CELEBRATING

YEARS OF SERVICE TO THE NATION

(1995 - 2020) ¼fefujRu Js.kh - I lkoZtfud {ks= dk miØe½ (A Miniratna Category-I Public Sector Enterprise)

th

Annual Report 2019-20

137 International Domestic Civil Enclaves at Customs 23Airports 81Airports 23Defence Airfields10Airports Shri Hon'ble Prime Minister of

Shri Shri Pradeep Singh Kharola Shri Arvind Singh, IAS Hon'ble Minister of State for Civil Aviation Secretary, Ministry of Civil Aviation Chairman, AAI

CELEBRATING

YEARS OF SERVICE TO THE NATION

(1995 - 2020) CONTENTS

Particulars Page No.

About AAI 03

Board Members, CVO and KMP 04

Highlights 2019-20 10

Board’s Report 16

- Corporate Governance Report 26

- Management Discussion & Analysis (MD&A) 30

- Details of Capital Schemes (Region-wise) 76

- Annual Report on CSR Activities 88

- Sustainability Report 108

Financial Statements of AAI & Auditor’s Report thereon 113

Financial Statements of CHIAL & Auditor’s Report thereon 159

Financial Statements of AAICLAS Co. Ltd. & Auditor’s Report thereon 205

Chennai About AAI Airports Authority of India (AAI) came into existence on 1st April 1995. AAI has been constituted as a statutory authority under the Airports Authority of India Act, 1994. It has been created by merging the erstwhile International Airports Authority and National Airports Authority with a view to accelerate the integrated development, expansion and modernization of the air traffic services, passenger terminals, operational areas and cargo facilities at the airports in the country. Main Functions of AAI • Control and management of the Indian airspace (excluding special user air space) extending beyond the territorial limits of the country, as accepted by ICAO. • Provision of Communication, Navigational and Surveillance Aids. • Expansion and strengthening of operational areas viz. Runways, Aprons, Taxiways etc. and provision of ground-based landing and movement control aids for aircrafts & vehicular traffic in operational area. • Design, Development, Operation and Maintenance of passenger terminals. • Development and Management of cargo terminals at international and domestic airports. • Provision of passenger facilities and information systems in the passenger terminals.

Mission “TO BE THE FOUNDATION of an enduring Indian aviation network, providing high quality, safe and customer-oriented airport and air navigation services, thereby acting as a catalyst for economic growth in the areas we serve.”

Vision AAI’s vision till 2026 is: • to be the pre-eminent Air Navigation Service provider with Global Recognition; • to adopt state of art technology to drive safe navigation in the Indian airspace; • to maintain highest standards of excellence in providing modern, sustainable and robust airport infrastructure; • support improving air connectivity at unserved and under-served airports; • have an effective organization equipped to face the emerging challenges from the exponential air traffic growth; • focus on profitable operations at Major airports through continuing efforts on cost reduction and enhancing non-aeronautical revenue.

137 International Domestic Civil Enclaves at Customs Airports 23Airports 81Airports 23Defence Airfields10Airports Annual Report 2019-20

Board Members and Key Managerial Personnel

CHAIRMAN

Shri Arvind Singh, IAS Dr. Guruprasad Mohapatra, IAS Chairman, AAI Chairman, AAI (w.e.f. 06.11.2019) (upto 31.07.2019) NON-OFFICIAL MEMBERS (Government Nominees)

Shri Arun Kumar, IAS Shri B.S. Bhullar, IAS Director General of Civil Aviation & Director General of Civil Aviation & Ex-Officio Member (w.e.f. 31.05.2019) Ex-Officio Member (upto 31.05.2019)

Ms. Rubina Ali Shri Vimalendra Anand Patwardhan Shri Praveen Garg, IAS Joint Secy., Ministry of Civil Aviation Joint Secy. & Financial Advisor, Additional Secy. & Financial Advisor, Ministry of Civil Aviation Ministry of Civil Aviation (w.e.f. 13.02.2020) (from 20.12.2019 to 13.02.2020) NON-OFFICIAL MEMBERS (Independent)

Dr. (Ms.) Tuktuk Ghosh Kumar, ACM (Retd.) Dr. Venkateswarlu Kasam Shri Govindarajan Sekar IAS (Retd.) Fali Homi Major Non-Official Member (Independent) Non-Official Member (Independent) Non-Official Member (Independent) Non-Official Member (Independent) (upto 06.02.2020) (upto 06.02.2020)

04 FUNCTIONAL MEMBERS

Shri Anuj Aggarwal Shri I.N. Murthy Shri A. K. Pathak Member (Human Resources) Member (Operations) Member (Planning)

Shri Vineet Gulati Shri K. Vinayak Rao, IRAS Shri S. Suresh Member (Air Navigation Services) Member (Finance) Member (Finance) - (upto 25.09.2019) (w.e.f. 13.05.2020)

CHIEF VIGILANCE OFFICER

Shri Amal Garg, IRS Ms. Arti Bhatnagar, IDAS Shri R.S. Bhatti, IPS Chief Vigilance Officer Chief Vigilance Officer Chief Vigilance Officer (w.e.f. 21.10.2020) (from 23.03.2020 to 19.09.2020) (upto 31.01.2020)

KEY MANAGERIAL PERSONNEL

Shri Dharmendra Bhojwani Shri Pankaj Jain Ms. R. Tulasi Mahalakshmi ED (Finance) ED (Finance) Company Secretary (w.e.f. 01.07.2020) (upto 30.06.2020)

05 Annual Report 2019-20

Brief Prole of Board Members

CHAIRMAN

Shri Arvind Singh (IAS; MH:88) took over the charge as Chairman, AAI on 6th November 2019. Prior to this, he was Additional Chief Secretary (Energy) in Government of . He has also worked as Chairman and Managing Director of Maharashtra State Power Generation Company Ltd. (MSPGCL) and the Maharashtra State Electricity Transmission Company Ltd. (MSETCL).

Shri Singh, joined the Indian Administrative Service in 1988 after acquiring Bachelor’s and Master’s degrees in Economics from St. Stephen’s College, and the Delhi School of Economics, Delhi respectively. His initial assignments were as Assistant Collector at Aurangabad and as Chief Executive Officer of Aurangabad and Nagpur Zilla Parishads. After a stint in the Chief Secretary’s office at Mumbai, he moved to as District Collector.

Moving to the Centre in 2001, he worked in various ministries including Commerce and Shipping and as Private Secretary to the Minister of Agriculture. He served at the Embassy of India, Tokyo as Minister (Economic & Commerce) between 2014-17. Shri Singh has attended mid-career training courses at the Graduate Institute, Geneva and Harvard University and is fluent in English, Hindi and Marathi..

NON-OFFICIAL MEMBERS (GOVERNMENT NOMINEES)

Sh. Arun Kumar, a 1989 batch IAS Officer from Cadre and a Maths Graduate,is the Chief of Directorate General of Civil Aviation. For about 22 years, he served in the Northern Indian State of Haryana in various capacities such as Managing Director - Power Distribution and Transmission Utilities, as Head of State Tax Administration, as Chief Executive Officer of the State Transport Undertaking, as Director of Industries and Mines and as Director of Environment and Member Secretary in State Pollution Control Board.

He has held the position of Deputy Commissioner in the of and of District Collector of Rohtak, Jhajjar and Faridabad in the State of Haryana. For about almost six and half years, he has been with the Ministry of Civil Aviation.Being the Joint Secretaryand then as Additional Secretary in the Ministry, he looked after the work of Airports, Airlines, DGCA, Bilateral and Parliamentary Affairs. While in charge of Bilaterals, he was the Leader of Indian delegation in multiple Air Services Negotiations and has signed about 40 Agreements/MoU on behalf of India, with various countries.Later, in June 2019, he was given charge as the Director General of Civil Aviation.

He has attended many training programmes in India and Abroad and also attended many short-term professional courses in Indian Institute of Management, National Law School, IATA and Cambridge University.

Sh. Vimalendra Anand Patwardhan is a Commerce Graduate who joined the Indian Audit & Accounts Services in 1996. While working for about 25 years in various capacities, he has acquired an extensive knowledge and insight into the working of PSUs, Defence Sector and the Government. Currently, as Joint Secretary & Financial Advisor in the Ministry of Civil Aviation and Ministry of New & Renewable Energy, he is primarily responsible for finance advice. Apart from performing audit and finance functions in various organisations under the Government, he has also extensive experience of audit of international organisations such as WHO, WTO, FAO, etc.

06 Brief Prole of Board Members

Ms. Rubina Ali is a Post Graduate in History. She cleared Civil Services Examination - 1991 batch Central Secretariat Services (CSS). Since then, she has held different positions in various departments including Ministry of Finance, Ministry of Culture and Ministry of Mines and presently, she is working as Joint Secretary in Ministry of Civil Aviation.

FUNCTIONAL MEMBERS

Sh. Anuj Aggarwal is an Engineering Graduate from BITS Pilani. Before taking over the charge as Member (HR) in December 2014, he was Executive Director in Key Infrastructure Development (KID) Cell of AAI. During his association with AAI starting from 1989, he has held different positions and acquired vast experience in the field of Planning, Admin, Engg., Operations, CSR and Human Resources Management. Shri Aggarwal is a team player with the ability to handle large taskforce in a disciplined & organized manner as well as monitoring and motivating teams in optimizing performance levels.

Shri Indrakanti Narasimha Murthy is a Post Graduate in Physics (Electronics) and is associated with AAI since 1985. Sh. Murthy has more than 35 years of experience in aviation sector and has held different positions in Directorate of Air Traffic Management, Directorate of Aerodrome Planning, Airport Management & Operations of AAI. Before taking over the charge as Member (Operations) in November 2016, he served as Regional Executive Director (Southern Region) at and Executive Director (Air Traffic Management) in Air Space Management Directorate at Corporate Headquarter of Airports Authority of India.

Shri Anil Kumar Pathak is a certified International Airport Professional (IAP) by ACI-ICAO and holds Master Degree in Environment Science & Engineering from Jamia Millia Islamia University. He has 30 years of rich experience in planning, design of modern state-of-art environment-friendly airport terminals and airside infrastructure like runways, apron etc. its financial evaluation, regulatory clearances, tendering & award processes and is also associated with execution of various Greenfield & Brownfield Airport Projects across India.

Shri Vineet Gulati, prior to his appointment as Member (Air Navigation Services) w.e.f. 05.10.2018, has served at AAI in various capacities, as Executive Director (Air Traffic Management), General Manager (Air Traffic Flow Management) and Air Traffic Controller in ATC Centres at various international airports. He has been mainly responsible for implementation of Air Traffic Flow Management, Management of Air Traffic Services, development of Aeronautical Survey, Aerodrome Licensing and ANS Integrated Planning Group. He was also responsible for the establishment of R&D Wing of Air Navigation Services. One of the foremost contributions of Shri Gulati has been the formulation of India's Air Navigation Strategic Plan 2020. Shri Gulati has also served as a Technical Advisor to the Representative of India in the Council of ICAO, Montreal from 2009 to 2012.

Shri K. Vinayak Rao, Indian Railways Accounts Service (IRAS) officer of 1987 batch took over the charge as Member (Finance), AAIon 13th May, 2020. He is an alumnus of St Stephen’s College, Delhi, Shri K. Vinayak Rao holds a Master’s degree in Mathematics. Prior to joining AAI, Shri Rao was serving as Member (Finance) in Delhi Development Authority (DDA).

07 Annual Report 2019-20

Brief Prole of Board Members

As Member (Finance) of AAI, Shri K. Vinayak Rao is the overall in-charge of Finance, Accounts and Financial operation of the organization. He is responsible for evolving, formulating policies and strategies related to entire gamut of finance operation, including resource mobilization and statutory compliances. Shri Rao also plays a leadership role and provide effective support in achieving sustained growth of the organization’s business.

During his tenure in Indian Railways, he has served in various capacities in zonal railways, construction projects, and production units. He has worked as Executive Director (Finance Expenditure) in Railway Board (Ministry of Railways) from 2009 to 2014. He was also on the Board of Pipavav Railway Corporation Limited (PRCL) and Railway Energy Management Company (REMC) Ltd.

Apart from this, Shri Rao has a wide experience in power sector too as he has served as Member (Finance) in the erstwhile Maharashtra State Electricity Board and Director (Finance) in the four restructured companies from 2003- 2009. He played an instrumental role in restructuring of Maharashtra State Electricity Board (MSEB).

INDEPENDENT MEMBERS

Dr. Venkateswarlu Kasam is an entrepreneur, educationist, and a social worker. He is an M.Sc in Physics and Ph.D. in Astronomy (Astro Physics) from Osmania University, . His Doctoral thesis on ‘Studies of some major meteor showers associated with long period Comets’’ received wider acclaim from academia for insightful and thought-provoking research.

Dr. Kasam has established educational institutions in Nalgonda district. He has been associated with a number of NGOs working for the development of villages and contributed significantly to bring about difference in the lives of people. He participates in TV debates of regional channels and publishes articles on various socio-cultural-political issues periodically in popular News Papers.

Shri G Sekar is a Chartered Accountant in practice for the last 35 years and a Commerce Graduate, Gold Medalist & Rank Holder from Madurai Kamaraj University. He is the Founder and Faculty for Direct Taxation in Shree Guru Kripa’s Institute of Management.

He is a Central Council Member of the Institute of Chartered Accountants of India (ICAI) and is the first Indian to be nominated as Member of Consultative Advisory Group (CAG) of the prestigious International Accounting Education Standards Board (IAESB) of IFAC.

He is Chairman of various Committees of the ICAI. He is also an Ex-Officio Member, National Financial Reporting Authority (NFRA) and a Member of the MCA Committee to Revise Company Auditor’s Report Order (CARO), 2016.

He is a great motivator too. He has also authored various professional books for Finance and Legal Professionals, Corporate Taxpayers, Banks, Officials of Income Tax Department, etc.

08 Brief Prole of CVO and KMP

CHIEF VIGILANCE OFFICER

Shri Amal Garg (IRS IT: 1995) has been appointed as CVO, Airports Authority of India w.e.f. 21st October 2020. He has worked in various capacities in Income Tax Department at various places. He has rich experience of working in Investigation wing of the Income Tax Department, which carries out search and seizure operations. He has also worked for a substantial period in the vertical of Computer Systems of Income tax Department, where he has worked on various projects including E-filing of Income Tax returns. He has received Finance Minister’s appreciation letter for his outstanding work.

Shri Amal Garg has also worked in the Department of Information Technology, where he worked as Director (Finance), National e-Governance Division (NeGD) for one year.

He holds degree of Bachelor of Engineering in Mechanical stream (B. E.) from University of Roorkee (Now IIT Roorkee). Besides, he has also obtained degree of LLB from CCS University, Meerut. Recently, he has successfully completed Advanced Professional Programme in Public Administration (APPPA) from Indian Institute of Public Administration, Delhi. Prior to joining AAI, he was working as Commissioner of Income Tax (Appeals), Moradabad.

KEY MANAGERIAL PERSONNEL

Shri Dharmendra Bhojwani a Commerce Graduate and an Associate Member of the Institute of Cost & Management Accountants of India. He has rich experience of more than 32 years and has served in AAI in various capacities. In his present position, he is looking after corporate accounts, market borrowings, capital budget, financial concurrence etc.

Ms. R. Tulasi Mahalakshmi is a post graduate in Commerce and a member of the Institute of Company Secretaries of India. She is a recipient of Gold Medal Award in Company Secretary Course. She is also an LL.M. in Labour Laws and Corporate Laws.

She has rich experience of more than 14 years in the field of secretarial and legal. She has also worked with SBI Pension Funds and Nava Bharat Ventures Limited.

09 Annual Report 2019-20

HIGHLIGHTS Inaugurations of Airports / Facilities

Inauguration of the Air Traffic Flow Management - Central Command Centre at Vasant Kunj, New Delhi

Inauguration of at Kalaburgi in under RCS – UDAN

Inauguration of the Specialized Maintenance Unit (SMU) for in-country repair and maintenance of RADARs

Successful commissioning of SkyRev360 system at Lao Air Navigation Services (LANS) at Lao PDR

10 HIGHLIGHTS MOUS / Agreements

Signing of Concession Agreements for Operations, Management and Development of Ahmedabad, Lucknow and Mangaluru Airports through PPP mode

Signing of MoU between AAI and Government of for a Greenfield Airport at Nagchala, Himachal Pradesh

Signing of contract agreement with Aireon LLC for implementation of Space-Based Air Traffic Surveillance Service in Mumbai, Chennai and ’s oceanic airspaces

Signing of License Agreement between AAI and AAICLAS Co. Ltd. for in–line hold baggage screening at Indian Airports Annual Report 2019-20

HIGHLIGHTS AAI’s Participation at Different Forums

Inauguration of the 36th Satellite Based Augmentation System (SBAS) Interoperability Working Group (IWG) meet hosted by AAI

Inauguration of AAI’s stall at Wings India 2020 at Begumpet, Hyderabad

AAI’s participation in World Routes 2019 at Adelaide, Australia

Inauguration of AAI’s Pavilion at 22nd India International Security Expo (IISE), 2019

12 HIGHLIGHTS Workshops / Meets

Workshop on Integration of Airport Collaborative Decision Making with Air Traffic Flow Management hosted by AAI

Workshop on Cyclonic Resistance Design Considerations for Infrastructure Development organised by AAI

Inauguration of a two day Domestic Airport Lab at Tiruchirappalli International Airport hosted by AAI

Meeting of high-level Canadian delegation with AAI officials to discuss cooperation in field of Aviation Infrastructure, Airport Development of Indian Airports

13 Annual Report 2019-20

HIGHLIGHTS Sports

All India Public Sector Badminton Championship 2019-20 hosted by AAI

Inauguration of All India Inter Zonal Table Tennis Tournament 2019-20 organised by AAI

Flagging off the All India AAI Relay Cycle Expedition 2019-2020

53rd Senior National Women Kho-Kho Championship 2019-20 won by AAI

14 HIGHLIGHTS Others

24th AAI Annual Day celebrations at Siri Fort Auditorium, New Delhi

Observance of Integrity Vigilance Awareness Week 2019 at AAI`s Corporate Headquarters, New Delhi

A three-day camp “PRERNA – 3” organized at Airports Authority of India Officers Institute

Observance of 5th International Yoga Day at AAI

15 Annual Report 2019-20

Lucknow Airport Members’ Report for the Year 2019-20 We are pleased to present the 25th Board’s Report of the Airports Authority of India (AAI) together with audited Statement of Accounts and the Auditors’ Report thereon for the nancial year ended 31st March, 2020.

FINANCIAL HIGHLIGHTS (FY 2019-20) (Amount in ` Crores) Particulars FY 2019-20 FY 2018-19

Revenue from Operations (Aeronautical & non-aeronautical revenue) 12261.75 13086.69 Other Income 575.69 1046.27 Total Revenue 12837.44 14132.96 Total Expenditure other than nance costs and Depreciation 7264.52 8877.58 Finance Costs 4.61 6.50 Prot Before Tax & Depreciation 5568.31 5248.88 Depreciation and Amortisation 1751.25 1564.89 Prot Before Tax 3817.06 3683.99 Tax expense including Deferred Tax 1831.97 1412.55 Prot After Tax 1985.09 2271.44

Amount distributed as Dividend: (i) Interim Dividend & Dividend Tax 819.78 874.03 (ii) Final Dividend & Dividend Tax 138.57 48.78 Transferred to Reserves: (i) Corporate Social Responsibility Reserve (41.91) (2.77) (ii) Airport Development Reserve 427.46 540.56 (iii) General Reserve 641.19 810.84

16 TRANSFER TO RESERVES Chairman of the Authority. However, since last In accordance with the provisions of the AAI Act, Board's Report, there were following changes in 1994, AAI transferred `427.46 Crores and the Members of the Authority: - `641.19 Crores to the Airport Development Government Directors Reserve and General Reserve, respectively from Ministry of Civil Aviation (MoCA) vide its the prots for the nancial year 2019-20. Notication No. AV-24015/2/2015-AAI-MOCA dated 20th December 2019 appointed Shri DIVIDEND Praveen Garg, IAS, Additional Secretary & As per the Ministry of Finance, Department of Financial Advisor, MoCA (Additional Charge), as Investment and Public Asset Management (DIPAM) Part-time Member on the Board of Airports OM F. No.5/2/2016-Policy dated 27/5/2016, Authority of India with immediate effect for a every CPSE is required to pay 30% of PAT or 5% of period of three years or until a regular incumbent the networth, whichever is higher. Accordingly, a joins the post of Financial Advisor, Ministry of Civil dividend of `818.57 Crores (being 5% of Net Aviation or until further orders, whichever is worth) is proposed for the year 2019-20 against earlier. which `680 Crores was paid as Interim Dividend and the balance Amount of `138.57 Crores is Later, Ministry of Civil Aviation (MoCA) vide its proposed as Final Dividend. AAI is seeking Notication No. AV-24011/4/2020-AAI-MOCA exemption from for any dated 13th February 2020 appointed Shri demand for Additional / Special Dividend for the Vimalendra Anand Patwardhan, Joint Secretary & FY 2019-20. Financial Advisor, MoCA vice Shri Praveen Garg, CHANGES IN THE CAPITAL STRUCTURE, LONG former Additional Secretary & Financial Advisor, TERM LOANS AND OTHER SIGNIFICANT ITEMS MoCA (Additional Charge), as Part-time Member AAI is 100% Government owned Statutory on the Board of Airports Authority of India with Corporation. There were no changes, during the effect from the date of the Notication for a period nancial year 2019-20, in the capital of AAI and it till 25th October, 2022 or until further orders, stood at `656.56 Crores as on March 31, 2020. whichever is earlier. Long Term Borrowings of AAI comprises of loans Independent Directors from Foreign Financial Institutions - Guaranteed Consequent upon completion of 3-year tenure in by GoI and Lease Obligations. The long-term February 2020 (as per appointment order), Dr. borrowings of AAI as on 31.03.2020 was ` 91.56 (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) and Air Crores as compared to `37.16 Crores as on Chief Marshall (Retd.) Fali H. Major, ceased to be 31.03.2019. Increase in the borrowings has been on account of the lease obligations of `54.08 the board members of AAI. Consequent upon their Crores in FY 2019-20 (Previous Year – Nil) which cessation, strength of independent board are against the assets acquired on lease. members in AAI stands reduced from 4 (four) to 2 (two). BOARD OF DIRECTORS, BOARD COMMITTEES AND MEETINGS Order from the Ministry of Civil Aviation is awaited Corporate Governance Report for the nancial for appointment of and lling up of 2 vacant posts year 2019-20 forms part of this Report as : of Independent board members. Annexure-1. Details of the Board of Directors, Functional Directors Board Committees and Meetings are provided in In accordance with the Ministry of Civil Aviation the said Annexure. Notication issued vide letter No. AV.24011/22/ CHANGES IN THE CHAIRMAN AND MEMBERS 2016-AAI-MOCA dated 25th September 2019, OF THE AUTHORITY the Central Government accepted the resignation Shri Arvind Singh, IAS continues to be the of Shri S. Suresh from the post of Member

17 Annual Report 2019-20

(Finance), AAI and consequent premature • Under the third phase of UDAN scheme, water termination of his appointment to the said post aerodromes will be developed within the ambit with immediate effect. Later, Ministry of Civil of aviation expertise of AAI and cooperation of Aviation entrusted Shri Vineet Gulati, Member the concerned State Government(s). In the rst (ANS) additional charge of the post of Member phase, 11 (Eleven) sites have been identied (Finance), in addition to his own duties. Shri Gulati for the development as water aerodromes. held this position, on additional charge, till • To establish and enhance strong regional air 13.05.2020, i.e. till the date of assumption of connectivity, the Ministry of Civil Aviation under charge by Shri K. Vinayak Rao as Member the fourth phase of UDAN – 4.0 announced (Finance), AAI. commencement of the bidding process with a focus on the North Eastern Region (NER), Hilly Shri K. Vinayak Rao was appointed as Member States, & Kashmir, , and (Finance), AAI vide File No. 16/1/2020-EO(ACC) Islands. The objective is to increase air dated 13.04.2020 of the Appointments connectivity through scal support, Committee of the Cabinet (ACC) for the period infrastructure development and to boost the starting from the date of his assumption of charge tourism sector as a whole. The scheme aims to of the post till the date of his superannuation i.e., operationalise 1000 routes and more than 31.10.2022, or until further orders, whichever is 100 airports in the next ve years. earlier. • AAI signed an MoU with the Government of Himachal Pradesh for the development of a The Board places on record its sincere new Greeneld Airport at Nagchala near appreciation for the support, guidance and Mandi, through a Joint Venture Company. contribution made by the ex-board members during their association with AAI. • AAI signed an MoU with Aireon LLC for implementation of Space Based Automatic IMPORTANT CHANGES IN POLICY AND MAJOR Dependent Surveillance – Broadcast (ADS – B), EVENTS, WHICH INFLUENCED OR AFFECTED a satellite-based technology to provide air THE PROFITABILITY OF THE AUTHORITY trafc surveillance over an entire oceanic DURING THE YEAR region of Indian Flight Information Region • AAI is going to invest `20,000 Crores in (FIRs). This breakthrough technology will be coming ve years for development and able to provide real time surveillance and upgradation of existing AAI airports across the situational awareness similar to radar in country. The Hon'ble Prime Minister has terrestrial airspace, further enhancing safety, envisioned that additional 100 airports to be improving efcacy, greater ight predictability made operational within next ve years and and air trafc ow management. AAI is meticulously pursuing the goal. • Concession Agreement were signed between • AAI signed an MoU with the Ministry of Civil AAI and the Adani Group for the management Aviation for the year 2019-20, whereby AAI and development of Ahmedabad, Lucknow had undertaken an ambitious target of ` 3880 and Mangaluru airports. Under the Crores towards capital expenditure on airport agreement, the Adani Group subsidiaries will infrastructure development and more than hold management control over the airports for 90% of the target was spent during the year. a period of 50 years. The concession fee that AAI would receive will be utilised for the • Under Union Budget 2020-21, Government maintenance and upgradation of the smaller introduced Krishi Udan scheme on both airports. This will also help in achieving the domestic and international routes to help ambitious target of development of 100 more farmers in transporting agricultural products airports by 2024 to support the RCS-UDAN and improve the product value. scheme.

18 • The Civil Aviation Training College (CATC), • Fani Cyclone Prayagraj, was awarded the approval of Air The extremely severe cyclone Fani hit Odisha Trafc Services Training Organisation (ATSTO) and dismantled the entire region. During the Certicate by DGCA, which makes it an ofcial training organisation, that can now deliver panic times of Fani, high wave warning approved training courses to aspiring Air messages were broadcasted by ESSO- Trafc Controllers, a mandatory requirement INCOIS, the Ocean Information Service as per ICAO towards issuance of Air Trafc Provider using AAI's GPS-Aided GEO Controllers' licence. Augmented Navigation (GAGAN) Messaging • 2 (two) new subsidiaries of AAI, namely Service via GEO satellites. The Satellite-Based Limited and Dhalbhumgarh Navigation System, GAGAN is capable of Airport Limited, were incorporated during the broadcasting alert or an early warning directly year. AAI holds 51% in these companies, either on a hand-held receiver or on mobiles whereas the other JV partner i.e. the State for users in the deep sea. Government of holds 49%. These The storm with a top wind speed of 205 kmph companies were incorporated to develop, operate and maintain the Deoghar Airport did considerable damage to the infrastructure and Dhalbhumgarh Airport in the State of of the Bhubaneswar Airport. But, with excellent Jharkhand. FY 2019-20 is the rst nancial preparedness and advanced intimation, the year of these companies. The nancial situation was handled meticulously. The team statements of these companies, once at the Bhubaneswar Airport, under the approved by their board, shall be uploaded on guidance of CHQ, came up with a contingency AAI's website too. plan for restoration and swiftly managed to get AAI has been incessantly playing a signicant role the airport operational in a day's time. as an entity that is not just the backbone of air • Covid19 Outbreak travel but has been proactively functioning as the binding force for the country. Of late, AAI in To limit the spread of the coronavirus disease, coordination with the state administrative more than 220 countries and territories machineries and Indian defence forces have been worldwide have imposed travel restrictions. at the forefront handling many emergency Such travel curbs have affected the travel and situations, natural calamities and aiding air trafc tourism industry the most. The Covid-19 across the country during moments of distress. pandemic is likely to push the Airports • Heavy rains and ood situations in Western Authority of India (AAI) into losses in FY21, for and Southern Parts of India the rst time since its formation in 1995. The quantum of loss will depend on the extent of There had been heavy rains and ood the effect of the pandemic on trafc ow at situations in Western and Southern parts of airports. Steps taken by AAI to contain the India. Our airports in these affected areas spread of virus has been discussed in detail in especially Vadodara in , Kolhapur in the Management Discussion & Analysis, which Maharashtra, Belagavi and Hubali in forms part of this report as Annexure - 2. Karnataka, Calicut and Trivandrum in Kerala and in have done MEASURES TAKEN FOR IMPROVING THE tremendous work in these adverse weather FUNCTIONS AND PROFITABILITY OF THE conditions. Various airport departments with AUTHORITY effective co-ordination among themselves and AAI's initiatives towards infrastructure other state/central agencies have been able to development and other measures to improve effectively provide the much needed functions and protability have been discussed in connectivity during the otherwise disrupted detail in the Management Discussion and Analysis connectivity to these areas.

19 Annual Report 2019-20

which forms part of this report as Annexure - 2. vii. Opportunities and Threats; MANAGEMENT DISCUSSION & ANALYSIS viii. Material developments in Human Resources, Management Discussion & Analysis Report forms Industrial Relations front, including number of part of this Report as Annexure - 2 which include people employed. discussion on the following matters within the DETAILS OF WORKS COMPLETED, PROGRESS limits set by the AAI's competitive position: OF THE SANCTIONED SCHEMES UPTO MARCH i. Industry structure and developments; 2020 AND DEVELOPMENT OF AIRPORTS IN NORTH EAST REGION ii. Strength and weakness; Detail of works completed, progress of the iii. Risks and concerns; sanctioned schemes by AAI and development of iv. Major Achievements; airports in North East Region upto March 2020 is v. Outlook; provided in Annexure – 3. vi. Internal control systems and their adequacy;

SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANY As on March 31, 2020, the following are the subsidiaries / JVs / Associate Company of AAI:- S. No. Name of the Subsidiary / Joint Venture Subsidiary / Joint Venture

1. AAI Cargo Logistics & Allied Services Company Ltd. (AAICLAS) Subsidiary (100%) 2. Chandigarh International Airport Limited (CHIAL) Subsidiary (51%) 3. International Airport Company Limited Subsidiary (51%) 4. Deoghar Airport Limited Subsidiary (51%) 5. Dhalbhumgarh Airport Limited Subsidiary (51%) 6. Delhi International Airport Limited (DIAL) Joint Venture (26%) 7. Mumbai International Airport Limited (MIAL) Joint Venture (26%) 8. GMR Hyderabad International Airport Limited (HIAL) Joint Venture (13%) 9. Bangalore International Airport Limited (BIAL) Joint Venture (13%) 10. National Flying Training Institute Private Limited, Joint Venture (46%) 11. MIHAN India Limited, Nagpur Joint Venture (49%) 12. Kannur International Airport Limited Joint Venture (10%) 13. Digi Yatra Foundation Joint Venture (26%)

Other than the companies listed above, AAI is also 135 of the Companies Act, 2013, AAI has a partner in the Indian Aviation Academy, an constituted a CSR Committee. The composition autonomous body which is the joint training and terms of reference of the CSR Committee is academy of Airports Authority of India (AAI), provided in the Report on Corporate Governance, Director General of Civil Aviation (DGCA) and which forms part of this Report. AAI has also Bureau of Civil Aviation Security (BCAS) and was formulated a Corporate Social Responsibility set up under the agis of NIAMAR-Society in 2010. Policy, which is available on AAI’s website at It aims to provide education, training and research https://www.aai.aero/sites/default/les/csr_polic in the eld of aviation management, in ASIA- y/Corporate%20Social%20Responsibility%20%2 PACIFIC Region. 6%20Sustainability%20Policy%202017-2209.pdf CORPORATE SOCIAL RESPONSIBILITY AAI is committed to play a larger role in India’s In accordance with the requirements of the DPE sustainable development by embedding wider guidelines on CSR and Sustainability and Section economic, social and environmental objectives.

20 During the year, AAI spent `125.70 Crores on CSR service areas which includes 8 major categories equivalent to 3.00% of the average net prots of such as access, check-in, security, airport facilities, the last three years which is more than the food and beverage, retail and more. ACI-ASQ prescribed limit of 2% under the DPE guidelines survey is carried out at around 356 airports across and Section 135 of the Companies Act, 2013. North America, Latin America and Caribbean, A detailed update on the CSR initiatives of AAI is Africa, Europe, Middle East and Asia Pacic. The provided in the Corporate Social Responsibility ASQ survey results are also monitored by AERA, Section, which forms part of this Annual Report. NITI Aayog and MoCA. The Annual Report on Corporate Social During 2019, ASQ survey was carried out at 25 Responsibility u/s 135 of the Companies Act, AAI airports. AAI’s continuous efforts to improve 2013 is annexed as Annexure - 4 to this Report. the services and passenger facilities at its airports AUDITOR AND AUDITORS’ REPORT have placed AAI amongst the best service provider in the world. As many as 4 AAI airports have won C&AG is the sole auditor of Airports Authority of 10 ASQ awards in different categories in Annual India, a Statutory Corporation constituted under ASQ Awards 2019. Airports Authority of India Act, 1994. LIST OF INDIAN AIRPORTS WINNING ANNUAL AAI is required to prepare its accounts in the ASQ AWARDS 2019 format prescribed under the rules, framed in consultation with the C&AG and the specic AIRPORT NAME SIZE AWARD CATEGORY provision(s) relating to accounts in the Airports CHANDIGARH (2-5 million Best Airport by Size Authority of India Act, 1994. After preparation of passengers and Region the Annual Report, the same is laid before both the per year) Best Environment and Houses of Parliament, together with a copy of the Ambience Audit Report. Best Airport by Customer (Amount in ` Crores) Service by size Particulars FY 2019-20 FY 2018-19 Best Airport by Capital Items Infrastructure Capital Goods Purchase (558.15) (772.89) and Facilitation by size Repayment of Foreign loans (2.72) (2.65) MANGALORE (2-5 million Best Airport by Size Revenue Items passengers and Region Spare Parts (74.18) (103.16) per year) Foreign Travel (8.80) (9.99) Consultancy (1.34) (1.73) TRIVANDRUM (2-5 million Best Airport by Size passengers and Region Others (21.80) (37.59) per year) Services 1034.94 1137.60 Expenditure shown in () LUCKNOW (5-15 million Best Airport by Size ANNUAL ASQ AWARDS 2019 passengers and Region Airport Service Quality (ASQ) is the world- per year) Best Environment and renowned and globally established global Ambience b e n c h m a r k i n g p r o g r a m m e m e a s u r i n g Best Airport by Customer passengers’ satisfaction whilst they are travelling Service by size through an airport conducted by the Airports Best Airport by Council International (ACI). Infrastructure and ACI, a global non-prot organization of Airport Facilitation by size Operators, is an independent agency which carries out international bench marking of airport through its participative program known as Airport Service Quality (ASQ) Survey which covers 34 key

21 Annual Report 2019-20

The ASQ rating of AAI airports for the year 2019 over 2018 is given below: -

2019 2018 Difference in rating Name of the airport ASQ RATING RANK ASQ RATING RANK of 2019 over 2018

1 2 3 4 5 6 Chandigarh 4.97 16 4.90 25 0.07 Trivandrum 4.86 40 4.86 33 0.00 Lucknow 4.86 41 4.86 32 0.00 Ahmedabad 4.86 43 4.77 45 0.09 Mangalore 4.84 46 4.87 31 -0.03 Indore 4.81 48 4.80 41 0.01 Varanasi 4.80 49 4.77 46 0.03 Calicut 4.78 55 4.74 49 0.04 Pune 4.71 61 4.71 55 0.00 Kolkata 4.71 62 4.79 44 -0.08 Amritsar 4.70 63 4.61 70 0.09 Bhubaneswar 4.68 66 4.73 52 -0.05 Ranchi 4.66 72 - - - 4.65 73 4.63 67 0.02 Raipur 4.63 75 - - - Jaipur 4.58 81 4.57 74 0.01 Chennai 4.58 82 4.65 63 -0.07 Trichy 4.52 87 - - - Guwahati 4.50 93 4.64 66 -0.14 Vizag 4.49 95 4.38 111 0.11 Coimbatore 4.39 121 4.59 72 -0.20 Srinagar 4.36 131 4.68 61 -0.32 Patna 4.26 162 4.41 101 -0.15 4.14 213 3.70 320 0.44 Port Blair 3.96 290 - - - Average of 4.61 4.65 -0.04 AAI airports World average 4.24 4.21 0.03

MEMORANDUM OF UNDERSTANDING presence at different regions too (Northern, Department of Public Enterprises (DPE) and High- Eastern, Western, Southern & North-Eastern). The Powered Committee has approved AAI’s role and functions of Vigilance Department is in performance on MoU parameters at ‘Good’ with a conformity with CVC’s special chapter on composite score of 68.25 for the nancial year “Vigilance for the PSUs”. 2018-19. The Vigilance Department of AAI is being headed VIGILANCE ACTIVITIES by Shri Amal Garg, IRS (IT: 1995 batch) as Chief Vigilance Ofcer, AAI since 21.10.2020. Before Principal Ofce of the Corporate Vigilance his joining, the department was headed by Ms. Arti Department (CVD) of AAI is located at Corporate Bhatnagar, IDAS (from 23.03.2020 to Headquarters at New Delhi whereas it has its 19.09.2020), and Shri R. S. Bhatti, IPS (from

22 27.12.2017 to 31.01.2020). and a strong employee – employer relationship in AAI being a service organization, the role & all its establishments and it have continued to be functions of Vigilance Directorate is three pronged cordial throughout the year. – Preventive, Punitive and Detective. In its During the Financial Year 2019-20, there have preventive role, CVD carries out awareness been no loss of man days on account of campaigns wherein it creates sensitivity towards Strike/Absenteeism and Lockout except day-to-day matters having scope for malpractices hampering of operation. This is a signicant and corruption. These campaigns include achievement on the part of AAI and shows a Vigilance Awareness Week (VAW), which is an remarkable and healthy sign about the strong yearly event and Vigilance Awareness employee – employer relationships. programmes like Workshops, Lectures, Seminars AAI is committed to the training of its personnel in etc. being conducted throughout the year at the eld of Industrial Relations Management different locations to achieve the objective of zero techniques, and for creating a close working tolerance for corruption. In its detective/ relationship with its employees, at all levels. It surveillance role, it plans and carries out surprise, makes constant endeavour to establish, maintain regular and CTE Type inspections to detect the and continuously improve communications with its systemic failure and existence of corruption and workforce in maintaining healthy industrial malpractices, if any. It also scrutinizes the internal relations by settlement of issues by way of holding audit reports and annual property returns etc. to quarterly meetings and one union being a look for actions with a vigilance angle. bargaining agent. CVD as a part of its proactive role urges various AAI emphasises on healthy trade unionism and key departments to codify their work procedures proactive approach in dealing with the employees and revise their manuals for bringing related issue with the following methods. transparency at workplace and reducing the scope (I) Bi-partite Forums; for discretion. CVD on the basis of outcome of deliberations taking place in workshops and eld (ii) Grievance Redressal Mechanism; i n s p e c t i o n s , m a k e s u g g e s t i o n s t o t h e (iii) Welfare Measures. management for systemic improvements on Further, in AAI, the representatives of recognized important issues. union (declared on the basis of secret referendum) SAFETY OF WOMEN EMPLOYEE are allowed to participate in various committees formed for the policies relating to employees and As per the requirement of ‘The Sexual Harassment with regard to their welfare to safeguard the of Women at Workplace (Prevention, Prohibition & interest of employees as well as of management by Redressal) Act, 2013 and Rules made there under, securing the highest level of mutual understanding AAI has a policy for the same. and goodwill to maintain harmonious relations of Given below is the summary on the complaints employee-employer. This arrangement is not only handled during the nancial year 2019-20 resulting in higher productivity but also developing regarding sexual harassment of women at and improving the skill of workers. workplace:- By this way, Airports Authority of India on the one No. of complaints as on 01.04.2019 03 hand try its best to avoid Industrial conicts e.g. Complaints received during the nancial year 2019-20 03 Strikes /Lockouts, Go slow, Protest rally, Mass Casual Leave and gheraos but on the other, Complaints disposed off during the nancial year 2019-20 02 establish & maintain Industrial harmony. Complaints pending as on 31.03.2020 01 The Government of India (Ministry of Labour and EMPLOYEE-EMPLOYER RELATIONS, STRIKES, Employment) has, through Gazette Notication ETC. No.S.O.1808 (E) dated 05.08.2011, amended Airports Authority of India maintains a item 27 of the First Schedule of the Industrial harmonious & congenial working environment Disputes Act, 1947 to declare the ‘Service in the Airports Authority of India’ as ‘Public Utility Service’

23 Annual Report 2019-20

SPORTS ACTIVITIES • AAI-SCB funded the All India Kho Kho AAI continues to proactively promote sports. It has Federation for organizing All India Kho Kho always vigorously encouraged sports either by Competition at Jaipur in 2019. participating or sponsoring various sports related • AAI-SCB has also organized All India Public schemes and scholarships. AAI has elded its team Sector Football Tournament at Raipur in 2018. in various sports tournaments. AAI’s Sports PROGRESSIVE USE OF HINDI achievements during FY 2019-20 are given below: Airports Authority of India ensures compliance of Act and Rules under Ofcial Language Policy of Badminton Government of India. AAI conducts Ofcial • AAI’s Badminton Team won the prestigious Language Implementation Committee meetings 83rd Senior National Championship at at CHQ and all stations in each quarter of the year. Guwahati rst time ever. Further, regular inspections are carried out at AAI’s • AAI-SCB Badminton Team (both Men & Regional & Subordinate Ofces to monitor Women) won All India Public Sector implementation of Ofcial Language in the Badminton Tournament in February 2020, rst organization and accordingly, necessary t i m e e v e r A A I t e a m w o n b o t h t h e instructions / suggestions, wherever required, are Championships. given to the concerned ofces. Kho-Kho During the nancial year 2019-20, various Hindi • AAI’s Women Kho-Kho Team won National workshops were conducted at CHQ, Regional Championship in December 2019 at Raipur. Headquarters and eld stations to encourage the employees for the use of Hindi, of which 49 Hindi • Indian Women Kho-Kho team participated in workshops were conducted at CHQ only, where South Asian Games at Kathmandu, the Indian 570 Executives and 276 Non-executives were Squad comprising of six Women from AAI. trained. This effort of AAI’s Hindi Directorate to Chess conduct such number of workshops in a single • AAI’s Chess Team bags Runners up Trophy in year is exemplary. National Chess Games, held at Ahmedabad In addition, Hindi Pakhwada was also organized in 2019. in CHQ & every station from 14th to 30th • AAI’s Chess Team (both Men & Women) September 2019. During the Pakhwada, All India declared Runners-up in All India Public Sector Hindi KaviSammelan was also organized. Chess Tournament at Lucknow in February 38 personnel were rewarded under the incentive 2020. schemes to encourage the ofcers / employees Table Tennis working in the various directorates and • AAI-SCB Table Tennis Team bags IInd Runners subordinate ofces to implement the ofcial up in Institutional Table Tennis Tournament in language. November 2019. Different kinds of competitions were held during • AAI (both Men & Women teams) won Runners the year and the winners were awarded prizes. up Trophy in All India Public Sector Table Tennis Besides that, all the other participants were given Tournament held at Trivandrum in November participation award to encourage them. 2019. Ministry of Civil Aviation has awarded rst prize to During the year, AAI organized the following AAI amongst all the departments / PSUs under its sports events: control, for exemplary use of Hindi. Further, AAI’s • AAI-SCB has organized All India Public Sector in-house magazine ‘ARPAN’ which is being Badminton Tournament at Jaipur in February published by Hindi Directorate, CHQ was 2020, in which 14 Public Sector Undertakings awarded second prize by the Ministry of Civil participated. Aviation.

24 MEMBERS’ RESPONSIBILITY STATEMENT (v) the Members had devised proper systems to The Members to the best of their knowledge and ensure compliance with the provisions of all belief conrm that: applicable laws and that such systems are adequate and are operating effectively. (i) in the preparation of the annual accounts for the nancial year ended March 31, 2020, the ACKNOWLEDGEMENTS applicable accounting standards had been The Members wish to place on record their followed and proper explanation is provided appreciation for the support extended by the where there is any material departure from the Ministry of Civil Aviation, DGCA, BCAS, DPE, same; Comptroller & Auditor General of India and other (ii) the Members had selected such accounting departments of the Government of India and State policies and applied them consistently and Governments, Customers, Bankers, Vendors, made judgements and estimates that are Business Partners and other agencies. The reasonable and prudent so as to give a true Members also wish to place on record the support and fair view of the state of affairs of AAI at the and cooperation received from the Regional end of the nancial year ended March 31, Ofce of ICAO at Bangkok as well as the ICAO 2020 and of the prot of the AAI for that Headquarters at Montreal in various facets of the period; functioning of AAI. (iii) the Members had taken proper and sufcient The Members would also like to place on record care for the maintenance of adequate their sincere appreciation for the valuable accounting records for safeguarding the assets contribution, unstinted efforts and the spirit of of the AAI and for preventing and detecting dedication shown by the employees of AAI at all fraud and other irregularities; levels in ensuring satisfactory all-round operational performance and especially for their (iv) the Members had prepared the annual continued support during the testing times of accounts on a ‘going concern basis’; Covid19.

On behalf of Airports Authority of India

Sd/- Arvind Singh, IAS Chairman

25 Annual Report 2019-20

Kolkata Airport

Annexure-I Corporate Governance Report

Corporate Governance is a set of systems and actualizing the AAI’s belief in ethical corporate practices to ensure that the affairs of the citizenship and is manifested through exemplary organization are being managed in such a way standards of ethical behavior, both within the which ensures accountability, transparency, organization as well as in external relationships. fairness in all its transactions in the widest sense and to meet its stakeholders’ aspiration and 1. BOARD OF DIRECTORS societal expectations. The Board of Directors (“Board” or “the Board”) of Airports Authority of India (AAI) believes that an any organization is the ag bearer of the organization must provide empowerment to the corporate governance principle and practice and executive management and simultaneously create it oversees and ensures that long term interest of a mechanism of checks and balances, which all the stakeholders is protected. ensures that the decision-making powers vested in AAI’s Board, being the trustee of the organization, the executive management are used with due care is responsible for the establishment of cultural, and responsibility and are not being misused. Our ethical and accountable growth of the Governance practices stems from an inherent organization and is constituted with a high level of desire to improve, innovate and reects the culture integrated, knowledgeable and committed of trusteeship that is deeply ingrained in our value professionals. The functional members on the system and forms part of the strategic thought Board are highly experienced personnel in their process. respective functional areas who provide directions AAI is committed to the adoption of best to the management on operational issues, governance practices and its adherence in the true adoption of systems and best practices in spirit, at all times. AAI’s Corporate Governance management and oversee compliance of various processes continuously reinforce and help in statutory, legal and other requirements.

26 AAI is an unlisted Statutory Corporation Order from MoCA is awaited for the appointment constituted under the Act of Parliament i.e. Airports and lling up of 2 (two) vacant posts of non-ofcial Authority of India Act, 1994 (“the Act”) and is (Independent) members which are lying vacant 100% owned by the Government of India. Its since cessation of Dr. (Ms.) Tuktuk Ghosh Kumar, Board Structure / composition is governed by the (IASRetd.) and Air Chief Marshall (Retd.) Fali H. Act. AAI’s Board has an optimum combination of Major in February 2020. functional, government, independent and woman 2. BOARD / COMMITTEE MEETINGS members. The Board Meetings and its Procedures are The Composition of the Board as on governed by the AAI (Transaction of Business) 31.03.2020 is given below:- Regulations, 1995 (“Regulations”). AAI complies Shri Arvind Singh Chairman with these Regulations w.r.t. convening and Shri Arun Kumar, IAS Ex-Ofcio Member conducting the Board / Committee Meetings. Director General of Civil Aviation AAI has an exhaustive Book of Delegated Powers Shri Vimalendra Anand Non-ofcial Member (BDP) and other manuals like Material Patwardhan, IA&AS (Part-time) Management, Works Manual etc. as duly Joint Secretary & Financial approved by the Board, which spell out the Advisor, MoCA processes and denes the level at which any Ms. Rubina Ali Non-ofcial Member decision is to be made and are reviewed from time Joint Secretary, MoCA (Part-time) to time to ensure that they are updated and meet Shri Anuj Aggarwal Functional Member the needs of the organization. AAI has adequate Member (HR) Board Level Committees which deliberate upon various important matters and advise the Board on Shri I.N. Murthy Functional Member the course of action to be taken. Member (Ops.) Shri A. K. Pathak Functional Member Regular meetings of the Board are held to discuss Member (Planning) and decide on various important issues including business policies & strategies. The agenda items, Shri Vineet Gulati(1) Functional Member circulated in advance to the members of the Member (ANS) Board, are exhaustive in nature and detailed Dr. KasamVenkateswarlu Non-ofcial Member presentations are made during the course of (Independent) discussion. Every proposal is examined and Shri G. Sekar Non-ofcial Member discussed in detail before a decision is taken. The (Independent) Committees of the Board deliberate upon major proposals before being recommended to the 1. In accordance with the Ministry of Civil Aviation Notication issued vide letter No. AV.24011/22/2016- Board. The Board regularly monitors the Action AAI-MOCA dated 25th September 2019, the Central Taken Report on its decisions. Risk areas are Government accepted the resignation of Shri S. Suresh outlined and mitigation processes are put in place. from the post of Member (Finance), AAI and consequent The terms of reference, quorum, periodicity of premature termination of his appointment to the said post with immediate effect. Later, Ministry of Civil aviation meeting etc. are clearly dened for each of Board entrusted Shri Vineet Gulati, Member (ANS) additional Committees, and approved by the Board. charge of the post of Member (Finance), in addition to his The schedule of Board / Committee meetings is own duties. Shri Gulati held this position, on additional charge, till 13.05.2020, i.e. till the date of assumption of circulated to the Members in advance to enable charge by Shri K. Vinayak Rao as Member (Finance), AAI. them to plan their schedule for participation in the meetings. Also, the intervening period between the Presently, the Board of AAI comprises of eleven two Board meetings was not more than three (11) members, which includes Chairman, DGCA months as stipulated in the AAI (Transaction of (Ex-ofcio Member), 5functional members, Business) Regulations, 1995. 2nominees representing the Ministry of Civil A v i a t i o n a n d 2 p a r t- t i m e n o n - o f  c i a l During the year under review, 5 (Five) meetings of (Independent) members. the Board were held i.e. on 15.05.2019,

27 Annual Report 2019-20

27.06.2019, 05.09.2019, 14.11.2019 and the Board from time to time. 23.01.2020. Meetings of the Audit Committee 3. AUDIT COMMITTEE The Company Secretary of the AAI acts as the As a measure of good Corporate Governance and Secretary of the Audit Committee. Internal to provide assistance to the Board in fullling the Auditors, Management and other Senior Board’s oversight responsibilities, an Audit Personnel of AAI, also attends the Meeting of Audit Committee has been constituted which is being Committee, as and when required. headed by an Independent Member. It is being ensured that minimum of two The Composition, quorum, power, role, review of Independent Members attend the meeting of the information etc. of the Audit Committee is in line Audit Committee. It is only after their availability; with the DPE Guidelines. Presently, the Audit the date of meeting is xed.During the year under Committee comprises of two non-ofcial review, the Committee met four times i.e. on independent members and one functional 27.06.2019, 04.09.2019, 13.11.2019 and member. All the members of the Audit Committee 22.01.2020. have knowledge of nancial matters and at least 4. NOMINATION AND REMUNERATION one member has expertise in accounting and COMMITTEE nancial management. The Board has constituted the Remuneration Consequent upon cessation of Dr. (Ms.) Tuktuk Committee which shall recommend to the Board Ghosh Kumar, IAS (Retd.), Air Chief Marshal to carry out evaluation of every employee’s (Retd.) Fali H. Major and Shri S. Suresh, Member performance related pay, annual bonus / variable (Finance) from the Board of AAI (who were also pay pool and policy for its distribution across the members of the Audit Committee), the Board re- executives and non-unionized supervisors within constituted the Committee. The present the prescribed limits. composition of the Committee is as follows: - The Remuneration Committee comprises of three Member’s Name Category Designation non-ofcial members as its members and is Shri G. Sekar Non-ofcial Chairperson (Independent) chaired by an independent member. Member Consequent upon cessation of Dr. (Ms.) Tuktuk Dr. Venkateswarlu Kasam Non-ofcial Member Ghosh Kumar, IAS (Retd.) and Air Chief Marshal (Independent) Member (Retd.) Fali H. Major as independent board Shri K. Vinayak Rao Functional Member members of AAI (who were also members of the Member (Finance) Remuneration Committee) in February 2020, the The terms of reference of the Audit Committee Board re-constituted the Committee. The present are:- composition of the Committee is as follows: - Member’s Name Category Designation • Examination of the nancial statements and Shri G. Sekar Non-ofcial Chairman the Controller & Auditor General’s Report (Independent) thereon. Member • To review the follow up action on the audit Dr. Kasam Venkateswarlu Non-ofcial Member observations of the C&AG audit. (Independent) Member • To review the follow up action taken on the Ms. Rubina Ali Part Time Member recommendations of Committee on Public Non-Ofcial Undertakings of the Parliament. Member (Government • Evaluation of internal nancial controls and Nominee) risk management systems. During the year under review, the Committee met once on • Discussion with internal Auditors. 04.09.2019. • Any other responsibility as may be assigned by

28 5. MEMBERS’ REMUNERATION AND THEIR Government of India and is governed by special APPOINTMENT Act of Parliament i.e. AAI Act, 1994. AAI is not Appointment of Members, including non-ofcial required to hold any annual general meeting, as members, on the Board of AAI is done by the Companies Act is not applicable to AAI. Further Central Government. AAI Act, 1994 does not contain any provisions relating to convening annual general meeting. While the ofcial members are being paid remuneration as approved by the Central 8. DISCLOSURE BY MEMBERS AND SENIOR Government, the non-ofcial independent MANAGEMENT members are being paid sitting fee as per the All the Board Members and Senior Management ‘Policy on Payment to Independent Members’ ofcials acts in good faith, in order to promote the approved by the Board. objects of the AAI and in the best interests of the 6. CSR COMMITTEE AAI and its stakeholders. All the Board Members Pursuant to the provisions of DPE Guidelines on and Senior Management ofcials exercise their Corporate Social Responsibility and Sustainability, duties with due and reasonable care, skill and and Section 135 of the Companies Act & rules diligence and exercise independent judgment. made thereunder, AAI’s Board constituted a The Board Members generally does not involve in Corporate Social Responsibility Committee which a situation in which they may have a direct or is presently being headed by Chairman, AAI. indirect interest that conicts, or possibly may Consequent upon cessation of Dr. (Ms.) Tuktuk conict, with the interest of the AAI. Further, there is Ghosh Kumar, IAS (Retd.), Independent Board no such possibility, because the governing statue Member of AAI in February 2020 (who was also a viz. the AAI Act, 1994 vide Section 4 disqualies a member of the CSR Committee), the Board in its person to be member on the board of AAI in case immediate next meeting, re-constituted the he / she has any nancial or other interest in the Committee. The present composition of the Authority as is likely to affect prejudicially the Committee is as follows: - discharge of his/her functions as a member. Member’s Name Category Designation 9. TRAINING OF BOARD MEMBERS Shri Arvind Singh Functional Chairperson At AAI, continuing education and training is a Chairman, AAI Member continuous process. Members are encouraged to Shri A. K. Pathak Functional Member attend the special training courses by various Member (Planning) Member professional bodies including programs by DPE to Shri Anuj Aggarwal Functional Member ensure that the members are refreshed and Member (HR) Member equipped to perform their roles in the highest Shri G. Sekar (Non-Ofcial) Member Part-time Member Independent standards and performance possible. If interested, Member members attend the relevant programs. The terms of reference of the CSR Committee are:- 10. MEANS OF COMMUNICATION • To formulate and recommend to the Board, a AAI produce periodic reports and press releases Corporate Social Responsibility Policy, which covering important matters relating to AAI. AAI shall indicate the activities to be undertaken by also have a facility for information sharing with the AAI as specied in Schedule VII of the stakeholders through the use of Information and Companies Act, 2013. Communication Technologies (ICT). • To recommend the amount of expenditure to 11. WEBSITE be incurred on the approved CSR activities. AAI’s website i.e. www.aai.aero contains • To monitor the Corporate Social Responsibility Policy of the AAI from time to time. dedicated sections for stakeholders. The Annual Report of the AAI is also available on the website in During the year under review, the Committee met a user friendly and downloadable form. Apart two times i.e. on 25.07.2019 and 06.01.2020. from that, CSR initiatives, passengers’ 7. ANNUAL GENERAL MEETING information, public information, vigilance, AAI is a statutory corporation – 100% owned by the nancial information etc. are also available.

29 Annual Report 2019-20

Ahmdabad Airport

Annexure-2 Management Discussion and Analysis

The objective of this report is to share and keep you INDUSTRY STRUCTURE abreast with the happenings and transformations The aviation industry is a service industry providing occurring within AAI, that in the industry and transport services. Air transportation shows many economy, its technology and its overall business characteristics which are typical for service strategies. Among other things, the MD & A industries, e.g. the intangibility of the product and provides an overview of the previous year of the high importance of personal contact to the operations and how AAI fared in that time. It also customer. provides the report on the upcoming year, outlining future goals and approaches to new Airlines and Airports are the two main players in projects. We begin with a general review of the the industry. While Airlines offer the actual industry, followed by the operational and nancial transport service whereas Airports provide the details of AAI including details of its human ground infrastructure to handle aircraft resources. movements. The manufacturing industry and Statements in the Management Discussion and aviation suppliers assemble aircrafts and provide Analysis describing AAI’s objectives, projections, spare products. As a provider of supplementary estimate expectations may be “forward looking processes, the industry relies on general service statements”. Actual results could differ materially providers such as air trafc control. from those expressed or implied. Important factors Indian Aviation Industry can broadly be divided that could inuence AAI’s operations include into military and civil aviation. Ministry of Civil economic developments within the country, Aviation is responsible for civilian aviation and demand and supply conditions in the industry, Ministry of Defence is responsible for the Indian Air input prices, changes in Government regulations, Force. tax laws and other factors such as litigation and industrial relations. The importance of the modern aviation industry is

30 difcult to overstate, but one of the main reasons as many of its participants are dealing with for this importance is the globalised nature of the business models that are inexible and operating industry, helping to connect different continents, on thin margins. Therefore, massive drops, in countries and cultures. As a result, global aviation travel stemming from COVID-19-related has been key in facilitating efcient travel to distant movement restrictions and plunging demand, places, enriching many lives in the process. have made survival the foremost concern for many The aviation industry has also been a key such participants. contributor to global economic prosperity, not only India is the third largest domestic civil aviation as a result of the tourism industry boosting local market in the world. However, thin prot margins, economies, but also because it has allowed for high operating cost, inated taxes and cut-throat improvements to global trade. price war make it one of the toughest aviation Meanwhile, the aviation industry also directly market. The covid outbreak has further added provides millions of jobs for people around the nancial woes of the sector. world, with examples including everything from As per the reports of IATA, due to Covid19, airline pilots and cabin crew, through to air trafc passenger revenues worldwide could drop by as controllers and aerospace engineers. On top of much as $419 billion in 2020. Regionally this, the aviation industry has helped to create speaking, Asia Pacic has seen the largest net many jobs in the wider travel and tourism industry prot impact. Deliveries of new aircraft are down too. signicantly. Leasing of new aircraft has also fallen INDUSTRY DEVELOPMENTS signicantly. Due to expected overcapacity, the leasing market is not expected to pick up earlier India was the fastest growing domestic air travel than summer 2021. market globally in 2019 with more people ying within the Country than the previous year. Airports need to adapt new safety and risk International Air Transport Association (IATA), in its management measures in conjunction with report, pointed that it expects the number of operators. Restarting aviation amid and following passengers ying to, from and within India to Covid19, various guidelines, practical guidance double in the next 20 years. In another report, and publications have been released by ICAO, International Civil Aviation Organisation (ICAO) IATA, ACI and WHO, from time to time, to ensure stated that India’s air connectivity is now among safe air travel which demonstrated considerable the world’s fastest growing and in delivering thought leadership. crucial sustainable development to local Government of India introduced ‘Lifeline Udan’ communities nation-wide. ights to transport essential medical cargo to The world, at present is combating with pandemic remote parts of the country to support India’s war Covid-19, which emerged from Wuhan () in against COVID-19. Further, it introduced ‘Vande December 2019 and within few months it took Bharat’ ights – a coordinated effort between the more than 215 countries across the world into its central and state governments of India to facilitate clutches. India is no different; with 3 cases n u m e r o u s i n t e r n a t i o n a l a n d d o m e s t i c reported as on 22 February, the number has evacuations. surpassed 80 lacs. The magnitude of virus Social distancing practices initiated by regulatory contagion spread in the absence of any antidote authorities to prevent infection outbreak will developed so far has left the countries across the nancially hit the pockets of the airlines and world with quarantine as the only remedy, despite airports especially. Declined PLF coupled with cost of its drastic consequences on the economy. of social distancing is expected to threaten the The nancial impact of COVID-19 has been huge commercial viability of airlines operations. This to the aviation industry worldwide. Aviation along with the cost of implementing other social industry was not built to deal with the current crisis, distancing and sanitization norms will further enhance the airlines’ costing. Airlines perhaps nd

31 Annual Report 2019-20

it difcult to cover the variable cost of their C) Social distancing norms: Social distancing operations. norms as per directives of MoH&FW are being All the agencies in the aviation industry including followed at every meeting point and in the Airline/Airport operators would require a well- queue at entry point, check-in, security and devised recovery plan supported by external boarding gates etc. Seating arrangement has agencies to safely regain its previous position and been done in such a manner so as to maintain replenish cash reserves. sufcient distance among passengers. Also, stickers/markings have been provided at the As government and industry restrictions on the appropriate locations. Kerb Area/ City side aviation industry begin to ease, it is vital that the trafc / Car parking area is being strictly procedures set out by the appropriate industry monitored in coordination with trafc police/ bodies and authorities are adhered to consistently DGR Staff to prevent congestion. Specic to control and manage risks such as the COVID- Identied Aerobridge is being provided to 19 pandemic and that every participant of the arriving International Passengers. Minimum industry need to ensure consistent effective risk passengers are permitted in Smoking lounge, management. Child care rooms to maintain social distancing MEASURES TAKEN BY AAI TO CONTAIN THE norms. SPREAD OF COVID19 D) Other safety measures: Passengers wearing As per the directives of the Ministry of Civil Aviation masks and with green status on Aarogyasetu and the Ministry of Health & Family welfare app are allowed to enter the Terminal building. (MoH&FW), AAI has taken following steps to All airport staff handling ights have been contain the spread of virus and ensure smooth and provided with required protective gears for the safe air journey: safety. Use of baggage trolleys is minimized. A) Contactless movement of passengers: AAI has Dedicated triage Area/ Isolation room has ensured contactless movement of passengers been provided for the suspected passengers. If right from entry gate till the boarding gate at its any suspected passenger is detected, health airports. Glass shields have been provided at ofcials shift him to hospitals as per guidelines. the entry gate and check-in-counters to avoid Health information and do's and don’ts as c o n t a c t b e t w e e n p a s s e n g e r s a n d issued by Ministry of Health & Family Welfare Security/Airlines staff. Passengers are has been displayed at Flight Information encouraged to web check-in and bring Display System (FIDS) and at other prominent printout of boarding card. Also, self-drop places. Also, announcements are being made baggage system has been provided. Security for the information of passengers. De- staff practices minimum touch concept during gowning area for medical personnel /crew to frisking. At boarding gates, passengers self divest and dispose Personal Protective scan their boarding card. Equipment has been provided at airports. Separate bins have been provided to collect B) Hygiene and Sanitisation: Cleanliness of every Bio hazardous garbage. Bio hazardous waste nook and corner of terminal building and is being disposed as per norms. surrounding areas (including washrooms, lifts, escalators, X-Ray machines, Chairs, counters, MEASURES TAKEN FOR IMPROVING THE railings, Security trays, doors, handles, etc.) is FUNCTIONS AND PROFITABILITY OF THE ensured at all AAI airports. Also, terminal AUTHORITY DURING FY 2019-20 building is sanitised on regular basis. Baggage India’s aviation industry is expanding in all and shoes of passengers is sanitized at the dimensions, undertaking huge strides along the entry gate. Sanitizer is being provided at way. Committed to the idea of upgrading airports strategic locations for passengers and airport infrastructure in the country with world class staff. Proper ventilation is being ensured at services, the Airports Authority of India (AAI) is Airports wherever it is possible.

32 continuously working towards holistic • AAI’s recently built International Air Cargo development. AAI as an organisation has been Complex at Lokpriya Gopinath Bordoloi responsive to change and has reinvented itself with International (LGBI) Airport, Guwahati time. commenced its operations. It is the rst to To enhance aviation infrastructure development promote cargo trade for the entire region with and ensuring better air connectivity, AAI has taken the completion of the gateway port and a new various measures for improving the functions and terminal. Guwahati has also become the 8th protability of the Authority which are summarised airport in India to implement the Airport hereunder: - Collaborative Decision Making (A-CDM) system. • Electronic Terrain and Obstacle Data (eTOD) Portal was launched for 5 (ve) airports, SVPI • AAI signed an agreement with NTrust Infotech A i r p o r t , A h m e d a b a d ; B P I A i r p o r t , – Anarock Consortium in order to make asset Bhubaneswar; Chennai International Airport; documentation a robust and real time process. NSCBI Airport, Kolkata and Trivandrum This move will help in asset rationalisation, Airport. As mandated by ICAO and DGCA, the lease administration and related services on a portal provides accurate terrain & obstacles pan-India basis through cutting edge Lease information for ight safety. As air trafc Administration Technology. The 3-year increases and airspace gets saturated, agreement will help in identifying the best accurate eTOD will result in efcient routes and potential of land asset, which in turn will procedures thereby reducing fuel consumption improve revenue stream for AAI, further and emissions. resulting in transparency, better management control and monitoring of costs for AAI. • Understanding the need of the hour, the state- of-the-art Network Operations Control Center • AAI is in the process of implementing facial (NOCC) was inaugurated, which will help recognition system - ‘DigiYatra’. This system augment communication and network will facilitate digital processing of passengers availability, reliability and security at the airports. Passengers will be appropriation with India’s fast-growing trafc. automatically processed based on facial recognition system at check points like entry • To provide uninterrupted surveillance, point check, entry in to security check, aircraft Specialised Maintenance Unit (SMU) was boarding. Additionally, this system will also inaugurated which will help reduce the down facilitate self-bag drop and check-in. time of the important surveillance facility i.e., Currently, the system is under trial at several RADARs of Indian airspace. The unit has been airports. set up for in-country repairing for the renovation of ELDIS radars. • 85 of AAI airports have become ‘Single-Use Plastic Free’. These airports took various steps • Keeping in mind, the growing air trafc and the to eliminate single-use plastic by promoting need for more efcient Air Trafc Control (ATC) usage of eco-friendly sustainable alternatives management at Indira Gandhi International and installation of plastic bottle crushing Airport, a new state-of-the-art ATC complex machines. with new ATC tower, upgraded equipments and world class infrastructure was made • A Startup Conclave was organised under the operational. Startup Initiative “Innovate for Airports”, where eight startups were awarded a “Letter of • For dynamically assessing the airspace Consent”. The Startup Policy of AAI is situation and capacity optimisation, the C- developed jointly with the Team ATFM Central Command Centre Complex was under Invest India. inaugurated.

33 Annual Report 2019-20

Various other aviation infrastructure development AAI has access to large land holdings that currently projects that were undertaken by AAI during FY are not under operational use. Like other airport 2018-19 are mentioned hereunder: - operators, AAI can monetize a part of its land • Foundation Stone for the New Domestic holdings and exploit them for commercial Terminal Building at was laid. developments, MROs, etc. Such developments can help enhance revenues and improve the overall • Swami Vivekanand Airport, Raipur is soon passenger experience. planning to function as an Aerotropolis – a city in itself, with service industries located around Technology in airport operations has changed the airport and major road and rail over the years. Airports globally are adopting infrastructure connected to it. This airport- state-of-the-art technology such as e-gates, driven economic development will shape the mobile applications for customers, automated future of the city. storage and retrieval processes, radio frequency identication (RFID) tags, etc., to improve KEY STRENGTHS AND WEAKNESSES operations, efciency in passenger movement, While large land holdings, network of airports improving passenger experience, etc. Further, a across the country, expertise in providing air number of airports have also implemented data navigation services, consistent protability and analytics tools to help them collect and analyse nancial resources, and experienced manpower data to better understand customer behaviour and are the key strengths of AAI, low share of non- predict passenger behaviour etc. This has helped aeronautical revenue, low growth of cargo airports design and operate airports better and business, skilled manpower shortage and training, enabled them to optimise the retail / F&B mix at limited focus on MIS and marketing are its key airports to enhance revenues. weaknesses. Engaging with customers, airlines and MAJOR OPPORTUNITIES AND THREATS passengers, has become critical for airport AAI has exciting aspirations as it moves into a new growth. Globally, it is seen that airports make era of development. AAI is focusing on ve signicant efforts to connect and engage with their priorities which are NCAP, RCS, AAICLAS, UAH & customers and promote services and offerings MRO that will enhance its reputation and position through social media, marketing promotions at on a global platform. airports, organizing shopping festivals, etc. An effective marketing strategy can help AAI promote Trafc is expected to grow in the coming years and new and existing services across businesses. AAI has the opportunity to translate the increasing passenger numbers into higher terminal revenues. AAI has signicant expertise in and is well Providing value added services within the terminal, recognized for its expertise in providing air having retail capture at the airports, and navigation services. A number of countries in the enhancing the food and beverage (F&B) setup at South Asian region are known to be not very the airports are some of the opportunities advanced in terms of expertise available for air available to AAI. navigation services. AAI can leverage its expertise to provide services such as consulting and There has been signicant growth over the past calibration of air navigation equipment to such few years in the air cargo business and the trend is countries. AAI also has vast human capital having only likely to strengthen with the growth of e- in-depth knowledge of airport planning and commerce and manufacturing industry. As engineering, airport development, and airport discussed earlier, AAI operates (through AAICLAS) operations. AAI can leverage human capital to cargo terminals at its airports using both the explore opportunities for providing services such operation and maintenance and self-handling as consulting, developing, operating and models, and is suitably placed to capitalize on this managing airports outside the country, focusing potential growth in air cargo. on developing countries (the South Asian, South- East Asian and African region).

34 Reliance on revenues beyond the control of AAI; on the availability and price of aircraft fuel. Obligation to implement RCS; Competition from Signicant disruptions in the supply of aircraft fuel other airport developers and operators; Stricter or continued periods of historically high fuel costs environment & safety norms and Terrorism are will materially adversely affect our industry. being considered as major threats. Also, Airport Further, Employee strikes and other labour-related Industry is highly Capital-intensive Industry and it disruptions may adversely affect our operations. takes much longer term to recover the higher cost Strategic risks like decisions related to pricing, of capital, which has an impact on airport lease development of airport infrastructure (either new terms. This along with Regulatory hurdles are also airports or expansion of existing airports), nding threats to AAI. new products or markets, entering into JV’s, A very less percentage of the country’s total aircraft alliance decisions would impact AAI’s growth and eet is presently deployed on regional routes. protability. Unless aircraft suited for regional routes y these Compliance risks regard the adherence with routes in big numbers, the idea of linking metros to external regulations and legislations, and any non-metros would remain largely under- non-compliance may lead to heavy penalties and achieved. More than 3/4th of the top 40-50% above all loss of reputation. Also, breach of routes are connected only to metro airports, and contract, even though unintentionally, may bring for UDAN to be successful, a concrete push with legal consequences impacting AAI. The aviation regard to aircraft suited for regional routes needs industry is subject to extensive government to be made. regulation, and new regulations may increase our RISKS AND CONCERNS operating costs. We are facing signicant We may divide the risks and concerns in four major litigation(s), and if any such signicant litigation is categories i.e. Operational risks, Strategic risks, concluded in a manner adverse to us, our nancial Financial risks and Compliance risks. condition and operating results could be materially adversely affected. Operational Risks – Hazardous activities affecting safety, inadequate nancial processes and IT Financial risks - AAI’s operations are exposed to a back-up systems are amongst the most typical variety of nancial risks too like credit risk, liquidity operational risks within the Aviation industry. risk, interest rate risk and foreign currency risk. Other Operational risks identied include Aviation industry is vulnerable to external factors, potential degradation of service delivery such as political tension and economic standards and maintenance challenges to aging conjunctures. Any negative development in facilities. Aviation industry is increasingly geopolitical and economic environment may dependent on technology in its operations, and if adversely impact our operational and nancial technology fails or if we are unable to continue to performance. invest in new technology, our business may be AAI understands the signicance of risk adversely affected. Unforeseen disruptions to ow management and its criticality for organization’s management including interruptions or success and business continuity. Thus, in AAI the disruptions in service at one of hub airports could Risk Management has been embedded in each have a material adverse impact on our operations. function to ensure its effective implementation. Further, we are at risk of losses and adverse Furthermore, the decisions at every level including publicity stemming from any accident involving Board level are taken considering the risk any aircraft. Insurance costs have increased involved. Also, Audit function reports the efcacy substantially, and further increase in insurance of risk management controls which helps the costs or reduction in coverage could have a management in improving the measures required material adverse impact on our business and to be taken in this regard. operating results. Aviation industry is dependent

35 Annual Report 2019-20

OUTLOOK services, and improving its services at airports to The Aviation industry has been one of the worst-hit deliver a better travel experience to passengers. corners due to the coronavirus pandemic that These measures have resulted in improved air diminished passenger revenues. The outlook for safety and passenger satisfaction as is reected in the aviation industry has deteriorated due to rising passenger experience survey results. coronavirus infections. Volume growth is expected At present, top priority of the sector in general, and to be in single digits over the next few months, as AAI in particular, is to transform the image of the pandemic continues to spread in India and airport infrastructure in the country, to be the most people forego non-essential travel. customer-friendly and to be at par with the best IATA, in its report, downgraded its forecast for managed airports in the world. We aim to achieve global passenger trafc and revenues, stating that this by augmenting our airports with state-of-the- it will not return to last year’s levels until 2024. art infrastructure, leveraging technology in line Most countries are still closed to international with global trends for Air Navigation facilities, arrivals or have imposed quarantines that have enhancing safety & operational efciency both in the same effect as an outright lockdown. It is the air and on the ground. expected that domestic markets will recover more AAI’s persistent efforts to improve the services and quickly than international markets due to passenger facilities at its airports have placed it government-imposed limitations, including amongst the best service providers in the world. In quarantine requirements. the ASQ (Airport Service Quality) Awards 2019 Post-lockdown, business doing will be not be as carried out by Airports Council International (ACI), usual. The aviation industry’s combat with Covid- four of our airports were adjudged as amongst the 19 and its after effects seems taxing and perhaps best in the world. long drawn-out. The sustainability and survival of Revenue Mix aviation agencies including airlines warrants AAI’s revenues can be broadly categorized into major changes in their strategies and business Aeronautical, Non-aeronautical, Airport lease model. Government support would be required revenues and other from Allied services such as and, in many cases, has already been provided. Consultancy projects. Aeronautical revenues for Intense competition and high operating costs are AAI are dominated by ANS charges (route the major factors affecting performance. To navigation facilities charges and terminal overcome the present challenge of covid crisis, navigational landing charges) whereas its Non- optimal utilization of resources, cooperation aeronautical revenues come from commercial rather than competition, and cost optimization operations at airports like retail, F&B, car parking, seem to be the possible way-outs for sustaining other concessions and rentals in terminals and city with commercially viable take-off on rough side premises. Lease revenues from major airports terrain. like Mumbai, Delhi etc. accounts for signicant BUSINESS OVERVIEW contribution in AAI’s revenues. As tariffs at these Airports Authority of India (AAI) is the leading airports are regulated by the Airports Economic Airport Operator and sole air navigation service Regulatory Authority of India (AERA) with reference provider in India. It owns and maintains 137 to trafc growth and investment plans of these airports and provides air navigation services for airports, AAI has no control over this revenue over 2.8 million square nautical miles of air space. stream. Over the past two decades, AAI has been at the Revenue of the Authority decreased by forefront of modernizing and developing airside & ` 1,295.52 crores (9.17%) as compared to terminal side infrastructure, air navigation previous year, details thereof is as follows:

36 Amount (in `Crores) Share in Share in Increase Increase the AAI’s the AAI’s (+) or (+) or S. Revenue Constituent FY 19-20 Total FY 18-19 Total decrease decrease No. Revenue in Revenue in () over () in terms terms of % terms of % last FY of % 1 Airport navigational 3592.96 27.99 3702.18 26.20 -109.22 -2.95 services 2 Airport services 3718.05 28.96 4491.59 31.78 -773.54 -17.22 3 Non-aeronautical 1887.74 14.71 1842.85 13.04 44.88 2.44 airport services 4 Airport lease revenue 3063.01 23.86 3050.07 21.58 12.94 0.42% 5 Other Income 575.69 4.48 1046.27 7.40 -470.58 -44.98% Total Revenue 12837.44 100.00 14132.96 100.00 -1295.52 -9.17%

Cost Mix for AAI (FY 2019-20) 4.48

27.99 23.86

14.71

28.96 Airport navigational services Airport services Non-aeronautical Airport services Airport lease revenue Other Income

FY 2019-20 witnessed minimal increase in Aircraft 01.07.2019 and reduction in PSF (Facilitation) – Movements at AAI Airports by 0.36% and decrease `66.50 Crores, reduction in GH Revenue - ` 13.31 in Aircraft Movements at all Airports by 0.73% as Crores and reduction in Throughput Revenue - compared with 2018-19. Further, the year ` 35.83 Crores. witnessed minimal increase in passenger Whereas increase in Non-Aeronautical Revenue movements at AAI Airports by 0.50% and decrease by 2.44% was mainly on account of increase in in passenger movements at all Airports by 1.06% Trading Concessions Revenue – `162.57 Crores as compared with 2018-19. and increase in misc. Non-Aero Airport Services Decrease in Airport Services Revenue by 17.22% Revenue – `13.91 Crores. Non-Aero Revenue also was mainly on account of the reduction in Aviation had a hit on account of reduction in Rent & Services Security Fee (ASF) - `764.40 Crores, creation of Revenue – `111.19 Crores and reduction in Car National Aviation Security Fee Trust w.e.f. Parking Revenue – `20.40 Crores.

37 Annual Report 2019-20

Airport Lease Income overall recorded a marginal reduction in EPCG Licence Income - `143.31 increase of 0.42%. Lease Income from DIAL Crores increased by `110.75 crores, whereas lease Cost Mix income share from MIAL decreased by `97.81Crores in 2019-20. AAI’s key expense categories include employee costs (comprising employee salaries, allowances Other Income of AAI decreased by 44.97% on and contributions to provident fund), operating account of reduction in Interest Income – expenses including aviation security, administration `264.80 Crores; reduction in Prot on Sale of Fixed expenses, nancing costs and depreciation. Assets - `6.17 Crores; reduction in Recruitment ` Exam Fee - `11.65 Crores; reduction in Sale of The expenditure has decreased by 1,428.59 Tender Forms - `7.77 Crores; reduction in crores (13.67%) in 2019-20 as compared to Concession Fee-AAICLASCL - `128.12 Crores and previous thereof, details thereof is as follows:- Amount (in `Crores) Share in Share in Increase Increase the AAI’s the AAI’s (+) or (+) or S. Revenue Constituent FY 19-20 Total FY 18-19 Total decrease decrease No. Revenue in Revenue in () over () in terms terms of % terms of % last FY of % 1 Employee Benets 4481.24 49.68 5158.98 49.38 -677.74 -13.14% Expenses 2 Operating Expenses 1751.64 19.42 1662.68 15.91 88.96 5.35% 3 Administrative and 626.34 6.95 823.68 7.88 -197.34 -23.96% Other Expenses 4 Finance Costs 4.61 0.05 6.50 0.06 -1.89 -29.08% 5 Depreciation & 1751.25 19.41 1564.89 14.98 186.36 11.91% Amortization 6 Security Expenses 405.30 4.49 1232.24 11.79 -826.94 -67.11% Total Expenses 9020.38 100.00 10448.97 100.00 -1428.59 -13.67%

Revenue Mix for AAI (FY 2019-20)

4.49 19.41

0.05 49.68

6.94

19.42 Employee Benets Expenses Operating Expenses Administrative and Other Expenses Finance Costs Depreciation & Amortization Security Expenses

38 Decrease in Employee Benet Expenses was Security Expenses in the books of AAI for the period mainly due to reduction in Contribution to April 2019 to June 2019 only owing to creation of Provident & Other Funds owing to: - National Aviation Security Fee Trust w.e.f. • reduction in Interest for AAI Employees Dened 01.07.2019. Pension Scheme -` 540 Crores Reduction in Administrative & Other Expenditure • reduction in Liability in respect of Retired Govt. was on account of reduction in Provision for Pension Optees – `195 Crores Doubtful Debts (`233 Crores) and increase in Depreciation amounting to `186.36 Crores was • reduction in Contribution to Dened Pension mainly on account of additional capitalization of ` Scheme – 181 Crores Assets during FY 2019-20. Employee benet expenses further reduced due to Trafc Handled (2019-20 Vs 2018-19) reduction in Other Staff Cost – `269.74 Crores due to reduction in Actuarial Valuation Liability of Trafc handled at all Indian airports taken Retirement Benets. together during the year 2019-20 saw decrease as compared to previous year in all three areas Operating Expenditure increased during the year namely aircraft movements, passenger and freight mainly on account of increase in R&M expenses handled. The total aircraft movement, passenger ` ` ( 27.63 Crores), Up-keep Expenses ( 23.46 and freight trafc have decreased by -0.7%, -1.1% ` Crores), Electricity ( 10.83 Crores) and -6.5% respectively during the year. ` Reduction in Security Expenditure ( 826.94 Details of trafc handled during the year and Crores) was mainly due to booking of Aviation comparison with previous year are given below:

Particulars 2019-20 2018-19 %age change Aircraft Movements (in numbers) International 431853 452641 -4.6 Domestic 2155201 2153323 0.1 TOTAL 2587054 2605964 -0.7 Passengers (in numbers) International 66543642 69480768 -4.2 Domestic 274507009 275218965 -0.3 TOTAL 341050651 344699733 -1.1 Freight (in MT) International 2003123 2200187 -9.0 Domestic 1325506 1361714 -2.7 TOTAL 3328629 3561901 -6.5

INTERNAL CONTROL SYSTEMS AND THEIR with operating systems, accounting procedures ADEQUACY and the policies at all locations. During the year AAI has an internal control system commensurate under review, Internal Audit Manual was revised with the size, scale and complexity of its and approved by AAI Board keeping in view the operations. The organisation maintains all its current needs of internal control systems.Based on records in SAP system and the workow and the reports of internal audits, the airports approvals are routed through SAP. undertake corrective action in their respective areas and strengthen the controls, signicant audit The Internal Audit Department monitors and observations and corrective actions thereon are evaluates the efcacy and adequacy of internal presented to the audit committee of the Board. control system in the organization, its compliance

39 Annual Report 2019-20

INITIATIVES/ACHIEVEMENTS OF VARIOUS services over continental and oceanic airspace. DIRECTORATES The objective is to have high availability of CNS – OM Directorate CNS/ATM facilities for operational use for safe, secure and cost-effective air navigation services. Directorate of CNS-OM in Airports Authority of Followings have been the major achievement of India, is responsible for Maintenance the CNS-OM Directorate during the FY ended Management of Communication, Navigation, 31st March 2020: - Surveillance, ATM Automation Systems and ancillary systems for providing Air Navigation

1. Performance evaluation in respect of Directorate of CNS-OM: 1.1 Serviceability & Availability Statistics of Air Navigation Facilities from Apr 2019 to Mar 2020:

1.2 For the period from 1st April 2019 to 31st March 2020, Average Serviceability of ANS facilities is 99.81 % and Average Availability is 99.50 %. This serviceability and availability is at par with other leading Air Navigation Service Provider in world. 1.3 For the purpose of Performance Evaluation - Serviceability & Availability of ANS facilities, following CNS/ATM Infrastructure provided across India is taken into consideration:

40 Navigation Surveillance Communication Gagan ATM Automation systems ILS 72 ARSR 02 VHF Tx/Rx 729 INMCC 03 Automation 44 systems CVOR/DVOR 93 ASR 18 HF Tx/Rx 54 INLUS 03 IATS Simulator 5 DME(HP) 95 MSSR 32 AMSS/AMHS 33 INRES 15 DME(LP) 72 ASMGCS 11 DATIS 49 Locator 08 ADS/CPDLC 04 DSCN 71 NDB 45 ADS-B 21 DVR 82 VCCS 47 ASBS 15 RCAG 24 Total 385 Total 88 Total 1104 Total 21 Total 49

2. Performance of Navigation & Surveillance System - ILS (2 Replacements & 3 New Section: installations), 11 VHF Omni Directional Range - 2.1 Commissioning of New/Replacement/ VORs (6 Replacements, 4 New installations and 1 Relocated Navigation and Surveillance Facilities: Trans-installation), 32 Distance Measuring Equipment - DMEs (26 Replacements, 5 New In the given period, various new and replacement installations and 1 Trans-installation), 2 Radars navigation and surveillance facilities were (Replacements) and 1 Non-Directional Beacon - commissioned such as 5 Instrument Landing NDB (Trans-installation). Details are as follows:

NEW FACILITIES New CNS/ATM facilities S. No Station Facility Date of Total/Remarks Commissioning/Inauguration 1 IGIA Central Air Trafc 22-Jun-19 Inaugurated by HMCA Flow Management Complex 2 RCDU In Country Repair Facility 25-Jun-19 Inaugurated by Chairman AAI 3 IGIA Air Trafc 02-Sep-19 Inaugurated by HMCA Services Complex New DVOR/DME facilities S. No. Station Eqpt Date of Commissioning Total 1 VOR/DME 23-May-19 4 2 VOR/DME 03-Jul-19 3 Jharsuguda VOR/DME 05-Aug-19 4 Shirdi VOR/DME 02-Sep-19 New ILS facilities S.No. Station Eqpt. Date of Commissioning Total 1 Bangalore(BIAL) ILS RWY-27L 05-Dec-19 3 2 Bangalore(BIAL) ILS RWY-09R 3 Goa ILS RWY-26 30-Jan-20

41 Annual Report 2019-20

New DME facilities S.No. Station Eqpt. Date of Commissioning Total 1 Pantnagar DME 27-Feb-20 1 NEW FACILITIES AS REPLACEMENTOF EXISTINGFACILITIES New DVOR/DME facilities as replacement S.No. Station Eqpt Date of Commissioning Total 1 Agartala VOR/DME 12-Sep-19 6 2 Jabalpur VOR/DME 14-Oct-19 3 Bhubneshwar VOR/DME 07-Nov-19 4 Calicut VOR/DME 02-Jan-20 5 Chillerki (Delhi) VOR/DME 30-Jan-20 6 Sikandarabad VOR/DME 27-Feb-20 New High Power (HP)-DME facilities as replacement S.No. Station Eqpt Date of Commissioning Total 1 Udaipur DME 11-Jun-19 20 2 Aligarh DME 28-Jun-19 3 Jalalabad DME 01-Jul-19 4 Vadodara DME 26-Jul-19 5 DME 02-Aug-19 6 Coimbatore DME 07-Aug-19 7 DME 26-Aug-19 8 Cochin DME-II 31-Aug-19 9 Agartala DME 12-Sep-19 10 Raipur DME 18-Sep-19 11 Jabalpur DME 14-Oct-19 12 Bhubneshwar DME 07-Nov-19 13 Bhopal DME 29-Nov-19 14 (LKA) DME 19-Dec-19 15 Calicut DME 02-Jan-20 16 Chillarki DME 30-Jan-20 17 Bikaner DME 12-Feb-20 18 Pantnagar DME 27-Feb-20 19 Sikandrabad DME 27-Feb-20 20 Agatti DME 10-Mar-20 New ILS facilities as replacement S.No. Station Eqpt Date of Commissioning Total 1 Ahmedabad ILS RWY-23 24-Jun-19 2 2 Mangalore ILS RWY-24 28-Jun-19 New RADAR facilities as replacement S.No. Station Eqpt Date of Commissioning Total 1 Mumbai RADAR (PSR/MSSR) 12-Oct-19 2 2 Behrampur RADAR (MSSR) 19-Mar-20 TRANSINSTALLED FACILITIES 1 Lilabari VOR/DME 28-Mar-19 2 2 Rajamundhry NDB 25-Apr-19

42 2.2 In-House repairing of ADS-B Sensors: CHENNAI Simulation study for Hostel building of double room with new coordinates In the given period, many ADS-B sensors were CHENNAI Simulation study for KROLL CRANE damaged due to lightning, however, were (04 No ) successfully repaired, in-house without OEM CHANDIGARH Simulation study for multipath effect on support. This has saved a lot of revenue for AAI. ILS RWY 29 2.3 Air Calibration of Navigational Aids: BIAL Simulation study for extension of TAJ hotel building at BIAL Following number of Navigational Aids have been GUWAHATI Simulation study for Regional Executive calibrated from 01 April 2019 to 31 March 2020: Director building wrt ASR/MSSR Sl. No. Facility Numbers BHUBANESWAR Simulation study for NOC of ASMGCS 1 ILS 125(AAI) & 23(IAF) masts installation CHENNAI Simulation study for HF RX masts 2 DVOR/DME 61(AAI) & 11(IAF) IGI, DELHI Simulation study for VVIP hangers at IAF 2.4 Impact Assessment and Siting criteria by CNS station IGI Airport Delhi Simulation tool EMACS: Electromagnetic Airport PATNA Simulation study for Technical Block and Tower Simulation wrt DVOR- Control and Survey (EMACS), a computer existing & proposed modelling tool, is used for simulation studies. The IGI, DELHI Simulation study for proposed 4th modelling functionality (including terrain models, RWY 11 L-29R ILS obstacles, interfering system, ground and BIAL Simulation study for ILS-CAT III RWY airborne nav-aid equipment characteristics etc.) 09L/27R of RWY04 for hotel extension allows an expert EMACS user to model the real COIMBATORE Simulation study for staff quarters wrt propagation phenomena taking place within a DVOR (proposed) complex electromagnetic airport scenario, where signals (VOR, DME, ILS, ATC Radar, GPS systems) 3. Performance of Human Resource interfere with articial or natural obstructions. Management (HRM) Section EMACS section of CNS-OM Directorate has done 3.1 Human resource training: a remarkable job by doing simulation studies for • Total 41 PLI (Prociency Linked) Course & proposed ATC Tower, Technical buildings, 11 Non-PLI courses have been conducted Terminal buildings, Fire Control Centre, Cargo on various CNS/ATM Systems at CATC complexes. AFL Masts, National Flag Masts etc. and RTC’S during the period 01/04/2019 and Siting of ILS, VOR/DME, RADAR etc. Total 27 to 31/03/2020 on various operational simulation studies have been carried out by CNS/ATM systems to meet DGCA/CAR Simulation team from Apr 2019 -Mar 2020. requirement for trained CNS manpower. List of some major Simulation studies carried • Total number of 2513 CNS personnel have out in this period: u n d e r g o n e d e v e l o p m e n t a l a n d AIRPORT/ DETAIL OF STUDY continuance training on various CNS/ATM STATION Systems at CATC and RTC’S during the PATNA Simulation study for new ATC Tower, period 01/04/2019 to 31/03/2020. Technical Block & Terminal Building 3.2 Corporate Social Responsibility: JAIPUR Simulation study for MLAT-SMR or view cutter installation As a Corporate Social Responsibility (CSR), GONDIA Simulation for road barricading wrt industrial/summer training, has been Localizer imparted to 345 Graduate engineering COIMBATORE Simulation for Staff Quarters wrt DVOR students from Electronics and Allied & LLZ-23 engineering branches from various KOLKATA Simulation study for parked A/C prestigious Institutes/Colleges at various wrt Glide Path Regional Training Centres, CATC and other airports.

43 Annual Report 2019-20

3.3 Preparation of Standard Courses: Amritsar, Agartala, Cochin, Trichy, As per ICAO Program under DOC 9868 Ahmedabad, Nagpur, Guwahati, & DOC 10057, a total of 30 CNS Coimbatore, Mangalore, Varanasi, Competency Based Training Course Calicut and Trivandrum, Patna, Imphal Modules have been developed and a n d B h u b a n e s h w a r h a v e b e e n vetted. completed. 3.4 OJTI Empanelment: 4.3 Software Support Contracts: 250 CNS OJTI (On Job Training Highly critical Automation systems at Instructors) have been empaneled to Mumbai, Chennai and Kolkata have c o m p l y D G C A’ s C i v i l A v i a t i o n been covered under the maintenance Requirements for on job checks of CNS support contract with OEMs. executives at eld stations. 4.4 Hardware Support Contracts: 3.5 Review of Policies: Automation System at Mumbai have been In order to keep pace with the covered under hardware maintenance technological advancement and comply support contract with OEM. w i t h t h e I C AO m e t h o d o l o g y i n 4.5 Remote Situational Monitoring at Goa: accordance with Doc 9868 and Doc AAI in active collaboration with INS, 10057, the Rating, Training and Transfer Hansa a unit of at Goa has Policies for Air Trafc Safety Electronics taken up the work for enhancing the Air Personnel (ATSEP) have been reviewed in situational awareness at Goa by the year 2019. The revised Transfer Policy providing ATC Automation display feed for ATSEP has been published vide from its Mumbai Centre to Goa ATC. AAI Corporate HRM Circular 68/2019 on has integrated Automatic dependent 27th December 2019. surveillance–broadcast (ADS-B) and 4. Performance of Automation Section: Indian Navy Radar to enhance the 4.1 Augmentation of Tower Automation coverage. The remote situational System: monitoring at Goa has been installed and is under nal testing. AAI has awarded the work for up- gradation of Tower Automation System at 4.6 Performance Based Communication 09 Airports for creation of: and Surveillance (PBCS): I) Lower area control centres (LACC) at A A I h a s a w a r d e d c o n t r a c t f o r Lucknow, Jaipur, Amritsar, Agartala, enhancement of Automation system at Patna, Bhubaneswar and Cochin. Chennai for performance based communication and surveillance (PBCS) II) Approach control centres at Trichy and capability. This will enhance the ight Imphal. handling capacity specially in oceanic The work at Lucknow, Jaipur, Amritsar, airspace. Agartala, Cochin, Trichy, Patna, Imphal 4.7 Upgradation of Automation and and Bhubaneshwar has been completed. ASMGCS: 4.2 Augmentation of Tower Automation Contract has been awarded to M/s System: Leonardo for up gradation of Automation A A I h a s a w a r d e d t h e w o r k f o r and Advanced Surface Movement upgradation of Voice Recorder and play Guidance and Control System (ASMGCS) back Systems (Part of Automation system) and Software maintenance contract for at 17 Airports. Works at Lucknow, Jaipur,

44 Automation system at Hyderabad ight/helicopter, NOTAM Brieng, Route international Airport and Bangalore Brieng and MET information etc. international Airport. Work is in progress. 5.2 IP AMSS: 4.8 Critical Information Infrastructure (CII): I n-house developed IP based Automatic In a milestone step, process of Message Switching System (IP-AMSS) has identication of CNS/ATM network been successfully installed at Guwahati, centric systems as Critical Information A h m e d a b a d , N a g p u r, Lu c k n o w, Infrastructure (CII) was initiated in 2019 Mangalore, Trivandrum, Cochin and in coordination with NCIIPC for Patna. The IP AMSS system at these strengthening Cyber security in airports are working smoothly without CNS/ATM. any problem. 4.9 Enhancement of Chennai Automation 5.3 Telephone Directory: System Software: New AAI Telephone Directory 2020 has In order to include various operationally been prepared and published. This critical system features has been directory was released by the Board enhanced for various features such as members of AAI on 1st January 2020. GRIB-2 Met data, AIDC, Mode-S DAP The directory is user friendly and contains parameter etc. for effective information the contact details and email Ids of Board management and efciency of Air Trafc members, Executives and important units Operations. of AAI. It will be very useful for all AAI 5. Performance of Communication Section :- employees across the country. 5.1 Online Flight Plan Management (OFPL) 5.4 Telecom Policy: System: In view of increasingly growth of OFPL Management system has been telecommunication services in the recent successfully installed and working past and to meet the infrastructural needs normal w.e.f 20.12.2019. OFPL system of the stations, the new “Telecom Policy was developed to implement a web 2020 has been prepared and released based platform (Desktop as well as which is effective from 01.04. 2020. The Mobile platform) to facilitate Helicopter & new telecom policy inter alia includes seaplane operations without prior ATC decentralization of some powers, policy clearance in airspace below 5000 feet c h a n g e s a n d i n c o r p o r a t i o n o f and areas other than controlled airspace, amendments /clarication, DTH usage prohibited and restricted ones, guidelines. Temporary Segregated Areas (TSAs) and 5.5 VHF Frequency Commissioning: Temporary Restricted Areas (TRAs) after S u c c e s s f u l C o m m i s s i o n i n g o f obtaining the Air Defence Clearance approximately 28 VHF Frequency was (ADC), whenever required and intimating carried out at various Airport (Delhi, the following information to the nearest Kolkata, Ranchi, Jagdalpur, Tuticorin, ATC: point of origin, Destination, Level, Belagavi, Kalaburagi, Bilaspur, Expected Time of departure (ETD), Vadodara, Bengaluru, , Expected Time of Arrival (ETA) and Surat, Dehradun, Mumbai, Jamshedpur duration of the ight. This OFPL System & Ambikapur) for seamless VHF coverage shall allow the registered user to retrieve, and compliance of the DGCA CARs to view the user led ATS messages and the avoid delay in arrival and departure of F I C / A D C m e s s a g e s o f t h e i r Aircrafts.

45 Annual Report 2019-20

5.6 Satellite Phone: under process. WPC has issued INMARSAT Satellite terminals provided permission to Import a DME-HP test zig of through BSNL have been installed at Intelcan and accordingly, WPC Import Remote and Costal Area Airports for License got issued. One old Import communication in acute exigency in License also got revalidated for the additional to OCC/ACC at 13 places remaining one equipment out of total 29 earlier installed. The Mini-Satellite Phone equipment. operates within the Inmarsat spot beams, ADS-B: Regulatory Clearance/Import which cover all coastal waters and most Licence for Qty-06 no. ADS-B Eqpt. maritime routes: Srinagar, , ASMGCS: Regulatory Clearance/Import Diu, Goa, Jamnagar, Kandla, Porbandar, Licence for ASMGCS at 02 locations and Surat, Agatti, Cochin, Puducherry, additional MLAT units at 03 locations. In Barapani, , Imphal, Lengpui, & addition, Regulatory permission has also Lilabari, RHQ-SR, RHQ-NER & RHW-WR. been obtained for replacement/import of 5.7 Mobile ATC Tower: Qty-04 no. SMR Antennae and Qty-01 Mobile ATC Tower (Integrated with VCS, no. Magnetron. VHF, DVR, WT Sets MET facilities etc.) at Walkie-Talkie: Qty-22 nos. WPC-DLs Jagdalpur and Bilaspur Airport has been have been obtained for WT facility at commissioned for ATS use. various locations. However, the process 5.8 Frequency Management Cell: for obtaining Regulatory Frequency Clearance have been decentralized to VHF: Regulatory Frequency Clearance RHQs/Stations. (WPC-DLs) has been obtained for Qty-17 nos. new VHF spots and approx. Qty. 112 Frequency Coordination: Frequency co- DLs have been revalidated. Whereas ordination in favour of various WPC Import Licences have been obtained Govt/Defence/Pvt agencies have also for Qty-400 nos. VHF TX/RX Eqpt (03 been issued to WPC Wing from time to Lots). time. DVOR: Regulatory Clearance has been Workshop on SACFA/WOL issues: First obtained for Qty-22 nos. DVORs at workshop has been organized on 3rd different locations and WPC-Import June 2019 at CHQ to sensitize Licence has been obtained for Qty-20 RHQs/Stations w.r.t. regulatory issues to nos. DVOR Eqpt (03 Lots). expedite SACFA/WOL process. Second workshop has been organized on 28 ILS: Regulatory Clearance has been J a n u a r y 2 0 2 0 t h r o u g h v i d e o obtained for Qty-18 nos. ILS (LOC & GP) conferencing at CHQ to discuss the facility and WPC-Import Licence for Qty- issues/ hurdles at RHQs/Stations w.r.t. 22 nos. ILS Eqpt. WPC Import License for SACFA/WOL process. 22 ILS equipment was revalidated by WPC for remaining equipment. CNS Manual (Vol-IX): A Handbook on Aeronautical Frequency Spectrum DME: Regulatory Clearance has been Management i.e. CNS Manual (Vol-IX) obtained for Qty-14 nos. DME-HP & Qty- has also been released in October'2019 10 nos. DME-LP facility whereas WPC- by Member (ANS). Import Licence for Qty-12 nos. DME-HP & Qty-05 no. DME-LP Eqpt. Letter of Intent 5.9 Pan India Mobile Policy (PIMS): (LoI) issued from WPC for DME-HP facility Pan India Mobile Service (PIMS) Policy has for Airport issuance of D/L is been implemented successfully through M/s Vodafone India Limited to provide

46 mobile services in AAI ofces and 3. Operationalization of Delhi Tower and Airports. All AAI ofcials have also been ATS Block: For expansion of IGI Airport advised to port their existing mobile including construction of Terminal 4, the number or get new mobile connection existing ATS Complex cum Control Tower from PIMS provider especially ofcials is relocated to a more centric location, taking reimbursement of mobile bill from southwest of the existing Tower and are ofce. now fully operational from August 2019. 5.10 Cell on Wheels (CoW): The new Tower of 102 meters high has To improve mobile signals in CHQ, M/s clear line of sight of all movement area of Indus Towers Limited has been permitted aireld for safety of operations and after to install Cell-On-Wheels (CoW) near C- expansion of airport the new ATS complex Block, Bhawan wherein all will cater to the additional requirement mobile service providers can join and for multiple /APRON operations. install necessary equipment and improve AAI has procured & Installed State of the their mobile network. Presently, art ATC Automation system, Voice Vodafone, Airtel and Jio are using the Communication system, AMSS, C-ATFM CoW to provide mobile telephony service etc. in CHQ. 4. Replacement of Standalone MSSR at 6. Futuristic Telecom Infrastructure (FTI) Berhampur, Odissa: AAI has replaced Section: outlived En-route Radar with new state of 6.1 The NOCC/SOCC (Network Operation art En-route Radar in the Month of Control Centre as well as Security November 2019. Operation Control Centre) build out has This facility provides Surveillance based been completed and made operational. En-route services for Air Trafc Control. It The system is ready for monitoring of the will help in increasing the trafc handling services covered under FTI project. capacity of the trafc corridor. With Mode 6.2 Total 23 AAI ANS services have been S level-II MSSR, it is possible to directly migrated on to the FTI network as on 31 communicate with the Aircraft to get March 2020. specic information like Mode-S address. Speed, heading etc. CNS – P 5. Implementation of Advanced Surface 1. An amount of INR 362.09 Cr awarded in M o v e m e n t G u i d a n c e & C o n t r o l the Financial Year 2019-20 in following System(A-SMGCS): A new A-SMGCS ANS projects equipment dispatched to Cochin & • Supply of DATIS (09 Nos). Bhubaneswar Airport for installation. • Supply of VHF (585 Nos). This facility provides surveillance on the • Supply of HF Rx. runway, taxiways, stands, and on • SITC of VCCS (47 Nos). approach. It enhances a controller’s ability to manage airport trafc in all • Supply of DME 33 Nos. visibility and weather conditions. • SITC of ASR-MSSR (04 Nos) 6. Implementation of Airport Surveillance • Supply of HF Transceiver Radar (ASR) collocated with Monopulse 2. Total Expenditure incurred INR 380.77 Cr secondary Surveillance Radar at Nagpur, to enhance safety and operational Varanasi, Jaipur & Bangalore (2nd radar) efciency of Air Trafc in the nancial year Airport. SITC work awarded (Award 2019-20 value: ` 71.35 Cr) to M/s Czech Republic.

47 Annual Report 2019-20

This facility provides Surveillance based long range Air to ground communication. approach services for Air Trafc Control. Work has been awarded to M/s R&S It will help in increasing the trafc Germany for SITC of HF Rx (48 Nos). handling capacity of the trafc corridor. 12. SITC of Voice Control & Communication 7. Supply of Instrument landing system (ILS): System:- VCCS controls and connects It is a ground based electronic equipment together various voice communication that provide precision guidance to an systems used for Air Trafc Management aircraft approaching & landing. Total 14 such as VHF Tx/RX, telephone, and other Nos of ILS equipment received at CRSD ATC communications. It also provides an out of 20 Nos of ILS. internetworked chain & backbone for This will ensure timely operations in numerous interfaces acting as an reduced visibility conditions due to fog, exchange for all the interfaces put rain and snow Uninterrupted landing and together. Total 20 Nos of VCCS system take-off at the airports thereby reducing received at site out of 48 Nos. the delays and fuel burn by the aircraft 13. Future initiatives: both due to delay or diversion to the other a. Remote ATC Tower: Remote and Virtual airports. Further, diversion of aircraft due Tower (RVT) is a new concept where the air to low visibility will be reduced. trafc service at an airport is performed at 8. Supply of Doppler Very High Frequency remote location then in the local control Omni Range (DVOR): - DVOR is a tower. standard International Civil Aviation Benets: - Remote Tower Solutions Organisation (ICAO) ground based radio provide a smarter approach to air trafc navigational aid that provides bearing control by digitizing and integrating information to aircraft to dene air trafc airport functions and provides the data. control routes for en-route, terminal and AAI is planning to set-up Remote ATC i n s t r u m e n t a p p r o a c h / d e p a r t u r e Tower at to control the procedures. Total 13 Nos of DVOR Air trafc of nearby Airports equipment received at CRSD out of 27 Nos of DVOR. b. SITC of ASR-MSSR (06 Nos): - AAI is planning to implement new ASR-MSSR 9. Supply of Distance Measuring Equipment: (qty 03 Nis) at Navi Mumbai, Goa (qty 01) - Distance measuring equipment (DME) is Airport & also planning to replace out- a radio navigation technology that lived ASR-MSSR at Bangalore & measures the slant range (distance) Hyderabad Airport. between an aircraft and a ground station. Work has been awarded to M/s Mopiens, c. SITC of ATC Automation system with A- Korea for supply of DME(33 Nos) . SMGCS: AAI is planning to implement new ATC Automation system with A- 10. Supply of Very High Frequency Transmitter SMGCS at Navi mumbai & Mopa(Goa) & Receiver:- Very High Frequency Airport & also planning to replace out- Transmitter Receiver use for Air to ground lived ATC Automation system with communication between Pilot & Air trafc ASMGCS at Hyderabad, Bangalore & Controller. Total 200 Nos of VHF Tx/RX Mumbai airport. equipment received at CRDS out of 585 Nos & additional 200 Nos dispatched d. Supply of VHF Tx/Rx 598 Nos:- AAI is from factory premises. planning to procure total 598 Nos of VHF Tx/RX . 11. SITC of High Frequency Receiver:- High Frequency Transmitter Receiver use for e. Supply of NDB: - AAI is planning to

48 procure 24 Nos of NDB. 3. Central Maintenance Cell organised the f. SITC of FSTD at CATC, NIATAM Gondia & two days SMU Performance Review Meet Hyd (estimated cost: ` 49.21 Cr): AAI has at Hyderabad on 27 & 28 February 2020. oated a tender on CPP portal for SITC of In this meet, in-charges of all SMUs FSTD at CATC Paryagaraj, NIATAM delivered presentation on their Gondia & Hyderabad. achievements, challenges fullled, Research & Development work, Cost g. SITC OF PROCEDURAL APPROACH AND saving analysis & bottlenecks observed by AREA CONTROL SIMULATOR FOR CATC SMUs to achieve their goals. PRAYAGRAJ HTC HYDERABAD AND NIATAM GONDIA (Estimated cost: Establishment of new SMUs for ADS-B, New 113.56 Cr): AAI has oated a tender on VCCS, ASMGCS, INTELCAN DME, New VHF & CPP portal for SITC of procedural GBAS are proposed & will be established in future. approach and area control simulator for To enrich currently existing SMUs with CATC PRAYAGRAJ HTC HYDERABAD and sophisticated tools & test equipment so that NIATAM GONDIA. exposure to new R&D activities may be bloom up as per ICAO standards. Central Maintenance Cell (CMC) Civil Aviation Training College (CATC) CMC is Administrative body of all SMUs. It implements policies for SMUs & provides technical The Civil Aviation Training College (CATC) support to all SMUs like identication & Allahabad, Prayagraj is a modernized training procurement of tools & test equipments. It also establishment in terms of infrastructure, training projects manpower & training requirement for facilities, laboratories and simulators, embarking SMUs. The following are the achievements of the on the global ICAO TRAINAIR Plus Programme and Cell during FY 2019-20: - has accreditation with ISO-9001-2015. CATC is the residential college with well- furnished hostels 1. Establishment of new unit ELDIS RADAR having wi- facility, adjoining cafeteria, recreation SMU for inhouse repair and maintenance and sports facilities, swimming pool, club, of modules/cards of ELDIS RADAR (PSR auditorium, library, hospital and bank. The college &MSSR) installed all across the Indian has fully air-conditioned well planned classrooms Airports. equipped with modern audio visual aids, overhead 2. Specialized Maintenance Unit (SMU) was projectors, TV, VCR, multimedia projection etc. inaugurated on 24 June 2019, for In- Some of the milestones achieved by CATC in the country Repair Facility of ELDIS Radar. year 2019-20 are as follows: This in-house repair & maintenance facility helps in minimizing downtime of • CATC got Air Trafc Services Training ELDIS Radars and a fast turnaround-time Organization (ATSTO) approval for (TAT) of faulty modules. Online & on-site conducting training courses by DGCA on technical support also being provided to 10.05.2019. It also got approval to conduct all ELDIS Radar sites. This SMU provides examination to test the knowledge specied in component level repair support & service Schedule III of Aircraft Rules 1937 as per to 14 eld stations having ELDIS Radar at examination procedure manual and present. The approximate cost of this appointment of invigilators on 10.05.2019. project was INR 30 Crores. Notional • Approval of ASOTC by DGCA, India: First time Revenue Earned during the year is INR in the history of CNS, ASOTC status has been 19.141 Crores. At present, total 27 conferred to CATC, Prayagraj, and AMS HFRT SMU’s are functional to provide course has been approved by the DGCA, component level repair support and India. service to CNS facilities • Implementation of CBTA in AAI

49 Annual Report 2019-20

CNS O&M directorate and CNS training undertake a sustained study to analyse the department at CATC were able to accomplish issues involved in implementation of CORSIA the conduction of its training as per ICAO’s from India’s perspective and assist the MoCA CBTA methodology through continuous efforts in managing the schemes as well a design and i n c o u r s e d e v e l o p m e n t a n d i n i t s appropriate response to the challenges implementation in Initial training as well as emerging in the international civil aviation Unit Training (System Specic) of ATSEPs. AAI sector. has become one of the Pioneers in the world in d. Conducted TAAM Study to analyse the impact full-edged implementation of CBTA on Delhi Airport capacity due to proposed IAF methodology of ICAO for standardization of hangar north of Runway 27. training. II. Air Trafc Flow Management [ATFM] • Installation and Operationalization of a. ATFM Web Portal is operational from 12th Dec. Integrated Simulator System at CATC 2019 and accessible through URL : Commissioning of Integrated Surveillance & https://www.atfmaai.aero/portal for Aerodrome Visual Simulator from 04.11.2019, situational awareness of all stakeholder’s. which resulted in capacity enhancement of ATFM Daily Plan(ADP), Notice of planned / surveillance simulator in ATM training. With its current ATFM measure, Execution Report of operation, the training capacity for surveillance CDM & revised CTOTs, Daily / Monthly ATFM training courses at CATC has doubled. The new Post Operations Analysis and Annual ATFM integrated simulation system also includes the Operations reports are also disseminated three dimensional state-of-the-art Aerodrome through the portal. Study material regarding visual Simulator (AVS) having high resolution ATFM is also available in the resource section graphic technology to create virtual atmosphere of the portal. for training aerodrome controllers. The AVS offers b. ICAO workshop on “Airport Collaboration panoramic view from the air trafc control tower to decision making integration with Air Trafc the ground ranging from congurable 180 degree Flow Management” was organized from 2nd and 360 degree depending on users’ needs. to 4th December’19 by ATFM Directorate. The Air Trafc Flow Management (ATFM) Directorate main objective of the workshop was to improve I. Integrated Planning Group [IPG] understanding by all stakeholders of the a. Airports Authority of India also signed a MOU benets of A-CDM integration with ATFM and with M/s Boeing for a 10 year modernisation how this combined implementation could be Roadmap of CNS/ ATM in India under USTDA achieved. The workshop also offered on 04th June 2019. opportunity to share the implementation e x p e r i e n c e o f S t a t e s a n d d i s c u s s b. The new Delhi ATS Automation was dedicated implementation related issues. to nation by Minister of State(I/C) on 02 Sept 2019. c. Engaged M/s TERI on MoCA Directive to

50 (Participants of ICAO workshop) c. The C-ATFM system and ACDM system • Safe Integration of UAS into National integration is successfully achieved for 4 Airspace System major Airports i.e. Delhi, Mumbai, • Improvising threshold usage at CSMIA, Kolkata and Chennai. The integration Mumbai facilitates better resource utilization at the A i r p o r t s a n d u p d a t e d d e m a n d • Reliability Analysis Tool Kit for CNS/ATM information in ATFM System for improved Systems decision-making process to support • Study of the impact of introduction of Navi economical and efcient operations. Mumbai Airport ops on the Mumbai d. Inauguration of new ATFM Building at Airport ops, challenges and possibilities of Vasant Kunj on 22 June 2019. seamless merger of both Airport and Airspace eco-systems to achieve optimum e. Handling of ight rerouting in Indian capacity. Airspace due to Pakistan Airspace closure. • 4-D Trajectory based ATFM System – MoU III. CARO project with NIT Trichy a. Implementation of ACDM at Jaipur/ • Study of grounding scheme and ambient Ahmedabad/Guwahati and Trivandrum electromagnetic level for HF site of AAI, Airport (under MOU Projects 2019-20) Chennai to improve HF performance - have been completed within MOU MoU project with SAMEER specied time. c. SITC of exclusive Data center for R&D in b. Apex committee meeting was held on 31st progress at a cost of `2.21 crores. This will Dec2019 and the following projects were enable R&D to maintain repository of approved historical operational data and can be

51 Annual Report 2019-20

utilised for various Data analytics Aeronautical Study, 8 after Shielding Benet d. Bhoomi Pujan was conducted for the Study. CARO Complex on 12th March 2020- 3. Airport Operator Projects: In addition, 25 Construction work in progress now. projects of various Airport Operators were e. AAI ACDM system is a software product settled after CNS Simulation Study. entirely developed in-house by AAI 4. Ease of Doing Business: - Entire Appeal ofcials and qualies as a application process hosted online on NOCAS, initiative. This system allows aerodromes, with integrated Payment Gateway. aircraft operators, air trafc controllers, 5. The online NOC process has been integrated ground handling agents, pilots and air with the all the municipal corporations of trafc ow managers to exchange Delhi, DDA and other Urban Local Bodies operational information and work across 10 states, wherein the applicant can together to efciently manage operations apply through Common Application Form at aerodromes. (CAF) available at the respective municipal f. AAI ACDM system has received Aviation corporation websites. Integration with Urban Innovation Award on 13.03.2020 in Local Bodies in another 8 States is in progress. Wings India 2020. Award received by Sh J 6. 79 Colour Coded Zoning Maps(CCZM) were P Alex ED(ATFM) and ACDM Team published and provided to the urban local members from Sh K. T. Rama Rao, bodies for issuance of height clearance below Minister of IT of Telangana in the presence the CCZM approved height, without the need of Sh Arvind Singh, Chairman AAI & Smt. for an NOC from AAI. Usha Padhee JS(MOCA). 7. NOC Application System (NOCAS) Ver 2.0: New revamped NOCAS website launched, enabling usage on mobile devices also. 8. NOCAS data migrated from old infrastructure to new Cloud-based infrastructure. 9. Staging server created to test data prior to uploading to Live Production server. 10. NOCAS multi-language capability launched for static pages. 11. SSL implementation to enhance the security of NOCAS. 12. Master Plan of 6 Airports updated, Aerodrome Department of Aerodrome Safeguarding data for 39 Airports updated, 19 new Airports (DoAS) included, Runway prole of 40 airports included, OLS surface created either from 1. Initial NOC Applications: Of the 71,253 displaced/proposed runway for 41 Airports. online initial NOC applications received, 23,186 were Auto settled by the NOCAS 13. C a p a c i t y B u i l d i n g f o r A e r o d r o m e System, including 2,149 building cases. A Safeguarding at AAI Airports: State-of-the-art total of 45,496 NOCs were issued, including Survey equipment including 1 set Electronic 7,758 buildings. A total of 2,571 cases were Total Station and 02 Set DGPS have been rejected, including 348 building cases. provided at 20 Airports across India to serve the Parent airport and the nearby airports. 2. Appeal NOC Applications: Of the 101 online Also, 19 Surveyor cum GIS analysts have been NOC Appeals, 66 were settled after posted at these Airports.

52 14. Policy and Training: A new series of circulars for an APANPIRG SAR deciency. titled “Aerodrome Safeguarding Circulars – In 2020 Only ten States/Administrations had ADSAC” were launched to lend clarity to Policy reported implementation of 90% or above at and Procedures. A total of 7 circulars are in APSAR/WG/5. India has achieved 90% bench force and more are on the anvil. A total of 9 mark by scoring 37 out of 41 element SAR workshops on “Aerodrome Safeguarding” compliance, as per APSARWG5 internal were organized, across all the 5 regions, assesment. wherein 280 Ofcers from AAI, Private Airport Operators, Urban Local Bodies and District States that achieved score of 90% and above SAR Authorities concerned have been sensitized / compliance bencmark are Australia, Hong Kong trained. China, India, Indonesia, , NZ, ROK, Singapore, USA and Viet Nam. India SAR Plan Implementation Status The results of APSARWG5 will be presented in the As per electronics Air Navigation plan ( eANP) ATM/SG/8 and APANPIRG/3 meetings scheduled under the regional policy which stated that `below to be held later this year. 90% implementation status ‘would be considered

Asia/Pacic SAR Plan Implementation Status (as at June 2020, average 54%)

Planning Directorate under Para-4 to provide regional air Information on laying of foundation stone, connectivity by making it affordable. inauguration of new airports, building or facilities 2. Ministry of Civil Aviation launched the along with status on region-wise capital schemes Regional Air Connectivity Scheme on completed, in progress, under planning etc. is 21.10.2016 and Airports Authority of India provided in detail in Annexure – 3. designated as Implementing Agency. RCS Directorate Simultaneously, process of 1st round commenced. 1. Government of India approved National Civil Aviation Policy (NCAP)-2016 on 15.06.2016, 3. Now 4th round biddings have been wherein Regional Connectivity envisaged completed. Ministry of Civil Aviation approved

53 Annual Report 2019-20

78 RCS routes to 8 Selected Airline Operators Airports’, from 12th -14th Nov, 2019 at Indian covering North East States & Aviation Academy, New Delhi Islands and the places where RCS airport are AAI Business Development Team, commemorated ready or likely to be operationalized such as the 150th Year of Mahatma Gandhi. B a r e i l l y, H i s s a r, B i l a s p u r, A l i g a r h , Moradabad, Chitrakoot & Shravasti. Team Business Development presented the relevance of philosophy of Mahatma Gandhi in 4. In the last FY 2019-20, status of RCS ights the present-day Human Resource Management and operationalization of RCS airports is given below: Round table conference on Regional co- operation: Neighborhood rst: August 2019, S. No. Particular Status New Delhi 1. RCS airports operationalized 9 (6 Airports & 3 Heliports) 2. RCS ights commenced 124 RCS routes 3. Passengers own in RCS ights 31 Lakhs 4. Amount incurred for up-gradation INR 705 Crores of RCS airports Business Development Unit (BDU) Business Development Unit at Airports Authority of India which has a mandate to identify important new business opportunities in Land Monetization, City-Side Planning & Development, Airport Development Consultancies, Airspace Design consultancy, Nav-Aid consultancy & ight The meeting was organized by AAI & MoCA in calibration, Innovative Projects to enhance the collaboration with CII. The event was graced by efciency of the existing processes, sharing the Shri Hardeep Singh Puri, Hon’ble Minister of Civil expertise and in-house cutting-edge technology Aviation. The high-level meeting highlighted the systems like SkyRev360, SkyBooks360 etc. close cooperation for mutual growth among the Maximizing & enhancing the non-aeronautical neighbouring countries. The challenges in terms of revenues for AAI is the utmost priorities for aviation infrastructure, connectivity and capacity Business Development. building and the possible mitigation and agendas The brief of achievements during the FY 2019-20 of cooperation were discussed. are as follows: - High level Meeting to discuss India’s candidature to the Council of ICAO

ACI-APAC conference hosted by Airports Authority of India on ‘HR Readiness for Future To introduce the India’s candidature to the council

54 of ICAO, a high-level meeting was organized by procurement. The maiden pilot project was MEA, MoCA and AAI, which was attended by commissioned at Chennai Airport, which resulted Ambassadors/High Commissioners from various in considerable reduction in the carbon footprint ICAO member countries on 29th August 2019, in as well as expenditure for power procurement. the presence of Hon’ble Minister of Civil Aviation Multi-Level Car Parking Project, Chennai Sh. Hardeep Singh Puri. As part of city-side development of Airports, AAI Visit of Business Delegation from Canada has ventured into the development of MLCP at Chennai Airport, which is rst such car parking at any of the AAI Airports. The project is being undertaken on DBOM mode. Development of International Aviation Hub at Hisar, Haryana

A high-level Canadian delegation led by H.E. Nadir Patel, Ambassador of Canada in India, visited Airports Authority of India CHQ, along with M r. A n d r e w S m i t h , H o n’ b l e M i n i s t e r (Commercial), Mr Viney Gupta, Trade Commissioner, High Commission of Canada and Senior ofcials from Bennett Jones LLP and with International Aviation Hub at Hisar projected by the team of senior ofcials of AAI led by Mr. Anil . One of its kind Gupta, Executive Director (LM&BD) to discuss International Airport Hub projected by cooperation in eld of Aviation Infrastructure, Government of Haryana is being supported by Airport Development of Indian Airports AAI. The detailed projected report has already being completed and AAI is eying project Airport Development at Telangana State management consultancy business for maiden AAI is supporting aviation infrastructure International Airport in the state of Haryana. development in the state of Telangana. During Phase I of development AAI is preparing Detailed Development of Aviation Infrastructure for Project Report of Six proposed Airports (Green Field/ Brown eld) from Govt. of Telangana Indian Coast Guards has entrusted AAI for Airport Development at Haryana State developing hangers and associated Aviation Under the MoU to support civil aviation infrastructure at various Coast Guard Airelds infrastructure development at Haryana, AAI has across India. conducted Techno-Economical feasibility of Pinjaur, Narnaul and Bhiwani sites in Haryana SkyRev360 System Commissioned at Lao PDR Power Procurement Innovation Project SkyRev360 system Commissioned at Lao Air Navigation Services, Lao PDR in the month of June AAI has reiterated its commitment to a greener 2019. With this the rst international project of future by reducing the carbon foot prints of the SkyRev360 project has been implemented. Airports, through open access solar power

55 Annual Report 2019-20

triennial Assembly of ICAO September 2019. SkyFit is a unique concept launched by AAI to address the occupational stress related issues of Aviation personel. SkyFit Session at Vientiane, Lao PDR AAI & Embassy of India at Lao PDR organized SkyFit session on the occasion of 5th international Day of Yoga at Lao PDR. The International day of yoga was celebrated at three major cities of Lao PDR. The celebrations were attended by more than 1200+ people of different nationalities.

SkyFit Session was organized at ACI-APAC HRM Conference at New Delhi

Cargo (AAICLAS) 1. AAI Cargo Logistics & Allied Services SkyFit Session was organized which is a Company Limited (AAICLAS) - a wholly owned breakthrough product for addressing job related subsidiary of AAI, is currently present at 29 stress in ACI APAC HRM conference on airports namely, Ahmedabad, Amritsar, 14.11.2019 at Indian Aviation Academy, New A u r a n g a b a d , B a g d o g r a , B h o p a l , Delhi. B h u b a n e s h w a r, C a l i c u t , C h e n n a i , Coimbatore, Goa, Guwahati, Hubballi, Global launch of E-Book on SkyFit Indore, Jaipur, Kolkata, Lucknow, Madurai, Mangalore, Patna, Port Blair, Pune, Raipur, Ranchi, Srinagar, Surat, Trichy, Trivandrum, Varanasi, ; handling cargo at 20 International Terminals, 25 Domestic Terminals, 1 Courier terminal and 17 Cold Storage facilities. 2. During the FY 2019-20 the total air cargo handled by AAICLAS was 9,08,562 MT which included International, Domestic & Courier cargo. 3. The Market Share of AAICLAS in air cargo handling in India, was 27.30%. Shri Hardeep Singh Puri, Hon’ble Minister of Civil Aviation launched the E-Book on SkyFit at 40th 4. Facilities & Infrastructure Augmentatio

56 Airport Facility Date at Chennai, Goa, Kolkata and Madurai Cold Storage 31.07.2019 Ahmedabad (domestic) airports in FY Bagdogra CPC facility taken over 12.07.2019 2019-20. from SJDA 7. India’s rst road-air transhipment was done Visakhapatnam Domestic Cargo 01.08.2019 from Dhaka to Europe via Kolkata. (from O&M) Aurangabad International Cargo 30.09.2019 8. Paperless transactions enabled at Chennai and Kolkata air cargo terminals. Leh Domestic Cargo 18.10.2019 Aurangabad Domestic Cargo 30.12.2019 9. AAICLAS Networking Infrastructure and Data (from O&M) Center is established at CHQ. Amritsar Domestic Cargo (Interim) 17.01.2020 10. Awards & Laurels Surat Domestic Cargo 29.01.2020 a. AAICLAS has been awarded “Best Air Bhopal Domestic Cargo 14.02.2020 Cargo Services” in India Cargo Awards Goa International Cargo 23.03.2020 2019. (from O&M, with custodianship) b. A A I C L A S h a s b e e n a w a r d e d “Outstanding Contribution in Skilling for a. export cargo facility has been re- the Air Cargo Industry” in 5th PHD Air a c c o m m o d a t e d i n t h e A A I C L A S Cargo Summit 2019. Integrated Air Cargo Complex in Chennai Operations Directorate airport. 1. AAI has declared 85 Airports “Single-Use b. At Jaipur and Guwahati, Air India Plastic Free Terminals” in a phased manner as domestic cargo operations have been mentioned below: - facilitated through AAICLAS Domestic a. Agartala, Ahmedabad, Amritsar, cargo terminals. Bagdogra, Bhopal, Bhubaneswar, 5. Regulated Agent (RA) Functions C a l i c u t , C h a n d i g a r h , C h e n n a i , a. AAICLAS has received BCAS approval for Coimbatore, Dehradun, Goa, Guwahati, RA registration and security programme Imphal, Indore, Jaipur, Jammu, Kolkata, at Surat and Bhopal commenced Lucknow, Madurai, Mangalore, Patna, operations thereof. Kolkata & Blair, Pune, Raipur, Ranchi, Srinagar, airports have also received clearance in Tiruchirappalli, Tirupati, Trivandrum, their security programmes for RA. U d a i p u r, Va d o d a r a , Va r a n a s i , 6. In-Line Hold Baggage Screening System & Visakhapatnam have been (ILHBSS) Functions declared “Single-Use Plastic Free Airport Terminals” in Phase-I on 25th Feb 2019. AAICLAS has operationalized ILHBSS operations at 23 AAI airports in two phases. In b. Aurangabad, Belgaum, Bhuj, Dibrugarh, the 1st phase the following operations were Dimapur, Gaya, Gorakhpur, Jabalpur, undertaken in FY 2019-20. Jamnagar, , Jorhat, Kangra, Khajuraho, Leh, Prayagraj, Rajahmundry, a. Standalone System Rajkot, Silchar, Surat and Tuticorin have i. AAICLAS has implemented ILHBSS in been declared “Single-Use Plastic Free Standalone baggage screening facility Airport Terminals” in Phase-II on 28th Aug at Calicut, Ahmedabad, Kolkata, and 2019.This proposal was initiated in the Chennai in October 2019. month of May 2019. b. ILHBSS c. Agatti, , Agra, Bhatinda, i. AAICLAS has implemented full-edged Bhavnagar, Bikaner, Diu, Gwalior, Hubli, ILHBSS functions in Passenger terminals Jaisalmer, , Jharsuguda,

57 Annual Report 2019-20

Kadapah, Kandla, Kanpur, Kishangarh, ii. Lucknow 5-15 million passengers per year in Kolhapur, Kullu, Lilabari, , Asia-Pacic Region Mysore, , Pant Nagar, , 3. Best Customer Service by Size Porbandar, Puducherry, Salem, Shillong, i. Chandigarh 2-5 million passengers per year in and Tezpur have been declared Asia-Pacic Region “Single -Use Plastic Free Airport ii. Lucknow 5-15 million passengers per year in Asia-Pacic Region Terminals” on 28th Oct 2019. 4. Best Infrastructure and Facilitation by Size 2. “The assessment & ranking of Airports for i. Chandigarh 2-5 million passengers per year in “Clean & Safe Airport” Award-2019 has Asia-Pacic Region been carried out by Quality Council of India ii. Lucknow 5-15 million passengers per year (QCI) at 34 AAI Airports having annual in Asia-Pacic Region passenger trafc 1 million or more. Following airports have been selected for “Clean and 4. Lost & Found online portal has been Safe Airport award” under three categories. commissioned in June 2019 to ease out the passenger claiming process for Lost & found Rank Airport Property. Category A: Annual Passenger Trafc 5 Million and above 5. Safety – 1 KOLKATA 2 CHENNAI (a) To enhance airside safety and implement best practices at airports, Standard 3 JAIPUR Operating Procedures for Airside Category B: Annual Passenger trafc between 1.5 million and 5 Million Management were formulated and implemented at the airports. 1 MADURAI 2 CHANDIGARH (b) Breath Analyser Test - As per directives of DGCA, Breath Analyser Examination of 3 TRIVANDRUM p e r s o n n e l e n g a g e d i n a i r c r a f t Category C: Annual Passenger trafc between 1 million and1.5 Million maintenance, Air Trafc control services, aerodrome operations, ground handling 1 UDAIPUR services for detecting consumption of 2 VADODARA alcohol has been implemented in 3 VIJAYAWADA December 2019 at 71 AAI airports 3. Based on the results of the survey carried out (including 7 Civil Enclaves). by the Airports Council International (ACI), the 6. Revision of Policies & Guidelines following AAI Airports have bagged awards in a) New Night Parking Allocation Policy was various categories for the year 2019 as implemented in July2019 mentioned below: - b) Amendment to AAI regulation to comply 1. Best Airport by Size and Region with Cape Town Convention for export of Sr. No. Airport Category De-registered aircraft. i. Chandigarh 2-5 million passengers per year in 7. Decommissioning of disused Runway - Asia-Pacic Region DGCA approval for decommissioning of ii. Mangalore disused secondary Runway at Bhubaneshwar iii. Trivandrum airport was obtained on 06.05.2019 and iv. Lucknow 5-15 million passengers per year in Directorate of ATM-NOC informed for Asia-Pacic Region removal it from NOCAS system. 2. Best Environment and Ambience by size i. Chandigarh 2-5 million passengers per year in 8. AAI achieved Airport Carbon Accreditation Asia-Pacic Region "Level-2: Reduction" certicates from ACI

58 (Airports Council International) for reducing requirement of CISF. carbon emissions at 04 AAI Airports - Kolkata, i. Bomb Suit at 39 Airports Bhubaneswar, Varanasi & Trivandrum on 7th ii. Explosive Vapour Detector at 39 Airports January 2020. iii. Various BDDS Equipment at 39 Airports Airport Systems iv. Real Time Viewing System at 57 Airports Directorate of Airport Systems plays a vital role in Stand-alone X-BIS: Work order has been issued Planning, Procurement, installation, & for SITC of 105 Nos. of Dual View HB & RB X-BIS Maintenance of various Security, BDDS (Bomb Machines for various Airports as per latest BCAS Detection & Disposal Squad), surveillance and specications. passenger facilitation systems/equipments all over Explosive Trace Detector (ETD): Completed India for AAI Airports and RCS Airports. supply & installation of 62 Nos. of ETD Machines The following are the major achievements of AS at various Airports, critical for airport security, as Dte. during nancial year 2019-2020: - per latest BCAS specications. Work order has Security Equipment: been issued for SITC of 124 Nos. of ETD Machines under Make in India initiative of Government of Inline X-ray Baggage Screening System: India, to boost local manufacturing. Completed work of rst phase of the Project implementation of Inline Baggage Screening Surveillance System: To meet the surveillance Systems that carry departing passenger’s luggage requirements, work on Replacement/Up deposited at the Check in counters and screened gradation of SCCTV system is in progress. through multi-level In-line X-ray screening systems Passenger Facilitation Systems as per BCAS requirements and specications. TSA FID System: In order to provide better Passenger and Standard -3 compliant latest state of the art Facilitation, started the work on Replacement/up CTX (Computer Tomography X-ray) technology- gradation of Flight Information System at 19 based EDS (Explosive Detection System) installed Airports across India. at 10 Airports namely, Chennai, Kolkata, Ahmedabad, Goa, Jaipur, Lucknow, Srinagar, e-Gates and Dynamic Signage: As a part of Digi Trivandrum, Varanasi and Calicut will help to cut Yatra Completed installation e-Gates and down queues and save time for passengers. Dynamic Signage for arrival and departure Started phase-II of the same project for the immigration counters at all the International installation of Inline XBIS at Bhubaneswar, Indore, Terminal of AAI Airports. Amritsar, Port Blair and Agartala. Trans- Planning Installation of existing EDtS Standard-2 Inline Planned activities which are likely to be taken up machines from Chennai, Kolkata, Ahmedabad for the coming Financial year are Perimeter and Calicut to Vadodara, Vizag, Raipur, Ranchi Intrusion Detection System, Provision of Body and Madurai Airports is in progress. Scanner and Self-service Baggage Drop Systems Automatic Tray Retrieval System: AS Dte. has at 14 airports. Introduced ATRS, a roller-based set-up that will Aerodrome Licensing return luggage trays to the starting point after passengers collect their belongings at Security Aerodrome Licensing Directorate ensured Check, Chennai and Kolkata Airport. The system licensing of International airports, Customs airport would signicantly cut down manual intervention, and other domestic airports owned by AAI where waiting time at security check. Installation of ATRS schedule aircraft operations take place. Most at other Airports – Goa, Calicut & Trivandrum is in challenging task for the Directorate was to license progress. RCS airports operated and managed by AAI. AAI also provides hand holding to State Government BDDS Systems: Completed the supply and and some private airports to obtain License for Installation of following BBDS Equipment at their airports. various AAI Airports across India to meet the

59 Annual Report 2019-20

Following are the achievements of this directorate Night Landing Facility at Barapani Airport during FY 2019-20: - (Shillong) New Licence for It is a challenge to have night landing facility at T h e Ka r n a t a k a G o v e r n m e n t s i g n e d a airports in northeastern States of India due to Memorandum of Understanding with the Airport presence of hills. Night landing was not permitted Authority of India for development, maintenance at Barapani airport in Shillong, . The and operation of Kalaburagi Airport (Formerly airport was granted IFR licence for all weather day known as ) on August 30, 2019, and the operations on 03.01.2019. AAI along with State airport was formally handed over to AAI by the Government met all the requirements for night Kalaburagi district administration on September landing facility subsequently. As a result, Barapani 13, 2019. AAI has developed the airport under (Shillong) airport was granted IFR All weather UDAN scheme of Ministry of Civil Aviation to Licence by DGCA on 23.05.2019, paving the way provide air connectivity to the parts of India that for night landing facility at the airport. were previously not connected by air. Having second longest runway in the State and 10th longest runway in the country, the airport is spread over 742 acres, build at a cost of `175.57 crores. The airport aims to connect one of the four divisional headquarters of Karnataka with the rest of the country. It will also act as a gateway for tourist destinations including Buddha Vihar, Sharanabasaveswara temple, Khwaja Banda Nawaz dargah and . Kalaburagi Airport was granted New Aerodrome Licence for VFR operations by DGCA on 31.10.2019. Commercial ight operations commenced from Barapani Airport (Shillong) the airport from 22nd November 2019. Two Night Landing Facility at airlines M/s and M/s are The airport located in the marble city of operating daily ights from Bengaluru to Kishangarh 105 kilometers from Jaipur, catered Kalaburagi. not just to Kishangarh, but also to and , the nearby cities. The airport got its Licence from DGCA on 09.10.2017 for only day operations under VFR conditions. There was a demand to obtain night landing permission for the airport. AAI fullled all the regulatory requirements for the same and obtained night landing permission i.e. IFR Licence for All Weather Operations from DGCA with effect from 6th Kalaburagi Airport August 2019

60 Night Landing Facility at 24 RCS Airports Owned/Operated by AAI which Jalgaon Airport is a public airport located off State are Licensed Highway 186, 6 kilometres South-East of the town (Out of 41 Licensed Domestic AAI airports) of Jalgaon, in the of Maharashtra, Barapani, Belgaum, Bhavnagar, Cooch Behar, India. AAI obtained VFR Aerodrome Licence for C u d d a p a h , D i m a p u r, H u b l i , J a l g a o n , Jalgaon Airport on 21.12.2017. Therefore, Jharsuguda, Juhu, Kalaburagi, Kandla, airlines could operate during day time only when Kishangarh, Kolhapur, Kullu, Lilabari, Ludhiana, the visibility is more that 5 kilometres. There was a Mysore, Pakyong, Pantnagar, Pondicherry, demand for operations during night and at Porbandar, Salem, and Shimla. visibility less that 5 kilometres. AAI upgraded the facilities at the airport and obtained IFR Licence for All Weather Operations from DGCA on 31st January 2020. With this the airport could be operated 24 hours including at night time.

India’s and possibly the world’s most beautiful airport -- Pakyong in Aerodrome Licence of the following airports were renewed from April 2019 to March 2020: Jaipur, Lucknow, Varanasi, Dehradun, Khajuraho, Following 64 AAI airports have been licensed in Kishangarh, Porbandar, Surat, Rajkot, Bhavnagar, public use category till April 2020: Kandla, Jabalpur, Jalgaon, Juhu, Kolhapur, 17 International airports Agartala, Lilabari, Imphal, Barapani, Ranchi, Ahmedabad, Amritsar, Bhubaneswar, Calicut, Calicut, Hubli, Kadapa, Salem, Tirupati, Tuticorin, Chennai, Coimbatore, Guwahati, Imphal, Jaipur, Belagavi, Coimbatore, Rajahmundry, Juhu, Tezu, Kolkata, Lucknow, Mangalore, Thiruvanantha- Patna, Trivandrum, Amritsar, Kangra, Pantnagar, puram, Tirupati, Trichy, Varanasi and Vijayawada. Ludhiana, Shimla, Kullu-Manali, Gaya, 6 Custom airportsA urangabad, Gaya, Indore, Mangalore, Vijayawada, Puducherry, Agatti, Madurai, Patna, and Surat Chennai, Kolkata and Ahmedabad (47 Airports) 41 Domestic airports Surprise Surveillance Inspection by AAI Team prior to DGCA Surveillance Inspection: Agartala, Agatti, Barapani, Belgaum, Bhavnagar, Bhopal, Cooch Behar, Cuddapah, Dehradun, Safety audit team at AAI CHQ has been Dibrugarh, Dimapur, Hubli, Hyderabad constituted comprising of ofcers from Aerodrome (Begumpet), Jabalpur, Jalgaon, Jharsuguda, Licensing Directorate, Operations Directorate and Juhu, Kalaburagi, Kandla, Kangra, Khajuraho, Engineering Directorate for carrying out surprise Kishangarh, Kolhapur, Kullu, Lilabari, Ludhiana, surveillance inspections prior to DGCA inspection Mysore, Pakyong, Pantnagar, Pondicherry, to identify and rectify deciencies. This practice Porbandar, Raipur, Rajahmundry, Rajkot, Ranchi, commenced from August 2019. Surprise Salem, Shimla, Tirupati, Tuticorin, Udaipur and surveillance inspection at following sixteen Vadodara. airports were carried since August 2019: Amritsar, Surat, Vijayawada, Udaipur, Trivandrum, Patna,

61 Annual Report 2019-20

Aurangabad, Coimbatore, Kolkata. Guwahati, documents, and logistics help. Fresh Aeronautical Bhopal, Kishangarh, Ranchi, Jaipur, Imphal and Survey was also carried out by AAI during site visit Agartala. of ICAO experts with a very short notice. Meeting Aerodrome Licensing Workshops: with all stakeholders were also conducted by AL Directorate. Copy of the nal report has been To sensitize APDs on various Licensing issues provided to Government. This was including early closure of pending DGCA commitment by MoCA to Uttarakhand Govt., surveillance inspection observations, two-day which was fullled by AAI. workshop covering regulations, documents for new/renewal/IFR to VFR conversion of licenses, Information Technology (IT) Directorate Aerodrome Manual preparation, Change 1. Robust, redundant, high speed MPLS Management, DGCA checklist, ATRs, SMS Manual Network etc. have been conducted at Mumbai, Chennai, The network provides internet/intranet Kolkata and Bengaluru. connectivity at 112 airports with dual connectivity for 57 airports using Software Dened Wide Area Network (SDWAN) technology. This is the latest path breaking technology in WAN landscape and it’s the rst SDWAN implementation for Public Sector in India. Also, this is one of the largest SDWAN implementation (112 sites, all Airports across India) covering entire Indian Geography that includes the islands (Andaman Nicobar & Lakshadweep). 2. Biometric Boarding System (Digiyatra) As part of Digi Yatra Initiative, Airports authority of India has awarded work for Aeronautical Study of Pithoragarh Airport by Implementation of Biometric Boarding System ICAO (BBS) at 04 Airports (Kolkata, Pune, Vijayawada & Varanasi) using the cutting- edge facial recognition technology. This would provide a seamless, paperless and hassle-free experience for passengers across all check points at the airports. It will also improve passenger experience, reduce queue waiting time at the airport by walking through E-Gates swiftly owing to advance security solution, remove redundancies at check points and enhancing resource utilization. 3. Digital Sky Platform The challenging task of Aeronautical Study of The project work has been awarded to the Pithoragarh Airport by International Civil Aviation System Integrator and is under development. Organization for Uttarakhand Government was This project is aimed to develop an IT platform undertaken by Aerodrome Licensing Directorate to enable the Drone ecosystem in India by of AAI, which was successfully completed in enforcement of the DGCA CAR 1.0 digitally. October 2019. During the ICAO team’s visit to Digital Sky platform would provide features to India, AL Directorate provided all relevant bring different agencies on the same platform

62 to enable the registration of Drones, ight CHQ. planning, real time tracking, conict 9. Establishment of Disaster Recovery Centre management and ight log analysis to check for AAI at Hyderabad for deviation from the approved ight plans. Contract has been awarded for design, The Beta version of the application has gone development, operation & maintenance of live. Disaster Recovery Centre for AAI Data Centre. 4. Biometric Access Control System This will ascertain business continuity in case Based on the guidelines and specications of any failure of the Primary Data Centre. issued by BCAS, Airports Authority of India has Tech Directorate initiated the project for Installation of The following are the achievements of Tech Biometric Access Control System at 43 Directorate for F.Y. 2019-20: - Airports. The project envisaged issuance of smart card based Airport Entry Permit (AEP) to (a) Procurement of ACFTs (RIVs) 31 Nos: Airport staffs through which entry to various Technical Directorate has placed purchase Airport zones is granted after biometric (nger order on M/S. NAFFCO, Dubai for 31 print) verication of card holder based on his Nos. ACFTs (RIVs) for airports having Fire Access rights. Safety Category- 8 and above. These The Access Control system (ACS) has been ACFTs (RIVs) are tted with state-of-the-art gone live at 09 Airports (Chennai, Kolkata, accessories DEVS (Drivers Enhanced Safdarjung, Guwahati, Ahmedabad, Vision System), Light Mast with 6000w Vadodara, Jammu, Udaipur, Srinagar) lighting system, Jumping Cushion (25 meters), Aircraft lifting bags etc. It has 5. ERP Enhancements Euro -V compliant engine having Operationalization of new Airport Security acceleration of 0-80 kms within 25 F u n d Tr u s t ( A S F T ) b y p r o v i d i n g a seconds. It has a Water tank capacity- comprehensive invoicing engine and funds 6000 litres, Foam tank Capacity- 800 reconciliation. Integrated the ERP system with litres. The roof mounted turret can IATA for online management of invoicing and discharge an astounding 3,000 litres of funds receivables. water per minute up to a distance of 65 6. AIMS meters using powerful built in pumps. Additional Bumper turret provided, can Rollout of VGF Disbursement module for RCS spray 950 litres per minute up to a Cell. Implemented dashboards for providing distance of 46 meters. All ACFTs have online MIS about ight statistics with a been received and commissioned at dedicated page for RCS Scheme provided to various airports in the nancial year MoCA. 2019-20. 7. AAI Startup initiative (b) Airport Surface Friction Tester: The AAI Startup initiative is focused on driving Purchase order for the procurement of 06 innovation through startup ecosystem in Nos. Airport Surface Friction Testers India. From more than 300 application (ASFTs) have been placed on M/s SARSYS, received, AAI has nally shortlisted 8 ASFT. AB, Sweden for Various Airports in initiatives out which 5 initiatives are been India. All 06 Nos. ASFTs have been accepted for conducting Proof of Concept. c o m m i s s i o n e d i n t h e m o n t h o f 8. Data Centre Certication March/April 2019. This equipment is used The necessary internal and external audits for testing and measuring the Friction were conducted timely for continuation of ISO coefcient value of Runway and thus is an 27001 certication of the AAI Data Centre at essential safety equipment.

63 Annual Report 2019-20

(c) Bomb Detection and Dog Squad consignees. Remaining 32 Nos. ACFTs Vehicles: (2nd Lot) are already delivered and will be Technical Directorate has issued the Commissioned soon. purchase order for the procurement of 29 (g) 32 Nos. Mobile Command Post (MCPs): Nos. Bomb Detection & Disposal Squad Technical Directorate has placed a (BDDS) & Dog Squad vehicles for various purchase order on M/s Trident Structures hyper-sensitive airports of AAI. All 29 Nos. Pvt. Ltd. for supply and Commissioning of BDDS have been commissioned at 32 Nos. Mobile Command Post at various Consignee Airports. These specialized Airports in India. All 32 Nos. MCPs have vehicles have been designed as per been delivered to the consignee Airports. requirement of Bureau of Civil Aviation Security (BCAS) and to meet present (h) 03 Nos. Disabled Aircraft Recovery Kit: security requirement in India. NIT has been published on CPP Portal on (d) I m p o r t e d G r a s s C u t t i n g - c u m - 9th January 2020. Collection Machines: (i) 02 Nos. Rescue Emergency stairs: Technical Directorate has issued the NIT has been published on CPP Portal on purchase order on M/s Vanmac, BV 2nd March 2020. Netherland towards supply, operation Fire Directorate and CAMC for 24 Nos. Mechanized Grass 1. Development of STP (Standard Training cutting-cum-collection Machines for Package) and ICAO TRAINAIR Plus Full various airports of AAI. All machines have Membership for Fire Service Training Center, been received and Commissioned at Kolkata Airports. ICAO’s TRAINAIR Plus Programme is a (e) World Class Passenger Baggage Trolleys network formed of training organizations and (PBTs with Brakes) and Three-Seater operators. This includes, Training divisions of Terminal Chairs: airlines, airports, civil aviation authorities, and Rate Contract for world class 41,700 Nos. maintenance organizations, Private training PBTs and 20,000 Nos. Three-Seater organizations, Specialized aviation-related Chairs through e-Global Tender have safety training centers and Aviation institutions been awarded for 02 years by Technical and industry organizations. Directorate to cater passenger growth and Upon being accepted for a Full Membership, to meet customer satisfaction index bench members receive numerous benets, viz. mark globally. 7000 Nos. PBTs & 5000 Belonging to an internationally recognized Nos. Three-seater Chairs have already network of training centers, access to been delivered and remaining quantity will Member’s website via the TRAINAIR Plus be delivered in next nancial year 2020- website, Recognition from the ICAO as a 21. training organization with utilizing a quality (f) 49 Nos. Aireld Crash Fire Tenders management system, technical assistance (ACFTs/RIVs) for RCS airports: from the ICAO in standardizing training Technical Directorate has placed a based on globally recognized methodologies purchase order on M/S. Rosenbauer for course development, access to International AG, Austria for 49 Nos. Standardized Training Packages (STPs) ACFTs of 6,000 Litres Water Tank Capacity developed by fellow Members, support to meet Fire & Safety requirement of RCS through technical expertise, resources, and airports. The 1st lot of 17 Nos. ACFTs has oversight to increase training capacity, been delivered and commissioned at the Hosting TRAINAIR Plus courses, Continuous

64 access to TRAINAIR Plus’s Electronic Manpower to cater the decit. Every possible Management System (TPEMS), earning effort is being made to provide ACFT and revenue by selling their STPs to fellow other rescue tools and equipment of for TRAINAIR Plus Members, etc. m a i n t a i n i n g A R F F c a t e g o r y a n d Because of hard work and perseverance of commissioning of the airport for aircraft FSTC Kolkata team AAI is able to achieve this operations. feat. 3. Procurement and Supply of 32 Nos. of Mobile command post (MCP) for major AAI Licensed Airports Mobile Command Post (MCP) is a customized, fully equipped robust vehicle outtted with specialized equipment to serve as an on-scene command, coordination and communication center for aviation emergencies. This is a facility being deployed as a mobile command and communication post providing a central point to Incident Commander, heads/ representatives of the cooperating agencies and emergency team for overall coordination Fire Service Training Centre, Kolkata and general direction of the response to an aerodrome emergency. 2. Procurement of 49 new ACFTs for RCS Airports. 32 nos. of such Mobile Command Post have been deployed at major AAI airports across Being implementing agency, Airports India. Authority of India has made procurement of 49 Nos. of ACFTs under RCS fund for deployment at various RCS airports across India. 17 nos. of ACFTs from 1st lot are positioned at Different AAI License Airports and 2nd & 3rd lot of 32 ACFTs is also dispatched by the manufacturer and very soon it will arrive at Indian shore.

Newly Procured Aircraft Crash Fire Tender (ACFTs) for RCS Airports Also, AAI is providing support to RCS Airports in terms of Fire Fighting Equipment and

65 Annual Report 2019-20

Simulator. Hon’ble Minister also had rsthand experience of ACFT Driving Simulator.

Visit of Hon’ble Minister of State, Ministry of Transport & Civil Aviation, Maldives to FTC, Delhi. 5. Disaster Management at AAI Airports Airports Authority of India has always taken proactive approach towards disaster m a n a g e m e n t . F o l l o w i n g D i s a s t e r Management and Recovery Equipment are supplied to 58 nos. of AAI Licensed Airports for effective management of disasters. Newly Procured Mobile Command Post (MCP) Sr Equipment Quantity 4. ARFF Training to Maldives Airport Fire No. Personnel 1 Portable LED Emergency Lighting 58 On the request of Government of Maldives, System With Accessories Ministry of External Affairs has collaborated 2 Human Life Detector 58 with Airports Authority of India to conduct courses in ARFF (Airport Rescue & Fireghting) 3 Victim Location Camera 58 for Maldives ofcials. Accordingly, following 4 Power Driven Saw 58 two courses were conducted at FTC, New Delhi. Vigilance Directorate a. Basic Training Course (20 personnel) Ü The information concerning activities and 06.01.2020 to 30.04.2020. (Extended achievements of vigilance department for the due to COVID-19 pandemic) period starting from 1st April 2019 to 31st March 2020 is as follows: b. Firemanship Course (10 personnel) Ü 03.02.2020 to 06.03.2020 (a) Implementation of ‘Integrity Pact’ in AAI Prior to the commencement of courses, Sh. • Integrity Pact (IP) was implemented in AAI Ahmed Zuhair, Hon Minister of State, Ministry from 01.04.2008. So far 380 numbers of ` of Transport and Civil Aviation, Republic of projects valued at 28,529.78 crores came under the purview of IP. Maldives visited FTC, New Delhi on 14th Nov’2019. Hon’ble Minister also shown keen • A structural meeting of the Independent interest in different re scenarios created in External Monitors with the Chairman, ICMS (Incident Command Management Airports Authority of India was held on System) Simulator and ACFT Driving 10.10.2019 in Board Room, C-Block, , New Delhi.

66 • Another structural meeting of the ofcers of HR Directorate headed by ED Independent External Monitors with the (HR), which has reduced the no. of Major Chairman, Board Members and CVO, Penalty cases from 41 as on 01.04.2019 Airports Authority of India was held on to 32 as on 31.03.2020. 09.01.2020 in Board Room, C-Block, • Two cases have been registered by CBI, Rajiv Gandhi Bhawan, New Delhi. Srinagar against ofcials of AAI for (1) • A Vendor’s meet was held on 10.01.2020 allegedly abusing ofcial position and in at Indian Aviation Academy, New Delhi criminal conspiracy with the owner of M/s with the Board members and CVO, AAI P K Global Trends Pvt. Ltd., Mumbai which was attended by more than 100 causing wrongful gain to the said rm to Vendors from all over India. the tune of `6,33,54,063/- and (2) (b) Vigilance Issues and Activities allegedly abusing ofcial position and in criminal conspiracy with the owner of M/s • Agreed List-2019 prepared after Golden Chariot Hospitality causing thorough review, got approved from wrongful gain to the said rm to the tune Chairman, AAI and nalized with all the of `47,58,945.82 and corresponding 30 CBI Branches. All the ofcers in the wrongful loss to AAI. Agreed List 2019 have been posted to non-sensitive posts. (c) Observance of Vigilance Awareness Week (VAW), 2019 • ODI List 2019 nalized and forwarded to CBI with a copy to CVO, MoCA. Full Vigilance Awareness Week – 2019 was compliance in respect of posting of the observed by Airports Authority of India across ofcers in ODI List 2019 to non-sensitive the country. Dedicated teams were established positions has been received from HR at the Corporate ofce, all the ve Regional Directorate. headquarters and all airports. VAW activities covered 137 Airport across all 29 States and 9 • Agreed List-2020 prepared after Union Territories of India. Gist of VAW thorough review, got approved from activities are as under: Chairman, AAI and nalized with all the 30 CBI Branches. Compliance in respect • Messages of VAW 2019 reached of the posting of the ofcers in Agreed List approximately 61 Lakhs Passengers & 2020 to non-sensitive posts is awaited stakeholders at the Airport & ofces of AAI. from HR Directorate. • Approx. 50,000 persons actively • ODI List 2020 nalized and forwarded to participated in the various VAW activities. CBI with a copy to CVO, MoCA. • 49,272 Persons took Integrity pledge Compliance in respect of the posting of ( N o r m a l + e - p l e d g e ) a n d 2 6 the ofcers in ODI List 2020 to non- organizations took e-Pledge. Nearly sensitive posts is awaited from HR 100% AAI employees have taken the e- Directorate. Pledge. • The process of framing of a Job Rotation • 105 Workshopssensitization programmes Policy in AAI is underway in consultation /seminars were organized at AAI & units with HR Directorate. during VAW-2019. • Sensitive posts were last identied in AAI in • 21999 students from 71 colleges and 170 2008. A process has been initiated to schools across the Country including IIT review and update sensitive posts in AAI, Guwahati actively participated in Integrity keeping in view CVC guidelines. March, Walkathon, Human Chain, Street • A monthly Review Meeting is held to play & other activities. review progress of all the pending • 20 new Integrity Clubs (ICs) established disciplinary and suspension cases with with the existing 20 ICs, AAI is now

67 Annual Report 2019-20

running in 40 ICs covering 27 states & 8 54,673 posts impression from Twitter, 24,737 UTs. posts from Facebook and 54,766 posts from • 21 Special Grievance Redressal camps were Instagram were recorded during VAW-2019. organized at AAI Airports & units. • 39,402 Pamphlets explaining the procedure • AAI ofcial social media account like for lodging complaints & Whistle Blower Facebook, twitter and Instagram were used to Complaints were distributed across 137 spread awareness about VAW wherein Airports. (d) Workshops/ Training Programmes During the period under report, 982 ofcials of AAI have attended 19 workshops organized by CVD, AAI on preventive vigilance as follows:-

Sl. Subject Date Venue For Executives No. /Non-Executives 1. Familiarization program for newly inducted 03rd -04th CHQ, Executives and vigilance ofcers of AAI and 9 ofcials June 2019 New Delhi Non-Executives 2. Vigilance for good governance and effective 17th July Kolkata Executives (ER) administration for APDs and HODs 2019 Airport 3. Preventive Vigilance as a tool for Good Governance 18th – 19th Kolkata Executives (ER) July 2019 Airport 4. Preventive Vigilance as a tool for Good Governance 05th – 06th Jodhpur Executives/ August 2019 Airport Non-Executives 5. Vigilance for Good Governance and effective 28th Chandigarh Executives (NR) Administration for APDs & HoDs August 2019 Airport 6. Preventive Vigilance as a tool for Good Governance 29th – 30th Chandigarh Executives (NR) August 2019 Airport 7. Vigilance for Good Governance and 18th Goa Executives (NR) effective administration for APDs & HoDs September 2019 Airport 8. Preventive Vigilance as a tool for Good Governance 19th – 20th Goa Executives (WR) September 2019 Airport 9. One day workshop on “Vigilance Awareness” 30th RTC, Executives October 2019 RHQ(NR) 10. One day Vigilance Workshop 30th Kolkata Executives October 2019 Airport 11. One day Vigilance Workshop 31st Bagdogra Executives October 2019 Airport 12. One day Workshop on Vigilance Awareness 29th RHQ(WR), Executives October 2019 Mumbai 13. One day Workshop on Vigilance Awareness 31st RHQ(NER), Executives October 2019 Guwhati 14. One day Workshop on Vigilance Awareness 29th RHQ(SR), Executives October 2019 Chennai 15. Preventive Vigilance as a Tool 12th to 13th Shillong Executives/ of Good Governance December 2019 Airport Non-Executives (NER) 16. Vigilance for Good Governance and 17th Cochin All APDs and Effective Administration for APDs & HoDs December 2019 Airport HoDs of RHQ (SR) 17. Preventive Vigilance for Good Governance 18th to 19th Cochin Executives (SR) and Effective Administration December 2019 Airport 18. Preventive Vigilance a Tool for Good Governance 27th to 28th Vizag Executives/ February 2020 Airport Non-Executives (SR) 19. Preventive Vigilance a Tool for Good Governance 5th and 6th Vadodara Executives/ March 2020 Airport Non-Executives (WR)

68 CVD has taken an initiative to undertake a have been issued for bringing clarity and Training Needs Analysis of all vigilance improvement in the system. ofcials. Systematic training plans have been (i) Disciplinary Cases drawn up to enhance their capacity, knowledge and skill. During the year all the During this period 24 major penalty cases and vigilance ofcers have been imparted training 16 minor penalty cases have been nalized as from reputed institutes located in India. A compared to 15 Major penalty cases and 02 special training programme was organized for minor penalty cases nalized during the year the newly inducted Vigilance Ofcers for 2018. The pendency of the disciplinary cases enhancing their investigation skills. It is being as on 31.03.2020 is 52 as compared to 46 as ensured that each Vigilance Ofcer undergoes on 31.03.2019. at least 1-2 training during the year on (j) Vigilance Investigation vigilance initiative apart from the regular Vigilance Investigation has been completed in trainings being imparted through HR 36 cases involving 172 ofcials during the Directorate of AAI. reference period against whom action for (e) CTE Type Inspections Major Penalty (24), Minor Penalty (36) and The efcacy of CTE type inspections enhanced Admin Action (112) recommended. All old by covering 33.62% of the CAPEX planned by backlog cases have been cleared and out of AAI during the year 2019-2020 and 27 cases only 05 CVC cases are pending out of improving geographical spread, identifying which only 01 case is more than 1 year old. new areas namely procurement of IT (k) Planned activities during the period equipment, Airport Systems, Fire Equipment & 01.04.2019 to 31.03.2020 Radar and according high priority to areas that • Finalization of Agreed Lists-2020 in co- can lead to Recovery of dues. Vigilance ordination with CBI. Department has conducted 14 CTE Type • Preparation of ODI List-2020. inspections pertaining to Civil, Electrical & other works etc. at Hyderabad, Delhi (4), • Expedite nalization of pending Jodhpur (2), Chennai (2), Bangalore, investigation cases. Agartala, Ahmedabad, Bagdogra & Jabalpur • Expedite decision by DA on the from April 1st, 2019 to March 31st, 2020. recommendations of CVO. (f) Periodic & Surprise Inspections • Expedite pending disciplinary cases. During the period 40 nos. of Periodic and 11 • Ensure framing of an effective Job nos. of Surprise Inspections have been Rotation Policy. conducted by CVD at various Airports and • Ensure identication of sensitive posts. Regional Headquarters including one inspection of CHIAL, Chandigarh. • Filling up vacancies of Vigilance Ofcers. (g) Recovery due to inspections • Training and skill development of Vigilance Ofcers and staff. A major initiative of the year has been the drive to effect recoveries based on Vigilance • Conduct Periodic and CTE Type Inspections to improve impact. CVD has Inspections. ensured recovery of `6,10,93,501/-. • Follow up of pending recoveries. (h) Issuance of Technical / Administrative Strategic Initiative Unit (SIU) Directorate Instructions 1. Under National Strategy for Airport During this period 08 Technical Instructions Development & Operation across India and and 16 systemic improvements/ Circulars formulation of Model Concession Agreement

69 Annual Report 2019-20

(NS&MCA), draft Greeneld Model undertaking Operation, Management and Concession Structure was shared with the Development of another set of 06 airports viz. various stakeholders for consultation and Bhubaneswar, Varanasi, Indore, Amritsar, stakeholders’ feedback has been compiled Raipur and Trichy Airports through PPP for and submitted to MoCA alongwith draft Model which proposal has been sent to MoCA for Concession agreement for nalization. approval which is awaited. As regards to Browneld Airport, draft 7. MoU signed on 15.01.2020 with Govt. of Browneld Model Concession Structure and Himachal Pradesh (HP) for establishing a draft Concession Agreement have been Greeneld airport at Nagchala, near Mandi submitted to MoCA for consideration and the (H.P.) through a JV Company wherein AAI will same is under nalization. hold 51% stake and remaining 49% will be 2. Approval of Union Cabinet received on hold by Govt. of Himachal Pradesh (HP). 03.07.2019 for leasing of 03 Airports of AAI Commercial Directorate viz. Ahmedabad, Lucknow & Mangaluru to the 1. Non-aero revenue maximisation from highest bidder i.e. M/s. Adani Enterprises Ltd. commercial facilities is a key focus area for AAI for a concession period of 50 years through during last several years. In this direction, at Public Private Partnership (PPP). AAI & M/s the beginning of the nancial year, a new Adani Enterprises Ltd. (SPVs) have executed commercial manual was adopted by AAI, to the Concession Agreement on 14.02.2020 streamline commercial policy framework w.r.t. Ahmedabad, Lucknow and Mangaluru towards fullment of this broad objective. Airports for Operations, Management and Development through Public Private 2. In view of the growing preference for air travel Partnership (PPP) for a period of 50 years. For in the country, changing passenger behaviour rest of 03 airports viz. Jaipur, Guwahati and and elevated expectations from facilities at Trivandrum, the process of obtaining approval airports, it was felt that AAI should also adopt of Cabinet is in advanced stage. new concession models in commercial contracts such as a mix of revenue sharing and 3. JV Agreement was entered by AAI with State xed license fee etc. Hence, Master Govt. of Punjab for Halwara Airport, State Concession model has been adopted at some Govt. of Jharkhand for Dalbhumgarh and of the high potential airports in facilities such Deoghar Airports to ensure main streaming as Food & Beverage, General Retail, Duty Free for the State into the Civil Aviation growth story. Shops etc. In similar vein, perceiving 4. Based on the initiatives of SIU, the Kalaburgi passenger demand for app-based ride Airport was taken-over by AAI and an MoU in facilities, such facilities are being made this regard was signed between Govt. of available at airports now. It is expected that Karnataka & AAI on 24.08.2019. these initiatives shall not only add to the overall 5. Discussions held with Govt. of Karnataka for Non-aero revenue but also improve the development of various airstrips and water passengers experience thereby achievement aerodromes by establishing a Joint Venture of better ASQ ratings for individual airports. Company wherein AAI will hold 51% stake and 3. Plastic waste management is a global concern. remaining 49% will be held by Govt. of It is a global consensus to curb its use to Karnataka. The Joint Venture Agreement and safeguard our environment. Here, it is the Shareholders Agreement in this regard highlighted that AAI has implemented single have been nalized. use plastic ban at its airport in line with the 6. AAI Board in its 190th Board meeting held on national mission. 05.09.2019 recommended proposal for 4. To improve passenger facilitation and experience, AAI started implementation of

70 automated vehicle parking facilities at provided training to around 3736 employees. airports. 2. Thrust on Leadership Development for key 5. Such endeavours shall be ne-tuned and taken positions was continued through training at further based upon experience and reputed management institutes viz IIM achievement of desired outcomes. Bangalore, IIM Indore, IIM Lucknow and MDI, Indian Aviation Academy (IAA) Gurgaon, with which AAI has signed MoUs. A total of 290 Executives were trained during 1. IAA has implemented its web-based ERP 2019-20. system named Namankan and entire process of training is digitized. This software is 3. To facilitate smooth transition of new recruits at synchronized with Mobile App and widely used Executive level, induction-level orientation and appreciated by all participants. programs were conducted, covering 322 such new recruits. Also, discipline-specic 2. IAA has implemented online examination in all programs were conducted for 67 new recruits of its trainings, which gives real time progress of Operations and 177 new recruits of of all trainees and instant result. This Engineering discipline to familiarize them with examination can be attempted on mobile also. their specic roles and responsibilities. 67 new 3. IAA switched over to Online teaching mode recruits of Operations discipline also using Microsoft Teams within 5 days of performed on-the-job training at various announcing countrywide Lockdown, one of airports. the rst Institutions in the country to achieve 4. 43 Airport Directors underwent induction this feat. training to better understand their role in 4. Developed e-course of 3-hour duration on ‘Air overall management and smooth functioning Transportation System’ and more e-course of airports. development in progress. 5. Annual Conference of top AAI Executives was 5. IAA became BCAS certied Aviation Security organized in two batches, that emphasized on Training Institute (ASTI), DGCA certied the business priorities and best practices training center for Dangerous Goods across airports. Regulation (DGR) trainings and Training 6. 584 Executives attended various training center for American Association of Airport programs, workshops, symposiums and Executives (AAAE). meetings held abroad to facilitate learning Recruitment Cell and knowledge sharing on a global platform. 151 offers under 8 disciplines were issued against 7. AAI hosted ACI Asia-Pacic Regional HR 163 vacancies of Group A posts and 410 offers Committee meeting during 12-14 November under 10 disciplines were issued against 412 2019 at New Delhi, which saw participation of vacancies of Group B posts by direct recruitment around 30 HR delegates across 10 countries through Computer Based Test. Further, 431 offers and regions. under 4 disciplines were issued against 542 8. A training agreement was signed between AAI vacancies of Group B posts by Direct Recruitment and IATA for imparting online training on through GATE. 'Overview of the Air Transport System'. 500 Training Cell new joinees were covered through this 1. During FY 2019-20, training efforts were program. further ramped up to cover diverse areas and 9. For further enhancing the scope of training, e- a total of 3517 employees were provided learning was introduced on voluntary basis training through Training Cell set up at CHQ. with nancial incentives for AAI employees, so Besides, Regional Training Centers also that knowledge transfer happens in shorter

71 Annual Report 2019-20

span of time. Also, training has been made a for our growth and aspirations. AAI has been mandatory KPA for Executives from 2020-21 constantly reviewing its HR policies and practices onwards. to keep abreast with the market changes and has 10. In order to promote skill development at embarked upon several initiatives to focus on societal level, AAI provided apprenticeship creating a positive work environment that provides opportunities to 1642 trainees across employees with ample growth and development disciplines and locations. Also, around 150 opportunities as well as ensuring high levels of students underwent internship in various motivation and engagement. Measures for safety disciplines at CHQ. of employee, scientic training, welfare, p e r f o r m a n c e - b a s e d a p p r a i s a l s y s t e m , MATERIAL DEVELOPMENTS IN HUMAN compensation, career growth and social security RESOURCES, INDUSTRIAL RELATIONS FRONT, schemes continued to remain key priority of the INCLUDING NUMBER OF PEOPLE EMPLOYED Company. Human capital has continued to be the key engine

The following are the achievements/major events during FY 2019-20 of HR Directorate (Policy Cell): Details of Achievements / Major events 1. Comprehensive Medical Policy for AAI serving Executives & Non-executives and retired employees has been reviewed. Further, the forms required for submission of option for medical reimbursement, life certicate and reimbursement of medical claim and reimbursement of Dental, Physiotherapy charges has been revised for serving employees as well as superannuated/separated employees. 2. Policy for engagement of consultants in AAI was implemented with the objective to bring order, transparency and uniformity in engagement of consultants in AAI. 3. As a welfare measure, the limits for loans and advances in respect of Non-executives has been revised. 4. Detailed guidelines have been issued to expedite the process for settlement of terminal benets in deceased cases. 5. The tenure of stations including RCS Stations have been dened. 6. As a welfare measure, the management of AAI has introduced the Equal Opportunity Policy for Persons with Disability. 7. For the purpose of selection of Persons with Disabilities for recruitment in AAI, qualifying marks in written/competitive examination has been relaxed. 8. In order to mitigate the difculties faced by the retired employees, as a welfare measure, it has been decided to extend the facility of retiring room at airports and guest house at AAI Residential Colony with charges at par with serving employees, as per availability to all retired employees. 9. In order to further strengthen the process of promoting educational or career development opportunities for students by providing short-term practical exposure, revised guidelines and Standard Operating Procedure has been placed with regard to internship training in AAI. 10. With a view to motivate employees in acquiring important skills, AAI has introduced e-learning programme on voluntary basis for employees of AAI. 11. In order to mitigate the difculties faced by the retired executives and non-executives for availing OPD Medical treatment, modications / additions in the existing medical policy of employees were made.

72 Details of Achievements / Major events 12. The lease entitlement for AAI Executives has been revised. 13. Keeping in view of safety and security of women employees in AAI, provision of Hostel Accommodation to single female employees has been introduced. 14. Keeping in view of the extreme climatic conditions in Leh leading to blocking of roads during winter season, as a welfare measure, AAI has decided to provide Air Travel facility to employees posted at Leh Airport for availing medical treatment including one attendant. 15. AAI has decided to exempt the payment of fees for Direct Recruitment to those apprentices who have successfully completed one year of Apprenticeship Training in AAI. 16. Exit Interview Form has been revised for all employees on Separation, Superannuation, Resignation, and Voluntary Retirement with regard to improvement in the processes, utilization of viable input in the form of course correction and dissemination of good practices. 17. Consequent upon the approval of AAI Board, the order of disbursement of PRP for executives and PLP to Non-executives for the year 2017-18 has been issued. 18. In order to maintain uniformity across the organization and to give more clarity on forwarding of applications for outside vacancies for below Board Level Executives and Non-Executives, comprehensive guidelines have been revised. 19. Consequent upon the approval of AAI Board, the TA / DA Policy for AAI employees, has been revised. 20. Transfer Policy for Air Trafc Controllers (ATCOs) has been implemented from transfer season 2020 due to extensive training requirement. 21. Provision has been made of Home-based treatment for all AAI beneciaries i.e. Existing and Retired AAI ofcials. 22. Transfer Policy for Air Trafc Safety Electronics Personnel (ATSEP) has been introduced, which will be effective from transfer season 2020-21. 23. In order to encourage the employees of AAI to come forward with their suggestions without any hesitation and contribute in achieving the goals of the organization, the guidelines on Employees’ Suggestion Scheme has been reviewed. 24. Visa restrictions related to COVID-19, AAI employees have been strongly advised to avoid non- essential travel abroad. 25. Preventive measures were taken to contain the spread of Novel Corona Virus Disease (COVID-19) with the instructions to all employees to take all precautionary measures. 26. Considering the extra ordinary situation and restriction of ights movements at our airports and the wellbeing of our employees, REDs and APDs were requested to review their requirement of operational manpower to minimum level and the staff was advised to be in readiness at their home only connected through mobile and other electronic means. Based on this, non-operational manpower was also kept at minimum level to support operations. Requirement of contractual manpower was also reviewed and managed. 27. Made voluntary contribution in Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)

73 Annual Report 2019-20

REPRESENTATION OF SC/ST/OBC & PERSONS WITH DISABILIES AS ON 31.03.2020 The manpower strength of Airports Authority of India is as under: Total No. Total No. of % of Total No. of % of ST Total No. of % of of Emp. SC Emp. SC Emp. ST Emp. Emp. OBC Emp. OBC Emp. 17346 3666 21.13 1386 7.99 4080 23.52 Total number of employees and the number of persons with disabilities in AAI as on 31.03.2020 Total No. of Visually Hearing Orthopedically Total No. % of Employees Handicapped Handicapped Handicapped of PWDs PWDs 17346 31 26 185 242 1.39

FACILITIES AVAILABLE FOR PERSONS WITH DISABILITIES AT VARIOUS AAI AIRPORTS: (a) Ramps: Smooth ramps with anti-skid ooring of comfortable gradient are provided at the terminal building entry points and city side area. (b) Doors: Sensor tted doors / manned doors at entrance are provided for easy accessibility. Door openings are wide enough for easy access for wheel chair passengers. (c) Toilets: Specially designed separate toilets for Persons with Disabilities are provided with appropriate signage. (d) Elevators: Elevators with Braille symbols and Auditory Signals have been provided to access all levels of terminal building with care taken of the door opening to allow the biggest size of wheel chair. (e) Aerobridges: To facilitate smooth emplaning and deplaning of physically challenged passengers with wheel chairs, the aerobridges wherever provided have smooth gradient slope and anti-skid ooring. (f) Wheelchairs: Wheelchairs are available with Airport Manager and airlines on demand. (g) Car Parking: Reserved parking spaces with signage have been provided on city side of Departure and Arrival Terminals at various airports. Slots of 3.6 m x 5.0m car park space are specially designated in the car parking area for Persons with Disabilities. (h) Accessible route: 5m to 10m wide kerb is provided in front of terminal building which is directly connected to road with smooth ramp. From kerb side passenger can board the Taxi/Car. For the easy access of wheel chair special cuts and slops are provided in the pavement. At some of the airports, engraving on surface of Zebra crossing is provided for visually disabled persons. (i) Tactile: Tactile are provided at airports for visually impaired passengers from alighting points to entry vestibule at metro airports. STEPS TAKEN TO IMPROVE PUBLIC GRIEVANCE REDRESSAL MACHINERY The Public Grievance Cell is receiving grievances from all walks of lives across India from various sources and on numerous subjects. The Team is committed to provide best resolution of Public / Passengers grievances with shortest possible timeline. In the list of all the subordinate ofces under Ministry of Civil Aviation, AAI ranks No. 1 in timely Redressal of Public Grievances. (a) The Public Grievance Redress Machinery is monitored by a GM level Ofcer at Corporate Headquarters on All India Basis.

74 (b) Public Grievance Ofcers have already been appointed at each airport, whose details are displayed at prominent places at airports for the benets of the passengers and users of airports. The Public Grievances are monitored on daily basis by the respective PGOs at Field Stations, Regional Headquarters and at Corporate Headquarters. Dedicated Email IDs have been created for all the PGOs for the convenience of the users and their details are also available at AAI Website. (c) For the benet of Citizen / passengers, multiple options are given to represent their grievances, such as; CPGRAMS, Letters, Emails, Quick Response Code (QR Code), AAI Website, Suggestion Box, Registers, Telephonic, Twitter or any other mean of complaints / print media. (d) All the Joint Venture and Private Airports along with AAI Airports have been added as subordinate ofce to AAI for proper control, Redressal and monitoring. (e) An Integrated Portal, namely, Air Sewa Portal was launched in the year 2016, which ran successfully. For better operation and smooth functioning and to give better user interface, Air Sewa 2.0 version was also launched in November 2018. Regular trainings with stake holders are scheduled from time to time. (f) Regular meetings and follow-ups are done with all the stake holders for proper administrative control of the Public Grievance Redress Machinery at AAI. (g) A new dimension was also added in the Public Grievances portfolio, which is Consumer Helpline Portal, under Ministry of Consumer Affairs, Food and Public Distribution. The grievances are handled, processed and redressed promptly through this portal also.

75 Annual Report 2019-20

Amritsar Airport Annexure-3 Northern Region Foundation Stone / Inauguration of building or facilities during FY 2019-20 Amount in ` Crores Project-site Particulars Event Date

Delhi New Air trafc Service Complex at Delhi, Inauguration by Hon’ble 02.09.2019 Minister of Civil Aviation on 02.09.2019 Amount in ` Crores Project-site Particulars Completion Completed Date Cost Gorakhpur C/o New Passenger Terminal Building at Gorakhpur (Phase-I & II) Apr 2019 12.31 Jaipur Construction of drain along runway 09-27 & disused runway 15-33 in Apr 2019 7.54 operational area at CA at Jaipur Airport SH- Construction of drain along runway 09-27 Allahabad Development of New Civil Enclave (Design & Build) Jun 2019 143.27 Amritsar Interior work on rst oor of Terminal Building at SGRDJ International Jun 2019 12.03 Airport, Amritsar Bareilly Development of Civil enclave at Bareilly. July 2019 12.09 SH: Construction of Apron, Taxi Track & Associated works Ghaziabad C/o Pre-engineered Airport Terminal Building & associated works at July 2019 29.95 Hindon - On Design & Build basis Udaipur Construction of apron, link taxi & expansion of isolation bay at Udaipur Dec 2019 22.35 Airport Jaipur Expansion / Modication of existing terminal building at Jaipur Intl. Feb 2020 29.13 Airport, Jaipur Lucknow Expansion of Existing isolation bay for parking A 330-200 type of Mar 2020 13.10 Aircraft at CCSI Airport Lucknow

76 Capital Schemes under progress (Status as on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Adampur Establishment of Civil Enclave at Adampur 23.00% Jun 2021 114.85 SH: Construction of Terminal Building Establishment of Civil Enclave at Adampur 27.00% Jun 2020 SH: Construction of Apron, Taxi Track & Associated works. Amritsar Expansion of Apron for 10 Nos. Code 4C type of aircraft 38.00% Dec 2020 96.15 at SGRDJ International Airport (i.e Additional Parking Bays) at Amritsar Airport Bareilly Development of Civil enclave at Bareilly. 75.00% Oct 2020 41.96 SH: Construction of Terminal Building Chitrakoot Development of Airport at Chitrakoot 31.00% Jun 2021 31.10 Chandigarh Construction of Apron for 5nos. Code 4C type of aircraft 76.00% Nov 2020 26.65 at Dehradun Construction of Additional Parking Bay 95.00% Jun 2020 17.69 at Construction of New Integrated Terminal Building 56.00% Jun 2021 456.86 at Dehradun Airport Construction of New Integrated Terminal Building 0.00% Dec 2020 at Dehradun Airport. SH: Provision of Baggage Handling System along with CT – EDS Strengthening of Runway & Taxiway 4.50% Dec 2020 25.67 Fursatgunj Re-Carpeting Of Runway, Taxiway And Other Allied 0.00% Jul 2020 16.36 Works At Indira Gandhi Rashtriya Udan Academy, Fursatganj Jaipur Construction of parallel taxi track from Tango taxi to 98.00% Jun 2020 30.90 Nallah. (Phase – I) at Jaipur Construction of additional parking bays at Jaipur Airport 84.00% Jun 2020 110.00 Refurbishment, Retrot and Renovation of Old Terminal 75.00% Dec 2020 67.20 (T-1) Building for International Operation at Jaipur Airport Construction of Cargo Complex and Apron 65.00% Jun 2020 22.80 at CA at Jaipur Airport Jammu Expansion and strengthening of Runway at 55.00% Oct 2020 77.00 Jodhpur Construction of new apron and link taxi at 88.00% Jun 2020 21.64 Kanpur Development of Kanpur (Chakeri) Airport 7.00% Jun 2021 167.87 Khajuraho Re-carpeting of existing runway at 65.00% Dec 2020 14.58 C/o ATC Complex/Fire Stn/MT Workshop 56.00% Dec 2020 35.00 at Khajuraho Airport Windening & Grading of Basic Strip of Runway 25.00% Dec 2020 33.77 Construction of perimeter Road and storm water Drain at Khajuraho Airport Leh Construction of New Domestic Terminal Building & 16.34% Dec 2021 480.33 associated works at Leh Airport Lucknow Construction of re station category IX, Emergency 76.00% Sep 2020 30.88 medical Centre & associated work at CCSI Airport Lucknow. C/o of Apron for 08 Nos. Code 4C type of aircraft 28.00% Oct 2020 70.44 along with Two link Taxi ways at CCSI Airport. (i.e Additional Parking Bays). Construction of New Integrated Terminal Building 36.00% Mar 2022 1383.00 at Lucknow Airport

77 Annual Report 2019-20

Capital Schemes under progress (Status as on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Muirpur Development of Airport at Muirpur 10.00% Jun 2021 31.10 Safdarjung C/o combined operational complex of DGCA, BCAS, 47.00% Dec 2020 303.80 AAIB, AERA & AAI (Deposit work) at Shimla Restoration of basic strip at 56.00% Dec 2021 124.22 Varanasi C/o New ATC Tower cum Technical Block 80.00% Sep 2020 18.28

Capital Schemes Projects under Planning (As on 31.03.2020) Amount in ` Crores Project-site Particulars Cost Status Remarks Agra Development of New Civil Enclave 398.14 Award Probable date of Start - stage Dec 2020, Expected date of Completion - Jul 2022 Amritsar Parallel Taxi Track (PTT) from T/w-E to Runway-16 and 98.00 Planning Probable date of Start - rehabiutation of IAF structure at Amritsar Airport stage Nov 2020, Expected date of Completion-June 2022 Expansion of Integrated passenger Terminal Building 243.28 Planning Probable date of Start- at Amritsar Airport stage Jan 2021, Expected date of Completion - Jan 2023 Allahabad C/o New re Training Academy at Allahabad 250.00 NIT publish Probable date of Start - Stage Aug 2020, Expected date of Completion– Sep 2022 Halwara Development of Civil Enclave Halwara Airport 300.00 Planning Probable date of Start - Stage Mar 2021, Expected date of Completion– Aug 2023 Jaipur C/o integrated terminal building 1441.00 On hold Probable date of Start - Dec 2020, Expected date of Completion- Mar 2024 Jodhpur New Terminal Building at Jodhpur Airport 400.00 Planning Probable date of Start - Stage Apr 2021, Expected date of Completion- Mar 2023 Lucknow Parallel Taxi track (Phase-I) 121.00 Planning Probable date of Start - stage Nov 2020, Expected date of Completion- Nov 2022 Srinagar Expansion/Modication of New Integrated 494.00 A/A & E/S Probable date of Start - Terminal Building stage Mar 2021, Expected date of Completion- Mar 2024 Udaipur Construction of New Terminal Building at Udaipur Airport 650.00 Planning Probable date of Start - stage Apr 2021, Expected date of Completion - Oct 2023 Varanasi Construction of New Terminal Building at Varanasi Airport 948.00 PMC Probable date of Start - Appointed Apr 2021, Expected date of Completion - Apr 2024

78 Southern Region Foundation Stone / Inauguration of building or facilities during FY 2019-20 Amount in ` Crores Project-site Particulars Event Date

Kalaburgi New Airport at Kalaburagi – Inauguration by the Hon’ble Chief Minister 22.11.2019 of Karnataka. Bengaluru Inauguration of AAI Residential Colony on 19th February, 2020 by 19.02.2020 Chairman, AAI.

Capital Schemes Completed during FY 2019 – 20 Amount in ` Crores Project-site Particulars Completion Date Completed Cost

Vijayawada Extension and Strengthening of Existing Runway 08-26 and associated May 2019 154.27 works at Goa, Calicut, Providing Apron Drive Glass Walled Passenger Boarding Bridges and Sep 2019 62.00 Coimbatore, Advanced Visual Docking Guidance System (AVDGS) Mangalore, Trichy,

Vadodara, Amritsar, Ahmedabad & Trivandrum Bengaluru Construction of AAI Residential Colony at Devenhalli, near Dec 2020 96.58 Kempegowda International Airport, Bengaluru. Kadapa Construction of Additional Parking Bay for A-320 (Category-C) type of Sep 2019 11.35 aircraft at . Chennai C/o new ceremonial lounge building at Chennai, Tamil Nadu May 2019 9.49 Mangaluru Extension of Apron towards East side Sep 2019 5.00

Capital Schemes under progress (As on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Chennai Modernization of Chennai Airport Phase-II, Chennai 48.00% Phase I- 2467.00 Mar 2021 Phase II- Aug 2022 Construction of 2 nos. Rapid Exit Taxiways (RET) for the 85.00% Sep 2020 97.60 main runway 07/25 and straightening of B-Taxiway as Parallel taxi track suitable for code-E Aircraft at Chennai International Airport, Chennai Construction of R Taxi track left out portion connecting 85.00% Sep 2020 98.36 runway 07/25 & 12/30, N taxi track (balance portion) connecting runway 07/25 i/c. box culvert at Chennai Airport, Chennai Construction of Balance portion of 02 nos. Rapid Exit 2.00% May 2021 66.18 Taxiways (RET) for the main runway O7 /25 merging with B-Taxi-track (beyond Critical portion of runway) and resurfacing between Taxiway' D and Taxiway-M and associated works at Chennai Airport, Chennai Trichy Up-gradation of passenger terminal building and airside 34.00% May 2022 951.00 facilities at Tiruchirappalli (Trichy) International Airport

79 Annual Report 2019-20

Capital Schemes under progress (As on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost SH: Construction of new terminal building, elevated road along with associated electro-mechanical, airport system, IT works including comprehensive maintenance and operation SH: Construction of Apron, associated Taxiways, Isolation 52.00% Dec 2020 Bays, GSE Area, and associated works. Re-Surfacing of Existing Runway 09-27 and associated 2.00% Mar 2021 29.81 works at Trichy international Airport, Trichy Mangalore Construction of Link Parallel Taxi Track (Phase-II) and 83.00% Mar 2021 120.71 Grading of Basic Strip at South Side at Mangalore International Airport Modication / expansion of existing Integrated Terminal 55.00% Mar 2021 132.00 Building (Arrival side) at Mangalore International Airport, Mangalore Hyderabad Construction of Civil Aviation Research Organization 3.00% Dec 2021 353.61 Complex at , Hyderabad, Phase-I Visakha- Linear Expansion of existing Integrated Terminal Building 61.00% Dec 2020 70.86 patnam at C.E Visakhapatnam Tirupati Extension of Runway along with Strengthening of existing 45.00% Jun 2021 177.00 runway, Apron and provision of RESA and associated works for Code -E Type of Aircraft at Kadapa Extension & Strengthening of Existing Runway, Taxiway 78.00% Sep 2020 94.44 and Apron along with construction of Isolation Bay, Pavement against Blast Erosion, RESA and Perimeter Road Grading of Strips etc. at Kadapa Airport for the Operation of Code-C Type of Aircraft including electrical works Tuticorin Development of : Extension of Runway with 7.00% Mar 2021 185.53 Blast Pad, RESA, Taxiway, Apron, GSE Area, Isolation Bay and miscellaneous Works Coimbatore Construction of additional apron for parking 5 Nos. 65.00% Dec 2020 29.93 categories C type and extension of apron for 2 Nos. ATR at Coimbatore international Airport Madurai Extension of apron and allied works at 84.00% Sep 2020 25.71 Trivandrum Construction of Additional Apron and GSE area near 92.00% Jun 2020 26.67 NITB at Trivandrum International Airport, Trivandrum Coimbatore Construction of staff quarters at Coimbatore 12.00% Jul 2021 113.87 & Trichy International Airport & Construction of new Residential Staff Quarters, CISF Barracks, Dog kennel & Community hall at old wireless station at Trichy Airport. Chennai C/o Residential quarters at Chennai Airport, Chennai 3.00% Nov 2023 460.75 Misc. Misc. Projects (`5 Cr to 25 Cr) in Southern N.A. N.A. 105.00 Region in progress (i) Development of Vellore Airport under RCS Scheme UDAN – 2 (ii) New ATC Tower cum Technical Block cum Fire Station at Puducherry Airport (iii) Modication for provision of ATM Training Facilities, SMU, Calibration Lab and R&D Centre in existing Terminal Building at Begumpet Airport, Hyderabad.

80 Capital Schemes under progress (As on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost SH: Interior and Civil works including Internal, External Electrical work , Cable Management System for Power and Data Circuits and SITC of Fire Alarm and Fire Extinguishers (iv) Construction of New Fire Station (Category-VII ) at Vijayawada Airport. (v) Construction of New Fire Station at Trivandrum ` Airport for Category – IX (vi) Construction of Compound wall for newly acquired land of AAI at Tuticorin Airport. (vii) Widening and Strengthening of Operational Perimeter Road at Trivandrum Airport. (viii) Widening & Strengthening of existing perimeter road at Mangaluru International Airport

Capital Schemes Projects under Planning (As on 31.03.2020) Amount in ` Crores Project-site Particulars Cost Status Remarks Vijayawada Construction of NITB including Apron, 611.00 Processed Probable date of Start – Apr 2021 ATC Tower and associated works for award Expected date of Completion - Apr 2022 at Vijayawada Airport (subject to PIB approval)

Coimbatore Construction of New Domestic Departure 146.00 Tender Probable date of Start - Apr - 2021 Terminal Building and Associated works stage Expected date of Completion - Mar 2023 at Coimbatore Airport

Tuticorin New Domestic Terminal Building and 195.34 Tender Probable date of Start - Apr - 2021 Miscellaneous works at Tuticorin Airport stage Expected date of Completion - Apr 2023

Madurai Extension of Terminal Building 135.00 Planning Probable date of Start - Sep - 2021 at Madurai Airport stage Expected date of Completion - Sep 2023

Rajahmundry Extension of Terminal Building 135.00 Planning Probable date of Start - Sep - 2021 at stage Expected date of Completion - Sep 2023

Chennai Resurfacing of secondary runway 62.45 Estimate Probable date of Start – Dec2020 at Chennai Airport. stage Expected date of Completion - Sep 2021

Begumpet Resurfacing & Strengthening of Runway 40.00 Planning Probable date of Start –Apr2021 at Begumpet Airport, Hyderabad. stage Expected date of Completion – Mar2022

Madurai Resurfacing of Runway at Madurai Airport 28.40 Tender Probable date of Start –Apr2021 stage Expected date of Completion – Mar2022

81 Annual Report 2019-20

Eastern Region Capital Schemes Completed during FY 2019 – 20 Amount in ` Crores Project-site Particulars Completion Completed Date Cost Deoghar Development of Deoghar Airport, Jharkhand. 25.11.2019 Final bill SH: C/o Runway, Taxi Track, Apron, Isolation Bay, Perimeter Road under Including Earth work and other Allied works. preparation.

Capital Schemes under progress (Status as on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Bhubaneswar Construction of ATC tower, Technical Block, Fire Station 79.00% Sep 2020 34.18 and E & M work shop. C/o Link Building b/w T1 & T2 for Integrated operations 22.00% Mar 2021 53.93 using passenger boarding bridge facility & expansion/ renovation work of Terminal T2 Construction of Parallel taxi Track, Rapid Exit Taxi Way 50.00% Dec 2020 65.66 and Apron for parking of 08 nos. Code C aircraft Resurfacing of Existing Runway. 3.00% Dec 2020 23.57 Port Blair Construction of New Intergrated Terminal building 60.00% Jun 2021 441.33 at VSI Airport Portblair (Balance Work) Ranchi Resurfacing of Runway and Taxiway. 0.00% Aug 2020 19.13 Raipur Construction of Technical Block cum Control Tower, 95.00% Jun 2020 30.21 New Fire Station (Cat-VIII), Sub Station and allied works at Swami Vivekananda Airport, Raipur, (Chhattisgarh) Patna Construction of New Domestic Terminal Building and 46.00% Dec 2020 26.46 other structures (Phase I and II) at Patna Airport. Construction of Control Tower cum Technical Block, Fire station & Cargo Building at Patna Airport (Package I) Construction of New Domestic Terminal Building and 14.00% Apr 2023 539.20 other structures (Phase I and II) at Patna Airport. SH:- Construction of Terminal Building, Residential Buildings, Multi-Level Car Park, Admin Building and other Associated works at Patna Airport. (Package II) Construction of New Domestic Terminal Building and 12.00% Apr 2021 33.68 other structures (Phase I and II) at Patna Airport. SH: C/o State Govt. Hangars, Flying Club, VIP Lounge Building and other Associated works (Package III) Gaya Construction of Technical Block cum control Tower 36.50% Dec 2020 17.71 at , Gaya Deoghar Development of Deoghar Airport, Jharkhand. 60.00% Aug 2020 34.82 Construction of boundary wall including RCC drainage, Security watch tower, cooling pit, re pit and other allied works at Deoghar Airport. Development of Deoghar Airport, Jharkhand. 45.00% Oct 2020 61.28 Construction of New Terminal Building, ATC Tower, Technical Block cum Fire Station Building, E & M Workshop, Service Block, DVOR and other Building Works at Deoghar Airport, Jharkhand. Kolkata Construction of ATC Tower and Technical Block 46.50% Jun 2021 219.91 at NSCBI Airport, Kolkata

82 Capital Schemes under progress (Status as on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Resurfacing of secondary runway 19R/01L 59.00% Nov 2020 37.34 Construction of 03 Hangars for C Category Aircrafts connecting Apron and Taxi link (Narayanpur side) at NSCBI Airport, Kolkata. SH:Construction of 03 nos. Hangars with Annexe Building 67.00% Jul 2021 25.94 Airside Capacity Enhancemnet of NSCBI Airport, Kolkata. 15.00% Oct 2022 264.99 SH: Extension of F-Taxi Track from proposed Bay No. C-13 to 19R & from 19R to 19L, Construction of 03 nos. RET's, 04 nos. Apron, Shoulders and Box Culvert at different locations of NSCBI Airport, Kolkata (Civil & Electrical Works). Bokaro Development of Civil Airport at Bokaro. 70.00% Aug 2020 17.51 SH: Provision of Expandable Low Cost Terminal Building, Control Tower, ESS Building & Watch Towers. Strengthening of Runway, Taxitrack, Apron and Allied works 48.00% Sep 2020 64.61 at Airforce Station Darbhanga. Pakyong Strengthening the base of RE wall by micro pile and 21.00% Dec 2020 29.63 pre-tensioned anchor at . Construction of concrete cladding wall i/c nger drains 10.00% Mar 2021 108.34 to maintain the uphill slope on the western site of the basic strip at Pakyong Airport, Sikkim ( Re-Call)

Capital Schemes Projects under Planning (As on 31.03.2020) Amount in ` Crores Project-site Particulars Cost Status Remarks Bhubaneswar C/O New Terminal Building T-3 913.08 Tender Probable Date of Start – Oct 2020 Stage Expected Date of Completion – Oct 2023 Bihta Development of Joint use Civil Enclave for 981.00 Tender Probable Date of Start – Sep 2020 AAI & IAF at Bihta. Stage Expected Date of Completion – Feb 2023 Dhalbhu- Development of Dhalbhumgarh Airport in the 99.36 Planning Probable Date of Start – Not mgarh State of Jharkhand for fair weather Operations Stage Determinable at this stage since land is of ATR-72 Type of Aircraft. yet to be handed over by State Govt. to AAI Expected Date of Completion - 18 months from the physical possession of land free from all obstructions like trees etc. (Land is yet to be handed over by State Govt. to AAI) Patna Resurfacing of Runway at Planning Draft scope of work sent to Planning Dte. Patna Airport, Patna. Stage for approval. PortBlair Extension of Apron at Port Blair Airport. 100.00 - The estimate is under nalization by site engineers and the tender action shall be taken subsequently. Raipur Construction of NITB at Raipur Airport, Raipur. Planning 1. Preliminary estimate prepared based Stage on draft scope of work & sent to ERA for MYTP. 2. Approved scope of work is awaited from Planning Dte. Kolkata Construction of Common User Domestic Cargo Planning SOW issued on 25.09.2019. Terminal (CUDCT) at NSCBI Airport, Kolkata. Stage Kolkata Construction of Domestic Terminal Building Planning SOW issued on 03.01.2020. at NSCBI Airport, Kolkata Stage

83 Annual Report 2019-20

Western Region Capital Schemes Completed during FY 2019 - 20 Amount in ` Crores Project-site Particulars Completion Completed Date Cost Ahmedabad Modication of existing Departure baggage handling system to Dec 2019 9.69 accommodate CTX based ILBS system Goa Construction of Parallel Taxi Track and associated works Jan 2020 144.80 Modication of existing departure baggage handling system to Dec 2019 10.37 accommodate CTX based ILBS system Indore Development of Drain i/c covering in operational area Jabalpur Construction of boundary wall for newly acquired land (Ph-I) Aug 2019 8.12 Kolhapur Construction of perimeter wall Jan 2020 20.90 Pune SITC of PBB’s Jul 2019 10.74 Surat Construction of Cargo complex Mar 2019 10.37 Modication of Existing Terminal Building Dec 2019 9.10 Vadodara Provision of Solar power plant of 750 KWp Dec 2019 2.86

Capital Schemes under progress (Status as on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Ahmedabad Extension of Apron, Link Taxiway and associated works 83.00% Sep 2020 45.73 Bhopal Construction of rotunda and xed nger for the PBB 80.00% Dec 2020 5.30 Provision of RCC drain cover on existing drain and 50.00% Jan 2020 2.61 construction of new drain in operational area. Diu Extension of Runway and provision of Turning PAD/ 80.00% Dec 2020 20.78 Blast Pad / RESA on both ends of the runway, Isolation Bay and associated works Construction of ATC Tower-Cum-Technical Block -cum 75.00% Dec 2020 13.53 Fire Station and other allied structures Goa Extension of Existing Terminal Building and associated works 1.00% Apr 2022 255.69 Hirasar, Rajkot C/o New Greeneld Airport 1.00% Aug 2022 792.00 SH: Construction of operational area works for category C type Aircrafts Indore Development of 15 nos. parking bays, parallel taxi track 45.00% Dec 2020 62.96 and other associated works Development of Drain i/c covering in operational area 80.00% Sep 2020 5.23 Jabalpur Extension of runway, C/o new apron, Isolation bay i/c link 65.00% Mar 2021 198.00 taxi, Perimeter road and allied works Construction of New Terminal Building and allied works 8.00% Dec 2021 157.10 Kolhapur Extension and strengthening of runway, construction of 42.00% Mar 2021 167.47 apron & associated works Construction of New Terminal Building and allied works 8.00% Mar 2021 71.73 Pune C/o NITB, re-construction of old terminal bldg., 27.00% Jun 2021 475.39 modication of existing expanded terminal building Rajkot Construction of apron with link taxi track for AB 320 aircraft 12.00% Dec 2020 14.98 Surat Extension of Terminal Building and associated works 8.00% Dec 2021 267.45 Extension of Apron and C/o Parallel Taxi Track & allied works 1.00% Dec 2021 85.80 Vadodara C/o of ATC tower cum technical block & allied works 8.00% Mar 2021 57.12

84 Capital Schemes Projects under Planning (As on 31.03.2020) Amount in ` Crores Project-site Particulars Cost Status Remarks Bhopal Construction of New Technical Block cum 40.00 Planning Probable date of Start - Dec 2020 ATC tower and associated works stage Expected date of Completion– March 2022 Indore Construction of New Technical Block cum 86.00 Planning Probable date of Start - Jan 2021 ATC tower and associated works stage Expected date of Completion – Apr 2022 Jamnagar Construction of New Terminal Building and 67.90 Planning Probable date of Start - Dec 2020 associated works stage Expected date of Completion - Mar 2022 Rajkot C/o Greeneld Airport at Hirasar, Rajkot, Planning Probable date of Start - Jan 2021 SH: Construction of New Terminal Building and 471.00 stage Expected date of Completion - Dec 2022 associated works

85 Annual Report 2019-20

North East Region Capital Schemes Completed during FY 2019 – 20 Amount in ` Crores Project-site Particulars Completion Completed Date Cost Agartala Construction of new Isolation Bay and associated Link Taxi Track 31.10.2019 15.86 at Agartala Airport, Tripura. Dibrugarh Extension of runway, C/o isolation bay, link taxiway and allied works 30.06.2019 34.82 at Imphal Recarpeting of runway & major repairs to taxiway at 31.05.2019 29.70 Rupsi Strengthening and Re-carpeting of runway, taxiway, apron and allied 30.09.2019 47.37 works including Car park, RESA, approach road, boundary wall at . Provision of Pre-Fab Porta Cabin Terminal Building, ATC Tower, 15.10.2019 22.34 Security hut and other allied works for RCS operations at Rupsi Airport, (Re-call)

Capital Schemes under progress (As on 31.03.2020) Amount in ` Crores Project-site Particulars Physical progress PDC Approved Cost Agartala Construction of New Integrated Terminal Building and 92.00% Dec 2020 338.94 associated works at Agartala Airport Upgradation of safety infrastructure i/c basic strip 98.60 % Aug 2020 26.97 SH:Construction of Operational Boundary Wall, Property Wall, Watch Towers, Perimeter Road and Storm Water Drain at Agartala Airport Construction of Residential Quarters for AAI Staffs in 79.00% Oct 2020 19.12 AAI Colony at Agartala Airport, Agartala(Tripura) Construction of hangar 90.00% Mar 2020 34.16 Barapani Extension & strengthening of R/way & allied works. 37.00% Dec 2020 34.00 Dibrugarh Construction of hangar 44.00% Dec 2020 21.70 C/o ATC Tower and Technical block 0.00% Feb 2022 44.29 Dismantling of existing open drain in operational area 15.00% Dec 2020 23.35 and construction of new covered drain at the same location Dimapur Strengthening of runway, taxiway& apron i/c construction 96.00% Aug 2020 43.22 of Isolation bay with link taxiway at Guwahati Construction of new Terminal building, control tower, 37.00% Mar 2022 859.86 Hangars, re station, car park, substation, cargo and ancillary buildings at Guwahati Airport Imphal Construction of International cargo terminal 41.00% Dec 2020 15.93 at Imphal Airport. Construction of Hangar, Associated apron & link taxiway 45.00% Dec 2020 35.90 at Imphal Airport Tezu Construction of Terminal Building and allied works 40.00% Dec 2020 53.95 at (Balance work) Holongi Construction of New Greeneld Airport at Holongi, 0.00% Aug 2022 416.00 (Itanagar) Itanagar. EPC tender for package – I (Development of Runway, Apron in operational area and allied works)

86 Capital Schemes Projects under Planning (As on 31.03.2020) Amount in ` Crores Project-site Particulars Cost Status Remarks Imphal Construction of New Terminal Building i/c apron bays 736.00 Tender PMC work awarded to evaluation M/s KITCO ltd. dated stage. 20.12.2018 Existing Terminal Capacity - 1.2 MPPA (Saturated) NITB Capacity - 2.5 MPPA (Saturation year 2026) Ultimate Capacity - 12 MPPA (Saturation year 2035) Tender invited on 30.09.2019. Envelope- I & II has been opened and clarications are sought from the bidders after scrutiny of Env-I & II. Action pending due to Lockdown. (Holongi) C/o Terminal Building, Car Parking, Technical Block, 202.00 Tendering Likely date of award Itanagar Residential Quarter, E & M Workshop, Medical Centre and Stage. Sep2020 The EPC tender balance city side development for package -II (C/o Terminal Building, Car Parking, Technical Block, Residential Quarter, E & M Workshop, Medical Centre and balance city side development) for estimated cost ` 202.00 Cr. (including GST) was published on CPP Portal on 17.08.2019. The tender is cancelled as no bidder could satisfy the NIT criteria. The fresh NIT with relaxed criteria will be called within 10 days after lifting of Lockdown, the likely date of award Sep 2020. PDC Dec 2022.

87 Annual Report 2019-20

Veer Savarkar International Airport The Annual Report on Annexure-4 Corporate Social Responsibility (CSR) Activities 1. A Brief outline of the AAI’s CSR Policy, including overview of 5. Environment conservation projects or programs proposed to be undertaken and a AAI’s CSR Policy is available and can be viewed on AAI’s reference to the web-link to the CSR policy and project or website at programs. https://www.aai.aero/sites/default/les/csr_policy/C Airports Authority of India aims to achieve consolidate and orporate%20Social%20Responsibility%20%26%20Su strengthen good corporate governance including socially stainability%20Policy%202017-2209.pdf and environmentally responsible business practices that AAI is expanding its CSR activities to aspirational districts balance growth with social well-being. Being a socially identified by NITI Aayog which are highly under-developed. responsible enterprise, Airports Authority of India (AAI) has AAI has been allocated 16 aspirational districts by DPE in been taking a lead to serve the society and is committed to various Indian states, and AAI has stepped up its efforts enhance the quality of life of people from marginalized towards development in these aspirational districts. AAI has sections of the society, especially those people who reside in a community development project running in Ranchi in proximity to the airports. collaboration with United Nations Development Program The thematic/programme focus of the AAI’s CSR work (UNDP). Recently, AAI also signed an MoU with District includes, but is not limited to: Administration, Aurangabad in which is an 1. Education, including formal and informal education and aspirational district for updation of 55 Centres vocational training that contribute towards sustained (AWCs). Apart from these two projects, AAI is building toilets income generation and self sufficiency in government schools of Mamit (Mizoram) and Chandel (Manipur) both of which are aspirational districts as well. 2. Health as an integral component of better quality of life with special focus on women and girls. Though AAI runs programs in almost all verticals, its focus area this year had been “Education, Healthcare and 3. Integrated community development that fill the gaps in the Nutrition” - the theme assigned by DPE for FY 2019-20. Out statutory resettlement and rehabilitation programmes of the of the CSR budget, AAI ensures to spend 60% of it on the government and ensure that the quality of lives of theme decided by the Department of Public Enterprises communities are positively impacted (DPE). AAI also undertook a range of CSR Activities on Rural 4. Disaster Management including preparedness, capacity Development, Sanitation, Women Empowerment, Skill building as well as emergency response leveraging core Development, Environment and Sustainability. The overview competency of the AAI in situations of disasters. of various CSR projects and programmes undertaken by AAI

88 during the FY 2019-20 has been provided in detail at Point was also a member of the CSR Committee), the Board in its 5 of this Annexure. Further, a separate section on the immediate next meeting made Shri G. Sekar, an independent board Corporate Social Responsibility & Sustainability, briefing member, as Member of the Committee. some of AAI’s major projects, forms part of the Annual 3. Average net profit of AAI for last three financial years – Report. ` 4189.28 Crores 2. Composition of CSR Committee as on March 31, 2020 4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above) – 83.79 Crores Name Designation 5. Details of CSR spent during the financial year: Shri Arvind Singh, Chairperson Chairman, AAI a) Total amount to be spent for the year financial year – Sh. A.K. Pathak Member (Planning) ` 83.79 Crores Sh. Anuj Aggarwal Member (HR) b) Amount unspent, if any; - Nil

* Consequent upon cessation of Dr. (Ms.) Tuktuk Ghosh Kumar, IAS c) Manner in which the amount spent during the financial year (Retd.), Independent Board Member of AAI in February 2020 (who is detailed below Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 1 Providing Radiotherapy Health Chennai, 18.500 11.100 16.650 State Govt Equipment (Linear Tamil Nadu Accelerator and Brachytherapy) in Govt Hospital, Chennai 2 Funding for Mechanized Nutrition Guwahati, 15.710 9.304 14.010 State Govt Central Kitchen in Assam Assam for providing mid-day meal by the Akshaya Patra in Association with State Govt 3 Contribution towards the Relief & Pan India 15.000 15.000 15.000 Direct PM CARES Fund to ght Rehabilitation Covid19 Pandemic 4 Funding of Project for Health Pan India 13.410 10.430 10.430 M/s Fitment of Cochlear ALIMCO Implants of 200 Children with Hearing Impairment 5 Purchase of MRI Machine Health Leh 12.780 11.500 11.500 State Govt for SNM Hospital, Leh 6 Employment Oriented Skill Assam 10.590 2.756 7.150 M/s CIDC, Training and Skill development a Society Development Programme set-up by for SC/ST/OBC, Women, Planning Unemployed Youth & Commis- EWS Society for 2000 sion persons 7 Employment Oriented Skill Delhi 10.590 1.742 5.383 M/s CIDC, Training and Skill development a Society Development Programme set-up by for SC/ST/ OBC, Women, Planning Unemployed Youth & Commis- EWS of society for 2000 sion persons

89 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 8 Procurement of Low Health Dehradun, 10.000 6.000 9.000 M/s AIIMS, Energy Linear for Cancer Uttarakhand Rishikesh treatment at AIIMS Rishikesh 9 Construction of Multi- Rural Sikkim 9.730 1.124 6.886 State Govt purpose Community Hall, Development Pakyong 10 Contribution for Health , 9.570 2.870 2.870 State Govt procurement of specied Assam major equipments for Trauma Centre (Level – 3) at Distt. Kokrajhar, (Bodoland Territory), Assam 11 Construction of New Education Dehradun, 7.500 2.250 2.250 State Govt Modern Library Complex Uttarakhand at Dehradun, Uttarakhand 12 Construction of Maternity Health Bhubaneswar, 6.740 2.022 2.022 State Govt Ward with modern Odisha equipments and expansion of existing building of Niali Community Health Centre, Niali, Cuttack, Odisha 13 Installation of Sanitary women Pan India 5.980 0.350 2.680 Kalyanm- Napkin Vending Machine Empowerment ayee- AAIWWA 14 Construction of 100 nos. Sanitation Itanagar, 5.490 0.558 0.650 State Govt new Toilets in the state of Arunachal Pradesh 15 Setting up of Aviation Skill Chandigarh 5.250 2.000 3.225 NSDC- Multi Skill Development development NSDF Centre Chandigarh with NSDC 16 Empowering people Health Delhi 5.000 3.646 5.146 M/s ILBS against Hepatitis: The Empathy Campaign 17 Financial Support to the Health Mumbai, 5.000 2.010 2.010 M/s Tata center for life saving Maharashtra Memorial treatment of Hospital, underprivileged children Mumbai suffering from Cancer at Tata Memorial Center, Mumbai. Maharashtra for two years

90 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 18 Contribution towards Water Pan India 5.000 5.000 5.000 Direct SWACHH BHARAT KOSH 19 Development of Rural Puducherry 5.000 1.770 1.770 State Govt Multipurpose Indoor Development SportsFacilities in rural areas of UT of Puducherry 20 Supporting and adopting Health Mumbai, 4.980 0.390 1.280 M/s Red the Life Saving Maharashtra Cross Thalassemia Day Care Society Centre of Indian Red Cross Society, Bombay 21 Provision for two Modular Health Bhubaneswar, 4.740 1.422 1.422 State Govt Operation Theatres and Odisha one General Operation Theatre at Capital Hospital, Bhubaneswar 22 Resilience Building of Rural Guwahati, 4.570 1.360 2.740 State Govt Communities by UNDP Development Assam around Guwahati Airport 23 Procurement of essential Health Imphal, 4.430 0.495 0.495 State Govt equipments, Furniture, Manipur Manifold Room and Oxygen Gas Pipe Line etc. for newly constructed Accident Trauma Centre (ATC) at JNIMS, Porompat, Imphal East. 24 Provision of 5 Mobile Vans Education Delhi 3.250 0.306 3.086 M/s Delhi for Mobile Library services Public library 25 Swachh Vidhayalya Education Kishangarh, 2.496 1.709 0.100 Direct Initiative 26 Purchase of Ultra Sound & Health Leh 2.400 0.720 0.720 State Govt Digital X-Ray Machine for Primary Health Centres, Leh (J&K 27 Construction of Rural Guwahati, 2.380 0.523 1.380 Direct Community Hall at Garal, Development Assam Kamrup 28 Setting up of Aviation Art & Culture Mumbai, 2.000 1.200 1.800 M/s Nehru Gallery at Nehru Science Maharashtra Science at Mumbai Centre 29 Contribution to Tata Health Mumbai, 1.850 0.250 0.250 M/s Tata Memorial Centre, Mumbai Maharashtra Memorial to empower 2000 poor Hospital,

91 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads Cancer Patients (1000 Mumbai patients per year) with an expert treatment plan 30 Construction of school Education Shravasti, 1.800 0.540 0.540 State Govt building at Shravasti (Balarampur), UP and Provision of Drinking Water, Solar Lights, Toilets, Education and Health Facilities 31 Provision of Safe Drinking Education Kishangarh, 1.600 0.983 0.983 Direct Water in schools and Rajasthan provision of Rooftop Solar Panels in government schools near Kishangarh Airport, Ajmer, Rajasthan 32 Synthetic Turf and Sports Rural Ukhrul, 1.500 0.150 0.150 Direct Recreation Centre, Ukhrul Development Manipur District, Manipur 33 Construction of School Education Balia, 1.500 0.190 0.190 State Govt Building at Balia Uttar Pradesh 34 Construction of Primary Education Jamaniya, 1.500 0.290 0.290 State Govt School Jamaniya, Uttar Pradesh Uttar Pradesh 35 Organizing Cervical Health Pan India 1.380 0.407 0.617 Kalyanm- Cancer Screening Camps ayee- AAIWWA 36 Donating advance life Health Nagpur, 1.140 0.332 0.334 Direct support Ambulance to Maharashtra Indira Gandhi Government Medical College and Hospital (IGGMCH), Nagpur 37 C/o Toilets in Govt. Education Imphal, Manipur 1.140 0.357 1.140 State Govt School in Manipur State 38 Overhauling 55 Rural Patna, Bihar 1.100 0.358 0.358 State Govt Anganwadi Centres into Development Model AWC 39 Construction of 20 Toilets Education Imphal, Manipur 1.100 0.550 0.550 State Govt in various Govt. Schools, Chandel, Manipur. 40 Construction of Toilet Education Mizoram 1.100 0.330 0.330 State Govt (Girls block) for Education Department, Govt. of Mizoram

92 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 41 Construction of Toilets Education Mizoram 1.100 0.330 0.330 State Govt for Boys & Girls at MAMIT Dist., Mizoram 42 C/o Individual Household Sanitation Shillong, 1.080 0.650 0.970 State Govt Latrines in Ri-Bhoi District Meghalaya and of Washing Area (GHAT) i/c Weir Protection Wall and Bathing Cubicle 43 Installation of Solar Education Ahmedabad, 1.000 0.600 0.900 Direct Panels in Gujarat Gujarat Vidyapith, Ahmedabad (Gujarat) 44 Purchasing of Ambulance Health Mumbai, 1.000 0.019 0.589 Direct and Hearse Van and Maharashtra providing to the Govt. Hospitals. 45 Making the villages Sanitation Pan India 1.000 0.706 0.706 State Govt Open Defecation Free near Airports 46 Extending support to state Health North 0.960 0.600 0.600 Direct administration to ght East Region against COVID-19 - North East 47 Provision of six Mechanical Health Bhubaneswar, 0.958 0.153 0.153 M/s AIIMS, (ICU) Ventilators, two Odisha Bhubane- Portable Ventilators and swar two Debrillators in Emergency Room at AIIMS, Bhubaneswar 48 Providing 04 Nos. of Health Gaya, Bihar 0.890 0.664 0.664 Direct Patient Road Transport Ambulances (Type-B) and 01 No. of Advance Life Support System Ambulance (Type-D) to Civil Surgeon-cum- Medical Ofcer, Gaya 49 Solid Waste Management Enviornment Tuticorin, 0.880 0.301 0.301 State Govt for the villages around Tamil Nadu the Airport in Panchayat Union & Rehabilitation of Alampatti Kanmai at Kovilpatti

93 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 50 Providing Desktop Education Kishangarh, 0.870 0.828 0.828 Direct Computers and Printers to Rajasthan 12 Govt. Schools in Ajmer district 51 Construction of 27 Nos. Sanitation Aurangabad, 0.830 0.298 0.298 State Govt of Toilets in 19 Maharashtra Aurangabad Municipal Corporation School 52 Construction of Toilets Sanitation Vijayawada, 0.820 0.082 0.082 State Govt at Davajigudem 53 C/o Pharmacy and Health Rowing, 0.800 0.551 0.548 State Govt Medical Canteen cum Arunachal Waiting Hall at District Pradesh Hospital, Roing 54 SITC of Design Based Enviornment Pune, 0.800 0.204 0.327 Direct Off-Grid Roof Top Maharashtra Mounted 40 KWP Solar Power System Solar Photovoltaic Power Plant at Paraplegic Rehabilitation Centre at Khadki, Pune. 55 Provision of Safe Drinking Water Shillong, 0.750 0.224 0.224 State Govt Water for villages Meghalaya near Tura 56 Provisioning of Safe Education Kishangarh, 0.750 0.352 0.592 State Govt Drinking Water & misc. Rajasthan works in school villages in the surrounding areas of Kishangarh Airport in Ajmer Distt 57 Bone Marrow Transplant Health Indore, 0.700 0.800 0.800 M.G.M. Operation at MGM MEDICAL Medical College, Indore COLLEGE & ASSOCIA- TED HOSPITAL INDORE 58 Supply & Installation of Health Pune, 0.630 0.395 0.520 Direct Hospital furniture to Maharashtra Aundh & Sasoon Hospital Pune 59 Construction of Cyclone Relief & Visakhapatnam, Shelter / Kalyana Rehabilitation Andhra Pradesh 0.619 0.548 0.548 State Govt Mandapam / Community Hall at Jogaraopeta Village, Near

94 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 60 Provisioning of Night Rural Ghazipur, 0.600 0.531 0.531 State Govt Shelter, Solar Light and Development Uttar Pradesh Handpump at Devkali Block, Ghazipur, UP 61 Renovation work of Govt. Education Lucknow, 0.570 0.205 0.602 State Govt School at Aurangabad, Uttar Pradesh Jagir Zone-I, Lucknow including provision of Bench, Water Supply, Solar Power System, Electrical and allied works 62 Renovation Work of Janta Education Lucknow, 0.520 0.335 0.335 State Govt Girls Inter College at Uttar Pradesh Alambagh, Lucknow i/c Provision of Water Supply & Electrical works 63 Construction of 15 nos. Education Pratapgarh, 0.520 0.150 0.318 State Govt Toilets for Girls’ School at Uttar Pradesh Distt Pratapgarh, U.P. (Fund from "Swachh Vidyalaya Initiative" 2015-16 64 Contribution to M/s. Health Delhi 0.501 0.150 0.150 M/s Cankids for supporting Cankids Change in Childhood Cancer initiative 65 Major Tree Plantation at Enviornment Varanasi, 0.500 0.500 0.500 State Govt Panchkoshi Marg Varanasi Uttar Pradesh 66 Infrastructure Education Salem, 0.499 0.483 0.483 State Govt Implementation in Schools Tamil Nadu at 67 Procurement of medical Health Anjar, 0.480 0.140 0.148 Direct equipments for Referral Gujurat Hospital and Community Health Centre, Anjar (Gujarat) 68 Improvement of Road Rural Guwahati, 0.450 0.270 0.410 Direct from VIP Chowk near Development Assam Airport to Kahikuchi 69 Construction Of Diarrhea Rural Visakhapatnam, 0.4529 0.253 0.253 State Govt Treatment Centre At Development Andhra Pradesh Dimili Village 70 Construction/ Renovation Education Bhuntar, 0.430 0.392 0.445 State Govt of Toilet Blocks and Supply Himachal of School Furniture, Pradesh Computers to Govt. Sr. Sec. School Bhuntar by Kullu Manali Airport and at Schools at Chail

95 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 71 C/O Custom Hiring women Agartala, 0.420 0.135 0.135 State Govt Centre to be run by Empowerment Tripura Tripura Rural Livelihood Mission Dept., Govt of Tripura for empowering the women in Dhlai District, Tripura 72 Reconstruction of Education Varanasi, 0.420 0.200 0.200 State Govt Ambedkar Basic Primary Uttar Pradesh School 73 Provision of 02 Nos Health Srinagar, 0.400 0.400 0.400 Direct Critical Care Ambulance, Jammu & Kashmir Budgam 74 Construction of Auditorium Rural Calicut, Kerala 0.400 0.202 0.202 State Govt for Government GMUP Development School, Malappuram 75 Provision of buses for Health Lengpui, 0.400 0.269 0.340 Direct Thingdawal Nursing Mizoram home 76 CSR works at Primary Education Agra, 0.390 0.100 0.100 State Govt School, in village Nagla Uttar Pradesh Parsu, Shadabad, Hathras, U.P. 77 Impact Evaluation Overhead Pan India 0.410 0.129 0.129 Direct for AAI CSR Projects Expenses 78 Installation of 30 nos. of Water Sonitpur, 0.376 0.074 0.240 State Govt standalone Water Tezpur, Assam Purication Plants at Dekiajuli LAC Year 2017-18 & Year 2018-19 79 Construction of Girls Toilet Education Trichy, 0.366 0.246 0.246 State Govt including Bore Wells in Tamil Nadu Government Girls High Schools 80 Unnyalpaparamba Water Calicut, Kerala 0.360 0.271 0.271 State Govt Water Supply Scheme for ward no: 6, Pallikkal Grama Panchayat’’ 81 Provision of Bus to M/s Rural Coimbatore, 0.360 0.346 0.346 Direct Sankara Eye Foundation, Development Tamil Nadu Coimbatore and Sponsoring "Maruthi Eeco" vehicle to M/s Eeranenjam, Coimbatore

96 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 82 Provision of drinking water Water Kishangarh, 0.350 0.125 0.185 State Govt in 20 Govt. Schools of The. Rajasthan -Kishangarh/ Distt.-Ajmer (Rajasthan) under Swachh Bharat Swachh Vidhyalaya Campaign 83 Construction of 4 Units Sanitation Sikkim 0.350 0.034 0.315 State Govt of Toilets at Pakyong 84 Setting up Mini Science Education Chennai, 0.350 0.088 0.175 Direct Centre (MSC) in Schools Tamil Nadu 85 Procurement of 25 Water Dum dum, 0.350 0.280 0.280 Direct Stainless Steel Water Kolkata Supply Tank Trailers 86 Construction of Education Coimbatore, 0.340 0.100 0.200 State Govt Compound Wall and Tamil Nadu development of Playing Area, provision of Playing Materials to Elementary School, Brindavan Nagar, Coimbatore 87 Construction of Toilet Block Education Mumbai, 0.323 0.250 0.250 Direct for Girls and Boys at Maharashtra Airport High School, NAC Mumbai 88 Provision of two nos Enviornment Goa 0.320 0.290 0.290 State Govt Organic Waste Converters (OWC) at Defence Land, Varunapuri 89 Solid Waste Treatment Enviornment Chennai, 0.320 0.049 0.326 State Govt Plant to be established Tamil Nadu near the Chennai Airport 90 Construction of School Education Calicut, Kerala 0.310 0.186 0.276 Direct building to GMPL School Melangai, Kondotty Municipality 91 Renovation / Enviornment Lucknow, 0.310 0.094 0.094 State Govt Beautication for existing Uttar Pradesh Baraat Ghar, Nagar Panchayat Patti, Dist: Pratapgarh, Uttar Pradesh 92 Sponsoring Full Medically Health Coimbatore, 0.300 0.300 0.300 Direct equipped Ambulance to Tamil Nadu Department of Preventive Medicine and Public Health, Coimbatore

97 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 93 Procurement of two nos. Health Trichy, 0.290 0.403 0.403 Direct of Ambulances under Tamil Nadu GeM to provide the same to Mahatma Gandhi Government Hospital Trichy 94 Desilting, deepening and Rural` Tuticorin, 0.280 0.133 0.223 State Govt strengthening of Development Tamil Nadu Nedumkulam Kanmai in Illupaiurani Panchayat in Kovilpatti Taluk.- Deposit work 95 Provision of SMART Class Education Coimbatore, 0.280 0.179 0.280 State Govt to rural Government Tamil Nadu Schools at Erode District 96 Funding of Bio- Enviornment Jorhat, Assam 0.277 0.083 0.083 State Govt Remediation and Bio- mining of Titabar Dumpsite of Jorhat District 97 Procurement of Accessible Education Chennai, 0.269 0.064 0.269 Direct School Bus Tamil Nadu 98 Distribution of meal Relief & Delhi 0.250 0.250 0.250 Direct during Covid19 lockdown Rehabilitation by AAI ofcers Institute 99 Construction of Mess Education Calicut, Kerala 0.250 0.075 0.075 State Govt House Cum Kitchen for Mid-Day Meal Scheme at Government UP School, Odakkayam, Arecode Malappuram District 100 Installation of Roof Top Enviornment Cuttack, Odisha 0.250 0.139 0.139 Direct Solar Power System at the Akshaya Patra Foundation, Cuttack 101 Provision of Ambulance Health Tezu, 0.220 0.184 0.180 Direct of Lohit District` Arunachal Pradesh 102 Providing Advance Life Health Lilabari. Assam 0.220 0.224 0.220 Direct Support (ALS) Winger Ambulance to North Lakhimpur Civil Hospital, Assam 103 Provision of Patient Care Health Jorhat, Assam 0.220 0.219 0.219 Direct Facility (Ambulance) for Jorhat District

98 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 104 Providing 02 Nos. Enviornment Dibrugarh, 0.210 0.211 0.211 Direct Mahindra Tractors to Assam Dibrugarh Municipal Board for secondary collection of Garbage 105 Donation of two Health Bhubaneswar, 0.205 0.065 0.065 Direct Ambulances with Odisha equipment to St. John Ambulance, Odisha State Centre, Bhubaneswar 106 Donation of a Mini Bus Rural Imphal, 0.156 0.156 0.156 Direct for Tabitha Children Development Manipur Home, Imphal, Manipur 107 Improvement of Basic Education Bhopal, 0.154 0.049 0.109 Direct Amenities in Mahatama Madhya Pradesh Gandhi Sr. Sec School, Gandhinagar Bhopal 108 Conducting skill Skill Rajkot, Gujarat 0.140 0.104 0.123 Direct Development Training development programme for BPL, Women, SC/ST Candidate in the surrounding areas of 109 Funding for purchase of Enviornment Chennai, 0.140 0.046 0.149 Direct Promotion Vehicle for the Tamil Nadu Tree Plantation Drive organised by Dr. APJ Abdul Kalam Social Forest Project 110 Development and Rural Trichy, 0.132 0.132 0.132 State Govt upgradation of Development Tamil Nadu “Boxing Ring" at Anna Stadium, Trichy 111 Providing of Water Education Bhopal, 0.130 0.110 0.110 Direct Purier & Water Cooler Madhya Pradesh in 20 nos. of Govt. School of Bhopal District 112 Donating Advanced Life Health Nagpur, 0.130 0.130 0.130 Direct Support Ambulance to Maharashtra Government Hospital, Parola, Maharashtra 113 Construction of Anganvadi Rural Mangalore, 0.124 0.037 0.087 State Govt at Kenjar Kana, Malavoor Development Karnataka GP Mangaluru Taluk, Dakshina Kannada Dist., Mangaluru International Airport

99 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 114 Allocations of funds from Relief & Jammu 0.120 0.120 0.120 Direct CSR head for Rehabilitation Rehabilitation of families affected due to the Demolition Drive – Jammu 115 Providing 01 number Health Imphal, 0.119 0.119 0.119 Direct Mortuary Van and Water Manipur Purier for Autonomous District Counsil, Senapati, Imphal. 116 Sponsoring 2 numbers of Nutrition Guwahati, 0.110 0.028 0.028 Direct Food Carrying Vehicle to Assam distribute meals 117 Construction of GLSR at Rural Mangalore, 0.110 0.033 0.033 State Govt Mura of Paduperar Gram Development Karnataka Panchayat in Mangaluru Taluk 118 Provision of Patrolling Enviornment Seijosa, 0.108 0.108 0.108 Direct Van 1 no. for Pakke Tiger Arunachal Conservation Foundation, Pradesh Seijosa 119 Providing equipments for Relief & Calicut, Kerala 0.105 0.089 0.089 Direct ood effected Paliative Rehabilitation Care Unit at Edakkara, Malappuram District 120 Provision for food Nutrition Guwahati, 0.100 0.100 0.100 Direct distribution to ood Assam affected people at Guwahati 121 Construction of Footpath Rural Goa 0.100 0.107 0.107 State Govt from NSD junction I 7-B Development to at Highway Fairam Nagar Road of Village Panchayat Chicalim 122 Plantation drive across Enviornment Coimbatore, 0.100 0.100 0.100 Coimbatore Bharathiar Tamil Nadu University 123 Procurement of Health Gaya, Bihar 0.090 0.090 0.090 Direct equipments for ALS, Gaya 124 Development of Govt Education Jaipur, 0.080 0.275 0.275 State Govt Girls School, Sanganer, Rajasthan Jaipur as Model School 125 Providing Library books, Education Tezpur, Assam 0.070 0.070 0.070 State Govt Laboratory equipments and interior facilities to LOKD College, Dhekiajuli, Sonitpur Dist. Tezpur

100 Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 126 Renovation of Education Shillong, 0.060 0.020 0.020 State Govt Government Lower Meghalaya Primary Schools in Meghalaya 127 Construction of Pipe Rural Vijayawada, 0.055 0.055 0.055 State Govt culvert Development Andhra Pradesh 128 Procurement of medical Health Vijayawada, 0.054 0.054 0.054 Direct equipment for the VIRRD Andhra Pradesh Hospital, Vijayawada 129 Food distribution to Nutrition Guwahati, 0.050 0.050 0.050 Direct stranded public at Railway Assam Station and Airport, Guwahati 130 Providing basic Rural Bhopal, 0.050 0.050 0.050 Direct infrastructure in 20 Nos. Development Madhya Pradesh Govt. Anganwadi Centre in Bhopal District. 131 Providing 01 nos. Maruti Health Imphal, Manipur 0.050 0.051 0.051 Direct Eeco Van to B.B Paul Mental Development Home Mongshangei, Imphal West 132 Provision of Maruti Vehicle Nutrition Coimbatore, 0.050 0.047 0.047 Direct and Utensils to ‘No Food Tamil Nadu Waste’ - an NGO 133 Providing educational, Education Calicut, Kerala 0.049 0.036 0.049 Direct training and recreational equipments to BUD School at Kondotty Muncipality 134 Construction of Room Rural Patna, Bihar 0.040 0.049 0.049 State Govt at Rajkiya Netrahin Development Uchcha Vidyalaya, Kadamkuan, Patna 135 Treatment and re- Enviornment Goa 0.040 0.010 0.318 State Govt cycling of Vehicle Washing Waste Water at INS Hansa 136 Motivation kit for 1000 Education Jorhat, Assam 0.030 0.030 0.030 Direct school and college students and to under- privileged children to join armed forces, Jorhat 137 Providing hardware Rural Calicut, Kerala 0.026 0.025 0.025 Direct infrastructure to Development Malappuram district police department for Trafc awareness training program

101 Annual Report 2019-20

Projects or Amount Programs spent on the projects or Amount Amount (1)Local areas programs Cumulative Sector in outlay spent: or other Sub-Heads: expenditure S. CSR Project or Activity which the (budget) Direct or (2)Specify the (1) Direct or upto to the No. Identied Project is project or through State and expenditure reporting covered programwi implement District where on projects period project or se or programs ing agency program was (2) undertaken Overheads 138 Free Tax-e meal -Assisting Skill Coimbatore, 0.025 0.009 0.009 Direct cab drivers in IT ling/ development Tamil Nadu Aadhar linking) 139 Sponsorship – Education Vijayawada, 0.020 0.024 0.024 Direct Rajiv Gandhi University of Andhra Pradesh Knowledge Technologies (IIIT Nuzvid)–Autonomous Car Design Innovate EPGA Grand Finale 2019 – China – Reg. 140 Provision for RO Plant Water Salem, 0.020 0.023 0.023 State Govt for Drinking water at Tamil Nadu PUPS Kamalapuram, GHS Kamalapuram and PUMS Thumbibadi 141 Provision of 30 nos. of Health Cooch Behar, 0.017 0.012 0.017 Direct Smart Canes (Walking aids for blinds) for Children Home 142 Funding for installation Health Imphal, 0.007 0.007 0.007 Direct of Air Quality Monitoring Manipur Station at Churachandpur, Manipur 143 Organizing Transgender Gender Guwahati, 0.004 0.004 0.004 Direct Sensitization Programme Empowerment Assam across Assam, Manipur & Agartala 144 Organizing self defence Education Lucknow, 0.003 0.003 0.003 Direct (Judo/Karate) classes for Uttar Pradesh student of Janta Girls Intermediate College, Alambagh, Lucknow 145 Installation of Reectors Rural Ludhiana, 0.002 0.002 0.002 State Govt on Bicycle for road safety Development Punjab 146 Procurement of furniture Education Trichy, 0.002 0.002 0.002 Direct for Airports School Tamil Nadu at Trichy 147 Administrative overhead Overhead Expenses Expenses 0.739 0.739

Total 260.421 125.706 167.581

102 6. Reason for not spending the prescribed 2% amount NOT APPLICABLE AAI, in the financial year 2019-20, spent `125.70 Crores on CSR activities, equivalent to 3.00% of its Average net profits for the last three financial years.AAI is persistently exploring new opportunities where it can serve the society & the nation and as a socially responsible enterprise, it is committed to play a larger role in India’s sustainable development by embedding wider economic, social and ecological objectives.AAI’s expenditure on Corporate Social Responsibility and thereby contribution towards Nation Building is evident from the table given below:-

CSR Expenditure for last 5 years 140

120 125.70 100 80 86.78 60 71.90 in Crores

` 60.19 40

20 29.73

0 2015-16 2016-17 2017-18 2018-19 2019-20

Financial Year

7. Responsibility statement of the CSR Committee The Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the AAI.

Anuj Aggarwal Arvind Singh, IAS Member – CSR Committee Chairperson – AAI & CSR Committee

103 Annual Report 2019-20

AAI - Giving Back to the Society AAI has strategically chosen the CSR initiatives with a Sound and Digital X-Ray machine of Philips to focus on improving the quality of life. The initiatives primary health centres in Leh, Union Territory of focus on Health, Education, Nutrition, Sanitation, Ladakh. Rural& Community transformation and Disaster 4. Contribution for procurement of specied Management. The Department of Public Enterprises major equipments for Trauma Centre (Level (DPE) had assigned the theme of “Education, – 3) at Distt. Kokrajhar, (Bodoland Territory), Healthcare and Nutrition” as the theme of CSR Assam at `9.57 Crores. - The MoA for the projects for AAI in FY 2019-20, wherein AAI spent project was signed on 10th April 2019 and the around `125 Crores on various CSR projects in 25 1st installment of Rs. 2.87 Cr released on states and UTs. 15.05.19. Except for the initial delays due to A brief on some of the CSR projects undertaken by demolition of building at site, reinstallation of AAI during FY 2019-20 is given below:- blood bank and equipments therein and the 1. Contribution to Tata Memorial Centre, Covid 19 pandemic, the construction of the Mumbai to empower 2000 poor cancer trauma centre is underway. patients (1000 patients per year) with an 5. Construction of Modern Library Complex at expert treatment plan a `1.70 Crores Parade Ground, Dehradun, Uttarakhand at Tata Memorial Centre’s “Online” Expert `7.50 Crores - The MoA for the project was Opinion Service, “Navya Care” scales signed on 10th June 2019. The work has been affordable and on time access to expertise to awarded to Uttarakhand Peylal Nigam, GoUK. every patient in India - irrespective of The construction of the Library, though delayed socioeconomic and urban city privileges – and due to Covid19 Pandemic, is in progress in full level disparities in care. Navya Care leverages swing and is expected to be completed by June cancer informatics technology and online 2021. patient services to allow universal access to 6. “Provision of safe drinking water in schools evidence based experts at Tata Memorial Centre and provision of rooftop solar panels in and expert centres in the National Cancer Grid, government schools near Kishangarh (a Government of India initiative), such as Airport, Ajmer, Rajasthan” at `1.60 crores AIIMS, Adyar Cancer Institute, CMC Vellore, The project aims to provide safe drinking water Max Hospitals etc. This project empowers and rooftop solar panels in government schools people living in Tier – II, Tier – III cities to access near Kishangarh Airport. Along with the Director quality healthcare. Education, Govt. of Rajasthan 12 schools were 2. Provision of 2 Modular Operation Theatres and selected wherein the rooftop solar panel work 1 General Operation Theatre at Capital was completed by M/s REIL and the safe drinking Hospital, Bhubaneswar, Orissa at `4.74 water work was executed by Engg deptt of Crores and Construction of Maternity Ward with Kishangarh Airport. modern equipments & expansion of existing 7. Procurement of advanced equipment & building of Niali Community Health Centre machineries, software and tools to “School of (CHC), Niali, Bhubaneswar, Orissa at `6.74 Fire & Safety”, GSFC University, Vadodara, Crores.The implementing agency is the Gujarat to develop as an Institute of Excellence Department of Health and Family Welfare, with State-of-the-Art educational facilities in the Government of Orissa. field of Fire & Safety, Health & Environment at Rs 3. Purchase of MRI Machine to SNM Hospital, 1.00 Crore. Leh, UT of Ladakh at `12.78 Crores and 8. Construction of playground with gallery, Purchase of Ultra Sound & Digital X-ray drainage and compound wall at Kyamgei Machine for Primary Health Centres, Leh, Heibong Makhong, East Imphal, Manipur at UT of Ladakh at `2.40 Crores. The project `1.50 Crores proposes to provide latest MRI machine, Ultra There is no proper sport infrastructure. The

104 project location is in the outskirts of the Imphal This Multipurpose lndoor Hall will engage the East district. There are young sports loving Rural Students and Youth to channelize their people with good potential for sports and such potential and energy in a constructive and opportunity can save them from drug abuse. The healthy way resulting in holistic development. State government does not have sufficient MoA between AAI and Department of School resources under state plan to construct the Education was signed on 20th August 2019. project with its own resources. Thus, AAI decided 10. Provision of Synthetic Turf and Sports to go further and support this noble cause. Recreation Centre, Ukhrul District, Manipur 9. Development of Multi-purpose Indoor at `1.80 Crores - The objective of the project is sports facilities in rural areas of U.T. of to increase participation of youth/community in Puducherry at ` R5.00 Crores sports and recreation. The project would lead to Development of Multipurpose lndoor sports better health of the youth/community and would facilities at Rural Govt Schools will cover all the increase career/economic prospects for the Communes of Puducherry, Karaikal, Mahe & youth. . lt is proposed to create Multipurpose 11. AAI also made contribution of `15 Crores to PM indoor Hall with facility to practice Basketball, CARES Fund to strengthen the fight against Volleyball, Badminton and Table-Tennis in 4 COVID-19 pandemic and `5 Croresto Swacch Rural areas of Union Territory Puducherry as (i) Bharat Kosh. Puducherry -2 nos.; (ii) Karaikal – 1 no.; and (iii) Given below are the photographs depicting CSR Yanam -1 no. works undertaken by AAI: -

Procurement of Low Energy Linear Accelerator for Organising Cervical Cancer Screening Camps Cancer unit AIIMS, Rishikesh/Haridwar

Providing Radiotherapy Equipment (Linear Accelerator Supply & Installation of Hospital furniture to Aundh & and Brachytherapy) in Govt Hospital, Chennai Sasoon Hospital Pune

105 Annual Report 2019-20

Providing Desktop Computers and printer of 12 Govt. Funding for Mechanized central kitchen in Assam for Schools in Ajmer district providing mid-day meal by the Akshaya Patra in association with state Govt.

Setting up of central kitchen at , Andhra Pradesh Employment Oriented Training & Skill Development through Akshay Patra Foundation program me of unemployed youth SC/ST/OBC Women and EWS of Society for 2000 persons by CIDC

Setting up of Aviation Multi Skill Development Centre , Promoting Holistic Sustainable Development of Human Chandigarh Settlements at villages at Ranchi, Jharkhand

106 Resilience Building of Communities around Guwahati Construction of Community Hall at Garal, Kamrup, Airport with United Nation Development Program Guwahati

Solid Waste Treatment Plant to be established near the Operation of Paper Recycling Unit, Rangpuri, New Delhi Chennai Airport

Development and Promotion of Ex-Situ Conservation of Solar power system Solar Photovoltaic Power Plant (off Wild Animals under Assam State Zoo Guwahati Grid)as alternative Source of Electricity at Paraplegic Rehabilitation Centre at Kirkee, Pune

107 Annual Report 2019-20

Details of steps taken by AAI in the eld of Renewable Energy, Energy Efciency, Reduction in Carbon Emission and RWH for incorporating in Sustainability Report 2019-20

For sustainable development, AAI has taken conventional light fixtures with LED fixtures following steps:- with an expenditure of Rs. 16 Cr.(approx.) at I. Solar Power Plants 23 Airports and under Phase-II, M/s Energy Efficiency Services Limited(EESL), a Joint AAI has utilised its available rooftop areas and Venture of PSUs under Ministry of Power, is surplus lands for generation of renewable undertaking work of replacement of energy by installing and operating Rooftop & balance conventional light fixtures with Ground Mounted Solar Power Plants at various energy efficient light fixtures for tentative airports. expenditure of Rs. 24.40 Cr. at 62 Airports AAI has commissioned total capacity of around under the MoU signed between AAI and 43 MWpSolar Power Plants at 49 airports / EESL. Work at 58 Airports have been locations by March 2020. Works are in progress completed, out of which works at 14 to install around 16 MWp capacity Solar Power Locations – Vishakhapatnam; Tirupati; Plants. Cumulative capacity of around 59MWp Mumbai Operational office, ATS Tower of Solar Power Plant will be commissioned by &Complex; Gondia; Khajuraho; December 2020. Ahmedabad; Porbandar; Bhavnagar; Further, Power Purchase Agreement (PPA) for 12 Surat; Lucknow; Dehradun & Pantnagar MWp (off site) Solar Energy through open access have been completed during FY 2019-20. has been executed at Chennai Airportfor 10 b) E n e r g y A u d i t : - A A I h a s b e e n years period, resulting in saving of around conductingEnergy Audits at 56 nos. major Rs.4.72 Cr. per year. Airports since 2014. Further, review audits During Financial Year 2019-20, Solar Power of 33 nos. airports have been completed Plants at 10 Airports – Vijayawada (1MWp), after mandated 03years time period to Tirupati (1MWp), Trichy (1MWp), Calicut assess the effectiveness of implementation. (873KWp), Dibrugarh (725KWp), Vadodara The review audit of balance 23 nos. airports (675KWp), Gaya (220KWp), Gondia have been taken up, out of which review (220KWp), Juhu (150KWp) & Safdarjung audits at 16 airports have been completed Airport (115KWp) have been commissioned. during FY 2019-20 and balance is likely to be completedby 2020-21. The Annual Solar Energy Generation is around 50,000 MWh, resulting in saving of Rs. 40 Cr. Observations & recommendations given (approx.) which is around 9.35% of Discom below are being implemented in phased electricity cost and islikely to increase by 12 % by manner as immediate measures, short December 2020. The reduction in Carbon terms measures and ling term measures:- Emission due to use of Solar Energy is around i) Optimizing the loading & operation cycling 57,600 tCO2 per annum. of transformers to minimize the losses. II. Energy Conservation:- ii) Improvement of power factor with APFC Following measures have been taken by AAI for Panels. energy conservation:- iii) Use of Variable Frequency Drives (VFD) for operation of motors. a) Use of LED lights at Airports: - AAI is replacing old and hazardous mercury iv) Replacement of old equipmentswith energy based light fixtures with Energy Efficient LED efficient BEE star rated equipments. light fixtures to protect the environment and v) Optimization of the voltage by Automatic to reduce the energy consumption. Under Voltage Regulator (AVR). Phase-I, AAI has completed replacement of vi) Use of occupancy / motion sensors for

108 Sustainability Report For sustainablelighting control. development, AAI has taken Inw linehic withh re thefle above,cts AA AAII to hasp msignedanag MoUeme nwitht’s following vii) Setting steps:- of temperature of air conditioning Solarcommitment energy corporationto fulfil environment of India (SECI) obligation. to set system within human comfort level. upAAI the has Solar implemented Power Plant A atCI- various ACA P rogrammeairports. at I. Solar power plants:- four of its major airports viz Kolkata, viii) Proper Segregation of Air Conditioned & AAI has commissioned 36.187 MWp Solar AAI is setting up the solar power plants for PowerBhubaneswar Plant at, 40Trivandrum Airports/ and Locations Varanasi by Airports which Non-Air conditioned area. and soon will expand its domain to other energy generation at various airports in place AAI is able to generate approx. 778 lakh units ix) Use of Harmonic Filters in electrical power airports. Level-1 Accreditation (Mapping of of conventional sources of fuel whichare non- till Mar'2019. Total 7.02 MWp capacity roof top distribution system to minimize harmonic &c agrrboound fomootpunritnetds )wSoalsa r aPclhainetv einds tadlulartiinogn renewable type and also cause pollution. distortion. worksDece aremb iner ,progress 2018. atL 11eve Airports/l-2 Acc rLeocations.ditation x) Use of Energy Efficient Chillers in place of (Reduction of carbon footprints) has now been S. conventionalType of Plant old technology Chillers. Mode achievedCommissioned in December 2019Under by Pformulatingrogress No. carbonCapacity emissions (K Wp)reduction target,(KWp) developing xi) Use of Energy Efficient LED Taxiway lights. 1 Roof Top CAPEX of Carbon10772 Management Plan to2240 achieve the c) GRIHA Star rating Buildings: AAI has target and demonstration of Scope 1 and 2 RESCO 1305 0.00 taken initiatives to construct Terminal emissions reductions, which shows AAI’s 2 buildingsGround as Mounted Green Buildings of minimum CAPEX commitment21010 towards fulfilment of3780 environment GRIHA 4 Star rating by adopting different RESCOobligations 3100by reducing carbon footprints1000 at its green options for selection of materials, Airports. procedures and equipments in projects as Total 36187 7020 The AAI has set the target in reduction in direct well as in operations and maintenance of GHG emission (Scope 1 & 2) @ 5% per PAX per the projects. List of Solar PV Plants at AAI's locations year over base year 2015 benchmark value and III.S . A CNameI-Airpo ofrt CAirportarbon AccreditatiSolaron Plant S. 75% Name reduction of Airport in direct GHG emissionSolar Plant by 2030 No.C e rtication: Capacity (KWp) No.over the base year 2015 at theseCapacity 04 Airports. (KWp) The target would be further reviewed during the A. In ROOFline wi tThOP national as well as global climate 17 Port-Blair 158) change initiatives, AAI has participated voluntarily renewal of Carbon Management Plan. The 1 in Allahabadthe Airpor t Carbon Accreditatio300n program 18reduction Raipur achieved at these four 100airports is 2 lauAmritsarnched by Airports Council Internatio400nal (ACI). 19appended Ranchi below:- 250 3 AAIAAI h aVsasant instit uKtunjed an “Environme200nt Policy”, 20 Bagdogra 50 K4OLKA IGRUTA A,AIRPOR FursatgunjT 60 21 Guwahati - I 50 5 Jaipur Kolkata Airport 100 22 Imphal 130 t CO 2015 2016 2017 2018 2e 23 Jorhat 75 6 Scope 1 Jodhpur 1,894 1,212 546 100 317 7 Scope 2 Kishangarh61,507 59,906 56,592 40 45,960 24 Agartala 250 Total 63,401 61,118 57,138 46,277 25 Silchar 100 8 Lucknow 500 PAX 12170837 14875212 18882179 21663463 26 Ahmedabad 700 15 (kgCO e/PAX) 5.20 4.10 3.02 2.14 2 700 9 Rajiv Gandhi Bhavan 250 27 Bhuj 230 V10ARANASI Varanasi AIRPOR T 600 28 Indore-I 100 11 Leh Varanasi Airport 27 t CO 2015 2016 2017 2018 2e 29 Pune 300 12Scope 1 Bhubaneswar832 800 596 100 439 Scope 2 3,534 4,113 3,677 3,565 30 RED Ofce & ATS 103 13 TotalJharsuguda-I 4,366 4,913 4,27350 4,004 Complex - Mumbai 14 PAXJharsuguda-II1213824 1839508 197558910 2690846 31 Rajkot 150

(k15gC O2Ke/Polkata-IAX) 3.60 2.70 2.202000 1.52 32 Calicut 750 16 Patna 219 33 Chennai 1500

109 Annual Report 2019-20

BHUBANESWAR AIRPORT Bhubaneswar Airport

t CO2e 2015 2016 2017 2018 Scope 1 205 242 262 525 Scope 2 4,865 5,610 6,206 5,874 Total 5,070 5,852 6,468 6,400 PAX 1768258 2183612 2951244 4215916

(kgCO2e/PAX) 2.90 2.70 2.20 1.57

TRIVANDRUM AIRPORT Trivandrum Airport

t CO2e 2015 2016 2017 2018 Scope 1 199 316 344 352 Scope 2 11,410 11,468 11,468 11,251 Total 11,609 11,784 11,812 11,603 PAX 3343563 3838320 4226118 4567121

(kgCO2e/PAX) 3.50 3.10 2.80 2.54

IV. Rain Water Harvesting (RWH): AAI has implemented various measures to store AAI works to minimize the use of potable water, or recharge the rainwater to the aquifers at its 34 to process waste water in the most efficient way Airports like Chennai, Jaipur, Lucknow, possible, reuse of treated water and to manage Bhubaneswar, Raipur, Udaipur, Amritsar, the quantity and quality of storm water runoff by Dhradun, Jaisalmer, Jammu, Ahmedabad, providing rainwater harvesting systems Bhopal, Vadodara, Gaya, Ranchi, Manglore, wherever possible to enhance the water Rajahmundryetc. RWH works are in progress at availability and sustainability. 16 Airports. AAI understands the need of meeting human AAI is also implementing Rain Water Harvesting development goals while at the same time fully System at its all upcoming major Terminal committed for best possible sustainable Building Projects like Chennai, Jabalpur, Trichy, development. Pune, Guwahati, Bhubaneswar, Bihta etc.

110 Mangaluru Airport

Financial Statements of Airports Authority of India Annual Report 2019-20

Performance At A Glance

PARTICULARS UNITS 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 SOURCES OF FUNDS Paid up Capital ` in Crores 656.56 656.56 656.56 656.56 656.56 656.56 Grants " 58.72 89.89 99.17 26.72 32.70 39.65 Loans - Others " 91.56 37.16 37.43 39.78 545.21 1,287.40 Non Current Liabilities " 8,474.67 8,816.36 8,456.89 7,307.96 7,280.95 5,216.46 Reserves & Surplus " 14,756.63 13,729.89 14,170.89 14,372.10 12,381.25 10,760.05 TOTAL " 24,038.14 23,329.86 23,420.94 22,403.12 20,896.67 17,960.12 APPLICATION OF FUNDS Fixed Assets (Less Deprec.) " 8,463.03 7,947.20 7,757.89 7,679.77 7,581.69 8,247.72 Work in Progress " 4,849.38 3,183.06 1,574.65 1,661.25 1,601.00 1,442.22 Investments " 1,797.84 1,715.47 1,715.47 1,715.47 1,151.15 1,101.15 Other Non Current Assets " 7,138.15 7,521.11 6,897.73 5,433.39 5,740.78 3,387.47 Working Capital " (508.91) 8.40 2,894.05 3,602.61 2,958.02 2,298.65 Deferred Tax Asset (Net) " 2,298.65 2,954.62 2,581.14 2,310.63 1,864.03 1,482.91 TOTAL " 24,038.14 23,329.86 23,420.94 22,403.13 20,896.67 17,960.12 INCOME & PROFIT Revenue " 12,837.44 14,132.96 12,976.96 12,542.01 10,824.50 9,284.98 Expenditure " 9,020.38 10,448.97 8,560.02 7,984.40 7,127.15 6,493.57 Prot before tax " 3,817.06 3,683.99 4,416.94 4,557.61 3,697.35 2,791.41 Provision for tax " 1,176.00 1,786.03 1,885.81 1,888.28 1,541.10 1,247.44 Provision for Deferred Tax (Asset) " 655.97 (373.48) (270.51) (446.60) (381.11) (415.25) Prot after tax " 1,985.09 2,271.44 2,801.64 3,115.93 2,537.36 1,959.22 APPROPRIATION General Reserve " 641.19 810.84 1,072.76 1,194.59 963.76 873.97 Specic Reserve (net) " 385.55 537.79 716.89 796.26 657.44 617.46 Dividend (incl. interim dividend) " 818.57 765.46 840.50 934.78 761.21 391.85 Tax on Dividend " 139.78 157.35 171.49 190.30 154.95 75.94 TOTAL " 1,985.09 2,271.44 2,801.64 3,115.93 2,537.36 1,959.22 Special Dividend iro Previous Year " - 1,484.50 1,654.11 - - - Tax on Dividend iro Previous Year " - 305.14 336.74 - - - Appopriation from General " - 1,789.64 1,990.85 - - - Reserves NET WORTH " 15,413.19 14,386.45 14,827.45 15,028.66 13,037.81 11,416.61 (Share Capital + Reserves) CAPITAL EMPLOYED " 7,954.12 7,955.59 10,651.94 11,282.38 10,539.71 10,546.37 (Net Fixed Assets + Working Captial) Current Assets " 8,974.31 7,339.08 8,094.55 7,980.70 7,318.69 7,150.88 Current Liabilities " 9,483.22 7,330.69 5,200.50 4,378.09 4,360.67 4,852.23 Working Capital " (508.91) 8.40 2,894.05 3,602.61 2,958.02 2,298.65

114 Performance At A Glance

OTHER HIGHLIGHTS UNITS 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Gross Addition to Fixed Assets ` in Crores 2,461.53 1,841.93 1,724.07 1,626.21 763.90 1,015.19 Sundry Debtors less Provision " 1,476.81 1,164.16 1,211.21 1,868.79 1,977.41 2,320.80 No. of employees in position Nos. 17,364 17,487 17,536 17,484 17,370 17,465 Aircraft Movements Nos.'000s 2,587.05 2,605.96 2,324.55 2,049 1,793 1,603 Passenger Movements (**) " 1,58,332.38 1,58,793.1 1,36,731.39 1,13,021 92,817 78,895 Cargo Handled (**) Tons'000s 909.56 942.32 920.26 808 724 681 RATIOS Prot After Tax to Net Worth Percentage 13 16 19 21 19 17 Prot Before Tax to Capital " 48 46 41 40 35 26 Employed Prot After Tax to Capital " 25 29 26 28 24 19 Employed Turnover to Capital Employed " 161.39 177.65 121.83 111.16 102.7 88.04 Current Ratio Ratio 0.95:1 1:1 1.56:1 1.82:1 1.68:1 1.47:1 Debt Equity Ratio - Total Debts to Equity Ratio 0.007 0.003 0.003 0.03 0.10 0.14 - Long Term Debts to Equity Ratio 0.006 0.003 0.003 0.003 0.04 0.11 Prot Before Tax to Total Revenue Percentage 29.73 26.07 34.04 36.34 34.16 30.06 Prot After Tax to Total Revenue " 15 16 22 25 23 21 Average Debt Collection Period Days 187 161 169 200 202 213 No. of Aircraft Movements per Nos. 149 149 133 117 103 92 employee Revenue per employee ` in '000 7,393 8,082 7,400 7,173 6,232 5,325 Revenue Exp. Per employee ` in '000 5,195 5,975 4,881 4,567 4,103 3,724 ANNUAL PLAN Plan Outlay ` in Crores 5,169.16 4,195.07 2,517.82 1,974.00 1,900.00 1,576.56 Actual Capital Expenditure ` in Crores 4,713.49 4,297.44 2,504.38 2,054.00 1,757.00 1,399.87 FINANCED AS UNDER: Internal Resources Utilised " 4,230.76 3,704.12 2,018.44 1,842.60 1,499.96 1,224.12 North Eastern Council Grant " 22.636 - 20.00 35.00 20.50 20.50 RCS Grant " 454.514 282.61 235.61 - - - Budgetary Grant in aid " 0.978 118.2 187.13 75.07 81.34 120.50 Commercial Borrowings " - - - - 67.50 - Others " 4.598 192.51 43.20 101.33 87.70 34.75 TOTAL " 4,713.49 4,297.44 2,504.38 2,054.00 1,757.00 1,399.87 (**) Excluding JVC, State Owned & private airports

115 Annual Report 2019-20

BALANCE SHEET as at March 31, 2020 (` In Crores) Particulars Note FY 2019-20 FY 2018-19 No. I EQUITY AND LIABILITIES 1. Capital (a) Capital 2 656.56 656.56 (b) Reserves and Surplus 3 14,815.35 13,819.78 15,471.91 14,476.34 2. Non-Current Liabilities (a) Long-Term Borrowings 4 91.56 37.16 (b) Other Long Term Liabilities 5 883.96 740.11 (c) Long-Term Provisions 6 7,590.71 8,076.24 8,566.23 8,853.51 3. Current Liabilities (a) Trade Payables 7 404.32 527.56 (b) Other Current Liabilities 5 3,184.97 3,234.18 (c) Short Term Provisions 6 5,893.93 3,568.95 9,483.22 7,330.69 Total 33,521.36 30,660.54 II ASSETS 1. Non-Current Assets (a) Fixed Assets (i) Tangible Fixed Assets 8 8,440.96 7,938.34 (ii) Intangible Assets 9 22.07 8.86 (iii)Capital Work-in-Progress 10 4,845.54 3,174.62 (iv)Intangible Assets Under Development 11 3.84 8.44 13,312.41 11,130.26 (b) Non-Current Investments 12 1,797.84 1,715.47 (c) Deferrred Tax Assets (Net) 13 2,298.65 2,954.62 (d) Long-term Loans and Advances 14 7,138.15 7,521.11 24,547.05 23,321.46 2. Current Assets (a) Inventories 15 70.24 84.74 (b) Trade Receivables 16 1,476.81 1,164.16 (c) Cash and Cash Equivalents 17 1,284.13 1,861.78 (d) Short-term Loans and Advances 14 5,550.12 3,484.53 (e) Other Current Assets 18 593.01 743.87 8,974.31 7,339.08 Total 33,521.36 30,660.54 Statement of Signicant Accounting Policies 1 The Notes from 1 to 47 are an integral part of these Financial statements

Sd/- Sd/- Sd/- Sd/- (R. Tulasi Mahalakshmi) (D. Bhojwani) (K Vinayak Rao) (Arvind Singh) Company Secretary ED (F&A) Member (Finance) Chairman

New Delhi 25th September, 2020

116 STATEMENT FOR PROFIT AND LOSS for the period ended March 31, 2020 (` In Crores) Particulars Note FY 2019-20 FY 2018-19 No. Income I. Airport Navigational Services 19 3,592.95 3,702.18 II. Airport Services 20 3,718.05 4,491.59 III. Non-Aeronautical Airport Services 21 1,887.74 1,842.85 IV. Cargo Revenue 22 - - V. Airport Lease Revenue 23 3,063.01 3,050.07 VI. Other Income 24 575.69 1,046.27 VII. Total Revenue (I+II+III+IV+V+VI) 12,837.44 14,132.96 VIII. Expenses Employee Benets Expenses 25 4,481.24 5,158.98 Operating Expenses 26 1,751.64 1,662.68 Administrative and Other Expenses 27 626.34 823.68 Finance Costs 28 4.61 6.50 Depreciation and Amortization 29 1,751.25 1,564.89 Security Expenses 30 405.30 1,232.24 Total Expenses 9,020.38 10,448.97 IX. Prot before exceptional and extraordinary items and tax (VII-VIII) 3,817.06 3,683.99 X. Exceptional & Extraordinary Items - - XI. Prot before tax (IX-X) 3,817.06 3,683.99 XII. Tax Expenses: (1) Current Tax 1,176.00 1,786.03 includes previous year tax of `0.00 Crores (FY 2018-19- `3.97 Crores) (2) Deferred Tax 655.97 (373.48) XIII. Prot/(Loss) for the period (XI-XII) 1,985.09 2,271.44 Balance Carried to Balance Sheet 1,985.09 2,271.44

Statement of Signicant Accounting Policies 1 The Notes from 1 to 47 are an integral part of these Financial statements

Sd/- Sd/- Sd/- Sd/- (R. Tulasi Mahalakshmi) (D. Bhojwani) (K Vinayak Rao) (Arvind Singh) Company Secretary ED (F&A) Member (Finance) Chairman

New Delhi 25th September, 2020

117 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

Note 1 - SIGNIFICANT ACCOUNTING POLICIES 2. Property, Plant and Equipment 1. Basis of Preparation of Financial Statements 2.1 Assets 1.1 (i) The nancial statements are prepared 2.1.1 AAI has adopted the cost model of under historical cost convention on accrual recognition to measure the Property, Plant basis as per the provisions of Airports and Equipment. Consequently, all Property, Authority of India Act, 1994 (No.55 of Plant and Equipment are carried at its cost 1994) and rules and notication made less accumulated depreciation and thereunder, and in accordance with accumulated impairment losses, if any. generally accepted accounting principles 2.1.2 The cost of an item of Property, Plant and and the mandatory applicable accounting Equipment comprises its purchase price, standards issued by the GOI agency including import duties and non- approved for the purpose. refundable taxes, after deducting trade (ii) The Accounts are presented in the format discounts and rebates, any directly as notied by the Government vide attributable expenditure to bring the Notication No. 815 dated 31st March Property, Plant and Equipment to the location and making it ready for its 2014 under Airports Authority of India intended use and is net of credit availed in (Annual Report and Annual Statement of respect of any taxes, duties, capital grant Accounts) Rules, 2014. receipts. (iii) All assets and liabilities have been 2.1.3 The items of property, plant and equipment classied as current or non-current. Based are reviewed from the component on the services r e n d e r e d a n d t h e i r accounting approach and the parts/ realization in cash and cash equivalents, components with signicant cost and the operating cycle has been ascertained separate useful life is identied as per their as 12 months for the purpose of current carrying cost. and non-current classication of assets 2.1.4 Spare parts are recognised as property, and liabilities. Figures for previous periods plant and equipment's when they meet the have been regrouped/reclassied denition of property, plant and wherever necessary for uniformity in equipment. Otherwise, such items are presentation. classied as inventory. 1.2 Use of Estimates 2.1.5 Subsequent costs are included in the asset's carrying amount or recognised as a The preparation of nancial statements separate asset, as appropriate, only when requires the management to make estimates it is probable that future economic benets and assumptions that affect the reported associated with the item will ow to the amount of assets, liabilities, revenue, entity and the cost of the item can be expenses and disclosure of contingent measured reliably. liabilities as at the date of the nancial 2.1.6 Capitalization is carried out in terms of the statements. Management believes that these Capitalization Policy of AAI. Brief gist is as estimates and assumptions are reasonable follows:- and made on prudent basis taking into a) Construction Works (Project)- account all available information, however Capitalization is done from the time the actual results could differ from these the project is ready for intended use. estimates and such differences are recognized in the period in which the results b) Equipment relating to Airport, Cargo, are crystallized. Security & IT and CNS Equipments not

118 Notes to Financial Statements for the year ended March 31, 2020 requiring Calibration: Capitalization is 2.2.2 The interest on mobilization advance in done from the date of installation, respect of project is set off against the testing and commissioning. project expenses. c) C N S E q u i p m e n t ' s r e q u i r i n g 2.2.3 Interest on borrowings for projects is Calibration –ILS, RADAR, VORs, ADS- capitalized up to the date of capitalisation. B: To be capitalized from the date the 2.3 Intangible Assets ight calibration is completed as 2.3.1 Computer Software (not being an certied by Flight Information Unit embedded software in the equipment) (FIU) of AAI or immediately after 3 which is put to use and is expected to months from the date of installation as provide future enduring economic benets certied by Radio Construction and is recognized as Intangible Assets and D e v e l o p m e n t U n i t ( R C D U ) o f amortized on straight line basis over a AAI/Suppliers whichever is earlier. period of ve years or licence period of the 2.1.7 Part completion of works / projects and put software whichever is earlier. However to use are capitalized based on the where such computer software is still in technical assessment. development stage, costs incurred during the development stage of such software 2.1.8 Expenditure not represented by AAI Assets are accounted as “Intangible Assets Under is charged off as Revenue expenses. Development”. 2.1.9 Pre-project expenditure in case of 2.3.2 Expenditure on Research & Development, abandoned works and expenditure incurred other than on capital account, is charged for foreclosed and abandoned works are to revenue. charged off as Revenue expenses. 2.4 Depreciation 2.1.10 Fixed Assets which have been fully 2.4.1 Depreciation on xed assets is calculated depreciated are shown at residual value of on a straight-line basis using the rates Re.1/- till disposal. arrived at based on the useful lives 2.1.11 Any non-monetary asset acquired from State estimated by the management. The Government free of cost is valued at nominal following rates are used to provide value of `1/- for each type of asset. depreciation on its xed assets. 2.1.12 Wherever land is sold / transferred / Depreciation rates disposed-off and the specic value of such Asset Type Rates land is not available, it is valued at average (SLM) cost of acquisition, except in cases where it Runways, Taxiways and Aprons, Roads, 13% Bridges & Culverts is acquired free of cost. Plant and Machinery/Electrical installations 11% 2.1.13 In case of joint xed assets to the extent of X-ray Baggage 11% AAI's share in such assets is accounted in Tools & Equipment 20% proportionate to the cost incurred and Buildings-Terminal Buildings & others 8% depreciation charged accordingly. Buildings-Residential 5% Buildings Leasehold 8% 2.1.14 Asset individually costing less than Temporary Buildings, Security Fencing 100% `5000/- are charged off to Revenue Boundary wall (Operational) 8% expenses. Boundary wall (Residential) 5% 2.2 Construction Period Expenses on Projects Ofce equipment 18% Furniture and xtures 20% 2.2.1 Direct revenue expenditure of exclusive CFT & Fireghting equipment 13% Project Division handling capital projects Aircraft 10% are capitalized along with the completion Other Vehicles 14% cost of the work(s). Computers, IT Hardware & accessories 20%

119 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 2.4.2 Depreciation is charged at 100% of the 3. Investments applicable rates in case assets are used in Investments which are readily realizable and a nancial year for 180 days or more intended to be held for not more than one year whereas if the assets are used for less than from the date on which such investments are 180 days the depreciation will be made are classied as Current Investments. All equivalent to 50% of the depreciation of other investments are classied as long-term the nancial year. investments. Long term investments are carried 2.4.3 Depreciation on Temporary Buildings, at cost. Provision is made for diminution other Security Fencing and Intangible assets is than temporary, in the value of such charged at 100% of the applicable rates investments if any. irrespective of the number of days in use. 4. Trade Receivables 2.4.4 Lands taken on lease by AAI are amortized Debt more than 1 year old recoverable from over the lease period and in case where the parties other than Government Departments lease period is not available, such costs are (including State Governments) are considered amortized over a period of 60 years. doubtful and provided for. 2.4.5 The residual value and the useful life of an a) In cases where the matter has been asset is to be reviewed at least at each referred to arbitration / litigation/ nancial year-end and, if expectations disputed, necessary provision is made in differ from previous estimates, the the accounts irrespective of the period of change(s) should be accounted for as a debt. change in an accounting estimate in b) Security Deposit available has not been accordance with AS 5, “Net Prot or Loss considered while making the provision for for the Period, Prior Period Items and doubtful debts. Changes in Accounting Policies”. 5. Inventories 2.5 Impairment of Assets (i) Stock / Spares consumed during the year As at each balance sheet date, the carrying are charged as revenue expenditure. amount of cash generating units/assets is (ii) Stock at year end (except store/spare with tested for impairment so as to determine: unit cost of ` 5000 and less) is valued at a) the provision for impairment loss, if cost price on FIFO basis for a period of ve any required; or the reversal, if any, years from the date of receipt. Thereafter r e q u i r e d o f i m p a i r m e n t l o s s the net realizable value is worked out as recognized in previous periods. under and is shown at cost or net realizable value whichever is less: b) Impairment loss is recognized when th the carrying amount of an asset 6 year 70% of the cost exceeds recoverable amount. 7th year 40% of the cost 2.6 Physical Verication of Fixed Assets 8th year onwards 10% of the cost. The Physical Verication of Fixed assets are 6. Grants & Subsidies carried out as under:- Grants/Subsidies received from the - Big Airports (including ATC centers/ Government and Foreign Financial Institutions Security/Cargo units): Every 3 years. for acquisition of assets under agreements - Medium Airports: Every 2 years. approved by the Government are treated as Capital Grants. Grants are deducted from the - Small Airports (includes ACS, CHQ, gross value of the assets at the time of CATC, RCDU, CRSD, FIU, EMO, and capitalisation of assets in arriving at its book RHQ (Administrative ofces): Every year. value. Till the completion of the work Grant will

120 Notes to Financial Statements for the year ended March 31, 2020 be shown as a reduction from the WIP of the (v) In respect of Deposit Works undertaken by concerned work. When the grant is equal to the AAI, income accrued as departmental cost of the asset, the asset is shown in the charges is accounted for on receipt/ balance sheet at nominal value at ` 1/-. lodging of the nal claim. Assets created out of Development Fee are (vi) Income and expenditure upto Rupees ve valued at a nominal amount of ` 1/-. lakhs in each case pertaining to previous 7. Foreign Currency Translation years are accounted for in the current year. (i) Transactions in foreign currency are 9. Taxes on Income recorded at the exchange rates prevailing Provision for current tax is made as per the at the date of transactions except the provisions of the Income Tax Act, 1961. balance in Exchange Earners Foreign Current Tax Provision is adjusted against Currency(EEFC) Account which is Advance Tax on the basis of order of accounted for at the rate prescribed for Commissioner Income Tax (Appeals) received such Account. during the year. (ii) Non-Monetary items denominated in 10. Deferred Tax foreign currency (such as Fixed Assets etc) Deferred tax Liability/Asset resulting from are valued at the exchange rate prevailing “timing difference” between book and taxable on the date of transaction. prot is accounted for considering the tax rates (iii) Any gains or losses arising due to and laws that have been enacted or differences in exchange rates at the time of substantively enacted on the Balance Sheet translation are accounted for in the date. The Deferred Tax Asset is recognized and statement of P&L either under the head carried forward only to the extent that there is a foreign exchange uctuation or interest reasonable certainty that sufcient taxable cost as per the case. income will be available in future against 8. Revenue Recognition which such deferred tax assets can be realized. (i) Revenue is recognized as the services are 11. Employee Benets rendered on accrual basis and is net of 11.1 Short Term Benets service tax/GST. Short Term Employee Benets are (ii) Bills are raised at the time when and to the accounted for in the period during which extent there is no signicant uncertainty as the services have been rendered. to its measure ability and ultimate 11.2 Post-Employment Benets and Other Long realization. Term Employee Benets: (iii) In respect of cases under legal disputes / PPE a) AAI's Contribution to the Provident Act, Interest on delayed payments, Cargo Fund and Pension Scheme in respect of Demurrage charges (except where bills are Eligible Employees is remitted to AAI, raised on Airlines/Agencies), Insurance Employee Provident Fund Trust Claims, Interest on Staff advances, etc. are a n d R e g i o n a l Pr o v i d e n t Fu n d accounted on receipt basis. Commissioner, Ministry of Labor (iv) Custom Duty Exemption certicates and Employment, Govt. of India received under 'Serve India Scheme' as well respectively based on a xed as EPCG Licenses are accounted as percentage of the eligible employee's income in the year of receipt. However salary and charged to Statement of unutilized portion of expired Scripts/ Prot and Loss. Licenses if any is charged off in the period b) AAI operates dened benet plans for in which the results are crystallized. Gratuity. The cost of providing such

121 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 dened benets is determined using Contribution Pension Trust” based on a the projected unit credit method of xed percentage of the eligible actuarial valuation made at the end of employees salary as approved by AAI the year and administered through Board and charged to Statement of respective Trusts. Actuarial gains/losses Prot and Loss. are charged to Statement of prot and 12. Others Loss. (i) The specic reserves are utilized as per c) Obligations on Compensated utilization of specic reserves guidelines Absences, Welfare benets, Post- Retirement Medical benets for retired approved by Board. employees and resettlement benets (ii) Expenditure incurred on procurement of are provided using the projected unit arms for CISF is treated as revenue credit method of actuarial valuation expenditure. made at the end of the year. (iii) EMD of unsuccessful bidders and Security d) AAI's Contribution to Employees Deposit of elapsed contracts, more than Dened Contribution Pension Scheme three years old and not claimed, is treated is remitted to “AAI Employees Dened as miscellaneous income.

122 Notes to Financial Statements for the year ended March 31, 2020

2. CAPITAL (` In Crores) Particulars FY 2019-20 FY 2018-19 Capital : Government of India

As per last Balance Sheet 656.56 656.56 Add: Addition during the year - - TOTAL 656.56 656.56

3. RESERVES AND SURPLUS (` In Crores) Particulars FY 2019-20 FY 2018-19 Capital Reserves As per last Balance Sheet 19.10 19.10 Add: Amount additions during the year - 19.10 - 19.10

Capital Grants As per last Balance Sheet 89.89 99.17 Add: Received during the year 478.13 400.81 Less: Utilised/repaid during the year 509.30 58.72 410.09 89.89

Corporate Social Responsibility Reserve As per last Balance Sheet 58.95 61.72 Add: Addition during the year 83.79 84.01 Less: Utilised during the year 125.70 17.04 86.78 58.95

Airport Development Reserve As per last Balance Sheet 6,276.37 5,735.81 Add: Appropriation from Prot and Loss 427.46 6,703.83 540.56 6,276.37

General Reserve As per last Balance Sheet 7,375.47 8,354.27 Less: Appropriation for Special Dividend and tax thereon - 1,484.50 Less: Appropriation for Tax on Special Dividend - 305.14 Add: Appropriation from Prot and Loss 641.19 8,016.66 810.84 7,375.47

123 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 (` In Crores) Particulars FY 2019-20 FY 2018-19

Prot & Loss Account

Prot for the Year 1,985.09 2,271.44

Less: Appropriations

Interim Dividend Paid 680.00 725.00

Tax on Interim Dividend paid 139.78 149.03

Proposed Final Dividend 138.57 40.46

Tax on Proposed Final Dividend - 8.32

Corporate Social Responsibility Reserve (41.91) (2.77)

Airport Development Reserve 427.46 540.56

General Reserve 641.19 - 810.84 -

Total Reserves & Surplus 14,815.35 13,819.78

4. LONG TERM BORROWINGS (` In Crores)

Particulars Long Term Current Maturities*

31.03.2020 31.03.2019 31.03.2020 31.03.2019

Unsecured Loans

Loan from Foreign Financial Institutions- Guaranteed by GOI A 37.48 37.16 2.85 2.62

Lease Obligations B 54.08 - 17.02 -

Total 91.56 37.16 19.87 2.62

*Current Maturities are carried to Note No. 5: Other Current Liabilities

A. Loans from Foreign Financial Institutions: Guaranteed by Government of India

Foreign Financial Total Loan Amount Interest Rate Repayment Schedule Loan End Institution Oustanding as on Date 31st March 2020 Export USD 45,37,926.60 Interest Free Half-Yearly Instalments of USD 20.12.2044 Development 90758.54 each payable on 20th Canada, Canada June & 20th December every year

Instituto De Credito USD 7,75,353.35 0.25% p.a. payable on Half-Yearly Instalments of USD 21.03.2024 Ofcial (ICO), 21st March & 21st 96919.15 each payable on 21st Spain September every year March & 21st September every year

Total Foreign Loan Outstanding balance as on 31st March 2020 is USD 53,13,279.95 out of which current maturities portion amounts to USD 3,75,355.38 and the long term loan portion thereof is USD 49,37,924.57 only.

B. Lease Obligations The Lease Obligations are against Assets acquired on lease. The Carrying value (Gross block) of the same as on 31.03.2020 is ₹ 105.70 Crores . For details refer note no.47(ix).

124 Notes to Financial Statements for the year ended March 31, 2020

5. OTHER LIABILITES (` In Crores) Particulars Non-Current Current

FY 2019-20 FY 2018-19 FY 2019-20 FY 2018-19

Deposits 881.29 736.04 206.29 197.92

Current Maturity of Long Term Borrowings - - 2.85 2.62

Current Maturity of Lease Obligations - - 17.02 -

Advances from Clients - - 80.54 73.92

Creditors-Capital 2.67 4.07 548.28 628.11

Other Liabilities - - 2,329.99 2,331.61

Total 883.96 740.11 3,184.97 3,234.18

6. PROVISIONS (` In Crores)

Particulars Long Term Short Term

FY 2019-20 FY 2018-19 FY 2019-20 FY 2018-19

Provision For Employees Retirement Benets and PRP** 2,319.98 1,918.22 777.69 605.75

Provision for Taxation (Gross) 4,861.00 5,748.25 4,977.67 2,914.42

Corporate Dividend Tax - - - 8.32

Proposed Dividend - - 138.57 40.46

Other Provisions 409.73 409.77 - -

Total 7,590.71 8,076.24 5,893.93 3,568.95

** Disclosure as per AS 15 on 'Employee benet has been made in Note No. 32.

7. TRADE PAYABLES (` In Crores) Particulars FY 2019-20 FY 2018-19

For Goods and Services 404.32 527.56

Total 404.32 527.56

125 Annual Report 2019-20 is is its as - - aw the the AAI any that and L over land in from State far to under to Govt., of 0.90 NHAI of which is meeting from Mumbai so 56.23 91.87 IAA land paid noted 292.35 194.36 268.64 taken As on to State of is 1,133.98 3,484.27 2,415.75 7,938.34 acres 7,938.34 64 crore for and not over National subject it acres ` done In Crores) collected 31.03.2019 174th has adjacent like ` 40 land sqm ( approx.) its

not and of have AAI taken in acres) under: land , being 96.56 Ranchi 30.07.2012, said Government. 28.02.2020, Net Block is as 0.88 0.44 of acres was on

on 75.38 87.03 89.42 is the Agencies NHAI other 6673.70 294.34 200.95 390.03 board State Government, land of wherever As on of AAI swapping over 1,342.74 3,205.42 2,754.33 8,440.96 held acres Airport, land the the AAI by 31.03.2020 Maharashtra AAI Accordingly said of State various by 472.70 crore and for (999.823 of of ` leasing by taking the - respect 56.78 Neither reminders, AAI Munda meeting of from in (DIAPL)-(4799.09 sought regard, land details the AAI. to 0.36 3.08 and land Govt. favour the of updated 29.70 Bisa cost this that Ltd. The 345.61 246.89 764.54 297.59 in in lease places. been future. with AAI be at In

13.03.2019. 3,646.91 6,324.90 6,990.96 otal Upto is in part AAI of repeated on T to 17,002.02 measuring Pvt. 18,650.54 31.03.2020 has a to approved these NHAI market involving deeds yet AAI land roject NH-45. land dated is P after - - - - acres by 13,29,401/- of Government the has

by title both Airport ` MoCA on 2017-18. above, of at 3.21 6,29 3.82 4.81 of of AAI. letter even Delhi, informed 16.85 15.39 State acres litigation taken maintenance the records 120.24 152.92 Board 170.60 by agreed 106.76 ransfer year above, land of Sale/ T to Airport 40 its vide of of the been Adjustment (b) of AAI the of and land transfer

been paid to Development due Airport, approval Out over - has international has MoCA it IGI Authorities, the land, Chennai land during including compensation transfer Road regards 0.02 0.04 by At

of Airport already of 30.45 29.70 24.94 73.53 32.49 Delhi taking assets. discussed necessary As 292.11 638.57 697.29 for which rovided

during for the possession the year lease, P viz 1,582.59 As 1,819.12

out front 29.02.2048. Revenue crores Dahisar Dahisar pay land Bhopal in - - to expenses 2 decided. regards at by to Mutation -term of ` 23.04.2019,

at the its Physical However Approval NHAI. be As 0.34 3.04 carved at long Jharkhand to

communicated Shed by AAI. from Flyover ready 321.45 225.77 706.40 269.91 land a 10.06.2020. dated of Companies AAI. of is yet is of 3,358.01 5,703.18 6,413.92 road on was includes 15,572.35 over of radesh. 17,002.02 AAI approved Cabinet decision. Depreciation, Amortisation and Impairment Loss apart possession P 01.03.2018 Metro are rovided upto letter 31.03.2019 the as of case P Govt. excluding as name of NHAI enture V AAI which which taken AAI name vide from said the State acres by Cabinet rates lease received the physical Madhya demand and in construction Joint the construct been in 1.24 3.52 of years the AAI. the

has any the term the NHAI will to to 294.34 546.57 105.07 333.92 387.01 has 30 accordingly As on on thereafter despite construction further AAI 106.76 to for Since, done 4,989.65 9,530.32 9,745.29 1,154.57

, A of 31.03.2020 Defence 08.03.2019 24,940.37 27,091.49 long for given 31.03.2020 from and and any of given on road over over India airport on been not as years. of MMRD of Government dated - - - - period acre Jharkhand acceptable However NHAI acres also raised a 30 by by has of received Ministry Authority land per 4.11 5.80 not as Airport mutated/transferred handed for ucknow India not handing AAI. with 1.5 21.84 53.30 15.33 25.54 of L is AAI the 161.69 216.21 287.61 to of been ransfers/ Govt. lakh Authority for has another been and released near construction Airport over has by mutation Mumbai State 8.00 has MoD AAI Academy (approx.) for ` between

been measuring Development Highway by and Adjustments/ and 08.04.2019 @ Delhi CSI, bypass and crores land NHAI. handed compensation Government at possession/utilized acres on 09.11.2017 NHAI eclassications/Sales of AAI Deletions/T AAI on R paid be Road) of Aviation airports New extendable the by of on said payment 12.75 to held

with Regional ucknow received National 71% Gross Block in - ` L acres) is IGI, the been to has raised , of be of held was A would pay the difference cost of land as per stamp duty reckoner rate based on 2016-17, which worked out to 14.06.2019 Indian further various 1.99 0.48

to be progress. and Metro to nor has approval 60089.089 46.08 56.03 31.03 is on at over which remain Approach already 519.50 396.17 105.07 205.07 occupied in of yet will possession is the 1,077.31 1,833.76 Additions 2,438.73 will is amount However in land land meeting place meeting which land leased land is Airport a has of - Approximately Mumbai handed

(Airport land construction on be for taken demand Gorai land same. 177th 1.24 3.04 also for the amount was with ownership 1273.10sqm

Government 3881.40sqm - of land (MIAPL)-(1963.249 compensation - of not its shall regard, 292.35 515.81 282.00 975.04 361.78 the transfer The Mumbai As on the The This sqm sqm in 4,491.99 9,187.45 8,829.67 land encroachment the airports. of AAI State Ltd. for has this compensation 23,322.82 23.01.2020, 24,940.37 01.04.2019 of Village A with CSI, of acres In respect AAI.

Pvt on the . Notes to Financial Statements for the year ended March 31, 2020 accordingly from of in (MoD). NHAI under by encroachments compensation ownership far various cantonment Acres 7.64 6673.70 5154.50 by held of MMRD vested and approved - at land so was conditions land the the 40 Airport is land equipments. above, acceptance , Apron of ossession over with has P of Mumbai Defence the (a) and that ofce , pay ixtures which of meeting AAI’s removal acres to easehold allavavam and measuring measuring measuring axiway taken P Meenambakkam -L as Board Authority terms swapped awaited. land regard , T Mumbai Notes:- easehold ermissive and and and MoD International encroachment well Ministry Collector ready compensation land sought condition Government 96.56 the held on 23.03.2017 had resolved that MMRD relocation University at 192nd still The The L (a) (b) As L P AAI AAI L ANGIBLE ASSETS T ehicles articulars revious year urniture & F urther and and-L easehold otal 8. F (I) P

L L Runway Buildings Buildings Boundary Plant & Equipment Plant & Equipment (ii) L F V Ofce Appliances T P (iii)

(iv) (v) (vi) (vii) (viii)

126 - to the has has 0.02

In block

` crore), crores,

Cargo - regard 8.44 8.86 8.86 8.44 Board 8.86 8.44 Board As on As on As on AAI 2.73 0.55 retrospective

3,174.62 3,174.62 3,174.62 block (Gross with ` ` In Crores) In Crores) AAI In Crores) AAI 31.03.2019 31.03.2019 to

- 31.03.2019

` ` ` awaited. the ( ( ( Net Block block still (Gross sought Net Block from reehold years). is Airport. Net Block -F Boundary

30 2019-20. been IGI 3.84 3.84 (Gross transferred As on As on As on 22.07 22.07 reehold FY which at 4,845.54 4,845.54 effective has -F in 31.03.2020 31.03.2020 crores, 31.03.2020 Building be another been Murti India by taxes ehicle 1.66 will V has Equipment of Shiv Rs.

& includes ------26.06.2019 lease 97.94 89.73 97.94 near on use. Crore), otal Upto otal Upto otal Upto the Plant T T T applicable Crores) which 31.03.2020 31.03.2020 31.03.2020 (extendable reehold F loop 0.37 and

active Government plus ` sought 0.93 crore),

– of years crores) ` from

- - 30 - - - - value change been 0.39 Builiding initiated -

1.38 0.82 1.38 block of ransfer ransfer ` ransfer - of of Sale/ of Sale/ T T of Sale/ 31.67 T

has book retired approval inter ` Adjustment Adjustment Adjustment being at block period (Gross is and India a been respect Ltd. lease, depreciation of Amortisation

in - - for - - - - Amortisation Board (Gross 9.59 6.05 9.59 urniture rovided rovided during during rovided during -term the year the year F the year P P P depreciation 2009 AAI Amortisation Company crore)have Expressway long of FY13-14 a Building in crore), Government 0.76 accumulated

August, ` of

-

------Being Services Dwarka approval 39.57 and accumulated

construction. Airport 89.73 84.50 of 89.73 includes ` - block Allied rovided upto rovided upto rovided upto 31.03.2019 31.03.2019 06/07th 31.03.2019 and P P period. . P & approval block which seeking Crores .e.f facilitate (Gross w said of to crores land, construction ogistics the Hydredabad 0.93

L (Gross crores) of

` forward. - for for order MIHAN 3.84 8.44 3.84 and process 60.99 As on As on As on 98.59

120.01 in 120.01 ` to 3.70 2019-20. 4,845.54 3,174.62 Appliances AAI 4,845.54

- Cargo ` The 31.03.2020 31.03.2020 31.03.2020 block NHAI reehold carried transfer FY -F acres and to AAI block in and leased Ofce to been Bangalore (Gross

at and 28.65

has taxes identied. MIHAN crores (Gross stands permanent Equipment ransfers/ ransfers/ transferred ransfers/ & crore)

same 3.72 transferred stands Crores ` 7.53 1.38 1.51 0.02 7.53 1.38 Crores - therein being the between identied measuring Plant , 0.49

1,626.08 1,048.14 Ltd. 1,626.08 been ` applicable - 0.00 Adjustments/ Adjustments/

and Adjustments/ block ` land Co. 29.32 Assets

losses signed have ` permanently crore), eclassications/Sales eclassications/Sales to eclassications/Sales Deletions/T Deletions/T plus Deletions/T

block for R R R However be ” to crores xed Gross Block (Gross to 0.24 Gross Block crore)

being is value ` AAICLAS (Gross - 5.43 is

NHAI. ` to

crores 2.19 to

to deed impairement ` 2.93 8.17 6.46 2.93 block permission book - 22.80 22.80 alongwith amounting amounting awaited. 3,297.00 2,650.11 25.04) ehicles Additions Additions 3,297.00 Additions at 0.02 land leased

V Gross Block lease ` + still block of a be (Gross totalling Ltd. is assets includes assets to “working all (approx.) and Crore), Assets

(28.65 (Gross which 8.44 2.00 transfer 8.44 likely As on As on As on 98.59 91.93 98.59 given reehold otal acres 0.03 tangible crores T

3,174.62 1,572.65 -F 3,174.62 ` acres are 01.04.2019 01.04.2019 01.04.2019 Company said – intangible lease, proposal been Depreciation 3.72

-in Progress the ` the of Appliances Assets, related which has 53.69 1210.42 block Boundary ork rogress related Services P proposed Ofce NHAI above balance (Gross pockets -in the approved approved crore), Equipment operation the and Allied of measuring measuring & ear ork of land & W ANGIBLE ASSETS operation 18.60 urniture and and period. already meantime, already terms Plant F ` Crore) The L L Opening Out Cargo Intangible Assets Under Development Capital W INT articulars articulars revious year revious Y articulars revious year ogistics otal otal otal (ix) 9. 11. P P

(x)

Intangible Assets under Development Computer Software T T P P Cargo L (xi) (xii) (xiii) (xiv)

10. P

Capital T P

127 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

12. NON-CURRENT INVESTMENTS (` In Crores) Particulars Face Value Number of Equity FY 2019-20 FY 2018-19 per Equity Shares as on Share (`) March 31st 2020 (Long Term Investments (at cost)) Unquoted Trade Investments In fully paid up Equity shares of Joint Venture Companies - Hyderabad International Airport Ltd. (HIAL) 10/- 4,91,40,000 49.14 49.14 Bangalore International Airport Ltd. (BIAL) 10/- 5,49,97,800 50.00 50.00 Delhi International Airport Pvt. Ltd. (DIAL) 10/- 63,70,00,000 637.00 637.00 Mumbai International Airport Pvt. Ltd. (MIAL) 10/- 31,20,00,000 312.00 312.00 National Flying Training Institute Private Ltd. (Gondia) 10/- 3,81,11,795 38.11 38.11 Mihan India Pvt. Ltd (MIHAN) 10/- 98,00,000 9.80 9.80 Kannur International Airport Private Ltd. 100/- 1,00,00,000 100.00 100.00 AAI Cargo Logistics & Allied Services Company Ltd. 10/- 2,50,00,000 25.00 25.00 Dholera International Airport Co.Ltd. 10/- 7,72,70,000 77.27 - Dhalbhumgarh Airport Ltd 10/- 25,50,000 2.55 - Deoghar Airport Ltd 10/- 25,50,000 2.55 - Digi Yatra Foundation A 10/- 260 - - Chandigarh International Airport Pvt. Ltd. 10/- 49,44,19,295 494.42 494.42 Total - Equity Investments 1,797.84 1,715.47 Note:- A. AAI has subscribed to 260 Equity Shares of ₹ 10 each in Digi Yatra Foundation during FY 2018-19.

13. DEFERRED TAX ASSETS In compliance of Accounting Standard – 22 on “Accounting for Taxes on Income’’, the item wise details of Deferred Tax Liability (net) are as under:- (` In Crores) Particulars As on Provided during Balance as on 01.04.2019 the year 31st March 2020 Difference between book and tax depreciation 583.47 (95.21) 488.26 Provision for Bad & Doubtful Debts 1,130.53 (327.68) 802.85 Municipal taxes 5.04 (1.94) 3.10 Leave Encashment/Retired Employee Medical Benet Scheme/ Pension Schemes 1,034.89 (194.60) 840.29 Provision for resettlement of retired employees 30.11 (7.55) 22.56 Welfare (Benevolent Fund) 80.83 (6.92) 73.91 Upfront fees from JVCs 55.91 (18.25) 37.66 Gratuity 33.84 (3.82) 30.02

Deferred Tax Assets (Net) 2,954.62 (655.97) 2,298.65

128 Notes to Financial Statements for the year ended March 31, 2020

14. LOANS AND ADVANCES (` In Crores)

Particulars Long Term Short Term

FY 2019-20 FY 2018-19 FY 2019-20 FY 2018-19

Advances for Investments-JVCs 86.72 163.99 - - Advances for Capital Expenditure Secured, Considered Good 611.19 467.95 - - Advance Taxes & TDS Tax deducted at Source and Advance Income Tax 5,803.77 6,293.75 4,944.55 3,076.15 Advance Tax-Fringe Benet Taxes - - 3.94 3.94 Goods & services Tax - - 304.09 119.43 Balances with Customs/Excise/Service Tax Authorities 68.31 68.31 67.71 74.81 Prepaid Expenses - - 48.42 44.96 Deposits Unsecured Considered Good 169.28 170.84 - - Employee Loans Secured, Considered Good 398.77 356.16 92.14 72.86 Advances to Suppliers/Works Unsecured Considered Good - - 21.51 10.12 Amount Receivable -RCS-MOCA - - 11.88 8.09 Others Unsecured Considered Good 0.11 0.11 55.88 74.17 Total 7,138.15 7,521.11 5,550.12 3,484.53

15. INVENTORIES (` In Crores) Particulars FY 2019-20 FY 2018-19 Stores and Spares 70.24 84.74 Total 70.24 84.74

16. TRADE RECEIVABLES (` In Crores) Particulars FY 2019-20 FY 2018-19 Over Six months: 3,738.48 3,390.57 Within Six months: 928.05 4,666.53 1,008.85 4,399.42 Less: Provision for Bad and Doubtful Debts (3189.72) (3,235.26) Total 1,476.81 1,164.16 Further Notes: (a) Secured, Considered Good 499.11 765.87 (b) Unsecured, Considered Good 977.70 398.29 (c) Doubtful 3,189.72 3,235.26

129 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

17. Cash and Cash Equivalents (` In Crores) Particulars FY 2019-20 FY 2018-19 Cash and Cash Equivalents (CFS) Balances with Banks 425.91 539.65 Cheques, Drafts on hand 0.55 0.05 Cash on hand 0.07 0.10 Remittance in transit - 0.06 Imprest 1.11 0.92 427.64 540.78 Other Bank Balances Bank Deposits 856.49 856.49 1,321.00 1,321.00 Total 1,284.13 1,861.78

18. Other Current Assets (` In Crores) Particulars FY 2019-20 Y 2018-19 Unbilled Revenue 283.04 599.53 Dues from JVCs/Subsidiaries 262.08 101.19 Interest Accrued on Investments/ Deposits 47.82 43.08 Losses Pending Investigation 0.07 0.07 Total 593.01 743.87

19. AIRPORT NAVIGATIONAL SERVICES (` In Crores) Particulars FY 2019-20 FY 2018-19 Route Navigation Facility Charges (RNFC) 3,082.99 3,177.66 Terminal Navigational Landing Charges (TNLC) 496.70 518.62 Other CNS/ATM Service Revenue 13.27 5.90 Total 3,592.96 3,702.18

20. AIRPORT SERVICES (` In Crores) Particulars FY 2019-20 FY 2018-19 Landing, Parking & Housing (LPH) 961.89 951.99 Passenger Service Fees:- - Facilitation 164.92 231.42 - Security 243.26 408.18 1,007.65 1,239.07 User Development Fees - International PAX 436.40 486.94 - Domestic PAX 1,506.36 1,942.76 1,361.91 1,848.85 Oil Throughput Revenue 98.97 134.80 Ground Handling 168.72 182.03 Extension of Service Hours 13.45 12.55 Royalty on CUTE Charges 124.09 122.30 Total 3,718.05 4,491.59

130 Notes to Financial Statements for the year ended March 31, 2020

21. NON-AERONAUTICAL AIRPORT SERVICES (` In Crores) Particulars FY 2019-20 FY 2018-19 Rent & Services 591.70 702.89 Trading Concessions 1,099.24 936.67 Car Parking 99.18 119.58 Porterage 0.47 0.38 Admission Fees/Commercial Passes 19.33 32.43 Restrooms 3.08 2.93 NOC-Height Clearance 15.65 19.86 Consultancy Services 41.85 11.71 Miscellaneous Non-Aeronautical Airport Services 17.23 16.40 Total 1,887.74 1,842.85

22. CARGO REVENUE (` In Crores) Particulars FY 2019-20 FY 2018-19 Cargo Revenue - - Total - -

23. AIRPORT LEASE REVENUE (` In Crores) Particulars FY 2019-20 FY 2018-19 Upfront Fees 10.37 10.37 Annual Fees:- - DIAL 1,702.00 1,591.25 - MIAL 1,350.64 3,052.64 1,448.45 3,039.70 Total 3,063.01 3,050.07

24. OTHER INCOME (` In Crores) Particulars FY 2019-20 FY 2018-19 Interest Income 169.43 434.23 Dividend Received from JVC 12.29 19.66 Prot on Sale of Fixed Assets 4.06 10.23 Income from Training Institutes 2.79 1.26 Miscellaneous Income 357.32 544.63 Interest and Penalties 27.91 28.11 Employee Related Recoveries 1.90 8.15 Total 575.69 1,046.27

131 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

25. EMPLOYEE BENEFIT EXPENSES (` In Crores) Particulars FY 2019-20 FY 2018-19

Pay & Allowances 2,731.23 2,249.31

Other Staff Cost 1,462.33 1,732.07

Contribution to Provident & Other Funds 329.42 1,228.39

Less Recovery of Operational Support Cost - JVC / Subsidiaries (41.74) (50.79)

Total 4,481.24 5,158.98

26. OPERATING EXPENSES (` In Crores) Particulars FY 2019-20 FY 2018-19

Rent, Rates & Taxes 6.82 5.19

Municipal Taxes 28.45 28.36

Insurance 32.03 11.31

Advertisement & Publicity 10.34 15.31

Repairs and Maintenance:-

Civil Works 265.55 261.12

Electrical Works 313.01 284.41

Vehicles 33.96 18.66

Equipment & Furniture 8.62 2.24

Electronics 175.18 219.83

IT Infrastructure 100.28 896.59 82.70 868.96

Consumption of Stores and Spares 48.70 47.72

Electricity & Water Charges 427.25 416.42

Meteorological Service Charges 145.53 137.78

Upkeep Expenses 148.98 125.51

Horticulture Expenses 6.97 6.12

Total 1,751.64 1,662.68

132 Notes to Financial Statements for the year ended March 31, 2020

27. ADMINISTRATIVE & OTHER EXPENSES (` In Crores) Particulars FY 2019-20 FY 2018-19 Legal Expenses 13.69 15.68 Consultancy Services 17.46 28.02 Freight Charges 0.87 1.04 Postage & Courier Charges 0.93 0.88 Telephone, Fax and Internet Charges 6.38 6.29 Printing & Stationery 8.77 10.29 Lease Rental 5.95 19.80 Training Expenses 13.99 13.94 Travelling Expenses 105.53 98.47 Research & Development - 0.70 Provision for Bad and Doubtful Debts (45.53) 188.05 Prior Period Adjustments (net) 45.38 28.32 Expense on Rajya Bhasha 1.70 1.66 Regional Air Connectivity-Expenses 0.03 - Grant to Training Centers 4.00 15.01 Audit Fees for CAG Statutory Audit 1.00 4.00 Fees for other Services-Audit 0.07 1.07 0.19 4.19 Hire Charges 69.85 51.82 Corporate Social Responsibility Expenses 125.70 86.78 Watch & Ward/Security Contract 76.58 79.37 Collection Charges 72.91 71.08 Guarantee Fees 2.08 2.11 Arbitration Expenses 1.10 8.96 Miscellaneous 97.90 91.22 Total 626.34 823.68

28. FINANCE COSTS (` In Crores) Particulars FY 2019-20 FY 2018-19 Interest on Borrowings 0.02 0.02 Applicable Net Loss on Foreign Currency Translation 3.25 2.52 Interest on Lease Obligations 6.77 - Other Financing Charges (5.43) 3.96 Total 4.61 6.50

133 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

29. DEPRECIATION AND AMORTIZATION EXPENSES (` In Crores) Particulars FY 2019-20 FY 2018-19

Depreciation/amortisation on Tangible Assets 1,744.99 1,558.84

Amortisation of Intangible Assets 6.26 6.05

Total 1,751.25 1,564.89

30. SECURITY EXPENSES (` In Crores) Particulars FY 2019-20 FY 2018-19

Aviation Security Force-CISF 390.81 1,188.93

Other Security Agencies incl. State Police 14.49 43.31

Total 405.30 1,232.24

31. INCOME / (EXPENSES) PERTAINING TO PRIOR YEARS (NET) (` In Crores) Particulars FY 2019-20 FY 2018-19

A. EXPENDITURE

Employee Benets Expenses (1.05) (0.22)

Operating Expenses (26.94) (9.03)

Administrative and Other Expenses 9.82 (0.52)

Depreciation and Amortization Expenses 77.45 23.76

Security Expenses (31.51) 6.33

Total 27.78 20.32

B. INCOME

Airport Navigational Services 1.27 0.34

Airport Services 0.31 1.45

Non-Aeronautical Airport Services 3.30 3.80

Cargo Revenue 0.06 -

Airport Lease Revenue - 1.21

Other Income 12.65 1.20

17.60 8.00

Total 45.38 28.32

134 Notes to Financial Statements for the year ended March 31, 2020 32. Disclosure under AS 15 (Revised) on (C) Gratuity: Gratuity is paid at 15 days “Employee Benets” salary for every completed year of service Dened Contribution Plan: subject to rendering of continuous service of not less than 5 years. The (A) AAI pays xed contribution to Provident ceiling is ` 20 lakhs w.e.f. 01.01.2017 Fund at predetermined rate to a separate (` 10 lakhs upto 31.12.2016). The trust, which invests the funds in permitted liability for the same is recognized in securities. The contribution to the fund Prot & Loss Account on the basis of for the period is recognized as expense Actuarial Valuation on annual basis. and is charged to the P& L Account. (D) Benevolent Fund Scheme: As per the (B) Consequent to the approval of MoCA for Revised AAI Employees Benevolent Fund “AAI Employees Dened Contribution Scheme effective from 01.01.2018, the Pension Scheme” and after formation of contribution and the entitlement benet “AAI Employees Dened Contribution shall be as under Pension Trust” during 2018-19, AAI has a. The employee shall contribute ` 250/- started paying contribution at pre- per month w.e.f. 01.01.2018 determined rate to the Trust in respect of b. Monthly entitlement on account of eligible employees for the period superannuation, compulsory/voluntary effective from 01.01.2007. The retirement and death shall be paid as contributions to the funds and liability under over a period of eight (8) years created is charged to the P&L Account. (I) `7,000/- per month to the Dened Benet Plan: employees who have made (A) Leave: AAI provides for earned leave enhanced contribution of ` 250/- benet and half pay leave to the upto two (2) years before employees which accrue annually at 30 separation. days and 20 days respectively. Earned (ii) `10,000/- per month to the leave is encashable during service subject employees who have made to keeping residual leave of 30 days at the enhanced contribution of ` 250/- time of encashment and a maximum of for more than two (2) years but upto 300 days on superannuation/resignation ve (5) years before separation. or death. Unutilized Half pay leave is (iii) `12,000/- per month to the encashable subject to maximum of 240 employees who have made days on the date of superannuation enhanced contribution of ` 250/- /resignation or death. The liability for the for more than ve (5) years before same is recognized on the basis of separation. actuarial valuation. The liability for the same is recognized on the basis of actuarial valuation. (B) Post Retirement Medical Facility: The retired employee and the spouse are (E) Post retirement settlement benets: At provided medical facilities on payment the time of superannuation, employees of one time prescribed contribution (and dependents) are entitled to settle at place of their choice in India. They are subject to rendering a minimum of 15 eligible for transfer traveling allowance years continuous service. The scheme is etc. as applicable to serving employee on voluntary and recognized in Prot & Loss transfer. The liability for the same is A/c on the basis of actuarial valuation on recognized in Prot & Loss A/c on the basis annual basis. of actuarial valuation on annual basis.

135 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 i) Expenses recognized in CWIP/Statement of Prot & Loss Account (` In Crores) Particulars Gratuity Medical Post Retirement Benets Settlement Benets YEAR 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 Current Service Cost 27.79 29.89 27.11 24.04 15.49 16.79 Interest cost on benet obligation 7.52 27.27 65.38 48.96 6.69 6.85 Expected return on plan assets ------Net actuarial (gain)/loss recognized in the year 85.28 87.53 255.49 206.62 (16.53) (22.91) Past service cost- vested benet recognized during the period ------Expenses for the year 120.59 144.69 347.98 279.62 5.65 0.73

ii) The amount recognized in the Balance Sheet (` In Crores) Particulars Gratuity Medical Post Retirement Benets Settlement Benets YEAR 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 Opening Net Liability 96.84 346.06 840.33 630.88 86.16 86.88 Expense as above 120.59 144.69 347.98 279.62 5.65 0.73 Employer’s Contribution/Benets paid (0.11) (27.09) (87.72) (70.17) (2.17) (1.45) Employer’s Contribution (98.04) (366.82) - - - - Net asset/(liability) recognized in the Balance Sheet 119.28 96.84 1,100.59 840.33 89.64 86.16

iii) Changes in the present value of the dened benet obligations: (` In Crores) Particulars Gratuity** Medical Post Retirement Benets Settlement Benets YEAR 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 Present value of obligation as on beginning 1,332.32 1,272.57 840.33 630.88 86.16 86.88 Interest cost 103.39 100.28 65.38 48.96 6.69 6.85 Current Service Cost 27.79 29.89 27.11 24.04 15.49 16.79 Past service cost- vested benet recognized during the period ------Benets paid directly by employer (0.11) (27.09) (87.72) (70.17) (2.17) (1.45) Benets paid from Fund (146.27) (108.44) - - - - Net actuarial (gain)/loss on obligation 79.38 65.11 255.49 206.62 (16.53) (22.91) Present value of the dened benet obligation as at the end of the current period 1,396.50 1,332.32 1,100.59 840.33 89.64 86.16 ** including funds available with insurance companies.

136 Notes to Financial Statements for the year ended March 31, 2020 iv) Changes in the fair value of plan assets: (` In Crores) Particulars Gratuity

YEAR FY 2019-20 FY 2018-19

Fair value of plan assets as beginning of year 1,235.48 926.51

Expected return on plan assets 95.87 73.01

Contributions by employer 98.04 366.82

Benet paid (146.27) (108.44)

Actuarial gain / (loss) (5.90) (22.42)

Fair value of plan assets at close of year 1,277.22 1,235.48 v) Details of Plan Assets (Gratuity) The details of the plan assets at cost as on 31st March 2020 are as follows: (` In Crores) Description 2019-20 2018-19

Government of India securities - -

Corporate Bonds - -

Special Deposit schemes - -

Cash And Cash Equivalents - 3.54

Insurer managed funds 1,273.28 1,231.94

Others 3.94 -

TOTAL 1,277.22 1,235.48 vi) Actuarial Assumptions Principal assumptions used for actuarial valuation are: Method used – Projected unit credit (PUC) Discount rate (Gratuity/Leave/Resettlement) – 6.87% (Previous year 7.76 %) Discount rate (Post Retirement Medical Benets) – 6.81% (Previous year 7.78 %) Expected rate of return on assets (Gratuity only) - 6.87% (Previous year 7.76%) Future salary increase - 7 % (Previous year 7%) Attrition rate – 2 % (Previous year 2%) The management has relied on the overall actuarial valuation conducted by the certied Actuary.

137 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

33. Disclosure under Accounting Standard 18 on “Related Party Disclosures “ I) Related parties:

Ownership Interest Name of the Subsidiaries 31.03.2020 31.03.2019

1. Chandigarh International Airport Ltd. (CHIAL) 51% 51%

2. AAI Cargo Logistics & Allied Services Company Ltd. (AAICLASCL) 100% 100%

3. Dholera International Airport Company Ltd. 51% 51%

4. Deoghar Airport Limited 51% -

5. Dhalbhumgarh Airport Limited 51% -

Ownership Interest Name of the Joint Ventures 31.03.2020 31.03.2019

1. Delhi International Airport Pvt. Ltd (DIAPL) 26% 26%

2. Mumbai International Airport Pvt. Ltd (MIAPL) 26% 26%

3. GMR Hyderabad International Airport Pvt. Ltd (GHIAL) (CAP: `50 crores) 13% 13%

4. Bangalore International Airport Pvt. Ltd (BIAL) (CAP: `50 crores) 13% 13%

5. National Flying Training Institute Private Ltd., Gondia (NFTIPL) 46% 46%

6. MIHAN India Pvt. Ltd., Nagpur 49% 49%

7. Kannur International Airport Ltd. (KIAL) (CAP: `100 crores) 7.47% 8.62%

8. Indian Aviation Academy Autonomous body

9. DIGI Yatra Foundation 26% 26%

ii) Key Management Personnel • Dr. Guruprasad Mohapatra, IAS. Upto 31.07.2019 • Shri Arvind Singh, IAS w.e.f. 06.11.2019 • Shri. S. Suresh, Member (Finance) Upto 25.09.2019 • Shri Anuj Aggarwal, Member (Human Resources) • Shri I N Murthy, Member (Operations) • Shri A.K. Pathak, Member (Planning) • Shri Vineet Gulati, Member (ANS) • Shri Pankaj Jain, Executive Director (Finance) • Ms. R. Tulasi Mahalakshmi, Company Secretary

138 Notes to Financial Statements for the year ended March 31, 2020 iii) Details of transactions with the related parties: (` In Crores) Particulars FY 2019-20 FY 2018-19 Annual Fee from JVCs: DIAPL 1,702.00 1,591.25 MIAPL 1,350.64 1,448.45 Addition to Equity Shares holding Dholera International Airport Company Ltd. 77.27 - Deoghar Airport Limited 2.55 - Dhalbhumgarh Airport Limited 2.55 - Operation Support Cost/retirement compensation received : DIAPL 1.36 16.48 MIAPL 1.47 17.89 Other receipts DIAPL 3.93 2.94 MIAPL 1.96 - Dividend Received from GHIAL 12.29 19.66 AAICLAS 18.28 - AMOUNT RECEIVABLE/PAYABLE: a. MIHAN INDIA LTD. (MIL) Operation support cost receivable 5.77 6.67 Amount Payable - - b. CHIAL Amount receivable 0.87 0.91 c. AAICLASCL Amount payable 35.35 - Amount receivable 255.56 317.8 Advance for Investment as on closing date MIHAN INDIA LTD. (MIL) 86.72 86.72 Dholera International Airport - 77.27 Remuneration to Key Management Personnel 3.51 4.74

139 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 iv) Corporatization of AAI Cargo Operations AAICLAS Co. Ltd. to do the Cargo Business. The As approved by AAI Board in its 168th Board period of concession to be 30 years and Meeting held on 14/03/2016 vide agenda AAICLAS Co. Ltd. shall pay a concession fee item no.: 168.6, AAI Cargo Logistics & Allied @ 30% of the actual Gross Revenue to AAI. Services Company Ltd. (100% subsidiary of Accordingly as per the data provided by AAI) has been incorporated on 11th August, AAICLAS Co. Ltd, AAI has accounted an amount 2016 under the companies Act, 2013 for of `123.37 crores as Concession Fee receivable cargo and allied operations. from AAICLAS Ltd. relating to the FY 2019-20 in As AAI continue to receive some Revenue its annual accounts for the FY 2019-20. related to Cargo Segment and incurred 34.Formation of National Aviation Security expenditure on Cargo Segment relating to Fee Trust employee cost and other operating expenditure during 2019-20 and the same In accordance with MoCA letter no: have been accounted for as Payable AV.13024/659/2015-AS dated 29/06/2019, to/Receivable from AAICLASCL in the book of a trust has been formed in the name of accounts as on 31.03.2020. The details in this “National Aviation Security Fee Trust” (NASFT) regard are as under: to operate and manage Aviation Security Fee ` in crores funds. The said Trust has been entrusted with (I) Cargo Revenue 35.35 the role of collection of Aviation Security Fees (II) Cargo Expenditure 132.19 as well as payment related to Aviation Security Expenses w.e.f 01.07.2019 on PAN India basis Amount receivable from AAICLAS 96.84 in respect of all Airport Operators (AAI & Other Co. Ltd. as on 31.03.2020 Airport Operators). During the F.Y. 2019-20, the Cargo Segment Accordingly, NASFT has been registered vide Assets which are appearing in AAI Books Tr u s t D e e d d a t e d 2 9 . 0 6 . 2 0 1 9 a n d relating to 2019-20) as per details note below representatives of MoCA and Airports have been transferred to AAICLASCL Books Authority of India have been taken as Ex- through transfer and the same is receivable Ofcio Trustees on Board of Trustees of the from AAICLASCL. NASFT. Consequent to the formation of NASFT Particulars As on 31.03.2020 w.e.f. 01.07.2019, AAI has accounted the PSF ` ( In Crores) (SC)/ASF Revenue & Aviation Security Expenses Gross block of cargo 61.90 only for the period from 01.04.2019 to segment assets (2019-20) 30.06.2019 in the Accounts for the FY 2019- Accumulated Depreciation 32.58 20. The Comparative analysis in this regard for 01.04.2019 the ASF Revenue/Security Expenditure Net block of cargo 29.32 accounted in FY 2019-20 as compared with FY segment asset 2018-19 is tabulated below: - (` in Crores) The amount of ` 29.32 crores has been shown as amount receivable from AAICLAS in the S. Particulars Financial Year books of accounts as on 31/03/2020. No. 2018-19 2019-20 (01.04.2019 to v) Concession fee from AAICLAS Co. Ltd. 30.06.2019) The Board of AAICLAS Co. Ltd. in its 12th 01 PSF (SC)/ ASF 1,007.65 243.26 meeting held on 07/03/2019 vide Agenda item Revenue no: 20.20 has approved the proposal to enter 02 Aviation Security 1,232.24 405.30 into a concession Agreement with Airports Expenses Authority of India for the rights given by AAI to

140 Notes to Financial Statements for the year ended March 31, 2019 As per SOP for Airport Operators, while the over the lease period of 30 years. The total Cost of Deployment Bills of Security Agencies unadjusted amount as on 31.03.2020 on this will be settled directly by NASFT w.e.f. account is `159.99 crore. 01.07.2019, the other Expenditure relating to iv. As per agreement signed by AAI with DIAL and S e c u r i t y A g e n c i e s l i k e M e d i c a l , MIAL an amount of ` 3052.64 crores (DIAL Accommodation hiring, Vehicle hiring, etc. will ` 1,702.00 crores and MIAL ` 1,350.64 crores) be initially incurred by the Airport Operators has been received as revenue share and this and subsequently claimed by them from amount is recognized in the Prot and Loss NASFT. account of AAI under the head “Income from AAI has raised a claim amounting to Rs. Leasing of Airports’. AAI has raised a claim of 113.01 Crores in this regard on NASFT as on ` 3.93 crores from DIAL and ` 1.96 crores from 31.03.2020 and the same is shown as MIAL towards interest for the FY 2019-20 on Receivable from NASFT in the Account for the account of shortfall in MAF during the period FY 2019-20. from 01.04.2019 to 31.03.2020. A claim of ` 1.45 Crores has been raised by v. As per OMDA, the operation support period of AAI on NASFT towards Expenditure on 3 years has expired on 2nd May 2009. During administering the Trust activities and the same the year (2019-20) an amount of ` 2.82 crores has been shown as Receivable from NASFT as (MIAL ` 1.47 crores and DIAL ` 1.35 crores) on 31.03.2020. was received from JVCs who have not opted for 35.Disclosure under Accounting Standard – absorption in terms of OMDA. Retirement 19 on ‘Leases’ compensation has been fully paid by DIAL/MIAL in April 2019. (A) OMDA of IGI Airport, Delhi and CSI Airport, vi. AAI has paid an amount of ` 1.61 crores Mumbai (` 80.50 lacs each for DIAL and MIAL) as i. Existing Fixed Assets of IGIA/CSIA as on the counter guarantee fee to Govt. of India for the date of commencement of OMDA i.e. FY 2019-20. 03.05.2006 have been leased to DIAL and vii. With regard to DF of MIAL, it is stated that MIAL on “as is where is basis”. These assets under DF-I account an amount of ` 438.77 are being shown in the books of accounts of crores were transferred from the DF Escrow AAI under the head Fixed Assets. account during the nancial year 2019-20 and ii. During the Financial Year 2019-20, DIAL and the balance under this Escrow Account is MIAL as a process of development of ` 65.92 lakhs as on 31.03.2020. An amount of demolished/disposed certain of the xed ` 45.16 crores has been kept in xed deposit assets of AAI and the proceeds of the same with bank. were transferred to AAI and accounted for viii. Under DF-II account an amount of `165.00 accordingly. crores were remitted to MMRC during 2019-20 (` in lakh) and the balance amount available under the Gross Accumulated Net Prot said Escrow Account is ` 17.01 lakhs as on Block Dep. Block on sale 31.03.2020. An amount of ` 61.00 crores has of Fixed been kept in Fixed Deposit with Bank. Assets ix. Arbitration cases with DIAL and MIAL: – DIAL 74.15 74.15 Nil 04.40 (a) Claim of DIAL and MIAL of excess Annual Fee MIAL 221.10 221.10 Nil 27.22 payment in the past years with interest: iii. Upfront Fees – AAI has received an Upfront fee - Delhi International Airport Ltd. (“DIAL”) of Rs.150 crore each from DIAL and MIAL at and Mumbai International Airport Ltd have the time of leasing out AAI airport at Delhi and raised a dispute under the Operation, Mumbai. AAI has treated these amounts as M a n a g e m e n t a n d D e v e l o p m e n t deferred revenue expenditure and to be spread Agreement (“OMDA”) dated 04.04.2006

141 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

between DIAL and AAI, pursuant to which been paid by it in excess. The total claim is operation, management and all ancillary therefore to the tune of `12,199.64 crores functions pertaining to the Delhi approx. International Airport were handed over to DIAL. - Further to the invoking of Arbitration clause under the agreement, an Arbitral Tribunal - In terms of Clause 11.2 of the OMDA, DIAL has been constituted to adjudicate the is required to pay AAI an Annual Fee of dispute raised by DIAL. The matter is 45.99% of its Revenue for the year. The pending at the stage of cross examination term Revenue is dened in the OMDA in of DIAL’s witness. the following terms: - Further to DIAL raising the above claim, “Revenue “means all pre-tax gross revenue Mumbai International Airport Limited of JVC, excluding the following: (“MIAL”), which is the concessionaire for (a) payments made by JVC, if any, for the the Mumbai Airport, has raised a similar activities undertaken by Relevant claim by way of a notice issued on Authorities or payments received by JVC 05.01.2019. The quantum of the claim is for provision of electricity, water, sewerage, ` 3,582.90 crores plus applicable interest or analogous utilities to the extent of which works out to ` 11,768.04 crores upto amounts paid for such utilities to third party 31.03.2020. The total claim is therefore to service providers; (b) insurance proceeds the tune of ` 15,350.94 crores approx. The except insurance indemnication for loss same Tribunal that will be adjudicating the of revenue; (c) any amount that accrues to DIAL dispute is seized of the dispute with JVC from sale of any capital assets or MIAL. The matter is pending adjudicating items; (d) payments and/or monies for the nal arguments. collected by JVC for and on behalf of any g o v e r n m e n t a l a u t h o r i t i e s u n d e r b) Utilization of custom duty scrips (SFIS) by Applicable Law; (e) any bad debts written DIAL & MIAL: off provided these pertain to past revenues In the matter relating to utilization of on which annual fee has been paid to AAI. custom duty scrips (SFIS) by DIAL & MIAL, It is claried that annual fee payable to AAI t h e a r b i t r a t i o n a w a r d h a s b e e n pursuant to Article 11 and Operational pronounced in favour of DIAL/MIAL. AAI Support Cost payable to AAI shall not be has challenged the Arbitration Award in deducted from Revenue. Hon’ble High Court of Delhi. The matter is - For a period of nearly a decade (2006- sub-judiced in the Hon’ble High Court of 2016), it was the common understanding Delhi. of AAI and DIAL that DIAL was required to (c) Removal of restriction on end use of the pay 45.99% of its revenue recognized in land 4.17 acres the P&L account as Annual Fee. In Arbitration proceedings with MIAL related December 2016, DIAL for the rst time to the removal of restriction on end use of notied AAI that on account of a “mistake”, the land 4.17 acres situated at F Block, AAI excess annual fee had been paid in past NAD Colony Mumbai has gone in favour years. DIAL accordingly claimed restitution of MIAL and AAI has gone to High Court of such amounts. DIAL invoked arbitration against the award. AAI has also lost the under the OMDA when its claim was case in Delhi High Court. Now, AAI has rejected by AAI. led the case in Division Bench in Delhi - DIAL claims that it paid an excess amount High Court against the order of single of `6,663.26 crores as Annual Fee, in bench. addition to which it is claiming interest x. Dividend received from JVCs during the year – which works out to `5,536.38 crores up to An amount of `12.29 Crores has been received 31.03.2020 on such amounts said to have from GHIAL during 2019-20.

142 Notes to Financial Statements for the year ended March 31, 2020 xi. Service Tax on Annual Fee from DIAL and 37.Commitments MIAL a) Estimated amount of contracts remaining to be Service Tax Department has issued the Demand executed on capital account including letters of cum Show Cause Notice to AAI demanding credit and not provided for amounts to payment of Service Tax amounting to ` 2031.68 `7967.96 crores (Previous year `4828.67 crore on the Annual Fee payable by DIAL and crores) as on Balance Sheet date. MIAL and the upfront fee paid by DIAL and b) AAI has export obligations to the extent of MIAL to AAI. This demand was made for the `1129.19 crores approx. (Average Turnover of period from 03.05.2006 to 31.03.2016. preceding three years i.e. `1076.19 crores Further, AAI received Show Cause Notice cum plus `53.00 crores over and above the demand amounting to ` 728.32 crores on Average Turnover of foreign Exchange 30.04.2019 for the period April 2016 to June earnings for FY 2019-20) on account of 2017. The Hon'ble High Court of Delhi, on the concession in Custom duty availed under EPCG license scheme on import of writ petitions led by DIAL and MIAL in the year Equipment/spares. 2008, passed the judgement on 14.02.2017 holding that amount of Annual Fee payable and c) AAI has earned Foreign Exchange in FY 2019- 20 for an amount of `1034.94 crores against upfront fee payable by both the parties to AAI EO of `1129.19 crores. does not constitute “franchise” and hence transaction between the petitioners and AAI 38.Consolidation of Accounts: does not constitute taxable service. As AAI is not a Company registered under the Consequently, AAI resubmitted the refund claim Companies Act 2013, the requirement of of service tax amounting to `57.77 crores consolidation of accounts of AAI, AAI Cargo deposited on Monthly Annual Fee for the period Logistics & Allied Services Company Ltd. and June 2007 to February 2008 on 21.03.2018 Chandigarh International Airports Ltd. (where which is pending with Service Tax Dept. AAI is having 51% share holding) as on 31.3.2020 is not applicable. However, the Simultaneously, AAI led an appeal before the accounts of AAI Cargo Logistics & Allied Hon'ble CEASTAT against the demand raised Services Company Ltd. and Chandigarh and the adjudication thereof by the International Airports Ltd will be annexed to Commissioner of Service Tax for the period from annual report of AAI for the FY 2019-20 and 2006 to 2014 amounting to `1407.25 crore. will be laid on the table of both the houses of Based on the judgement of the Hon'ble High Parliament. Court of Delhi, the Hon'ble CEASTAT has set 39.Contingent Liabilities aside the adjudication order of the Claims not acknowledged as debts: Commissioner of Service tax for the period from (` in Crores) 2006 to 2014. The Commissioner of Service Particulars As at As at Tax has not yet adjudicated the demand for the 31st March 2020 31st March 2019 period from 2014-15 to 2016-17 and April Land cases 1,404.28 641.87 2017 to June 2017. Compensation 3.57 3.41 claims of Accident 36.Disclosure under Accounting Standard – Cases under 30,331.85 910.37 28 on Impairment of Assets Arbitration As per the assessment of the Management, Claims against Cargo 74.69 14.54 Court Cases 433.40 475.37 there is no Material change in the position as Sales tax/Service 450.41 447.22 on 31.03.2020 to further recognize or review Tax/Municipal tax/ the effect given for Impairment of Assets during income tax etc. the FY 2013-14 in the Accounts of AAI for the Others 51.50 60.56 FY 2019-20. TOTAL 32,749.71 2,553.34

143 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020

40.Guarantees executed Regional PF Commissioner, Delhi vide letter dated 17.08.2015 have recommended the During the year the guarantees for `13.87 grant of exemption to AAI to the Central Crores have been issued/renewed in favour of Headquarters, EPFO. However EPFO raised Electricity Distribution Companies, Pollution few queries vide letters of even No. C o n t r o l B o a r d , D e p a r t m e n t o f Telecommunication etc. E/DL/37478 Exempted/EO/2016 dated 21.01.2016, 15.06.2016 and 29.09.2016 41. Expenses in Foreign Currencies which have been addressed and nal replies (` in Crores) submitted vide F. No. AAI/EPF/CHQ/2016-17 dated 28.11.2016. The issue has again been Particulars FY 2019-20 FY 2018-19 taken up with EPFO through reminders, Capital Goods 558.15 772.89 however the nal decision from EPFO is still purchased awaited. Spare parts 74.18 103.16 44.Segment Report and Cash Flow Statement Foreign travel 8.80 9.99 Segment report and Cash Flow Statement for Consultancy 1.34 1.73 the nancial year ended 31st March 2020 are Repayment of 2.72 2.65 annexed herewith. Foreign loans 45.Regional Connectivity Scheme (RCS) Others 21.80 37.59 UDAN (Ude Desh Ka Aam Naagrik) is a key Total 666.99 928.01 component of the National Civil Aviation Policy 42.Earnings in Foreign Exchange (NCAP), 2016 which was released by the (` in Crores) Ministry of Civil Aviation (MoCA) on 15.06.2016. In line with NCAP-2016, Ministry Particulars FY 2019-20 FY 2018-19 of Civil Aviation (MoCA) launched Regional Services 1,034.94 1,137.60 Connectivity Scheme (RCS-UDAN) on 21.10.2016 which will be applicable for a 43.EPF Trust period of 10 years from the date of its i) EPFO vide their letter dated 30.05.2012 has notication by the MoCA. raised a demand of ` 227.17 Crores towards The rst RCS UDAN ight was inaugurated by damages for delay in remittance of monthly Hon’ble Prime Minister on 27.04.2017 from contributions from 04/1995 under section 14B Shimla to Delhi. of EPF & MP Act, 1952. The demand has been contested in the Honourable High Court of Till 31.03.2020, 3 rounds of bidding were held Delhi and the same is subjudice. and 688 valid RCS routes have been awarded to different airlines to connect 77 unserved ii) EPFO vide their letter No. E/DL/36478/ airports, 20 underserved airports and 10 Rec/3203-3208/1581 dated 11.12.2014 waterdromes. Besides, 31 helipads in priority withdrew relaxation granted to AAI under Para areas of hill states are to be connected under 27 (A) of the EPF & MP Act, 1952 read with UDAN-2. para 17 (2) to maintain the Provident Fund in- house. AAI approached Ministry of Labour & Bids have been received and opened under 4th Employment, Government of India for round of bidding till 31.03.2020. restoration of relaxation granted to AAI. It was Total domestic passengers travelled through decided in a meeting held on 29.05.2015 in RCS-UDAN were more than 15.00 lakhs and presence of Ministry of Labour, EPFO & AAI more than 45.00 lakhs upto 31.03.2019 and ofcials to restore the relaxation granted to AAI 31.03.2020 respectively. temporarily till the judgment of the Hon’ble The Viability Gap Funding (VGF) claim High Court related to Damages issue. disbursed by RACFT to Selected Airline

144 Notes to Financial Statements for the year ended March 31, 2020 Operators (SAOs) during 2019-20 is ` 681.05 Serving and Retired employees by discharging crore. the liability already created in the Book of 46.PPP Airports Accounts as on 31.03.2018. AAI has also provided as Liability an amount of Rs. 818.01 Approval of Union Cabinet received on Crores towards its contribution for the Pension 03.07.2019 for leasing of 03 Airports of AAI Fund payable to the Trust relating to the period viz. Ahmedabad, Lucknow & Mangaluru to the 01.01.2017 to 31.03.2019 including interest highest bidder i.e. M/s. Adani Enterprises Ltd. in the Annual Accounts of AAI for the period for a concession period of 50 years through ending 31.03.2019. Additionally an amount Public Private Partnership (PPP). AAI & M/s. of ` 96.37 crores has been provided as liability Adani Enterprises Ltd. (SPVs) have executed the for contribution to the scheme for the FY 2019- Concession Agreement on 14.02.2020 w.r.t. 20 in the Annual Accounts for the FY 2019-20. Ahmedabad, Lucknow and Mangaluru Airports for Operations, Management and C&AG while auditing the Annual Accounts of Development through Public Private AAI for the FY 2018-19 has observed that Partnership (PPP) for a period of 50 years. For providing ` 540 crores as Liability towards rest of 03 airports viz. Jaipur, Guwahati and interest for the period 01.01.2007 to Trivandrum, the process of obtaining approval 31.03.2019 is inconsistent with DPE of Cabinet is in advanced stage. Guidelines and no approval has been sought from MoCA in this regard. As per assurance AAI Board in its 190th Board Meeting held on given to C&AG, AAI vide UO note reference 05.09.2019 recommended proposal for no: AAI/CHQ/F&A/COMP/ACCOUNTS undertaking Operations, Management and AU D I T / 2 0 1 8 - 1 9 d a t e d 1 5 . 1 1 . 2 0 1 9 Development of another 06 airports viz. addressed to JS, MoCA has requested MoCA to Bhubaneswar, Varanasi, Indore, Amritsar, make a reference to DPE to conrm the Raipur and Trichy Airports through PPP for correctness of the action taken by AAI in this which proposal has been sent to MoCA for r e g a r d . M o C A v i d e O / M F i l e n o : which approval is awaited. AV.24032/578/2015-AAI-MoCA dated 47. General 14.01.2020 addressed to the Secretary, Department of Public Enterprises has sought (i) Balances in advances/customer account/ DPE’s considered views on the subject. DPE liability etc. are subject to conrmation/ vide O/M no.:02/0007/2020-DPE(WC)- reconciliation. FTS/11241 dated 16.03.2020 has replied that (ii) Losses pending investigation amounts to the implementation of the guidelines entirely ` 7.07 lakhs (previous year ` 7.07 lakhs). rests with CPSE/Administrative Ministry. The (iii) AAI Employees Dened Contribution general nancial matter in so far expenditure is Pension Scheme: to be decided by the CPSE in consultation with MoCA vide letter No.AV-24032/578/2015- Administrative Ministry through IFD/ AAI-MOCA dated 26.02.2018 has approved Department of Expenditure, Ministry of the Pension Scheme under reference with the Finance, wherever necessary and accordingly effective date as 01.01.2007. Accordingly, AAI the matter may be dealt with by the has created a Pension Trust namely ‘AAI Administrative Ministry keeping the above in Employees Dened Contribution Pension view. AAI again vide UO Note no: AAI/CHQ/ Trust” vide Trust Deed dated 11.02.2019 to F&A/COMP/ACCOUNTS AUDIT/2018-19 manage the Pension Fund. dated 10.08.2020 addressed to JS,MoCA has sought approval for the provision created by AAI has transferred an amount of ` 824.19 AAI for interest amounting to ` 540 crores for crores to AAI Employees Dened Contribution the scheme so that the amount could be Pension Trust towards its contribution for the transferred to AAI Employees Dened period 01.01.2007 to 31.12.2016 relating to Contribution Pension Trust. The approval in this

145 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 regard is under the consideration of MoCA and the earlier years was available in the books of hence no effect in this regard has been given in accounts as on 31/03/2019. the Annual Accounts for the FY 2019-20 by • During 2019-20 the following amounts have AAI. been paid towards rehabilitation and have (iv) Payment of Government Pensionary been adjusted out of the amount available in Benets transferred En-masse from Civil provision for rehabilitation expenses Aviation Department/DGCA to NAA/AAI - ` 0.03 crores with less than 10 years of service on the Date of Absorption (02.10.1989) • The following are likely expenditure on rehabilitations in the coming year(s) MoCA vide letter No.AV-20036/805/2015- AAI-MOCA dated 03.04.2018 addressed to (` in Crores) DGCA has conveyed/claried its decision to Sr. No. Particulars Amount grant Government Pensionary Benets after (a) Development expenditure of ` 6.55 adjusting the capitalized value paid during Nangal Dewat Village, Delhi 2018-19 to Employees who have transferred (b) Resettlement fund to Govt. of ` 32.08 En-masse from Civil Aviation Department/ Uttar Pradesh for removal/ DGCA to NAA/AAI with less than 10 years of rehabilitation of village s e r v i c e o n t h e D a t e o f A b s o r p t i o n Bhaktikeda of Lucknow Airport (02.10.1989). • An exercise of biometric survey is being carried Accordingly, the process of obtaining options from the concerned employees (Serving / out by the Govt. of Maharashtra for Retired) has been initiated by AAI. Based on ascertaining the slum dwellers occupying AAI the options obtained, the process of payment land at CSIA/Juhu Airport that may be eligible of capitalized value relating to these for their re-settlement at alternate site. AAI may employees for the purpose of issue of have to incur the amount / cost of the biometric Government Pension PPO has also been survey at this stage as well as contribution of initiated. AAI towards construction of tenements for the slum dwellers at alternate place. But the details Presently total net liability towards capitalized value of these Employees as on 31.03.2020 is of approx. expenditure is not known to AAI at as follows:- this stage which is likely to be in hundreds of (` in Crores) crores of rupees. Biometric survey of slum Sr. No. Particulars Amount dwellers on AAI land measuring 38.15 acres (a) In respect of Serving ` 208.93 has since been completed by State Government Pension Government. Optees as on 31.03.2020 However, State Government has not provided (b) In respect of Separated ` 95.63 the details of slum dwellers who are eligible or Government Pension ineligible for rehabilitation. Hence, number of Optees as on 31.03.2020 eligible slum dwellers cannot be quantied at this stage due to frequent change in the cut off Total `304.56 date as per Slum Rehabilitation Policy of As the liability has been created on estimated Government of Maharashtra. basis, any further adjustment which may be So far, AAI has not paid any amount either for required will be effected in 2020-21 Accounts. survey or for rehabilitation of Juhu slum (v) Provision for Rehabilitation Expenses dwellers. • An amount of `409.14 crores towards • In the process of fresh land acquisition for provision for rehabilitation expenses created in development of an airport or additional land acquisition for expansion of existing airport

146 Notes to Financial Statements for the year ended March 31, 2020 services/infrastructure, the concerned State Annual Accounts for the FY 19-20. Net impact Govt. do acquire land on behalf of AAI. As per of INR 0.45 Crore related to nancial year bye-laws of the State Govt.(s), in most of the 2017-18 and 2018-19 due to this change of cases, AAI is required to bear the cost on accounting treatment has been credited in the account of expenses to be incurred for Project statement of prot and loss during the nancial Affected Person (PAP)/Resettlement & year 2019-20. Rehabilitation (R&R) due acquisition of land for b. Disclosure in relation to Future minimum lease development of airports. Further, the above payments for nance lease obligation under cost/expenses is also borne by AAI in case of non-cancellable Finance leases: removal of encroachment as well as (` in Crores) rehabilitation of slum dwellers to alternate Particulars As at March 31, 2020 location. Minimum Present In view of the above, the management is of the Lease Value considered view that rehabilitation provision payments Minimum created in the earlier years and remaining in Lease the books of accounts as on 31.03.2020 i.e. payments ` 409.11 crores has to be retained to meet the Not later than 1 year 22.45 17.02 requirement towards rehabilitation expenses Later than 1 year and 60.94 54.08 of various Airports in 2020-21 and in the not later than 5 years subsequent years. Later than 5 years - - (vi) Refund of Service Tax on original work (viii)Development and operationalization of AAI for the construction work undertaken at existing Airport in , Uttar Pradesh Chandigarh and Jaipur Airports had led a claim for refund of service tax on 11.11.2016 A Memorandum of Understanding (MoU) for development and operationalization of amounting to `1,75,08,235.00 and existing State Government Airport in `2,53,17,588.00 for Chandigarh and Jaipur Airports respectively. The refund application is Kushinagar, Uttar Pradesh by Airports under process as on 31.03.2020. Authority of India has been signed between the Government of Uttar Pradesh and Airports (vii) BOT Model X-BIS Contracts: Authority of India on 5th day of March, 2019. (a) In respect of the accounting treatment given by As per earlier MoU dated 29.12.2016 AAI as operating lease for the contracts under between Ministry of Civil Aviation, Airports reference in 2017-18 Accounts, C&AG had Authority of India and State Government of opinion that these contracts should have been Uttar Pradesh, State Government of Uttar for accounted for as nancial lease. Pradesh has handed over and AAI has taken In view of the difference of opinion between over 589.35 acres of land on as it “where is AAI and C&AG and as advised by C&AG, AAI basis” and “free from all encumbrances” for has referred the issue to the Expert Advisory development of on 4th Committee (EAC) of the ICAI to give its October 2020 as per Handing over/Taking considered opinion on the issue. After over note date 04.10.2019 at `1/- token nalisation of accounts for the FY 18-19, ICAI money and has been accounted for in 2019- has forwarded its opinion that contracts under 20 Accounts. reference have to be classied as "Financial (ix) Concessions proposed for sustaining Lease". National Flying Training Institute’s Accordingly, necessary accounting entries Operations at Gondia taking into account the opinion of the ICAI in AAI Board in its Board Meeting held on 26th this regard has been passed by AAI in its February, 2019 vide Agenda Item no. 187.20

147 Annual Report 2019-20

Notes to Financial Statements for the year ended March 31, 2020 has considered and accorded approval for adheres to its commitments on the concessions certain concessions sought by NFTI Board for proposed by it towards sustaining operations sustaining the operations of NFTI at Gondia. of NFTI. The concessions approved by AAI Board are Pending further deliberations on the subject to NFTI adhering to Business Plan concessions and further updated status of Par am e te r s dur i n g th e pl an pe r i od grant of concession by CAE, no effect is given in Meticulously and M/s CAE, the JV Partner books of accounts of AAI for the FY 2019-20

Sd/- Sd/- Sd/- Sd/- (R.Tulasi Mahalakshmi) (D.Bhojwani) (K.Vinayak Rao) (Arvind Singh) Company Secretary ED (F&A) Member (Fin) Chairman

New Delhi Dated: September 25, 2020

148 Cash Flow Statement for the Financial Year Ended 31st March 2020 (` In Crores) PARTICULARS YEAR ENDED 2019-20 2018-19 A CASH FLOW FROM OPERATING ACTIVITIES Prot before taxation and exceptional item 3,817.06 3,683.99 Adjustments for: Depreciation, Amortisation and Impairment 1,751.25 1,564.89 Prior Period Depreciation 77.45 23.76 Financing Costs 4.61 6.50 Other Misc. Items (46.83) (145.42) Adjustment for provisions-net made during the year 564.01 287.84 Adj for Accumulated Provision For Doubtful debts (45.53) 188.05 Dividend Income from JVCs & AAICLASCL (30.56) (19.66) Interest Income (169.43) (434.23) (Prot) on Assets Sold/discarded, net (4.06) (10.23) Operating Prot before Exceptional items & Operating Capital Changes 5,917.97 5,145.49 Decrease/(Increase) in Other Operating Assets (329.85) (293.81) Increase in Operating Liabilities 35.55 380.47 Cash Generated from Operations 5623.67 5232.15 Direct Taxes Paid (Net of Refunds) (1,372.99) (2,264.59) Net Cash Generated from Operating Activities - A 4,250.68 2,967.56 B CASH FLOW FROM INVESTING ACTIVITIES Addition to/Purchase of Fixed Assets/CWIP/Advances for Capital Works (4,560.44) (3,641.47) Proceeds from Sale of Fixed Assets 16.93 141.54 Bank Deposits more than 3 months (net) 464.51 3,047.07 Dividend Received from JVCs & AAICLASCL 30.56 19.66 Interest Received 164.69 508.17 Investments/advance for investments in Joint Venture Companies (5.10) (77.27) Net cash Generated/ (Used) in Investing Activities - B (3,888.85) (2.30) C CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Govt. in the form of Capital grants 478.13 400.81 Payment/Refund of RCS Grant/Capital Grant to State Govt. (58.78) (41.40) Payment of Interest on Loan from Foreign Financial Institution (0.02) (0.02) Repayment of Loan from Foreign Financial Institution (2.70) (2.63) Payment of Financial Lease Liabilities (incl. Interest etc) (23.04) - Dividend paid (720.46) (2,403.00) Tax on dividend paid (148.09) (493.94) Net cash Generated / (Used) from Financing Activities - C (474.96) (2,540.18) NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) (113.14) 425.08 Cash & cash equivalents as at the beginning of the nancial year 540.78 115.70 Cash & cash equivalents as at the end of the nancial year 427.64 540.78

Notes:- 1. The above Cash Flow Statement has been prepared under the 'Indirect method' as set out in the Accounting Standard -3 on Cash Flow Statements issued by The Institute of Chartered Accountants of India. 2. Bracket indicates cash outow/reduction.

149 Annual Report 2019-20 1

8 . 1 6.50 1 19.66 otal T 2 434.22 3236.60 3683.98 1412.55 2271.43 2760.93 3810.00 1564.89 Grand 13561.70 17098.84 30660.54 13423.27 16184.20

In Crores) ) ` 6 ( 7 . 6.50 9 19.66 96.88 20.66 5 ( 410.13 767.40 cated Unallo- 1412.55 1756.66 2179.95 17098.84 13423.27 13423.27 17098.84

6

4 . 8 3.94 8 East 580.48 623.67 623.67 829.48 407.18 576.54 580.48 3324.45 3324.45

4 8 . 6 1.75 50.77 East 282.78 282.78 585.35 North- (128.84) 1267.01 1267.01 (130.59) (128.84)

FY 2018-19

3

6 . 7 4.20 est 2 431.11 524.20 524.20 498.14 248.11 W 426.91 431.11 2001.45 2001.45

8

1 . 7 7.52 6 eporting" 1 494.75 674.02 674.02 990.57 571.26 South 487.23 494.75 4234.79 4234.79

)

4 5 . 6.69 8 1 ( 126.54 656.26 656.26 809.57 266.91 119.85 126.54 North 2734.00 2734.00

1 9 . 1 4.61 3 37.93 otal 169.42 T 1985.09 2795.53 4521.38 1751.25 3614.31 3817.06 1831.97 Grand 15840.94 17680.42 15253.94 18049.47 33521.36

) 2 - 7 . 8 37.93 84.10 29.91 (2.16) 2 150.29 1 cated ( 1831.97 1485.97 3127.56 3317.94 Unallo 17680.42 15253.94 15253.94 17680.42

0 1

. 9 2.69 1.08 7 East 478.93 626.40 626.40 954.34 447.56 477.32 478.93 3494.51 3494.51

2 5 . 7 1.05 0.65 1 75.23 East 309.62 309.62 548.35 North- (172.99) 1759.99 1759.99 (173.39) (172.99) FY 2019-20

8

1 . 7 3.74 1.15 est 7 W 112.77 544.66 544.66 517.07 260.94 110.17 112.76 2270.68 2270.68

6

0 . 5 7.06 2.30 5 Disclosure as per AS 17 - "Segment R 105.96 696.63 696.63 637.86 101.20 105.96 South 5060.55 1390.19 5060.55

)

3 2 . 4.59 1.59 8 6 ( (25.55) 618.22 618.22 299.75 (28.55) (25.55) North 3255.22 1027.33 3255.22 e , r s t u t b i Notes to Financial Statements for the year ended March 31, 2020 e d n D n o i l e t rom u

p a f i t x rovisions c E b

e u r h

ax o s p a e rot D ax ) r D s -C o t f d n ax Exp/P b o n o i e r o i N D e s Cash Expenditure r P i d v o r j a o o a B i r rot before T rot after T articulars r otal Assets otal Liabilities P P

Operating P Interest Expenses Dividend received F JVCs & AAICLASCL Interest Income P Income T P Other Information Segment Assets Unallocated Assets T Segment Liabilities Unallocated Liabilities T Capital Expenditure Non- Depreciation, Amortisation & Impairment M ( P &

150 151 Annual Report 2019-20

152 153 Annual Report 2019-20

154 155 Annual Report 2019-20

156 Mangaluru Airport

Financial Statements of Chandigarh International Airports Authority of India Annual Report 2019-20

Balance Sheet as at March 31, 2020 (INR in lakhs) Particulars Note No As at March 31, 2020 As at March 31, 2019 ASSETS Non-current assets (a) Property, Plant and Equipment 2 81,304.77 84,202.26 (b) Capital work-in-progress 3 2,612.80 911.95 (c) Intangible assets other than Goodwill 4 24.99 - (d) Right to use assets 5 90.66 - (e) Financial Assets (i) Others 6 32.94 24.43 (f) Deferred Tax Assets 7 308.28 810.13 (g) Other Non-Current Assets 8 7.00 - Current Assets (a) Inventories 9 5.92 6.24 (b) Financial Assets (i) Trade Receivables 10 1,314.40 676.63 (ii) Cash & Cash Equivalents 11 80.40 453.96 (iii) Bank balances other than (ii) above 12 16,920.66 11,688.79 (iv) Others 13 1,140.14 1,095.68 (c) Current Tax Assets 14 1,309.39 1,172.95 (d) Other Current Assets 15 638.41 132.42 Total Assets 105,790.77 101,175.44 EQUITY AND LIABILITIES Equity (a) Equity Share Capital 16 96,944.94 96,944.94 (b) Other Equity 17 3,895.78 576.45 Liabilities Non-current liabilities (a) Financial Liabilities (i) Borrowings 18 - 70.32 (ii) Others 19 1,892.03 456.67 (b) Other non-current liabilities 20 497.68 239.38 Current liabilities (a) Financial Liabilities (i) Others 21 2,000.95 2,496.44 (b) Other current liabilities 22 451.85 391.23 (c) Provisions (i) Others 23 107.55 - Total Equity and Liabilities 105,790.77 101,175.44 Signicant Accounting Policies 1 The notes referred to above form an integral part of the standalone nancial statements For Rajiv Goel & AssociateS Chartered Accountants For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- (CA Dhruv Goel) (Avneet Kaur) (Rakesh Dembla) (I.N. Murthy) Partner Company Secretary CFO Chairman M No. 549569 FRN 011106N Place : Chandigarh Date :

160 Statement of Prot and Loss for the year ended March 31, 2020

(INR in lakhs) Particulars Note No. Year Ended Year Ended March 31, 2020 March 31, 2019 Income i) Revenue from Operations 23 10,954.52 10,717.94 ii) Other Income 24 1,099.00 742.20 Total Income 12,053.52 11,460.14 Expenses i) Employee Benets Expenses 25 540.04 488.71 ii) Finance cost 26 145.05 80.54 iii) Depreciation and amortization expenses 27 3,371.49 3,383.35 iv) Other Expenses 28 3,379.92 4,888.28 Total expenses 7,436.50 8,840.89 Prot before exceptional items and tax 4,617.02 2,619.25 Exceptional Items - - Prot Before Tax 4,617.02 2,619.25 Tax expense 16 - Current Tax 795.84 551.04 - Less: MAT Credit (725.36) (551.04) - Deferred Tax 1,227.21 746.52 Total Tax Expenses 1,297.69 746.52 Prot for the period from continuing operations 3,319.33 1,872.73 Prot/(loss) from discontinued operations - - Tax expense of discontinued operations - - Prot from discontinued operations after tax - - I Prot for the year 3,319.33 1,872.7II Other Comprehensive Income i) Items that will not be reclassied to prot or loss - Premeasurements of the dened benet plans - - Less: Income Tax on above - - ii) Items that will be reclassied to prot or loss - - - - Total Comprehensive Income for the period 3,319.33 1,872.73 Earnings per equity share : (1) Basic 0.34 0.19 (2) Diluted 0.34 0.19

The notes referred to above form an integral part of the standalone nancial statements

For Rajiv Goel & Associates Chartered Accountants For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- (CA Dhruv Goel) (Avneet Kaur) (Rakesh Dembla) (I.N. Murthy) Partner Company Secretary CFO Chairman M No. 549569 FRN 011106N Place : Chandigarh Date :

161 Annual Report 2019-20

Cash Flow Statement for the year ended March 31, 2020

(INR in lakhs) Particulars For the year ended For the year ended March 31, 2019 March 31, 2018 A. CASH FLOW FROM OPERATING ACTIVITIES Depreciation 3,371.49 3,383.35 Interest Income (894.09) (652.18) Fair Valuation Gain (138.15) (72.55) Finance Cost 138.15 72.55 Reversal of Liability (29.57) - Bad Debts 21.89 - Interest cost on lease 6.90 8.00 Operating Prot before Working Capital Changes 7,093.65 5,358.41 Adjustment for working capital changes:- Inventories 0.31 (0.12) Trade Receivables (659.66) 695.74 Other Current Financial Assets 65.84 (323.33) Other Non Current Financial Assets (8.50) (23.46) Other Current Assets (505.99) (98.72) Current Tax Asset (136.45) (456.90) Other Non Current Assets (7.00) - Other Current Financial Liabilities (467.45) 937.50 Other Current Liabilities 43.03 50.55 Other Current Provisions 107.55 - Other Non-Current Financial Liability 1,381.41 62.49 Other Non-Current Liabilities 258.30 132.32 Cash generated from Operating Activities 7,165.04 6,334.49 Income tax paid (795.84) (551.04) Net Cash Generated from Operating Activites 6,369.20 5,783.45 B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment (571.43) (793.08) Purchase of Intangible Assets (24.53) - Sale of Property, Plant and Equipment 6.31 - Realization/ (Payments) for Investments/ (5,231.87) (4,737.91) Bonds/Bank Deposits Capital Work In Progress (1,700.85) (823.94) Interest Income 783.78 544.44 Net Cash From Investing Activities (6,738.59) (5,810.49) Grants received during the year 17.59 281.00 Lease payments (21.75) (21.54) D. Net changes in Cash & Cash equivalents (373.56) 232.42 E. Opening Cash & Cash Equivalents (Note No 10) 453.96 221.54 F. Closing Cash & Cash Equivalents (Note No 10) 80.40 453.96 Component of Cash and Cash Equilavent Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Balances with Banks 80.40 453.96 80.40 453.96 Component of Bank balances other than cash and cash equivalents Fixed - Term Deposit 16,920.66 11,688.79 The notes referred to above form an integral part of the standalone nancial statements

For Rajiv Goel & Associates Chartered Accountants For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- (CA Dhruv Goel) (Avneet Kaur) (Rakesh Dembla) (I.N. Murthy) Partner Company Secretary CFO Chairman M No. 549569 FRN 011106N Place : Chandigarh Date :

162 Statement of changes in equity for the period ended March 31, 2020

A. Equity Share Capital (INR in lakhs) Particulars Amount Balance as at April 1, 2019 96,944.94 Changes in share capital during the year - Balance as at March 31, 2020 96,944.94

(INR in lakhs) Particulars Amount Balance as at April 1, 2018 96,944.94 Changes in share capital during the year - Balance as at March 31, 2019 96,944.94

B. Other Equity For the year ended March 31, 2020 (INR in lakhs) Particulars Reserve & Surplus Total Retained Capital General Earnings Reserve Reserve Balance at the beginning of the reporting period 576.45 - - 576.45 as on April 1, 2019 Prot for the year 3,319.33 3,319.33 Other Comprehensive Income - Total Comprehensive Income for the year 3,895.78 - - 3,895.78 Add: Transfer to reserve during the period - - - Less: Appropriations Dividends - - - - General reserve - - - - Balance at the end of the reporting period 3,895.78 - - 3,895.78 March 31, 2020

For the year ended March 31, 2019 (INR in lakhs) Particulars Reserve & Surplus Total Retained Capital General Earnings Reserve Reserve Balance at the beginning of the reporting period (1,303.24) - - (1,303.24) as on April 1, 2018 Prot for the year 1,872.73 - - 1,872.73

Total Comprehensive Income for the year 569.49 - - 569.49 Add: Transfer to reserve during the period 6.96 - - 6.96 Less: Appropriations - Dividends - - - - General reserve - - - - Balance at the end of the reporting period March 31, 2019 576.45 - - 576.45

163 Annual Report 2019-20

Notes to Financial Statements for the year ended 31st March 2020 COMPANY OVERVIEW The preparation of the nancial statements in The Chandigarh International Airport Ltd. conformity with Ind AS requires management to (CHIAL), has been incorporated on 28th January, make estimates and assumptions that affect the 2010 as a joint venture company under reported amounts of assets and liabilities, revenue Companies Act, 1956 by Airports Authority of and expenses, and disclosure of contingent assets India (AAI) in association with Punjab Government and liabilities at the date of the nancial through Greater Area Development statements. Actual results may differ from those Authority (GMADA) and Haryana Government estimates and assumptions, due to changes in through Haryana Urban Development Authority facts and circumstances. Management reviews (HUDA) to operate and maintain Chandigarh estimates on an ongoing basis using currently International Airport which has come up with a available information and any revision in the new state of art International Airport at Mohali, estimate is recognized in the period in which the Punjab. As per the Joint Venture Agreement, the same is determined. equity contribution is in the ratio of 51.00%, The nancial statements are rounded off in lakhs. 24.50% and 24.50% respectively by AAI, GMADA The nancial statements comply with all and HUDA. AAI's contribution towards its share of applicable IND AS. equity is construction of the New Terminal Building 2. Property, Plant and Equipment (PPE) and allied works. GMADA and HUDA have provided land for the said construction towards Property, Plant and Equipment up to March 31, their equity contribution. CHIAL, has commenced 2015 were carried in the balance sheet in commercial operations on 19thOctober, 2015. accordance with Indian GAAP. The company has elected to avail the exemption granted by IND AS SIGNIFICANT ACCOUNTING POLICIES 101, “First time adoption of IND AS” to regard 1. Basis of preparation of nancial statements those amounts as deemed cost at the date of the The Ministry of Corporate Affairs (MCA) notied transition to IND AS (i.e. as on April 1, 2015). the Companies (Indian Accounting Standards) PPE are stated at their original cost of acquisition Rules, 2015 on 16 February 2015 laying down the less accumulated depreciation. The cost includes roadmap for implementation of Indian cost of subsequent improvements thereto Accounting Standards (Ind AS) to Indian including taxes, duties, freight and other incidental Companies other than banking companies, expenses related to acquisition and installation of insurance companies and non-banking nancial the assets concerned. Advances paid towards companies (NBFCs). As per the roadmap, Ind AS is acquisition of assets, outstanding at each balance applicable to Chandigarh International Airport sheet date are shown under capital advances. The Limited from the nancial year commencing on or cost of xed assets not ready for its intended use on after April 1, 2017. However, CHIAL adopted Ind such date is disclosed as Capital work-in- AS in nancial year 2015-16 voluntarily. progress. The nancial statements have been prepared on Spares parts, stand-by equipments and servicing accrual basis of accounting under historical cost equipments procured along with the Plant & convention, except for following nancial assets Machinery or subsequently which meets the and nancial liabilities which are measured at fair recognition criteria, are capitalized and added in value: the carrying amount of such item. The carrying • Non-current nancial assets such as security amount of those spare parts that are replaced is depositsare measured at fair value at initial derecognized when no future economic benets recognition. are expected from their use or upon disposal. Other machinery spares are treated as “stores & • Non- current nancial liabilities such as spares” forming part of the inventory. security deposits from customers and lease rentals are measured at fair value at initial If the cost of the replaced part or earlier inspection recognition. is not available, the estimated cost of similar new

164 Notes to Financial Statements for the year ended 31st March 2020 parts/inspection is used as an indication of what The depreciable amount of an intangible asset the cost of the existing part/ inspection component with a nite useful life shall be allocated on a was when the item was acquired or inspection systematic basis over its useful life. Amortization carried out. shall begin when the asset is available for use, ie Depreciation is provided on a Straight Line when it is in the location and condition necessary Method ('SLM') over the useful lives of the assets as for it to be capable of operating in the manner per Companies Act 2013/management's intended by management. The amortization estimates. Depreciation for assets purchased / method used shall reect the pattern in which the sold during a period is proportionately charged. asset's future economic benets are expected to be Pursuant to this policy, the rates of depreciation consumed by the entity. If that pattern cannot be determined by the Management are as set out determined reliably, the straight-line method shall below: be used. Useful life has been taken based on the estimates determine by the management. Assets Rates of Dep. Research costs are expensed as incurred. Land 0% Development expenditures on an individual Aprons 19% project are recognized as an intangible asset when Roads, Bridges & Culverts (Carpeted) 19% the company can demonstrate: Roads, Bridges & Culverts (Non-Carpeted) 31.67% Building Terminal/Other Buildings 3.17% • The technical feasibility of completing the Buildings – Temporary 31.67% intangible asset so that the asset will be Boundary Wall 3.17% available for use or sale Computers & I.T. Hardware & Access 31.67% • Its intention to complete and its ability and Computers & I.T. – Servers 15.83% intention to use or sell the asset Plant and Machinery/X-Ray Baggage System 6.33% • How the asset will generate future economic Tools &Equipments / Ofce Appliances 19% benets Furniture and Fixtures Ofce / 9.50% Other Than Ofce • The availability of resources to complete the Vehicles – Cars & Jeeps/Motor Cycles 11.88%/9.50% asset Electrical Installations 9.50% • The ability to measure reliably the expenditure The assets having a cost of ` 5000 or less are during development charged off to expenditure in the year of payment. Following initial recognition of the development Residual value of an asset is taken 5% of the expenditure as an asset, the asset is carried at cost original cost of the asset. less any accumulated amortization and Depreciation method, useful livesand residual accumulated impairment losses. Amortization of values are reviewed periodically, including at each the asset begins when development is complete nancial year end. and the asset is available for use. It is amortized 3. Intangible Assets and Depreciation over the period of expected future benet. Amortization expense is recognized in the Intangible assets acquired separately are statement of prot and loss. measured on initial recognition at cost. Following initial recognition, intangible assets are carried at During the period of development, the asset is cost less any accumulated amortization and tested for impairment annually. accumulated impairment losses. Intangible assets 4. Fair value measurement are recognized only if it is probable that future Fair value is the price that would be received to sell economic benets that are attributable to the asset an asset or paid to transfer a liability in an orderly will ow to the enterprise. Computer software transaction between market participants at the licenses are capitalized on the basis of costs measurement date. Normally at initial incurred to acquire and put to use the specic recognition, the transaction price is the best software. Operating software is capitalized and evidence of fair value. amortized along with the related xed asset.

165 Annual Report 2019-20

Notes to Financial Statements for the year ended 31st March 2020 However, when the Company determines that following categories: transaction price does not represent the fair value, i. at amortized cost, it uses inter-alia valuation techniques that are appropriate in the circumstances and for which ii. at fair value through other comprehensive sufcient data are available to measure fair value, income (OCI), and maximising the use of relevant observable inputs iii. at fair value through prot or loss and minimising the use of unobservable inputs. The classication depends on the following: All nancial assets and nancial liabilities for which fair value is measured or disclosed in the (a) The entity's business model for managing the nancial statements are categorised within the fair nancial assets and value hierarchy. This categorisation is based on (b) The contractual cash ow characteristics of the the lowest level input that is signicant to the fair nancial asset. value measurement as a whole: b. Initial recognition and measurement • Level 1 — Quoted (unadjusted) market prices All nancial assets except trade receivables are in active markets for identical assets or recognised initially at fair value and in the case of liabilities. nancial assets not recorded at fair value through • Level 2 — Valuation techniques for which the prot or loss, transaction costs that are attributable lowest level input that is signicant to the fair to the acquisition of the nancial asset. Transaction value measurement is directly or indirectly costs of nancial assets carried at fair value observable. through prot or loss are expensed in Statement of • Level 3 — Valuation techniques for which the Prot or Loss. Where transaction price is not the lowest level input that is signicant to the fair measure of fair value and fair value is determined value measurement is unobservable. using a valuation method that uses data from Financial assets and nancial liabilities that are observable market, the difference between recognised at fair value on a recurring basis, the transaction price and fair value is recognized in Company determines whether transfers have Statement of Prot or Loss and in other cases occurred between levels in the hierarchy by re- spread over life of the nancial instrument using assessing categorisation at the end of each effective interest rate method. reporting period.•L evel 1 — Quoted (unadjusted) The company measures the trade receivables at market prices in active markets for identical assets their transaction price, if the trade receivables do or liabilities. not contain a signicant nancing component. 5. Financial assets c. Subsequent measurement A nancial asset includes inter-alia any asset that is After initial measurement, nancial assets cash, equity instrument of another entity or classied at amortised cost are subsequently contractual obligation to receive cash or another nancial assets or to exchange nancial asset or measured at amortised cost using EIR method. nancial liability under condition that are Amortised cost is calculated by taking into account potentially favourable to the Company. A nancial any discount or premium on acquisition and fees asset is recognized when and only when the or costs that are an integral part of the EIR. The EIR Company becomes party to the contractual amortisation is included in nance income in the provisions of the instrument. prot or loss. Financial assets of the Company comprise cash Financial assets at fair value through other and cash equivalents, Bank Balances, Advances to comprehensive income are at each reporting date employees/ contractors, security deposit, claims at fair value. Fair value changes are recognized in recoverable etc. OCI. However, the company recognizes interest income, impairment losses and reversals and a. Classication foreign exchange gain or loss in the income The Company classies its nancial assets in the statement. On de-recognition of the nancial

166 Notes to Financial Statements for the year ended 31st March 2020 asset other than equity instruments, cumulative Stores/spares other than recognized as property, gain or loss previously recognised in OCI is plant &Equipments are treated as inventory, which reclassied to income statements. are charged to the Statement of Prot and Loss as Any nancial asset that does not meet the criteria and when they are consumed. for classication as at amortized cost or as The costs of purchase consist of the purchase price nancial assets at fair value through other including duties and taxes (other than those comprehensive income, is classied as nancial subsequently recoverable by the enterprise from assets at fair value through prot or loss. Financial the taxing authorities), freight inwards and other assets at fair value through prot or loss are fair expenditure directly attributable to the acquisition. valued at each reporting date with all the changes Trade discounts, rebates, duty drawbacks and recognized in the income statement. other similar items are deducted in determining d. De-recognition the costs of purchase. The balance of inventory at the end of year, if any, A nancial asset (or, where applicable, a part of a is valued on First in First out basis. nancial asset or part of a group of similar nancial assets) is primarily derecognised when: 7. Revenue recognition • The rights to receive cash ows from the asset Effective from April 1, 2018, Ind-AS 115 has have expired, or been notied by MCA which establishes a comprehensive framework for determining • The company has transferred its rights to whether, how much and when revenue is to be receive cash ows from the asset or has recognised. CHIAL has adopted Ind AS 115 from assumed an obligation to pay the received 1st April 2018 using the modied approach. cash ows in full without material delay to a t h i r d p a r t y u n d e r a ' p a s s - t h r o u g h ' • Revenue is recognized on satisfaction of arrangement; and either (a) the company has performance obligation upon transfer of transferred substantially all the risks and control of promised products or services to rewards of the asset, or (b) the company has customers in an amount that reects the neither transferred nor retained substantially consideration the Company expects to receive all the risks and rewards of the asset, but has in exchange for those products or services. transferred control of the asset. • The Company satises a performance e. Impairment of nancial assets obligation and recognises revenue over time, if one of the following criteria is met: The company recognizes loss allowances using the expected credit loss (ECL) model for the nancial 1. The customer simultaneously receives and assets which are not fair valued through prot or consumes the benets provided by the loss. Loss allowance for trade receivables with no Company's performance as the company signicant nancing component is measured at an performs; or amount equal to lifetime ECL. For all other 2. The Company's performance creates or nancial assets, expected credit losses are enhances an asset that the customer measured at an amount equal to the 12-month controls as the asset is created or ECL, unless there has been a signicant increase in enhanced; or credit risk from initial recognition in which case 3. The Company's performance does not those are measured at lifetime ECL. The amount of create an asset with an alternative use to expected credit losses (or reversal) that is required the Company and an entity has an to adjust the loss allowance at the reporting date to enforceable right to payment for the amount that is required to be recognized is performance completed to date. recognized as impairment gain or loss in prot or loss. For performance obligations where one of the above conditions are not met, revenue is 6. Stores / Spares recognised at the point in time at which the

167 Annual Report 2019-20

Notes to Financial Statements for the year ended 31st March 2020 performance obligation is satised. The cost of deployment on cost reimbursement • The company uses Input/output Method to basis from AAI has been booked based on gross measure an entity's progress towards complete amount reimbursable to AAI in respect of those satisfaction of a performance obligation employees. The liability for retirement and other satised over time. employee benets are booked in AAI books for these employees. • Revenue is measured based on the transaction price, which is updated at each reporting 9. Leases period. It is the consideration, adjusted for The Company assesses at contract inception volume discounts, service level credits, whether a contract is, or contains, a lease. That is, performance bonuses, price concessions and if the contractconveys the right to control the use of incentives, if any, as specied in the contract an identied asset for a period of time in exchange with the customer. Revenue also excludes taxes for consideration. collected from customers. As a lessee Aeronautical Revenue includes revenue from all regulated charges levied at CHIAL i.e. Parking The Company applies a single recognition and Charges, Aviation Security Fee (ASF), User measurement approach for all leases, except for Development Fee, Fuel Throughput Charges and short-term leases and leases of low-value assets. Cargo (X-Bis Screening Charges) are being The Company recognizes lease liabilities to make recognized at the rates prescribed by Airport lease payments and right-of-use assets Economic Regulatory Authority (AERA) & CUTE, representing the right to use the underlying assets. Extension of Watch Hours and Baggage Right-of-use assets reconciliation system fee are recognized at the The Company recognises right-of-use assets at the existing rates being charged on similar lines as of commencement date of the lease (i.e., the date the AAI. Parking charges are recognized, when such underlying asset is available for use). Right-of-use services are provided. Aviation Security Fee (ASF) assets are measured at cost, less any accumulated is recognized as per rate xed by MoCA. User depreciation and impairment losses and adjusted Development Fees is recognized in respect of each for any remeasurement of lease liabilities. The cost embarking passenger at a specied rate. of right-of-use assets includes the amount of lease Non-Aeronautical Revenue means all revenue liabilities recognised, initial direct costs incurred streams other than Aeronautical Revenue. and lease payments made at or before the Thesame consists of (i) revenue from concessions commencement date less any lease incentives (ii) rents and land leases; (iii) food and beverage received. Right-of-use assets are depreciated on a concessions; (iv) utility charges; and (v) other non- straight-line basis over the estimated useful life of aviationrelated charges are recognized based on the assets. The right-of-use assets are also subject the terms of contractual agreement. to impairment. Interest is recognised using the time proportion Lease liabilities method based on rates implicit in thetransaction. Award fees and tender fees are recognised on an At the commencement date of the lease, the accrual basis in accordance with the terms of the Company recognises lease rental liabilities relevant arrangement. measured at the present value of lease payments to be made over the lease term. The lease 8. Retirement and other Employee Benets payments include xed payments (including in- The employees on the roll of the company are on substance xed payments) less any lease deputation/ cost reimbursement basis from incentives receivable, variable lease payments Airports Authority of India (AAI). The statutory that depend on an index or a rate, and amounts deductions towards retirement benets in respect expected to be paid under residual value of these employees are remitted to AAI. guarantees. The Company uses its incremental borrowing rate at the lease commencement date

168 Notes to Financial Statements for the year ended 31st March 2020 because the interest rate implicit in the lease is not from or paid to the taxation authorities. The tax readily determinable. rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at Short-term leases and leases of low-value assets the reporting date in the countries where the The Company applies the short-term lease and company operates and generates taxable income. low-value assets recognition. Lease payments on Current income tax relating to items recognized short-term leases and leases of low value assets outside prot or loss is recognized outside prot or are recognised as expense on a straight-line basis loss (either in other comprehensive income or in over the lease term. equity). Current tax items are recognized in As a lessor correlation to the underlying transaction either in OCI or directly in equity. Lease is classied as a nance lease if it transfers Management periodically evaluates positions substantially all the risks and rewards incidental to taken in the tax returns with respect to situations in ownershipand an operating lease is a lease other which applicable tax regulations are subject to than a nance lease. interpretation and establishes provisions where Whether a lease is a nance lease or an operating appropriate. lease depends on the substance of the transaction Deferred tax rather than the form of the contract. Examples of Deferred tax is recognised on differences between situations that individually or in combination the carrying amounts of assets and liabilities in the would normally lead to a lease being classied as company's nancial statements and the a nance lease are: corresponding tax bases used in the computation of taxable prot and are accounted for using the (a) The lease transfers ownership of the asset to balance sheet liability method. the lessee by the end of the lease term; Deferred tax liabilities are generally recognised for (b) The lessee has the option to purchase the asset all taxable temporary differences, and deferred at a price that is expected to be sufciently tax assets are generally recognised for all lower than the fair value at the date the option deductible temporary differences, unused tax becomes exercisable for it to be reasonably losses and unused tax credits to the extent that it is certain, at the inception of the lease, that the probable that future taxable prots will be option will be exercised; available against which those deductible temporary differences, unused tax losses and (c) The lease term is for the major part of the unused tax credits can be utilised. Such assets and economic life of the asset even if title is not liabilities are not recognised if the temporary transferred; difference arises from the initial recognition of an (d) At the inception of the lease the present value asset or liability in a transaction that at the time of of the minimum lease payments amounts to at the transaction affects neither the taxable prot or least substantially all of the fair value of the loss nor the accounting prot or loss. leased asset; and The carrying amount of deferred tax assets is (e) The leased assets are of such a specialised reviewed at each balance sheet date and reduced to the extent that it is no longer probable that nature that only the lessee can use them sufcient taxable prots will be available against without major modications. which the temporary differences can be utilised. Lease income from operating leases is Deferred tax assets and liabilities are measured at recognized in income on a straight-line basis the tax rates that are expected to apply in the over the lease term of relevant lease. period in which the liability is settled or the asset 10. Taxes realised, based on tax rates (and tax laws) that Current income tax have been enacted or substantively enacted by the balance sheet date. The measurement of deferred Current income tax assets and liabilities are tax liabilities and assets reects the tax measured at the amount expected to be recovered consequences that would follow from the manner

169 Annual Report 2019-20

Notes to Financial Statements for the year ended 31st March 2020 in which the Company expects, at the reporting • It is due to be settled within twelve months after date, to recover or settle the carrying amount of its the reporting period, or assets and liabilities. • There is no unconditional right to defer the Deferred income tax assets and liabilities are offset settlement of the liability for at least twelve when there is a legally enforceable right to offset months after the reporting period current tax assets against current tax liabilities, and when the deferred income tax assets and liabilities The company classies all other liabilities as non- relate to income taxes levied by the same taxation current. authority on either the taxable entity or different 14. Provisions and contingent liabilities taxable entities where there is an intention to settle the balances on a net basis. Provisions are recognised when the company has a present obligation (legal or constructive) as a 11. Earnings per share result of a past event, it is probable that an outow The basic and diluted earnings per share are of resources embodying economic benets will be computed by dividing the net prot/loss after tax, required to settle the obligation and a reliable attributable to equity shareholders for the year by estimate can be made of the amount of the the weighted average number of equity shares obligation. When the company expects some or all outstanding during the year. of a provision to be reimbursed, for example, 12. Cash ow statement under an insurance contract, the reimbursement is Cash ows are reported using the indirect method, recognised as a separate asset, but only when the whereby net prot/loss before tax is adjusted for reimbursement is virtually certain. The expense the effects of transactions of a non-cash nature relating to a provision is presented in the statement and any deferrals or accruals of past or future cash of prot and loss net of any reimbursement. receipts or payments. The cash ows from If the effect of the time value of money is material, operating, investing and nancing activities of the provisions are discounted using a current pre-tax Company are segregated. rate that reects, when appropriate, the risks specic to the liability. When discounting is used, 13. Current versus non-current classication the increase in the provision due to the passage of The company presents assets and liabilities in the time is recognised as a nance cost. balance sheet based on current/ non-current Contingent Liability classication. An asset is treated as current when it is: Contingent liability is meant for claims, litigation, assessment, nes, penalties, etc. are recognised • Expected to be realized or intended to be sold when it is probable that a liability to be incurred, or consumed in normal operating cycle and the amount can be estimated reliably. • Held primarily for the purpose of trading 15. Impairment of assets • Expected to be realized within twelve months The Company assesses at each balance sheet date after the reporting period, or whether there is any indication that anasset may • Cash or cash equivalent unless restricted from be impaired. If any such indication exists, the being exchanged or used to settle a liability for Company estimates the recoverableamount of the at least twelve months after the reporting asset. For an asset that does not generate largely period independent cash inows, therecoverable amount All other assets are classied as non-current. is determined for the cash-generating unit to A liability is current when: which the asset belongs. Ifsuch recoverable amount of the asset or the recoverable amount of • It is expected to be settled in normal operating the cash generating unitto which the asset belongs cycle is less than its carrying amount, the carrying • It is held primarily for the purpose of trading amount is reduced toits recoverable amount. The

170 Notes to Financial Statements for the year ended 31st March 2020 reduction is treated as an impairment loss and is could differ from those estimates. Appropriate recognised inthe Statement of Prot and Loss. If at changes in estimates are made as management the balance sheet date there is an indication that if becomes aware of changes in circumstances apreviously assessed impairment loss no longer surrounding the estimates. Changes in estimates exists, the recoverable amount is reassessed are reected in the nancial statements in the andthe asset is reected at the recoverable period in which changes are made and, if amount. An impairment loss is reversed only to material, their effects are disclosed in the notes to theextent that the carrying amount of asset does the nancial statements. not exceed the net book value that would 17.1 Critical accounting estimates havebeen determined; if no impairment loss had been recognised. The following are the critical judgements that the Company has made in the process of applying the 16. Investments Company's accounting policies and that have the Long-term investments are carried at cost less most signicant effect on the amounts recognised p r o v i s i o n f o r d i m i n u t i o n , o t h e r t h a n in the nancial statement. The following are the temporarydiminution in the value of the estimates used during the year. investments. Property,Plant and Equipment: Property, plant Current investments are carried at the lower of and equipment represent a signicant proportion costand fair value. The comparison of cost and fair of asset base of the company. The charge in value is carried out separately in respect of respect of periodic depreciation is derived after eachinvestment. determining the estimate of an assets expected useful life and the expected residual value at the 17. Use of Estimates end of its life. The useful lives and residual values The preparation of the nancial statements in of company's assets are determined by Schedule II conformity with Ind AS requires management to of Companies Act 2013. make estimates, judgements and assumptions. Provisions: Provisions are determined based on These estimates, judgements and assumptions management estimate required to settle the affect the application of accounting policies and obligation at the balance sheet date. the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at Contingent liabilities: Contingent liabilities are the date of nancial statements and reported disclosed on the basis of judgment of management/independent experts. These are amounts of revenues and expenses during the reviewed at each balance sheet date and are period. Application of accounting policies that adjusted to reect the current management require critical accounting estimates involving estimate. complex and subjective judgements and the use of assumptions in these nancial statements have Contingent Assets: Contingent assets are been disclosed in Note 17.1 Accounting estimates disclosed on the basis of judgment of could change from period to period. Actual results management/independent experts.

For M/s Rajiv Goel& Associates Chartered Accountants For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- (CA Dhruv Goel) (Avneet Kaur) (Rakesh Dembla) (I.N. Murthy) Partner Company Secretary CFO Chairman Membership No. 549569 FRN 011106N Place: Chandigarh Date:

171 Annual Report 2019-20 - as at 2.06 0.56 2020 39.01 21.93 54.27 43.05 15.46 10.61 500.13 Net Block 1,255.59 4,507.28 4,322.53 March 31, 45,318.73 25,213.58 81,304.77 ------as at 2020 March 31, Impairment Accumulated

------63.61 63.61 ments) (adjust Disposal/

------Additions ------as at 2019 63.61 (INR in lakhs) 63.61 April 1, Impairment Accumulated - - 0.27 1.51 4.28 2020 as at 39.18 81.73 36.97 105.65 128.76 323.65

4,176.25 5,206.52 1,517.09 2,881.38 March 31, 14,503.24 depreciation Accumulated

------0.93 8.33 9.26 ments) (adjust Disposal/

- - 6.40 9.94 0.08 0.84 2.14 29.39 28.94 77.85 929.52 371.37 681.16 Additions 1,225.79 3,363.42 - as at 8.33 0.19 0.67 2.14 2019 76.26 39.18 75.32 27.03 April 1, 100.76 245.80

3,246.73 3,980.73 1,145.72 2,200.22 11,149.08 depreciation Accumulated - 0.83 2020 Gross 41.25 80.02 16.97 14.89 144.66 103.65 183.02 823.78 carrying 6,462.11 6,024.37 7,203.92 March 31, value as at 45,318.73 29,389.83 95,808.02

------

2.76 ments 69.92 adjust 105.68 178.36 Disposal/

Notes forming part of the Financial Statements ------0.81 3.86 9.32 29.60 20.37 15.87 15.33 343.11 133.15 571.43 Additions 0.83 1.64 5.56 2019 Gross 41.25 83.28 64.15 April 1, 144.66 185.79 105.68 819.92 carrying 6,461.29 5,751.17 7,070.77 45,318.73 29,360.23 95,414.95 value as at - - - . Hardware . - Servers CISF Security , Plant and Equipment orries & ixtures - freehold - on lease erminal/ emporary ehicles - Security Security Carpeted- - Property articulars urniture & F and otal ools & Equipments P

L Building T Other Buildings Building T Roads, Bridges & Culverts -(Carpeted) Roads, Bridges & Culverts Non- Computers & I.T & Access Computers & I.T Plant & Machinery Equipments Plant & Machinery Equipments T F Electrical Installations Motor V Motor buses,L Ofce Equipments Cars T 2.

172 as at 2.06 7.96 0.64 0.97 3.42 2019 68.40 85.03 97.36 37.12 574.12 Net Block 2,480.57 4,541.85 4,870.54 March 31, 45,318.73 26,113.50 84,202.26 ------as at 2019 63.61 63.61 March 31, Impairment Accumulated

------ments) (adjust Disposal/

------63.61 63.61 Additions ------as at 2018 (INR in lakhs) April 1, Impairment Accumulated - 8.33 0.19 0.67 2.14 2019 as at 76.26 39.18 75.32 27.03 100.76 245.80

3,246.73 3,980.73 1,145.72 2,200.22 March 31, 11,149.08 depreciation Accumulated

------ments) (adjust Disposal/

- 7.67 8.33 8.64 0.08 0.20 1.05 19.43 16.29 29.24 76.81 349.59 606.25 Additions 1,012.28 1,183.90 3,319.75 - - as at 0.11 0.48 1.09 2018 56.83 31.51 59.03 71.52 18.39 April 1, 796.13 168.99

2,234.45 2,796.83 1,593.97 7,829.33 depreciation Accumulated 0.83 1.64 5.56 2019 Gross 41.25 83.28 64.15 144.66 185.79 105.68 819.92 carrying 6,461.29 5,751.17 7,070.77 March 31, value as at 45,318.73 29,360.23 95,414.95

------

ments adjust Disposal/

Notes forming part of the Financial Statements ------0.62 2.34 0.11 47.76 359.19 247.10 105.68 135.97 898.77 Additions - 0.83 2018 Gross 1.64 5.45 82.67 61.81 41.25 April 1, 185.79 772.16 carrying 144.66 6,934.80 6,102.10 5,504.08 value as at 45,318.73 29,360.23 94,516.18 - - - . Hardware . - Servers CISF Security orries & ixtures - freehold - on lease , Plant and Equipment erminal/ emporary ehicles - Security Security Carpeted- - articulars urniture & F and otal ools & Equipments P

L Building T Other Buildings Building T Roads, Bridges & Culverts -(Carpeted) Roads, Bridges & Culverts Non- Computers & I.T & Access Computers & I.T Plant & Machinery Equipments Plant & Machinery Equipments T F Electrical Installations Motor V Motor buses,L Ofce Equipments Cars T Property

173 Annual Report 2019-20

Notes forming part of the nancial statements

3. Capital Work- In- Progress (INR in lakhs) Particulars Balance as at Additions/Adjustments Capitalized Balance as at April 1, 2019 during the year during the year March 31, 2020 Civil & Other Works* 911.95 2,232.40 531.55 2,612.80 Total 911.95 2,232.40 531.55 2,612.80

Capital Work- In- Progress (INR in lakhs) Particulars Balance as at Additions/Adjustments Capitalized Balance as at April 1, 2018 during the year during the year March 31, 2019 Civil & Other Works** 88.01 1,487.63 663.69 911.95 Total 88.01 1,487.63 663.69 911.95

*Civil & Other Works as on 31.03.2020 pertains to followings: 1. Supply Installation Testing and Commissioning of 0 2 Nos of In Line Baggage Screening Systems ` 768.99 lakhs. 2. Soil Testing for Southern Taxiway ` 0.55 lakhs 3. Construction of Apron For 5 Nos Code 4C Type of Aircraft ` 703.64 lakhs. 4. Modication of existing baggage handling system ` 565.21 lakhs 5. SITC of passenger boarding bridge ` 369.84 6. Construction and Electrical work for xed nger ` 161.28 7. SITC of high mast street lights poles, supply and laying of cable LT panel ` 18.86 8. Provision of additional CISF Barracks ` 21.98 lakhs ` 9. Electrical panel near escalators ` 2.45 lakhs. **Civil & Other Works as on 31.03.2019 pertains to followings: 1. SITC of HT cables, Split AC, water cooler, dewatering pump and other electrical items ` 24.27 lakhs. 2. Supply Installation Testing and Commissioning of 0 2 Nos of In Line Baggage Screening Systems ` 675.18 lakhs. 3. Provision of Escalator near lift 7 at CHIAL ` 11.08 lakhs. 4. Construction of Apron For 5 Nos Code 4C Type of Aircraft ` 99.65 lakhs. 5. Supply Installation Testing And Commissioning of 2 Nos 4 Mtr Escalators ` 43.63 lakhs. 6. Door Frame Metal Detectors (DFMD) (USD 26,004.60 @ ` 70.14) ` 18.24 lakhs. 7. Explosive Trace Detectors(ETDs) USD 57,414.00 @ ` 69.51) ` 39.91 lakhs

4. Intangible assets other than Goodwill (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Computer Software Opening balance 2.76 - Addition during the year 24.53 - Deletion during the year - - Closing balance 27.30 -

Accumulated Amortization 0.93 - Addition during the year 1.38 - Deletion during the year Closing balance 2.31 - Net Block 24.99 - 4.1 Company has segregated the intangible assets from the tangible assets as required by division II to schedule III.

174 Notes forming part of the nancial statements

5. Right to use Asset (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Opening balance 105.68 - Addition during the year - Deletion during the year - Closing balance 105.68 -

Accumulated Amortization 8.33 Addition during the year 6.69 Deletion during the year Closing balance 15.02 - Net balance 90.66 - 5.1 MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. Kindly refer note no 33 for the detailed disclosures. 6. Others (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 209 Security Deposits Receivable- Others 32.94 24.43 Total 32.94 24.43 6.1 Company have reclassied the amount of security deposit received from other current nancial assets to other non- current nancial assets in line with Schedule III. Company have not performed the discounting of the same as expected date of refund is not ascertainable.

7. Deferred tax assets/(liabilities) Deferred tax assets and liabilities are attributable to the following: (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Deferred Tax Liability Property, plant and equipment and intangible assets (1,394.48) (1,391.53) Right to use and lease liability (5.66) - Sub Total (1,400.13) (1,391.53) Deferred tax Assets Unabsorbed Depreciation & brought forward losses - 1,190.04 Unamortized preoperative & preliminary Exp. - 28.56 Sub Total - 1,218.60 MAT Credit Entitlement MAT Credit 1,708.42 983.06 Sub Total 1,708.42 983.06 Net Deferred Tax Assets/(Liability) 308.28 810.13

7.1. Movement in deferred tax balances during the year ending March 31st 2020 (INR in lakhs) Particulars "Balance as at Recognised in Balance As at April 1, 2019" prot & loss March 31, 2020 Property, plant and equipment and intangible assets (1,391.53) (2.95) (1,394.48) Right to use and lease liability - (5.66) (5.66) Unabsorbed Depreciation & brought forward 1,190.04 (1,190.04) - losses as per Income Tax Unamortized preoperative & preliminary expenses 28.56 (28.56) - Total (172.93) (1,227.21) (1,400.13)

175 Annual Report 2019-20

Notes forming part of the nancial statements

7.2 Movement in deferred tax balances during the year ending March 31st 2019 (INR in lakhs) Particulars "Balance as at Recognised in Balance As at April 1, 2019" prot & loss March 31, 2020

Property, plant and equipment and intangible assets (1,391.53) (2.95) (1,394.48) Right to use and lease liability - (5.66) (5.66) Unabsorbed Depreciation & brought forward 1,190.04 (1,190.04) - losses as per Income Tax Unamortized preoperative & preliminary expenses 28.56 (28.56) - Total (172.93) (1,227.21) (1,400.13)

7.3 Tax recognised in Statement of prot and loss (INR in lakhs) Particulars For the year Ended For the year Ended March 31, 2020 March 31, 2020 Current income tax Current year 795.84 551.04 Less: MAT Credit (725.36) (551.04) Sub Total (A) (70.48) - Deferred tax expense Origination and reversal of temporary differences (1,227.21) (746.52) Sub Total (B) (1,227.21) (746.52) Total (A+B) (1,297.69) (746.52)

7.4 Reconciliation of effective tax rates (INR in lakhs) Particulars For the year Ended For the year Ended March 31, 2020 March 31, 2020 Prot before tax 4,617.02 2,619.25 Enacted tax Rate 27.82% 29.12% Computed Expected Tax Expenses 1,284.46 762.73 Tax Effect of : MAT payment (795.84) (551.04) Others (Include Transition Reserve) (10.85) (13.38) Effect of change in tax rate* (477.77) (198.31) Current Tax Provision (A) (0.00) (0.00) Current year tax losses for which no deferred tax asset recognised - Deferred tax for the temporary differences (1,227.21) (746.52) Effect of change in tax rate* Deferred Tax Provision (B) (1,227.21) (746.52) Tax Expenses recognised in prot and loss (A+B) (1,227.21) (746.52) * Includes MAT rate and enacted tax rate for current year and, Education cess of 1% higher used in deferred tax computationin previous year 8. Other Non-Current Assets (INR in lakhs) Particulars For the year Ended For the year Ended March 31, 2020 March 31, 2019 Prepaid Expenses 7.00 - Tota 7.00 -

9. Inventory (INR in lakhs) Particulars As at As at March 31, 2020 March 31, 2019 Stock & Spares 5.92 6.24 Total 5.92 6.24

176 Notes forming part of the nancial statements

10. Trade Receivables (INR in lakhs) Particulars As at As at March 31, 2020 March 31, 2019 Trade receivables- Secured- Considered Good 702.41 449.22 Trade receivables- Unsecured- Considered Good 611.99 227.41 Total 1,314.40 676.63 10.1 In the opinion of the company, trade receivables as stated in the accounts will be realized in the ordinary course of business. 11. Cash & Cash Equivalents (INR in lakhs) Particulars As at As at March 31, 2020 March 31, 2019 Balances with Banks 80.40 453.96 Total 80.40 453.96

12. Bank balances other than Cash & Cash Equivalents (INR in lakhs) Particulars As at As at March 31, 2020 March 31, 2019 Bank balances other than above Fixed Deposit and Embarked Balances 16,920.66 11,688.79 (More than 3 months but less than 12 months) Total 16,920.66 11,688.79 12.1 Lien on Fixed Deposits of ` 94.65 lakhs has been created against the supply of Passenger Boarding Bridge amounting to ` 92.46 lakhs and Door Frame Metal Detectors amounting to ` 2.19 lakhs. 12.2 Bank balances other than Cash & Cash Equivalents has been created as separate line item in accordance with Schedule III 13. Other Current Financial Assets (INR in lakhs) Particulars As at As at March 31, 2020 March 31, 2019 (Secured, Considered good) Unbilled Revenue 201.81 390.18 (Unsecured, Considered good) Recoverable from Parties 199.12 199.00 Interest accrued on deposits 314.37 204.06 Amount Receivables From NASFT 122.31 - Security Deposits Receivable- Govt. 302.54 302.44 Total 1,140.14 1,095.68

14. Current Tax Assets (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Tax Deducted at Source AY 2016-17 - 120.52 (Net of Provision for Income Tax) Tax Deducted at Source AY 2017-18 317.50 317.50 (Net of Provision for Income Tax) Tax Deducted at Source AY 2018-19 345.52 278.03 (Net of Provision for Income Tax) Tax Deducted at Source AY 2019-20 390.96 456.90 (Net of Provision for Income Tax) Tax Deducted at Source AY 2020-21 255.42 - (Net of Provision for Income Tax) Total 1,309.39 1,172.95 14.1 Income tax assessments upto Financial Year 2016-17 (AY 2017-18) have been completed and assessment order for the same has been issued by Income Tax department.

177 Annual Report 2019-20

Notes forming part of the nancial statements

15. Other Current Assets (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 GST Input 511.83 9.99 Prepaid Expenses 9.32 22.43 Capital Advances 116.77 100.00 Special Imprest 0.49 - Total 638.41 132.42 15.1 We have reclassied the inputs of GST amounting ` 7.85 Lakhs pertaining to previous year from other current liability to other current assets 16. Equity Share Capital (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Share Capital Authorized 1,20,00,00,000 equity shares of ` 10/- each 120,000.00 120,000.00 Issued, subscribed and fully paid 96,94,49,405 equity shares of ` 10/- each 96,944.94 96,944.94 Total 96,944.94 96,944.94

Reconciliation of share Capital: (INR in lakhs) Particulars As at March 31, 2020 No of Shares Amount Opening Equity Shares 9,694.49 96,944.94 Add:-No. of Shares, Share Capital issued/ - - subscribed during the year Closing balance 9,694.49 96,944.94

(INR in lakhs) Particulars As at March 31, 2019 No of Shares Amount Opening Equity Shares 9,694.49 96,944.94 Add: -No. of Shares, Share Capital issued/ - - subscribed during the year Closing balance 9,694.49 96,944.94

Details of shareholders holding more than 5% shares in the Company (INR in lakhs) Name of the Shareholder As at March 31, 2020 As at March 31, 2019 Airports Authority of India (AAI)-51% 4,944.19 4,944.19 Greater Mohali Area Development Authority 2,375.15 2,375.15 (GMADA)-24.5% Haryana Shahari Vikas Pradhikaran (HSVP)*-24.5% 2,375.15 2,375.15 * Erstwhile Haryana Urban Development Authority (HUDA) 17. Other Equity (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Retained Earnings Opening Balance 576.45 (1,303.24) Finance lease Adjustment - 6.96 Surplus / (Decit) in Statement of Prot and Loss 3,319.33 1,872.73 Total 3,895.78 576.45

178 Notes forming part of the nancial statements

18. Borrowings (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Long term maturities of nance lease obligations - 70.32 Total - 70.32 18.1 MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. Kindly refer note no 33 for the detailed disclosures. 19. Other Non-Current Financial Liabilities (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Security Deposits 1,838.08 456.67 Lease Liability 53.95 - Total 1,892.03 456.67 19.1 MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. Kindly refer note no 33 for the detailed disclosures.

20. Other Non-Current Financial Liabilities (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Deferred Fair Valuation Gain - Security Deposits 497.68 239.38 Total 497.68 239.38

21. Other Current Financial Liabilities (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Security Deposits 663.30 1,190.69 Airports Authority of India 108.26 109.47 Liability of Pay & Allowances 10.98 8.70 Expenses Payable 839.66 1,162.81 Current maturities of nance lease obligations - 14.85 Withheld 361.63 9.72 Lease liability 16.37 - Others 0.75 0.19 Total 2,000.95 2,496.44 21.1 MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. Kindly refer note no 33 for the detailed disclosures. 21.2 We have reclassied the amount of ` 9.72 lakhs pertaining to previous year related to withheld liabilities from other current liability to other current nancial liability 21.3 Amount withheld includes amounts deducted and payable after fullment of the contractual obligation to capital creditors as well as other suppliers in the normal course of business.

22. Other Non-Current Financial Liabilities (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Duties & Taxes 136.59 96.97 Deferred Fair Valuation Gain - Security Deposits 15.56 12.83 Deferred Revenue- Government Grant 298.59 281.00 Other liabilities 1.10 0.43 Total 451.84 391.23 22.1 Duties & Taxes of the Current Year includes statutory liabilities of ` 29.82 lakhs on account of TDS, ` 104.35 lakhs on account of GST & ` 2.42 lakhs on account of Labour Cess payable.

179 Annual Report 2019-20

Notes forming part of the nancial statements

23.0 Current Provisions (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Other provisions* 107.54 - Total 107.54 -

* A Power Purchase agreement dated 12.07.2016 was executed between CHIAL and Renew Solar Power Private Limited for installation of Solar Power Plant of 5 MWp which will be executed in two phases. In Phase I, plant with capacity of 3MWp will be installed and balance 2MWp will be installed on the requirement basis in future. M/s Renew Solar Private Limited will supply 100% of the generated power from 3MWp Solar Power Plant set up by agency to CHIAL. The tariff quoted by the party being the lowest bidder was ` 4.64 per unit. Due to pending approval of NET METERING with Punjab State Power Corporation Limited(PSPCL), the agency was not able to produce power at full capacity. Therefore M/s Renew Solar Power Private Limited has claimed for the full amount as per plant capacity and convey that they are deprived of utilisation of plant at its full capacity resulting in loss of generation because of restrictions and therefore underutilized capacity may be considered as deemed power generation. The amount claimed by M/s Renew solar power limited towards deemed power generation amounting to ` 3.21 crores whereas CHIAL has acknowledged and paid for in respect of energy actually being consumed. In this regard Dispute Resolution committee was formed on request of agency i.e. M/s Renew Solar Power Private Limited and after detailed deliberation DRC has given a decision on the methodology for acceptance of claim which is 50% of the amount worked out and certied by Engineer-in-charge in respect of claim of deemed loss generation, subject to approval of competent authority for acceptance of claim. The claim submitted by M/s Renew Power has been scrutinized by the Engineer In Charge and amount payable worked out to `10754844/- which will be submitted to the competent authority after acceptance of claim by agency. The company had disclosed a contingent liability in this regard in its nancial statements for FY 2018-19, however upon determination of methodology of payment by DRC, has recognised provision of ` 10754844/- based on scientic calculations by the engineer-in-charge. The same is line with IND AS-37-Provisions, Contingent Liabilities and Contingent Assets as well as IND-AS 10 Events after Reporting Period.

23. Revenue From Operations (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019

Sale of services I. Aeronautical Revenue Parking & Housing 8.82 4.24 User Development Fees 6,604.70 5,949.40 Extension of Service Hours 0.37 5.88 Ground Handling Services 110.42 86.72 Throughput Charges* 84.87 88.52 Baggage Reconciliation System Charges 37.62 13.50 Common User Terminal Equipment Charges 206.85 177.81 Cargo Revenue 55.31 49.11 Total 7,108.96 6,375.17 II. Passenger Service Fee (Security)** 362.96 1,323.35 III. Non-aeronautical Revenue Admission Fees/Commercial Passes 4.86 10.36 Car Parking 274.73 469.09 Rent & Services 872.58 1,161.24 Trading Concession 2,322.97 1,378.73 In-Flight Catering Service 7.45 - Total 3,482.60 3,019.42 Total(I+II+III) 10,954.52 10,717.94 23.1 *Consequent to MoCA and AERA Order Throughput Charges has been discontinued from 15.01.2020 23.2 ** After formation of NASFT all the revenue & Expenditure of CISF to be absorbed by trust resulting in reduction of PSF (Security) Revenue which is now named as Aviation Security Fee (ASF)

180 Notes forming part of the nancial statements

24. Other Income (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Interest on Term Deposits 894.09 652.18 Fair Valuation Gain 138.15 72.55 Reversal of excess Liability * 29.57 - Miscellaneous Income** 37.20 17.47 Total 1,099.00 742.20 24.1 *On request of CISF, Company have made the liability amounting ` 30 lakhs for Arms & Ammunition and ` 21 lakh for clothing and equipment's in the previous year based on the best estimate available at that time. However, in the current year actual payment claimed on account of above is amounting to ` 6.27 lakhs for Arms & Ammunition and for ` 15.15 lakhs for clothing & equipment resulting in reversal of excess liability amounting to ` 29.57 lakhs. 24.2 **In previous year, this includes withheld amount of ` 4.84 lakhs which were not claimed by parties, the same has been transferred to Misc. Income.

25. Employee Benet Expenses (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Pay & Allowances 124.78 74.18 Contribution to Provident Fund and other funds 6.94 5.99 Other Staff Cost - 0.50 Cost of Staff Deployment of AAI 408.32 408.04 Total 540.04 488.71

26. Finance Cost (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Interest due to fair valuation -Security Deposit 138.15 72.55 -Lease 6.90 8.00 Total 145.05 80.54

27. Depreciation and Amortization Expenses (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Depreciation on Tangible assets 3,363.42 3,319.74

Amortisation on Intangible assets 1.38 - Depreciation on Right to use assets 6.69 - Total 3,371.49 3,383.35 27.1 MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. Kindly refer note no 33 for the detailed disclosures.

181 Annual Report 2019-20

Notes forming part of the nancial statements

28. Other Expenses (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Operating Expenses Repair & Maintenance - Civil 356.27 303.83 - Electrical 272.69 205.21 - Equipment & Furniture 108.04 80.43 - Electronics & IT Infrastructure 3.19 3.64 Housekeeping & Cleaning Works 381.24 388.36 Advertisement & Publicity 18.27 13.63 Consumption of Stores & Spares 72.34 88.33 Electricity & Water Charges 814.91 592.42 Rent, Rates & Taxes 7.01 7.02 Security Expenses Pay & Allowances and Other Staff Cost 779.15 2,586.09 Vehicle Running & Hire Charges 12.34 37.07 Other Miscellaneous Expenses 13.07 150.97 Other Administrative Expenses Postage, Telegram, Telex 0.98 1.00 Printing & Stationery 11.81 5.10 Telephone Charges 2.29 2.75 Travelling Expenses 22.16 16.35 Consultancy Charges 60.42 59.74 Insurance Expense 2.33 2.79 Bad debts 21.89 - Payment to Auditors - Audit Fee - Statutory Audit 1.00 1.00 - Audit Fee - Other Audit 3.15 3.68 Training & Seminar Expenses 0.61 6.00 Facilitation Expenses 195.97 72.51 Hire Charges - Others 111.02 178.91 Board Meeting Expenses 1.32 2.54 Collection Charges on PSF/UDF 52.56 57.18 Other Expenses 3.67 0.35 Miscellaneous Ofce Expenses 3.04 5.29 Subscription (Professional bodies) 30.82 15.30 Corporate Social Responsibility 16.38 - Foreign Currency Fluctuation - 0.78 Total 3,379.92 4,888.28 28.1 CHIAL in its 44th Board Meeting has approved to impair the amount receivable from Custom & Immigration department. This amount is long outstanding and are under disagreement with the said department. Currently, this matter has been taken up by custom & immigration department with MHA through MoCA for issuing suitable directions. Company have recognise the amount of Rs. 21.89 lakhs as the impairment on trade receivable during the year. However, company will continue to raise the claim on the same till the decision being communicated on matter by MoCA.

182 Notes forming part of the nancial statements

29. Disclosures in respect of Ind AS 107 - Financial Instruments 29.1 Financial Instruments by Categories The carrying value and fair value of nancial instruments by categories were as follows:a (INR in lakhs) Particulars March 31, 2020 Amortized fair value Total Total cost Through Other Through carrying fair Comprehensive Prot or value value Income Loss Total Financial Assets: Cash & Cash Equivalents 80.40 - - 80.40 80.40 Bank balances other Cash & Cash Equivalents 16,920.66 - - 16,920.66 16,920.66 Trade Receivable 1,314.40 - - 1,314.40 1,314.40 Other non-current nancial assets 32.94 - - 32.94 32.94 Other current Financial Assets 1,140.14 - - 1,140.14 1,140.14 Total Financial Assets 19,488.54 - - 19,488.54 19,488.54 Financial Liabilities: Lease liability 70.32 - - 70.32 70.32 Security Deposits (except deferred 2,501.37 - - 2,501.37 2,501.37 fair valuation portion) Other Financial Liabilities 1,321.27 - - 1,321.27 1,321.27 Total Financial Liabilities 3,892.97 - - 3,892.97 3,892.97

(INR in lakhs) Particulars March 31, 2019 Amortized fair value Total Total cost Through Other Through carrying fair Comprehensive Prot or value value Income Loss Total Financial Assets: Cash & Cash Equivalents 453.96 - - 453.96 453.96 Bank balances other Cash & Cash Equivalents 11,688.79 - - 11,688.79 11,688.79 Trade Receivable 676.63 - - 676.63 676.63 Other non-current nancial assets 24.43 - - 24.43 24.43 Other current Financial Assets 1,095.68 - - 1,095.68 1,095.68 Total Financial Assets 13,939.49 - - 13,939.49 13,939.49 Financial Liabilities: Borrowing 85.17 85.17 85.17 Security Deposits (except deferred 1,647.36 - - 1,647.36 1,647.36 fair valuation portion) Other Financial Liabilities 1,290.90 - - 1,290.90 1,290.90 Total Financial Liabilities 3,023.44 - - 3,023.44 3,023.44 29.2 Fair Value Hierarchy The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

183 Annual Report 2019-20

Notes forming part of the nancial statements

• Level 1 - Level 1 hierarchy includes nancial instruments measured using quoted prices (unadjusted) in active markets. • Level 2 - Level 2 hierarchy includes nancial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 - Level 3 hierarchy includes nancial instruments measured using inputs that are not based on observable market data (unobservable inputs). The following table present fair value hierarchy of assets and liabilities measured at fair value :- (INR in lakhs) Particulars Level 1 Level 2 Level 3 Total Valuation Key inputs Technique and Signicant unobservable inputs As at March 31, 2020 Financial Liabilities at amortised cost: Security Deposits - 2,501.37 - 2,501.37 By using the Valued at MCLR discounted cash rate of SBI as on ow method 01/04/2019- 8.75% As at March 31, 2019 Financial Liabilities at amortised cost: Security Deposits - 1,647.36 - 1,647.36 By using the Valued at MCLR discounted cash rate of SBI as on ow method 01/04/2018- 8.35% 1,647.36 1,647.36

Fair value of nancial assets and nancial liabilities measured at amortized cost :- (INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Carrying Amount Fair value Carrying Amount Fair value before fair value before fair value Financial Liabilities: Security Deposit 3,014.62 2,501.37 1,899.56 1,647.36 The carrying amount of nancial instruments other than security deposits such as trade receivables, cash and cash equivalent, other nancial assets, trade payables and other nancial liabilities are considered to be the same as their fair values, due to their short-term nature, absence of any transaction cost etc. 29.3 Financial risk management Financial risk factors The Company's activities expose it to a variety of nancial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of nancial markets and seek to minimize potential adverse effects on its nancial performance. The following table present fair value hierarchy of assets and liabilities measured at fair value :- (INR in lakhs) Risk Exposure arising from Measurement Management Market risk- Interest rate No such signicant risk Credit risk Cash and cash equivalents, Ageing analysis Diversication of bank deposits in public trade receivables sector banks and trade debtor are secured by security deposit or bank guarantee etc. Liquidity risk Borrowings and other Rolling cash ow Maintaining adequate cash and cash liabilities forecasts equivalent a) Market Risk The company does not have any signicant market risk. b) Credit Risk Credit risk refers to the risk of default on its obligation by the counterparty resulting in a nancial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables and unbilled revenue. Accordingly, credit risk from trade receivables has been separately evaluated from all other nancial assets in the following paragraphs.

184 Notes forming part of the nancial statements

(I) Trade Receivables & Unbilled Revenue "The company has outstanding trade receivables amounting to ` 1,314.40 lakhs and ` 676.63 lakhs as of March 31, 2020 and March 31, 2019 and unbilled revenue amounting ` 201.81 lakhs and 390.18 lakhs for respectively. Trade receivables and unbilled revenue are typically secured by bank guarantee or security deposit and are derived from revenue earned from customers. On account of adoption of Ind-AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experienced and adjusted for forward- looking information. The expected credit loss allowance is based on ageing of the days the receivables are due."

Credit risk exposure An analysis of age of trade receivables and unbilled receivables at each reporting date is summarized as follows: (INR in lakhs) Particulars March 31, 2020 March 31, 2019 Gross Amount Impairment Gross Amount Impairment Less than thirty days 702.09 - 81.91 - Past due more than one month but not 285 - 317.45 - more than three months Past due more than three months but not 210.71 - 110.02 - more than six months Past due more than six months but not 45.12 - 85.02 - more than one year More than one year 71.48 21.89 82.23 - Total 1,314.40 21.89 676.63 - Company during the year has recognised the impairment on trade receivables. Kindly refer note no. 28.1. No other impairment has been recognised as company have good experience with their debtors in the past. (ii) nancial assets other than trade receivables and unbilled revenue Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with such banks that are majority owned by the Government of India and subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. There are no impairment provisions as at each reporting date against these nancial assets. We consider all the other nancial assets as at the reporting dates to be of good credit quality. The company does not hold any collateral or other enhancements to cover its credit risks associated with its other nancial assets. c) Liquidity Risk Our liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal sources of liquidity are cash and cash equivalents, cash generated from operations & contribution in the form of share capital. We manage our liquidity needs by continuously monitoring cash inows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls. Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues and retention & deposits arising during the normal course of business as of each reporting date. We maintain a sufcient balance in cash and cash equivalents to meet our short term liquidity requirements. We assess long term liquidity requirements on a periodical basis and manage them through internal accruals. In the nancial year 2019-20, company has not taken any loans from any of the sources. Our non-current liabilities include security deposits only. The table below provides details regarding the discounted contractual maturities of non-derivative nancial liabilities. The table includes both principal & interest cash ows. For the year ended For the year ende

185 Annual Report 2019-20

Notes forming part of the nancial statements

(INR in lakhs) Particulars Less than 6 6 months 1-3 years 3-5 years More than Total months to 1 year 5 years March 31, 2020 Lease liability* 8.19 8.19 37.70 16.25 - 70.32 Security deposits 504.56 158.74 1,374.56 175.38 288.13 2,501.37 Other Financial Liabilities 1,321.27 - - - - 1,321.27 Total 1,834.02 166.93 1,412.27 191.63 288.13 3,892.97 March 31, 2019 Finance lease obligation 7.43 7.43 34.24 36.08 - 85.17 Security Deposits 884.79 276.49 107.90 66.22 311.97 1,647.36 Other Financial Liabilities 1,281.18 - - - - 1,281.18 Total 2,173.39 283.91 142.14 102.30 311.97 3,013.71 * Refer disclosures under Ind AS 116 The table below provides details regarding the undiscounted contractual maturities of non-derivative nancial liabilities. The table includes both principal & interest cash ows. (INR in lakhs) Particulars Less than 6 6 months 1-3 years 3-5 years More than Total months to 1 year 5 years March 31, 2020 Lease liability* 11.03 11.03 44.99 17.28 - 84.35 Security Deposits 510.62 168.24 1,611.70 253.63 470.43 3,014.62 Other Financial Liabilities 1,321.27 - - - - 1,321.27 Total 1,842.93 179.28 1,656.69 270.91 470.43 4,420.24 March 31, 2019 Finance lease obligation 10.88 10.88 44.31 40.03 106.10 Security Deposits 121.59 859.28 512.78 316.70 89.21 1,899.56 Other Financial Liabilities 1,290.90 - - - - 1,290.90 Total 1,423.37 870.15 557.10 356.73 89.21 3,296.56 *Refer disclosures under Ind AS 116 30. Capital Management "The Company’s objective in managing its capital is to safeguard its ability to continue as a going concern and to optimise returns to our shareholders. The Company considers the following components of its Balance Sheet to be managed capital:1) Share Capital, 2) Other Reserves comprising of Retained Earnings. The Company’s capital structure is based on the Managements assessment of the balances of key elements to ensure strategic decisions and day to day activities. The capital structure of the Company is managed with a view of the overall macro economic conditions and the risk characteristics of the underlying assets.The Company’s policy is to maintain a strong capital structure with a focus to mitigate all existing and potential risks to the Company, maintain shareholder, vendor and market condence and sustain continuous growth and development of the Company.The Company’s focus is on keeping a strong total equity base to ensure independence, security, as well as high nancial exibility without impacting the risk prole of the Company. In order, to maintain or adjust the capital structure, the Company will take appropriate steps as may be necessary. The Company does not have any debt or nancial covenants." 31. Disclosure in respect of Indian Accounting standard (Ind AS)-108: "Operating Segments" Based on the “management approach” as dened in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments. The Company is in the business of operations of the Airport at Chandigarh International Airport Limited at Mohali. Consequently, the Company does not have separate business segment. (i) Information about major customers If revenues from transactions with a single external customer amount to 10 per cent or more of an entity’s revenues, the entity shall disclose that fact, the total amount of revenues from each such customer, and the identity of the segment or segments reporting the revenues. The same is disclosed as follows:-

186 Notes forming part of the nancial statements

(INR in lakhs) Particulars Year ended March Year ended March 31, 2020 No of customers 2 2 Total Revenue from above customers 5,193.04 4,678.39 Total Revenue 10,954.52 10,717.94 % of Total Revenue 47.41% 43.65%

(ii) Geographical Information Revenue from external customers by location of operations and information about its non current assets by location of assets are as follow :- (INR in lakhs) Particulars Non Current Assets Revenue from External Customers 3/31/2020 3/31/2019 3/31/2020 3/31/2019 India 84,033.22 85,114.21 10,954.52 10,717.94 Total 84,033.22 85,114.21 10,954.52 10,717.94

(iii) Revenue from Major products and services Please refer note no. 23 for details of major product and services 32 Disclosure in respect of Indian Accounting Standard 24 "Related Parties Disclosures" 32.1 Disclosures for Other than Govt. Related Entities a. During the nancial year, the Company had entered into related party transactions which were on arm's length basis and in the ordinary course of business. b. List of Related Party Name of related party Type of Relationship FY: 2019-20 FY: 2018-19 Sh. Ajay Kumar Chief Executive Ofcer ü Sh. Suneel Dutt Chief Executive Ofcer ü ü Sh. Rakesh Dembla Chief Financial Ofcer ü ü Smt. Avneet Kaur Company Secretary ü ü Airports Authority of India Stakeholder ü ü Greater Mohali Area Development Authority Stakeholder ü ü (GMADA) Haryana Shahari Vikas Pradhikaran (HSVP) Stakeholder ü ü [Erstwhile Haryana Urban Development Authority (HUDA)] c. Compensation of key managerial personnel (INR in lakhs) Particulars For the year For the year ended March 31, 2020 ended March 31, 2019 Short-term benets 124.78 74.68 Post-employment benets 6.94 5.99 Total 131.72 80.67 d. Transactions with Related Parties (INR in lakhs) FY 2019-20 Name of Party Issue of Procurement Staff Deployment Amount Others shares of Assets Cost Recoverable Airports Authority of India - 6.26 512.33 (186.50) 28.86 Greater Mohali Area Development - - - - 21.73 Authority (GMADA)

187 Annual Report 2019-20

Notes forming part of the nancial statements

(INR in lakhs) FY 2018-19 Name of Party Issue of Procurement Staff Deployment Amount Others shares of Assets Cost Recoverable Airports Authority of India - - 473.36 (186.50) (69.32) Greater Mohali Area Development - - - - - Authority (GMADA) e. Closing Balance (INR in lakhs) Name of Party "Balance as on " Balance as on March 31, 2020 March 31, 2019 Airports Authority of India 108.26 109.47

33 Disclosure in respect of Indian Accounting standard (Ind AS) 116 and 17 "Leases" 33.1 As Lessee (a) Description of lease arrangements :- Arrangement to supply X-Ray Baggage Machine to the company and payment will be made in a tenure of 6 years. The subject lease is a cancellable lease and it include terms such as transfer of ownership to lessee at the end of lease term & also covering major economic life of the machine. Accordingly, company has classied this lease as nance lease in FY 2018-19 as per the provisions of IND AS 17. MCA has notied IND AS 116 and the same is effective from April 1, 2019.CHIAL has applied the same & recognise the right to use asset and corresponding liability. (b) Policy followed under Ind AS 17:- CHIAL has classied this lease as operating lease in FY 2017-18 based on the their previous assessment. In FY 2018-19, it has classied this lease as nance lease as per the provisions of IND AS 17. Consequently, company has recognized the nancial lease obligation in 2018-19 and corresponding last nancial year. Company has recognized the nance cost of nancial lease obligation and depreciation on the lease asset as an expense in FY 2018-19. (c) Change in Accounting Policy as per Ind AS 116 The company has applied Ind AS 116 with the date of initial application of 1st April, 2019. As a result, the company has changed its accounting policy for lease contracts. The company has applied Ind AS 116 after being notied by MCA, under which the cumulative effect of initial application is recognized in retained earnings at 1st April, 2019 which is nil. Corresponding comparatives are also not restated as per Ind AS 116. As per Para C11 of Ind AS 116, for leases that were classied as nance leases applying Ind AS 17, the carrying amount of the right-of-use asset and the lease liability at the date of initial application shall be the carrying amount of the lease asset and lease liability immediately before that date measured applying Ind AS 17. Hence, the carrying amount of lease asset in case of lease of X-Ray baggage machine, we have carried forward the same amount as right to use asset as per Ind AS 116. Right of use assets (Net) of ` 97.36 Lakhs and lease liabilities of ` 85.17 Lakhs have been recognised as on 1 April 2019. There is only one class-plant and machinery for right to use assets. The impact of change in accounting policy as on April 1, 2019 on account on adoption of Ind AS 116 is as follows :- (INR in lakhs) Particulars Amount Decrease in Property Plant and equipment (Net) 97.36 Decrease in nance lease obligations as per Ind AS 17 85.17 Increase in rights of use 97.36 Increase in lease liability 85.17 There is no effect on Earnings per Share on the company on application of Ind AS 116. (d) Maturity Analysis of lease liability Maturity analysis has already been disclosed under the liquidity risk section in note 29.3 33.2 As lessor a) Operating Lease • Future minimum lease payments under non-cancellable operating leases

188 Notes forming part of the nancial statements c. Compensation of key managerial personnel (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Not later than 1 year 581 768 Later than 1 year and not later than 5 years Nil Nil Later than 5 years Nil Nil

34 Disclosure in respect of Indian Accounting Standard (Ind AS)-33 "Earnings Per Share(EPS)" a) Basic EPS The earnings and weighted average number of ordinary shares used in the calculation of basic EPS and diluted EPS is as follows: " (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Prot (loss) for the year, attributable to the owners of 3,319 1,873 the company (In `) Earnings used in calculation of basic earnings per share(A) 3,319 1,873 Weighted average number of ordinary shares for the purpose 9,694 9,694 of basic earnings per share(B) (In Units) Basic EPS(A/B) 0.34 0.19 b) Diluted EPS The earnings and weighted average number of ordinary shares used in the calculation of Diluted EPS is as follows: (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Prot (loss) for the year, attributable to the owners of 3,319 1,873 the company (In `) Earnings used in calculation of basic earnings per share(A) 3,319 1,873 Weighted average number of ordinary shares for the purpose 9,694 9,694 of basic earnings per share(B) (In Units) Diluted EPS(A/B) 0.34 0.19

35 Value of Components, spare parts & stores: (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 (i) Imported - - (ii) Indigenous 5.92 6.24

36 Statutory Auditor Remuneration (INR in lakhs) Particulars For the year ended For the year ended March 31, 2020 March 31, 2019 Audit Fees- Statutory Audit 1.00 1.00 Total 1.00 1.00

36 Disclosure in respect of Indian Accounting Standard (Ind AS)-33 "Earnings Per Share(EPS)" a) Basic EPS The earnings and weighted average number of ordinary shares used in the calculation of basic EPS and diluted EPS is as follows: "

189 Annual Report 2019-20

Notes forming part of the nancial statements

37 Contingent Liabilities: M/s CITCO was awarded the executive lounge on international side after operationalisation of the Airport. Thereafter, on request of CITCO, to make their project commercially viable, CHIAL considered the request and award the contract for executive lounge of Domestic as well considering that the footfall on the international side was not adequate. Later on 25.4.2018, CITCO served 30 days’ notice for termination of contract of lounge on International side only and want to continue lounge for Domestic Side only which was not agreed by CHIAL as the contract for Domestic side was awarded only to compensate the losses of International side and requested to continue both the executive lounges. However, CITCO vacated International Lounge on 25.05.2018. Thereafter, CHIAL was left with no other option but to terminate the license of Domestic Lounge also. Thus, CITCO led a Civil suit at Mohali district court and the same is pending for the consideration. 38 Capital Commitments "(a) Capital Commitments: Estimated amount of contracts remaining to be executed on capital account is Rs.5,032 lakhs as on March 31, 2020(b) Capital Commitments: Estimated amount of contracts remaining to be executed on capital account is ` 12,037.48 lakhs as on March 31, 2019." 39 Government Grant During Financial year 2018-19, company had received a sum of ` 281.00 lakhs as Government Grant under the “Trade Infrastructure for Export Scheme (TIES)” for “Setting up of Centre for Perishable Cargo (CPC) at Chandigarh International Airport”. The said grant was not utilised in either the said year or the relevant period and the company had segregated the amount in a separate account resulting which interest of ` 17.59 lakhs accrued on the same and the same has been treated as a part of the grant. The grant is therefore recognised at Rs. 298.59 lakhs as on 31.03.2020 and reected as current liability. 40 Details of Expenditure in foreign currency:- A. In Current Year 2019-20 1. Explosive Trace Detectors(ETDs) (USD 28,309.50) ` 20.47 lakhs. 2. Supply installation testing commissioning of 03 nos of Passenger Boarding Bridges (PBB )and Advance Visual Docking System (AVDGS) ( USD 8,04.115.48) ` 590.70 lakhs 3. Arrival & Departure survey (USD 29016.50) `19.13 lakhs B. In Previous Year 2018-19 1. Door Frame Metal Detectors (DFMD) (USD 26,004.60) Rs. 18.23 lakhs 2. Supply Installation Testing and Commissioning of 02 Nos. of In Line Baggage Screening Systems (USD 9,56,346.52) ` 675.18 lakhs 3. Explosive Trace Detectors(ETDs) (USD 57,414.00) ` 39.91 lakhs. 4. Departure survey (USD 12250) ` 10.49 lakhs.

41 Disclosure as per Indian Accounting Standard (Ind AS) 115 - "Revenue from Contracts with Customers" 41.1 The Company adopted Ind AS 115 using the modied retrospective method of adoption with the date of initial application of 1 April 2018. 41.2 Revenue from Contracts with Customers: a) Description of all the services (i) Aeronautical Revenue Aeronautical Revenue includes revenue from all regulated charges levied at CHIAL i.e. Parking Charges, Aviation Security Fee(ASF), User Development Fee, Fuel Throughput Charges and Cargo (X-Bis Screening Charges) are being recognized at the rates prescribed by Airport Economic Regulatory Authority (AERA) & CUTE, Extension of Watch Hours and Baggage reconciliation system fee are recognized at the existing rates being charged on similar lines as of AAI. Parking charges are recognized, when such services are provided. Aviation Security Fee(ASF) is recognized as per rate xed by MoCA. User Development Fees is recognized in respect of each embarking passenger at a specied rate. (ii) Non- Aeronautical Revenue "Non-Aeronautical Revenue means all revenue streams other than Aeronautical Revenue. The same consists of (i) revenue from concessions (ii) rents and land leases; (iii) food and beverage concessions; (iv) utility charges; and (v) other non- aviation related charges are recognized based on the terms of contractual agreement."

190 Notes forming part of the nancial statements b) Disaggregation of revenue 1 Company has identied their revenue as Aeronautical revenue and Non- Aeronautical Revenue. We have disclosed the detailed disaggregation of the Company’s revenue from contracts with customers in note no. 23 " Revenue from operations". 2 The company's revenue is from domestic market. 3 Company mainly have the revenue recognized over the period of time. c) Trade Receivables and Contract Balances The following table provides the information about receivables and contract liabilities from contracts with customers :-

(INR in lakhs) Particulars As at March 31, 2020 As at March 31, 2019 Trade Receivable (Net)- Opening 676.63 1,372.37 Additions 13,196.50 13,100.48 Deletion 12,558.73 13,796.22 Closing 1,314.40 676.63 Contract Assets- Opening - Unbilled Receivables 390.18 369.73 Additions 201.81 390.18 Deletion 390.18 369.73 Closing 201.81 390.18 d) Trade receivables are non-interest bearing and are generally are on following terms :- (i) Credit period allowed upto 30th June 2019 was 15 days from the date of receipt of bills has been changed to 10 days from the date of issue of bills from 1st July 2019 in case of Aeronautical Revenue. (ii) Credit Period allowed of 10 days from the issue of bills in case of Non- Aeronautical Revenue e) During the year, management has not received any communication in respect of unsatised revenue contract.

42. As per section 135 and rules made thereunder of Companies Act, 2013; Company shall spend the minimum CSR expenditure amounting to ` 16.30 lakhs computed at two per cent of the average net prots of the company made during the three immediately preceding nancial years in the year ended 31 March 2020 which is ` 814.69 lakhs. Company have spend amount of `16.38 lakhs on CSR Activities. There is no unspent amount remained during the year. 42.1 Activities on which CSR expenditure have been made: (INR in lakhs) Organisation Activity undertaken Amount A. Construction/acquisition of any asset IDSP Unit, Civil Surgeon Ofce Mohali Distribution of Computer and other Peripherals 1.05 B. On Other purposes IDSP Unit, Civil Surgeon Ofce Mohali Distribution of Bed Sheets, Pillow And Pillow Cover 3.89 Civil Hospital, Ambala Cantt. Distribution of High Risk PPE Covid 19 Kit 1.93 IDSP Unit, Civil Surgeon Ofce Mohali Distribution of N95 Mask 6.93 PM Cares Fund Donation to PM care fund 1.80 Civil Hospital, Ambala Cantt. Distribution of Nebulizer Machines 0.78 Total 16.38

43 The COVID-19 pandemic is an evolving human tragedy declared a global pandemic by the World Health Organisation with adverse impact on economy and business. In view of global pandemic–COVID-19, the Govt. of India (GoI) has taken various preventive measures including a lockdown all over the country to curb the further outspread of disease. In pursuance to the instruction of GoI, DGCA vide circular no. 4/1/2020-IR dated 23.03.2020, conveyed for closure of commercial operations at all airports except cargo, medical and relief ights. Accordingly, operation of scheduled and non- scheduled commercial airlines were closed at Chandigarh Airport w.e.f. 25.03.2020 and continued till 24.05.2020.As per

191 Annual Report 2019-20

Notes forming part of the nancial statements

DGCA order, Airport Operations were resumed for Domestic ights w.e.f. 25.05.2020 with certain restrictions. It has resulted in low Aircraft movement and Passenger trafc is also very lean resulting in lower revenue generation to CHIAL as well as other stakeholders. Revenue from the operations of the company in the subsequent year may also be signicantly affected due to the COVID-19. Currently, company is also reviewing the impact on its customer worthiness. 44 Miscellaneous Expenses do not include items of expenses exceeding 1% of the total revenue of the company or Rupees Ten lakhs which ever is higher. 45 Figures in Financial Statements have been rounded off to the nearest lakhs (except number of shares) and previous years gures have been re-grouped, re-arranged wherever necessary to make them comparable with those of the current year's gures. 46 Approval of nancial statements The nancial statements were approved by the Board of Directors and authorized for issue on 18.08.2020

For Rajiv Goel & Associates Chartered Accountants For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- (CA Dhruv Goel) (Avneet Kaur) (Rakesh Dembla) (I.N. Murthy) Partner Company Secretary CFO Chairman M No. 549569 FRN 011106N Place : Chandigarh Date :

192 Independent Auditor’s Report to the Members of Chandigarh International Airport Limited Revised Report on the Audit of the Standalone Financial Statements Opinion Annexures to Board’s Report, Business We have audited the accompanying nancial Responsibility Report but does not include the statements of Chandigarh International Airport nancial statements and our auditor’s report Limited (“the Company”), which comprise the thereon. balance sheet as at March 31, 2020, and the Our opinion on the nancial statements does not Statement of Prot and Loss and statement and cover the other information and we do not express cash ows for the year then ended, and notes to any form of assurance conclusion thereon. the nancial statements, including a summary of In connection with our audit of the nancial signicant accounting policies and other statements, our responsibility is to read the other explanatory information. information and, in doing so, consider whether the In our opinion and to the best of our information other information is materially inconsistent with and according to the explanations given to us, the the standalone nancial statements or our aforesaid nancial statements give the knowledge obtained during the course of our audit information required by the Companies Act, 2013 or otherwise appears to be materially misstated. (‘Act’) in the manner so required and give a true If, based on the work we have performed, we and fair view in conformity with Indian Accounting conclude that there is a material misstatement of Standards prescribed under section 133 of the Act this other information, we are required to report read with the Companies (Indian Accounting that fact. We have nothing to report in this regard. Standard) rule 2015 and other accounting principles generally accepted in India, of the state Management’s responsibility for the nancial of affairs of the Company as at March 31, 2020, statements its prot and cash ows for the year ended on that The Company’s board of directors are responsible date. for the matters stated in section 134 (5) of the Act Basis of Opinion with respect to the preparation of these nancial statements that give a true and fair view of the We conducted our audit in accordance with the nancial position, nancial performance and cash standards on auditing specied under section 143 ows of the Company in accordance with the (10) of the Companies Act, 2013. Our accounting principles generally accepted in India, responsibilities under those Standards are further including the Indian accounting standards described in the auditor’s responsibilities for the specied under section 133 of the Act. This audit of the nancial statements section of our responsibility also includes maintenance of report. We are independent of the Company in adequate accounting records in accordance with accordance with the code of ethics issued by the the provisions of the Act for safeguarding of the Institute of Chartered Accountants of India assets of the Company and for preventing and together with the ethical requirements that are detecting frauds and other irregularities; selection relevant to our audit of the nancial statements and application of appropriate accounting under the provisions of the Act and the rules there policies; making judgments and estimates that are under, and we have fullled our other ethical reasonable and prudent; and design, responsibilities in accordance with these implementation and maintenance of adequate requirements and the code of ethics. We believe internal nancial controls, that were operating that the audit evidence we have obtained is effectively for ensuring the accuracy and sufcient and appropriate to provide a basis for completeness of the accounting records, relevant our opinion. to the preparation and presentation of the Information other than the nancial statements nancial statement that give a true and fair view and auditors’ report thereon and are free from material misstatement, whether due to fraud or error. The Company’s board of directors is responsible for the preparation of the other information. The In preparing the nancial statements, other information comprises the information management is responsible for assessing the included in the Board’s Report including Company’s ability to continue as a going concern,

193 Annual Report 2019-20

disclosing, as applicable, matters related to going • Evaluate the appropriateness of accounting concern and using the going concern basis of policies used and the reasonableness of accounting unless management either intends to accounting estimates and related disclosures liquidate the Company or to cease operations, or made by management. has no realistic alternative but to do so. • Conclude on the appropriateness of The board of directors are also responsible for management’s use of the going concern basis overseeing the Company’s nancial reporting of accounting and, based on the audit process. evidence obtained, whether a material Auditor’s responsibilities for the audit of the uncertainty exists related to events or nancial statements conditions that may cast signicant doubt on the Company’s ability to continue as a going Our objectives are to obtain reasonable assurance concern. If we conclude that a material about whether the nancial statements as a whole uncertainty exists, we are required to draw are free from material misstatement, whether due attention in our auditor’s report to the related to fraud or error, and to issue an auditor’s report disclosures in the nancial statements or, if that includes our opinion. Reasonable assurance such disclosures are inadequate, to modify our is a high level of assurance, but is not a guarantee opinion. Our conclusions are based on the that an audit conducted in accordance with SAs audit evidence obtained up to the date of our will always detect a material misstatement when it auditor’s report. However, future events or exists. Misstatements can arise from fraud or error conditions may cause the Company to cease to and are considered material if, individually or in continue as a going concern. the aggregate, they could reasonably be expected to inuence the economic decisions of users taken • Evaluate the overall presentation, structure on the basis of these nancial statements. and content of the nancial statements, including the disclosures, and whether the As part of an audit in accordance with SAs, we nancial statements represent the underlying exercise professional judgment and maintain transactions and events in a manner that professional skepticism throughout the audit. We achieves fair presentation. also: We communicate with those charged with • Identify and assess the risks of material governance regarding, among other matters, misstatement of the nancial statements, the planned scope and timing of the audit and whether due to fraud or error, design and signicant audit ndings, including any perform audit procedures responsive to those signicant deciencies in internal control that risks, and obtain audit evidence that is we identify during our audit. sufcient and appropriate to provide a basis for our opinion. The risk of not detecting a We also provide those charged with material misstatement resulting from fraud is governance with a statement that we have higher than for one resulting from error, as complied with relevant ethical requirements fraud may involve collusion, forgery, r e g a r d i n g i n d e p e n d e n c e , a n d t o intentional omissions, misrepresentations, or communicate with them all relationships and the override of internal control. other matters that may reasonably be thought to bear on our independence, and where • Obtain an understanding of internal control applicable, related safeguards. relevant to the audit in order to design audit procedures that are appropriate in the From the matters communicated with those circumstances. Under section 143(3)(i) of the charged with governance, we determine those Companies Act, 2013, we are also responsible matters that were of most signicance in the for expressing our opinion on whether the audit of the nancial statements of the current company has adequate internal nancial period and are therefore the key audit matters. controls system in place and the operating We describe these matters in our auditor’s effectiveness of such controls report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

194 that a matter should not be communicated in (e) On the basis of the written representations our report because the adverse consequences received from the directors as on March of doing so would reasonably be expected to 31, 2020 taken on record by the board of outweigh the public interest benets of such directors, none of the directors is communication. disqualied as on March 31, 2020 from Report on other legal and regulatory being appointed as a director in terms of requirements Section 164 (2) of the Act; (f) With respect to the adequacy of the 1. As required by the Companies (Auditor’s internal nancial controls over nancial Report) Order, 2020 (“the Order”), issued by reporting of the Company and the the Central Government of India in terms of operating effectiveness of such controls, sub-section (11) of section 143 of the refer to our separate report in “Annexure Companies Act, 2013, we give in the Annexure A”. Our report expresses an unmodied “B”, a statement on the matters specied in opinion on the adequacy and operating paragraphs 3 and 4 of the Order, to the extent effectiveness of the Company’s internal applicable. nancial controls over nancial 2. As required by Section 143(3) of the Act, we reporting; report that: (g) With respect to the other matters to be (a) We have sought and obtained all the included in the Auditor’s Report in information and explanations which to accordance with Rule 11 of the the best of our knowledge and belief Companies (Audit and Auditors) Rules, were necessary for the purposes of our 2014, in our opinion and to the best of audit; our information and according to the (b) In our opinion, proper books of account explanations given to us; as required by law have been kept by the a. The company has disclosed the Company so far as it appears from our impact of pending litigations on its examination of those books; nancial position in Notes to its (c) The balance sheet, the statement of prot nancial statements. and loss, and the cash ow statement b. The Company did not have any long- dealt with by this report are in agreement term contracts including derivative with the books of account; contracts for which there were any (d) In our opinion, the aforesaid nancial material foreseeable losses; and statements comply with the Indian c. There has been no delay in Accounting standards specied under transferring amounts, required to be section 133 of the Act, read with rule 7 of transferred, to the Investor Education the Companies (Accounts) Rules, 2014; and Protection Fund by the Company

For M/S Rajiv Goel & Associates Chartered Accountants (Firm’s Registration No.011106N)

sd/- CA Dhruv Goel Place: Chandigarh Partner Date: (Membership No. 549569)

195 Annual Report 2019-20

“Annexure A” to the Independent Auditors’ Report (Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date) Report on the Internal Financial Controls Over perform the audit to obtain reasonable assurance Financial Reporting under Clause (i) of Sub- about whether adequate internal nancial section 3 of Section 143 of the Companies Act, controls over nancial reporting was established 2013 (“the Act”) and maintained and if such controls operated We have audited the internal nancial controls effectively in all material respects. over nancial reporting of Chandigarh Our audit involves performing procedures to International Airport Limited (“the Company”) as obtain audit evidence about the adequacy of the of March 31, 2020 in conjunction with our audit of internal nancial controls system over nancial the nancial statements of the Company for the reporting and their operating effectiveness. Our year ended on that date. audit of internal nancial controls over nancial Management’s Responsibility for Internal reporting included obtaining an understanding of Financial Controls internal nancial controls over nancial reporting, assessing the risk that a material weakness exists, The Company’s management is responsible for and testing and evaluating the design and establishing and maintaining internal nancial operating effectiveness of internal control based controls based on the internal control over on the assessed risk. The procedures selected nancial reporting criteria established by the depend on the auditor’s judgment, including the Company considering the essential components assessment of the risks of material misstatement of of internal control stated in the Guidance Note on the nancial statements, whether due to fraud or Audit of Internal Financial Controls Over Financial error. Reporting issued by the Institute of Chartered Accountants of India” (ICAI). These responsibilities We believe that the audit evidence we have include the design, implementation and obtained is sufcient and appropriate to provide a maintenance of adequate internal nancial basis for our audit opinion on the Company’s controls that were operating effectively for internal nancial controls system over nancial ensuring the orderly and efcient conduct of its reporting. business, including adherence to company’s Meaning of Internal Financial Controls over policies, the safeguarding of its assets, the Financial Reporting prevention and detection of frauds and errors, the A company's internal nancial control over accuracy and completeness of the accounting nancial reporting is a process designed to records, and the timely preparation of reliable provide reasonable assurance regarding the nancial information, as required under the reliability of nancial reporting and the Companies Act, 2013. preparation of nancial statements for external Auditors’ Responsibility purposes in accordance with generally accepted Our responsibility is to express an opinion on the accounting principles. internal nancial controls over nancial reporting A company's internal nancial control over of the Company based on our audit. We nancial reporting includes those policies and conducted our audit in accordance with the procedures that: Guidance Note on Audit of Internal Financial (1) pertain to the maintenance of records that, in Controls Over Financial Reporting (the “Guidance reasonable detail, accurately and fairly Note”) issued by the Institute of Chartered reect the transactions and dispositions of Accountants of India and the Standards on the assets of the company; Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to (2) provide reasonable assurance that an audit of internal nancial controls. Those transactions are recorded as necessary to Standards and the Guidance Note require that we permit preparation of nancial statements in comply with ethical requirements and plan and accordance with generally accepted accounting principles, and that receipts and

196 “Annexure A” to the Independent Auditors’ Report expenditures of the company are being the risk that the internal nancial control over made only in accordance with authorizations nancial reporting may become inadequate of management and directors of the because of changes in conditions, or that the company; and degree of compliance with the policies or (3) provide reasonable assurance regarding procedures may deteriorate. prevention or timely detection of Opinion unauthorized acquisition, use, or disposition In our opinion, to the best of our information and of the company's assets that could have a according to the explanations given to us, the material effect on the nancial statements. Company has, in all material respects, an Inherent Limitations of Internal Financial adequate internal nancial controls system over Controls over Financial Reporting nancial reporting and such internal nancial Because of the inherent limitations of internal controls over nancial reporting were operating nancial controls over nancial reporting, effectively as at March 31,2020, based on the including the possibility of collusion or improper internal control over nancial reporting criteria management override of controls, material established by the Company considering the misstatements due to error or fraud may occur and essential components of internal control stated in not be detected. Also, projections of any the Guidance Note on Audit of Internal Financial evaluation of the internal nancial controls over Controls Over Financial Reporting issued by the nancial reporting to future periods are subject to Institute of Chartered Accountants of India”.

For M/S Rajiv Goel & Associates Chartered Accountants (Firm’s Registration No.011106N)

sd/- CA Dhruv Goel Place: Chandigarh Partner Date: (Membership No. 549569)

197 Annual Report 2019-20

“Annexure B” to the Independent Auditors’ Report Annexure referred to in Independent’s Auditors 6. The maintenance of cost records has been Report to the members of Chandigarh specied by the Central Government under international Airport Limited on the nancial section 148(1) of the Companies Act, 2013. statements for the year ended 31st March, We have broadly reviewed the cost records 2020, we report that: maintained by the Company pursuant to the 1. a) The company has maintained proper Companies (Cost Records and Audit) Rules, records showing full particulars including 2014, as amended prescribed by the Central Quantitative details and situation of xed Government under sub-section (1) of Section assets. 148 of the Companies Act, 2013, and are of b) The Company has a regular program of the opinion that, prima facie, the prescribed physical verication of its xed assets by cost records have been made and maintained. which xed assets are veried in a We have, however, not made a detailed phased manner over a period of three examination of the cost records with a view to years. In accordance with this program, determine whether they are accurate or certain xed assets were veried during complete. the year and no material discrepancies 7. According to the information and explanations were noticed on such verication. In our given to us, in respect of statutory dues: opinion the frequency of physical verication of xed assets is reasonable. (a) The Company has generally been regular in depositing undisputed c) According to the information and statutory dues, including Provident Fund, explanations given to us and on the basis of our examination of the records of the Employees’ State Insurance, Income-tax, Company, the title deeds of immovable Customs Duty, Goods and Services Tax, properties are held in the name of the Cess and other material statutory dues Company. applicable to it to the appropriate authorities. However, the following dues 2. As explained to us, the inventories were remain payable for a period exceeding 6 physically veried during the year by the Management at reasonable intervals, and no months as on 31st March 2020: material discrepancies were noticed on Relevant Law Nature of Amount Payable since physical verication. under which dues dues are 3. The Company has not granted any loans, payable secured or unsecured, to companies, rms, Income Tax Tax deduction 10,67,237.80/- August 2019 Limited Liability Partnerships or other parties Act, 1961 at source covered in the register maintained under (TDS) Section 189 of the Companies Act, 2013. (b) There were no undisputed amounts payable in 4. The Company has not granted any loans, respect of Provident Fund, Employees’ State made investments or provided guarantees and Insurance, Income-tax, Customs Duty, Goods and Services Tax, Cess and other material statutory securities, hence reporting under clause (iv) of dues in arrears as at the end of the year for a period the Order is not applicable. of more than six months from the date they became 5. According to the information and explanations payable except as mentioned in (a) above. As per the representations received by us from the given to us, the Company has not accepted any company, the demand has been raised due to deposit under Sections 73 to 76 or any other technical issues relating to lower deduction relevant provisions of the Companies Act, certicate (a) above provided by one of its suppliers 2013 and the Companies (Acceptance of and that the suppliers have received written assurances from the income tax department that Deposits) Rules, 2014, as amended, with the certicate would be amended which would regard to deposits. result in deletion of the amount demanded from the company.

198 8. There were no borrowings from Banks, Financial 13. In our opinion and according to the information and institution, Government and has not issued debentures, explanations given to us the Company is in compliance hence reporting under Clause (viii) of CARO 2016 order with Section 177 and 188 of the Companies Act, 2013, is not applicable. where applicable, for all transactions with the related 9. Based upon the audit procedures performed and the parties and the details of related party transactions have information and explanations given by the been disclosed in the nancial statements etc. as management, the company has not raised money by required by the applicable Indian accounting standards way of public issue/follow on offer including debt 14. During the year the Company has not made any instruments and term Loans. preferential allotment or private placement of shares or 10. To the best of our knowledge and according to the fully or partly convertible debentures and hence information and explanations given to us, no fraud by reporting under clause (xiv) of the Order is not applicable the Company and no material fraud on the Company by to the Company. its ofcers or employees has been noticed or reported 15. In our opinion and according to the information and during the year. explanations given to us, during the year the Company 11. In our opinion and according to the information and has not entered into any non-cash transactions with its explanations given to us, the Company has paid directors or directors of its holding company or persons managerial remuneration in accordance with the connected with them and hence provisions of section requisite approvals mandated by the provisions of 192 of the Companies Act, 2013 are not applicable. The section 197 read with Schedule V to the Companies Act, Company does not have any subsidiary or associate 2013. company. 12. The Company is not a Nidhi Company and hence 16. The Company is not required to be registered under reporting under clause (xii) of the Order is not section 45-IA of the Reserve Bank of India Act, 1934. applicable.

For M/S Rajiv Goel & Associates Chartered Accountants (Firm’s Registration No.011106N)

sd/- CA Dhruv Goel Place: Chandigarh Partner Date: (Membership No. 549569)

199 Annual Report 2019-20

“Annexure C” to the Independent Auditors’ Report Report on the Internal Financial Controls under about whether adequate internal nancial Clause (i) of Sub-section 3 of Section 143 of the controls over nancial reporting was established Companies Act, 2013 (“the Act”) and maintained and if such controls operated We have audited the internal nancial controls effectively in all material respects. over nancial reporting of Chandigarh Our audit involves performing procedures to International Airport Limited (“the Company”) as obtain audit evidence about the adequacy of the of March 31, 2019 in conjunction with our audit of internal nancial controls system over nancial the standalone Ind AS nancial statements of the reporting and their operating effectiveness. Our Company for the year ended on that date. audit of internal nancial controls over nancial Management’s Responsibility for Internal reporting included obtaining an understanding of Financial Controls internal nancial controls over nancial reporting, assessing the risk that a material weakness exists, The Company’s management is responsible for and testing and evaluating the design and establishing and maintaining internal nancial operating effectiveness of internal control based controls based on the internal control over on the assessed risk. The procedures selected nancial reporting criteria established by the depend on the auditor’s judgement, including the Company considering the essential components assessment of the risks of material misstatement of of internal control stated in the Guidance Note on the standalone Ind AS nancial statements, Audit of Internal Financial Controls over Financial whether due to fraud or error. Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities We believe that the audit evidence we have include the design, implementation and obtained is sufcient and appropriate to provide a maintenance of adequate internal nancial basis for our audit opinion on the Company’s controls that were operating effectively for internal nancial controls system over nancial ensuring the orderly and efcient conduct of its reporting of the Company. business, including adherence to company’s Meaning of Internal Financial Controls over policies, the safeguarding of its assets, the Financial Reporting prevention and detection of frauds and errors, the A company's internal nancial control over accuracy and completeness of the accounting nancial reporting is a process designed to records, and the timely preparation of reliable provide reasonable assurance regarding the nancial information, as required under the reliability of nancial reporting and the Companies Act, 2013. preparation of nancial statements for external Auditors’ Responsibility purposes in accordance with generally accepted Our responsibility is to express an opinion on the accounting principles. A company's internal Company's internal nancial controls over nancial control over nancial reporting includes nancial reporting based on our audit. We those policies and procedures that (1) pertain to conducted our audit in accordance with the the maintenance of records that, in reasonable Guidance Note on Audit of Internal Financial detail, accurately and fairly reect the transactions Controls Over Financial Reporting (the “Guidance and dispositions of the assets of the company; Note”) and the Standards on Auditing, issued by (2) provide reasonable assurance that ICAI and deemed to be prescribed under section transactions are recorded as necessary to permit 143(10) of the Companies Act, 2013, to the extent preparation of nancial statements in accordance applicable to an audit of internal nancial with generally accepted accounting principles, controls, both applicable to an audit of Internal and that receipts and expenditures of the company Financial Controls and, both issued by the Institute are being made only in accordance with of Chartered Accountants of India. Those authorisations of management and directors of Standards and the Guidance Note require that we the company; and (3) provide reasonable comply with ethical requirements and plan and assurance regarding prevention or timely perform the audit to obtain reasonable assurance detection of unauthorised acquisition, use, or

200 disposition of the company's assets that could have Opinion a material effect on the nancial statements. In our opinion to the best of our information and Inherent Limitations of Internal Financial according to the explanations given to us, the Controls over Financial Reporting Company has, in all material respects, an Because of the inherent limitations of internal adequate internal nancial controls system over nancial controls over nancial reporting, nancial reporting and such internal nancial including the possibility of collusion or improper controls over nancial reporting were operating management override of controls, material effectively as at March 31, 2019, based on the misstatements due to error or fraud may occur and internal control over nancial reporting criteria not be detected. Also, projections of any established by the company considering the evaluation of the internal nancial controls over essential components of internal control stated in nancial reporting to future periods are subject to the Guidance Note on Audit of Internal nancial the risk that the internal nancial control over Controls Over Financial Reporting issued by the nancial reporting may become inadequate Institute of Chartered Accountants of India. because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For Rajiv Goel & Associates Chartered Accountants (Firm’s Registration No. 011106N)

sd/- CA Rajiv Goel Place: Chandigarh Partner Date: 22.08.2019 (Membership No. 089669)

201 Annual Report 2019-20

202 203

Financial Statements of AAI Cargo Logistics And Allied Services Company Limited Annual Report 2019-20

Balance Sheet as at 31st March, 2020

Particulars Note No. As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees) A EQUITY AND LIABILITIES 1. SHAREHOLDERS' FUNDS a. Share capital 3 250,000,000 250,000,000 b. Reserves and surplus 4 2,834,037,617 2,130,687,567 3,084,037,617 2,380,687,567 2. NON-CURRENT LIABILITIES a. Deffered tax liabilities 5 48,503,048 29,677,889 b. Other long-term liabilities 6 17,154,482 24,610,005 65,657,530 54,287,894 3. CURRENT LIABILITIES a. Trade payables 7 - Total outstanding dues of micro 6,064,856 13,041,594 enterprises and small enterprises - Total outstanding dues of creditors 2,514,143,129 1,600,641,278 other than micro enterprises and small enterprises b. Other current liabilities 8 1,542,595,405 1,570,998,121 4,062,803,390 3,184,680,993 7,212,498,537 5,619,656,454 B ASSETS 1. NON-CURRENT ASSETS a. Property, Plant and Equipment 9 - Tangible assets 1,575,781,198 1,278,220,573 - Intangible assets 4,874,969 5,904,371 - Capital work-in-progress 228,959,637 13,582,953 1,809,615,804 1,297,707,897 2. CURRENT ASSETS a. Trade receivables 10 306,020,061 183,855,456 b. Cash and Cash Equivalents 11 3,764,044,591 3,177,420,347 c. Short-term loans and advances 12 269,258,858 243,275,108 d. Other current assets 13 1,063,559,223 717,397,646 5,402,882,733 4,321,948,557 7,212,498,537 5,619,656,454 See accompanying notes forming part of the 1 - 41 financial statements

In terms of our Audit Report Attached For & on behalf of Board of Directors

For P.R.KUMAR & CO. sd/- sd/- Chartered Accountants (J.B.SAINI) (APIL AGRAWAL) Firm Reg. No.: 003186N Chief Financial Ofcer Company Secretary PAN: AEWPJ2629A PAN: AMPAA1914L sd/- sd/- (RAHUL KATHURIA) (KEKU BOMI GAZDER) (ARVIND SINGH) Partner Chief Executive Ofcer Chairman M. No.: 090657 PAN: ARCPK6948G DIN:02780573

Place: New Delhi Date : 02.11.2022

206 Statement of Prot and Loss for the year ended 31st March, 2020

Particulars Note No. Year ended Year ended March 31, 2020 March 31, 2019 (in Rupees) (in Rupees) 1. Revenue from operations 14 3,754,911,549 3,689,520,755 2. Other income 15 265,562,885 228,468,667 3. TOTAL REVENUE (1+2) 4,020,474,434 3,917,989,422

4. EXPENSES a. Employee benefits expense 16 479,290,262 479,397,537 b. Operative expenses 17 1,694,055,644 2,556,530,662 c. Depreciation and amortisation expense 18 116,145,776 106,533,786 d. Administrative and other expenses 19 403,250,398 93,965,183 TOTAL EXPENSES 2,692,742,080 3,236,427,168

5. PROFIT BEFORE TAX 1,327,732,354 681,562,254

6. TAX EXPENSE a. Current tax 385,242,344 356,382,024 b. Short/(Excess) Provision of Income Tax of early year - - (428,775,782) c. Utilisation of MAT Credit - 123,778,353 d. Deferred tax charge/(credit) 18,825,159 21,231,546 NET TAX EXPENSE 404,067,503 72,616,141

7. PROFIT FOR THE YEAR 923,664,851 608,946,113

8. EARNINGS PER SHARE (Equity shares of Rupees 10 each) a. Basic 20 36.95 24.36 b. Diluted 20 36.95 24.36

See accompanying notes forming part of 1 - 41 the financial statements

In terms of our Audit Report Attached For & on behalf of Board of Directors

For P.R.KUMAR & CO. sd/- sd/- Chartered Accountants (J.B.SAINI) (APIL AGRAWAL) Firm Reg. No.: 003186N Chief Financial Ofcer Company Secretary PAN: AEWPJ2629A PAN: AMPAA1914L sd/- sd/- (RAHUL KATHURIA) (KEKU BOMI GAZDER) (ARVIND SINGH) Partner Chief Executive Ofcer Chairman M. No.: 090657 PAN: ARCPK6948G DIN:02780573

Place: New Delhi Date : 02.11.2022

207 Annual Report 2019-20

Cash Flow Statement for the year ended 31st March 2020

Particulars Year ended Year ended March 31, 2020 March 31, 2019 (in Rupees) (in Rupees) A.CASH FLOW FROM OPERATING ACTIVITIES Net Profit before tax 1,327,732,354 681,562,254 Adjustments for : Depreciation and amortisation expense 116,145,776 106,533,786 Profit on Transfer/Discard of Fixed Assets - (31,762) Interest income on current investments (250,163,229) (182,610,086) Provision for doubtful debts 75,433,631 14,526,721 Gain on Foreign Currency Fluctuation - (555,827) Operating prot/(loss) before working capital changes 1,269,148,532 619,425,086

Adjustments for movement in operating assets: Decrease/(Increase) in Trade receivables (197,598,236) (93,943,613) Decrease/(Increase) in Short term loans & advances (713,257) (226,372) Decrease/(Increase) in Other current Assets (299,609,467) (634,468,032)

Adjustments for movement in operating Liability: Increase/(Decrease) in Long term Libilities (7,455,523) 19,339,493 Increase/(Decrease) in Trade payable 906,525,113 1,012,710,097 Increase/(Decrease) in Other current liabilities 130,941,445 1,172,120,682 Cash generated from / (used in) operations 1,801,238,607 2,094,957,341 Net income tax (paid) / refunds (410,512,837) (581,943,741) Net cash from/ (used in) operating activities (A) 1,390,725,770 1,513,013,600

B. CASH FLOW FROM INVESTING ACTIVITIES Capital expenditure on fixed assets, including (572,021,159) (212,368,812) capital advances Transfer/Discard of fixed assets 270,935 Capital work in progress (215,376,684) (13,582,953) Interest income on current investments 203,611,118 186,670,976 Term Deposits with more than 3 months maturity 1,173,490,375 (1,354,170,568) Net cash from/ (used in) investing activities (B) 589,703,650 (1,393,180,422)

C. CASH FLOW FROM FINANCING ACTIVITIES Dividend Paid (including Dividend Distribution Tax) (220,314,801) - Net cash from/ (used in) nancing activities (c) (220,314,801) - Net increase/ (decrease) in cash and cash equivalents 1,760,114,619 119,833,178 Cash and cash equivalents as at the beginning 472,854,566 353,021,388 of the year Cash and cash equivalents as at the end of the year 2,232,969,185 472,854,566

208 Cash Flow Statement for the year ended 31st March 2020

Particulars Year ended Year ended March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

“Reconciliation of Cash and Cash equivalents with the Balance Sheet: Component of cash and cash equivalents as per Balance sheet (Refer Note No. 12)" 3,764,044,591 3,177,420,347 Less: Bank balances not considered as Cash and cash equivalents as define in AS-3 ""Cash Flow Statement"":" 1,531,075,406 2,704,565,781 Term Deposits with more than 3 months maturity "Net Cash and cash equivalents (As denes in AS-3 ""Cash Flow Statements"")" 2,232,969,185 472,854,566

Cash and cash equivalents at the end of the year comprises Cash and Cheque on Hand 2,751,707 340,318 Balances with Bank 8,221,598 30,021,921 Term Deposits with Less than 3 Months Maturity 2,221,995,880 442,492,327

2,232,969,185 472,854,566

In terms of our Audit Report Attached For & on behalf of Board of Directors

For P.R.KUMAR & CO. sd/- sd/- Chartered Accountants (J.B.SAINI) (APIL AGRAWAL) Firm Reg. No.: 003186N Chief Financial Ofcer Company Secretary PAN: AEWPJ2629A PAN: AMPAA1914L sd/- sd/- (RAHUL KATHURIA) (KEKU BOMI GAZDER) (ARVIND SINGH) Partner Chief Executive Ofcer Chairman M. No.: 090657 PAN: ARCPK6948G DIN:02780573

Place: New Delhi Date : 02.11.2022

209 Annual Report 2019-20

Notes To Financial Statements For The Year Ended 31st March, 2020 1. Corporate Information of the financial statements. Management AAI Cargo Logistics & Allied Services Company believes that these estimates and assumptions Limited ('the Company') was incorporated on 11 are reasonable and made on prudent basis August, 2016 under the Companies Act, 2013. taking into account all available information, The Company is primarily engaged in the however the actual results could differ from these business of Cargo logistics and allied services. estimates and such differences are recognized in the period in which the results are crystallized. The cargo business was earlier a business division of Airports Authority of India (Parent b. Property, Plant and Equipments Company). The entire business activity related to i) Tangible Assets this division has been transferred by the parent - The cost of an item of Property, Plant and company to the company w.e.f. 01.04.2017. Equipment comprises its purchase price, 2. Signicant Accounting Policies including import duties and non-refundable taxes, after deducting trade discounts and a. Basis of Preparation of Financial Statements rebates, any directly attributable expenditure i) The financial statements have been prepared in to bring the Property, Plant and Equipment to accordance with Generally Accepted Accounting the location and making it ready for its Principles in India (GAAP) to comply with the intended use and is net of credit availed in Accounting Standards specified under section respect of any taxes, duties, capital grant 133 of the Companies Act, 2013 read with Rule receipts. 7 of the Companies (Accounts) Rules 2014 and - Part completion of works / projects and put to the relevant provisions of Companies Act 2013. use are capitalized based on the technical The financial statements have been prepared assessment. under the historical cost convention on an accrual basis. The accounting policies have been - Asset individually costing less than ` 5,000/- consistently applied by the Company. are charged off to Revenue expenses. All assets and liabilities have been classified as ii) Intangible Assets current or non-current as per the Company’s Computer Software (not being an embedded normal operating cycle and other criteria set out software in the equipment) which is put to use and in the Schedule III to the Companies Act, 2013. is expected to provide future enduring economic Based on the nature of services and the time benefits is recognized as Intangible Assets and between the acquisition of assets for processing amortized on straight line basis as per accounting and their realization in cash and cash standard -26 “Intangible assets” or license equivalents, the Company has ascertained its period of the software whichever is earlier. operating cycle as 12 months for the purpose of However where such computer software is still in Current – Non Current classification of Assets development stage, costs incurred during the and Liabilities. development stage of such software are ii) Going Concern Assumption accounted as “Intangible Assets Under Development “and expenditure on Research & The financial statements have been prepared on Development, other than on capital account, is the assumption of Going Concern basis, charged to revenue. accordingly all the assets and liabilities have been reflected at their book value. iii) Impairment of Assets iii) Use of Estimates As at each balance sheet date, the carrying amount of cash generating units/assets is tested "The preparation of financial statements requires for impairment so as to determine: the management to make estimates and assumptions that affect the reported amount of a) The provision for impairment loss, if any assets, liabilities, revenue, expenses and required; or the reversal, if any, required of disclosure of contingent liabilities as at the date impairment loss recognized in previous

210 Notes To Financial Statements For The Year Ended 31st March, 2020 periods recognized when the custom duty has been b) Impairment loss is recognized when the assessed and paid to the custom department. carrying amount of an asset exceeds The procedures as laid down under section 48 recoverable amount. of the customs act, 1962 is being followed by the company for disposal of unclaimed/ c. Depreciation and Amortisation uncleared cargo. Depreciation on fixed assets has been iii) Interest Income provided on the straight-line method as per the useful life prescribed in Schedule II to the Revenue is recognised on a time proportion Companies Act, 2013. basis taking into account the amount outstanding and the rate applicable. Class of Assets Useful Life f. Stores/Spares Tangible Assets As per Schedule II of the Companies Stores/spares which are charged to the Act, 2013 Statement of Profit and Loss as and when they are procured. The costs of purchase consist of the Intangible Assets - 3 Years purchase price including duties and taxes (other Softwares than those subsequently recoverable by the d. Investments company from the taxing authorities), freight Investments that are readily realisable and inwards and other expenditure directly intended to be held for not more than a year attributable to the acquisition. Trade discounts, are classified as current investments. All other rebates, duty drawbacks and other similar items investments are classified as long-term are deducted in determining the costs of investments. Current investments are carried purchase. at lower of cost and fair value determined on g. Foreign Currency Translation an individual investment basis. Long-term i) Transactions in foreign currency are recorded investments are carried at cost. However, at the exchange rates prevailing at the date of provision for diminution in value is made to transactions. recognise a decline other than temporary in the value of the investments. ii) Non-Monetary items denominated in foreign currency (such as Fixed Assets etc) are valued e. Revenue Recognition at the exchange rate prevailing on the date of Revenue is recognized to the extent that it is transaction. probable that the economic benefits will flow iii) Monetary Items denominated in foreign to the Company and the revenue can be currencies (such as Loans, Cash, Bank reliably measured. balances etc) outstanding at the end of I) Income from Operation reporting period, are translated at exchange - Revenue is recognized as the services are rates prevailing as at the end of reporting date. rendered on accrual basis and is net of Goods iv) Any gains or losses arising due to differences and Services Tax. in exchange rates at the time of translation are - Bills are raised at the time when and to the accounted for in the statement of P&L either extent there is no significant uncertainty as to under the head foreign exchange fluctuation its measurability and ultimate realization. or interest cost as per the case. ii) Other Income h. Taxes on Income - In respect of cases under legal disputes /Interest i) Tax expense comprises both current and on delayed payments from customers, deferred tax. Current tax is measured at the Insurance Claims, Interest on Staff advances, amount expected to be paid to the tax etc. are accounted on receipt basis. authorities, using the applicable tax rates and tax laws. - In respect of unclaimed cargo, Revenue is

211 Annual Report 2019-20

Notes To Financial Statements For The Year Ended 31st March, 2020

ii) Deferred tax assets and liabilities are Contingent assets are neither recognized nor recognized for future tax consequences disclosed. attributable to the timing differences between Provisions, contingent liabilities and contingent taxable income and accounting income that assets are reviewed at each balance sheet date. are capable of reversal in one or more subsequent period and are measured using k. Earnings per share tax rates enacted or substantially enacted as at The basic and diluted earnings per share are the Balance Sheet date. computed by dividing the net profit/loss after tax, Deferred Tax assets are not recognized unless, attributable to equity shareholders for the year by in the management judgement, there is virtual the weighted average number of equity shares certainty that sufficient future taxable income outstanding during the year. will be available against which such deferred l. Cash Flow tax assets can be realized. The carrying Cash flows are reported using the indirect amount of deferred tax is reviewed at each method, whereby net profits before tax is adjusted balance sheet date. for the effects of transactions of a non-cash i. Additional Demand of Taxes nature and any deferrals or accruals of past or Payment of additional demand of, Goods and future cash receipts or payments. The cash flows Services Tax, Income Tax and any other taxes are from regular revenue generating, investing and accounted for if constructive obligation that can financing activities of the Company are be estimated, reliably and it is probable that an segregated. outflow of economic benefit will be required to m. Prior Period and Extraordinary Items settle the obligation. Similarly refund of above Income and expenditure pertaining to prior were accounted for “As and when received” period as well as extraordinary items, where basis. material, are disclosed separately. j. Provisions, Contingent Liabilities and n. Trade Receivables Contingent Assets Debt more than 1 year old recoverable from Provisions are recognized for liabilities that can parties other than Government Departments but be measured only by using a substantial degree including Public sector undertaking are of estimation, if : considered doubtful and provided for in Books of i) The company has a present obligation as a Accounts. result of a past event, a) Security Deposit available has not been ii) A probably outflow of resources is expected to considered while making the provision for settle the obligation and, doubtful debts. iii) The amount of the obligation can be reliably o. Cash and Cash Equivalents estimated. Cash and cash equivalents included cash on Contingent liabilities are disclosed in the case of : hand, Cheques on Hand, terms deposits with i ) A present obligation arising from a past event, banks. when it is not probable that an outflow of p Municipal Taxes resources will be required to settle the Municipal Taxes recognized in books of accounts obligation. on basis of expense transferred by the Parent ii) A possible obligation, unless the probability of company i.e Airports Authority of India, as and outflow of resources is remote. when demand received by them.

212 Notes forming part of the Financial Statements for the year ended 31st March, 2020 Particulars As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees) 3. SHARE CAPITAL Authorised 225,000,000 (Previous year 225,000,000) Equity Shares 2,250,000,000 2,250,000,000 of Rupees 10 each 2,250,000,000 2,250,000,000 Issued, Subscribed and Paid up: 25,000,000 (Previous year 25,000,000) Equity Shares of Rupees 10 each 2,250,000,000 2,250,000,000 (Refer notes (i) to (iii) below) 2,250,000,000 2,250,000,000

Notes :- (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year:

Particulars Year ended 31 March, 2020 Year ended 31 March, 2019 (Number) (Rupees) (Number) (Rupees) Equity Shares Outstanding at the beginning 25,000,000 250,000,000 25,000,000 250,000,000 Issued during the year (Also see note ii below) - - - - Outstanding at the end 25,000,000 250,000,000 25,000,000 250,000,000

Total 25,000,000 250,000,000 25,000,000 250,000,000

(ii) Rights, preferences and restrictions attached to each class of shares Equity Shares "The Company has one class of equity shares having a par value of Rupees 10 per share. Each holder of equity share is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding." (iii) Details of shares held by each shareholder holding more than 5% shares :

Particulars As at 31st March 2020 As at 31st March 2019 (Number) (% of holding (Number) (% of holding in that class in that class of shares) of shares) Equity Shares Airports Authority of India 25,000,000 100.00% 25,000,000 100.00% (Including 7 shares held by Nominee shareholder of Airports Authority of India)

213 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

4. RESERVES AND SURPLUS a. Balance as at beginning of the year 2,130,687,567 1,521,741,454 Less:- Dividend paid during the year for FY 2018-19 (182,750,001) - Less:- Dividend distribution tax (37,564,800) Add: Surplus for the current year 923,664,851 608,946,113 Closing balance 2,834,037,617 2,130,687,567

5 DEFERRED TAX LIABILITIES (NET) Deferred Tax Assets Related to Preliminary Expenses 135,050 306,879 Related to Income Tax Act 1,323,215 91,184 Deferred Tax Liability Related to Fixed Asset 49,961,313 30,075,952 48,503,048 29,677,889 6 OTHER LONG-TERM LIABILITIES a. Security Deposit 17,154,482 24,610,005 17,154,482 24,610,005

7. TRADE PAYABLES For Goods and Services# - Total outstanding dues of micro enterprises and small enterprises* 6,064,856 13,041,594 - Total outstanding dues of creditors other than micro enterprises and small enterprises 2,514,143,129 1,600,641,278 2,520,207,985 1,613,682,872

* * Disclosures required under Section 22 of the Micro Small and Medium Enterprises Development Act, 2006 are as below:- a) Dues remaining unpaid as at March 31, 2020 - Principal 6,064,856 13,030,207.00 - Interest on the above - 11,387.00 6,064,856 13,041,594 b) Interest paid in terms of Sec 16 of the Act, alongwith the amount of payment made to the supplier beyond the appointed day during the year. - Principal paid beyond the appointed date - - - Interest paid in terms of Section 16 of the Act - -

c) Amount of Interest due and payable for the period of delay on payments made beyond the appointed date during the year. - -

214 Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees) d) Further interest due and payable even in the succeeding years, until such date when the interest due as above are actually paid to the small enterprises. - - e) Amount of interest accrued and remaining unpaid as at March 31. - 11,387.00

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identied on the basis of information collected by the Management. This has been relied upon by the auditors. # Refer Note No- 30

8. OTHER CURRENT LIABILITIES a. Advance from Customers (See Note No- 37) 159,183,123 145,926,192 b. Payable for Expenses 1,165,685,644 1,130,476,709 c. Unearned Revenue 1,639,990 - d. Security Deposit 75,606,496 2,207,902 e. Other payables i. Trade Payable for Fixed Assets# Total outstanding dues of micro enterprises and small enterprises (refer note given below)* - - Total outstanding dues of creditors other than micro enterprises and small enterprises 121,693,907 281,038,067 f. Statutory Liabilities 18,786,244 11,349,251 1,542,595,405 1,570,998,121

* Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 are as below:- a) Dues remaining unpaid as at March 31, 2020 - Principal - - - Interest on the above - - - - b) Interest paid in terms of Sec 16 of the Act, alongwith the amount of payment made to the supplier beyond the appointed day during the year. - Principal paid beyond the appointed date - - - Interest paid in terms of Section 16 of the Act - - c) Amount of Interest due and payable for the period of delay on payments made beyond the appointed date during the year. - -

215 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

d) Further interest due and payable even in the succeeding years, until such date when the interest due as above are actually paid to the small enterprises. - - e) Amount of interest accrued and remaining unpaid as at March 31. - - Dues to Micro and Small Enterprises have been determined to the extent such parties have been identied on the basis of information collected by the Management. This has been relied upon by the auditors. # Refer Note No- 30

216

2 4 1 7 8 1 4 9 3 3 2 0 0 9 0 7 5 , , , 7 2 5 9 , , 5 4 9 , , 0 1 4 2 2 0 2 5 8 9 1 5 2 8 , , , 6 9 upees) 2 As at 5 , , 9 4 8 , , 6,401,283 3,013,050 5,904,371 5 0 8,584,079 5,904,371 6 8 7 8 3 44,906,115 11,381,260 25,886,930 8 0 1 2 7 1 1 April 1, 2019 , , ,

5 6 2 , 1 1 1 1

3 7 4 8 6 8 7 7 6 4 8 8 Net Block 9 3 5 1 9 , , , 5 5 1 6 , , , , 0 6 4 7 7 1 9 2 5 2 1 0 8 5

2 6 1 , , 1 4 , As at 7 9 , , , , 8 0 4 9 3 8,194,100 2,030,673 4,874,969 (All amount in R 5,904,371 5 4,874,969 8 7 8 8 5 3 39,508,712 10,285,057 23,237,482 7 2 2 5 2 Mar 31, 2020 7 7 , , , 5 2 ,

1 1 1 March, 2020 1 st

2 7 1 - 3 5 7

1 7 0 7 5 7 5 8 1 , , , 2 3 7 , , , 6 8 3 5 1 7 1 0 6 8 5 4

7 3 1 2 7 , , , As at 2 , , , 2 3 7 1 2 5 1,683,812 5,061,432 8,061,100 6 8 6 8 3 4,446,589 8,061,100 7 28,701,121 12,023,395 13,741,389 Mar 31, 2020 1 1 2 3 2

3

4 4 ------

4 4 6 6 , ,

3 3 0 0 1 1 Deduction adjustments

1 6 6 - 3 7 5

0 7 8 2 4 6 8 7 7 5 2 , , , 2 , , , 0 5 3 6 1 1 7 4 3 3 5 3

0 1 5 2 0 , , , 5 , , 755,752 982,377 , 3 6 6 5 2 2 4,628,468 6,443,730 3,614,511 0 3 5 1 0 3,462,985 3,614,511

1 for the year 12,433,168 1 Accumulated Depreciation 1 Depreciation 1 1

Asset 5 1 9 - 0 8 2

5 0 5 5 0 1 3 1 9 of 7 1 5 , , , , , , 9 3 2 8 0 6 4 6 3 4 0

1 7 1 7 0 7 928,060 As at 7 , , , , , , 983,604 6 0 9 7 0 2 4,079,055 7,394,927 7,297,659 4 8 4,446,589 5 6 6 6 4,446,589 16,267,953 April 1, 2019 1 1 2 1 2

- 5 4 5 1 1 5

Impairment 8 4 4 6 4 7 0 0 0 8 9 9 , , , , , , 7 5 8 2 8 8 and 0 5 3 6 8

2 4 1 9 9 2 0 , , As at , , , , 0 6 0 3 1 1 4 6 9,877,912 7,092,105 4 6 5 5 9 8 Mar 31, 2020 68,209,833 22,308,452 36,978,871 12,936,069 5 9 5

9 10,350,960 , , 12,936,069 , , Assets 1 1 1 1

t

n

e

ixed ------

- - - - - m

F r i

a Loss p of m I

s - - 7 7 - - -

-

n - 1 1 o i t 8 8

, c , u 2 2 d ments 4 4 adjust e D

3 3

verification

- 4 5 5 9 0 2 -

Gross Block 8 2 9 3 9 1 3 6 8 5 9 8 , , , , , , 3 7 1 5 6 8

0 7 9 8 7 6 7 4 0 5 6 3 , , , physical , , , 8 4 783,277 0 1 2 2 Additions 0 8 2,548,569 7,035,765 3,532,265 3,794,282 1 2,585,109 1 1 1 2,585,109 2 1 for

4

2 4 2

27 7 6 5 7 5 0 7 1 8 6 4 5 4 3 0 3 0 0 , , , , , , 9 1 and 7 4 8 2 9 8

3 9 8 6 6 6 9 , , 6 2 2 As at , , , , 26 1 1 0 9 1 9 3 8 - 4 7,329,343 7,092,105 2 5 3 7 6

9,567,683 April 1, 2019

5 61,174,068 18,776,187 33,184,589 10,350,960 3 5 3 ,

, , 10,350,960 , 1 No 1 1

1

t

t s e t n - s e e

k s

r r s Note d

s a

m s

a

r r o s n

s

p i a e a a ] e r

e y a n

l

Y r

e

u e r s W

B e l d

]

t o ] e Y Y b e e q i e l

l s g

i a t n g r r

u + A B e n s s

u a b c i [ [ s

o g a a n u

a i i p t refer A

u

u l i t

r i [ r e l o l e l h i t n i t

d o o g r w d P l c i i c p a m l n t i a a n v c a t i f a - v v f u r t t a n f t a t t o e s a e a e e articulars u l o l o u r x r r o o a o n N i n P

Notes forming part of the Financial Statements for year ended 31 B P m F f O R C E I P T S P T I P T C I T

Also

) ) ) ) . ) ) . i i ) i )

. i

i i i v i v i i v v ( ( B ( ( C ( ( ( ( A

Note: i.

Note No.9

217 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars As at As at March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

10. TRADE RECEIVABLES* (Unsecured) a. Trade receivables outstanding for a period exceeding six months from the date they were due for payment - considered good 135,683,806 76,468,618 - considered doubtful 89,960,352 14,526,721 225,644,158 90,995,339 Less : Provision for doubtful debts (See Note No- 38) 89,960,352 14,526,721 135,683,806 76,468,618 b. Others - considered good 170,336,255 107,386,838 306,020,061 183,855,456 * Refer Note No- 30 11. Cash and Cash Equivalents a. Cash on hand 38,707 340,318 b. Cheques in hand 2,713,000 - c. Balances with banks - In Current Accounts 8,221,598 30,021,921 - Term Deposits with Less than 3 Months 2,221,995,880 442,492,327

- Other Bank Balances a. Term Deposits (More than 3 Months and less than 12 month) 1,531,075,406 2,704,565,781 3,764,044,591 3,177,420,347 12. SHORT TERM LOANS AND ADVANCES (Unsecured) a. Advances to vendor 717,969 206,964 b. Advance Income Tax (net of Provision for Tax) 268,219,598 242,949,105 c. Other Recoverable 321,291 119,040 269,258,858 243,275,108 13. OTHER CURRENT ASSETS a. Accrued Interest on Term Deposit 55,740,547 9,188,437 b. Custom Duty Deposit Under Protest (See Note No- 23) 1,403,180 1,403,180 c. Unbilled Revenue 415,242,815 142,035,631 d. Income Tax Refundable 248,934,440 248,934,440 e. Input Tax Credit on GST 340,081,629 315,276,368 f. Prepaid expenses 2,156,612 559,590 1,063,559,223 717,397,646

218 Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars Year ended Year ended March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

14. REVENUE FROM OPERATIONS A. Sale of Services a. Revenue from Cargo Services 3,673,877,019 3,623,411,368 3,673,877,019 3,623,411,368 B. Other Operative Revenue a. Other Misc. Operative Income 81,034,531 66,109,387 81,034,531 66,109,387 3,754,911,549 3,689,520,755

15. OTHER INCOME a. Interest income 250,163,229 182,610,086 b. Miscellaneous Non Operative Income 4,775,180 9,970,219 c. Prior period Income 10,624,476 35,888,362 265,562,885 228,468,667

16. EMPLOYEE BENEFITS EXPENSE a. Salaries and wages 465,320,927 478,326,748 b. Contribution to Provident and Other Funds 11,431,562 522,681 c. Staff Welfare 2,537,773 548,108 479,290,262 479,397,537

17. OPERATING EXPENSES a. Concession Fee (See Note No- 33) 1,084,056,999 2,135,656,076 b. Watch & Ward expenses 196,331,149 108,082,944 c. Electricity & Water charges 139,802,237 137,717,485 d. Repairs & Maintenance of Civil works 53,897,223 51,590,481 e. Repairs & Maintenance of Plant and machinery 9,224,353 3,542,286 f. Repairs & Maintenance- Others 127,746,999 97,408,069 g. Insurance 1,136,630 1,612,458 h. Municipal Tax 993,259 2,087,285 i. Advertisement & publicity 11,052,234 5,464,673 j. Consumption of stores 2,397,952 3,476,279 k. Hire charges 2,223,050 - l. Travelling expenses 46,394,290 - m. Training expenses 9,229,100 - n. Upkeep expenses 9,570,172 9,892,626 1,694,055,644 2,556,530,662

219 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 2020 Particulars Year ended Year ended March 31, 2020 March 31, 2019 (in Rupees) (in Rupees)

18. DEPRECIATION AND AMORTISATION EXPENSE Depreciation and amortisation expense - Tangible Asset 112,531,265 103,070,801 - Intangible Asset 3,614,511 3,462,985 116,145,776 106,533,786 19. ADMINISTRATIVE AND OTHER EXPENSES a. Rent, Rates, & Taxes 2,018,033 357,159 b. Hire charges 88,390,925 32,846,989 c. Business Promotion Expense 4,002,963 2,084,081 d. Training expenses 315,000 491,147 e. Legal and professional 20,301,123 13,033,923 f. Payment To Auditor 925,000 850,000 g. Printing & stationary charges 7,908,073 5,445,947 h. Travelling expenses 3,851,705 6,269,346 i. Telephone, fax & internet charges 3,283,495 3,755,807 j. Custom Duty 1,552,785 1,204,412 k. Interest on GST & TDS 931,536 992,198 l. Miscellaneous expenses 10,420,233 10,176,209 m. Provision for Bad & Doubtful Debts 75,433,631 14,526,721 n. Prior period Expenses 163,791,896 1,931,244 o. Expenses on Corporate Social Responsibility 20,124,000 - 403,250,398 93,965,183 Note : (i) Payment to Auditor Statutory Audit Fees 825,000 750,000 Tax Audit Fees 100,000 100,000 925,000 850,000

(ii) The Company has spent `2,01,24,000/- (FY 2018-19 Nil) towards various schemes of Corporate Social Responsibility as prescribed under Section 135 of the Companies Act, 2013. The details are: a) Gross amount required to be spent by the Company during the year `2,01,23,829/- (FY 2018-19 Nil). b) Amount spent during the year on: Donation to Swachh Bharat Kosh 10,062,000 - Donation to Clean Ganga Fund 10,062,000 - 20,124,000 -

20 EARNINGS PER SHARES (EPS) Profit after Tax for the Year 923,664,851 608,946,113 Profit attributable to the Equity Share for the year 923,664,851 608,946,113 Weighted Average No. of Shares outstanding during the year 25,000,000 25,000,000 Basic Earnings per Share 36.95 24.36 Diluted Earnings per Share 36.95 24.36 Nominal Value per Equity Share 10.00 10.00

220 Notes forming part of the Financial Statements for the year ended 31st March 2020 21 RELATED PARTY DISCLOSURES As per Accounting Standard 18 - Related Parties, as notified under the Companies (Accounting Standards) Rule, 2006, the disclosure of transactions with the related parties as defined in accounting standard are given below:- a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise Airports Authority of India (AAI) Holding Company b) Key Management Personnel 1. Mr. Anuj Aggarwal (from 16th Aug 2019 to 5th Nov 2019) Chairman 2. Dr. Guruprasad Mohapatra (Resigned w.e.f. 31st July 2019) Chairman 3. Mr. Arvind Singh (Appointed w.e.f. 28th November 2019) Chairman 4. Mr. Keku Bomi Gazder Chief Executive Officer 5. Mr. Suresh Seshadri (Resigned w.e.f. 25th September 2019) Director 6. Mr. Angshumali Rastogi (Resigned w.e.f. 9th December 2019) Director 7. Mr. Anil Kumar Pathak Director 8. Ms. V. Vidya Director 9. Mr. Vandana Aggarwal (Appointed w.e.f. 20th March 2020) Director 10. Mr. Ranjit Kumar Das (Repatriated w.e.f. 3rd September 2020) Chief Financial Officer 11. Mr. J.B. Saini (Appointed w.e.f. 7th October 2020) Chief Financial Officer 12. Mr. Apil Agrawal Company Secretary c) Related Party Transactions: Class of Related Parties Total Enterprise (AAI) Key Managerial Personnel Nature of Transaction 31.03.2020 31.03.2019 31.03.2020 31.03.2019 31.03.2020 31.03.2019 (In Rupees) (In Rupees) (In Rupees) (In Rupees) (In Rupees) (In Rupees) Remuneration to Key Managerial - - 6,980,486 6,869,299 6,980,486 6,869,299 Personnel Gratuity to Key Managerial - - 72,271 - 72,271 - Personnel Incentive to Key Managerial - - 283,159 812,481 283,159 812,481 Personnel Contribution towards EPF of Key - - 372,602 145,252 372,602 145,252 Managerial Personnel Consultancy Charges - - - 82,500 - 82,500 Reimbursement of expenses - - 335,487 22,800 335,487 22,800 Revenue Transfer from AAI 363,509,057 418,026,390 - - 363,509,057 418,026,390 (Inclusive of GST) Expenses Transfer from AAI 848,070,307 864,502,057 - - 848,070,307 864,502,057 (Inclusive of GST) Concession Fees Paid 1,084,056,999 2,320,841,485 - - 1,084,056,999 2,320,841,485 (Inclusive of GST)* Dividend Paid 182,750,001 - - - 182,750,001 - Deposit Work 134,326,917 - - - 134,326,917 - Fixed Asset Transfer by AAI 311,186,566 236,393,238 - - 311,186,566 236,393,238 (Inclusive of GST and net of assets returned by AAICLAS)

Net Payable (including Expense 2,449,240,227 2,898,294,272 - - 2,449,240,227 2,898,294,272 Payable) Total 5,373,140,074 6,738,057,442 8,044,005 7,932,332 5,381,184,079 6,745,989,774 Related Parties have been identified and certified by the management and auditors have relied upon the same. *Current year figure is exclusive of GST however, Previous year figure is inclusive of GST.

221 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 20 22. Segment Reporting As the company's business activity falls within a single primary business, however, the company has identified the geographical segment on the basis of revenue such as North, South, East & West and the company has disclosed the Segment Reporting as per the prescribed guidelines under the Accounting Standard - 17 " Segment Reporting".

Particulars East North South West Unallocated Total (in Rupees) (in Rupees) (in Rupees) (in Rupees) (in Rupees) (in Rupees)

Segment Revenue 2019-20 836,234,509 153,264,081 2,405,220,697 360,192,262 - 3,754,911,549 2018-19 843,465,298 105,678,991 2,438,126,484 302,249,981 - 3,689,520,755 Segment Result Segment Result 2019-20 254,153,726 53,193,946 1,019,493,766 205,585,475 - 1,532,426,913 (Profit/loss) 2018-19 28,483,387 11,069,544 452,975,367 135,693,271 - 628,221,569 Unallocated 2019-20 470,257,444 470,257,444 corporate expense 2018-19 175,127,981 175,127,981 Operating Profit 2019-20 254,153,726 53,193,946 1,019,493,766 205,585,475 (470,257,444) 1,062,169,469 2018-19 28,483,387 11,069,544 452,975,367 135,693,271 (175,127,981) 453,093,588 Other income 2019-20 265,562,885 265,562,885 2018-19 - - - - 228,468,667 228,468,667 Profit before tax 2019-20 254,153,726 53,193,946 1,019,493,766 205,585,475 (204,694,559) 1,327,732,354 2018-19 28,483,387 11,069,544 452,975,367 135,693,271 53,340,684 681,562,253 Tax expense Income Tax 2019-20 - - - 385,242,344 385,242,344 2018-19 - - - - 51,384,595 51,384,595 Deferred Tax 2019-20 18,825,159 18,825,159 2018-19 - - - - 21,231,546 21,231,546 Profit After Tax 2019-20 254,153,726 53,193,946 1,019,493,766 205,585,475 (608,762,062) 923,664,851 2018-19 28,483,387 11,069,544 452,975,367 135,693,271 (19,275,456) 608,946,113 Other information Segment Assets 2019-20 489,146,694 296,126,008 1,914,301,135 405,236,742 4,107,687,958 7,212,498,537 2018-19 358,101,032 85,043,726 1,214,819,447 141,489,147 3,820,203,102 5,619,656,454 Segment Liabilities 2019-20 890,483,513 272,752,104 2,326,946,860 388,573,815 249,704,628 4,128,460,920 2018-19 916,569,034 123,448,487 1,778,566,467 191,332,968 229,051,930 3,238,968,887 Capital Expenditure 2019-20 75,123,570 159,712,991 254,396,845 133,615,305 5,204,972 628,053,683 2018-19 62,579,350 8,161,354 135,044,202 16,773,592 3,050,451 225,608,948 Depreciation, 2019-20 25,618,863 2,729,580 81,501,268 1,970,848 4,325,219 116,145,778 Amortization & 2018-19 26,578,295 2,480,434 73,103,087 1,165,492 3,206,479 106,533,788 Impairment

222 Notes forming part of the Financial Statements for the year ended 31st March 2020 23. Contingent Liabilities, Commitments and Proposed Dividend a. Contingent Liabilities

Pending litigation Financial Impact Financial Impact FY 19-20 FY 18-19 (Amount in Rs.) (Amount in Rs.) Commissioner Of Customs-In the matter of Recovery of Custom Duty 18,809,106 18,809,106 Waiver of demurrage charges in the matters of M/s Arihant 158,921 158,921 Electronic & Others Commissioner Of Customs-In the matter of cost Recovery charges 86,564,329 - Jac Airways- In the matter of counter claim raised by the customer 3,919,020 - relating to Amritsar station

b. Capital Commitments 31.03.2020 31.03.2019 (in Rupees) (in Rupees) Estimated value of contracts in capital account remaining to be executed and 173,730,493 292,995,715 not provided for (net of capital advances) (excluding GST) c. Proposed Dividend on Equity Shares The Board of Directors of the company has recommended a dividend of `11.08 per equity share for the financial year ended on March 31, 2020 and which is subject to approval of the members at the Annual General Meeting. The Company has not recognised the liability of such proposed dividend it its Books of Accounts and the same is in accordance with Accounting Standard by Institute of Chartered Accountants of India. 24. Operating lease The Company has provided office spaces on operating lease. The future minimum lease income in respect of period of lease of the premises, including the optional period of lease is as follows : Stations Lease rental Lease rental Lease rental (0-1 yr) (1-3 yr) (more than 3 yr) (In Rupees) (In Rupees) (In Rupees) Chennai 175,416,199 405,211,420 490,305,818 Kolkata 107,750,207 248,902,979 301,172,605 Other Stations 235,938,958 545,018,992 659,472,980 Total 519,105,364 1,199,133,391 1,450,951,403 The details as required under Accounting Standard 19 has been prepared by management and this has been relied upon by the auditors. 25. Employee Benets as per Accounting Standard -15 “All the employees of the company are on stand by deputation from the parent company. However, CEO, few employees deputed at regional/head office are hired on contractual basis for a period less than 5 years. The company has also hired Screeners & Multitaskers during the year on contractual basis for a period less than 5 years. The appointment of CFO has been done by Board of Directors as Stand Post Deputation. All the retiral benefits (such as gratuity and leave encashment) relating to employees stand by deputed from parent company (including the statutory dues) are borne by and recorded by the parent company in its books of accounts. During the year, the company has provided for its obligation towards gratuity of the CEO and other contractual employees based on the company's estimate. Further, company has not provided for its obligation towards retiral benefits (such as gratuity and leave encashment) towards screeners and multitaskers.Retiral obligation of CFO of the company has been estimated and recognized by the company as per the rules & regulations of the parent company and all such liability has been transferred to the parent company as the CFO has been appointed on stand post deputation basis." 26. Physical Verication of Fixed Assets The Company has not conducted the physical verification of its Fixed Assets. There are certain cargo fixed assets which have not been transferred by its Parent Company, and all such excess fixed assets would be subject to reconciliation and will be transferred by the Parent Company in due course.

223 Annual Report 2019-20

Notes forming part of the Financial Statements for the year ended 31st March 2020 27. Disclosure under AS-28 "Impairment of Asset". The management of the Company has not conducted the impairment testing during the financial year based on assumption that being the Third year of operation of the Company and majority of assets being acquired from the parent company, impairment testing is not required. However, the management of the Company is of the view that impairment testing will be conducted in due course. 28. Security Deposit Security Deposit in relation to customers/ Operations and Management contracts (O&M contracts) related to cargo business have been received/accounted for by the parent company and the parent company has retained the security deposit amounting to CY `10,89,45,405/- (PY `10,89,45,405/-) in its financial statements as on March 31, 2020. 29. T ransactions with parent company "The cargo business was earlier a business division of Airports Authority of India (Parent Company). The entire business activity related to this division has been transferred by the parent Company to the Company w.e.f. 01.04.2017, however, Revenue, expenditure and Fixed Assets and other related assets and liability of Cargo Business which has been undertaken by the parent Company, has been duly transferred to the Company during the year. Details of transactions as per Annual Report of the Parrent Company are given hereunder: -Payable on account of transfer of Revenue `35.35 Crore-Receivable on account of transfer of Expenditure `101.07 Crore- Receivable on account of transfer of Fixed Assets `31.11 Crore-Receivable on account of concession fees of `123.38 CroreAccordingly, the Net receivable as on 31/03/2020 by the parent company is `220.21 Crore however, payable balance as per books of the company is `244.93 Crore. Difference between Parent company and company is `24.72 crore, which is subject to reconciliation." 30. T rade Receivables and Trade Payables All the balances related to Trade receivables and Advances from Customers as well as Trade payables including capital creditors are under reconciliation and subject to confirmation from respective parties. 31.03.2020 31.03.2019 (in Rupees) (in Rupees) 31. CIF Value of Imports Purchase of Fixed Assets 81,978,137 33,580,243 81,978,137 33,580,243 32. Expenditure in Foreign Currency Purchase of books - 21,189 Travelling expense - 31,131 - 52,320

33. Concession Fee to AAI The Board of the company in its 12th meeting held on 07/03/2019 vide Agenda item no: 20.20 has approved the proposal to enter into a concession agreement with Airports Authority of India (AAI) for transfer of business and land/space of Airports Authority of India related to Cargo and Allied activities on lease basis to the Company. As per approval of both the Boards of Directors and other terms and conditions of boards minutes of meeting, the Concession Fees @ 30% of Revenue from Operation (excluding revenue earned by the company against reimbursement of screeners and multitaskers salary which is recovered from the parent company on cost to cost basis) shall be payable by the Company to AAI. Further, the Company has made provision of Concession Fees for the financial year 2019-20 by `108,40,56,699/-. 34. GST On Perishable Goods "Company has recognized revenue of `152,22,582 /- relating to cargo services of perishable goods (which primarily consist of agricultural products) in the current financial year. Company has not charged GST on invoices relating to TSP Charges, the Company has take up the matter with Authority of Advance Ruling established under GST Act to ascertain the applicability of GST on cargo revenue of such nature. The Company has filed application with Delhi Authority for Advance Ruling on 20/02/2020. No provision has been made in the books towards GST liability on such revenue. Although proportionate input in relation to such exempted services has been reversed in the books of accounts. 35 Royalty Income a The company has allocated space to M/s Etihad Airways, and M/s AVS Cargo Management Services P Ltd (GSA) is doing sales activity on behalf of M/s Etihad Airways. The company has to charge Royalty from GSA for the FY 2018-19 and 2019- 20, the management of the company has calculated estimate amount of Royalty to be charged from GSA and the same will come out to less than `2 Lac per year (Approx). Accordingly, the management of the company has decided to recognise such

224 Notes forming part of the Financial Statements for the year ended 31st March 2020 revenue during the next year, once all the related information for calculation of Royalty would be available with the company. b The company has assigned the right to Air India for providing Ground Handling Services to company's customer at 4 stations. The Air India has assigned right to it's subsidiary company (AIATSL) for providing Ground Handling Services. The company has to charge Royalty from AIATSL for the FY 2019-20. The company has raised invoice for the period April 2019 to June 2019 only. The company is unable to ascertain the amount of Royalty to be charged from AIATSL for the balance period since the underlying information/data has not provided by AIATSL. Accordingly, the management of the company has decided to recognise such revenue during the next Financial Year, once all the related information is available to ascertain the amount of Royalty. The estimated amount of income for the period July 2019 to March 2020 is estimated to be `75 Lacs (Approx) based on royalty earned for the period April 2019 to June 2019. 36. CISF Expenses During the FY 2018-19, parent company (AAI) raised a claim on the company amounting to `13.87 Crore towards services given by CISF to the Company which is initially borne by parrent company and subsequently claimed from the Company. The company did not provide for such expenditure against the said claim in anticipation of the fact that matter related to transfer of such expenditure shall be taken up with parent company. However, during the current FY the company has acknowledged the claim and consequently recorded the said expenditure in its books of account. 37. Pre Deposit Account (PDA) balances at Chennai and Kolkata location The Company has the policy of taking advance from customers in respect of specified cargo services, the advance has been kept under Pre Deposit Account (PDA) of such customer and advance is being adjusted against cargo services rendered by the Company. Such PDA accounts are maintained as subsidiary records in ICMS software (Billing Software, which is different from main accounting software). As per books of accounts (under SAP), PDA balances at Chennai and Kolkata location as on March 31, 2020 is amounting to `14,72,43,948/- and balances as per ICMS (Subsidiary records) is `9,40,47,551/-. The difference of `5,31,96,397/- is subject to reconciliation with the parent Company vis-a-vis reconciliation of customer balances as per ICMS is also to be done in due course. 38. Provision for Doubtful Debts The company has recognized provision for Doubtful debts amounting to `7,54,33,631/- which are outstanding for more than 1 year as per the significant accounting policy of the company, net of realizations made subsequent to the Balance Sheet date. 39. In-Line Hold Baggage Screening System ( ILHBSS) " The company has started a new business vertical during the financial year namely In-Line Hold Baggage Screening System (ILBHSs). The company has raised Invoices to its parent company Airports Authority of India based on cost recovery basis for amounting to `14.13 Cr. 40. Custom Charges "Customs Charges recognized in books of accounts on the basis of payment made at respective stations by AAI/ AAICLAS. Further remaining demands at stations Bhubaneswar, Madurai, Trichy company being pursued through MOCA to waive off and these demands not recognized as expense have been showed as Contingent Liability via Note 23 a. “ 41. P revious Year Figures “ Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary, to make them comparable with the current year figures. "

In terms of our Audit Report Attached For & on behalf of Board of Directors For P.R.KUMAR & CO. sd/- sd/- Chartered Accountants (J.B.SAINI) (APIL AGRAWAL) Firm Reg. No.: 003186N Chief Financial Ofcer Company Secretary PAN: AEWPJ2629A PAN: AMPAA1914L sd/- sd/- (RAHUL KATHURIA) (KEKU BOMI GAZDER) (ARVIND SINGH) Partner Chief Executive Ofcer Chairman M. No.: 090657 PAN: ARCPK6948G DIN:02780573

Place: New Delhi Date : 02.11.2022

225 Annual Report 2019-20

INDEPENDENT AUDITOR'S REPORT Report on the Audit of the Standalone Financial Statements Qualied Opinion company has billed for whole financial year We have audited the financial statements of M/s AAI despite having the order from the Head Office CARGO LOGISTICS AND ALLIED SERVICES about non-billing to the Customer and thus COMPANY LIMITED (a wholly owned subsidiary of Invoicing has been done in excess for M/s Airports Authority of India (“the parent `16,03,494/- and again the Revenue is Company”), a Body Corporate set up under The overstated to this extent. Airports Authority of India Act, 1994) (“the c. The company has recognized the revenue in Company”), which comprise the Balance Sheet as at relation to one of the Customers, namely Kerala March 31, 2020, and the Statement of Profit and State Industrial Enterprises Limited (Calicut) Loss and statement of Cash Flow Statement for the amounting to `1,87,75,372/-, however, as per year then ended and notes to the financial statements the documents provided to us, revenue is including a summary of significant accounting overstated by `8,88,056/- related to abovesaid policies and other explanatory information. customer. In our opinion and to the best of our information and d. Except for the period from April 2019 to June according to the explanations given to us, except for 2019 for the stations located at Kolkata, Amritsar the possible effects of the matter described in the and Lucknow, the company has not recognized Basis for Qualified Opinion section of our report, the the Revenue on account of royalty from one of the aforesaid financial statements give the information customers namely Air India Air Transport Services required by the Companies Act 2013 in the manner Limited and consequently, in the absence of so required and give a true and fair view in relevant information provided to us, we are conformity with the accounting principles generally unable to comment upon quantum of revenue in accepted in India, of the state of affairs of the relation to abovesaid customer. Company as at March 31, 2020, and profit and its e. The company has received an addendum cash flows for the year ended on that date. agreement from M/s Go Airlines (India) Limited Basis for Qualied Opinion and M/s Livewel Aviation Services Private Limited a. The company has not raised the Invoices during dated 03rd October 2019 with respect to non- the financial year which has resulted into chargeability of the Revenue regarding the NIL accounting of the abovesaid Revenue amounting Cargo. However, corresponding Credit Notes for to `27,44,79,943/- to Unbilled Revenue and the reversal of revenue recognised during FY consequently deferred the compliance of the 2018-19 and 2019-20 amounting to provisions of Goods and Services Tax amounting `50,13,847/- has been generated in the next to `4,93,46,725 to the next financial year and financial year (2020-21). As per the provisions of consequently, Debtors has been understated by AS 4 (Contingencies and Events Occurring after the amount of `32,38,26,668/-. the Balance Sheet Date), the company should have raised the Credit Note in relation to Nil b. The company has not raised the Invoices Cargo amounting to `24,50,900/- during the amounting to `69,46,541/- to various financial year under audit, consequently, we are customers. Further, the company has not raised of the opinion that the company has overstated the Credit Note during the financial year the revenue to the extent of `24,50,900/- and amounting to `607,263/- and thus the Revenue accounts receivable has also been overstated of the Company has been understated to the amounting to `50,13,847 plus applicable taxes. extent of non-generation of Invoices and overstated to the extent of Credit Note not f. The company has started a new business vertical generated during the financial year. Further, in the during the financial year under audit namely In- case of one of the Customer, , the line Hold Bagagge Screening System (ILHBSS) and we have observed that the company has

226 Report on the Audit of the Standalone Financial Statements raised Invoices to its parent company based on with the ethical requirements that are relevant to our payment made to the concerned employees and audit of the financial statements under the provisions this has led the accounting on payment basis of the Companies Act, 2013 and the Rules rather than on accrual basis and further, in the thereunder, and we have fulfilled our other ethical absence of information provided to us for our responsibilities in accordance with these verification, we are not able to comment upon its requirements and the Code of Ethics. We believe that impact on financial statement of the Company. the audit evidence we have obtained is sufficient and g. Accounting Standard 15 (Employees Benefits) – appropriate to provide a basis for our qualified The company has provided for Gratuity Expenses opinion. without computed its Actuary Valuation and Emphasis of Matters accordingly the provisions of Accounting We draw attention to the following matters: Standard 15 – Employee Benefits have not been complied with, consequently, we are unable to (a) Note No. 23 – Customs Charges : The company determine whether any adjustment is required in has received demand letter, amounting to relation to amount recognized as Gratuity `10,69,44,960/-, from Customs Department Expenses in the financial statement (also refer related to recovery of Customs Charges for Note No. 25). various stations and the company has recognized the expense amounting to `2,03,80,631/- on h. The company has raised invoices on the various payment basis. The company has pursued for stations in relation to rental income and screening waiver off the remaining demand through the charges, however, corresponding assets, through Ministry of Civil Aviation and the balance of the which such revenue is being generated, are not demand other than paid during the financial year appearing in the fixed assets register. In the has been acknowledged as Contingent Liabilities absence of information, we are unable to amounting to `8,65,64,329/-. comment upon the exact volume of revenue which have been generated without having the required (b) Note No. 28 – Security Deposits : Security corresponding fixed assets (also refer Note No. Deposit in relation to Cargo Segment has been 26). kept by the parent company within their books of accounts and hence corresponding entries have i. We have observed the differences of `24.72 not been passed in the books of the company. Crores as per the reconciliation provided to us in Further, the company has classified the Security respect of transactions taken place with its parent Deposits under Long Term and Short Term and we company, however, the reason for differences has have relied upon the classification done by the not been provided to us. Further, in the absence of management. certificate from the Parent Company, we are not able to comment upon the completeness of (c) Note No. 30 & 37 – Balances of Trade Revenue and Expenditure being transferred by the Receivables and Payables : Balances of Trade parent company to the company (also refer Note Receivables and Advances from Customers No. 29). (including PDA Balances) as well as balances of Trade Payables including the Capital Creditors We conducted our audit in accordance with the are still under reconciliations and confirmations. Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our (d) Note No. 33 – Concession Fees : The Board of responsibilities under those Standards are further Directors of the company and the parent described in the Auditor’s Responsibilities for the company has given consent for entering into an Audit of the Financial Statements section of our agreement for Concession Fees and accordingly report. We are independent of the Company in the company has accounted for the expenses for accordance with the Code of Ethics issued by the the financial year 2019-20. Institute of Chartered Accountants of India together (e) Note No. 34– GST on Perishable Goods : The

227 Annual Report 2019-20

Report on the Audit of the Standalone Financial Statements management of the company has considered the to those charged with governance. As the other services related to perishable goods as exempted information is not made available to us as at the date services and at the same time the management of this auditor’s report, we have nothing to report in has filed for Advance Ruling for such stand and at this regard. the same time the corresponding impact of GST Responsibility of Management for Financial Liability has been accounted for. Statements (f) Note No. 38 – Provision for Doubtful Debts : The The Company’s Board of Directors is responsible for company has provided for the debts as doubtful the matters stated in Section 134 (5) of the which have become overdue for more than 1 Company’s Act (“the Act”) with respect to the year amounting to `7,54,33,631/- as per the preparation of these financial statements that give a policy of the company during the financial year. true and fair view of the financial position, financial (g) The company has appointed Internal Auditor performance and cash flows of the Company in during the financial year under audit as per the accordance with the accounting principles generally Internal Audit Program designed by the accepted in India, including the Accounting Company. The Internal Auditor could not submit Standards specified under Section 133 of the Act their report due to Pandemic situation and read with Rule 7 of the Companies (Accounts) Rules, accordingly we also could not be able to consider 2014. This responsibility also includes maintenance the same for our audit procedures. of adequate accounting records in accordance with Our opinion is not modified in respect of the the provisions of the Act for safeguarding of the aforesaid matters. assets of the Company and for preventing and detecting frauds and other irregularities; selection Information Other than the Financial and application of appropriate accounting policies; Statements and Auditor’s Report Thereon making judgments and estimates that are reasonable The Company’s Board of Directors is responsible for and prudent; and design, implementation and the other information. The other information maintenance of adequate internal financial controls, comprises Directors Report alongwith its annexures that were operating effectively for ensuring the including Secretarial Audit Report but does not accuracy and completeness of the accounting include the financial statements and our auditor’s records, relevant to the preparation and presentation report thereon. Such other information is expected to of the financial statements that give a true and fair be made available to us after the date of this view and are free from material misstatement, auditor’s report. whether due to fraud or error. Our opinion on the financial statements does not In preparing the financial statements, management cover the other information and we do not express is responsible for assessing the Company’s ability to any form of assurance conclusion thereon. continue as a going concern, disclosing, as In connection with our audit of the financial applicable, matters related to going concern and statements, our responsibility is to read the other using the going concern basis of accounting unless information identified above when it becomes management either intends to liquidate the available and in doing so consider whether the other Company or to cease operations, or has no realistic information is materially inconsistent with the alternative but to do so. financial statements or our knowledge obtained in Those Board of Directors are also responsible for the audit or otherwise appears to be materially overseeing the company’s financial reporting misstated. process. When we read the report mentioned above, if we conclude that there is a material misstatement therein, we are required to communicate the matter

228 Report on the Audit of the Standalone Financial Statements Auditor’s Responsibility for the Audit of management’s use of the going concern basis of Financial Statements accounting and, based on the audit evidence Our objectives are to obtain reasonable assurance obtained, whether a material uncertainty exists about whether the financial statements as a whole related to events or conditions that may cast are free from material misstatement, whether due to significant doubt on the Company’s ability to fraud or error, and to issue an auditor’s report that continue as a going concern. If we conclude that includes our opinion. Reasonable assurance is a a material uncertainty exists, we are required to high level of assurance, but is not a guarantee that an draw attention in our auditor’s report to the audit conducted in accordance with SAs will always related disclosures in the financial statements or, detect a material misstatement when it exists. if such disclosures are inadequate, to modify our Misstatements can arise from fraud or error and are opinion. Our conclusions are based on the audit considered material if, individually or in the evidence obtained up to the date of our auditor’s aggregate, they could reasonably be expected to report. However, future events or conditions may influence the economic decisions of users taken on cause the Company to cease to continue as a the basis of these financial statements. going concern. As part of an audit in accordance with SAs, we • Evaluate the overall presentation, structure and exercise professional judgment and maintain content of the financial statements, including the professional skepticism throughout the audit. We disclosures, and whether the financial also: statements represent the underlying transactions and events in a manner that achieves fair • Identify and assess the risks of material presentation. misstatement of the financial statements, whether due to fraud or error, design and We communicate with those charged with perform audit procedures responsive to those governance regarding, among other matters, risks, and obtain audit evidence that is sufficient the planned scope and timing of the audit and and appropriate to provide a basis for our significant audit findings, including any opinion. The risk of not detecting a material significant deficiencies in internal control that we misstatement resulting from fraud is higher than identify during our audit. for one resulting from error, as fraud may involve We also provide those charged with governance collusion, forgery, intentional omissions, with a statement that we have complied with misrepresentations, or the override of internal relevant ethical requirements regarding control. independence, and to communicate with them • Obtain an understanding of internal control all relationships and other matters that may relevant to the audit in order to design audit reasonably be thought to bear on our procedures that are appropriate in the independence, and where applicable, related circumstances. Under section 143(3)(i) of the safeguards. Companies Act, 2013, we are also responsible Other Matters for expressing our opinion on whether the Due to the COVID 19 Pandemic evolved in the company has adequate internal financial country during the audit, we could not visit the controls system in place and the operating stations and we have formed our opinion based on effectiveness of such controls. limited records and documents made available to us • Evaluate the appropriateness of accounting at Head Quarter (CHQ – Delhi). policies used and the reasonableness of Report on Other Legal and Regulatory accounting estimates and related disclosures Requirements made by management. 1. As required by the Companies (Auditor’s Report) • Conclude on the appropriateness of Order, 2016 (“the Order”) issued by the Central

229 Annual Report 2019-20

Report on the Audit of the Standalone Financial Statements Government of India in terms of sub-section (11) the Company; of section 143 of the Act, we give in the f. With respect to the adequacy of the internal Annexure-I a statement on the matters specified financial controls over financial reporting of in paragraphs 3 and 4 of the Order to the extent t h e C o m p a n y a n d t h e o p e r a t i n g applicable, effectiveness of such controls, refer to 2. We are enclosing our report in terms of Section Annexure III; 143(5) of the Act, on the basis of such checks of g. Being a Government Company, pursuant to the books and records of the company as we the Notification No. GSR 463(E) dated 5th considered appropriate and according to the June 2015 issued by Ministry of Corporate information and explanations given to us, in the Affairs, Government of India, provisions of Annexure-II on the directions and sub-directions sub-section (16) of Section 197 of the issued by the Comptroller and Auditor General Companies Act, 2013, are not applicable to of India. the Company; 3. As required by section 143 (3) of the Act, we h. With respect to the other matters to be report that: included in the Auditor’s Report in a. Except for the matters described under the accordance with Rule 11 of the Companies Basis for Qualified Opinion paragraph, We (Audit and Auditors) Rules, 2014, in our have sought and obtained all the opinion and to the best of our information and information and explanations, which to the according to the explanations given to us: best of our knowledge and belief were i) The company has disclosed the impact of necessary for the purpose of our audit. pending litigations on its financial position b. Except for the possible effects of the matters in its financial statements – Refer Note No. described under the Basis of Qualified 23 to the financial statements; Opinion paragraph above, in our opinion ii) The company did not have long term proper books of account as required by law contracts including derivative contracts have been kept by the Company so far as it for which there were any material appears from our examination of those foreseeable losses; books. iii) There were no amounts which were c. The Balance Sheet, Statement of Profit and required to be transferred to the Investor Loss, and Cash Flow Statement dealt with by Education and Protection Fund by the this Report are in agreement with the books Company. of account. d. Except for the possible effects of the matters described under the Basis of Qualified Opinion paragraph above, in our opinion, For P R Kumar & Co. the aforesaid financial statements comply with the Accounting Standards specified Chartered Accountants under section 133 of the Act, read with Rule Firm Reg. No.: 003186N 7 of the Companies (Accounts) Rules, 2014; (Rahul Kathuria) e. Being a Government Company, pursuant to Partner the Notification No. GSR 463(E) dated 5th M. No.: 090657 June 2015 issued by Ministry of Corporate Affairs, Government of India, provisions of Place: NEW DELHI sub-section (2) of Section 164 of the nd Companies Act, 2013, are not applicable to Date: 02 November 2020

230 Report on the Audit of the Standalone Financial Statements Annexure-I (v) According to the information and explanation ANNEXURE OF THE INDEPENDENT AUDITOR’S given to us, the Company has not accepted REPORT deposits as per the provisions of the Companies Act, 2013 and consequently, directives issued by (Referred to paragraph (1) under the heading of the Reserve Bank of India; the provisions of “Report on Other Legal and Regulatory section 73 to 76 or any other relevant provisions Requirements” of our report of even date) of the Companies Act, 2013 and the Rules (i) (a) The company has maintained proper records framed there under are not applicable. showing full particulars including (vi) The provisions of the maintenance of the cost quantitative details and situation of fixed records as has been specified under sub-section assets. (1) of Section 148 of the Companies Act, 2013 (b) The company has not conducted physical and maintenance of cost records are applicable verification of the Fixed Assets, hence we are on the company, however, in the absence of any not able to comment upon any discrepancies record provided to us, we are unable to comment in relation to assets appearing under Fixed upon the maintenance of cost records by the Assets Register. company. (c) According to the information and (vii) (a) The company has been regular in depositing explanation given to us and on the basis of with appropriate authorities undisputed our examination of records of the Company, statutory dues including Income Tax, Goods land related to cargo business has not and Services Tax, Customs Duty, Cess and transferred by the parent company and as on other material statutory dues as applicable to balance sheet date, the company is in the it. Being a wholly owned subsidiary of M/s process of lease out such land to the Airports Authority of India (parent company), Company. Further, buildings amounting to majority of the employees are on standby `94,04,02,861/- (being purchase cost) deputation basis, therefore, statutory dues transferred by parent company against related to such employees, such as Provident monetary consideration which appears in the Fund, Professional Tax as applicable, are financial statements as building under fixed being deducted and deposited by the parent assets. company. However, Employees who are on (ii) The company does not have any inventory and the payroll of the company, all the employees consequently, clauses (ii) of paragraph 3 of the related statutory dues, such as Provident Order are not applicable. Fund, Professional Tax as applicable, are being deducted and deposited by company (iii) According to the information and explanations on regular basis. provided to us, the Company has not granted any secured or unsecured loans to companies, firms, (b) (b)A ccording to the information and Limited Liability Partnerships or other parties explanations given to us, there are disputed covered in the register maintained under section statutory dues, which have not been 189 of the Companies Act, 2013, consequently, deposited as on March 31, 2020, and the provisions of sub-clause (iii)(a), (b) & (c) of the details of the same are as under : Paragraph 3 of the Order are not applicable. Sl Name of Amount (`) Forum at (iv) The Company has not given any loan, No. the Statute which case is pending guarantee, security or made investment as stipulated under Sections 185 & 186 of the 1. Customs Act 1,88,09,106/- CESTAT, Kolkata Companies Act, consequently, clause (iv) of the (viii) In our opinion and according to the information Paragraph 3 of the Order is not applicable. and explanations given to us, the company has

231 Annual Report 2019-20

Report on the Audit of the Standalone Financial Statements neither taken any loan from financial institution, has transacted with the related party, i.e., M/s bank, government nor issued any debenture, Airports Authority of India (Parent Company) as hence provisions under clause (viii) of the per the provisions of the Section 177 and 188 of Paragraph 3 of the Order is not applicable to the the Companies Act, 2013 and the disclosure has company. been done under the financial statements. (ix) According to the information and explanations (xiii) As per the information and explanations given to us, the company has not raised moneys provided to us, the company has transacted with by way of initial public offer (including debt the related party, i.e., M/s Airports Authority of instruments) and no term loan has been raised India (Parent Company) as per the provisions of during the year, hence provisions under clause the Section 177 and 188 of the Companies Act, (ix) of the Paragraph 3 of the Order is not 2013 and the disclosure has been done under applicable to the company. the financial statements. (x) During the financial year we have come to the (xiv)The company has not made any preferential knowledge about the fraud taken place at allotment or private placement of shares or fully Kolkata Station during the financial year 2017- or partly executable debentures during the year 18 amounting to `51,11,570/- and as per the under review, accordingly, in our opinion and copy of FIR provided to us, this fraud has done by according to the information and explanations three parties alongwith the active connivance of given to us, clause 3 (xiv) of the Order is not employees of the company and others. As per applicable. the information and explanations provided to us, (xv) The company has not entered into any non cash `16.75,715 related to one of the parties have transactions with directors or persons connected been recovered and the corresponding income with him, accordingly, in our opinion and has been booked during the financial year under according to the information and explanations audit. given to us, clause 3 (xv) of the Order is not Further, we have been represented that an FIR applicable. has been filed on 18.06.2020 for further (xvi)The company is not required to be registered investigation. As per the explanation and under section 45-IA of the Reserve Bank of India information provided to us, pending Act, 1934, accordingly, in our opinion and Investigation with the Local Police, no income or according to the information and explanations recovery has been done upto the date of the given to us, clause 3 (xvi) of the Order is not signing of the financial statement. applicable. (xi) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs, For P R Kumar & Co. Government of India, provisions of Section 197 Chartered Accountants of the Companies Act, 2013, are not applicable Firm Reg. No.: 003186N to the Company, hence clause 3(xi) of the Order is not applicable. (Rahul Kathuria) Partner (xii) The company is not a Nidhi Company, hence in M. No.: 090657 our opinion and according to the information and explanations given to us, clause 3 (xii) of the Order is not applicable.As per the information Place: NEW DELHI nd and explanations provided to us, the company Date: 02 November 2020

232 Report on the Audit of the Standalone Financial Statements Annexure-I ANNEXURE OF THE INDEPENDENT AUDITOR’S REPORT (Referred to paragraph (2) under the heading of “Report on Other Legal and Regulatory Requirements” of our report of even date) Sl.No. Query Response 1. Whether the Company has system in No, complete integrated system is not in place to process all the accounting place, hence, we are unable to transactions through IT System? If yes, the comment upon the financial implication implications of processing of accounting on non-integration of accounts and transactions outside IT System on the integrity their integrity. of the accounts along with the financial implications, if any, may be stated. 2. Whether there is any restructuring of an There were no cases of waiver / write- existing loan or cases of waiver / write off off of debts/loans/interest. of debts / loans / interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, the financial year may be stated. 3. Whether funds received / receivable for There were no funds which have been specific schemes from Central / State received / receivable for specific agencies were properly accounted for / schemes from Central / State agencies. utilized as per its term and conditions? List the cases of deviation.

For P R Kumar & Co. Chartered Accountants Firm Reg. No.: 003186N

sd/- Place: New Delhi (Rahul Kathuria) Date: 02nd November 2020 Partner M. No.: 090657

233 Annual Report 2019-20

Annexure-III Annexure to The Independent Auditor's Report of even date on the Financial Statements of AAI Cargo Logistics and Allied Services Company Limited

(Referred to paragraph {3(f)} under the heading of “Report on Other Legal and Regulatory Requirements” of our report of even date) [Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)]

We have audited the internal financial controls over and the Guidance Note require that we comply with financial reporting of M/s AAI CARGO LOGISTICS ethical requirements and plan and perform the audit AND ALLIED SERVICES COMPANY LIMITED (“the to obtain reasonable assurance about whether Company”) as of March 31, 2020 in conjunction adequate internal financial controls over financial with our audit of the financial statements of the reporting was established and maintained and if Company for the year ended on that date. such controls operated effectively in all material Management’s Responsibility for Internal respects. Financial Controls Our audit involves performing procedures to obtain The Company’s management is responsible for audit evidence about the adequacy of the internal establishing and maintaining internal financial financial controls system over financial reporting and controls based on the internal control over financial their operating effectiveness. Our audit of internal reporting criteria established by the Company financial controls over financial reporting included considering the essential components of internal obtaining an understanding of internal financial control stated in the Guidance Note on Audit of controls over financial reporting, assessing the risk Internal Financial Controls Over Financial Reporting that a material weakness exists, and testing and issued by the Institute of Chartered Accountants of evaluating the design and operating effectiveness of India. These responsibilities include the design, internal control based on the assessed risk. The implementation and maintenance of adequate procedures selected depend on the auditor’s internal financial controls that were operating judgement, including the assessment of the risks of effectively for ensuring the orderly and efficient material misstatement of the financial statements, conduct of its business, including adherence to whether due to fraud or error. company’s policies, the safeguarding of its assets, We believe that the audit evidence we have obtained the prevention and detection of frauds and errors, the is sufficient and appropriate to provide a basis for our accuracy and completeness of the accounting audit opinion on the Company’s internal financial records, and the timely preparation of reliable controls system over financial reporting. financial information, as required under the Meaning of Internal Financial Controls Over Companies Act, 2013. Financial Reporting Auditors’ Responsibility A company's internal financial control over financial Our responsibility is to express an opinion on the reporting is a process designed to provide Company's internal financial controls over financial reasonable assurance regarding the reliability of reporting based on our audit. We conducted our financial reporting and the preparation of financial audit in accordance with the Guidance Note on statements for external purposes in accordance with Audit of Internal Financial Controls Over Financial generally accepted accounting principles. A Reporting (the “Guidance Note”) and the Standards company's internal financial control over financial on Auditing, to the extent applicable to an audit of reporting includes those policies and procedures that internal financial controls, both issued by the Institute (1) pertain to the maintenance of records that, in of Chartered Accountants of India. Those Standards reasonable detail, accurately and fairly reflect the

234 transactions and dispositions of the assets of the of compliance with the policies or procedures may company; (2) provide reasonable assurance that deteriorate. transactions are recorded as necessary to permit Opinion preparation of financial statements in accordance with generally accepted accounting principles, and According to the information and explanation given that receipts and expenditures of the company are to us, the company has not established its internal being made only in accordance with authorisations financial control over financial reporting on criteria of management and directors of the company; and based on or considering the essential components of (3) provide reasonable assurance regarding internal control stated in the Guidance Note on Audit prevention or timely detection of unauthorised of Internal Financial Controls Over Financial acquisition, use, or disposition of the company's Reporting issued by the Institute of Chartered assets that could have a material effect on the Accountants of India. Because of this reason, we are financial statements. unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether Inherent Limitations of Internal Financial the Company had adequate internal financial Controls Over Financial Reporting controls over financial reporting and whether such Because of the inherent limitations of internal internal financial controls were operating effectively financial controls over financial reporting, including as at March 31, 2020. the possibility of collusion or improper management We have considered the disclaimer reported above override of controls, material misstatements due to in determining the nature, timing, and extent of audit error or fraud may occur and not be detected. Also, tests applied in our audit of the financial statements projections of any evaluation of the internal financial of the Company, and the disclaimer has affected our controls over financial reporting to future periods are opinion on the financial statements of the Company subject to the risk that the internal financial control and we have issued a qualified opinion on the over financial reporting may become inadequate financial statements. because of changes in conditions, or that the degree

For P R Kumar & Co. Chartered Accountants Firm Reg. No.: 003186N

sd/- Place: New Delhi (Rahul Kathuria) Date: 02nd November 2020 Partner M. No.: 090657

235 Annual Report 2019-20

Annexure-II

Compliance Certicate

We have conducted the audit of annual accounts of AAI Cargo Logistics And Allied Services Company Limited for the year ended 31st March, 2020 in accordance with the directions/sub-directions issued by the C & AG of India under Section 143(5) of the Companies Act, 2013 and certify that we have complied with all the Directions/Sub- directions issued to us.

For P R Kumar & Co. Chartered Accountants Firm Reg. No.: 003186N

sd/- Place: New Delhi (Rahul Kathuria) Date: 02nd November 2020 Partner UDIN : 20090657AAAAAC9714 M. No.: 090657

236 237 Annual Report 2019-20

238 239

000 BhubaneswarAirport ChandigarhAirport

IndoreAirport TirupatiAirport

AhmedabadAirport PakyongAirport

Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi - 110003. https://www.aai.aero