtioff c$cweqw~W &pact we am m&e to commmt orr the$&k 

i-t on the CBCGCE--~~~ ~Wemmts. 

6-- 


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. . ir

5. Further to our comments in the Annexure referred to above, we report that: 

i. Except for matters as discussed in paragraph 4 above, we have obtained all the 

information and explanations, which to the best of our knowledge and belief were 

necessary for the purposes of our audit; 

ii. 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; 

iii. The balance sheet, profit and loss account and cash flow statement dealt with by this 

report are in agreement with the books of account; 

iv. kept for matters as discussed in paragraph 4 above, in our opinion, the balance sheet, 

profit and loss account and cash flow statement dealt with by this report comply with the 

accounting standards referred to in sub-section (3C) of section 21 1 of the Companies 

Act, 1956; 

v. On the basis of the written representations received fkom the directors, as on March 31, 

201 1, and taken on record by the Board of Directors, we report that none of the directors 

is disqualified as on March 31, 201 1 from being appointed as a director in terms of 

clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; 

vi. In our opinion and to the best of our information and according to the explanations given 

to us, the said accounts give the information required by the Companies Act, 1956, in the 

manner so required and subject to the adjustments, fury, that may arise on account of 

matters discussed in paragraphs 4 above the irnpf of which is present& 

mascertainable, the said accounts give a true and fair view in conformity with the 

accounting principles generally accepted in India: 

a) in the case of the balance sheet, of the state of affairs of the Company as at March 

31,2011; 

b) in the case of the profit and loss account, of the profit for the year ended on that date; 

and 

c) in the case of cash flow statement, of the cash flows for the year ended on that date. 

G-4 

For S.R.Batliboi &. Associates 

Firm registration number: 101 049W 


per Sunil Bhnm 

Partner 

Membership No.: 035 

Place: Bangalore 

Date: May 10,201 1 

Partner 

Membership No.: 0 1 5 590 


Date: May 10,201 1 


Page 2 of 5 


Annexure referred to in paragraph [3] of our report of even date 

Re: GMR Hyderabad International Airport Limited ('the Company') 

(i) (a) The Company has maintained proper records showing full particulars, including 

quantitative details and situation of fxed assets. 

(b) All fixed assets have not been physically verified by the Management during the year but 

there is a regular programme of verification which, in our opinion, is reasonable having 

regard to the size of the Company and the nature of its assets. As informed, no material 

discrepancies were noticed on such verification. 

(c) There was no substantial disposal of fixed assets during the year. 

(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 the 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) As informed, the Company has not granted any loans, secured or unsecured to companies, 

firms or other parties covered in the register maintained under section 301 of the 

Companies Act, 1956. Accordingly, the provisions of clauses (iii) (b) to (iii) (d) of &e 

Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the 

Company and hence not commented upon. f 

(iv) 

(vi) 

(b) As informed, the Company has not taken any loans, secured or unsecured fiom 

companies, f m or other parties covered in the register maintained under section 301 of 

the Companies Act, 1956. Accordingly, the provisions of clauses (iii) (f) and (iii) (g) of 

the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the 

Company and hence not commented upon. 

In our opinion and according to the information and explanations given to us, except 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 the 

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

and for the sale of services. The ~tivities of the Company do not involve sale of goods. 

During the course of our audit, we have not observed any major weakness or continuing 

failure to correct any major weakness in the internal control system of the Company in 

respect of these areas. 

According to the Wormation and explanations provided by the Management, there have 

been no m ~ or arrangements b rderred to in Section 301 ofthe A& during the year to 

be entered i~ the register required to be main- under that Mm. Am*&, the 

provisions of clime (v) (b) of the C m w (Auditor's Repcrt) &dm, 2003 (as 

amended) are not applicable to the Company. 

The Company has not accepted any deposits from the public. 



(vii) In our opinion, the Company has an internal audit system commensurate with the size 

and nature of its business. 

(viii) To the best of our knowledge and as explained, the Central Government has not 

prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 

of the Companies Act, 1956 for the products of the Company. 

(ix) (a) Undisputed statutory dues including provident fund, employees' state insurance, income- 

tax, wealth-tax, service tax, customs duty, excise duty, cess have generally been regularly 

deposited with the appropriate authorities though there has been a slight delay in a fav 

cases. The provisions relating to investor education and protection fund are not 

applicable to the Company. 

(x) 

Further, since the Central Government has till date not prescribed the amount of cess 

payable under section 441 A of the Companies Act, 1956, we are not in a position to 

comment upon the regularity or otherwise of the company in depositing the same. 

(b) According to the information and explanations given to us, no undisputed amounts 

payable in respect of provident fund, employees' state insurance, income-tax, wealth-tax, 

service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues 

were outstanding, at the year end, for a period of more than six months fiom the date they 

became payable. 

(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, 

wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are 

as follows: 

Name Of the 

statute 

Customs, Central 

Excise and Service 

Tax 

Customs, 

Excise and Service 

Tax 

Nature of dues 

Reversal of 

Cenvat Credit 

including penalty 

enalty equivalent 

Po service tax on 

bser Development 

Fee 

Building and Other 

Construction 

Workers' Welfare 

Cess Act, 1996. 

ess on Building 

Mines and Minerals Penalty and 

(Development an$ Segniorage fee 

Regulation) Act, for mines and 

1957 

mineraIs 

Amount 

(Rs) 

556,533,347 

747300'000 

252,026,054 

4,832,850 

Period to which 

the amount 

relates 

Various dates 

April 2008 to 

December 2008 

Various dates 

2004-05 


wkre 

dispute is pending 

The Commissioner 

of Customs, Central 

Excise & Service 

Tax Hyderabad 

The commissioner 

of Customs, Central 

Excise & Service 

Tax Hyderabad 

High Court of 

Andhra Pradesh 

Assistant Director of 

Mines & Geology 

Hyderabad 

The Company's accumulated losses at the end of the fInanoia1 year are less than fifty per 

cent of its net worth and it has not incurred cash losses in the current and immediately 

preceding financial year. 

-. 


(xi) 

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. 

(xii) According to the information and explanations given to us and based on the documents 

and records produced to us, the Company has not granted loans and advances on the 

basis of security by way of pledge of shares, debentures and other securities. 

(xiii) In our opinion, the Company is not a chit fund or a nidhi 1 mutual benefit fund / society. 

Therefore, the provisions of clause qxiii) of the Companies (Auditor's Report) Order, 

2003 (as amended) are not applicable to the Company. 

(xiv) In ow opinion, the Company is not dealing in or trading in shares, securities, debentures 

and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies 

(Auditor's Report) Order, 2003 (as amended) are not applicable to the Company. 

(xv) 

According to the infmation and explanations given to us, the Company has given 

guarantee for loans taken by subsidiaries fiom banks, the terms and conditions whereof 

in our opinion are not prima-facie prejudicial to the interest of the Company. 

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

applied for the purpose for which the loans were obtained. 

(xvii) According to the information and explanations given to us and on an overall examination 

of the balance sheet of the Company, we report that no funds raised on short-term basis 

have been used for long-term investment. 

(xviii) The Company has not made any preferential allotment of shares to parties or companies 

covered in the register maintained under section 301 of the Companies Act, 1956. 

(xix) The Company did not have any outstanding debentures during the year. 

(xx) The Company has not raised any money by public issues during the year. 

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair 

view of the financial statements and as per the infmation and explanations given by the 

Management, we report that no bud on or by the Company has been noticed or reported 

during the year. 

G-4 

For S.RBat.Iiboi & W t e s 

Firm 

a 

registration number: 10 1 049W 

Ch red Accountants 

I-- 

per dnil Bhumral 

Partner 


Date: May 10,201 1 

rahmayya 8r Co. 

gistration number: 0005 1 5s 

Membership No.: 01 5590 


Date: May 10,201 1 



GMR Hyderabad International Airport Limited 

Balance Sheet as at March 31,201 1 

(Amount In Ruoees) 

Schedule As at March 31,2011 As at March 31,2010 

L Source of Funds 

1. Shareholders' Funds 

a) Capital I 3,780,000,000 3,780,000,000 

b) Reserves and Surplus 2 1,070,000,000 1,070,000,000 

2. Loan Funds 

a) Secured I~ans 3 15,380,432,495 17,564,238,684 

b) Unsecured Loans 4 9,262,222,195 8,726,367,813 

29,492,654,690 31,140,606,497 

II. Application of Funds 

1. Fixed Assets 

a) Gross Block 5 25,962,869,597 28,343,982,529 

b) Less: Accumulated Depreciation / Amortisation 3,543,822,O 19 2,566,533,264 

c) Net Block 22,419,047,578 25,777,449,265 

d) Capital Work-m-Progress including Capital advances 19,919,055 237,620,948 

22,438,966,633 26,015,070,213 

2. Deferred tax Asset (net) (Refer Note I1 (13) of Schedule 20) 1,028.9 14,700 

3. Investments 6 1.495.5 12,2 10 270,224,350 

4. Current Assets, Loans and Advances 

a) Inventories 7 94,3 16,200 95,126,462 

b) Sundry Debtors 8 852,415,081 857,373.015 

C) Cash and Bank Balances 9 773,404,s 1 1 762,090,437 

d) Other Current Assets 10 12,794,858 7,579,976 

e) Loans and Advances 11 2,258,3 12,105 1,933.558,312 

3,991,243,055 3,655,728,202 

Less Current Liabilities and Provisions 

a) Liabilihes 12 1,087,149,641 1,698,190,806 

b) Provisions 13 15,759,687 13,l 70,030 

1,102,909,328 1,711,360,836 

Net Currcnt Assets 2,888,333,727 1,944,367,366 

5. Profit & Loss Account (Debit Balance) 1,640,927,420 2.9 10,944.568 

Notes to Accounts 20 

The schedules referred to above and the Notes to Accounts form an integral part of the Balance Sheet. 

This is the Balance Sheet referred to in our report of even date 

For S.R.BatKboi & Associates 

Firm registration number: 10 1049W 

ChamCCoun 

Partner 


Dare: May lO,20 1 1 

29,492,654,690 31,140,606,497 

For Brahmayya & Co. For and on behalf of the Board of Directors of 


Date: May 10,201 1 

Managing Director 

n 

c&nY secretary 

Place: Hyderabad 

Date: May 10.20 1 1 



Particulars 

I. Income 

Income from Services 

Other Income 

Less: Concession Fee 

Yet Income 

I. Expenditure 

Personnel Cost 

Operating Cost 

Administration Cost 

Finance Charges 

Depreciation and Amortisation (Refer Note II (4 @)) of Schedule 20) 

11. Profit 1 (Loss) Before Taxation 

'rov~sion for Taxation 

- Deferred Tax 

- Wealth Tax 

- Tax for earlier years 

V. Profit I (Lass) After Taxation 

idd: Balance in Profit and Loss Account brought forward from previous 

rear 

idd: Adjustment on account of Demerger [Refer Note II(5 (d)) of 

ichedule 201 

J. Deficit canied to Balance Sheet 

Sarnings per Share: 

Basic and Diluted (Refer Note II (12) of Schedule 20) 

Nominal Value per share 

Notes to Accounts 


Profit and Loss Account for the year ended March 31,2011 

The schedules referred to above and the Notes to Accounts form an integral part of the Profit and Loss Account 

This is the Profit and Loss Account referred to in our report of even date 

-e 

For S.RBatliboi & Associates For Brabmayya & Co. For and on behalf of the Board of Direct 

Finn registration number: 101 049W Firm registration number: 0005 15s 


Place.: Bangalore 

Date: May 10,201 1 


Date: May 10,201 1 

Schedule 

14 

15 

16 

17 

18 

19 

5 

20 

For the year ended 

March 31,2011 

5,165,563,721 

222,185,870 

5,387,749,591 

215,509,984 

5,172,239,607 

501,285,001 

845,344,786 

626,557,727 

2,008,644,009 

1 ,I 87,927,739 

5,169,759,262 


Date: May 10, 201 1 

2,480,345 

(1,028,914,700) 

29,365 

(8,478,3 18) 

1,039,843,998 

(2,910,944,568) 

230,173,150 

(1,640,927,420) 

2.75 

10 


(Amount in Rupees) 


March 31,2010 

4,512,187,620 

140,903,338 

4,653,090,958 

179,852,713 

4,473,238,245 

568,033,337 

969,236,363 

540,364,727 

2,115,552,943 

1,372,223,599 

5,565,410,969 

(1,092,172,724) 

3 1,528 

(1,092,204,252) 

(1,818,740,316) 

(2,910,944,568) 

CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure I-D-I Page 149 of 186 

(2.89) 

10

GMR Hyderahad International Airport Limited 

Cash flow statement for the year ended March 31,201 1 

ACASH FLOW FROM OPERATING ACTIVITIES 

Profit I (loss) before taxation 

Adjustments for: 

Depreciation and amortisation 

Unrcallsed foreign exchange loss 1 (gain) -(net) 

Interest income 

Interest cxpensc 

Dlvidcnd income 

Income fmm Investments 

Reversal of loss on ATF valuation 

Loss / (Profit) on sale / discarding of assets 

Liabilities no longer requtred written back 

Bad debts written off/ Provision for Bad Debts 

Adjustment on account of Demerger (Refer note 2) 

Operating Profit Before Working Capital Changes 

Adjustments lor : 

(Increase) /decrease in inventories 

(Increase) /decrease in sundry debtors 

(Increase) / decrease in loans and advances 

Increase I (decrease) in current liabilities 

Cash generated from Operations 

Taxes (Paid) 1 Refund Received 

Net cash generated in Operating Activities (A) 

CASH FLOW FROM INVESTING ACTIVITIES 

Purchase of Fixed Assets (including capital work in progress and capital advances) 

Sale of fixed assets 

Purchasc of lnvcstments m Subs~dianes 

Purchasc of ~nvcstmcnts in joint venturc 

Purchase of lnvestments in associatc companies 

Purchase of Current Investments - non trade 

Sale of current ~nvosanents - non trade 

Investment in margin money deposits (net) 

Advance to subsidiaries and joint ventures 

Refund of unsecured loan f?om subsidiairies 

Advance recoverable 6om other companies 

Invested as share application money 

Dividend received 

Income from investments received 

Interest received 

Net cash generated / (used) in Investing Activities (B) 

CASH FLOW FROM FINANCING ACTIVITIES 

RcfUnd of share application money 

Proceeds !?om long term borrowings 

Repayment of Long term borrowings 

Short term borrowings (net) 

Interest Paid 

Net cash used from Financing Activities ((3 

Net (Decrease) I increase in cash and cash equivalents (A + B + C) 

Cash and Cash Equivalents at the beginning of the year 

Less: Adjustment on demerger (Refer Note - 2) 

Cash and Cash Equivalents at the end of the year 


March 31,2011 

2,480,345 

1,187,927,739 

343,002 

(106,436,760) 

1,982,997,483 

(20,830,424) 

(34,266,203) 

15,582,937 

(14,582,512) 

36.48 1,687 

147,193,691 

3,196,890,985 

(5,465,005) 

(65,389,358) 

(4.71 3,939) 

(457,938,090) 

(533,506,392) 

80,686,95 1 

2,744,071,544 

(130,934,760) 

62,427.2 13 

(20,500,000) 

(1 58,498,700) 

(200,000) 

(7,574,635,540) 

7,624,635,540 

28,566,728 

(129,472,228) 

1.3 12,359285 

(100,000,OOO) 

(1 82,000,008) 

15,628,424 

34,266,203 

106,423,878 

888,066,035 

535,854,382 

(2,165,381,101) 

34,568,811 

(1,987,986,020) 

(3,582943,928) 

49,193,651 

698,4 16,062 

(9,3 12,549) 

738,297,164 

(Amount in Rupees) 


March 31,2010 

, 


(1,092,172,724) 

1,372,223,599 

(36,99 1,036) 

2,088,354.6 13 

(10,432.03 1) 

(28,345,826) 

(32,327,726) 

(565,201) 

(1 5,946,272) 

7,297,094 

2,251,094,491 

(36,197.532) 

(225,534.669) 

490,383,834 

(866,104,384) 

(637,452,752) 

(43,230,568) 

1,570,411,172 

(1,257,7 15,864) 

12,437,000 

(39,800,000) 

(47,535,000) 

(8,706,476,075) 

8,656476,075 

(21,687,788) 

(8,5 19.485) 

13.1 12,650 

15,645,245 

28,345,826 

36,57 1,845 

(1,319,145,571) 

(376,950) 

1,7 14,879,387 

(32,123,783) 

(2,102,532,589) 

(420,153,935) 

(1 68,888,335) 

867,304,397 

698,416,062 


I) Reconciliation of Cash and Cash equivalents: 

Components of Cash and Cash equivalents 

Cash and cheques on hand 

Balance with banks : 

- on Current accounts 

- on Deposit accounts 

- on Margin money deposits 

Cash and cash equivalents as per balance sheet (Refer Schedule 9) 

Less: Margin money deposits not considered as cash equivalents I 35,107,647 1 63,674,375 

Cash and cash equivalents considered for cash flow 738 f 97,164 1 698,416,062 

2) Company has undertaken a Scheme of Arrangement in the nature of demerger under section 391 to 394 of the Companies Act, 

1956, pursuant to which the Hotel division of the Company is vested into GMR Hotels and Resorts Limited with effect from April 01, 

2009, and this transaction is cons~ded as a non cash transaction for the purpose of cash flow statement except for adjustment of 

demerger disclosed in operating activities. (Refer Note II(5) of Schedule 20) 

3) Previous year's figures have been regrouped / rearranged to conform to those of the cumnt year. 

This is the Cash Flow Statement referred to in our report of even date 

1,353,733 

486,943,43 1 

250,000,000 

35,107,647 

773,404,811 

For S.R.Batliboi & Associates F For and on behalf of the Board of Directors of 

on number: 0005 15s 

per Sunil Bhumralkar 

Partner Director 

Membership No.: 035 14 1 

Place: Bangalore Place: Hyhbad 

Date: May 10,201 1 Date: May 10,201 1 


As at March 31,2010 

54.47252 1 

239,486,099 

404,457,442 

63,674,375 

762,090,437 


Schedule 1 


Schedules forming part of Balance Sheet as at March 31,2011 

Capital 

Authorised 

400,000,000 (March 3 1, 2010: 400,000,000) Equity Shares of Rs 10 each 

Issued, Subscribed and Paid-up 

378.000,000 (March 3 I, 2010: 378,000,000) Equity Shares of Rs. I0 each fully paid up 

[Of the above, 238,139,998 (March 3 I, 2010: 238,139,995) Equity shares fully paid up are 

held by GMR Infmwture Limited, the holding company]. 

Schedule 2 

Reserves and Surplus 

Capital Reserve (Refer Note I (I I) of Schedule 20) 

Schedule 3 

Secured Loans 

Term Loans - From Banks 

In Indian Rupees 

[Repayable within one year Rs. 360,000,000 (March 3 I, 2010: Rs. 360,000,000)] 

In Foreign Currency 

[Repayable w~thin one year Rs. 21 1,593,750 (March 31,2010: Rs. 213,703,125)] 

Term Loans from a Financial Institution 

[Repayable within one year Rs. 75,000,000 (March 31,2010: Rs. 75,000,000)] 

[Term loan from banks and financial institution are secured by mortgage of Leasehold right, 

title, interest and benefit in respect of Leasehold Land and first paripassu charge on all 

movable and immovable assets, operating cash flows, book debts, receivables, intangibles and 

revenues, both present and future, as well as assignment of all right, title, interest, benefits, 

claims and demands available under the concession agreement and other project documents, 

security interest in the Trust and Retention Account, Debt Service Reserve Account and 

fiuther secured by pledge of 164,149,015 and 28,660,938 equity shares, both present and 

future, held or to be held, upto 5 1% of the paid up share capital of the company, as the case 

may be, by both, the holding company and Malaysia Airports Holding Berhad (along with its 

associate) respectively] 

Cash Credit from a Bank 

(Secured by way of first paripassu charge by way of hypothecation of the stocks, consumable 

stores and spares, other movables including book debts, bills, outstanding monies receivable, 

both present and future and whole of the moveable properties including moveable plant and 

machinery, mach~nery spares, tools and accessories, whether stored or not or in the course of 

nans~t or on high seas or on order of delivery, but not limited to documents of title to goods.) 

As at 

March 31,2011 

4,000,000,000 

3,780,000,000 

3,780,000,000 

/Amount In Ruoees) 

As at 

March 31,2010 

As at As at 

March 31,201 1 March 31,2010 

1,070,000,000 1,070,000,000 

1,070,000,000 

As at 

March 31,2011 

8,044,138,000 

5,360,375,000 

1,675,862,000 

300,057,495 

15,380,432,495 


4,000,000,000 

3,780,000,000 

3,780,000,000 

As at 

March 31,2010 

9,600,000,000 

5,698,750,000 

2,000,000,000 

265,488,684 

17,564,238,684 


Schedule 4 

Unsecured Loans 

Short Term 

Bridge Loan from Banks 


Schedules forming part of Balance Sheet as at March 31,201 1 

Loans and Advances - Other than Short Term 

Loan from a subsidiary 

(Repayable within one year: Rs. 35,700,000 (March 31, 2010: Rs. 154,400,000) 

Interest Free Loan from Government of Andhra Pradesh ' 

Security deposits from Concessionaires 

Deferred Payments - Concession Fees ' 

Notes: 

1. Interest Free Loan received from Government of Andhra Pradesh is repayable 

in five equal installments commencing from 16th Anniversary of the Commercial 

Operations Date (March 23, 2008). 

2. Concession Fees is payable to Minishy of Civil Aviation in respect of fmt 10 years 

in 20 equal half yearly installments commencing from the 1 lth anniversary of the 

Commercial Operations Date (March 23,2008). Concession Fee from the I I th 

year is payable on half yearly basis. 

As at 

March 31,2011 

4,420,000,000 

845,739,660 

3,150,500,000 

289,908,107 

556,074,428 

9,262,222,195 


(Amount . - . -.. . In .. . Runees) - - - . - - 

As at 

March 31,2010 

4,000,000,000 

899,997,309 

3,150,500,000 

328,430,392 

347,440.1 12 

8,726,367,813 - 


CMR Hydcrabad Inlcrnadonal Alrporl Umlled 

Schedule formlog pan of Balance Shcel .r st Mamb 3I,m11 

Schedule 5 

Plrcd Asrar 

Dcscrlptloa 

lmpmvcmcms to Latchold Land 

Rumays 

RmQ 

Butldmgs on Lcarchold Land 

EktncaI Lnnallstxm, 

Furnirloc and FIXIW 

lnunglbk nmts - S ohm 

Work-m-Prn&avs mcludlng 

Nola: 

I) During lhc pviourycar, lhc Culnpilny had performed rcconeiliation ofaccounts with vendon and had a h updated the Fixed Allcs Rcgiaer. According&, adjustments such ur rcchsdf~alion and milc back ufcxccsr pmviains (n*) had kcn donc. 

ALw Le Cmnpny had upitalirad Aviation Turbine Rcl amounling lo Rr. 93,181,667 which was diactmcd as lnvenlory as a1 March 3l,2W9. 'Ihc dcpsiation iwct on account ofthcsc adjumnonls aggcgafes lo Rs. 64,282,872 (Refcr Now 11 (4 (b)) d 

Schcmll0 20). 

2) Mdihonr tncludo bdnga -1 crpilrld Rr. 9.012.W (March 3 1,2010: Rr 77.491.409). 

3) Capital w k in p m m iochded caotral adnm orb. 3,313.949 (March 31 2010: Rr. 22.140.75l) 

Ducriptlon of aaeU mnderd 

6) Refer Nulc 11 (6) ofSchcdule 20 

A l o 

1.107.771,338 

3.916.000.109 

1,329,840,924 

~d~wtmrou * 

(8.48 1.423) 

267.747 

G m Block As a1 Dfpmclalbn As LI.I 

April 01,ZOlO April01,ZOlO 

I 2 265 019 1 36 920 

C m Block 

A~~IUOOS~ ~l~hdlrrn~s 

15.71 8.278 

- 

- 

- 

2011 

1.107.771.331 

3.907.518.686 

1,345,826,949 

Depmiarlon I Alnonlnlloo 

~d~lutmentr" 

A r~Ia~OIO 

or the year 

On 

Wilhdraw8ls 

37,408,650 

262.355.563 

42,620.540 

: ll (5 (c)) of Schedule 201 

16 

4.1 14 

18,499,781 

130.522.909 

21,920,926 

- 

~s a1 

March 31.2011 

55,908,431 

392,978,4118 

64.Y5.480 

As al 

Marcb 31,2011 

1.051 862.907 

3514 640.198 

1,281,281,469 

, . - -. .. ... . .-r ---, 

Net Block 

&.I 

March31,1010 

1,070,362,688 

3,653,644,546 

1,287,220,384 





Schedule 6 

Long Tenn (at mt, unquoted, trade) 

A. In shares of Subsidiary Companies 

Hyderabad Menzles Air Cargo Private Limited 

520.200 (March 31,2010: 520,200) Equity shares of Rs. 10 each llly paid up 

18,735 (March 3 1,2010: 18,735) Preference Shares of Rs. 10 each fully paid up 

GMR Hyderabad Aerotropolis Lim~ted 

2,180,000 (March 3 1,2010: 2,180,000) Equity Shares of Rs. 10 each fully paid up 

GMR Hyderabad Airport Resource Management Lunrrea 

50,000 (March 3 1.20 10: 50,000) Equity Shares of Rs. 10 each fully paid up 

Hyderabad Airport Security Services Limited 

12,500,000 (March 3 1.20 10: 12,500,000) Equity Shares of Rs. 10 each fully paid up 

[3,750,000 (March 3 I, 201 0: 3,750,000) Equity Shares of Rs. 10 each fully paid up have been 

pledged with bankers against the loan taken by the Subsidiary] 

GMR Hyderabed Aviation SEZ Limited 

1,900,000 (March 3 1, 2010: 1,900,000) Equity Shares of Rs. 10 each fully paid up 

GMR Hyderabad Multiproduct SEZ Limited 

50,000 (March 3 1, 20 10: 50,000) Equity Shares of Rs. 10 each fully paid up 

GMR Hotels and Resorts Limited 

109,658,916 (March 3 1,2010: 50,000) Equity Shares of Rs. 10 each fully paid up 

Hyderabad Duty free Retail Limited 

2,000,000 (March 3 1, 2010: Nil) Equlty Shares of Rs. 10 each fully paid up 

GMR Aiion Handling Semces Company Limited 

50,000 (March 31, 2010: Nil) Equity Shares of Rs.10 each llly paid up 

B. In shares of Joint Venture 

MAS GMR Aerospace Engineering Company Limited 

20,603,370 (March 3 1, 2010: 4,753,500) Equity shares of Rs. 10 each fully paid up 

C. In shares of Associate Companies 

Asia pacific Flight Training Academy Limited 

20,000 (Marcb 3 1,201 0: Nil) Equity Shares of Rs. 10 each hlly paid up 

Current (uoquoted, at Cost or net reatisable value, whichever is lower) 

other than trade (Refer Note n(7) of Schedule 20) 

Birla Sunlife Cash plus - Institutional premium - Growth option 

Nil units (March 31,2010: 3,397,870.22 units) of face value of Rs. 10 each 

Aggregate Net Asset value as at March 31,201 1: Rs.Nil (March 3 I, 2010: Its. 50,043,833) 

Total Investments @+E) 

D = (A+B+C) 

(E) 

As at 

March 31,2011 

5,202,000 

187,350 

21,800,000 

500,000 

125,000,000 

19,000,000 

500,000 

1,096,589,160 

20,000,000 

500,000 

1,289,278,510 

206,033,700 

200,000 

1,495,512,210 

1,495,512,210 


(Amount In Rupees) 

As at 

March 31,2010 

5,202,000 

187,350 

2 1.800,000 

500,000 

125,000,000 

19,000,000 

500,000 

500,000 

172,689,350 

47,535,000 

220,224,350 

50,000,000 

50,000,000 

270,224,350 



Schedules forming part of Balance Sheet as at March 31,2011 

Schedule 7 

Inventories 

(valued at lower of cost and realisable value) 

Food and beverages 

Stores, spare parts and wnsurnables 

> 

. Schedule 8 

Sundry Debtors 

(Uns=&) 

Debtors outstanding for more than six months 

Coasidered good 

Considered doubtful 

Other Debts 

Considered good 

Less: Provision for doubtful debts 

Included in Sundry Debtors are dues from Companies under the Same Management: 

Hyderabad Menzies Air Cargo Private Limited 

Schedule 9 

Cash and Bank Balances 

Cash on hand 

Cheques on hand 

Balances with scheduled banks 

- Current accounts 

- Deposit accounts 

- Margin money * 

*The margin money deposits are towards letters of credit and Bank guarantees issued 

by the bankers on behalf of the Company. 

Schedule 10 

Other Current Assets 

Interest accrued on deposits 

Grant accrued 

Dividend receivable from subsidiary (Refer Note 11 (8 (a)) of Schedule 20) 

* 

As at 

March 31,2811 

94,3 16,200 

94,316,208 

As at 

March 31,2011 

1 17,310,029 

36,48 1,687 

735,105,052 

888,896,768 

36,48 1,687 

852,415,081 

33,717,760 

As at 

March 31,2011 

1,353,733 

486,943,43 1 

250,000,000 

35,107,647 

773,404.81 1 

As at 

March31,2011 

1,985,252 

400,000 

10,409,606 

12,794,858 



As at 

March 31,2010 

6,457.72 1 

88,668,741 

95,126,462 

As at 

March 31,2010 

153,347,376 

704,025,639 

857,373,015 

857,373,015 

14,032,375 

As at 

March 31,2010 

1,273,370 

53,199,151 

239,486,099 

404,457,442 

63,674,375 

762,090,437 

As at 

March 31,2010 

1,972,370 

400,000 

5,207,606 

7,579,976 




Schedule 11 

Loans and Advances (Refer Note I1 (8) of Schedule 20) 

(Unsecured, considered good) 

Loans to employees 

Advance recoverable h m other companies # 

Advances to subsidiaries* 

Advances to joint venture** 

Advances recoverable in cash or in kind or for value to be received 

Advances recoverable from Passenger Security Fees (Security Component) Fund 

(Refer Note 11 (6) of Scheduk 20) 

Deposits - others 

Balances with Customs, Exc~se, etc 

Advance taxes (net of provisions) 

# includes Working Capital Credlt by way of deferment of revenue share receivable of 

Rs. 100,000,000 (March 31,2010: Rs. Nil) and Share Application Money of Rs. 98,000,000 

(March 3 1, 2010: Rs. Nil) 

* Includes Share Application Money of Rs. 84,000,000 (March 31,2010: Rs. Nil) 

** Includes Share Application Money of Rs. 1,690,008 (March 3 1,2010: Rs. 1,690,000) 

Schedule 12 

Liabiities 

Sundry Creditors 

- Due to Micro, Small and Medium Enterprises (Refer Note 11 (14) of Schedule 20) 

- Due to other than Micro, Small and Medium Enterprises 

Advances from Concessionaires 

Retention Money 

Interest accrued but not due 

Other liabilities 

Schedule 13 

Provisions 

For wealth tax (net of advance taxes) 

For gratuity (Refer Note I1 (1 I @)) of Schedule 20) 

For superannuation fund 

For compensated absences 

As at 

March 31,2011 

13,266,357 

198,000,000 

493,501,712 

1,690,008 

302,223,3 18 

940,665,388 

129,696,626 

121,333,394 

57,935,302 

2,258,312,105 

As at 

March 31,2011 

665,763,462 

665,763,462 

6,937,942 

290,434,255 

2,299,137 

121,714,845 

1,087,149,641 

As at 

March 31,2011 

29,365 

1,849,261 

13,881,061 

15,759,687 


(Amount In Ruwes) - ... 

As at 

March 31,2010 

4,096.16 1 

11 1,199,241 

170,520,244 

322,644,673 

945,316,900 

129,08 1.607 

120,224,613 

130,474,873 

1,933,558,312 

..-LA L-. 

As at 

March 31,2010 

877,820,453 

877,820,453 

35,998,956 

663,925,748 

7,287,671 

113,157,978 

1,698,190,806 

As at 

March 31,2010 

330,938 

2,153,895 

67 1,242 

10,013,955 

13,170,030 


GMR Hyderaoaa lnternaoona~ ~~rport Limited 

Schedules forming part of Profit and Lms Account for the year ended March 31,2011 

- Schedule 14 

Income from Services 

Aeronautical (Refer Rote 11 (4 (a)) of Scbcdule 20) 

Non Aeronautical 

Schedule 15 

- -- - - 

Other Income 

Intemt on 

Bank Deposits 

[Tax Deducted at Source Rs. 125,272 (March 31 2010: Rs. 822,364)J 

Othen 

[Tax Deduued at Source Rs. 1,513,%6 (March 31 2010: Rs. 424.837)] 

Dividend fhm Subsidiary 

Incomc fran current In-mts 

Liabilities no longer required written back 

Reved of loss on revaluation of invmtq 

Gain on Exchange Fluehcation 

Pmfit on Sale / Discarding of Assets 

Miscellaneous Income 

Schedule 16 

Penonnel Coat 

Salancs, Bonus and Olher Allowanas (Refcr Note 11 (4 (c)) and 11 (5) of Schedule 20) 

Conetbutron to Pmvrdcnt fund and other Lnds (Refer Note I1 (I I (a)) of Schedule 20) 

Conrnbution to Supannuation fund (Refer Notc I1 (I I (a)) of Schedule 20) 

Conhibuhon to Gratuity hold (Refer Notc 11 (1 I @)) of W ule 20) 

Staff welfare expenses 

Traimng chergcs 

Schedule 17 

I 

Operating Coat 

Openltd Fee 

Operating and Maintenance expenses 

Operations-Manpower Outsourcing Charges 

Scores and spars consumed (Refer Note I1 (23) of Schedule 20) 

Insurance 

Repairs and Maintenance 

Buildrngs 

Plant and Machinery 

IT Systems 

Others 

Bus Hire Chgcs 

Elcchicity and Waicr Charges 

Housekeeping Charges 


March 31,2011 


March31.2011 

. For the year ended 

March31,2011 

407.514,181 

14,722,674 

8,914,139 

1,834,968 

56,702,079 

1 1,5%,960 

SOlJ85.001 


March3l.tOll 


For the year emled 

March 31, .RllO 


March 31,2010 


March 31,2010 

441,431,122 

l5351.124 

8,610,160 

1,958,034 

86,706,844 

13,976,053 

568,03337 




Schedules forming part of Profit and Loss Account for the year ended March 31,201 1 

Schedule 18 


Rent 

Rates and Taxes 

Advcmsement 

Consultancy and Other Professional Charges 

Travelling and Gmveyanw 

Ro~~mwrac~on 

D~rectors' 

Schedule 19 


March 31,2011 

Finance Charges 

Interest on. 

F~xed Penod Loans fmm Banks* (Refer Note 11 (4 (d)) of Schedule 20) 1,710,399,473 

F~xed Pencd Loans hm F~nanc~al Insl~lut~ons 210,136,854 

Working capllal 514,067 

Olhrrs (Refer Note I1 (6) of Scheduk 20) 6 1,947,089 

Other finance charges 25.646.526 

* Net of lntcrcst reimbwscmentofRs 95,195,616 (March 31,2010: Rs. Nil) 


March 31,2011 

55,635,471 

72,878,857 

10,867,439 

49,668,872 

122,998,489 

lv Audilun (ReferNace 11 (17) of Schedulc 20) 

Sitting Fees 

2,338,984 

~,Ooo 

Communication Expenses 24,835,196 

Oflice Maintenance (Refer Note 11 (6) of Schedule 20) 34,295,848 

Security Charges 48,347.637 

Printing and Slationcry 5,423,405 

Reauitmenr charges 8,395,772 

Event management expenses 12, 894,285 

Community Development 11,222,971 

Loss on sale I d~scarding of Asscts 

Bad Deb Wntten Off 

15,582,937 

Prov~sion for Bad & Doubtfil Deb 

Loss on cxchangc fluctuation 

36,48 1,687 

M~scellaneous Expenses (Refer Note 11 (4 (c)) of Schcdule 20) 114,049,877 

626,557,727 

2W8.644.009 

(Amount In Ruueesl 


March 31,2010 

50 ,2 24,007 

80,215,848 

20,222,653 

138,790,176 

62,626,538 

I ,987,500 

780,000 

29,559,918 

37,521,320 

9332,884 

9,760,879 

2365,688 

1.1 63,679 

11,107,920 

7,297,094 

14.470.1 13 

62.938.510 

540,364,727 


March 31,2010 

1,827,379,874 

239,509,991 

677,532 

20,787,216 

27,198,330 

2,115552943 




Schedule 20: Notes annexed to and forming part of the accounts as at and for the year ended March 31,201 1 

(All amounts in Indian Rupees except as otherwise stated) 

Description of business 

GMR Hyderabad International Ailport Limited ('GHIAL' or 'the Company'), was incorporated on December 17, 

2002, for managing the operations of Rajiv Gandhi Hyderabad International Airport. 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. 

I Statement of Significant Accounting Policies 

1. Accounting Assumptions: 

The financial statements have been prepared to comply in all material respects with the Notified accounting 

standards by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of 

the Companies Act, 1956. The financial statements are prepared in accordance with the historical cost 

convention on an accrual basis. The accounting policies have been consistently applied by the Company and 

are consistent with those used in the previous year. 

2. Use of estimates: 

The preparation of financial statements in conformity with generally accepted accounting principles 

requires management to make estimates and assumptions that affect the reported amounts of assets and 

liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of 

operations during the reporting period. Although these estimates are based upon management's best 

knowledge of current events and actions, actual results could differ from these estimates. 

3. 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. 

a) Revenue from Aeronautical and Non Aeronautical operations are recognised on accrual basis net of 

service tax, applicable discounts and coIlection charges, when services are rendered and it is probable 

that an economic benefit will be received which can be quantified reliably. 

b) Interest income is recognised on a time proportion basis taking into account the amount outstanding and 

the rate applicable. 

c) Dividend is recognised when the shareholders' right to receive payment is established by the balance 

sheet date. Dividend from subsidiaries is recognised even if same are declared after the balance sheet 

date but pertains to period on or before the date of balance sheet as per the requirement of Schedule VI 

of the Companies Act, 1956. 

d) Revenue from sale of SFIS scrips is recognised on transfer to group companies as per agreed terms and 

conditions. 

4. 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 and is recognised as charge to the Profit and Loss Account. 

r 


Page 1 of 27 



Schedule 20: Notes annexed to and forming part of the accounts as at and for the year ended March 31,2011 


5. Fixed Assets: 

Fixed Assets are stated at cost net of cenvat credit less accumulated depreciation. Cost of acquisition is 

inclusive of freight duties levies and all incidental expenditure attributable to bringing the asset to its 

working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes 

substantial period of time to get ready for its intended use are also included to the extent they relate to the 

period till such assets are ready to be put to use. 

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

progress. 

Exchange differences arising on reporting of the long-term foreign currency monetary items at rates different 

f?om those at which they were initially recorded during the period, or reported in the previous financial 

statements are added to or deducted fiom the cost of the asset and are depreciated over the balance life of the 

asset, if these monetary items pertain to the acquisition of a depreciable fixed asset. 

6. Depreciation: 

Depreciation is provided on straight line method at the rates based on the estimated useful lives of the assets 

or those prescribed under Schedule XIV of the Companies Act 1956, whichever is higher. Individual assets 

costing less than Rs. 5,000 are hlly depreciated in the year of purchase. 

Leasehold improvements are amortised over shorter of estimated useful lives or Lease period. 

Depreciation on adjustments to the historical cost of the assets on account of foreign exchange fluctuations, 

if any, is provided prospectively over the residual useful life of the asset. 

7. Intangibles: 

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. 

8. Impairment: 

All fmed assets are assessed for any indication of impairment at each balance sheet date based on internal / 

external factors. On any such indication the impairment loss (being the excess of canying value over the 

recoverable value of the asset) is immediately charged to the Profit and Loss Account. The recoverable 

amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated 

fbture cash flows are discounted to their present value at the weighted average cost of capital. After 

impairment, depreciation is provided on the revised canying amount of the asset over its remaining useful 

life. 

9. Inventories: 


Inventories are valued at lower of cost and net realisable 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. 

Page 2 of 27 





10. Foreign Currency Transactions: 

Foreign currency transactions are recorded in the reporting currency, at the exchange rates prevailing on the 

date of the transaction. Current assets and current liabilities are translated at the exchange rate prevailing on 

the balance sheet date and the resultant gain / loss is recognised in the fmancial statements. 

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are 

reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at 

fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates 

that existed when the values were determined. 

Long term foreign currency monetary assets and liabilities which does not relate to acquisition of fxed 

assets are translated at the exchange rates prevailing on the balance sheet date and the resultant exchange 

differences are accumulated in the foreign currency monetary item translation reserve and amortized over the 

balance period of such long term asset/liability. 

Monetary assets and monetary liabilities other than long term are translated at the exchange rate prevailing 

on the balance sheet date and the resultant gainlloss is recognised in the financial statements. 

In case of Forward Exchange Contracts or any financial instruments i.e. in substance a forward exchange 

contract to hedge the foreign currency risk which is on account of fm commitment and / or is a highly 

probable forecast transaction the premium or discount arising at the inception of the contract is amortized as 

expense or income over the life of the contract. 

11. 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 Capital Reserve. 

12. Investments: 

Investments that are readily realisable and intended to be held for not more than a year are classified as 

current investments. All other investments are classified as long-term investments. Long-term investments 

are stated at cost except where there is a diminution in value other than temporary, in which case the 

carrying value is reduced to recognize the decline. Current investments are valued at lower of cost and fair 

value determined on an individual investment basis. 

13. Retirement and Other Employee Benefits: 


a) Retirement benefits in the form of Provident Fund and Superannuation Fund is a defined contribution 

scheme and the contributions are charged to the Profit and Loss Account of the year when the 

contributions to the respective hds are due. There are no other obligations other than the contribution 

payable to the respective funds. 

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation 

on projected unit credit method made at the end of each financial year. 

c) Short term compensated absences are provided for based on estimates. Long term compensated 

absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected 

unit credit method. 

d) Actuarial gainsllosses are immediately taken to profit and loss account and are not deferred. 

Page 3 of 27 



Schedule 20: Notes annexed to and forming part ofthe accounts as at and for the year ended March 31,201 1 


14. Borrowing Costs: 

Borrowing costs that are attributable to acquisition construction or production of a qualifying asset are 

capitalized as a part of cost of such asset. All other borrowing costs are recognized as an expense in the year 

in which they are incurred. 

15. Earnings per Share: 

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity 

shareholders (after deducting attributable taxes) 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. 

16. Taxes on Income: 

Tax expense comprises of current tax and deferred tax. Current income tax and deferred 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 

recognised 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 realised. In situations where the Company has 

unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is 

virtual certainty supported by convincing evidence that they can be realised against fbture taxable profits. 

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes 

unrecognized 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 canying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes - 

down the canying 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 

deferred tax asset can be realized. Any such writedown 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. 

17. Operating Leases: 


Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased 

item, are classified as operating leases. Lease payments under operating lease are recognised as an expense 

in the Profit and Loss Account on straight line basis over the lease term. 

Page 4 of 27 





18. Provisions: 

A provision is recognised 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. 

19. Cash and Cash Equivalents: 

Cash and cash equivalents for the purposes of cash flow statement comprise of cash at ban^ ana m hand and 

short-term investments with an original maturity of three months or less. 

20. 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-1 1, 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. 

(THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK) 


Page 5 of 27 





I1 NOTES TO ACCOUNTS: 

1. Contingent Liabilities not provided for: 

a) Bank Guarantee outstanding in respect of customs and others Rs. 869,556,139 (March 3 1, 2010: Rs. 

690,774,149) 

b) Corporate guarantee amounting to Rs. 1,400,000,000 (March 3 1,20 10: Rs. Nil) 

c) Indirect Taxes under dispute: Rs. 969,668,726 (March 31, 2010: Rs. 964,835,876) details are given as 

below: 

i. The Company had received an order from the Offlce of Commissioner of Customs, Central Excise 

and Service Tax dated January 29, 2010 on irregular availment of the Cenvat amounting to Rs. 

3 11,048,354 (March 3 1,2010: Rs. 3 1 1,048,354). The order also includes penalty of Rs. 3 1 1,100,000. 

ii. The Company has received a notice from the office of the Joint Commissioner of Labour for 

payment of BuiIding and other construction workers' Welfare Cess @ 1% of the cost of construction 

of Airport amounting to Rs. 252,026,054 (March 31,2010: Rs. 252,026,054). 

iii. The Company has received an order h m 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 31,2010: Rs. 74,300,000) towards penalty on delay in payment of service tax on 

the UDF. 

iv. Commercial Department has withheld an amount of Rs. 16,361,468 (March 31, 2010: Rs. 

16,361,468) from VAT refundable out of various claims submitted by the company for want of proof 

of payment of VAT by the various contractors. The Management has approached the contractors and 

is in the process of submitting the proof of payments of VAT obtained from them to the Department. 

v. The Company has received a notice from the office of the Asst. Director of Mines and Geology 

dated February 3, 201 1, as per which the Company is liable to pay an amount of Rs. 4,832,850 

(March 31, 2010: Rs. Nil) towards the seigniorage fee and penalty thereon for the mines and 

minerals used in construction of Compound wall. 

Based on the internal assessment and / or legal opinion, the Management is confident that for the above 

mentioned contingent liabilities, no provision is required to be made as at March 3 1,20 1 1. 

2. Capital Commitments: 


Estimated Value of contracts remaining to be executed on capital account not provided for (Net of 

Advances) Rs. 154,685,039 (March 31,2010: Rs. 272,949,039) 

3. As per the conditions precedent to disbursement of loan, the Company has entered 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 3 1,201 1 is Rs. 5,360,375,000 (March 

31,2010: Rs. 5,698,750,000). Since the critical terms of the IRS and the principal term loan are same, based 

on the 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. 

Page 6 of 27 





4. Prior period items: 

a) Revenue for the year ended March 31, 2011 is net of service tax on User Development Fee (UDF) 

pertaining to previous year amounting to Rs. Nil (March 31,2010: Rs. 123,880,206). 

b) Depreciation for the year ended March 3 1,201 1 includes amount pertaining to previous year amounting 

to Rs. Nil (March 3 1,2010: Rs. 64,282,822). 

c) Personnel cost for the year ended March 3 1,201 1 includes amount pertaining to prior years amounting to 

Rs. Nil (March 3 1,201 0: Rs. 4,984,000). 

d) Finance charges for the year ended March 3 1,20 11 includes interest pertaining to prior years amounting 

to Rs. Nil (March 3 1,2010: Rs.60,652,245). 

e) Administrative expenses for the year ended March 3 1,20 1 1 includes amount pertaining to prior years Rs. 

16,735,289 (March 3 1,2010: Rs. Nil). 

5. Disclosure on Discontinuing Operations: 

a) In accordance with the Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956, 

as approved by the Hon'ble High Court of Andhra Pradesh vide order dated June 22, 2010, the Hotel 

division of the Company, has been transferred to and vested with GMR Hotels and Resorts Limited 

(GHRL), the subsidiary company, with effect fkom appointed date i.e. April 1,2009. The said order has 

been filed with the Registrar of Companies, Andhra Pradesh on September 25, 2010. The scheme has 

accordingly been given effect to in these accounts. 

Statement of Value of Net Assets of the Hotel Division as at April 01, 2009 (i.e. Appointed Date) 

based on which equity shares have been issued by GHRL. 

Cash and Bank Balances 


Page 7 of 27 






b) The Company has transacted and accounted for the same during the previous year pertaining to the 

operations of the hotel division in trust. The net loss for the previous year has been adjusted in the profit 

and loss account during the year. The condensed profit and loss account relating to the Hotel division for 

the period from April 1,2009 to March 3 1,20 10 is as under: 

c) The carrying amounts of assets and liabilities of the Hotel Division as at March 31, 2010 which have 

been reduced from the respective balances as on the reporting date are as under: 

Page 8 of 27 




[All amounts in Indian Rupees except as otherwise stated) 

d) Profit for the year ended March 3 1,201 0 in respect of dernerger of Hotel Division: 


e) Consequent to the demerger of Hotel Division, the figures for the current year are not comparable with 

the corresponding figures of the previous year. 

6. The Passenger Service Fee (PSF) charged from the departing passengers has two components viz. 

Facilitation Component (FC) and Security Component (SC). Ministry of Civil Aviation (MoCA) has issued a 

Standard Operating Procedure (SOP) for accounting / audit of PSF (SC), according to whch amounts 

collected towards PSF (SC) are held by the Company in fiduciary capacity on behalf of the Government of 

India and is required to be deposited separately in an escrow account, to be utilised for meeting the security 

related expenses of the Airport. 

The PSF (SC) accounts are required to be maintained separately in accordance with the procedures laid 

down in SOP and are subject to audit by the Comptroller & Auditor General of India (C&AG). Accordingly, 

these accounts exclude the following PSF (SC) Balances, which have not been audited by the Statutory 

Auditors of the Company: 

Page 9 of 27 





The Company has debited the following amounts to the PSF (SC) Fund: 

Particulars 

Fixed assets 

Fixed assets transferred back by the Company (Refer note i below) 

Total 

Personnel Cost 


Interest cost 

Expenditure charged back to the Company (Refer note i below) 

Total 

Notes: 

2010-1 1 

- 

- 

- 

6,230,288 

69,078,361 

- 

75,308,649 


2009-10 

56,393,754 

(106,535,221) 

(50,141,467) 

15,259,001 

10,202,65 1 

68,567,584 

(17,304,464) 

76,724,772 

i) Pursuant to certain clarifications issued by the Ministry of Civil Aviation (MoCA), Government of India 

per circular no. 13028 1 001 1 2009-AS dated January 08,2010 (as amended vide clarification dated April 

16, 2010), certain security related expenditure and fixed assets transferred to PSF (SC) account during 

earlier years have been charged back 1 recovered to the books of the Company in the previous year 2009-10 

amounting to Rs. 17,304,464 and Rs. 106,535,221 respectively. 

ii) The Company has represented to MoCA for allowing certain expenses such as land side security cost, 

security related consultancy expenses and other administration costs which are presently not covered as per 

above circulars and currently these expenses debited to PSF (SC) Account are Rs. Nil (March 3 1,2010: Rs. 

166,299,952). On the basis of discussions and representation to MoCA, management believes it will be 

able to obtain the permission from MoCA to meet these expenses through PSF (SC) Account, accordingly 

no fiu-ther adjustments have been considered necessary. 





7. Details of Investments (current - other than trade - unquoted) purchased and sold during the year: 

Description 

Cost of Acquisition 

Units 

Amount 

Units 

Sales 

Amount 

IDFC Cash Fund - Super Inst 68,589,004 782,370,294 68,589,004 786,435,094 

Plan C - Growth (16,698,325) (180,000,000) (16,698,325) (180,581,731) 

IDFC Cash Fund - Money Plan 

C - Growth 

12,799,020 140,063,5 14 12,799,020 141,370,294 

Birla Sun Life Cash Manager 

Institutional Plan- Growth 

2,862,422 

(8,120,783) 

50,079,5 10 

(120,000,000) 

Birla Sun Life Savings Fund 90,642,645 1,370,000,000 

Instl. - Growth (38,003,898) (650,287,157) 

Birla Sun Life Cash Plus Instl. 61,052,322 9 16,200,000 

Prem. - Growth (82,497,453) (1, 190,000,000) 

Birla Sun life Cash Plus - 4,564,549 80,OI 1,516 

Operations - Growth (2 1,966,826) 

P (320,000,000) 

ICICI Prudential Institutional 1,357,343 191,200,000 

Liauid Plan-Su~er Institutional 

~rAwth (93,302,194) (1,705,882,802) , 

ICICI Prudential Liquid Super 

Institutional Plan- Growth 

7,290,737 

(3,740,392) 

1,013,725,668 

(505 ,000,000) 

ICICI Prudential Flexible 

Income Plan Premium - Growth 

1,980,677 

(1,476,748) 

340,242,126 

(250,237,239) 

HDFC Liquid Fund - Premium 

Plan - Growth 

9,428,908 

(37,45 1,9 14) 

179,000,000 

(675,000,000) 

UTI Liquid Cash plan 

Institutional-Growth Option 

396,666 

(1,166,223) 

6 14,865,698 

(1,718,200,002) 

UTI Treasury Advantage Fund - 

Institutional Plan (Growth 

96,350 120,277,213 

Option) (1 6,222) (20,002,224) 

UTI Liquid Cash Institutional - 

Growth 

127,433 200,700,000 

- 

Axis Liquid Fund - Growth 543,414 580,999,999 

Tata Liquid Fund - Growth 205,536 

Reliance Liquid Fund - Growth 7,894,561 

IDFC Cash Fund - Inst Plan B- 

Growth (2,35423 1) 

HDFC Operations Liquid Fund 30,268,03 1 

- Growth (33,203,434) 

364,300,001 

115,100,000 

(37,500,000) 

565,500,000 

(604,000,000) 

2,862,422 

(8,120,783) 

90,642,645 

(38,003,898) 

6 1,052,322 

(79,099,582) 

4,564,549 

(21,966,826) 

1,357,343 

50,352,819 

(120,055,221) 

1,377,645,808 

(655,695,240) 

919,427,579 

(1,141,872,424) 

80,621,163 

(320,463,249) 

193,121,916 

pp 

(93,302,194) 

7,290,737 

(3,740,392) 

1,980,677 

(1,476,748) 

9,428,908 

(37,45 1,914) 

396,666 

(1,166,223) 

96,350 

(16,222) 

127,433 

543,414 

205,536 

(1,709,879,548) 

1,017,589,279 

(505,873,005) 

341,025,668 

(250,998,838) 

180,044,220 

(678,736,967) 

6 16,849,589 

(1,724,395,230) 

120,565,695 

(20,046,026) 

201,305,502 

583,267,405 

- 

366,257,295 

7,894,561 116,518,198 

(2,354,23 1) 

30,268,03 1 

(33,203,434) 


(37,531,155) 

566,504,218 

(604,964,362) 

Page 11 of 27 



Schedule 20: Notes annexed to and forming part of the accounts as at and for the year ended March 31,201 I 


Notes: Previous year figures are mentioned in brackets. 

(THIS SPACE HAS BEEN INTENTIONALLY LElT BLANK) 


Page 12 of 27 





8. Loans and Advances: 

a. Advances due from companies under the same management: 

Name of the Company 




GMR Hyderabad Aerotropolis Limited 

GMR Hyderabad Aviation SEZ Limited 


Hyderabad Duty Free Retail Limited 

March 31,2011 

10,409,606 

66,150,000 

1,690,008 

52,106,758 

133,847,016 

226,397,938 

15,000,000 

b. Maximum amount due during the year ended h m companies under the same management: 

Name of the Company 








9. The Company is engaged in operating the airport and related activities, which in the context of Accounting 

standard 17- Segment reporting, notified under Section 21 1 (3C) of the Companies Act, 1956 is considered 

as single business segment. Hence, reporting under the requirements of the said standard does not arise. 

(THIS SPACE HAS BEEN INTENTIONALLY LEIV BLANK) 


March 31,2010 

5,207,606 

66,150,000 

168,605,187 

38,449 24 1 

6,600,000 

Maximum amount due during the 

year ended 

March 31,2011 March 31,2010 

10,409,606 10,420,820 

66,150,000 125,000,000 

69 1,686,670 209,190,000 

52,106,758 2 1,300,000 

133,847,016 38,454,241 

1,556,617,206 

106,800,000 

6,600,000 

I Page 13 of 27 





(i) 

(ii) 

(iii) 

10. Details of transactions with Related Parties: 

A. Names of related parties and description ( 

Holding Company 

Ultimate Holding Company 

Subsidiary Companies 

(v) Fellow Subsidiaries of Ultimate Holding Company 

(vi) Shareholders having significant influence 

(vii) Key Management Personnel 

(viii) Joint Venture 

(ix) Associate 

(x) Joint Venture of Subsidiary Company 


'relationship : 

GMR Infrastructure Limited (GIL) 

GMR Holdings Private Limited (GHPL) 



GMR Hyderabad Airport Resource Management Limited 



GMR Hyderabad Multiproduct SEZ Limited 



GMR Airport Handling Service Company Limited 

GMR Airports Holding Limited 

GMR Aviation Private Limited 

GMR Krishnagiri SEZ Limited 

GMR Energy Limited 

GMR Tambaram-Tindivanam Expressways Private Limited 

GMR Tuni-Anakapalli Expressways Private Limited 

GMR Jadcherla Expressways Private Limited 

Delhi International Airport Private Limited 

GMR Pochanpalli Expressways Private Limited 

GMR Ulundurpet Expressways Private Limited 

Gateways For India Airports Private Limited 

GMR Corporate Center Limited 

GMR Infrastructure (Mauritius) Limited 

GMR Energy Trading Limited 

GMR SEZ and Port Holding Private Limited 

GMR Highways Private Limited 

GMR Corporate Affairs Private Limited 

GMR Hyderabad Vijayawada Expressways Private Limited 

GMR Vemagiri Power Generation Limited 

GMR Rajahmundry Energy Limited 

EMCO Energy Limited 

GMR Chhattisgarh Energy Limited 

GMR Karnalanga Energy Limited 

GMR Airport Developers Limited 

GMR ~ aie ~nternatioial Airport Private Limited 

Raxa Security Services Limited 

GMR sports-private Limited 

GMR Bannerghatta Properties Private Limited 

Government of Andhra Pradesh 

Airports Authority of India 

Malaysia Aborts Holdings Berhad 

MA% (MaAtius) private Limited 

Mr. Kiran Kurnar Grandhi - Managing Director 


Asia Pacific Flight Training Academy Limited 

TVS GMR Aviation Logistics Limited 

. . 

1 = Page 14 of 27 





SI. 

No. 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

(viii) 

(ix) 

(x) 

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

Related Party Transactions 

Repayment of Share Application Money: 

i. Government of Andhra Pradesh 

ii. Malaysia Airport Holdings Berhad 

Remuneration to Key Management Personnel 

Mr Kiran Kumar Grandhi - Managing Director 

Services received: 

i. Raxa Security Services Limited 

ii. GMR Hyderabad Airport Resource Management Limited 

iii. GMR Hotels & Resorts Limited 

iv. Airport Authority of India 

v. GMR Aviation Private Limited 

vi. GMR Airport Developers Limited 

vii. TVS GMR Aviation Logistics Limited 

Investment in: 

i. GMR Hyderabad Aviation SEZ Limited 

ii. MAS GMR Aero Space Engineering Company Limited 

iii. GMR Hyderabad Aerotropolis Limited 

iv. GMR Hotels and Resorts Limited (pursuant to demerger) 

v. GMR Airport Handling Services Company Limited 

vi. Hyderabad Duty Free Retail Limited 

vii. Asia Pacific Flight Training Academy Limited 

Advance towards Share Application Money: 

1. GMR Hyderabad Aerotropolis Limited 

ii. MAS GMR Aero Space Engineering Company Limited 

iii. Hyderabad Duty Free Retail Limited 

iv. GMR Hyderabad Aviation SEZ Limited 

Advance towards Share Application money received back: 

i. Hyderabad Menzies Air Cargo Private Limited 

Advances given: 

i. MAS GMR Aerospace Engineering Company Limited 

ii. GMR Hyderabad Aviation SEZ Limited. 


Advances recovered: 

i. Hyderabad Auport Security Services Limited 

ii. MAS GMR Aerospace Engineering Company Limited 

iii. GMR Hyderabad Multiproduct SEZ Limited 


Security Deposit refunded: 

i. Hyderabad Airport Security Services Limited 

ii. Hyderabad Menzies Air Cargo Private Limited 

Income &om Operations 


ii. GMR Energy Limited 

iii. MAS GMR Aerospace Engineering Company Limited 

iv. Hyderabad Duty Free Retail Limited 

April 01,2010 to 

March 31,2011 

19,379,050 

50,391,889 

145,449,218 

13,981,702 

1,73 1,332 

74,996,096 

94,578,424 

27 1,273 

158,498,700 

1,096,089,160 

500,000 

20,000,000 

200,000 

25,000,000 

8 

15,000,000 

44,000,000 

5 1,397,775 

27,106,758 

166,915,187 

1,000,000 

159,742,965 

5,68 1,669 

34,956,013 



March 31,2010 

76,350 

300,600 

19,671,981 

9,677,6 16 

230,733,905 

1,033,760 

18,500,000 

47,535,000 

21,300,000 

1,690,000 

5,802,650 

4 1,000,000 

58,850,000 

40,584,8 13 

5,000 

5,000 

250,000,000 

1,000,000 

121,321,450 

5,000,000 

5,000,400 

Page 15 of 27 


1 




SL 

No. 

(xi) 

(xii) 

(xiii) 

(xiv) 

(xv) 

(xvi) 

(xvii) 

(xviii) 

(xix) 

(xx) 

(xxi) 

(xxii) 


v. GMR Krishnagiri SEZ Limited 

vi. GMR Hotels and Resorts Limited 

vii. Airport Authority of India 

viii. GMR Aviation Private Limited 

ix. TVS GMR Aviation Logistics Limited 

x. GMR Infrastructure Limited 

xi. Gh@ Hyderabad Aviation SEZ Limited 

xii. GMR Airport Developers Limited 

Dividend Income received from subsidiary Company 


Interest on Construction of Security accommodation 


Unsecured Loan availed and repaid during the year: 

i. GMR Airports Holding Limited 

ii. GMR Infrastructure Limited 

Interest paid on Unsecured Loan availed and repaid during the year: 

i. GMR Airports Holding Limited 


Construction of Security accommodation: 


Unsecured Loan given : 

i. GMR Hotels & Resorts Limited (includes Rs. 1,300,000,000 

pursuant to demerger) 


iii. Hyderabad Duty Free Retail Limited** 

Unsecured Loan received back: 

i. GMR Hotels and Resorts Limited 



Interest on Unsecured Loan given 

i. GMR Hotels and Resorts Limited (pursuant to demerger) 



Sale of Asset: 

i. Delhi International Airport Private Limited 


iii. GMR Hyderabad Aviation SEZ Limited 

Purchase of Asset: 

i. GMR Hyderabad Airport Resource Management Limited 

Pledge of equity shares by the Shareholders having significant 

influence in the Company, with bankers against the loan taken: 

i. GMR Infrastructure Limited 

ii. Malaysia Airports Holding Berhad (along with its associate) 

Corporate Guarantee given by the Company on behalf of its 

Subsidiaries Companies with bankers against the loan taken: 



March 31,2011 

5,667,594 

18,409,5 15 

24,062,5 15 

244,853 

45 1,733 

1 1,345,878 

6,773,5 19 

2,153,418 

20,830,424 

80,169,284 

1 ,780,000,000 

5,750,000,000 

2,931,506 

44,349,3 16 

1,350,774,283 

565,000,000 

90,000,000 

1,357,374,283 

585,000,000 

90,000,000 

228,906,398 

39,991,022 

6,550,274 

10,945,337 

1,3 18,777 

51,397,775 

443,973 

286,564,860 

1,400,000,000 



March 31,2010 

10,432,03 1 

79,547,752 

8,480,086 

6,600,000 

20,000,000 

5,5 22 

76,141 

130,684,630 

Page 16 of 27 





S1. 

No. 


(xxiii) Bank Guarantee given by the Company on behalf of its Subsidiaries 

Companies with bankers: 


(xxiv) Reimbursement of expenses claimed by the Company during the 

year from its related parties: 

i. GMR Energy Limited 


iii. GMR Vemagiri Power Generation Limited 

iv. GMR Tuni Anakkapalli Expressways Private Limited 

v. GMR Industries Limited 

vi. Hyderabad Airport Security Services Limited 

vii. GMR Krishnagiri SEZ Limited 

viii. Delhi International Airport Private Limited 

ix. GMR Bannerghatta Properties Private Limited 

x. GMR Sports Private Limited 

xi. Raxa Security Services Limited 

xii. GMR Rajahmundry Energy Limited 

xiii. GMR Corporate Affairs Private Limited 

xiv. GMR Hyderabad Airport Resource Management Limited 

xv. GMR Hyderabad Aviation SEZ Limited 

xvi. MAS GMR Aerospace Engineering Company Limited 

xvii. GMR Jadcherla Expressways Private Limited 

xviii. GMR Auports Holdings Limited 

xix. GMR Hotels and Resorts Limited 

xx. GMR Chhatisgarh Energy Limited 

xxi. Hyderabad Duty Free Retail Limited 

xxii. EMCO Energy Limited 

xxiii. GMR Kamalanga Energy Limited 

xxiv. GMR Hyderabad Vijayawada Expressway Limited 

xxv. Hyderabad Menzies Air Cargo Private Limited 

xxvi. GMR Male' International Airport Private Limited 

xxvii. TVS GMR Aviation Logistics Limited 

xviii. Airport Authority of India 

xxix. GMR Airport Handling Service Company Limited 

xxx. GMR Hyderabad Aerotropolis Limited 

xxxi. GMR Hyderabad Multiproduct SEZ Limited 

(xxv) 

xxxii. Gateways For India Airports Private Limited 

sxxiii. GMR Holdings Private Limited 

xxxiv. GMR Infrastructure (Mauritius) Limited 

xxxv. Asia Pacific Flight Training Academy Limited 

xxxvi. GMR Airport Developers Limited 

Reimbursement of expenses claimed from the Company during the 

year by its related parties: 

i. GMR Industries Limited 

ii. GMR Krishnagiri SEZ Limited 

iii. GMR Aviation Private Limited 

iv. Delhi International Airport Private Limited 

v. Raxa Security Services Private Limited 


March 31,2011 

40,000,000 

119,611 

706,461 

1,000 

21,165 

7,109,016 

4,382,934 

804,993 

46,926 

3,368,197 

2,379,873 

109,539 

12 16,997 

42,622,162 

119,568 

2,489,87 1 

29,786 

23,784 

389,723 

11,970,193 

14,843,537 

10,640 

13,798,891 

2,500 

350 

100 

100 

17,100 

26,503,242 

227,020 

1,023,794 

408,090 

255,020 

8,770,78 1 



March 31,2010 

Page 17 of 27 

- 

158,479 

3,728,3 14 

105,000 

20,000 

60,553 

1,000 

5,482,802 

14,826,3 15 

39,600 

964,521 

398,500 

13,996 

313,674 

494,358 

- 

- 

- 

- 

60,744 

1,604,486 

8,773 

22,233,3 10 

155,516 





SL 

No. 


vi. GMR Corporate Affairs Private Limited 

vii. GMR Corporate Centre Limited 

viii. GMR Hyderabad Airport Resource Management Limited 

ix. 

x. 



xi. GMR Jadcherla Expressways Private Limited 


March 31,2011 

144,188 

6,000 

375,705 

** Represents amount receivable towards transfer of assets which was converted into unsecured loan. 

SL 

No. 

C. Outstanding balances as at the end of the year: 

Particulars 

(i) Balance Recoverable / (Payable): 


ii. GMR Hyderabad Aqort Resource Management Limited 

iii. Hyderabad Airport Security Services Limited 

iv. MAS GMR Aerospace Engineering Company Limited 

v. Raxa Security Services Limited 

vi. Airports Authority of India 

vii. GMR Infrastructure Limited 

viii. GMR Krishnagiri SEZ Limited 

ix. Delhi International Airport Private Limited 

x. GMR Bannerghatta Properties Private Limited 

xi. GMR Sports Private Limited 

xii. GMR Rajahrnundry Energy Limited 

utvii. GMR Jadcherla Expressways Private Limited 

xiii. GMR Airports Holding Limited 

xiv. Hyderabad Duty Free Retail Limited 

xv. GMR Hotels & Resorts Limited 

xvi. GMR Hyderabad Vijayawada Expressways Limited 

xvii. GMR Holdings Private Limited 

xviii. GMR Male' International Airport Private Limited 

xix. TVS GMR Aviation Logistics Limited 

xx. GMR Aviation Private Limited 

xxi. GMR Infrastructure (Mauritius) Limited 

xxii. GMR Hyderabad Aviation SEZ Limited 

xxiii. GMR Kamalanga Energy Limited 

xxiv. Gateways For India Airports Private Limited 

xxv. Asia Pacific Flight Training Academy Limited 

Ixxvi. GMR Airport Developers Limited 

(ii) I Security Deposit received from Subsidiary Company: 

[ i. Hyderabad Menzies Air Cargo Private Limited 

(iii) I Dividend receivable fiom subsidiary Company: 

I i. Hyderabad Menzies Air Cargo Private Limited 

(iv) I Advance towards Share Application Money: 

> , 

i. MAS GMR Aero &ace ~n~ineerii~ Company Limited 

ii. Hyderabad Duty Free Retail Limited 



As at March 

31,2011 

- 

33,7 17,760 

(32,394,139) 

(845,739,660) 

5,948,172 

(5,199,982) 

13,434,147 

2,519,195 

5,843,266 

(8,652,993) 

115,800 

58,927 

85,598 

(338,134) 

1,216,997 

33,94 1,468 

19,828,654 

,116,975 

59,831 

9,566,262 

3 1,767 

(43,021,923) 

26,503,242 

70,83,619 

16,033 

100 

227,020 

4,371,965 

13,000,000 


I 


March 31,2010 

335,705 

4,136,240 

4,100 

1,320,349 

As at March 

31,2010 

14,032,375 

(40,3 16,857) 

(899,997,309) 

6,947,48 1 

(1,374,660) 

(847,020) 

11,821 

12,348 

(7,399,670) 

1 15,800 

964,521 

- 

14,000,000 

5,207,606 

1,690,000 

Page 18 of 27 





S I. 

No. 

(v) 

(vi) 

(vii) 

(viii) 

(ix) 

(x) 

(xi) 

(xii) 

Particulars 

Investments in Subsidiaries: 


ii. GMR Hyderabad Aerotropolis Limited 

iii. GMR Hyderabad Airport Resource Management Limited 

iv. Hyderabad Auport Security Services Limited 

v. GMR Hyderabad Aviation SEZ Limited 

vi. GMR Hyderabad Multiproduct SEZ Limited 

vii. GMR Hotels and Resorts Limited 

viii. Hyderabad Duty free Retail Limited 

ix. GMR Airport Handling Services Company Limited 

Investment for Joint venture Company: 


Investment in Associates: 

ii. Asia pacific Flight Training Academy Limited 

Interest free subordinate debt given to subsidiaries: 


Loans and advances to Subsidiaries 


ii. GMR Hyderabad Aviation SEZ Limited 


Loans and advances to joint venture: 


Pledge of equity shares by the Shareholders having significant 

influence in the Company, with bankers against the loan taken: 

i. GMR Infrastructure Limited 

ii. Malaysia Airports Holding Berhad (along with its associate) 

Pledge of equity shares by the Company with bankers against the 

loan taken by the Subsidiary Companies: 


Corporate Guarantee given by the Company on behalf of its 

Subsidiaries Companies with bankers against the loan taken: 


Bank Guarantee given by the Company on behalf of its Subsidiaries 

Companies with bankers towards ilfillment of Debt Service Reserve 

Account compliances, as required under the loan covenants: 


As at March 

31,2011 

5,389,350 

21,800,000 

500,000 

125,000,000 

19,000,000 

500,000 

1,096,589,160 

20,000,000 

500,000 

206,033,700 

200,000 

66,150,000 

226,397,937 

89,847,016 

27,106,758 

- 

1,641,490,150 

286,609,380 

37,500,000 

1,400,000,000 

40,000,000 


As at March 

31,2010 

5,389,350 

2 1,800,000 

500,000 

125,000,000 

19,000,000 

500,000 

500,000 

47,535,000 

66,150,000 

6,600,000 

38,449,24 1 

166,915,187 

1,641,490,150 

44,520 - - 

37,500,000 

Page 19 of 27 





1 1. Retirement and Other Employee Benefits: 

a) Defined Contribution Plan: 

Contribution to Provident and other finds under Personnel Cost (Schedule 16) are as under: 

For the year ended For the year ended 

March 31,2011 March 31,2010 

Contribution to Provident Fund 13,848,683 15,278,742 

Contribution to ESI 87 1,446 69,852 

Contribution to Labour Welfare Fund 2,545 2,530 

Contribution to Superannuation Fund 8,914,139 8,610,160 

Total 23,636,813 23,961,284 

b) Defmed Benefit Plans: 

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 salary (last drawn salary) for each completed year of 

service. 

The following tables summarise the components of net benefit expense recognised in the profit and loss 

account and the funded status and amounts recognised in the balance sheet for the gratuity plan. 

Profit and Loss account: 

Net employee benefit expense (recognised in Employee Cost) 


March 31,2011 March 31,2010 

Current service cost 1,652,743 2,279,948 

Interest cost on benefit obligation 723,438 623,832 

Expected return on plan assets 982,288 665,416 

Net actuarial gain / (loss) recognised in the year (62,35 1) (280,330) 

Past Service Cost 503,426 

Net benefit expense 1,834,968 1,958,034 

Actual return on plan assets 978,686 665,416 

Balance sheet 


Details of Provision for gratuity: 

As at As at 

March 31,2011 March 31,2010 

Fair value of plan assets 14,633,627 8,299,265 

Defined benefit obligation 11,498,134 10,453,160 

Plan asset / (liability) 3135,493 (2,153,895) 

Page 20 of 27 





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


arch 31,2011 arch 31,2010 

Opening defined benefit obligation 10,453,160 7,805,240 

Less: Transfer pursuant to demerger (1,05 1,687) 

Net Opening defined benefit obligation 9,40 1,473 7,805,240 

Interest cost 723,438 623,832 

Current service cost 1,652,743 2,279,948 

Past Service Cost 503,426 

Benefits paid (71 6,993) (14,671) 

~ctuariai gains / (losses) on obligation (65,953) (241,189) 

Closing dehed benefit obligation 11,498,134 10,453,160 

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


arch 31,2011 arch 31,2010 

Opening fair value of plan assets 8,299,265 8,062,129 

~i~ected return on assets 982,288 665,416 

Contributions by employer 6,905,503 2,726,458 

Benefits paid (7 16,993) (3,193,880) 

Actuarial gains 1 (losses) (836,436) 39,142 

Closing fair value of plan assets 14,633,627 8,299,265 

The Company expects to contribute Rs. 2,000,000 (March 3 1,2010: Rs. Nil) towards gratuity fund in 201 1- 

2012. 

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

Investments with insurer 

2010- 11 (%) 1 2009 - 10 (%) 

100% 1 100% 

Notes: 

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. 

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

below: 


March 31,2011 March 31,2010 

Discount rate 8% 8% 

Expected return on plan assets 8.5% 8.5% 

Rate of compensation increase 6% 6% 

Employee Turnover 5% 5% 


Page 21 of 27 





Amounts for the current and prior periods are as follows: 

Defined benefit obligation (a) 

Fair value of plan asset (b) 

Surplus 1 deficit (b - a) 

Experience adjustments on plan liabilities 

Experience adjustments on plan assets 

c) Liability towards compensated absence is provided based on actuarial valuation amounts to Rs. 

13,881,061 (March31,2010: Rs. 10,013,955)asatMarch31,2011. 

12. Earnings Per Share (EPS): 

13. Deferred Tax: 

Particulars 

a. Profit / (Loss) after Tax 

b. Weighted average number of Equity Shares 

of Rs. 10 each outstanding during the year. 

c. Earnings Per Share - Basic and Diluted 

2010-11 

1 1,498,134 

14,633,627 

3 1,35,493 

(65,953) 

(836,436) 

2009-10 

10,453,160 

8,299,265 

(2,153,895) 

(241 ,I 89) 

39,142 


March 31,2011 

1,039,843,998 

378,000,000 

2008-09 

7,093,697 

8,062,129 

968,432 

(679,052) 

170,969 

(a) The Company is entitled to claim tax holiday for any 10 consecutive years out of 15 years, ii-om the year 

of commencement of commercial operations in 2007-08, under Section 80-IA of the Income Tax Act, 

1961, with regard to income fiom airport operations. Considering that the Company had brought 

forward losses of Rs. 598,364,080 and unabsorbed depreciation of Rs. 7,485,491,371 as at March 31, 

201 1 under Income Tax Act, 1961, the management, based on the projected future taxable income, 

expects to avail such tax holiday from the assessment year 201 8-19. 

The Company has recognised deferred tax asset (net) amounting to Rs. 1,028,914,700 on carry forward 

business loss and unabsorbed depreciation available for set-off from future taxable income before 

commencement of the expected tax holiday period. The management, based on internal assessment and 

legal opinion, believes that there is virtual certainty, with convincing evidence, of availability of such 

future taxable income as it is entitled to levy regulated charges at the Airport as per the Concession 

Agreement read along with Order Nos. 13 and 1412010-1 1 and Direction 512010-1 1 of Airports 

Economic Regulatory Authority which ensure a reasonable rate of return to the airport operator, 

considering the fair rate of return on regulatory assets base, operations and maintenance expenses, 

depreciation and taxes. 

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

recognised in respect of all the timing differences which have originated up to March 3 1,201 1 and are 

expected to reverse either before commencement of the expected tax holiday period or after the expiry 

of such tax holiday period. 

2.75 


March 31,2010 

(1,092,204,252) 

378,000,000 


(2 39) 

C . Page 22 of 27 





(b) Break up of Deferred Tax Asset (net) is as follows: 

Particulars 

Deferred Tax Asset arising on account of: 

i) Unabsorbed Depreciation 

ii) Loss carried forward 

Total Deferred Tax Asset (A) 

Deferred Tax Liability arising on account of: 

i) Difference between carrying amount of 

fvted assets in the fmancial statements 

and the income tax returns 

Total Deferred Tax Liability (B) 

Deferred Tax Asset (Net) (A - B) 


2,428,667,675 

194,139,226 

2,622,806,901 

1,593,892,201 

1393,892,201 

1,028,914,700 

14. The Company has not dealt with any party as defined under the provisions of Micro, Small and Medium 

Enterprises Development Act, 2006 during the year. 

15. The Company had taken residential and office premises under cancellable operating leases. The rental 

expenses under such operating lease during the year is Rs. 55,635,471 (March 31,2010: Rs. 50,224,007). 


i.' 

'J'. 

. . .. 

, .-- - 

. . . .' 


1,833,670,454 

1,833,670,454 


1,833,670,454 

1,833,670,454 

- 

r- Page 23 of 27 

CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure - I -r " - I-D-I Page 182 of 186 

, . 

-




16. Information on joint venture: 

The Company's interest in the below mentioned joint venture is reported as Long term Investments 

(Schedule 6) 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 based on the audited financial statements are as below: 

Particulars 

(1) Share in ownership and voting power of the Company 

(2) Country of incorporation 

(3) Contingent Liabilities - Company has incurred in relation to 

Joint Venture 

(4) Company's share of contingent liabilities of joint venture 

(5) Company's share of capital commitments of the joint venture 

(6) Aggregate amount of Company's share in each of the 

following: 

(a) Current Assets 

(b) Fixed Assets (including Capital work in progress and pre - 

operative expenditure, pending allocation) 

(c) Investments 

(d) Current Liabilities and Provisions 

(e) Borrowings 

(f) Income 

1. Sales 

2. Other income 

(g) Expenses 

1. Personnel cost 

2. Administration expenses 

3. Depreciation 

4. Finance charges 

5. Provision for taxation 

Note: The Company had become the joint Venturer with effect from September 7,2009. 

(THIS SPACE HAS BEEN INTENTIONALLY LEFI' BLANK) 

MAS GMR Aerospace 

Engineering Company Limited 

(MAG) 

March 31,201 1 March 31,2010 

50% 

50% 

India 

India 

351,436,677 

293,758,89 1 

589,440,902 

250,000 

77,010,633 

6 15,000,000 

2,800,553 

3,686,609 

9,569,969 

96,408 

266,546 

1,187,058 


115,815,000 

4,501,010 

172,944,483 

49,041,413 

83,457,594 

1,445,406 

4,784,230 

94,688 

Page 24 of 27 





17. Auditors Remuneration (exclusive of service tax): 

Particulars 


March 31,2011 


March 31,2010 

Statutory Audit fee 

Tax Audit fee * (Pertains to FY 2009-10) 

Certification * 

Other Services * 

Out of Pocket expense * 

Total 

* paid to one of the Joint auditors 

I 

1,800,000 

300,000 

100,000 

50,000 

88,984 

2,338,984 ( 

1,800,000 

187,500 

- 

1,987,500 1 

18. Managerial Remuneration: 

Particulars 

Salary, bonus and other allowances 

Contribution to provident and other funds 

Perquisites and other allowances 

Total 

Note: 

i) As the future liability for gratuity and compensated absences is provided on an actuarial basis for the 

Company as a whole, the amount pertaining to the directors is not ascertainable and, therefore, not 

included above. 

19. Derivative Instruments and un-hedged foreign currency exposure: 


March 31,2011 

15,240J61 

3,962,498 

176,291 

19,379,050 

(a) There are no outstanding derivative contracts as at March 3 1, 201 1 and March 3 1, 2010 other than 

interest rate swap as referred in note I1 (3). 

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




March 31,2010 

15,598,300 

3,807,000 

266,681 

19,671,981 

Page 25 of 27 





20. Expenditure in Foreign Currency (on Accrual basis): 

Professional Charges 

Interest 

Others 

Particulars 

Total 

2 1. Earnings in Foreign Currency: 

22. C.1.F Value of Imports: 

Particulars 

Revenue from Hotel Operations 

Total 

Capital Goods 

Stores and spares 

23. Consumption of Stores and Spares: 

Imported 

Indigenous 

Particulars 

Total 

Particulars 

Total 


March 31,2011 

YO 

63.99 

36.01 

100.00 


March 31,2011 

12,802,946 

436,192,498 

20,344,369 

469,339,813 


March 31,2011 


March 31,2011 

3,186,850 

46,373*715 

49,560,565 

Value 

4330 1,015 

24,306,261 

67,507,276 


March 31,2010 

YO 

13.04 

86.96 

100.00 


March 31,2010 

63,964,03 1 

459,035,116 

43,724,129 

566,723,276 


March 31,2010 

69,052,454 

69,052,454 


March 31,2010 

34,5 19,072 

9,744,759 

44,263,83 1 

Value 

9,744,759 

64,980,103 

74,724,862 


It is not practicable to furnish quantitative information in view of the considerable number of items with 

&verse size and nature. 

24. The Company is entitled to custom duty credit scrip under Served From India Scheme (SFIS) of Foreign 

Trade Policy issued by Government of India. Under the terms of SFIS, service providers are entitled to duty 

credit scrip as a percentage of foreign exchange earned by the Company that can be utilised for payment of 

import duty in case of imports. The Company has during the year utilised custom duty credit scrip 

amounting to Rs. 12,904,767 (March 3 1,2010: Rs Nil) against payment of import duty in respect of import 

of inventories. As these scrips are non - tradable and have been used for the payment of custom duty on 

import of inventories for airport development project, the Company has recorded inventories imported at net 

amount (after excluding the amount of custom duty not paid by using these scrips) and no accounting has 

been done in these financial statements against expected utilisation for custom duty credit scrip entitlements 

due to the Company amounting to Rs. 186,377,630 (including Rs. 125,399,237 estimated to be utilised 

within the group as per the scheme) as at March 3 l,20 1 1 out of total eligibility of Rs. 243,294,667. 

Page 26 of 27 





25. Additional Information pursuant to paragraphs 3, 4, 4-C and 4-D of Part - I1 of Schedule VI to the 

Companies Act, 1956 to the extent either "Nil" or "Not Applicable" has not been furnished. 

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

current year. 

Signature to Schedule 1 to 20 

As per our report of even date 

For S. Associates 

Firm Registration No: 10 1049W 


For Brahmayya & Co. For and on behalf of the Board of Directors of 

Firm ~e~ist&tion No: 0005 1 5s GMR Hyderabad International Airport 

Limited 

Membership No.: 15590 

Place: Bangalore Place: Bangalore 

Date: May 10,201 1 Date: May 10,201 1 

Managn 

~ d aGrandhi r RSSLN Bhaskarudu 

Director 

Director 


Date: May 10,201 1 


Page 27 of 27

Annexure I - AERA

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