GMR Infrastructure Limited 2019-20
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GMR Infrastructure Limited Corporate Office: New Udaan Bhawan, Opp. Terminal-3 Indira Gandhi International Airport New Delhi-110037 CIN: L45203MH1996PLC281138 T+91 11 42532600 August 30, 2020 F+91 11 47197181 W 'NitVItV.gmrgroup.in BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai 400001. Bandra-Kurla Complex Sandra (E) Mumbai - 400051. Dear Sir/Madam, Sub: Annual Report of the Company for the Financial Year 2019-20 Ref: Regulation 34(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR'). We hereby inform you that the 24th Annual General Meeting ('AGM') of GMR Infrastructure Limited ('the Company') will be held on Monday, September 21, 2020 at 3.00 p.m. through Video Conferencing to transact the business set out in the AGM Notice. Pursuant to Regulation 34( 1) of the SEBI LODR, we are enclosing herewith the copy of Annual Report of the Company along with the Notice of the AGM for the Financial Year 2019-20 which is being sent to all the members of the Company whose email addresses are registered with the Company or Depository Participant(s) in compliance with relevant circulars issued by Ministry of Corporate Affairs and the Securities and Exchange Board of India. The copy of Annual Report 2019-20 along with the Notice of AGM is also available on Company's website; www.qmrqroup.in Request you to please take the same on record. Thanking you, for GMR Infrastructure Limited T. Venkat Ramana Company Secretary & Compliance Officer Registered Office: Plot No. C-31, G Block Encl: As above 7th Floor, Naman Centre Sandra Kurla Complex (Opp. Dena Bank) Bandra(East), Mumbai-400 051 Airports I Energy I Transportation I Urban Infrastructure I Foundation 24th ANNUAL REPORT 2019-20 Goa, India Cebu, Philippines Crete, Greece abad, India der Hy Bhogapur am , India Delhi, India Airports RESOLVE, RESILIENCE, REFORM Energy Transportation Urban Infra Foundation Creating Tomorrow Today! GMR Infrastructure Limited CAUTION REGARDING FORWARD-LOOKING STATEMENTS This document contains statements about expected future events, financial and operating results of GMR Infrastructure Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer which is qualified in its entirety by the assumptions, and risk factors that are referred in the management’s discussion and analysis of the GMR Infrastructure Limited Annual Report 2019-20. INSIDE THE REPORT General Information 03 Corporate Philosophy 04 Chairman’s message to the Shareholders 05 Financial Highlights 14 Board’s Report 15 Corporate Governance Report 81 Management Discussion & Analysis 100 Business Responsibility Report 118 Consolidated Financial Statements 134 Standalone Financial Statements 279 Notice 372 2 24th Annual Report 2019-20 GMR Infrastructure Limited GENERAL INFORMATION BOARD OF DIRECTORS G.M. Rao B.V.N. Rao S. Sandilya Madhva Terdal Chairman Group Director Independent Director Executive Director- Strategic Initiatives Grandhi Kiran Kumar C.R. Muralidharan S. Rajagopal Managing Director & CEO Independent Director Independent Director Srinivas Bommidala N.C. Sarabeswaran Vissa Siva Kameswari Group Director Independent Director Independent Director G.B.S. Raju R.S.S.L.N. Bhaskarudu Suresh Lilaram Narang Group Director Independent Director Independent Director (with effect from April 22, 2020) COMPANY SECRETARY & COMPLIANCE OFFICER CORPORATE SOCIAL RESPONSIBILITY COMMITTEE T. Venkat Ramana R.S.S.L.N. Bhaskarudu - Chairman B.V.N. Rao - Member AUDIT COMMITTEE G.B.S. Raju - Member N.C. Sarabeswaran - Chairman RISK MANAGEMENT COMMITTEE R.S.S.L.N. Bhaskarudu - Member Grandhi Kiran Kumar - Chairman S. Rajagopal - Member Vissa Siva Kameswari - Member B.V.N. Rao - Member Vissa Siva Kameswari - Member STAKEHOLDERS’ RELATIONSHIP COMMITTEE Saurabh Chawla - Member R.S.S.L.N. Bhaskarudu - Chairman Suresh Bagrodia - Member B.V.N. Rao - Member G.B.S. Raju - Member STATUTORY AUDITORS Walker Chandiok & Co LLP, Chartered Accountants NOMINATION AND REMUNERATION COMMITTEE BANKERS Andhra Bank ICICI Bank Limited R.S.S.L.N. Bhaskarudu - Chairman Axis Bank Limited IDBI Bank Limited B.V.N. Rao - Member Bank of Baroda United Bank of India N.C. Sarabeswaran - Member Central Bank of India YES Bank Limited REGISTERED OFFICE: REGISTRAR AND SHARE TRANSFER AGENT: Naman Centre, 7th Floor, Opp. Dena Bank Kfin Technologies Private Limted Plot No. C-31, G Block, Bandra Kurla Complex Kfintech Selenium Tower B, Plot 31-32, Gachibowli Bandra (East), Mumbai Financial District, Nanakramguda Maharashtra, India - 400 051 Hyderabad, Telangana, India - 500 032 T +91 22 4202 8000 F +91 22 4202 8004 T +91 40 67162222 F +91 40 23001153 [email protected] [email protected] www.gmrgroup.in www.kfintech.com 24th Annual Report 2019-20 3 GMR Infrastructure Limited 4 2424thth Annual Annual Report Report 2019-20 GMR Infrastructure Limited CHAIRMAN’S MESSAGE In line with our strategy, we believe that in spite of the ongoing turbulence, the Airport business has huge underlying strength and will continue to be the growth engine for the Group. GM Rao Chairman, GMR Group 24th Annual Report 2019-202019-20 5 GMR Infrastructure Limited society. The Foundation trained highly committed and Dear Fellow Stakeholder, skilled women in service of defending communities and It gives me great pleasure to welcome you all to the the frontline COVID warriors by preparing masks and 24th Annual General Meeting of the Company. PPEs as per the requisite safety guidelines at various locations across the country. More than 1.70 lakhs of You may recall in my message last year, I had mentioned cooked meals were distributed during lockdown period that the Company has made significant progress in the to vulnerable people and migrant workers. More than areas of improving operations and cash generation 6000 dry ration kits were also distributed among the and that we are actively looking at different ways to needy as an essential support during these times. unlock value from the airport business. I am extremely Medical mobile units provided essential medicines to delighted to let you know that FY20 was a great turning elderly and other chronic patients point for us. GMR Group has successfully completed the strategic partnership initiative with majority French As you are aware, FY 20 was marred by various challenges government owned and Paris based Groupe ADP. The such as US – China trade tensions and geopolitical Global Airport Operator is a major player in the Airports tensions in the Middle East. This had resulted in a fall space and our partnership with them highlights the in business confidence and increase in uncertainty inherent strength of our Airport portfolio. The fact ultimately affecting global growth rate. While the that this transaction has been completed during the world was still reeling under these challenges, we have ongoing Covid-19 situation is a testament to our Group’s been hit by yet another unprecedented event in the credibility and ability to forge ahead even during these form of COVID-19 pandemic. The pandemic spread difficult times. GMR Airports Limited (GAL) is now jointly at an alarming pace and brought the global economy owned by GMR Infrastructure Limited (51%) and by to a standstill amid various counter measures being Groupe ADP (49%). The funds received from the deal taken across the world, like movement restrictions and have been used to primarily reduce debt, provide exit to lockdowns, to contain the spread. As a result, the global private equity investors and to improve overall liquidity growth is projected to witness serious contraction in at the Group level. FY21. Groupe ADP develops and manages airports, including At home, even before the pandemic, India had been Paris-Charles de Gaulle, Paris-Orly and Paris-Le heading towards an economic slowdown owing to Bourget. In 2019, the group handled through its brand demand contraction. GDP growth in 2019-20 fell from Paris Aéroport more than 108 million passengers in 5.8% in Q4 2018-19 to 4.2% in Q4 2019-20. In an effort addition to more than 110 million passengers in airports to stem this slowdown, Government of India announced abroad. In 2019, Group revenue stood at €4.7 billion and a slew of interventions during the year, the most net income at €588 million. important of them being a substantial cut in corporate tax rate from 30% to 22% announced in September According to the terms of the deal, GMR will retain 2019. This reform has positioned India as relatively more management control over the airport business with attractive destination with tax rates being aligned with Groupe ADP having board representation at GAL and its Asian peers. its key subsidiaries. The strategic partnership is built on two-way exchange of expertise, personnel, knowledge On the COVID-19 front, India being one of the most and market access. We strongly believe that passengers populous countries in the world is seeing a delayed and other stakeholders will benefit immensely from the spike in reported cases though the fatality rate is evolved best practices thereby setting newer industry- relatively much lower than other countries. Given defining benchmarks. the negative impact of COVID-19 on the country’s economic activities, GDP is expected to witness a During these times of unprecedented challenges of substantial contraction in FY21 and has aggravated an the COVID-19 pandemic, your Company has been at already weak demand scenario.