INDEX

Contents Page No BOARD OF DIRECTORS Mr. Tejpreet Singh Chopra Chairman Route Map of AGM Venue : 1 Mr. David Skov Notice : 2 - 5 Ms. Hina Shah Directors’ Report : 6 - 34 Mr. Jan Damgaard Sorensen (upto 29 January 2019) Management Discussion and Analysis : 35 - 40 Mr. Julian Bevis Corporate Governance Report : 41 - 53 Mr. Mukesh Kumar, IAS (from 31 October 2018) Mr. Pradeep Mallick Mr. Pravin Laheri, IAS (Retd.) Business Responsibility Report : 56 - 65 Mr. Keld Pedersen Managing Director (upto 31 May 2019) Standalone Financial Statements Director (from 1 June 2019) Auditors’ Report : 66 - 73 CHIEF FINANCIAL OFFICER Balance Sheet : 74 Mr. Santosh Breed (from 2 November 2018) ! Cash Flow Statement : 77 - 78 COMPANY SECRETARY & COMPLIANCE OFFICER Notes to Financial Statements : 79 - 110 Mr. Manish Agnihotri Consolidated Financial Statements Auditors’ Report : 111 - 117 STATUTORY AUDITORS Balance Sheet : 118 Price Waterhouse Chartered Accountants LLP ""#"$% (Firm Regn. No. 012754N/N-500016) Cash Flow Statement : 121 - 122 Mumbai Notes to Financial Statements : 123 - 156 Auditors Report and Accounts of Pipavav : 157 - 199 REGISTRAR & SHARE TRANSFER AGENTS Railway Corporation Limited Karvy Fintech Private Limited (formerly known as Karvy Computershare Private Limited) Karvy Selenium Tower B, Plot 31-32 Gachibowli, Financial District, Nanakramguda, REGISTERED OFFICE Hyderabad 500032 Pipavav Port, At Post Ramapara- 2 Via District , 365560 CIN: L63010GJ1992PLC018106 Website: www.pipavav.com Tel: 02794 302400 Fax: 02794 302413 CORPORATE OFFICE 301, Trade Centre Bandra Kurla Complex, Bandra (East), Mumbai 400098 Tel: 022 30011300 Fax: 022 26522422 ROUTE MAP TO THE VENUE OF THE AGM ROUTE MAP TO THE VENUE OF THE AGM

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6 Annual Report 2018 - 2019 (Rs. In Million) Particulars For the year For the year ended ended 31 March 2019 31 March 2018 ['@ ]%"#q<% !]<#q%% `X +]"+"q" $]?@- XXU??]@X?[@@@U??X\\?@Q X]?YU?\?X\?@Q\?q # ':6Q<6[":<":Q:<Q<6 `?'XXXU?\X@[@X@YQ?@Q ~[?\Y?X\q_[?QU]@X or serious observation has been made by the Statutory Auditors and the Internal Auditors of the Company regarding \Q~Q\?Xq“?[[YQ?]?X@?Y\? strengthened and implemented.

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12 Annual Report 2018 - 2019 `?@Q?YU?^zzZU$%"#\?z[zZ? ?XQX^zzZU$%"#q`?@Q?U[\ ^“*XZ{[@\zYX[Xq # [<<[:"':Q6=Q:'8' `?'_?X?@[X?\@\?*'_X \? | U?Xq? | @@Y] Y \?  U Xq`?|X?X\?X_?|@@? @@Xq `?|XX?~XQ]@X\?\@UYU?|?{[@ X[?Y?@q `# :<Q<6b66 `?@Q?~XXQ@@@?ƒ\Y]?\Y @X?X[\XQq`?~Q\[\?XX UYQ?'X\@@@U?Q?@‚q`? 'XXQ?@@\?@Qq 'XXQ@[\X[XYXQ\X[]@XQ \Y‚ \ ?@ \ X [ [X] @X U? X] ] XYX XU [X?XX~@XXQ]\XQ~XQq k. DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER DISCLOSURES AS PER [<K"Q$:6;$$:Z[:[<6=>?@^ '@\?~@z"#&"$=\?]?{@XQZ@\?@QZq +]%+%?{[[_@Zq!]+#]q `?[@\?„Q{[XX&„{=qq{[[_]?\X \@QzQ]<<XQq`?[\„{U‚@XQ !qq `?[?@@\@XQ?XQ"+q""q `?@Q?X\#"@@XQXXq `?@Q\XXU?[XYX\U??@QY^?X@XQ Y^[U???X\@U??@?[ ?@X?\@q `?@\„{?XY@Y?\@[?Y^> ?@QY^q `?@Q{‚Xƒ?YQ˜+"Y?X[\+"{?$%"#@ +"{?$%"

Annual Report 2018 - 2019 13 # '::''':6:8[:$<:Qb _?@Q@QY\z??Xq`?@QY^ QY\]YQUQ\_]z??XU?X[?\XXU[ (a) The circumstances under which the shareholders can or cannot expect dividend `?@Q?XXQ_??XQ@? \XXU[@ &= _[[U?U‚[U??~[?@Q[YYXYY \YX@‚\@[?Y~@} &= `@\[~@\[U?} &= `?@Q;‘U?'ZXUQ]ZXUQ@~~Q\ from its shareholders. _[?@?@Q@Q?[\Y[???Xq `?Y\_YYQUQ\'@_€YQUQ\X_q ;* %%%*%% `?@Q?XX?\XXU[@U?XX[ q Q q \[\\X]\Q} q \[\U??\z?X''\?} q \ \[ ? @ @Q Y Y @Q Y ?U YQ?|q Yq `?\QXQ&= q \[\U?XU} q @[Y} q \&=&=Y?q '@[?Y]?|@Q]Y^\?XU]XQXX\ &=QX@][\@??[XY&=Q ?[&=X?[&=\\?[\?[XUX[X [&=U\\\@@@&X[@? @=&=??[[@ƒzX[\@?[[X [q ; :%€%!%*% `?@Q|?XXXUQ'XX\U?X[?~@ \ X \ ? ? XX @ \ ? Q] ?  '@ \ ? Q]?Q[XQ]?@QU\@]YXQ][U?X]? \@\[~@\^ZX@Q??\@QY@ YQ?|q ; $%%%*!% `?[UX@XQYX\?\?@Q[U?X]?\[~@ \^ZX@Q\XX???|?XX????X value. (e) Provisions with regard to various classes of shares `?@QXQ?XQX\?@XQ~Q?q'?@QQ? X\?]?XQ?XXY@YXQ\X[?@\Y\XX X\?q

" Annual Report 2018 - 2019 /# AUDITORS AND REPORTS `?@X?Z # 86:6"6[b[':6QQ[6"_b''-@Q_>?@‚ `?Y?zXXXz@\?@Q\?Q +"{?$%"#q *# 6Q:<[':$"_b''-@Q_>?@‚ \z$%U?z"+&+=\?@]$%"+]@YzX Z\@[@QzQq[XQ]{€Z?]@Qz? ?zXZ\?Q+"{?$%"#q `?Z@{Z+\@[\_Z@?`?XXz@ of the Company for the year ended 31st{?$%"<U?Y\‰X@\ ZXUQ@]@Q]\?Q?q '?XQ@YQ?@Q_Z\?Q+"st{?$%"<] @?%\??X[\ZXUQ@&Z=?XYQ@YX ‰‚[qZ?\~@X?zQ\XXUU??q?\? _Z\?Q+"st{?$%"<]ZXz@UXYXq`?\] ?@QXXz@Y‰Xz@YQZ Management. `?Z@{Z+X@?'@Z[X+%&!=U?z?X''' \?z|'&[YX[_XZ~@=Z[X]$%"][@\{q {‚?„@]'z_&*@\^{@|=@?|@[?X+"Y] $%"<]U??UY@|z@?*Xz‚?[\'@?*@Y]$%"?@- `?@Q?XQ]?YX\X?@U‚X? XYX?'X@X@@]XYQ`?zXŠ@\“@“‚X &]?YZX=]$%"+ZX?q_[?QU]@X X??@U‚X?Yq # "['$: _[?QU]?U\@X\\XX[ZX"+&"=\?@ &=ZX]$%"]YQ\@XQYQ?zQ\?@Q[? \?q

Annual Report 2018 - 2019 " x# _':6Q<6[6 ?X\z"+\?U?@&=ZX]$%"\? a. Q6:"b=Q_<b86$:'":„Q_:6'[ `?@Q[[?Y\X[[][?X[X“`q [?\YQ]?X[[\[Q?X[QY ~?\z"+&+=&@=\?@]$%"+U?ZX<\?@ &=ZX]$%"XYX?YXq `?\[?[[UZq$]+<#q#+{XX[UZq++!q<#{XX[?Uq *# Q_:6_Q$:< `?@Q?@Q\?[?Qz?X\?Q+"{?$%"# @?[q # 86Q"[<[_q86: ?\z"+&+=&=\?@]$%"+]\?XZ\?Q +"{?$%"#@?\z#$&+=\???Zq`? same is available on ?€€UUUq@@Xq@€€€€XX # Qzq<''$$Q:: ‹_?‚@]z??X]zX]|‚]|€?Xz @^{@|\?[@?@Qq‹_X U?X?\?@@@?@\XX@XQ\?[X ?@Q\@q

"*%8 TEJPREET SINGH CHOPRA CHAIRMAN ':??-@x/ - Date: 1 June 2019 X New Delhi

] Z@$Z^X _@X+!!% CIN: L63010GJ1992PLC018106 `X*q %$#+%$%% Fax No. %$#+%$"+ Email X@@Xq@ “Y UUUqq@

16 Annual Report 2018 - 2019 DISCLOSURE FOR RATIO OF REMUNERATION OF EACH DIRECTOR TO THE MEDIAN EMPLOYEE’S REMUNERATION AND OTHER DETAILS AS PER RULE 5 OF THE COMPANIES (APPOINTMENT & REMUNERATION) RULES, 2014 {Z@Zq+]%+% {[[_Z@Zq!]+#] `?[@\?_]?\X\]?\\]@QzQ {[]\Q]?XQ

*@\_€„{ [@ {q„X]{[[_  {qz?|] < {q{?[?]@QzQ@X\ < !%%"+q"" !*%%%Q#" `?@Q?@?\@XU??Y?XYQ? @Q{`@X][XYXXQq‰?]?{[?@XQ[?Y^q `?\@?[?@@XU??{[\Y‚?@XQ ?XX?\?Qq`?\?X[YU?{[?@XQq Average percentile increase already made in the salaries of employees other than the managerial personnel in the last %%%!`! !€%!%![X \@XQ??{[XX+\?{[XXq !!%Q `?@YQ?@QYZ@XQU??X[U??@X[XYXXQ YQ?@Q{`@Xq

Annual Report 2018 - 2019 17 ANNEXURE A Annual Report on CSR Activities 1. *!%QʭQ6%=%!`*!k *%kQ6%`# `?zZXQ?@QUY?€€UUUq@@Xq@€€€€[ 2. QQ6Q {qŠz??]?]'_ {q?]'z&Zq=]'_ {q„X]{[[_ 3. $Q%%. Zq+]#+q"{XX q $*Q6€!;!-* Rs. 69.86 Million K# '%Q6!%} &= `X@Y\?XQZq!#q

1 zXQ\X~@]?[X[ $XX[\Z^X 16.17 16.17 16.17 *z“_ ]XXQ][ YX‚ \?X\ 2 {X?[XX[]@@Q ŠX?]z\Q 170 villages of 3.07 3.07 3.07 _*Q X]\Q@U Environment Z^XYX‚ `z? *XQ]@X 3 '@[ ?X? X \ ?X] “@ 72 villages of Rajula 22.18 22.18 22.18 *Š`* X @?} z‚XX ? @U@ YX‚ X@\XXUYQX@q z‚XX_X@ '[ X‚ X@] 'XX z@ +XX[\Z^X 61.31 61.31 61.31 |']‘Z`']z“_] { \ Z YX U `{ XX[] Development |X‚ @X“q] @ \ ? XX? XX[] (Rural CSPC [XX@[@@q Development) Administration Admin q! q! q! _ * Details of the Implementing Agency: 6. :Q%%% any part thereof, the Company shall provide the reasons for not spending the amount in its Board Report. *XYX x# *% Q6 Q % Q6 $%= %Q6*`$%# “?YQX??@X@@[\zZXQ@XU?zZY^XQ\? @Qq

Keld Pedersen Hina Shah ' Q=Q6%*%Q

18 Annual Report 2018 - 2019 Annexure B FORM AOC-1 Part B Associates and Joint Ventures Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

*@\;‘ Pipavav Railway Corporation Limited "q|Xz?_ 31st{?$%"# $q_“???;‘U~ 28th{?$%%" 3.z?\;‘?XYQ?@Q?Q Number !]%%%]%"% @\'@;‘ Rs. 830 Million \ŠX[&[= +

Annual Report 2018 - 2019 19 Annexure C FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN %-@st March 2019 [Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014] I. :6:'_':<6

CIN : L63010GJ1992PLC018106 Registration Date : th August 1992 Name of the Company : Gujarat Pipavav Port Limited [Q€zY[Q\?@Q : Company having Share Capital \?Z[\X : ]Z@$Z^X] _@X]^+!!% `X%$#+%$%%%$#+%$"+ Email: X@@Xq@ “??X@Q : Yes *@] : „Q ? @ &\@XQ ‚U „Q X\Z[`\[]\Q Computershare Private Limited) „QzX@`U|]X+"+$] ?YUX]X_]*‚@[] ŠQY%%%+$ `X%%!"!$$$$ Email: @?Qq?‚Qq@

II. $:Q:$<8[6:66Q:::6"_Q$b XX?YY["%@\?X\?@Q?XXY

Name and Description of main products/services NIC Code of the Product/ % to total turnover of the service company [?X[X“` $$$ "%%

:::# $:Q[<6"_<':=6[86:':b'66Q:Q$:6

Name and address of the Company CIN / GLN _%}!*} % of %*% associate shares held Pipavav Railway Corporation Limited ‰$%%_$%%%"""## +

20 Annual Report 2018 - 2019 :# 6__<':$;+!6Q%8k!%+! (i) Q6_%

Category of #6%* No. of Shares held at the end of Shareholders of the year the year % Change Demat Physical Total % of Total Demat Physical Total % of Total during Shares Shares the year A. Promoters (1) Indian ='X€Š‰ b) Central Govt =z&= d) Bodies Corporate =|‚€' f) Any other zYX&=&"= (2) Foreign =*Z''X b) Other – Individuals =| $%]#%+]#+" $%]#%+]#+" +q%" $%]#%+]#+" $%]#%+]#+" +q%" =|‚€' e) Any other zYX&=&$= $%]#%+]#+" $%]#%+]#+" +q%" $%]#%+]#+" $%]#%+]#+" +q%" Total shareholding 207,903,931 207,903,931 43.01 207,903,931 207,903,931 43.01 of Promoter (A) = (A)(1)+(A)(2) 8#$!*%6% (1) Institutions a) Mutual Funds #$]<]$ #$]<]$ 19.13 ""$]#"+]#"% ""$]#"+]#"% 23.36 q$+ Y=|‚€' ]<"]+< ]<"]+< "q" ]"]++ ]"]++ 1.12 %q%+ =X d) State Govt(s) =‘X \='@ g) FIIs "+#]#+]% "+#]#+]% 28.86 ""!]+%%]"< ""!]+%%]"< $q%! q<% a) [‘X Funds =?&\Q= zYX&|=&"= $+]!$]!!! $+]!$]!!! #q" $+]!$#]$# $+]!$#]$#

Annual Report 2018 - 2019 21 Category of #6%* No. of Shares held at the end of % Shareholders of the year the year Change Demat Physical Total % of Total Demat Physical Total % of Total during Shares Shares the year Clearing Members "!]#% "!]#% 0.03 "]%<]!## "]%<]!## 0.22 0.18 Non Resident Indians #%"]$$ $"]!%% "]""<]<$ 0.23 <#]$% $"$]!%% "]%#"]<% 0.23 %q%" Non Resident Non Repatriation <+]$<$ <+]$<$ 0.12 <<]<" <<]<" 0.18 %q% ` $"]%% $"]%% 0.00 +]! +]! 0.01 0.00 =”X[' zYX&|=&$= +]$<]% !<<]x^= ^x=@@/ / = /- 275,535,979 K/#‚‚ >x^= ‚ =‚/K /-x=?@^ 275,535,979 K/#‚‚ 0.00 (B)=(B)(1)+(B)(2) Q#6%*Q! GDRs & ADRs Grand Total (A+B+C) 482,751,047 / = /- 483,439,910 100 ^ >= ?>= ‚/ /-x=?@^ 483,439,910 100 (ii) 6__<':"$6

Shareholder’s 6%* Shareholding at the end of the Name year Year No. of % of total % of Shares No. of % of total % of Shares % change Shares Shares Pledged/ Shares Shares Pledged/ in share of the !* of the !* holding Company to total Company to total during shares shares the year {`@X{ $%]#%+]#+" +q%" $%]#%+]#+" +q%" Total 207,903,931 43.01 207,903,931 43.01 ; Q_:$6ʭ6__<':;$<66$Q:"b=:"_:6Q_

6%* Cumulative Shareholding during the year the year No. of shares % of total No. of shares % of total shares of the shares of the Company Company At the beginning of the year $%]#%+]#+" +q%" $%]#%+]#+" +q%" _U'€_@z? NIL NIL NIL NIL ?X[[?Q\Q[?\ € &q[q XX@€\€Y€ U~Q= At the End of the year $%]#%+]#+" +q%" $%]#%+]#+" +q%" (iv) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND _<'6"'6''6

Sr. Shareholding at the Change in Shareholding Cumulative Shareholding Name of the Shareholder No * (No. of Shares) during the year No of % of total Date Increase/ Reason No of Shares % of total Shares shares Decrease shares of the in Share of the Company holding Company 1 ''' X ‘X +]%%]+ q$ +]%%]+ q$ Series 3 !€€$%"< 276 `\ +]%%]<$# q$ "+€€$%"< ""$]""$ `\ +]""]#" q$!

22 Annual Report 2018 - 2019 Sr. Shareholding at the Change in Shareholding Cumulative Shareholding Name of the Shareholder No * (No. of Shares) during the year No of % of total Date Increase/ Reason No of Shares % of total Shares shares Decrease shares of the in Share of the Company holding Company $%€€$%"< #]%"% `\ +]$"]#" q$< $€€$%"< <]< `\ +]$!+]%# q$# €€$%"< "%]%#! `\ +]$+]<% q+% ""€€$%"< !! `\ +]$]$" q+% $€€$%"< !!]% `\ +]#+%]! q+ $€€$%"< " `\ +]#+%]!+$ q+ <€!€$%"< ]$$+ `\ +!]+<]< q+ $$€!€$%"< "!]<#+ `\ +!]]< q! $$€!€$%"< `\ +!]] q! $#€!€$%"< "]$#]#< `\ +<]%<]$ q<< "+€€$%"< %+ `\ +<]%<#] q<< $€€$%"< 711 `\ +<]%#%]$<< q<< $€€$%"< " `\ +<]%#%]" q<< $€<€$%"< +$%]%%% `\ +<]"%]" q# +"€<€$%"< +]"%#]<# `\ "]"#]#++

2 Š_`@Q $#]#"+]<"# !q"# $#]#"+]<"# !q"# Š_'\ ""€€$%"< $%%]% `\ +%]""]+<# !q$+ "<€€$%"< +%]%%% `\ +%]"]+<# !q$ $#€!€$%"< %%]%%% `\ +%]<]+<# !q+< !€€$%"< +]+<+]%%% `\ +]$$]+<# q%< "+€€$%"< #]%%% `\ +]$%$]+<# q$< $%€€$%"< %%]%%% `\ +]%$]+<# q+#

Annual Report 2018 - 2019 23 Sr. Name of the Shareholder Shareholding at the Change in Shareholding Cumulative No * (No. of Shares) Shareholding during the year No of % of total Date Increase/ Reason No of Shares % of total Shares shares Decrease shares of the in Share of the Company holding Company +€<€$%"< <%%]%%% `\ +!]%]<<# q "%€<€$%"< +$]%%% `\ +!]<#]<<# q!$ +"€<€$%"< $]#%]%%% `\ +#]##]<<#

3 Matthews Asia Dividend Fund $"]+<"]#! q$ $"]+<"]#! q$ +"€<€$%"< +]!<$]! `\ "]!##]<$ +q!! €#€$%"< ]## `\ "]$]<< +q "€#€$%"< #%$]#+" `\ "!]+"] +q+< $"€#€$%"< +!"]%%< `\ "]##%]# +q+" $<€#€$%"< "]"]"$ `\ "]<!]+ +q% €"%€$%"<

$ Annual Report 2018 - 2019 Sr. Name of the Shareholder Shareholding at the Change in Shareholding Cumulative No * (No. of Shares) Shareholding during the year year No of % of total Date Increase/ Reason No of % of total Shares shares Decrease Shares shares of the in Share of the Company holding Company „‚{?&'X= "!]<%]$++ +q" "!]<%]$++ +q" Ltd "#€"%€$%"< +$]+!" `\ "!]]<$ +q% $!€"%€$%"< "%]+" `\ "!]+$]+" +q+< $€""€$%"< $]$#< `\ "!]+%%]$++ +q+ "!€""€$%"< #! `\ "!]$#]!+ +q+ ""€"€$%"# <]#+ `\ "!]$!]!# +q+! "<€"€$%"# "+"]$% `\ "!]""]<# +q++ $€"€$%"# ##]$< `\ "!]%"!]$"" +q+" "€$€$%"# +!]!%! `\ "]##]!% +q+" <€$€$%"# +]<#$ `\ "]#$]"+ +q$# "€$€$%"# ##! `\ "]#"]! +q$# $$€$€$%"# ++"]% `\ "]<+]#! +q$$ "€+€$%"# $]#<]+$$ `\ "$]!%]! $q!" <€+€$%"# "]%%]%%% `\ ""]"%]! $q+% $#€+€$%"# ""]!+ `\ ""]%#+]#<" $q$# Closing Bal +%€+€$%"# ""]%#+]#<" $q$#

‚X `@X {X "]!]$#< +q$ "]!]$#< +q$ Fund !€€$%"< "!!]"! `\ "]<$%]!$ +q$ !€€$%"< <]%+$ `\ "]$+]+% +q" "+€€$%"< ]%%% `\ "]"<%]+% +q" $%€€$%"< ]$#+ `\ "]!$]"+ +q%+ $€€$%"< $"! `\ "]!$$]#!" +q%$ €€$%"< $%]%%% `\ "]"]#!" $q#< "+€€$%"< $]$%%]%%% `\ "$]$"]#!" $q+ $€€$%"< "]%%%]%%% `\ ""]$"]#!" $q+$ +€<€$%"< $%%]%%% `\ ""]%"]#!" $q$< $€<€$%"< %%]%%% `\ "%]!"]#!" $q$% +%€""€$%"< #$%]%%% `\ #]!#]#!" $q"% $"€"$€$%"< $%]%%% `\ #]]#!" "q# "<€"€$%"# "]%%%]%%% `\ "%]]#!" $q"! $€"€$%"# %%]%%% `\ "%]<]#!" $q$ "€+€$%"# $]%]%%% `\ "+]+"]#!" $q Closing Bal +%€+€$%"# "+]+"]#!" $q

6 Š_ z \ ]!]" %q# ]!]" %q# ' <€!€$%"< !]"" `\ ]%$"]< "q% "€!€$%"< +!]+#$ `\ ]%]#% "q%

Annual Report 2018 - 2019 $ Sr. Name of the Shareholder Shareholding at the Change in Shareholding Cumulative No * (No. of Shares) Shareholding during the year No of % of total Date Increase/ Reason No of % of total Shares shares Decrease Shares shares of the in Share of the Company holding Company $$€!€$%"< ! `\ ]%!]" "q% +€<€$%"< $]"+ `\ ]%<#]$ "q% "%€<€$%"< +]"+ `\ ]"$+]% "q%! "€<€$%"< <+]+# `\ ]$%]% "q%< $€<€$%"< 976 `\ ]$%<]%+% "q%< +"€<€$%"< "]"< `\ ]$#]$%< "q%# €#€$%"< "!]$%# `\ ]$!]" "q%# $"€#€$%"< ]!< `\ ]$$]<< "q%# $<€#€$%"< <%]"" `\ ]++]%! "q"" €"%€$%"< ""$]+!" `\ ]!]" "q"+ $€""€$%"< $]%%% `\ ]#%]" "q" €"$€$%"< "]"%]<$ `\ !]#]$$ "q+! +"€"$€$%"< 7122 `\ !]!%$]+! "q+ €"€$%"# !+]%+ `\ !]!!]" "q+< "<€"€$%"# %%]%%% `\ ]%!]" "q! "€$€$%"# %%]%%% `\ ]!]" "q! Closing Bal +%€+€$%"# ]!]" "q!

7 ;{[z'‘ ]#]<"< "q! ]#]<"< "q! Investment Company (Mauritius) Ltd Closing Bal ]#]<"< "q!

8 Axis Mutual Fund !]#+]"" "q !]#+]"" "q !€€$%"< +!]%%% `\ !]!%<]"" "q+ "<€€$%"< !] `\ !]+]+< "q+ $€€$%"< !!]"+% `\ ]

10 ‘[ 'X !]$]$$" "q+# !]$]$$" "q+# Explorer Fund Closing Bal !]$]$$" "q+#

26 Annual Report 2018 - 2019 ; 6__<':"':Q6'zb:<$6<

Sr. For each of the Directors and KMP 6%* Cumulative Shareholding No. of the year during the year No. of % of total shares No. of % of total shares shares of the Company shares of the Company 1 {q„X]{[[_ At the beginning of the year _ U ' € _ z? ?X[ [?Q\Q[?\ €&q[qXX@€\€Y€U ~Q= At the End of the year 2 {qz?|]?\X\ At the beginning of the year 80 80 _ U ' € _ z? ?X[ [?Q\Q[?\ €&q[qXX@€\€Y€U ~Q= At the End of the year 80 80 3 {q {? [?] @Q zQ @X\ At the beginning of the year _ U ' € _ z? ?X[ [?Q\Q[?\ €&q[qXX@€\€Y€U ~Q= At the End of the year # :'8'66 'Y\?@QX[[€Y\Q@q

Secured Loans Unsecured Deposits Total excluding deposits Loans :* Indebtedness at the beginning of NIL NIL NIL NIL ?XQ =X@ ii) Interest due but not paid ='Y `X&œœ= Change in Indebtedness during ?XQ _ Addition _ Z Net Change 'Y?\?XQ NIL NIL NIL NIL =X@ ii) Interest due but not paid ='Y `X&œœ=

Annual Report 2018 - 2019 27 VI. [:"':Q6'zb:<$6< # !'=q%'}

Particulars of Remuneration Name of MD/ WTD/ Manager Total Amount Mr. Keld Pedersen 1 Gross salary &=zXQ"&"=\ Zq"%q+{ Zq"%q+{ ?'@]"#!" &Y=‘X\~€"&$='@]"#!" Zq!q"${ Zq!q"${ &=X\XQ"&+='@ Nil Nil ]"#!" 2 z‚ Nil Nil 3 zU~Q Nil Nil Commission Nil Nil \ ?]\Q ?]X\Q\@| Rs. 10.89 Mn Rs. 10.89 Mn Total (A) #/x#-K #/x#-K Ceiling as per the Act Rs. 102.81 Mn Rs. 102.81 Mn B. !'

Particulars of Name of Director Total Amount Remuneration 1. Independent Directors Mr. Tejpreet Ms. Hina Shah Mr. Pradeep Mr. Pravin Laheri, Singh Chopra Mallick IAS (Retd.) _ \ [ Y € Zq!%%]%%% Zq#%]%%% Zq"]%%%]%%% Zq"]"%%]%%% Zq+]!%]%%% @@@[ _ Commission Zq"]%%]%%% Zq%]%%% Zq%]%%% Zq%]%%% Zq+]%]%%% _ ?]X\Q `X&"= Zq$]"%%]%%% Zq"]%%]%%% Zq"]%]%%% Zq"]<%]%%% Zq]%%]%%%

2. Other Non-Executive Directors Mr. Jan Mr. David Skov Mr. Julian Mr. Mukesh Damgaard Bevis Kumar, IAS* Sorensen* _ \ [ Y € Nil Nil Nil Nil @@@[ _ Commission Nil Nil Nil Nil _ ?]X\Q Nil Nil Nil Nil `X&$= Nil Nil Nil Nil `X&|=ž&"œ$= Zq$]"%%]%%% Zq"]%%]%%% Zq"]%]%%% Zq"]<%]%%% Zq]%%]%%% Total Managerial Rs. 2,100,000 Rs. 1,700,000 Rs. 1,750,000 Rs. 1,850,000 Rs. 7,400,000 Remuneration Overall Ceiling as per the Act #>?=K/?=??? *Held Directorship for part of the year

28 Annual Report 2018 - 2019 Q# !z%$%'}}q%'

Particulars of Remuneration Key Managerial Personnel CEO Company CFO Total Secretary 1 Gross salary &=zXQ NA Zqq#{ Zqq+{ Rs. 13.12 Mn "&"=\?'@]"#!" &Y=‘X\~€ NA NA NA "&$='@]"#!" &= X \ XQ "&+= NA NA NA '@]"#!" 2 z‚ NA NA NA 3 zU~Q NA NA NA Commission NA NA NA \ ?]\Q ?]X Rs. 1.11 Mn Rs. 2.00 Mn Rs. 3.11 Mn z\Q| Total #/#x? Rs. 9.53 Mn #@/#>-

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Type Section of Brief Details of Authority Appeal made, the Description Penalty / [RD /NCLT/ if any Companies Punishment/ COURT] (give Details) Act Compounding fees imposed A. COMPANY Penalty NIL NIL NIL NIL NIL Punishment NIL NIL NIL NIL NIL Compounding NIL NIL NIL NIL NIL B. DIRECTORS Penalty NIL NIL NIL NIL NIL Punishment NIL NIL NIL NIL NIL Compounding NIL NIL NIL NIL NIL C. OTHER OFFICERS IN DEFAULT Penalty NIL NIL NIL NIL NIL Punishment NIL NIL NIL NIL NIL Compounding NIL NIL NIL NIL NIL

Annual Report 2018 - 2019 29 SECRETARIAL AUDIT REPORT [Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2019 `] `?{@Y Gujarat Pipavav Port Limited Pipavav Port Z@$Z^X]@X ^+!!% _z] “??X\?@X\XYXQ??[ [YQGujarat Pipavav Port Limited &?\XX“the Company”=qzXU @?YXY\X[?€Q@X[ thereon. |\?@Q|‚]]{|‚]@ZX?@ YQ?@QX?\@YQ?@Q]\][?ƒ[? \X]U?YQ?]?@Q?][?XQ+"st{?]$%"#] @XU??QX?X??@Q?|@X @?@X?]?@Y^?[@?\ "q “?@?Y‚]]@Y‚]\@X?@YQ^ @ &? @Q= [ Annexure I] \ ? X Q +"st {?] $%"#] [ ? provisions of: &= `?@]$%"+&?=?X@??XYX} &= `?z&Z[X=]"#!&zZ=?X@?} &= `?_]"##!?Z[X|QXU\@?} &=[?[{[@]"###?X[X@??\[_ '@} &=`?\XXU[Z[XXY?z?[|\']"##$&z|' = q `?z?[|\'&zYX~\z?`‚=Z[X]$%""} q `?z?[|\'&?Y\'`[=Z[X]$%"} q `?z?[|\'&[YX[_XZ~@=Z[X]$%"} $q \?\XXU[Z[XXY?z?[|\']"##$ &z|'=UXYX?@Q?XQ q `?z?[|\'&'\X_XZ~@=Z[X]$%%#} q `?z?[|\'&_X[\~Qz?=Z[X]$%%#} q `?z?[|\'&|QY‚\z=Z[X]"##<} q`?z?[|\'&Z['z?`\[=Z[X]"##+][[ ?@X[U?X} q`?z?[|\'&@XQz‚z?@@XQz‚?z?@= [X]"###} q `?z?[|\'&z?|@XQ|=Z[X]$%"}

30 Annual Report 2018 - 2019 +q “\??]?[[?@XQ@X[?@Q@\?X @?\]?‚Y]?@Q?@XU??]U Z[XXYXXXQ?@Q?X[Annexure – II. “?X@@XU??XYXX\?zXzYQ`?'\@Q z\'?\?@]$%"+q _[?XQ]?@Q?@XU??\?]ZX]Z[X]X] z]q@YY^ `?XX@\?@Q\?Q+"st{?]$%"<U?Y\ X@\ZXUQ@]@Q]\?Q? ]U???Y@"&=?|Z\?XQ '@Z[X+%&!=U?z?X'''\?z|'&[YX[_X Z~@=Z[X]$%"][@\{q{‚?„@]'z_&*@\^ {@|=@?|@[?X+"Y]$%"<]U??UY@|z@? *Xz‚?[\'@th*@Y]$%"

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32 Annual Report 2018 - 2019 ANNEXURE - II

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Annual Report 2018 - 2019 33 ANNEXURE III `] `?{@Y Gujarat Pipavav Port Limited Mumbai Our report of even date is to be read along with this letter. "q {\zX?YXQ\?@[@\?@QYXQ ?XYq $q “?\XXU?UYYXY? \?\?zXq`?UY?\ Xq“YX??]U\XXUYXY\q +q “??\X|‚\\?@Qq q “?~]U?Y?{[@Y?@X\XU]X[X ?[\q q `?@X\?\?XYXXU]X][X]?YXQ\ @[@q@UX@?\Yq !q `?zX??\YXQ\?@Q\?\Q\\ U?U???@[@??\\\?@Qq For RATHI & ASSOCIATES COMPANY SECRETARIES

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+ Annual Report 2018 - 2019 Management Discussion and Analysis For the year ended 31 March 2019 Introduction `?@Q[X@?~@?@z|'&[YX[ _XZ~@=Z[X]$%"q `?\XXU[XQ\?X\@Q\^@ XQ\?Y?X@\?QU]U?X@\@\?Q +"{?$%"

Annual Report 2018 - 2019 + `?X?@@?[XYX?[QX\QY‚?XU?@X \{[`‚q`?X??@Y\X?[X?@?@ X[XQ]Y?XXXQ@U??Q@?\[?q`? ??[X\@?Y[[U???'“Y\?X[Qq *?X]'\?Q\U@‚[XYXXQ?XQ?X?Q[U?YXY YQ?'@QX@‚\??[Xq{`@X??[?X @YXU??Y[XYX@X\XU??\z\\q|[\{`@X ?[XYX]?@Q@\[?Y?@[?@XU? ?{`\Xq _QYX‚[@XQ@XX@?“\?Qq“?@? "%%X]?@\UXQUXXX‚XQX[YU@XQ\@Xq `?X@“\'?\Y$[?XQ$%"<"#Qq| @YU???[YXXQ[\XX@[@\??@q|?@Q ?X[X[\XYQX*??X?\?YYX ?XX@@q'\X]?Q\[Y@[X\\YQ[ @Y?@@@?@X‚XQq'@?“\'YQY $![?XQ$%"<"#QY?\[U?UX?@X? \?[?X@‚q Operations Review X@?[?\?QUU#%+]+`‰[%$]

36 Annual Report 2018 - 2019 &= _[[U?U‚[U??~[?@Q[YYXYY\YX @‚\@[?Y~@} &= `@\[~@\[U?} &= `?@Q;‘U?'ZXUQ]ZXUQ@~~Q\\@ shareholders. _[?@?@Q@Q?[\Y[???Xq`?Y \_YYQUQ\'@_€YQUQ\X_q ;* %%%*%% `?@Q?XX?\XXU[@U?XX[ = Q q \[\\X]\Q} q \[\U??\z?X''\?} q \\[?@@QYY@QY?UYQ ?|q = `?\QXQ&= = \[\U?XU} Y= @[Y} iii) out of (i) or (ii) or both. '@[?Y]?|@Q]Y^\?XU]XQXX\&=Q X@][\@??[XY&=Q?[&=X ?[ &= \\ ?[ \ ?[ XU X [ X [ &= U\\\@@@&X[@?@=&=??[[ @ƒzX[\@?[[X[q ; :%€%!%*% `?@Q|?XXXUQ'XX\U?X[?~@\X \??XX@\?Q]?'@\?Q]?Q [XQ ] ? @Q U \@] YXQ] [U? X] ? \@ \[ ~@\^ZX@Q??\@QY@YQ?|q ; $%%%*!% `?[UX@XQYX\?\?@Q[U?X]?\[~@\ ^ZX@Q\XX???|?XX????XXq (e) Provisions with regard to various classes of shares `?@QXQ?XQX\?@XQ~Q?q'?@QQ?X\ ?]?XQ?XXY@YXQ\X[?@\Y\XXX\?q Financial Results `?@QZ\@\'@\@z?['@q`XZ\@ \?Q+"{?$%"#[UZq]%"#q<%{XX[Zq!]<#q%%{XX[?Qq '@\@z\'@\@{z][ŠX[]z[UXX Xzq'@\@zUZq!]<%q!!{XX[Zq]#$q<{XX\?Q +"{?$%"

Annual Report 2018 - 2019 37 ?['@@XX\@YX[\X?X'@\@ q?['@\?Q+"{?$%"#UZq+#q"{XX[Zq+!q$${XX\? Q+"{?$%"

38 Annual Report 2018 - 2019 \?XYXYQ{`@XXX@XU?\XYXYXz\Q_Qq`?Q?XYX z\Q_QUY+%X$%"#q`??@Uz`‹_'Z*`‹Z*'*Z{`Š“‹““Z„ U??@\[[[U??XX[?[?Q?@@\ @‚[?\XU‚?XX?@Q@XQUXX?@XQU‚[ ???@\XQQ\QqzX[@@U[ƒ\?Q[\@+%X $%"#U??@qz”ƒUX?@?UU\Xq_[ U??@\@@]‚Q‚UY[?U‚[?Y\@@U? X\X@\?‚@@ƒ[@q?XXƒUXXY@X@@Y@q `?XYXz\Q_QUQUXXYQ?@XQ]?@Q? @XQ@?@Q@@@?z\QzQ\XX?‚?Xq Q6%*%;Q6 {`@XzZ[\?UQ?@QYq'@[\X ?[ Y ? XX @@ @@Q X@] ? Y @Y\‚[Q??Q@X@UXXYQ?XX@@Qq `?@Q?\@XX\XX@?Y?\XXU[[[X _ ??@?[[YXYUXX@@X@} _ U@X?Y\XXXX[?X?U‚[U X@\Y\?XX\[[} _ [?[X?X?X[YQ[\][@?@\ X} _ ‚XXX@YQ[?X?XYXU?X\U@?YQ @U[?@U[Y~XQX\} _ @XU‚X} _ “‚U[[U\[YX\?Y\]XYX[\XXX[ ?XXQ?YX} _ @XQ@\X[YXƒ?q@Q[@ @XQ@X[[zZ} _ ?@\XXX]@[QYQ[@XQ?X\\@ and their families. !Q"! _ _ ŠX?@zYXQ _ z@_X@zX|^ _ “@@U@ _[?Q+"{?$%"#@\?‚QzZ^U _ zXQ \ ~@] `?[[ z  ]X XQ ‰[ \ ?X \ _ [{XYQXX[]@@Q`X]z\Q@U _ '@[?X?X\U@?X]X@?]z‚XX?_X@ \XXUYQX@ _ '[‚X@]{\ZYX“`{?XX[]@\?XX? XX[[XXX@[@@q

Annual Report 2018 - 2019 39 `?@QYU?^zzZU$%"#\?z[zZ??XQ X^zzZU$%"#q`?@Q?U[\^“*X Z@[@\zYX[Xq Outlook `?'{?[XYX@Q+q!‹$%$%\‹$%"#]YQY[U?\@? '@XU[U[@[[@‚@?[???[U?XXXQ @q?'{^]'[UYQq+‹$%"#YQq‹$%$%q`?[U?' @\@@X@\X\@][\\YX‚]Q@ Y@@@\@?XXQq Human Resources/ Industrial Relations \?XXXYXXQ{`@X~XX?@XQX@XQ[[@ zQU??XQYQX[Q?~@?€`@Xq |?X\?Q]\Y‚?{[@\{`@XU??@? €`@X{[@\Qq `?Q\{`@XX@[?~XU??{`\Xq`?{[@ [#"@XQ\Y‚XX?Q?Q@@[[ Y\\@‚?@QYXU‚q {`@X[XYXXQXX@`?Qz\zQ\XX!€`@XU? ?\Xq`?zQX?\@YQ?€`@X\@@XX @q{`@X?[?zQ??[??@@[ ?`”Xq Cautionary Statement @\?{[@_XQ@Q\UX‚[@U??@[ \XYXzUZ[Xq`?\UX‚[@X‚U‚U‚] ?\?\X]U??@QXX]\@?@Y\\ \@Q\X]\@?@@XYQ?@q

% Annual Report 2018 - 2019 CORPORATE GOVERNANCE REPORT

`?_?XZ\^@&?@Q{`@X =\?Q+"{?$%"#q The Company’s philosophy on Corporate Governance `?@Q\XXU?[?\?]Q[Q?X?Q U?X[Yq`?@Q?\\@XQ]{[[_* _q`?XU??‘X\XXUYQ@{`@X??\? {‚X??UQUYq`?[[X\Y? X]?@@@?‰*XYX@]@@@X]@@@q \\'`[“?X|XUXQX\@[X\q`? X @X U? ? ~@ \ X z|' &[ YX[ _XZ~@=Z[X]$%"qQ\?XXYX@QUY?€€UUUq @@Xq@€€€€[ Board of Directors `? \ ? @Q | \ _ @ X \ # _] \ U?? "  _] '_X[??@\?|]+**'_"*  *' _ *@ \ ^ {@ | {| ? [@ +% z@Y"##<YU?@Q{|qŠU]U??\**'_ +%;Q$%"#]?|[?<X$**'_q `?'_XX“@_q`?@@XU??~@X Z[X"\?z|'&[YX[_XZ~@=Z[X]$%"&?[Z[X=q *\?_\?@Q{@Y\@?"%@@?@\@?@@? @U???Q?X_?q *\?_?QX?YU?@q `?'_\?@Q@XU??\Z[X"!&"=&Y=\?[Z[X and are independent of the Management of the Company. `?@[Q\_?|]?|{[]@Y\?@@ ?@?€@@Y??XYQ?@@@z‚?XZX?@@[YXU

Name Category No. of Board Whether No. of No. of Committee !* Meetings attended attended Directorships positions held in of shares during the year last AGM in other !*%% held as of ended 31 March !*%% companies @ 31 March 2019 companies $ 2019 Held Attended Chairman * {q`^z[? Independent Yes 2 1 Nil Nil ? * Chairman DIN:00317683 {q_z‚ *' 2 No Nil Nil Nil Nil _'*%<"%+# * {qŠz?? '* Yes Nil Nil Nil Nil _'*%!!!#$  Mr. Jan Damgaard *' Nil No Nil Nil Nil Nil zŽ * _'*%!%<#+# Mr. Julian Bevis *' Yes Nil Nil Nil Nil _'*%%"!%%% *

Annual Report 2018 - 2019 " Name Category No. of Board Whether No. of No. of Committee !* Meetings attended attended Directorships positions held in of shares during the year last AGM in other !*%% held as of ended 31 March !*%% companies @ 31 March 2019 companies $ 2019 Held Attended Chairman * {q{‚?„@] *' 2 Nil NA 7 Nil Nil Nil 'z™ * DIN: 06811311 {q{XX‚ Independent Yes Nil Nil Nil Nil _'*%%%!"$! * {q?] Independent Yes 1 Nil Nil IAS (Retd.) * _'*%%##%<% {q„X {[[_ Yes 1 Nil Nil Nil _'*%""< Ž_?\{q;_@[z\\+%;Q$%"#z"!&"=&Y=\?@ ]$%"+ ™{q{‚?„@]'z*@^{@|U_\\+"Y$%"< ?_?X_?\@@]X_?]_?z< @?@'q @@\@@z‚?XZX?@@XQq Details of Directorships in Other Listed Companies

Name of the Director Name of Other Listed Companies & Nature of Details of Committees@ Directorship Chairman Director {q`^z[?? zZ@'_ z‚?XZX? Nil {q{‚?„@]'z zŒ@ Nil Nil **'_ {q?]'z&Zq= ''@'_ z‚?XZX? Nil zX`?X[Q@'_ @@\@@z‚?XZX?@@XQq ?_?*\_??@@?Y]\?? _\?@Q?XQ_?Q?@q `?|@?YY?~@\YQ?@Q?@\ _\XXU

Name of the Director Skills/ Expertise/ Competencies {q`^z[???@ z[|{[@ {q?]'z&Zq= ]Y'XUzZ {q{XX‚ z[|{[@ {qŠz?? zZ {q{‚?„@]'z *@Z[XQ?Q {q_z‚ Port Business Management {q;_@[z™ |{[@ Mr. Julian Bevis YX\\|{[@ {q„X{[[_ Port Business Management * Directorship stands vacated effective 30 January 2019 as per Section 167(1)(b) of the Companies Act, 2013

$ Annual Report 2018 - 2019 `? @ ? X | {[@] [X X ? \ zXZYXQ&zZ=q `?@Q@X[@@\'_[XYq`?X\?\@X programmes are available on the Company website ?€€UUUq@@Xq@€€€€ `?|\_@@[?Q+"{?$%"#"{Q$%"<]#[$%"<]+"Y$%"<+% ;Q$%"#q`?X@@\z?X''\z|'&[YX[_XZ~@= Z[X]$%"?_\?|{[q ?z[\@@'_z[\{|*@]?@Q? QQX?U?*_q *\?_?XQ??@Qq Various Committees of the Board of Directors 1. Audit Committee `? @@ \ ? @Q Z[X "< \ z|' &[ YX[ _X Z~@= Z[X] $%" U? z " \ ? @ ] $%"+q `? @@ @ * _\U??+_X[??@\?@@*'_ "_**'_q\?\_?\{q;_@[z] ?\"**'_XQq `?@@?XU??zQUXX'X[[?@Q] XXQ@U?~XQ\'Xq `?@@U?\@@\z?X''\z|'&[YX[_X Z~@=Z[X]$%"q'`@\Z\XX?\XXU[ `@?[Q\?X@\?@Q]Q\@X@X[?@Q X\@  `U?@QXXX?@QXX‚@[@Q@  `@U?\\\?@QX\ `@‚@@?Y]\???X\?X[X@[]X ?@]@@X\?X?@@\ engagement of the external auditor `U@?XY^Q?\\\?]‚[ X\X[XQ~@ ` X @X@ XQ ? [[@ \ ? X XQ ] ‚[ ?\[[\Y^Q `U@X'`[_X\‰YX?z'\@ &‰z'=X[?~Q\XX@X'`[_X \‰z'q“?~@‚@@?|\_@X'`[ _X\‰z'q `?@@?XXYU?\‚??\ ?@QXX@@@X[[??@X[?@@ U‚] U[ @[ [] @ \ @] \[ \ @X Y ] XX Y\\@\QXq `?Y?XX@‚Q\XYX?@@YX‚X[X][ ?U??@@YXQYXQq `?@@?XX??U\?XY\\U[?X?Y\ approval.

Annual Report 2018 - 2019 + `?@@?XX??U\?XXXQXQQU? ?\?@[@q [?@\?\?&XXQU?\Q? =]\@\[[@@@[@?Y\[Y\{\@q  ZU[?XX\?U???\XXXXX@q ?‚[X\XXQ\X\?X@q`?Q?XX Q@\[XXX[\X statements. [?\?X\[XU?X\U[\\XX \?Q]U[?\X[X]U[?\Q\X[ U[U??X?\XXXXX@q [?\?~Q\?XXQ@?[??[X\?XXq `?Q@QXX\?q [?\?X@[XU?X\U\X~XQX @Y\]U\~X?\X@\[Xq 'X]?[[X[@@Q]Q\ U[XQ]Q\@'XXZ[z&'Zz=@XU? X~@Y?XYXXQUq  z[?X\@@YUX?YXX?Yq  ZU[‚@[@XX‚[?\\XQ@YX[\?@Q\Qq  ZU[U?X\@‚[YX@@?Yq “?X ? @@ ? ? YX U \? ? @X] ? Q \ ? @@X??@QX@@X U??[XXQ[Xq {[@ YX \ ? ] ] [Q \ ? @Q X @] \ ?\?[X[X?YQ?@Qq`? YX\[?@QX@U?~]\U[?@Q @X@q `?@@{[YQ?{[[_]]zQ?'Xq`? @QzQzQ\?@@q`?{\@@{[Y@?| \_\\q `?X\@@{[?X[?QYQ_\XXU

Name Category No. of Committee Meetings during the year ended 31 March 2019 Held Attended {q?]'z&Z=]?@ *' {qŠz?? *' {q;_@[z™ **' Nil {q{XX‚ *' * Directorship of Mr. Jan Damgaard Sorensen stands vacated effective 30 January 2019 as per Section 167(1)(b) of the Companies Act, 2013 `?{@Y\@@?~X]X[X@[@q_[?Q@@ {[U?X"!{Q$%"<]<[$%"<]+%Y$%"<$#;Q$%"#q`?Q~@U present at the Meetings. `??@\@@XX?|\_Y@ in the Audit Committee Meeting.

Annual Report 2018 - 2019 2. Nomination and Remuneration Committee 'U\?~@Z[X"#\z|'&[YX[_XZ~@=Z[X]$%" U?z"<\?@]$%"+]?@Q?*@Z@@@q `?@@X_\z?X''\z|'&[YX[_XZ~@=Z[X] $%"q`?@@X?XQU???\XXU[ _ \?X@\_„Q{[XX} _ \@[@\?_]„Q{[XX?@XQ\?@Q} _ |_Q\?]Y]~X\} _ `[\} _ \@X\q `? *@ Z@ @@ \ ? @Q @ X * _ \ U?? + _X[??@\?@@*'_"_* *'q`?X\?{[?X[?XQ\XXU

Name Category No. of Committee Meetings during the year ended 31 March 2019 Held Attended {q{XX‚]?@ *' 3 3 {q`^z[?? *' 3 3 {q?]'z&Zq= *' 3 3 {q_z‚ **' 3 1 `?*@Z@@@?X{["!{Q$%"<]+"Y$%"<$#;Q$%"#q `?|??*@Z@@@XQ?\X\* _X['_q'\?X\?@\?|]'X_ ?@@\?|q[XQ]?XUXXQUXYQ??@\ *@Z@@@q`?X\?@\? |@@]_[\\XX@\?YX]\\\?|€@@] \@\[]|€@@X_Q@]”XQ\X?YU?|€@@ {[@]YYQ'X_?z?{[@q `?'_X\XXU &= ?‘X &= „UX[Q &= _X[ &= |?X} (v) Efforts for Personal Development Remuneration Policy `?@QYX?_]X[?\@X\?~]?XX ?@YXX@@U??\?@]$%"+q`?Q?XXYXQ sitting fees. `?*'_?XXY[\\[?@[\?|@@?\ @@]@QYYQ?|€z??X\@@@q `?**'_[?@?XX?YQ[\Q@@q `?**'_[^{@|&{|=?XXY[\\[ Board Meeting.

Annual Report 2018 - 2019 [\?_Zq"%%]%%%@[_\?@@{[\?| {[q?@@{[]?[\Zq%]%%%@[_q Directors Remuneration (Rs. Million) Name Sitting Fees for attending Board Commission Total amount and Committee Meetings during Paid Paid year ended 31 March 2019 {q`^z[??]?@ Rs. 0.60 Zq"q% Rs. 2.10 {qŠz?? Zq%q# Zq%q Rs. 1.70 {q{XX‚ Rs. 1.00 Zq%q Zq"q {q?]'z&Zq= Rs. 1.10 Zq%q Zq"q< Managing Director

Name Salary $+!Z%% Performance Bonus Total Amount (Rs. Million) (Rs. Million) (Rs. Million) (Rs. Million) {q„X "%q+ !q"$ 10.89 !q+ \?X@\{q„X]?@\zXQ]~XXU@ ?@\\@|YX@[X\?\@q`?\? \@XX?z\QXU??@Q]YXQ_X@]z[`\@] ?] @ z[Q ^ _X@q `? @Q ? XQ \ z‚ \ @XQ?[Q‚{q„Xq `?[\{qUXX?[**'_U?\\\@"st June 2019. 3. Stakeholders’ Relationship Committee `?@Q?z‚?XZX?@@Z[X$%\z|'&[YX[ _XZ~@=Z[X]$%"U?z"<\?@]$%"+q`?X\?@@ _\z?X''\z|'&[YX[_XZ~@=Z[X]$%"q `?@@@+_\U??$_X[??@*'_ ??{@Y\?@@?{[[_\?@Qq`?X\?z‚?XZX? Committee Meeting are:

No. of Committee Meetings during the Name Category year ended 31 March 2019 Held Attended {q{XX‚?@ *' 1 1 {q`^z[?? *' 1 1 {q„X {[[_ 1 1 `?@@?@[+%;Q$%"#q `?X\@X]X€[[?Q+"{?$%"#[YXU

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For Price Waterhouse Chartered Accountants LLP @Z[*@Y%"$*€*%%%"!

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Annual Report 2018 - 2019 + STANDALONE BALANCE SHEET AS AT 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) Particulars Note No. As at 31 March 2019 As at 31 March 2018 ASSETS Non-current assets Property, Plant and Equipment 3 (a) 15,891.44 16,847.91 Capital work-in-progress 3 (b) 453.84 323.23 Intangible assets 3 (c) 9.14 14.88 Investments in an associate company 4 (a) 830.00 830.00 Financial Assets &= ?X 4 (b) 31.66 35.96 Income tax assets (net) 5 (a) 141.92 114.68 Other non-current assets 6 17.55 62.82 Total non-current assets 17,375.55 18,229.48 Current assets Inventories 7 84.25 136.16 Financial Assets (i) Trade receivables 8 (a) 509.72 257.56 (ii) Cash and cash equivalents 8 (b) 108.12 354.51 (iii) Bank balance other than (ii) above 8 (c) 5,229.02 3,960.96 (iv) Loans 8 (d) 4.79 2.16 &= ?X 4 (b) 58.90 7.83 Other Current assets 9 322.30 156.10 Total current assets 6,317.10 4,875.28 Total Assets 23,692.65 23,104.76 EQUITY AND LIABILITIES Equity Equity Share capital 10 4,834.40 4,834.40 Other equity (i) Reserves and surplus 11 15,375.72 15,306.19 Total equity 20,210.12 20,140.59 Liabilities Non-current liabilities Financial liabilities &=?XXYX 12 27.20 27.20 @XQYYX[ 13 19.36 18.41 Deferred tax liabilities (net) 14(b) 462.21 3.42 Other non-current liabilities 15 670.54 738.86 Total non-current liabilities 1,179.31 787.89 Current liabilities Financial Liabilities (i) Trade payables 16 Dues to Micro, Small and Medium Enterprises 0.36 1.06 Other than Micro, Small and Medium Enterprises 325.11 283.57 &= ?XXYX 12 369.44 501.70 Provisions 17 365.04 365.04 @XQYYX[ 13 126.08 108.24 Income tax provisions (net) 5 (b) 12.78 - Other current liabilities 18 1,104.41 916.67 Total current liabilities 2,303.22 2,176.28 Total Liabilities 3,482.53 2,964.17 Total equity and liabilities 23,692.65 23,104.76 The above Standalone Balance Sheet should be read in conjunction with the accompanying notes. As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106 Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

74 Annual Report 2018 - 2019 STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Particulars Note No. For the year ended For the year ended 31 March 2019 31 March 2018 Revenue from operations 19 7,019.80 6,489.00 Other income 20 452.43 370.45 Total Income 7,472.23 6,859.45 Expenses Operating expenses 21 1,442.37 1,185.08 @XQY 22 596.85 528.86 Finance costs 23 3.65 3.48 Depreciation and amortisation expense 24 1,128.35 1,035.64 Other expenses 25 1,091.93 1,034.35 Total expenses 4,263.15 3,787.41 $*€ 3,209.08 3,072.04 Tax expense For the year - Current tax expense 14 (a) 691.25 662.74 - Deferred tax expense [Including Minimum Alternate Tax Credit utilised/(availed)] 14 (a) 461.57 424.70 For earlier year Adjustment of current tax - 3.93 Adjustment of Minimum Alternative Tax Credit Entitlement - (3.93) Total tax expense 1,152.82 1,087.44 $ 2,056.26 1,984.60 Other comprehensive income '@?UXXYXX Z@@\@XQ@YYX[ (7.95) (3.66) - Less: Income Tax relating to above 2.78 1.29 Other comprehensive income for the year, net of tax (5.17) (2.37) Total comprehensive income for the year 2,051.09 1,982.23 Earning per equity share [face value per share INR 10/- (31 March 2018: INR10/- )] Basic earnings per share 4.24 4.10 Diluted earnings per share 4.24 4.10 `?YzXz@\X?XY^U??@Q[q As per our report of even date attached. For Price Waterhouse Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

Annual Report 2018 - 2019 75 STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) A. Equity share capital Notes Amount As at 1 April 2017 4,834.40 Changes in the equity share capital 10 - As at 31 March 2018 4,834.40 Changes in the equity share capital 10 - As at 31 March 2019 4,834.40

B. Other equity Attributable to owners of Gujarat Pipavav Port Limited Reserves & Surplus Total Other Particulars Notes Securities Retained Equity Premium Earnings Reserve Balance at 1 April 2017 11(i) 14,288.87 1,071.71 15,360.58 \?Q 1,984.60 1,984.60 Less: Other Comprehensive Income (2.37) (2.37) Total comprehensive income for the year ended 31 March 2018 1,982.23 1,982.23 Transaction with owners in their capacity as owners: Dividends paid (including dividend distribution tax) (2,036.62) (2,036.62) Balance at 31 March 2018 11(i) 14,288.87 1,017.32 15,306.19 \?Q 11(ii) 2,056.26 2,056.26 Less: Other Comprehensive Income (5.17) (5.17) Total comprehensive income for the year ended 31 March 2019 2,051.09 2,051.09 Transaction with owners in their capacity as owners: Dividends paid (including dividend distribution tax) (1,981.56) (1,981.56) Balance at 31 March 2019 14,288.87 1,086.85 15,375.72 The above Standalone Statement of changes in equity should be read in conjunction with the accompanying notes. As per our report of even date attached.

For Price Waterhouse Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary

Mumbai Mumbai 15 May 2019 15 May 2019

76 Annual Report 2018 - 2019 STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Year ended Year ended 31 March 2019 31 March 2018 Q Y\ 3,209.08 3,072.04 Adjustments : Deferred income recognised (74.30) (74.30) Depreciation and amortisation expense 1,128.35 1,035.64 Finance costs 3.65 3.48 _@X[?U (359.11) (223.75) Loss on disposal of property, plant and equipment 0.23 1.62 Sundry balances written back (net) (5.97) (6.79) Write offs / provisions for current assets, loans and advances 32.47 21.62 Foreign currency transactions and translations differences (net) 20.89 34.29 Provision for claims - (1.12) 3,955.29 3,862.73 *k% Increase in trade receivables (293.29) (16.20) Decrease in inventories 39.70 7.88 (Increase)/Decrease in loans (2.64) 0.24 '?X (46.77) (0.78) Decrease in other non-current assets - 108.14 Increase in other current assets (166.20) (64.82) Increase in trade payables 40.84 28.29 '@XQYYX[ 10.84 29.43 _?XXYX (68.93) (367.16) Increase in non-current liabilities 5.98 - Increase in other current liabilities 187.74 82.91 (292.73) (192.07) Cash generated from operations 3,662.56 3,670.66 Income taxes paid (net of refund) (705.71) (525.12)  2,956.85 3,145.54 Q Payments for property, plant and equipment (313.54) (539.93) &Q@\@X[\X=€\@ X\&= 0.01 0.75 Dividends received from Associate company 38.00 - Interest received 255.27 115.02 Decrease/(Increase) in deposits with banks (including earmarked balances) (net) (1,202.22) (863.79) ! (1,222.48) (1,287.95)

Annual Report 2018 - 2019 77 STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019 (Contd.) (All amounts are in Rupees Millions, unless otherwise stated) Year ended Year ended 31 March 2019 31 March 2018 Q Interest paid (3.65) (3.48) Dividends paid to Company’s shareholders (1,639.25) (1,689.14) Dividend distribution tax paid on dividend (337.86) (344.46) ! (1,980.76) (2,037.08)

Net increase/(decrease) in cash and cash equivalents (246.39) (179.49) ??~X?Y[[\?XQ 354.51 534.01 Effects of exchange rate changes on cash and cash equivalents - (0.01) Cash and cash equivalents at end of the year 108.12 354.51

%+!% 31 March 2019 31 March 2018 Cash and cash equivalents as per above comprise of the following Cash and cash equivalents [Refer note 8 (b)] 108.12 354.51 |X@\?U 108.12 354.51

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As per our report of even date attached. For Price Waterhouse Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary

Mumbai Mumbai 15 May 2019 15 May 2019

78 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) (Currency: Indian Rupees in Million) 1. Company overview i. Gujarat Pipavav Port Limited, (“the Company”) was incorporated on 5 August 1992 to construct, operate and maintain an all-weather port at Pipavav, District Amreli, in the State of Gujarat. ii. The port is designed to handle bulk, container, liquid cargo and RORO and to provide port services such as marine services, material handling and storage operations. iii. The Company has entered into a 30 year Concession Agreement with Government of Gujarat and Gujarat Maritime Board (“GMB”) dated 30 September 1998 to engage in the business of developing, constructing, operating and maintaining the port on a BOOT (Build Own Operate Transfer) basis. q_[ ? Q $%%] {XX{‚ [ [? U? X ~ ? @X shareholdings held by the original promoter viz. Seaking Infrastructure Limited (“SKIL”) group, on receipt of approval from Government of Gujarat, and GMB. Accordingly, AP Moller-Maersk group became the key promoter of the Company under the Concession agreement. v. Pursuant to the approval of the shareholders of the Company in an extra ordinary general meeting held on 17 November 2009, the Company has issued and allotted through Initial Public Offering (IPO) 108,695,652 equity shares of INR 10 each at a premium of INR 36 per share aggregating to a total of INR 5,000 million to all categories of investors. The issue was made in accordance with the terms of the Company’s prospectus dated 30 August 2010 and the shares got listed on 9 September 2010 on Bombay Stock Exchange and National Stock Exchange. ># 6!% `?X\?[[X?\?X@q`? policies have been consistently applied to all the years presented, unless otherwise stated. (i) Compliance with Ind AS `? X @ @XQ XX @X U? '[ z &'z= Section 133 of the Companies Act, 2013 (the ‘Act’) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. (ii) Historical cost convention `?X@?Y?XY]\?\XXU[ _ XXYX[?@\X} _ YXX@\X XXXYX?YX?@Q[QX? criteria set out in the Schedule III to the Act. Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating QX"$@?\?\X\XYXq (iii) (a) Amended Standards adopted by the Company Ind AS 115 – Revenue from Contracts with Customers \\"X$%"<]?@Q?'z""Z\@U?@[? @@?q`?XXQXQ?@X\ 1 April 2018 and the comparatives have not been restated. The adoption of the standard did not have any material @?X@\?@Qq

Annual Report 2018 - 2019 79 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) (b) Amended Standards to be adopted by the Company (i) Ind AS 116, Leases Ind AS 116, is effective for periods beginning on or after April 01, 2019. Ind AS 116 will affect primarily the accounting by lessee and will result in the recognition of almost all leases YX?q`?@?YU[X ~[\&?[?\?X@=XXYXQQX\ virtually all lease contracts. An optional exemption exists for short-term and low-value leases. The statement of XUXXXY\\Y?XQXXQ?[??XQ\X and lower in later years. Additionally, operating expense will be replaced with interest and depreciation, so key @X‚|'`_UXX?[q[?UUXXY?[?Q@\?XXYXQ XXU?[q`?[YQXUXX[XQ?[q (ii) Amendment to Ind AS 12, ‘Income Taxes’ – Appendix C, ‘Uncertainty over Income Tax Treatments’ `?@@X?Q?XX[?@~\ loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. (iii) Amendment to Ind AS 19 – plan amendment, curtailment or settlement The amendments require an entity: _ @@\?@\? \X@@]X@X@} _ [z@\X\][XX@] any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. `? @Q XQ X[ ? \\ \ ? @@ ? X ' z X statements. `?\X@\@QU?'z~@[@@‚^[@]@ assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses ? X \ [ XYX ? \ ? X @qX X X \\ \@ ? estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the accounting period in which such revision takes place. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. {[[_?\X\\?@Q??\[@‚qZ\+<\ segment information presented. '@X?X@@[?Q\?@Q@@U?? ?@Q&?\XQ=q`?X@'&'*Z=]U?? Company’s functional and presentation currency.

80 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) Foreign currency transactions are recorded in Indian rupees using the rates prevailing on the date of the respective transactions. Exchange differences arising on foreign currency transactions settled during the period are recognised in the Statement of q{QXYX@\[?YX?X ' ? X[ ?[ ? } ? X ?[ \\ [ ? z@\q As at the balance sheet date non-monetary items denominated in foreign currency are carried at historical cost. All non- monetary items denominated in foreign currency are carried at historical cost or other similar valuations are reported using the exchange rate that existed when the values were determined. ! Company is engaged in providing port services such as marine services, material handling and storage operations. Revenue is recognized from rendering of services at a point in time upon the completion of services as per contract with customers. Revenue is measured based on the transaction price, which is the consideration as per contractual terms. The amount disclosed as revenue is exclusive of goods and service tax (GST) and net of estimated trade allowance and rebates wherever applicable. A contract liability is the obligation to render services to the customer for which the Company has received consideration from ?@qXYX[U??@Q?\@YX[ the contract. The Company does not expect to have any contracts where the period between the rendering of promised services to the customer and payment by the customer exceed one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money. Interest income on deposits with bank is recognised on a time proportion basis at applicable interest rates. " #!# Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. @ [ X[ @ \ [ ? z@ \ ? necessary to match them with the costs that they are intended to compensate and presented within other income. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred @z@\[?XY?X\?X and presented within other income. $ %& Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax XU=\?[&[?\\\@[\\YU[@YX income for the period). Provision for current tax is based on the results for the year ended 31 March, in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets XYX?Q[@?X@q`?\?[?[ deferred tax liabilities or assets are recognised using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. \  [ ? z@ \ ]  ?  ? X @ recognised in other comprehensive income or directly in equity.

Annual Report 2018 - 2019 81 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Minimum Alternative Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognised as deferred tax. The credit available under the said Act in respect of MAT is recognised as Deferred Tax Asset only to the extent there is convincing evidence that the Company will pay income tax in future periods and MAT credit can be carried forward to set-off against the normal tax liability. MAT credit recognised as Deferred Tax Asset is reviewed at each Balance sheet date and written down ??X[[?\\??@QUXXQ@X[? period. 2.8. Leases As a lessee Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of U?XXqXX?X?\X\? leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net \?[]XYU[?XXYXq?XQ@XX YU?XYXQq`??[?z@\?X so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. U??[\?‚U\U?\?@QX X[XqQ@@[X&\Q\@?X= ?[?z@\[?XY?\?XX?Q@ XU?[X@\?XQ increases. As a lessor Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the X@X?XU?[X@\? Qq`?XX?YX?Y?q] including depreciation, incurred in earning the lease income are recognised as expenses. ' % Assets are reviewed at each reporting date to determine if there is any indication of impairment. An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of \XX\XXq'[X]?@\?U ?X[?@‚@\?@X\ @Q?‚??[[&‰=q ?\@@[][[??@XX[\&‰=?[ ?U\@[?X[XQ\??U\?‰q '@@X[?z@\q If as at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists or has ]?‰YX@@q]?@@X? that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation @]\@@X?Y[qz?X[?z@\q ( )*+*,! ?\?@\?U]??~XX??] ?XXXU?X]??@]?[?XQX~@U?[X@\?@?X ?XQYX‚U@\?U??Y^[‚\?[Xq -&% @Q[X@U?@\@U?z@\\@Q are such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period.

82 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 2.12. Inventories Inventories comprise of stores, spares, loose tools, fuel and lubricants. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. These are carried at the lower of cost and net realisable value. Costs are assigned to individual items \Q?Y\YqzQ@[@\?X\@?Qq Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. %!+/* `?@QXX?\XXU[@@[ _?Y@Y~XQ\X&??[??@?@]?[? X=} _ ?@@ `?X?@QY@X\@[[?X?X@\ ??Uq @\X][XUXX?Y?z@\? comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. (ii) Measurement X[]?@Q@X\XX]?\X\ X?[?X]?XQYYX?~\?Xq` \X\X?[?X?z@\q Equity instruments The Company initially measures all equity investments at fair value. Where the Company’s management has elected to present \X[X~Q@?@?@]?Y~X\ \X[X?z@\q ?[?\X\X\X?[?X[?[€&X=? z@\q'@@XX\@@X~Q@@‘' are not reported separately from other changes in fair value. &= '@@\X The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at @q`?@@@?X[QXU????Y[ credit risk. X[XQU? _ `?@Q?\?[??U\@?X _?X[???U\?X]Y@XYX[ Q??U@q Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and U\U?\?Xq'?]?X[q“??Q? \YXXQXX‚U\U?\?X]?X[q

Annual Report 2018 - 2019 83 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) “??Q??\XYXXQXX‚U\U?\? X]?X[\?@Q?X\?Xq“?? @QX\?X]?Y[?\[X@ ?Xq (v) Income recognition _[?z@\XQU??[?Q@YX?] YYX??@YU??UXXU?@Q]?@\? can be measured reliably. / Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. 03+, Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to ?~\@q@QXX\\@~Q\Q[X~X\Q[?U?[\ foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when YYX?\@YU??@UXXU?@Q?\?@Y measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. XX?@?[?z@\[?[U???Q are incurred. 4*+3+!++! Depreciation is provided on the straight-line method, over the estimated useful life of each asset from the subsequent month \?\?q\XX\\??X''\?q| internal technical evaluation following assets have a different useful life than prescribed by schedule II of the Act.

Asset Details Technical Estimate in Years Ship to Shore Cranes 20 Power Distribution Systems 15 Carpeted Roads 20 Jetties 30 Dredging 50 Boundary Wall 20 Old Residential Complex 15 {\|X[ 15 Warehouses 15 Guest houses 15 All assets costing individually INR 125,000 or less are depreciated fully in the year of purchase. The useful lives are reviewed by the management at each reporting date and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the revised remaining useful life. X@\@?X@XU?\?Y\@ disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in z@\U??[€&X=q

84 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) In accordance with Concession agreement all contracted immovable and movable assets shall be transferred to and shall {|?\?]\~X?_ZX@‘X&_Z‘=q z?_Z‘XQ@YX]Y?@\XX\q " 5,+6 Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and / or any accumulated impairment loss, if any. '[YX@?z@\[?[?X@??@\X lives, from the date that they are available for use. Accordingly, at present, these are being amortised on straight line basis based on the period of the licence in case of licensed software or for 3 years. Such intangible assets that are not yet available for use are tested annually for impairment. Amortisation method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be [XQ\\\@@]?@?[[XQq [YX[XU?\@Y\@Xq Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference YU?X?Q[@\?[?z@\ Loss. $ -6 79 *:6 YX\U[X]X[@QY?YXU?XXQU?"$@? after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The XYX@XQYYX[?YX?q 79 0:6 Y X @XQ@ Y X U?? Q Q Y Q ? YX[ Q Q \? @q`? @Q @‚ @?XQ Y U@XQ\@@\?@U??YXq `?@QY[?z@\[?U??? employee renders the related service. `? @Q [Q Y ?@ Y Xq`? @Q YX[ \ YXXXYQ@[?@\\Y?@XQ?\? ?}?Y@XqQ[ and the fair value of any plan assets are deducted. The calculation of the Company’s obligation under the plan is performed XXQYQ~XQ[?^@?]U??[?\[[ X\@XQYX@@?XQYX?XYX[q`? \@[?X\?YX[YX]Y?@‚QX Government securities as at the Balance sheet date. XXXYX[@XQY?z@\q `?@Q[[X?X@X@\YXU??X@ settlement occurs. The Company has funded its gratuity liability with Life Insurance Corporation of India (LIC) under the Group Gratuity cum Life Assurance (Cash Accumulation) Scheme.

Annual Report 2018 - 2019 85 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) `?XXYQXQ[??YX\?YYX[?\ X\Xq`?X@XQY?z@\q Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. ?[?X\?YYX[X[\@X@@X@[ @@XQ?z@\q 79 /*;66 The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected YXƒU?XXQU?UX@?\?\?]?YXX[@@XQY obligations. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using ?^@?qXX€[[?z@\? which they arise. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur. 2.18. Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be @XYXQ]YYX?U\@YUXXY~X?YX[q are not recognised for future operating losses. “??@Y\@XYX[]?X‚X??UUXXY~X@@YQ [?X\YX[U?Xq[\?X‚X?\UU? any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that @‚@\?@X\@Q?‚?XYXQq`?? provision due to the passage of time is recognised as interest expense. ' )6 A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably UXX ] ~ U \ ] YX[ U? @ Y @ XYXQq[ XYXU]YXX?YXQ\U\@q 2.20. Earnings per share (EPS) `?Yz@YQ[?YYX?~Q??X\?YQ?U[? [@Y\~Q?[[?q_Xz@YQ[?YYX to the equity shareholders for the period by the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except where the results would be anti-dilutive. 2.21. Dividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

86 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) )6+, ~Q?X~Qq'@XXQYYX?\U??U in equity as a deduction, net of tax, from the proceeds. %!5 The Company carries its investments in associate at cost less impairment losses. The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable amount in accordance with policy given in 2.9. 2.24 +! Financial instruments measured at fair value can be divided into three levels: X"”&^=@‚\XXYX} X$'??~XU?XX"?YYX\?XYXQ]?XQ&qq =XQ&qq\@=} X+'\?XYXQ?YYYX@‚qX\X\XXU? level 1 of the fair value hierarchy. Non-listed shares and other securities fall within level 3 of the fair value hierarchy. X\XX+XYX@XQY?X\\?UqYXQ YX?[?@\\?@Q~Q[XQq 2.25 )+A+ `?\X@~?\[@U??]YQ]UXXX@~X? actual results. Management also needs to exercise the judgement in applying the Company’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with \@Y?Y\XX\?\\X?X@q The areas involving critical estimates or judgements are: _ @\\Z\*" _ @\XX\\Q]X~@'[YXZ\*+&=+&= _ @\YYX[Z\*"+ _ @\\X\[XYXZ\*++ _ @\X\YXXX@Z\*"< Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including \\?@Q?X@?[?YXYYX? circumstances. 26. Transfer Pricing The Company’s international transactions with related parties are at arm’s length as per the independent accountants’ report for the year ended 31 March 2018. Management believes that the Company’s international transactions with related parties post 31 March 2018 continue to be at arm’s length and that the transfer pricing legislation will not have any impact on these X@]XXQ@\?\\q >x# "%!%%*% `?XXYX[\X?[?X?@?@qXX the Financial instruments carried at amortised cost.

Annual Report 2018 - 2019 87 2019 As at Amount 31 March f the current 321.85 he order issued port boundary is - 9.14 11.07 11.07 13.26 15.12 5.52 52.07 181.02 453.84 453.84 933.50 4,532.46 201.13 533.46 360.83 3,508.36 2019 As at 2,569.47 6,795.51 31 March As at Amount

31 March 2019 32.02 2019 As at 31 March / Adjustments On Deductions - As at 31st March 2019 year for the On Charge - - Deductions / Adjustments 8.40 2.67 - 11.84 11.84 3.28 - 39.05 13.02 - 684.86 248.64 - 150.85 50.28 - 270.31 90.52 - 2018 As at 1 April 1,858.92 713.29 2.74 year for the Charge 24.33 20.64 321.85 734.59 233.09 2019 25.40 6.65 0.03 As at 5,465.96 9,364.98 3,869.19 2018 As at 1 April 31 March

41.16 2019 As at 31 March Deductions/ Adjustments during the year - - - - year Deductions/ Adjustments Gross Carrying Amount Gross Carrying Accumulated Depreciation Net Carrying during the year Additions during the 17.44 3.20 - year Gross Carrying Amount Gross Carrying AmortisationAccumulated Net Carrying 2018 1 April Additions during the 2018 1 April ParticularsAs at [?@\@Q]ZXUQ@]@q Land aggregating INR 24.98 million was purchased during prior years for handing it over to Government of Gujarat, pursuant t Land aggregating INR 1.47 million purchased during prior years for getting the rail connectivity from nearest station upto by Hon’ble Supreme Court. This land will be exchanged with the located inside port premises which does not form part o by Hon’ble Supreme Court. Concession with Gujarat Maritime Board (GMB). Particulars As at Land and site development 321.85 - Capital work in progress Total Cranes and Container Scanner. Yard Capital work-in-progress mainly comprises of Container handling Total 40.28 0.91 0.03 41.16 25.40 6.65 0.03 32.02 9.14 Computer Software 40.28 0.91 0.03 Buildings 5,426.42 39.54 - Port Road - External 734.59 - Plant, Machinery and Equipment Dredging 9,247.54 120.42 2.98 3,869.19 - Railway sidings{‘?X 233.09 - 22.02 2.31 - Total 19,872.14 165.47 2.98 20,034.63 3,024.23 1,121.70 2.74 4,143.19 15,891.44 Furniture, Fittings and Leasehold Improvements - - NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 AND FOR THE AT AS STATEMENTS FINANCIAL THE STANDALONE NOTES TO (All amounts in Rupees Millions, unless otherwise stated) 3(a)(i) April 2018 to 31 March 2019] plant and equipment [1 Property, Notes : 1 Land and site development includes - - Freehold land of INR 50.55 million -;*; Q%k 2 plant and equipment. Refer note 31 for disclosure of capital commitments the acquisition property, 3(c)(i) Assets Intangible

88 Annual Report 2018 - 2019 2018 As at Amount Carrying 31 March 321.85 - 323.23 323.23 8.40 13.62 11.84 11.84 5.60 39.05 194.04 14.88 270.31 3,598.88 150.85 583.74 684.86 4,741.56 1,858.92 7,388.62 2018 2018 As at As at Amount 31 March Carrying 31 March nt Concession with Gujarat he order issued by Hon’ble

port boundary is registered in the 25.40 2018 On As at 31 March 25.40 14.88

Deductions / Adjustments As at 31st March 2018 - On the year Charge for Deductions / Adjustments - - 6.79 2.70 1.09 4.95 8.19 1.30 25.64 13.02 (0.39) 179.77 90.52 (0.02) 100.48 50.28 (0.09) 295.87 220.50 (168.49) 2017 As at 1 April 1,384.40 645.58 171.06

the year Charge for 22.02 17.44 233.09

734.59 321.85 2018 As at 3,869.19 9,247.54 5,426.42 20.55 4.85 - 31 March 2017 As at 1 April 40.28 2018 As at 31 March 40.28 20.55 4.85 -

Deductions/ Adjustments during the year 1.97 (0.40) (0.02) 0.09 0.01 year year during the Deductions/ Adjustments Additions during the year Gross Carrying Amount Gross Carrying AmortisationAccumulated Net As at Additions during the 1 April 2017 2017 1 April ParticularsAmount Gross Carrying Accumulated Depreciation Net Particulars As at Land aggregating INR 1.47 million purchased during prior years for getting the rail connectivity from nearest station upto This land will be exchanged with the located inside port premises which does not form part of curre Supreme Court. Maritime Board (GMB). @\@Q]ZXUQ@]@q Land aggregating INR 24.98 million was purchased during prior years for handing it over to Government of Gujarat, pursuant t Total Cranes and Container Scanner. Yard Capital work-in-progress mainly comprises of Container handling Capital work in progress Land and site development includes plant and equipment. Refer to note 31 for disclosure of capital commitments the acquisition property, {‘?X Total 23.99 - 18,751.23 1,127.74 6.83 19,872.14 1,997.90 1,030.79 4.46 3,024.23 16,847.91 Furniture, Fittings and Leasehold Improvements 11.74 7.73 2.03 Railway sidings 232.69 - Dredging 3,869.17 - Plant, Machinery and Equipment 8,447.00 971.72 171.18 Buildings 5,110.10 148.29 (168.03) Port Road - External 734.68 - Land and site development 321.86 - Computer Software Total 29.11 11.17 29.11 - 11.17 - Notes : 1 - - Freehold land of INR 50.55 million 2 - - 3(c)(i) Assets Intangible NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 AND FOR THE AT AS STATEMENTS FINANCIAL THE STANDALONE NOTES TO (All amounts in Rupees Millions, unless otherwise stated) 3(a)(i) April 2017 to 31 March 2018] plant and equipment [1 Property, -;*; Q%k

Annual Report 2018 - 2019 89 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 4 (a) Investments As at As at 31 March 2019 31 March 2018 Investments in equity instruments (fully paid up) : Unquoted 76,000,010 (31 March 2018 : 76,000,010) equity shares of INR 10 each of Pipavav Railway Corporation Limited. (Associate company of Gujarat Pipavav Port Limited) 830.00 830.00 Total investment in equity instruments 830.00 830.00 Total non-current investments 830.00 830.00 Aggregate amount of unquoted investments 830.00 830.00 Aggregate amount of impairment in the value of investments - - 4 (b) % As at 31 March 2019 As at 31 March 2018 Non current Current Non current Current Security deposits 31.66 8.93 35.96 7.83 ‰YXX - 49.97 - - %% 31.66 58.90 35.96 7.83

5 (a) Income tax assets (net) As at As at 31 March 2019 31 March 2018 Advance Tax * 141.92 114.68 Total Current tax assets (net) 141.92 114.68 * Net of provision for tax of INR 2,186.01 million (31 March 2018 : INR 2,186.01 million)

5 (b) Income tax provisions (net) As at As at 31 March 2019 31 March 2018 Provision for tax # 12.78 - Total Current tax provisions (net) 12.78 - # Net of Advance tax of INR 678.47 million (31 March 2018 : NIL)

90 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 6 Other non-current assets As at As at 31 March 2019 31 March 2018 Capital advances 17.55 62.82 Total other non-current assets 17.55 62.82

7 Inventories As at As at 31 March 2019 31 March 2018 Stores and spares 83.22 131.92 Goods-in-transit - Stores and Spares 1.03 4.24 Total inventories 84.25 136.16

!6$< Write-downs of inventories including provision for inventory amounts to INR 12.21 million (31 March 2018 : INR 11.54 @XX=q`?U[&Z\$=X?z@\ Loss.

8 (a) Trade receivables As at As at 31 March 2019 31 March 2018 Trade receivables 278.68 94.06 Receivables from related parties (Refer note - 37) 277.82 193.05 Less: Allowance for doubtful debts (Refer note - 28) (46.78) (29.55) Total trade receivables 509.72 257.56 8k!!% Secured, considered good 62.58 47.36 ‰][ 447.14 210.20 ZYXU???[‚ - - Credit impaired 46.78 29.55 Total 556.50 287.11 Allowance for doubtful debts (46.78) (29.55) Total trade receivables 509.72 257.56

8 (b) Cash and cash equivalents As at As at 31 March 2019 31 March 2018 Cash on hand - 0.26 Balances with banks -In current accounts 64.09 220.47 -In Exchange Earners' Foreign Currency accounts 44.03 133.78 Total cash and cash equivalents 108.12 354.51

Annual Report 2018 - 2019 91 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 8 (c) *k*% As at As at 31 March 2019 31 March 2018 Deposits with original maturity of more than three months but less than 12 months * 5,224.57 3,957.94 ‰ 4.45 3.02 %*k*% 5,229.02 3,960.96 * Of the above, bank deposits aggregating NIL (31 March 2018 : INR 9.15 million) is marked lien against bank guarantees issued to customs and other third parties. 8 (d) Loans As at As at 31 March 2019 31 March 2018 Loans and advances to employees 4.79 2.16 Total loans 4.79 2.16

9 Other current assets As at As at 31 March 2019 31 March 2018 Advance for supplies 39.53 111.18 Prepaid expenses 17.00 8.17 Balances with government authorities 71.58 32.78 Receivable from Gujarat Maritime Board [Refer Note 33(b)] 185.35 - Other receivables 8.84 3.97 Total other current assets 322.30 156.10

10 Equity share capital As at As at 31 March 2019 31 March 2018 Authorised share capital 600,000,000 (31 March 2018 : 600,000,000) equity shares of INR 10 each 6,000.00 6,000.00 6,000.00 6,000.00 Issued, subscribed and paid up share capital 483,439,910 (31 March 2018 : 483,439,910) equity shares of INR 10 each, fully 4,834.40 4,834.40 paid-up 4,834.40 4,834.40 a Reconciliation of number of equity shares outstanding as at the beginning and at the end of reporting period As at 31 March 2019 As at 31 March 2018 Particulars Number INR Number INR Equity shares at the commencement of the period 483,439,910 4,834.40 483,439,910 4,834.40 Issued during the period - - - - At the end of the period 483,439,910 4,834.40 483,439,910 4,834.40 b Rights, preferences and restrictions attached to equity shares The Company has a single class of equity shares. Accordingly, all equity rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of ?@Qq‘[[?Y\?U??QXX?@XQQYX? not been paid. 92 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held. c Equity shares in the Company held by each shareholder holding more than 5% shares # Name of Shareholder As at 31 March 2019 As at 31 March 2018 Number Percentage Number Percentage APM Terminals Mauritius Limited 207,903,931 43.01% 207,903,931 43.01% ICICI Prudential Midcap Fund - - 35,005,553 7.24% ' ' ' X ‘ X z 41,699,875 8.63% - - HDFC Trustee Company Limited - Hdfc 43,451,389 8.99% 29,913,819 6.19% Capital Builder Fund # As per the records of the Company, including its register of members. 11 Reserves and surplus As at 31 March 2019 As at 31 March 2018 Securities premium reserve [Refer Note- (i) below] 14,288.87 14,288.87 Retained earnings [Refer Note- (ii) below] 1,086.85 1,017.32 Total reserves and surplus 15,375.72 15,306.19 (i) Securities premium reserve As at 31 March 2019 As at 31 March 2018 Opening balance 14,288.87 14,288.87 Closing balance 14,288.87 14,288.87 * Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act. (ii) Retained earnings As at As at 31 March 2019 31 March 2018 Opening balance 1,017.32 1,071.71 *\?Q 2,056.26 1,984.60 Items of other comprehensive income recognised directly in retained earnings Z@@\@XQ@YYX[]\ (5.17) (2.37) Dividends - Final dividend for the year (821.85) (870.19) _YX\?Q (168.93) (177.15) - Interim dividend for the year (821.85) (821.97) - Dividend distribution tax on interim dividend for the year (168.93) (167.31) Closing balance 1,086.85 1,017.32 @> %%*% As at 31 March 2019 As at 31 March 2018 Non-current Current Non-current Current Retention monies payable - 98.13 - 149.28 Security deposits received * 27.20 62.81 27.20 64.63 Capital creditors * - 101.06 - 162.88 ‰X@&Z\YXU= - 4.45 - 3.02 Other payables* - 102.99 - 121.89 %%%*% 27.20 369.44 27.20 501.70 Note :There are no amounts due for payment to Investor Education and Protection Fund under Section 125 of The Companies Act 2013 as at the year end. * For due to related parties refer note - 37 Annual Report 2018 - 2019 93 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 13 %**% As at 31 March 2019 As at 31 March 2018 Non-current Current Non-current Current Compensated absences [Refer note (i) below] - 29.47 - 26.54 Gratuity [Refer note (ii) below] 11.86 12.53 10.91 11.45 ?@XQYQYX 7.50 84.08 7.50 70.25 %%**% 19.36 126.08 18.41 108.24 (i) Compensated absences The leave salary is payable to all eligible employees for each day of accumulated leave on death or on resignation or upon q@?[?z@\\@Y[?Q @'*Zq@XX&+"{?$%"<'*Z""q!@XX=X*$$@XQYq Accumulated current provision for compensated absences aggregates to INR 29.47 million (31 March 2018: INR 26.54 million) (Refer note 14). (ii) Post-employment obligations - Gratuity The Company makes annual contribution to the Employee’s Group Gratuity-cum-Life Assurance Scheme of the Life Insurance \']\YX\@XQq`??@\X@@Q@ employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days XQQYX\?@XQ\?\\@?q‘[@X\ Q\qQQ@@XQ[[?X@YQ'@ Tax Act, 1961 and The Payment of Gratuity Act, 1972. `?@[?YX?@@?YYX[?Q follows : Present value of Fair value of plan Net amount obligation assets Balance as at 01 April 2018 56.16 (33.80) 22.36 Current service cost 6.21 - 6.21 Interest expense / (income) 4.25 (2.55) 1.70 Return on plan assets, excluding amounts included in interest - - - expense / (income) %!6$< 10.46 (2.55) 7.91 Remeasurements (Gain) / loss from change in demographic assumptions - - - &=€X\@?[X@ 0.51 - 0.51 Experience (gain) / loss 7.00 0.43 7.43 Total amount recognised in other comprehensive income 7.51 0.43 7.94 Employers contributions - (13.82) (13.82) Liability Transferred In/ Acquisitions and Liability Transferred (0.09) 0.09 - Out/ Divestments) |Q@ (3.70) 3.70 - Balance as at 31 March 2019 70.34 (45.95) 24.39

94 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated)

Present value of Fair value of plan Net amount obligation assets Balance as at 01 April 2017 50.48 (34.06) 16.42 Current service cost 6.32 - 6.32 Interest expense / (income) 3.59 - 3.59 Return on plan assets, excluding amounts included in interest - (2.42) (2.42) expense / (income) %!6$< 9.91 (2.42) 7.49 Remeasurements (Gain) / loss from change in demographic assumptions - - - &=€X\@?[X@ (2.14) - (2.14) Experience (gain) / loss 6.08 (0.28) 5.80 Total amount recognised in other comprehensive income 3.94 (0.28) 3.66 Employers contributions - (5.21) (5.21) |Q@ (8.17) 8.17 - Balance as at 31 March 2018 56.16 (33.80) 22.36

The net liability disclosed above relates to funded plans are as follow : 31 March 2019 31 March 2018 Present value of funded obligations (70.34) (56.16) Fair value of plan assets 45.95 33.80 '!%;! (24.39) (22.36)

`?[X@U\XXU 31 March 2019 31 March 2018 Discount rate 7.47% 7.56% Salary growth rate 8.00% 8.00% Expected rate of return on plan assets 7.47% 7.56% Attrition rate 6.00% 6.00% Mortality Indian Assured lives mortality Indian Assured lives mortality (2006-08) (2006-08) 31 March 2019 31 March 2018 ^|YX[@ 70.34 56.16 Delta Effect of +1% Change in Rate of Discounting (5.33) (4.41) Delta Effect of -1% Change in Rate of Discounting 6.12 5.06 Delta Effect of +1% Change in Rate of Salary Increase 6.02 4.99 Delta Effect of -1% Change in Rate of Salary Increase (5.36) (4.43) Delta Effect of +1% Change in Rate of Employee Turnover (0.31) (0.27) Delta Effect of -1% Change in Rate of Employee Turnover 0.34 0.29 Category of assets 31 March 2019 31 March 2018 Insurance fund (100%) 45.95 33.80 Total 45.95 33.80

Annual Report 2018 - 2019 95 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) ;#k€! `?[?YX]?@Q@Y\‚]?@[\U??XYXU Changes in bond yields A decrease in bond yield will increase plan liabilities, although this will be partially offset by increase in the plan’s bond holding Asset volatility `?XXYXXX[U?\YQX}\X\@?QX] ?UXXqXU??\'\'@q'Y^ rate risk. The Company intends to maintain the above investments in the continuing years. !%$`8*%""! ^|QYX‹@?_\Z[ 31 March 2019 31 March 2018 1st Following Year 4.09 3.29 2nd Following Year 4.42 3.37 3rd Following Year 6.20 3.63 4th Following Year 6.32 5.04 5th Following Year 6.29 5.09 Sum of Years 6 To 10 29.74 25.46

14 Taxation #€€6$< For the year ended For the year ended 31 March 2019 31 March 2018 Current tax Current year 691.25 662.74 Total 691.25 662.74 Deferred tax Deferred tax 46.05 94.38 MAT credit utilised/(entitlement) 415.52 330.32 Total 461.57 424.70 Total income tax expense/(credit) 1,152.82 1,087.44 Reconciliation between the statutory income tax rate applicable to the Company and the effective income tax rate of the Company is as follows : For the year ended For the year ended 31 March 2019 31 March 2018 [Y\ 3,209.08 3,072.04 Applicable tax rate of the reporting entity 34.944% 34.608% Expected total tax expense 1,121.38 1,063.17 @?[z@\ 1,152.82 1,087.44 Difference (31.44) (24.27) Tax effect of amounts which are (not deductible) /allowable in calculating taxable income: (i) Expenditures not deductible for tax purpose (20.92) (29.83) (ii) Dividend Received (Adjusted with expense disallowed u/s 14 A) 13.24 - (iii) Impact of change in tax rate (19.50) - (iv) Others (4.26) 5.56 Total (31.44) (24.27)

96 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) b (i) Deferred tax relates to the following : As at As at 31 March 2019 31 March 2018 A) Deferred Tax Assets Expenditure deductible on payment basis 120.17 103.07 _YYX[ 20.56 16.64 MAT credit entitlement 1,591.26 2,006.78 Total deferred tax assets (A) 1,731.99 2,126.49 B) Deferred Tax Liabilities On difference between book depreciation and tax depreciation 2,194.20 2,129.91 Total deferred tax liabilities (B) 2,194.20 2,129.91 Net deferred tax liabilities (B - A) 462.21 3.42

b (ii) Movement in deferred tax assets / (liabilities) Expenditure '* MAT credit On difference Total deductible on obligations entitlement **k Payment Basis depreciation and tax depreciation At 1 April 2017 81.73 17.32 2,333.18 (2,016.18) 416.05 (Charged) / credited: z@\ 21.34 (1.97) (326.40) (113.73) (420.76) - to other comprehensive income - 1.29 - - 1.29 At 31 March 2018 103.07 16.64 2,006.78 (2,129.91) (3.42) (Charged) / credited: - z@\ 17.10 1.14 (415.52) (64.29) (461.57) - to other comprehensive income - 2.78 - - 2.78 At 31 March 2019 120.17 20.56 1,591.26 (2,194.20) (462.21)

15 Other non-current liabilities As at As at 31 March 2019 31 March 2018 Deferred income on Government Grant 670.54 738.86 Total other non-current liabilities 670.54 738.86

16 Trade payables As at As at 31 March 2019 31 March 2018 Trade payables 284.66 276.04 Dues to Micro, Small and Medium Enterprises (Refer note - 39) 0.36 1.06 Trade payables to related parties (Refer note - 37 ) 40.45 7.53 Total Trade payables 325.47 284.63

Annual Report 2018 - 2019 97 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 17 Provisions As at As at 31 March 2019 31 March 2018 Claims (Refer note - 33) 365.04 365.04 Total provisions 365.04 365.04 18 Other current liabilities As at As at 31 March 2019 31 March 2018 Deferred income on Government Grant 74.30 74.30 Statutory dues payables 149.19 86.54 Accruals of Incentives and Rebates * [Refer note 18(a)] 689.18 577.56 Income received in advance 1.68 2.50 Advance from customers * 190.06 175.77 Total other current liabilities 1,104.41 916.67 * Revenue recognised that was included in advance from customers at the beginning of the period INR 87.05 million (31 March 2018 : INR 127.58 million) 18(a) Movement in Accruals of Incentives and Rebates As at As at 31 March 2019 31 March 2018 At the commencement of the year 577.56 535.44 Add : Accruals made during the year 733.32 667.51 Less : Accruals utilised during the year (621.70) (625.39) Total revenue from operations 689.18 577.56

19 Revenue from operations For the year ended For the year ended 31 March 2019 31 March 2018 Income from port services 6,580.66 5,952.78 Other operating revenue 439.14 536.22 Total revenue from operations 7,019.80 6,489.00

20 Other income For the year ended For the year ended 31 March 2019 31 March 2018 Interest income - banks 321.11 223.75 - others 1.36 1.62 Dividends received from Associate company (Refer note below) 38.00 - Interest on income tax refund - 49.32 Deferred Income recognised 74.30 74.30 Miscellaneous income 17.66 21.46 Total other income 452.43 370.45 Note : All dividends from equity investments relates to investments held at the end of the reporting period.

98 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 21 Operating expenses For the year ended For the year ended 31 March 2019 31 March 2018 Handling expenses 1,141.90 967.49 Waterfront royalty (Refer note - 34) 187.81 124.05 Business support service charges 63.47 48.31 Other direct costs 49.19 45.23 Total operating expenses 1,442.37 1,185.08

22 %*€ For the year ended For the year ended 31 March 2019 31 March 2018 Salaries, wages and bonus 527.75 461.04 Contribution to provident fund and other funds (Refer note below) 19.99 18.61 Gratuity [Refer note 13(ii)] 7.90 7.49 Compensated absences [Refer note 13(i)] 5.55 11.65 Staff welfare expenses 35.66 30.07 %%*€ 596.85 528.86 The Company recognised INR 19.99 million (31 March 2018 : INR 18.61 million) for provident fund contribution in the z@\q

23 Finance costs For the year ended For the year ended 31 March 2019 31 March 2018 Financial charges 3.65 3.48 % 3.65 3.48

24 Depreciation and amortisation expense For the year ended For the year ended 31 March 2019 31 March 2018 Depreciation of property, plant and equipment 1,121.69 1,030.79 Amortisation of intangible assets 6.66 4.85 Total depreciation and amortisation expense 1,128.35 1,035.64

25 Other expenses For the year ended For the year ended 31 March 2019 31 March 2018 Power and fuel 249.39 253.47 Rent (Refer note - 32) 21.59 20.36 Repairs - Building 29.58 14.00 - Machinery and equipment 248.30 240.60 - Others 64.36 55.60

Annual Report 2018 - 2019 99 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) For the year ended For the year ended 31 March 2019 31 March 2018 Insurance 31.44 32.28 Rates and taxes 1.23 1.10 Travelling expenses 69.78 72.07 Legal and professional fees 66.32 73.78 Commission to Directors (Refer note - 37) 3.75 3.75 Expenditure towards Corporate Social Responsibility [Refer note - 25(a)] 106.60 86.18 Payment to auditors [Refer note - 25(b)] 4.12 4.93 Advertisement and sales promotion 11.47 10.36 Communication expenses 5.88 6.91 X€X\&= 0.23 1.62 Loss on foreign currency transactions and translations (net) 24.13 27.11 Bad Debt Write Off 3.03 - Provisions for inventory (Refer note - 7) 12.21 11.54 Provisions for doubtful debts [Refer note - 8(a)] 17.23 10.08 Freight and forwarding 2.60 1.69 Water charges expenses 22.09 19.81 Contract labour expenses 69.42 59.69 Miscellaneous expenses 27.18 27.42 Total other expenses 1,091.93 1,034.35

25 (a) Corporate Social Responsibility (CSR) For the year ended For the year ended 31 March 2019 31 March 2018 Amount required to be spent as per Section 135 of the Act 69.70 74.48 Amount spent during the year@ 106.60 86.18 (i) Construction/ acquisition of any asset - - (ii) On purposes other than (i) above 106.60 86.18 Total corporate social responsibility expense 106.60 86.18 @ Excludes advance paid of INR 7.85 million (31 March 2018 : INR 23.07 million). Company has committed to spend INR 69.86 million (31 March 2018 : INR 46.25 million). 25 (b) Details of payment to auditors For the year ended For the year ended 31 March 2019 31 March 2018 Payment to auditor As auditor Audit fee 2.75 3.57 Tax audit fee 0.21 0.21 Limited review of quarterly results 1.09 1.09 Reimbursement of expenses 0.07 0.06 Total payment to auditor 4.12 4.93

100 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 31 March 2019 31 March 2018 Carrying amount Fair Value Carrying amount Fair Value Financial Assets Q!% Security deposits 31.66 31.66 35.96 35.96 Q!% Security deposits 58.90 58.90 7.83 7.83 Loans and advances to employees 4.79 4.79 2.16 2.16 Trade receivables 509.72 509.72 257.56 257.56 Cash and cash equivalents 108.12 108.12 354.51 354.51 Other Bank balances 5,229.02 5,229.02 3,960.96 3,960.96 Total Financial Assets 5,942.21 5,942.21 4,618.98 4,618.98 Financial Liabilities Q!%%*% Security deposits received 27.20 27.20 27.20 27.20 Q!%%*% Trade payables 325.47 325.47 284.63 284.63 Retention monies payable 98.13 98.13 149.28 149.28 Security deposits received 62.81 62.81 64.63 64.63 Capital creditors 101.06 101.06 162.88 162.88 ‰X@ 4.45 4.45 3.02 3.02 Other payables 102.99 102.99 121.89 121.89 Total Financial Liabilities 722.11 722.11 813.53 813.53 Financial instruments carried at amortised cost X\?XXXYX@@XXQ\\\@ ?Q[@q'[X]\X@@XQY?X\\?Uq > # "%k `?@QQ\X‚ (a) Credit risk (b) Liquidity risk (c) Market risk `? @Q XX ‚ @[@ [@@ \ ? YXQ \ X @‚ ‚ @@?X\\?@QX\@qZ‚@[@YQ department under policies approved by the Board of Directors.

Annual Report 2018 - 2019 101 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) (a) Credit risk `? @Q ?  X @@X Y ? X \ customers or suppliers. To minimise the credit risk, security deposits and advance payments are taken from all major customers. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low YXY[XX\Xq X\YX@X? For the year ended 31 March 2019: 0-90 90-180 180-270 270-365 > 365 Ageing Not Due Total Days Days Days Days Days Gross Carrying amount 219.29 261.38 23.18 5.22 12.21 35.22 556.50 Expected credit losses - 1.75 2.11 2.88 6.49 33.55 46.78 Carrying amount of Trade 219.29 259.63 21.07 2.34 5.72 1.67 509.72 receivables For the year ended 31 March 2018: 0-90 90-180 180-270 270-365 > 365 Ageing Not Due Days Days Days Days Days Total Gross Carrying amount 218.88 7.60 2.54 20.55 16.53 21.01 287.11 Expected credit losses - 1.71 2.14 0.32 7.23 18.15 29.55 Carrying amount of Trade receivables 218.88 5.89 0.40 20.23 9.30 2.86 257.56 ! X~Q‚@[@@X@[\?@‚YX?XYXQ of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Management monitors Company’s liquidity position and cash and cash equivalents through ”XQXX[\?Y\?Uq@QQ@YXQ\[ through committed credit lines with Financial Institution. " `?\XXU[YX?U?@QXQ\?@QXXYXYXXQ[ ?U?|Xz?q|XU?"$@?@?"$@? ~X?Q[YX?@\[[q Carrying Payable on Less than 12 More than Notes Amount Demand months 12 months As at 31 March 2019 Trade payables 16 325.47 - 325.47 - Retention monies payable 12 98.13 92.34 0.18 5.61 Security deposits received 12 90.01 62.81 - 27.20 Capital creditors 12 101.06 - 101.06 - ‰X@ 12 4.45 4.45 - - Other payables 12 102.99 - 102.99 - As at 31 March 2018 Trade payables 16 284.63 - 284.63 - Retention monies payable 12 149.28 109.50 39.78 - Security deposits received 12 91.83 64.63 - 27.20 Capital creditors 12 162.88 - 162.88 - ‰X@ 12 3.02 3.02 - - Other payables 12 121.89 - 121.89 - As there are no committed credit facilities to meet obligations when due and to close out market positions, the Company is not exposed to liquidity risk. 102 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) (c) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, will affect the Company’s ?X\?X[\X@q|XUQXQX?\X instruments at 31 March 2019 and 31 March 2018. It is assumed that the exchange rate sensitivities have a symmetric impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates. `?QXQ?U?\\X~Q\YXQYX?[?[ and interest rates. Foreign Currency risk The Company is exposed to foreign exchange risk arising from foreign currency transactions, primary with respect to ‰z_]‰_‰Zq`?@QY@X@Q‚Q exposure is covered through the normal business operations. As the functional reporting currency is in INR, the foreign currency risk exists for the Company. Foreign currency exposure not covered by Forward Contracts as at 31 March 2019:

Details USD Exposure AUD Exposure EURO Exposure INR USD INR AUD INR Euro Receivables/Advance to Vendor 288.54 4.16 ---- 192.07 2.95 - - - - Advance from Customers 1.15 0.02 -- Payables 0.61 0.01 - - 0.02 @ 2.75 0.04 1.35 0.03 0.47 0.01 Q8k8% 44.03 0.64 ---- 133.78 2.05 - - - -

@ Amount is below rounding of norms adopted by the company Amounts in italics represent amounts as at 31 March 2018

:€ Details 31 March 2019 31 March 2018 USD sensitivity '*Z€‰z_'YQ"%&+"{?$%"<"%= 33.08 32.31 '*Z€‰z__YQ"%&+"{?$%"<"%= (33.08) (32.31)

AUD sensitivity '*Z€‰_'YQ"%&+"{?$%"<"%= - (0.14) '*Z€‰__YQ"%&+"{?$%"<"%= - 0.14

EUR sensitivity '*Z€‰Z'YQ"%&+"{?$%"<"%= - (0.05) '*Z€‰Z'YQ"%&+"{?$%"<"%= - 0.05 29. Capital Management The Company’s objective in managing its capital is to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The Company considers the following components of its Balance Sheet to be managed capital: "= z?X]$=z?@@}+=Z[

Annual Report 2018 - 2019 103 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 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 ?@Q]@??X]@‚[U?X@ of the Company. The Company’s focus is on keeping a strong total equity base to ensure independence, security, as well as high XYXQU?@[?‚X\?@Qq']@^?X] ?@QUXX‚@QYQq`?@Q?QYX covenants. The Management monitors the return on capital as well as the level of dividend to shareholders. The Company goal is to continue to be able to provide return to shareholders by continuing to distribute dividends in future period. Refer the \XXU[YX\?X@Xq Dividends

31 March 2019 31 March 2018 79-,* (i) Final dividend for the year ended 31 March 2017 of INR 1.80 per fully paid - 870.19 share Corporate dividend tax on above - 177.15 (ii) Final dividend for the year ended 31 March 2018 of INR 1.70 per fully 821.85 - paid Share Corporate dividend tax on above 168.93 - (iii) Interim dividend for the year ended 31 March 2018 of INR 1.70 per fully - 821.97 paid share Corporate dividend tax on above - 167.31 (iv) Interim dividend for the year ended 31 March 2019 of INR 1.70 per fully 821.85 - paid share Corporate dividend tax on above 168.93 - 7694!+++*+*+ `??@@?Q@\X\'*Z"q<% \XXQ~Q?&+"{?$%"<'*Z"q%=q`? is subject to the approval of shareholders in the ensuing annual general meeting. -?# ! `?@Q?``\[@U?ZXUQ Limited (PRCL) and Indian Railways, to provide minimum volumes of 3 million metric tonnes for every Financial Year. The Company has consistently met its volume commitment from Financial Year 2010-11 till date and there is no shortfall on \@@@\[Yq 31. Capital and other commitments (a) Capital commitments on account of Capital expenditure contracted and obligation under Export Promotion Capital Goods (‘EPCG’) at the end of the reporting period but not recognised as liabilities is as follows:

Particulars 31 March 2019 31 March 2018 (a) Capital expenditure contracted for at the end of the reporting period but not 73.42 147.1 recognised as liabilities (net of advances) &Y= |€‰‚[ [ YQ ? @Q X _Q € 2,949.14 2,949.14 @?@?@?&\YX[\XXX=

104 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 32. Lease &= `? @Q ? ‚ [ X \ \ @] [@ U? {| &X[ X rental payable as per High Court order). These lease arrangements include both cancellable and non-cancellable leases. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. &= Q@\'*Z$"q#@XX&+"{?$%"<'*Z$%q+!@XX=[z@\ are shown as “Rent” under Other Expenses in Note 25. (iii) The future minimum lease payments payable under the said non-cancellable operating lease for rented premises are as follows:

Particulars 31 March 2019 31 March 2018 Payable within one year 10.61 8.84 QYXYUQ 46.68 44.56 Payable more than 5 years 67.73 80.46 (iv) The Company has given a total area of 1,111,813 Square Mtr. (31 March 2018: 1,111,813 Square Mtr.) of land on lease to various customers. The lease is up to 2028 which is the end of the concession period. (v) Operating lease rental income of INR 147.42 million (31 March 2018 INR 124.72 million) recognised in Statement of X?[Z*"#q (vi) The future minimum lease payments receivable under the said non-cancellable operating lease for rented premises are as follows:

Particulars 31 March 2019 31 March 2018 Receivable within one year 206.90 208.07 ZYXYUQ 880.36 855.11 ZYX@?Q 1,177.57 1,430.35 33. Provisions and Contingent liabilities (a) Claims against Company not acknowledged as debt aggregates to INR 1,903.43 million (31 March 2018: INR 1,795.12 million). Provisions made in respect of the same aggregates to INR 365.04 million (31 March 2018: 365.04 million). - Above claim includes disputed claim with the associate Company, Pipavav Railway Corporation Limited of INR 699.33 million (31 March 2018: INR 699.33 million). (b) Claims against Company not acknowledged as debt aggregates to INR 218.71 million including GST of INR 33.36 million relating to GMB (31 March 2018: NIL). The company had made an application for approval of expansion plan to GMB on 1 October 2012. The approval was received from GMB vide letter dated 10 April 2015. As per one of the conditions of the approval the company has issued a bank guarantee of Rs. 185.35 Million which was encashed by GMB on 13 February 2019. Further, GMB has also asked the Company to pay GST on the aforesaid bank guarantee amounting to Rs. 33.36 million. The Company has reviewed the terms and conditions of approval and based on the management assessment and legal advice, the management believes that there is merit in the case and has requested {|Q\Y[??@q`?@\Y‚[?YQ{| ?&Z\#=q (c) Other contingent liabilities in respect of taxation matter not acknowledged as debt aggregates to INR 327.77 million (31 March 2018: INR 190.11 million). Provisions made in respect of the same is NIL (31 March 2018: NIL). &= `?@Q?\X[?@\?z@;[@\‘‚ ‘Q@?‘`?Z[X@@&''=“|[X?XX &X*q'€"&++=$%"#€‘‚‘Q{€$<={?$%]$%"#YQ?@XQ

Annual Report 2018 - 2019 105 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) [XX\XXU\@?\YU[\?X employees for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management which is supported by legal advice, ?\@X‚XQ?[@[XQ]?Y@? Financial Statements. Movement in provisions

Litigations / Disputes Taxation Matters 31 March 2019 31 March 2018 31 March 2019 31 March 2018 At the commencement of the year 365.04 365.04 - 1.12 Provision made during the year 7.00 - - - Provision reversed during the year (7.00) - - (1.12) At the end of the year 365.04 365.04 - - ? U \ Y @YX XQ \ ^[@€ [ U? ?€\@€X@\?@q 34. Concession Agreement with Government of Gujarat Pursuant to the Concession agreement with the Government of Gujarat and GMB dated 30 September 1998, the Company is entitled towards government assistance and accordingly have discharged its liability towards waterfront royalty subject to the conditions laid down in the aforesaid agreement. 35. Earnings per share

Year ended Year ended 31 March 19 31 March 18 \?Q (A) 2,056.26 1,984.60 #$ Number of equity shares at the beginning of the year 483,439,910 483,439,910 Number of equity shares at the end of the year 483,439,910 483,439,910 Weighted average number of equity shares outstanding during the year (B) 483,439,910 483,439,910 Basic and diluted earnings per share (INR ) (A/B) 4.24 4.10 36. Interest in Associate company Set out below is the associate of the Company as at 31 March 2019 which, in the opinion of the directors, is material to the Company. The entity listed below have share capital consisting solely of equity shares, which is held directly by the Company. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held.

Place of % of Accounting Carrying amount Name of Entity Relationship Business ownership method 31 March 2019 31 March 2018 Pipavav Railway Equity New Delhi 38.78 Associate 830.00 830.00 Corporation Limited Method

106 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 37. Related party transactions (a) List of related parties and their relationship

Relation Party A. Party with substantial interest and its (i) APM Terminals Mauritius Limited, Mauritius \X &= {`@X{[@|q‘q]`?*?X (iii) Maersk Line A/S, Denmark (formerly known as A.P. Moller - Maersk A/S) (iv) APM Terminals India Private Limited, India (v) Maersk Line India Private Limited, India (vi) GPRO Services India Private Limited, India (vii) Maersk Training India Private Limited, India (viii) Gateway Terminals India Private Limited, India (ix) Maersk Training Svendborg A/s, Denmark (x) Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft A/S & Co. KG, Germany (xi) Damco India Private Limited, India B. Associate Pipavav Railway Corporation Limited C. Directors, Non-Executive Directors and A) Executive directors Key managerial personnel Mr. Keld Pedersen (Managing director) B) Non-Executive directors Mr. Tejpreet Singh Chopra Ms. Hina Shah Mr. Pradeep Mallick Mr. Pravin Laheri Mr. David Skov* Mr. Jan Damgaard Sorensen (up to 29 January 2019)* Mr. Julian Bevis* Mr. Mukesh Kumar, IAS (Nominee of GMB) [w.e.f 31 October 2018]* C) Key managerial personnel {qz?|&?\X\Uqq\q$ November 2018) * No transactions during the year

Annual Report 2018 - 2019 107 1.27 40.00 (3.49) (727.66) Total - 0.04 193.05 Other % (3.49) (2.66) - (2.66) Limited Railway Pipavav Corporation - 830.00 - 830.00 Co. KG Hamburg 6Zk Dampfschifffahrts- Gesellschaft A/S & India Private k Limited Training -- - - - India GPRO Private Limited Services --- - - B.V. 1.27 APM Terminals Management APM India Private Limited Terminals Line India Private k Limited March 2018

- - - (48.31) - - - - - (48.31) - - - (42.75) - - - - - (42.75) - 0.08 0.38 ------0.46 - - - - - (0.17) - - (0.43) (0.60) ------A/S Line 10.09 ------10.09 15.73 0.11 - 45.89 1.56 0.10 - 2.63 - 66.02 40.00 ------192.07 0.06 0.88 (12.90) (0.84) - - (5.85) - - - - (19.59) k 1,498.60 0.55 0.60 ------1,499.75 ------(5.79) - - - - - (5.79) ------APM Limited (727.66) Mauritius Terminals Income from port services - 2,138.03 0.83 3.20 - - - 1.20 - - 2,143.26 Transactions during the period Investment ------830.00 - 830.00 Professional services receivedBusiness support service charges - - (19.99) (1.18) - - - - - (5.30) (63.47) ------(26.47) - (63.47) Expenses incurred on our behalf - - - - (46.03) - - - - (1.61) (47.64) Expenses incurred on their behalf - - 0.10 0.69 ------0.79 Training expenses ------(0.05) (0.05) Manpower cost Capital expenditure - - - - (2.50) - - - - - (2.50) Dividend income ------38.00 - 38.00 Dividend payment (706.96) ------(706.96) Closing Balances: Receivable - 276.38 0.20 0.97 - - - 0.23 - 0.04 277.82 Advance from customers ------Capital Creditors Trade Payable - 5.45 0.02 - 30.14 1.35 - - 3.49 - 40.45 Deposit received - 40.00 ------40.00 (b) Related party transactions Amounts in italics represent amounts as at 31

108 Annual Report 2018 - 2019 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated)

Managerial Name of Non-Executive Directors/ Fees for attending Board/ Commission Remuneration Total Key Managerial personnel Committee meetings ¡¢ 0.60 1.50 2.10 Mr. Tejpreet Singh Chopra - 0.60 1.50 2.10 0.95 0.75 1.70 Ms. Hina Shah - 0.75 0.75 1.50 1.00 0.75 1.75 Mr. Pradeep Mallick - 1.00 0.75 1.75 1.10 0.75 1.85 Mr. Pravin Laheri - 1.10 0.75 1.85 67.35 67.35 Mr. Keld Pedersen -- 52.55 52.55 9.53 9.53 Mr. Santosh Breed -- 2.75 2.75 -- Mr. Hariharan Iyer -- 8.95 8.95 Amounts in italics represent amounts as at 31 March 2018 ?XYX\YXXY\?@QU?X]?@[ to key managerial persons are not included. 38. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision {‚&_{=\?@Qq{[[_?\X\\?@Q??\[ decision makers. The Company operates only in one Business Segment i.e. ‘Port Services’ which primarily includes services such as Marine services, Berth hire, Wharfage, Container Handling, Yard Operations, Stevedorage and the activities incidental thereto within India, hence does not have any reportable Segments as per Indian Accounting Standard 108 “Operating

Annual Report 2018 - 2019 109 NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Segments”. The Company having combined revenue of more than 10% of the total revenue from related parties amounts to INR 2,143.25 million (31 March 2018: INR 1,499.75 million). 39. Other notes 4C+ ‰?{]z@XX{@_X@]$%%!&{z{_=U??@\\@$Y 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the Company, the details of outstanding dues to the Micro and Small enterprises as ?{z{_]$%%!?\XXU[X

31 March 2019 31 March 2018 a. Principal amount due to suppliers registered under the MSMED Act and remaining 0.31 1.06 QX?\?[Q} b. Interest amount due to suppliers registered under the MSMED Act and remaining 0.05 0.02 QX?\?[Q} c. the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of 1.38 1.46 the payment made to the supplier beyond the appointed day during each accounting Q} d. the amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without -- [ ? ? {] z@XX {@ _X@]$%%!} e. the amount of interest accrued and remaining unpaid at the end of each accounting - @ Q} f. the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small 0.12 0.10 enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. @ Amount is below the rounding off norm adopted by the Company.

As per our report of even date attached. For Price Waterhouse Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

110 Annual Report 2018 - 2019 INDEPENDENT AUDITORS’ REPORT To the Members of Gujarat Pipavav Port Limited Report on the Consolidated Financial Statements Opinion "q “??@Q[XX@\^@&?\\ ?@Q=@Q‡\*&"=&|=??XX@ˆ]@[ \?X|Xz?+"{?$%"#]?Xz@\&X[? @?'@=]?X@\?[~Q?X?U@\? Q?]@@Q\[[X?XQ\@Y? X&?\\?XX@=q $q '?Y\\@[?X[]?\X X@[?\@~YQ?@]$%"+&?=?@~[ \U\@QU??[X[XXQ']\?X\\\ \?@Q+"{?$%"#]\XX@?@&@[\ ?@?@=]X?[~QX?U\?Q?q Basis of Opinion +q“U??z[&z="+&"%=\?q YX?z\?Y?ZYX\?\?X Xz@\q“\?@QU?? ?X ~@ ? X \ ? X X @ ' @ \ ? \ ? YQ '' ? X \ ?] U ? \XXX ? ?X YX U??~@q“YX??U?Y?Y YQ??@\?\Y[?"#$%\??{[?YXU] \Y\q Emphasis of matter q “U**q++&Y=?XX@U??Y?Q ?QY‚YQ?@QYXX[XX?Q\|‚ @['*Z"<q+@XX?YQ^{@|q@\? @q q “U?[?!X??X@\ZXUQ @&@Q=]YQ@\?#{Q$%"#U?? ?X[U??XX@. ?XX@] @\?@U?X?U‚?\??q Key audit matter !q „Q@?@?]\X^[@]U\@[\?X X@\?q`?@U?\\?X X@U?X]\@[?]U? @q

Annual Report 2018 - 2019 111 Key audit matter description How our audit addressed the key audit matter @\\YXX@X &Z\$q$?X@= `?@Q[ƒ\ ' X ? @ \ \ YU?XYXq YXX@X]U\@]X[? `? @ \\ \@ '*Z \XXU[ +#q!@XX&Z\*"#?X 1. ? \ [ XQ X X@=X[ƒ X?X@q +"{?$%"#\ $q ‰\@?@[@]X?[ Y@'*Z!<#q"<@XX&Z\ ?\\\XXXX\Y *"<?XX@= @[\[\?@q z? Y Y +q ?‚Y]\Q[?[?Q @ X@ \ \ X \Y@@[? \ X[ [ @[@ @U?X@UXXXQ[ƒ ^[@[XQ?Y@ YX\?[ƒq Y‚Q@q q \@ X‚Y‚ XQ \ YQ @[ X U? ? @ \ X Q X[ Q@€ @ Y~ ? Q @XYq q \@QXQYQ[?X\U? YXQ\YX[q“??X[@ \\Y€U@XXQ\\? @QXq !q [@X^X\QX@ Y[?^XU?[@q | ? Y \@] U \Q Q [ \\ ? {[@ @ \ \ Y X X@ X U? XYXq Other Information q`?@Q|\_YX\??\@q`??\@@\_ ]{[@XQ]Z]|ZYXQZzX &YX?XX@?=]U??UY ?\?]??@z@]U??Y@XYX\? date.

""$ Annual Report 2018 - 2019 Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements 11. `? @Q | \ _ YX \ ? \ ? X X@@\?~@\??[\U\?XX] XX\@X?U]?[~Q\?@QX[ U??[X[XXQ']X[?[z "++ \ ?q`? | \ _ \ ? @ X ? @Q \ YX\@\~[U??\? \\[[?\?@Q\[[\?[X}X X\[X}@‚[^[@@?YX}? []@X@@\~X\XX]?U[\\XQ\ [Q@X\?[]X?\?X @?[\U\\@@X@@]U??\]U??? Y \ ? \ \ ? X X @ YQ ? _ \ ? @Q] \q "$q'[?XX@]?|\_\?@X?@Q \YX\[?YXQ\?@Q\[[ ]X[]XYX]@X[[[?[[Y\[X @[@?X~?@Q]?XXYq "+q `?|\_\?@X?@Q\YX\ [?\X[\?@Q\q Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements "qY^YYXYU???XX@U?X\\@ @X@@]U??\]?XqZYX ?[?XX\]Y[?U?zUXXXUQ @X@@U?q{@\@\@X\] XXQ?[[[]?QXYXQY?@\‚? Y\?XX@q "q \U?z]U\X^[@@\X‚@?[? ?q“X '\Q?‚\@X@@\?XX@]U??\ ][\@?‚]Y?\ Y\q`?‚\[@X@@X[\@\ ?[??\X[\@]\@QXXX]\[Q]X@]@] ?\XXq Y[\XXX?[? ?@q‰"+&+=&=\?]UXYX\[U??? ŠX[@Q?~XXXU?\X@X?[ \\\?Xq X?\[X?YX\[@X X@YQ@[@q X?\@[@\?[[Y\[]Y? Y]U??@XQX?@Q[Y ?YXQ\?@Q\[[q'\UX?@XQ ]U~U?XX?XX @]\?X~]@\QqXY? Y ? \ q ŠU] \ @Q ? @Q[[q X ? XX ] \ ? X X @] X[ ? X]U???X\X@?XQ[ @??\q

Annual Report 2018 - 2019 ""+ Y\[[?X\@\?Y U??@Q  ? X \X @q “ YX\?]\@\?\?X@\?X ?XX@\U??U?q??X? XX@]U???YYQ?]??@YX \?]\@\?YQ?@q“@XXQYX\ audit opinion. "!q “@@U???[U?[\?@Q??X?X \X@\U??U?[[]@[?@]?X @[\?[[]X[Q[XX?U\Q[ q "q “X??[U?[U?@?U?@XU?X?X~@ [[]@@U??@XXX??@?@QYXQY ?[?Y]U?XYX]X\[q "

"" Annual Report 2018 - 2019 q ?Y\?U\@?\?@Q+"{?$%"#‚ YQ?|\_\?@Q?\?Q\@Q '] \ ? \ ? @Q @Q ' ~X+"{?$%"#\@Y[@\z"!&$=\?q \q “?[@\?@?U?\@@@ [?$"&Y=Yq [q ZU?[?Y]U??~Q\?XXXU?\X @\?@Q?[\\\?X]\ q ?q “???@YX?ZU?ZX""\?@ &=ZX]$%"]?Y\\@[?X [ q `?XX@X?@]\Q]\[X[+"{?$%"# ?XX\?@QZ\*++?X X@q q`?@Q@Q?X[@+"{?$%"#\U???U @X\YXXq`?@Q?QX[@ +"{?]$%"#q q `? ? Y XQ \[ @ ~ Y \ ? ' YQ?@Q@Q'[?Q+" {?$%"#} q`?[XX[z|‚*XYX?@Q @Q\?Q+"{?$%"#q

For Price Waterhouse Chartered Accountants LLP @Z[*@Y%"$*€*%%%"!

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Annual Report 2018 - 2019 "" Annexure A to Independent Auditors’ Report

Z\[?$"&[=\?'Z\?@@Y\^@ ?XX@\?Q{?+"]$%"# Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Act "q '^U?\?XX@\?@Q\\?Q+"{? $%"#]U??XXXX[\^@&?\ \?@Q=@Q]U??@']\?q Management’s Responsibility for Internal Financial Controls $q`?|\_\?@Q@Q]U?@[X&=\Y +\z"+\?\?~Q\?XXXX[ XYX] U?? @ '] YX \ YX?[ @[ X X X Y X X X [ YX? YQ ? @Q [ ? X @\XX?*\'XXXXZ[ YQ?'\?\'&''=q`?YXX?[]@X@ @\~XXX?U[\\XQ\[?XQ\ \Y]X[??@QX]?\[[\]? \ \ ] ? Q @X \ ? [ ] ? @XQ \ XYXX\@]~?q Auditor’s Responsibility +qYXQ?@Q—XXXX[Y q“U??*\'XXXX Z[&?*=YQ?''?z[@YY "+&"%=\?@]$%"+]?XYX\XXX]Y?XYX \XXXY?YQ?''q`?z?*~?U @XQU??X~@X\@?YYXYU??~ XXXX[UYX?@\?X\\XQ XX@Xq q X\@[YY?~Q\?XXXQ@ X[?[\\q\XXXX[X Y[[\XXXX[][?‚?@XU‚ ][X[?[[\\\XXY?‚q`? X?^[@]X[?@\?‚\@X@@\? X@]U??\q q“YX??U?Y?YYQ??@\? \Y[?"%\??{[?YXU]\Y \?@QXXXQ@X[q Meaning of Internal Financial Controls Over Financial Reporting !q@Q—XXXX[[YX[[ ? XYXQ \ X [ ? \ X @ \ X U? [XXQ[Xq@Q—XXXX[X?X ? &"= ? @ \ ?] YX X] XQ \XQ  ? \?\?@Q}&$=YX? Q@\X@U?[XXQ[X] ?\?@QY[@XQU??\@[@ \?@Q}&+=YX[[@XQ\? ~]]\?@Q—?X?@X\\?X@q

""! Annual Report 2018 - 2019 Inherent Limitations of Internal Financial Controls Over Financial Reporting q |\??X@\XXXX[]X[?YXQ\XX @@[@\X]@X@@\@QYqX] ^\QX\?XXXX[\Y^?‚ ??XXXX[@QY@~Y\?[]? ?[\@XU??X@Qq Opinion

For Price Waterhouse Chartered Accountants LLP @Z[*@Y%"$*€*%%%"!

Q? {@Y "{Q$%"# {@Y?*@Y"%#+

Annual Report 2018 - 2019 117 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) Particulars Note No. As at As at 31 March 2019 31 March 2018 ASSETS Non-current assets Property, Plant and Equipment 3 (a) 15,891.44 16,847.91 Capital work-in-progress 3 (b) 453.84 323.23 Intangible assets 3 (c) 9.14 14.88 Investment accounted for using the equity method 4 (a) 2,594.18 2,283.87 Financial Assets (i) ?X 4 (b) 31.66 35.96 Income tax assets (net) 5 (a) 141.92 114.68 Other non-current assets 6 17.55 62.82 Total non-current assets 19,139.73 19,683.35 Current assets Inventories 7 84.25 136.16 Financial Assets (i) Trade receivables 8 (a) 509.72 257.56 (ii) Cash and cash equivalents 8 (b) 108.12 354.51 (iii) Bank balance other than (ii) above 8 (c) 5,229.02 3,960.96 (iv) Loans 8 (d) 4.79 2.16 (v) ?X 4 (b) 58.90 7.83 Other Current assets 9 322.30 156.10 Total current assets 6,317.10 4,875.28 Total Assets 25,456.83 24,558.63 EQUITY AND LIABILITIES Equity Equity Share capital 10 4,834.40 4,834.40 Other equity (i) Reserves and surplus 11 17,139.90 16,760.06 Total equity 21,974.30 21,594.46 Liabilities Non-current liabilities Financial liabilities (i) ?XXYX 12 27.20 27.20 @XQYYX[ 13 19.36 18.41 Deferred tax liabilities (net) 14 (b) 462.21 3.42 Other non-current liabilities 15 670.54 738.86 Total non-current liabilities 1,179.31 787.89 Current liabilities Financial Liabilities (i) Trade payables 16 Dues to Micro, Small and Medium Enterprises 0.36 1.06 Other than Micro, Small and Medium Enterprises 325.11 283.57 (ii) ?XXYX 12 369.44 501.70 Provisions 17 365.04 365.04 @XQYYX[ 13 126.08 108.24 Income tax provisions (net) 5 (b) 12.78 - Other current liabilities 18 1,104.41 916.67 Total current liabilities 2,303.22 2,176.28 Total Liabilities 3,482.53 2,964.17 Total equity and liabilities 25,456.83 24,558.63 The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes. As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary

Mumbai Mumbai 15 May 2019 15 May 2019

118 Annual Report 2018 - 2019 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) Particulars Note No. For the year ended For the year ended 31 March 2019 31 March 2018 Revenue from operations 19 7,019.80 6,489.00 Other income 20 452.43 370.45 Total Income 7,472.23 6,859.45 Expenses Operating expenses 21 1,442.37 1,185.08 @XQY 22 596.85 528.86 Finance costs 23 3.65 3.48 Depreciation and amortisation expense 24 1,128.35 1,035.64 Other expenses 25 1,091.93 1,034.35 Total expenses 4,263.15 3,787.41 Y\?\\@ accounted for using equity method and tax 3,209.08 3,072.04 z?\\\[?~Q@? 4 (a) 310.54 225.54 $*€ 3,519.62 3,297.58 Tax expense : For the year - Current tax expense 14 (a) 691.25 662.74 - Deferred tax expense [Including Minimum Alternate Tax Credit utilised/(availed)] 14 (a) 461.57 424.70 For earlier year Adjustment of current tax - 3.93 Adjustment of Minimum Alternative Tax Credit Entitlement - (3.93) Credit utilised/(availed)] - - Total tax expense 1,152.82 1,087.44 $ 2,366.80 2,210.14 Other comprehensive income '@?UXXYXX &=Z@@\@XQ@YYX[ (7.95) (3.66) (ii) Share of other comprehensive income of associates (0.29) 0.12 (iii) Less: Income Tax relating (i) above 2.78 1.29 (iv) Less: Income Tax relating (ii) above 0.06 (0.02) Other comprehensive income for the year, net of tax (5.40) (2.27) Total comprehensive income for the year 2,361.40 2,207.87 Earning per equity share [face value per share INR 10/- (31 March 2018: INR10/- )] Basic earnings per share 4.88 4.57 Diluted earnings per share 4.88 4.57 `?YXz@\?XY^U??@Q[q As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

Annual Report 2018 - 2019 119 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) A. Equity share capital Notes Amount As at 1 April 2017 4,834.40 Changes in equity share capital 10 - As at 31 March 2018 4,834.40 Changes in equity share capital 10 - As at 31 March 2019 4,834.40

B. Other equity Attributable to owners of Gujarat Pipavav Port Limited Reserves & Surplus Particulars Notes Securities Retained Total Other Equity Premium Earnings Reserve Balance at 1 April 2017 11(i) 14,288.87 2,299.94 16,588.81 \?Q 11(ii) 2,210.14 2,210.14 Less: Other Comprehensive Income (2.27) (2.27) Total comprehensive income for the year ended 31 March 2,207.87 2,207.87 2018 Transaction with owners in their capacity as owners: Dividends paid (including dividend distribution tax) (2,036.62) (2,036.62) Balance at 31 March 2018 11(i) 14,288.87 2,471.19 16,760.06 \?Q 11(ii) 2,366.80 2,366.80 Less: Other Comprehensive Income (5.40) (5.40) Total comprehensive income for the year ended 31 March 2,361.40 2,361.40 2019 Transaction with owners in their capacity as owners: Dividends paid (including dividend distribution tax) (1,981.56) (1,981.56) Balance at 31 March 2019 14,288.87 2,851.03 17,139.90

The above statement of changes in equity should be read in conjunction with the accompanying notes. As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

120 Annual Report 2018 - 2019 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Year ended Year ended 31 March 2019 31 March 2018 Q Y\ 3,519.62 3,297.58 Adjustments : z?\\@Q (310.54) (225.54) Deferred income recognised (74.30) (74.30) Depreciation and amortisation expense 1,128.35 1,035.64 Finance costs 3.65 3.48 _@X[?U (321.11) (223.75) Loss on disposal of property, plant and equipment 0.23 1.62 Sundry balances written back (net) (5.97) (6.79) Write offs / provisions for current assets, loans and advances 32.47 21.62 Foreign currency transactions and translations differences (net) 20.89 34.29 Provision for claims - (1.12) 3,993.29 3,862.73 *k% Increase in trade receivables (293.29) (16.20) Decrease in inventories 39.70 7.88 (Increase)/Decrease in loans (2.64) 0.24 '?X (46.77) (0.78) Decrease in other non-current assets - 108.14 Increase in other current assets (166.20) (64.82) Increase in trade payables 40.84 28.29 '@XQYYX[ 10.84 29.43 _?XXYX (68.93) (367.16) Increase in non-current liabilities 5.98 - Increase in other current liabilities 187.74 82.91 (292.73) (192.07) Cash generated from operations 3,700.56 3,670.66 Income taxes paid (net of refund) (705.71) (525.12)  2,994.85 3,145.54

Q Payments for property, plant and equipment (313.54) (539.93) &Q@\@X[\X=€\@X\ 0.01 0.75 assets (net) Dividends received from Associate company - - Interest received 255.27 115.02 Decrease/(Increase) in deposits with banks (including earmarked balances) (net) (1,202.22) (863.79) ! (1,260.48) (1,287.95)

Annual Report 2018 - 2019 121 CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH 2019 (All amounts are in Rupees Millions, unless otherwise stated) Year ended Year ended 31 March 2019 31 March 2018 Q Interest paid (3.65) (3.48) Dividends paid to Company’s shareholders (1,639.25) (1,689.14) Dividend distribution tax paid on dividend (337.86) (344.46) ! (1,980.76) (2,037.08)

Net increase/(decrease) in cash and cash equivalents (246.39) (179.49) ??~X?Y[[\?XQ 354.51 534.01 Effects of exchange rate changes on cash and cash equivalents - (0.01) Cash and cash equivalents at end of the year 108.12 354.51 %+!% 31 March 2019 31 March 2018 Cash and cash equivalents as per above comprise of the following Cash and cash equivalents [Refer note 8 (b)] 108.12 354.51 |X@\?U 108.12 354.51

The above Statement of Cash Flow should be read in conjunction with the accompanying notes. As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

122 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 1. (A) Company overview i. Gujarat Pipavav Port Limited, (“the Company”) was incorporated on 5 August 1992 to construct, operate and maintain an all-weather port at Pipavav, District Amreli, in the State of Gujarat. ii. The port is designed to handle bulk, container, liquid cargo and RORO and to provide port services such as marine services, material handling and storage operations. iii. The Company has entered into a 30 year Concession Agreement with Government of Gujarat and Gujarat Maritime Board (“GMB”) dated 30 September 1998 to engage in the business of developing, constructing, operating and maintaining the port on a BOOT (Build Own Operate Transfer) basis. q _[?Q$%%]{XX{‚[[?U?X~?@X shareholdings held by the original promoter viz. Seaking Infrastructure Limited (“SKIL”) group, on receipt of approval from Government of Gujarat, and Gujarat Maritime Board. Accordingly, AP Moller-Maersk group became the key promoter of the Company under the Concession agreement. v. Pursuant to the approval of the shareholders of the Company in an extra ordinary general meeting held on 17 November 2009, the Company has issued and allotted through Initial Public Offering (IPO) 108,695,652 equity shares of INR 10 each at a premium of INR 36 per share aggregating to a total of INR 5,000 million to all categories of investors. The issue was made in accordance with the terms of the Company’s prospectus dated 30 August 2010 and the shares got listed on 9 September 2010 on Bombay Stock Exchange and National Stock Exchange. (B) Principles of consolidation and equity accounting (i) Associates XXU???@Q?[YX^Xq`? is generally the case where the Company holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost. (ii) Equity method Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter [?@Q?\?~X\?`?X z@\]?@Q?\?@?@\?? comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment. When the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group. The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described in note 2.9 below. (iii) Changes in ownership interests “??@Q~Q\@Y\X\X[ ]Q?Q@\XU???[Q[@ [Xz@\q`?\XY@?XQ[@ for the purposes of subsequently accounting for the retained interest as an associate. In addition, any amounts previously recognised in other comprehensive income in respect of that associate are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously [?@?@XXq

Annual Report 2018 - 2019 123 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) '\?U?Y^X[]XQ ?\?@XQ[?@?@X XU?q &= `?Q?XX@

Sr. Country of % voting power held as Name of the Company No. incorporation at March 31, 2019 Pipavav Railway Corporation Limited 1 India 38.78% (the ‘Associate Company’) ># 6!% `?X\?[[X?\?X@q`? policies have been consistently applied to all the years presented, unless otherwise stated. (i) Compliance with Ind AS `? X @ @XQ XX @X U? '[ z &'z= Section 133 of the Companies Act, 2013 (the ‘Act’) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. (ii) Historical cost convention `?X@?Y?XY]\?\XXU[ _ XXYX[?@\X} _ YXX@\X XXXYX?YX?@Q[QX? criteria set out in the Schedule III to the Act. Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating QX"$@?\?\X\XYXq (iii) (a) Amended Standards adopted by the Company Ind AS 115 – Revenue from Contracts with Customers Effective 1 April 2018, the Company has adopted Ind AS 115 using the cumulative effect method. The standard is applied retrospectively only to contracts that are not completed as of 1 April 2018 and the comparatives have not been q`?\??Q@X@?X@\?@Qq (b) Amended Standards to be adopted by the Company (i) Ind AS 116, Leases Ind AS 116, is effective for periods beginning on or after April 01, 2019. Ind AS 116 will affect primarily the accounting by lessee and will result in the recognition of almost all leases on balance ?q`?@?YU[X~[ \&?[?\?X@=XXYXQQX\XXQXXXq X@\?@XUXXq`?@\XUXXXY\\ because the total expense is typically higher in the earlier years of a lease and lower in later years. Additionally, operating expense will be replaced with interest and depreciation, so key metrics like EBITDA will change. Operating ?UUXXY?[?Q@\?XXYXQXXU?[q `?[YQXUXX[XQ?[q

124 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) (ii) Amendment to Ind AS 12, ‘Income Taxes’ – Appendix C, ‘Uncertainty over Income Tax Treatments’ `?@@X?Q?XX[?@~\X] other comprehensive income or equity according to where the entity originally recognised those past transactions or events. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. (iii) Amendment to Ind AS 19 – plan amendment, curtailment or settlement The amendments require an entity: _@@\?@\? \X@@]X@X@} _[z@\X\][XX@]Q reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. `?@QXQX[?\\\?@@?X'zX@q `?\X@\@QU?'z~@[@@‚^[@]@ assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses ? X \ [ XYX ? \ ? X @qX X X \\ \@ ? estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the accounting period in which such revision takes place. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. {[[_?\X\\?@Q??\[@‚qZ\+<\ segment information presented. '@X?X@@[?Q\?@Q@@U?? ?@Q&?\XQ=q`?X@'&'*Z=]U?? Company’s functional and presentation currency. Foreign currency transactions are recorded in Indian rupees using the rates prevailing on the date of the respective transactions. Exchange differences arising on foreign currency transactions settled during the period are recognised in the Statement of q{QXYX@\[?YX?X ' ? X[ ?[ ? } ? X ?[ \\ [ ? z@\q As at the balance sheet date non-monetary items denominated in foreign currency are carried at historical cost. All non- monetary items denominated in foreign currency are carried at historical cost or other similar valuations are reported using the exchange rate that existed when the values were determined. ! Company is engaged in providing port services such as marine services, material handling and storage operations. Revenue is recognized from rendering of services at a point in time upon the completion of services as per contract with customers. Revenue is measured based on the transaction price, which is the consideration as per contractual terms. The amount disclosed as revenue is exclusive of goods and service tax (GST) and net of estimated trade allowance and rebates wherever applicable.

Annual Report 2018 - 2019 125 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) A contract liability is the obligation to render services to the customer for which the Company has received consideration from ?@qXYX[U??@Q?\@YX[ the contract. The Company does not expect to have any contracts where the period between the rendering of promised services to the customer and payment by the customer exceed one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money. Interest income on deposits with bank is recognised on a time proportion basis at applicable interest rates. " #!# Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. @ [ X[ @ \ [ ? z@ \ ? necessary to match them with the costs that they are intended to compensate and presented within other income. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred @z@\[?XY?X\?X and presented within other income. $ %& Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax XU=\?[&[?\\\@[\\YU[@YX income for the period). Provision for current tax is based on the results for the year ended 31 March, in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets XYX?Q[@?X@q`?\?[?[ deferred tax liabilities or assets are recognised using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. \  [ ? z@ \ ]  ?  ? X @ recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Minimum Alternative Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognised as deferred tax. The credit available under the said Act in respect of MAT is recognised as Deferred Tax Asset only to the extent there is convincing evidence that the Company will pay income tax in future periods and MAT credit can be carried forward to set-off against the normal tax liability. MAT credit recognised as Deferred Tax Asset is reviewed at each Balance sheet date and written down ??X[[?\\??@QUXXQ@X[? period. 2.8. Leases As a lessee Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of U?XXqXX?X?\X\? leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net \?[]XYU[?XXYXq?XQ@XX

126 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) YU?XYXQq`??[?z@\?X so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. U??[\?‚U\U?\?@QX X[XqQ@@[X&\Q\@?X= ?[?z@\[?XY?\?XX?Q@ XU?[X@\?XQ increases. As a lessor Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the X@X?XU?[X@\? Qq`?XX?YX?Y?q] including depreciation, incurred in earning the lease income are recognised as expenses. ' % Assets are reviewed at each reporting date to determine if there is any indication of impairment. An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of \XX\XXq'[X]?@\?U ?X[?@‚@\?@X\ @Q?‚??[[&‰=q For the purpose of impairment testing, assets are grouped together into the smallest group of assets (CGU) that generates ?U\@[?X[XQ\??U\?‰q '@@X[?z@\q If as at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists or has decreased, the assets or CGU’s recoverable amount is estimated. For assets, the impairment loss is reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation @]\@@X?Y[qz?X[?z@\q ( )*+*,! ?\?@\?U]??~XX??] ?XXXU?X]??@]?[?XQX~@U?[X@\?@?X ?XQYX‚U@\?U??Y^[‚\?[Xq -&% @Q[X@U?@\@U?z@\\@Q activities are such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period. 2.12. Inventories Inventories comprise of stores, spares, loose tools, fuel and lubricants. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. These are carried at the lower of cost and net realisable value. Costs are assigned to individual items \Q?Y\YqzQ@[@\?X\@?Qq Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Annual Report 2018 - 2019 127 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) %!+/* `?@QXX?\XXU[@@[ _?Y@Y~XQ\X&??[??@?@]?[? X=} _ ?@@ `?X?@QY@X\@[[?X?X@\ ??Uq @\X][XUXX?Y?z@\? comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. (ii) Measurement X[]?@Q@X\XX]?\X\ X?[?X]?XQYYX?~\?Xq` \X\X?[?X?z@\q Equity instruments The Company initially measures all equity investments at fair value. Where the Company’s management has elected to present \X[X~Q@?@?@]?Y~X\ \X[X?z@\q ?[?\X\X\X?[?X[?[€&X=? z@\q'@@XX\@@X~Q@@‘' are not reported separately from other changes in fair value. &= '@@\X The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised q`?@@@?X[QXU????Y[‚q X[XQU? _ `?@Q?\?[??U\@?X _ ?X[???U\?X]Y@XYX[ Q??U@q Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and U\U?\?Xq'?]?X[q“??Q? \YXXQXX‚U\U?\?X]?X[q “??Q??\XYXXQXX‚U\U?\? X]?X[\?@Q?X\?Xq“?? @QX\?X]?Y[?\[X@ ?Xq (v) Income recognition _[?z@\XQU??[?Q@YX?]YYX? ?@YU??UXXU?@Q]?@\?Y@XYXQq

128 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) / Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. 03+, Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to ?~\@q@QXX\\@~Q\Q[X~X\Q[?U?[\ foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when YYX?\@YU??@UXXU?@Q?\?@Y measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. XX?@?[?z@\[?[U???Q are incurred. 4*+3+!++! Depreciation is provided on the straight-line method, over the estimated useful life of each asset from the subsequent month \?\?q\XX\\??X''\?q| internal technical evaluation following assets have a different useful life than prescribed by schedule II of the Act.

Asset Details Technical Estimate in Years Ship to Shore Cranes 20 Power Distribution Systems 15 Carpeted Roads 20 Jetties 30 Dredging 50 Boundary Wall 20 Old Residential Complex 15 {\|X[ 15 Warehouses 15 Guest houses 15 All assets costing individually INR 125,000 or less are depreciated fully in the year of purchase. The useful lives are reviewed by the management at each reporting date and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the revised remaining useful life. X@\@?X@XU?\?Y\@ disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in z@\U??[€&X=q In accordance with Concession agreement all contracted immovable and movable assets shall be transferred to and shall vest in Gujarat Maritime Board (‘GMB’) at the end of the concession period, for consideration equivalent to the Depreciated ZX@‘X&_Z‘=qz?_Z‘XQ@YX]Y?@ useful life. " 5,+6 Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and / or any accumulated impairment loss, if any.

Annual Report 2018 - 2019 129 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) '[YX@?z@\[?[?X@??@\X lives, from the date that they are available for use. Accordingly, at present, these are being amortised on straight line basis based on the period of the licence in case of licensed software or for 3 years. Such intangible assets that are not yet available for use are tested annually for impairment. Amortisation method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be [XQ\\\@@]?@?[[XQq [YX[XU?\@Y\@Xq Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference YU?X?Q[@\?[?z@\ Loss. $ -6 79 *:6 YX\U[X]X[@QY?YXU?XXQU?"$@? after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The XYX@XQYYX[YX?q 79 0:6 Y X @XQ@ Y X U?? Q Q Y Q ? YX[ Q Q \? @q`? @Q @‚ @?XQ Y U@XQ\@@\?@U??YXq `?@QY[?z@\[?U??? employee renders the related service. `? @Q [Q Y ?@ Y Xq`? @Q YX[ \ YXXXYQ@[?@\\Y?@XQ?\? ?}?Y@XqQ[ and the fair value of any plan assets are deducted. The calculation of the Company’s obligation under the plan is performed XXQYQ~XQ[?^@?]U??[?\[[ X\@XQYX@@?XQYX?XYX[q`? \@[?X\?YX[YX]Y?@‚QX Government securities as at the Balance sheet date. XXXYX[@XQY?z@\q `?@Q[[X?X@X@\YXU??X@ settlement occurs. The Company has funded its gratuity liability with Life Insurance Corporation of India (LIC) under the Group Gratuity cum Life Assurance (Cash Accumulation) Scheme. `?XXYQXQ[??YX\?YYX[?\ X\Xq`?X@XQY?z@\q Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. ?[?X\?YYX[X[\@X@@X@[ @@XQ?z@\q

130 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 79 /*;66 The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected YXƒU?XXQU?UX@?\?\?]?YXX[@@XQY obligations. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using ?^@?qXX€[[?z@\? which they arise. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur. 2.18. Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be @XYXQ]YYX?U\@YUXXY~X?YX[q are not recognised for future operating losses. “??@Y\@XYX[]?X‚X??UUXXY~X@@YQ [?X\YX[U?Xq[\?X‚X?\UU? any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that @‚@\?@X\@Q?‚?XYXQq`?? provision due to the passage of time is recognised as interest expense. ' )6 A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably UXX ] ~ U \ ] YX[ U? @ Y @ XYXQq[ XYXU]YXX?YXQ\U\@q 2.20. Earnings per share (EPS) `?Yz@YQ[?YYX?~Q??X\?YQ?U[? [@Y\~Q?[[?q_Xz@YQ[?YYX to the equity shareholders for the period by the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except where the results would be anti-dilutive. 2.21. Dividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period. )6+, ~Q?X~Qq'@XXQYYX?\U??U in equity as a deduction, net of tax, from the proceeds. %!5 The Company carries its investments in associate at cost less impairment losses. The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable amount in accordance with policy given in 2.9.

Annual Report 2018 - 2019 131 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 2.24 +! Financial instruments measured at fair value can be divided into three levels: X"”&^=@‚\XXYX} X$'??~XU?XX"?YYX\?XYXQ]?XQ&qq =XQ&qq\@=} X+'\?XYXQ?YYYX@‚qX\X\XXU? level 1 of the fair value hierarchy. Non-listed shares and other securities fall within level 3 of the fair value hierarchy. X\XX+XYX@XQY?X\\?UqYXQ YX?[?@\\?@Q~Q[XQq 2.25 )+A+ `?\X@~?\[@U??]YQ]UXXX@~X? actual results. Management also needs to exercise the judgement in applying the Company’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with \@Y?Y\XX\?\\X?X@q The areas involving critical estimates or judgements are: _ @\\Z\*" _ @\XX\\Q]X~@'[YXZ\*+&=+&= _ @\YYX[Z\*"+ _ @\\X\[XYXZ\*++ _ @\X\YXXX@Z\*"< Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including \\?@Q?X@?[?YXYYX? circumstances.

132 Annual Report 2018 - 2019 9.14 453.84 453.84 he order 2019 As at part of the Amount As at 31 March Amount port boundary 321.85 31 March 2019 - As at 11.07 11.07 13.26 52.07 15.12 181.02 5.53 201.13 533.45 360.83 3,508.36 933.50 4,532.46 2019 As at 2,569.47 6,795.51 32.02 31 March 31st March 2019 2019

As at 31 March On On Deductions / Adjustments - Deductions / Adjustments year for the Charge - - the year 8.40 2.67 - Charge for 11.84 11.84 3.28 - 39.05 13.02 - 150.85 50.28 270.31 90.52 - - 684.86 248.64 - 2018 As at 1 April 1,858.92 713.29 2.74 25.40 6.65 0.03 2018 As at 1 April 20.65 24.33 233.09 734.59 321.85 2019 As at 9,364.98 3,869.19 5,465.96 31 March

41.16 2019 As at 31 March Deductions/ Adjustments during the year - - - - Deductions/ Adjustments during the year year Gross Carrying Amount Gross Carrying Accumulated Depreciation Net Carrying Additions during the Gross Carrying Amount Gross Carrying AmortisationAccumulated Net Carrying year 2018 1 April Additions during the 2018 1 April ParticularsAs at ParticularsAs at Land aggregating INR 24.98 million was purchased during prior years for handing it over to Government of Gujarat, pursuant t This land will be exchanged with the located inside port premises which does not form issued by Hon’ble Supreme Court. current Concession with Gujarat Maritime Board (GMB).

Land aggregating INR 1.47 million purchased during prior years for getting the rail connectivity from nearest station upto [?@\@Q]ZXUQ@]@q

Total Capital work in progress Computer Software 40.28 0.91 0.03 Total 40.28 0.91 0.03 41.16 25.40 6.65 0.03 32.02 9.14 Capital work-in-progress mainly comprises of Container handling Yard Cranes and Container Scanner. Yard Capital work-in-progress mainly comprises of Container handling Furniture, Fittings and Leasehold Improvements 17.44 3.20 - Total 19,872.14 165.47 2.98 20,034.63 3,024.23 1,121.70 2.74 4,143.19 15,891.44 Plant, Machinery and Equipment 9,247.54 120.42 {‘?X 2.98 22.02 2.31 - Railway sidings 233.09 - Buildings 5,426.42 39.54 - Port Road - External 734.59 - Land and site development 321.85 - Dredging 3,869.19 - 3(a)(i) Property, plant and equipment [1 April 2018 to 31 March 2019] plant and equipment [1 3(a)(i) Property, NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 AND FOR THE AT AS STATEMENTS FINANCIAL THE CONSOLIDATED NOTES TO (All amounts in Rupees Millions, unless otherwise stated) 2 plant and equipment. Refer to note 31 for disclosure of capital commitments the acquisition property, -;*;Q%k - - - - 3 (c) (i) Intangible Assets 3 (c) (i) Intangible Notes : 1 Land and site development includes - Freehold land of INR 50.55 million

Annual Report 2018 - 2019 133 14.88 323.23 323.23 2018 2018 As at As at Amount Amount 31 March 31 March As at 321.85 - 31 March 2018 8.40 13.62 11.84 11.84 5.60 39.05 194.04 25.40 684.86 4,741.56 150.85 583.74 270.31 3,598.88 2018 2018 As at As at 1,858.92 7,388.62 31 March 31 March he order issued by Hon'ble nt Concession with Gujarat

25.40 14.88 port boundary is registered in the On On Deductions / Adjustments - Deductions / Adjustments year for the Charge year - for the Charge - 4.95 8.19 1.30 6.79 2.70 1.09 25.64 13.02 (0.39) 2017 295.87 220.50 (168.49) 100.48 50.28 (0.09) 179.77 90.52 (0.02) As at 1 April 20.55 4.85 - 1,384.40 645.58 171.06 2017 As at 1 April 17.44 22.02 321.85 734.59 233.09 2018 As at 40.28 5,426.42 9,247.54 3,869.19 31 March 2018 As at 31 March

40.28 20.55 4.85 - Deductions/ Adjustments during the year 0.01 0.09 1.97 (0.02) (0.40) Deductions/ Adjustments during the year during Gross Carrying Amount Gross Carrying Accumulated Depreciation Net Carrying the year Additions year Additions during the 2017 1 April As at 1 April 2017 Particulars As at ParticularsAmount Gross Carrying AmortisationAccumulated Net Carrying Supreme Court. This land will be exchanged with the located inside port premises which does not form part of curre Supreme Court. Maritime Board (GMB). Land aggregating INR 1.47 million purchased during prior years for getting the rail connectivity from nearest station upto @\@Q]ZXUQ@]@q Land aggregating INR 24.98 million was purchased during prior years for handing it over to Government of Gujarat, pursuant t Refer to note 31 for disclosure of capital commitments for the acquisition of property, plant and equipment. Refer to note 31 for disclosure of capital commitments the acquisition property, Notes : Land and site development includes - Freehold land of INR 50.55 million - - Total 29.11 11.17 - Computer Software 29.11 11.17 - Capital work in progress Total Land and site development 321.86 - Port Road - External 734.68 - Buildings 5,110.10 148.29 (168.03) Plant, Machinery and Equipment 8,447.00 971.72 171.18 Total 18,751.23 1,127.74 6.83 19,872.14 1,997.90 1,030.79 4.46 3,024.23 16,847.91 Dredging 3,869.17 - Railway sidings 232.69 - {‘?X 23.99 - Furniture, Fittings and Leasehold Improvements 11.74 7.73 2.03 Capital work-in-progress mainly comprises of Container handling Yard Cranes and Container Scanner Yard Capital work-in-progress mainly comprises of Container handling 2 1 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 AND FOR THE AT AS STATEMENTS FINANCIAL THE CONSOLIDATED NOTES TO (All amounts in Rupees Millions, unless otherwise stated) April 2017 to 31 March 2018] plant and equipment [1 3(a)(i) Property, -;*; Q%k 3(c) (i) Assets Intangible

134 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 4 (a) Interests in Associates Set out below is the associate of the company as at 31 March 2019 which, in the opinion of the directors, are material to the group. The entity listed below have share capital consisting solely of equity shares, which are held directly by the company. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. Name of entity Place of % of Relationship Accounting Quoted fair value Carrying amount # business ownership method interest 31 March 31 March 31 March 31 March 2019 2018 2019 2018 Pipavav Railway India 38.78% Associate Equity * * 2,594.18 2,283.87 Corporation method Limited Pipavav Railway Corporation Limited engages in the construction, operation, and maintenance of a railway line connecting Port of Pipavav to Surendranagar Junction of Western Railway in Gujarat. Its railway system provides single window transport solutions for the movement of bulk and containerized cargo. ™‰XQ*~XYXq Reconciliation to carrying amounts 31 March 2019 31 March 2018 Opening carrying amount 2,283.87 2,058.23 $ In respect of earlier year (-21.48) In respect of current year 332.02 310.54 225.65 Other Comprehensive income In respect of earlier year (-0.30) In respect of current year 0.01 (0.29) - Income Tax relating to the above In respect of earlier year 0.06 In respect of current year (-0.00) 0.06 - Closing net assets 2,594.18 2,283.87

4 (b) % As at As at 31 March 2019 31 March 2018 Non current Current Non current Current Security deposits 31.66 8.93 35.96 7.83 Unbilled revenue - 49.97 - - %% 31.66 58.90 35.96 7.83

5 (a) Income tax assets (net) As at As at 31 March 2019 31 March 2018 Advance Tax * 141.92 114.68 Total Current tax assets (net) 141.92 114.68 * Net of provision for tax of INR 2,186.01 million (31 March 2018 : INR 2,186.01 million)

Annual Report 2018 - 2019 135 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 5 (b) Income tax provisions (net) As at As at 31 March 2019 31 March 2018 Provision for tax # 12.78 - Total Current tax provisions (net) 12.78 - # Net of Advance tax of INR 678.47 million (31 March 2018 : NIL)

6 Other non-current assets As at As at 31 March 2019 31 March 2018 Capital advances 17.55 62.82 Total other non-current assets 17.55 62.82

7 Inventories As at As at 31 March 2019 31 March 2018 Stores and spares 83.22 131.92 Goods-in-transit - Stores and Spares 1.03 4.24 Total inventories 84.25 136.16 !6$< Write-downs of inventories including provision for inventory amounts to INR 12.21 million (31 March 2018 : INR 11.54 million). `?U[&Z\$=X?z@\q 8 (a) Trade receivables As at As at 31 March 2019 31 March 2018 Trade receivables 278.68 94.06 Receivables from related parties (Refer note - 37) 277.82 193.05 Less: Allowance for doubtful debts (Refer note - 28) (46.78) (29.55) Total trade receivables 509.72 257.56

8k!!% Secured, considered good 62.58 47.36 Unsecured, considered good 447.14 210.20 ZYXU???[‚ - - Credit impaired 46.78 29.55 Total 556.50 287.11 Allowance for doubtful debts (46.78) (29.55) Total trade receivables 509.72 257.56

136 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 8 (b) Cash and cash equivalents As at As at 31 March 2019 31 March 2018 Cash on hand - 0.26 Balances with banks -In current accounts 64.09 220.47 -In Exchange Earners' Foreign Currency accounts 44.03 133.78 Total cash and cash equivalents 108.12 354.51

8 (c) *k*% As at As at 31 March 2019 31 March 2018 Deposits with original maturity of more than three months but less than 12 5,224.57 3,957.94 months * Unpaid dividend account 4.45 3.02 %*k*% 5,229.02 3,960.96 * Of the above, bank deposits aggregating NIL (31 March 2018 : INR 9.15 million) is marked lien against bank guarantees issued to customs and other third parties. 8 (d) Loans As at As at 31 March 2019 31 March 2018 Loans and advances to employees 4.79 2.16 Total loans 4.79 2.16

9 Other current assets As at As at 31 March 2019 31 March 2018 Advance for supplies 39.53 111.18 Prepaid expenses 17.00 8.17 Balances with government authorities 71.58 32.78 Receivable from Gujarat Maritime Board [Refer Note 33(b)] 185.35 - Other receivables 8.84 3.97 Total other current assets 322.30 156.10

10 Equity share capital As at As at 31 March 2019 31 March 2018 Authorised share capital 600,000,000 (31 March 2018 : 600,000,000) equity shares of INR 10 each 6,000.00 6,000.00 6,000.00 6,000.00 Issued, subscribed and paid up share capital 483,439,910 (31 March 2018 : 483,439,910) equity shares of INR 10 each, fully 4,834.40 4,834.40 paid-up 4,834.40 4,834.40

Annual Report 2018 - 2019 137 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) a Reconciliation of number of equity shares outstanding as at the beginning and at the end of reporting period Particulars As at As at 31 March 2019 31 March 2018 Number INR Number INR Equity shares at the commencement of the period 483,439,910 4,834.40 483,439,910 4,834.40 Issued during the period - - - - At the end of the period 483,439,910 4,834.40 483,439,910 4,834.40

b Rights, preferences and restrictions attached to equity shares The Company has a single class of equity shares. Accordingly, all equity rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital \?@Qq‘[[?Y\?U??QXX?@XQQYX have not been paid. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held. c Equity shares in the Company held by each shareholder holding more than 5% shares # Name of Shareholder As at 31 March 2019 As at 31 March 2018 Number Percentage Number Percentage APM Terminals Mauritius Limited 207,903,931 43.01% 207,903,931 43.01% ICICI Prudential Midcap Fund - - 35,005,553 7.24% ' ' ' X ‘ X z 41,699,875 8.63% - - HDFC Trustee Company Limited - Hdfc Capital 43,451,389 8.99% 29,913,819 6.19% Builder Fund # As per the records of the Company, including its register of members.

11 Reserves and surplus As at As at 31 March 2019 31 March 2018 Securities premium reserve [Refer Note- (i) below] 14,288.87 14,288.87 Retained earnings [Refer Note- (ii) below] 2,851.03 2,471.19 Total reserves and surplus 17,139.90 16,760.06

(i) Securities premium reserve * As at As at 31 March 2019 31 March 2018 Opening balance 14,288.87 14,288.87 Closing balance 14,288.87 14,288.87 * Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

138 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) (ii) Retained earnings As at As at 31 March 2019 31 March 2018 Opening balance 2,471.19 2,299.94 *\?Q 2,366.80 2,210.14 Items of other comprehensive income recognised directly in retained earnings Z@@\@XQ@YYX[]\ (5.40) (2.27) Dividends - Final dividend for the year (821.85) (870.19) _YX\?Q (168.93) (177.15) - Interim dividend for the year (821.85) (821.97) - Dividend distribution tax on interim dividend for the year (168.93) (167.31) Closing balance 2,851.03 2,471.19

12 %%*% As at As at 31 March 2019 31 March 2018 Non current Current Non current Current Retention monies payable - 98.13 - 149.28 Security deposits received * 27.20 62.81 27.20 64.63 Capital creditors * - 101.06 - 162.88 Unclaimed dividend (Refer note below) - 4.45 - 3.02 Other payables* - 102.99 - 121.89 %%%*% 27.20 369.44 27.20 501.70 Note : There are no amounts due for payment to Investor Education and Protection Fund under Section 125 of The Companies Act 2013 as at the year end. * For due to related parties refer note - 37 13 %**% As at As at 31 March 2019 31 March 2018 Non current Current Non current Current Compensated absences [Refer note (i) below] - 29.47 - 26.54 Gratuity [Refer note (ii) below] 11.86 12.53 10.91 11.45 ?@XQYQYX 7.50 84.08 7.50 70.25 %%**% 19.36 126.08 18.41 108.24

Annual Report 2018 - 2019 139 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) (i) Compensated absences The leave salary is payable to all eligible employees for each day of accumulated leave on death or on resignation q@?[?z@\\@Y during the year amounts to INR 5.55 million (31 March 2018: INR 11.65 million) and is included in Note 22 - ‘Employee Yq@X\@Y[[['*Z$#q@XX&+" March 2018: INR 26.54 million) (Refer note 14). (ii) Post-employment obligations - Gratuity The Company makes annual contribution to the Employee’s Group Gratuity-cum-Life Assurance Scheme of the \'\']\YX\@XQq`??@\X@ sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six @?q‘[@X\Q\qQQ@@XQ [[?X@YQ'@`]"#!"`?Q@\Q]"#$q `?@[?YX?@@?YYX[?Q as follows :

Present value Fair value of Net of obligation plan assets amount Balance as at 01 April 2018 56.16 (33.80) 22.36 Current service cost 6.21 - 6.21 Interest expense / (income) 4.25 (2.55) 1.70 Return on plan assets, excluding amounts included in interest - - - expense / (income) %!6$< 10.46 (2.55) 7.91 Remeasurements (Gain) / loss from change in demographic assumptions - - &=€X\@?[X@ 0.51 - 0.51 Experience (gain) / loss 7.00 0.43 7.43 Total amount recognised in other comprehensive income 7.51 0.43 7.94 Employers contributions - (13.82) (13.82) Liability Transferred In/ Acquisitions and Liability Transferred Out/ (0.09) 0.09 - Divestments) |Q@ (3.70) 3.70 - Balance as at 31 March 2019 70.34 (45.95) 24.39

140 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Present value Fair value of Net of obligation plan assets amount Balance as at 01 April 2017 50.48 (34.06) 16.42 Current service cost 6.32 - 6.32 Interest expense / (income) 3.59 - 3.59 Return on plan assets, excluding amounts included in interest - (2.42) (2.42) expense / (income) %!6$< 9.91 (2.42) 7.49 Remeasurements (Gain) / loss from change in demographic assumptions - - - &=€X\@?[X@ (2.14) - (2.14) Experience (gain) / loss 6.08 (0.28) 5.80 Total amount recognised in other comprehensive income 3.94 (0.28) 3.66 Employers contributions - (5.21) (5.21) |Q@ (8.17) 8.17 - Balance as at 31 March 2018 56.16 (33.80) 22.36 The net liability disclosed above relates to funded plans are as follow : 31 March 2019 31 March 2018 Present value of funded obligations (70.34) (56.16) Fair value of plan assets 45.95 33.80 '!%;! (24.39) (22.36) `?[X@U\XXU 31 March 2019 31 March 2018 Discount rate 7.47% 7.56% Salary growth rate 8.00% 8.00% Expected rate of return on plan assets 7.47% 7.56% Attrition rate 6.00% 6.00% Mortality Indian Assured lives Indian Assured lives mortality (2006-08) mortality (2006-08) 31 March 2019 31 March 2018 ^|YX[@ 70.34 56.16 Delta Effect of +1% Change in Rate of Discounting (5.33) (4.41) Delta Effect of -1% Change in Rate of Discounting 6.12 5.06 Delta Effect of +1% Change in Rate of Salary Increase 6.02 4.99 Delta Effect of -1% Change in Rate of Salary Increase (5.36) (4.43) Delta Effect of +1% Change in Rate of Employee Turnover (0.31) (0.27) Delta Effect of -1% Change in Rate of Employee Turnover 0.34 0.29 Category of assets 31 March 2019 31 March 2018 Insurance fund (100%) 45.95 33.80 Total 45.95 33.80

(iii). k€! `?[?YX]?@Q@Y\‚]?@[\U?? detailed below

Annual Report 2018 - 2019 141 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Changes in bond yields A decrease in bond yield will increase plan liabilities, although this will be partially offset by increase in the plan’s bond holding Asset volatility `?XXYXXX[U?\YQX}\X\@ ?QX]?UXXqXU??\'\'@q' subject to interest rate risk. The Company intends to maintain the above investments in the continuing years. !%$`8*%""! ^|QYX‹@?_\Z[ 31 March 2019 31 March 2018 1st Following Year 4.09 3.29 2nd Following Year 4.42 3.37 3rd Following Year 6.20 3.63 4th Following Year 6.32 5.04 5th Following Year 6.29 5.09 Sum of Years 6 To 10 29.74 25.46

14 Taxation #€€6$< For the year ended For the year ended 31 March 2019 31 March 2018 Current tax Current year 691.25 662.74 Total 691.25 662.74 Deferred tax Deferred tax 46.05 94.38 MAT credit utilised/(entitlement) 415.52 330.32 Total 461.57 424.70 Total income tax expense/(credit) 1,152.82 1,087.44

Reconciliation between the statutory income tax rate applicable to the Company and the effective income tax rate of the Company is as follows : For the year ended For the year ended 31 March 2019 31 March 2018 [Y\ 3,519.62 3,297.58 Applicable tax rate of the reporting entity 34.944% 34.608% Expected total tax expense 1,229.90 1,141.23 @?[z@\ 1,152.82 1,087.44 Difference 77.08 53.79 Tax effect of amounts which are (not deductible) /allowable in calculating taxable income: (i) Expenditures not deductible for tax purpose (20.92) (29.83) &=z?\ 108.51 78.07 (iii) Impact of change in tax rate (19.50) - (iv) Others 8.99 5.55 Total 77.08 53.79

142 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) b (i) Deferred tax relates to the following : As at As at 31 March 2019 31 March 2018 A) Deferred Tax Assets Expenditure deductible on payment basis 120.17 103.07 _YYX[ 20.56 16.64 MAT credit entitlement 1,591.26 2,006.78 Total deferred tax assets (A) 1,731.99 2,126.49 B) Deferred Tax Liabilities On difference between book depreciation and tax depreciation 2,194.20 2,129.91 Total deferred tax liabilities (B) 2,194.20 2,129.91 Set-off of deferred tax assets /(liabilities) pursuant to set-off provisions 1,731.99 2,126.49 Net deferred tax liabilities (B - A) 462.21 3.42

b (ii) Movement in deferred tax assets / (liabilities) Expenditure '* MAT credit On difference Total deductible on obligations entitlement **k Payment Basis depreciation and tax depreciation At 1 April 2017 81.73 17.32 2,333.18 (2,016.18) 416.05 (Charged)/credited: - to Consolidated Statement of 21.34 (1.97) (326.40) (113.73) (420.76) - to other comprehensive income - 1.29 - - 1.29 At 31 March 2018 103.07 16.64 2,006.78 (2,129.91) (3.42) (Charged)/credited: - z@\ 17.10 1.14 (415.52) (64.29) (461.57) - to other comprehensive income - 2.78 - - 2.78 At 31 March 2019 120.17 20.56 1,591.26 (2,194.20) (462.21) Unrecognised temporary differences For the year ended For the year ended 31 March 2019 31 March 2018 Temporary differences relating to Investment in Associate for which deferred tax liability is not recognised Undistributed earnings 1,764.18 1,453.87 Unrecognised deferred tax liabilities relating to above 362.63 298.85 Company's associate have undistributed earnings of INR 1764.18 (31 March 2018: INR 1453.87 which, if paid out as dividends, would be subject to tax on Associate. An assessable temporary difference exists. But no deferred tax liabilities has been recognised as the temporary difference is not expected to reverse in foreseeable future. 15 Other non-current liabilities As at As at 31 March 2019 31 March 2018 Deferred income on Government Grant 670.54 738.86 Total other non-current liabilities 670.54 738.86

Annual Report 2018 - 2019 143 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 16 Trade payables As at As at 31 March 2019 31 March 2018 Trade payables 284.66 276.04 Dues to Micro, Small and Medium Enterprises (Refer note - 39) 0.36 1.06 Trade payables to related parties (Refer note - 37 ) 40.45 7.53 Total Trade payables 325.47 284.63

17 Provisions As at As at 31 March 2019 31 March 2018 Claims (Refer note - 33) 365.04 365.04 Total provisions 365.04 365.04

18 Other current liabilities As at As at 31 March 2019 31 March 2018 Deferred income on Government Grant 74.30 74.30 Statutory dues payables 149.19 86.54 Accruals of Incentives and Rebates [Refer note - 18(a)] 689.18 577.56 Income received in advance 1.68 2.50 Advance from customers * 190.06 175.77 Total other current liabilities 1,104.41 916.67 * Revenue recognised that was included in the contract liability at the beginning of the period INR 87.05 million (31 March 2018 : INR 127.58 million) 18(a) Movement in Accruals of Incentives and Rebates As at As at 31 March 2019 31 March 2018 At the commencement of the year 577.56 535.44 Add : Accruals made during the year 733.32 667.51 Less : Accruals utilised during the year (621.70) (625.39) At the end of the year 689.18 577.56

19 Revenue from operations For the year ended For the year ended 31 March 2019 31 March 2018 Income from port services 6,580.66 5,952.78 Other operating revenue 439.14 536.22 Total revenue from operations 7,019.80 6,489.00

144 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 20 Other income For the year ended For the year ended 31 March 2019 31 March 2018 Interest income - banks 321.11 223.75 - others 1.36 1.62 Dividends received from Associate company (Refer note below) 38.00 - Interest on income tax refund - 49.32 Deferred Income recognised 74.30 74.30 Miscellaneous income 17.66 21.46 Total other income 452.43 370.45 Note: All dividends from equity investments relates to investments held at the end of the reporting period.

21 Operating expenses For the year ended For the year ended 31 March 2019 31 March 2018 Handling expenses 1,141.90 967.49 Waterfront royalty (Refer note - 34) 187.81 124.05 Business support service charges 63.47 48.31 Other direct costs 49.19 45.23 Total operating expenses 1,442.37 1,185.08

22 %*€ For the year ended For the year ended 31 March 2019 31 March 2018 Salaries, wages and bonus 527.75 461.04 Contribution to provident fund and other funds (Refer note below) 19.99 18.61 Gratuity [Refer note 13(ii)] 7.90 7.49 Compensated absences [Refer note 13(i)] 5.55 11.65 Staff welfare expenses 35.66 30.07 %%*€ 596.85 528.86 The Company recognised INR 19.99 million (31 March 2018 : INR 18.61 million) for provident fund contribution in the Xz@\q 23 Finance costs For the year ended For the year ended 31 March 2019 31 March 2018 Financial charges 3.65 3.48 % 3.65 3.48

24 Depreciation and amortisation expense For the year ended For the year ended 31 March 2019 31 March 2018 Depreciation of property, plant and equipment 1,121.69 1,030.79 Amortisation of intangible assets 6.66 4.85 Total depreciation and amortisation expense 1,128.35 1,035.64

Annual Report 2018 - 2019 145 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 25 Other expenses For the year ended For the year ended 31 March 2019 31 March 2018 Power and fuel 249.39 253.47 Rent (Refer note - 32) 21.59 20.36 Repairs - Building 29.58 14.00 - Machinery and equipment 248.30 240.60 - Others 64.36 55.60 Insurance 31.44 32.28 Rates and taxes 1.23 1.10 Travelling expenses 69.78 72.07 Legal and professional fees 66.32 73.78 Commission to Directors (Refer note - 37) 3.75 3.75 Expenditure towards Corporate Social Responsibility [Refer note - 25(a)] 106.60 86.18 Payment to auditors [Refer note - 25(b)] 4.12 4.93 Advertisement and sales promotion 11.47 10.36 Communication expenses 5.88 6.91 X€X\&= 0.23 1.62 Loss on foreign currency transactions and translations (wet) 24.13 27.11 Bad Debt Write Off 3.03 - Provisions for inventory (Refer note - 7) 12.21 11.54 Provisions for doubtful debts [Refer note - 8(a)] 17.23 10.08 Freight and forwarding 2.60 1.69 Water charges expenses 22.09 19.81 Contract labour expenses 69.42 59.69 Miscellaneous expenses 27.18 27.42 Total other expenses 1,091.93 1,034.35

25 (a) Corporate Social Responsibility (CSR) For the year ended For the year ended 31 March 2019 31 March 2018 Amount required to be spent as per Section 135 of the Act 69.70 74.48 Amount spent during the year@ 106.60 86.18 (i) Construction/ acquisition of any asset - - (ii) On purposes other than (i) above 106.60 86.18 Total corporate social responsibility expense 106.60 86.18 @ Excludes advance paid of INR 7.85 million (31 March 2018 : INR 23.07 million). Company has committed to spend INR 69.86 million (31 March 2018 : INR 46.25 million).

146 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 25 (b) Details of payment to auditors For the year ended For the year ended 31 March 2019 31 March 2018 Payment to auditor As auditor Audit fee 2.75 3.57 Tax audit fee 0.21 0.21 Limited review of quarterly results 1.09 1.09 Reimbursement of expenses 0.07 0.06 Total payment to auditor 4.12 4.93 26. Transfer Pricing The Company’s international transactions with related parties are at arm’s length as per the independent accountants’ report for the year ended 31 March 2018. Management believes that the Company’s international transactions with related parties post 31 March 2018 continue to be at arm’s length and that the transfer pricing legislation will not have any impact on these X@]XXQ@\?\\q >x# "%!%%*% `?XXYX[\X?[?X?@?@qXX the Financial instruments carried at amortised cost.

31 March 2019 31 March 2018 Carrying amount Fair Value Carrying amount Fair Value Financial Assets Q!% Security deposits 31.66 31.66 35.96 35.96 Q!% Security deposits 58.90 58.90 7.83 7.83 Loans and advances to employees 4.79 4.79 2.16 2.16 Trade receivables 509.72 509.72 257.56 257.56 Cash and cash equivalents 108.12 108.12 354.51 354.51 Other Bank balances 5,229.02 5,229.02 3,960.96 3,960.96 Total Financial Assets 5,942.21 5,942.21 4,618.98 4,618.98 Financial Liabilities Q!%%*% Security deposits received 27.20 27.20 27.20 27.20 Q!%%*% Trade payables 325.47 325.47 284.63 284.63 Retention monies payable 98.13 98.13 149.28 149.28 Security deposits received 62.81 62.81 64.63 64.63 Capital creditors 101.06 101.06 162.88 162.88 Unclaimed dividend 4.45 4.45 3.02 3.02 Other payables 102.99 102.99 121.89 121.89 Total Financial Liabilities 722.11 722.11 813.53 813.53 Financial instruments carried at amortised cost X\?XXXYX@@XXQ\\\@ ?Q[@q'[X]\X@@XQY?X\\?Uq

Annual Report 2018 - 2019 147 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) > # "%k `?@QQ\X‚ (a) Credit risk (b) Liquidity risk (c) Market risk `? @Q XX ‚ @[@ [@@ \ ? YXQ \ X @‚ ‚ @@?X\\?@QX\@qZ‚@[@YQ department under policies approved by the Board of Directors. (a) Credit risk `? @Q ?  X @@X Y ? X \ customers or suppliers. To minimise the credit risk, security deposits and advance payments are taken from all major customers. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low YXY[XX\Xq X\YX@X? For the year ended 31 March 2019:

0-90 90-180 180-270 270-365 > 365 Ageing Not Due Total Days Days Days Days Days Gross Carrying amount 219.29 261.38 23.18 5.22 12.21 35.22 556.50 Expected credit losses - 1.75 2.11 2.88 6.49 33.55 46.78 Carrying amount of Trade 219.29 259.63 21.07 2.34 5.72 1.67 509.72 receivables For the year ended 31 March 2018:

0-90 90-180 180-270 270-365 > 365 Ageing Not Due Days Days Days Days Days Total Gross Carrying amount 218.88 7.60 2.54 20.55 16.53 21.01 287.11 Expected credit losses - 1.71 2.14 0.32 7.23 18.15 29.55 Carrying amount of Trade receivables 218.88 5.89 0.40 20.23 9.30 2.86 257.56 ! X~Q‚@[@@X@[\?@‚YX?XYXQ of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Management monitors Company’s liquidity position and cash and cash equivalents through ”XQXX[\?Y\?Uq@QQ@YXQ\[ through committed credit lines with Financial Institution. " `?\XXU[YX?U?@QXQ\?@QXXYXYXXQ[ ?U?|Xz?q|XU?"$@?@?"$@? ~X?Q[YX?@\[[q

Carrying Payable on Less than 12 More than Notes Amount Demand months 12 months As at 31 March 2019 Trade payables 16 325.47 - 325.47 - Retention monies payable 13 98.13 92.34 0.18 5.61 Security deposits received 13 90.01 62.81 - 27.20 Capital creditors 13 101.06 - 101.06 - Unclaimed dividend 13 4.45 4.45 - -

148 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Carrying Payable on Less than 12 More than Notes Amount Demand months 12 months Other payables 13 102.99 - 102.99 - As at 31 March 2018 Trade payables 16 284.63 - 284.63 - Retention monies payable 13 149.28 109.50 39.78 - Security deposits received 13 91.83 64.63 - 27.20 Capital creditors 13 162.88 - 162.88 - Unclaimed dividend 13 3.02 3.02 - - Other payables 13 121.89 - 121.89 - As there are no committed credit facilities to meet obligations when due and to close out market positions, the Company is not exposed to liquidity risk. (c) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, will affect the Company’s ?X\?X[\X@q|XUQXQX?\X instruments at 31 March 2019 and 31 March 2018. It is assumed that the exchange rate sensitivities have a symmetric impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates. `?QXQ?U?\\X~Q\YXQYX?[?[ and interest rates. Foreign Currency risk The Company is exposed to foreign exchange risk arising from foreign currency transactions, primary with respect to USD, AUD and EURO. The Company’s business model incorporates assumptions on currency risk and ensures any exposure is covered through the normal business operations. As the functional reporting currency is in INR, the foreign currency risk exists for the Company. Foreign currency exposure not covered by Forward Contracts as at 31 March 2019:

USD Exposure AUD Exposure EURO Exposure Details INR USD INR AUD INR Euro Receivables/Advance to Vendor 288.54 4.16 ---- 192.07 2.95 ---- Advance from Customers 1.15 0.02 -- Payables 0.61 0.01 - - 0.02 @ 2.75 0.04 1.35 0.03 0.47 0.01 Q8k8% 44.03 0.64 ---- 133.78 2.05 ---- @ Amount is below the rounding off norm adopted by the company Amounts in italics represent amounts as at 31 March 2018

:€ Details 31 March 2019 31 March 2018 USD sensitivity INR/USD -Increase by 10% (31 March 2018-10%) 33.08 32.31 INR/USD -Decrease by 10% (31 March 2018-10%) (33.08) (32.31)

AUD sensitivity

Annual Report 2018 - 2019 149 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) :€ Details 31 March 2019 31 March 2018 INR/AUD -Increase by 10% (31 March 2018-10%) - (0.14) INR/AUD -Decrease by 10% (31 March 2018-10%) - 0.14

EUR sensitivity INR/EUR -Increase by 10% (31 March 2018-10%) - (0.05) INR/EUR -Increase by 10% (31 March 2018-10%) - 0.05 29. Capital Management The Company’s objective in managing its capital is to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The Company considers the following components of its Balance Sheet to be managed capital: "= z?X]$=z?@@}+=Z[ 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 ?@Q]@??X]@‚[U?X@ of the Company. The Company’s focus is on keeping a strong total equity base to ensure independence, security, as well as high XYXQU?@[?‚X\?@Qq']@^?X] ?@QUXX‚@QYQq`?@Q?QYX covenants. The Management monitors the return on capital as well as the level of dividend to shareholders. The Company goal is to continue to be able to provide return to shareholders by continuing to distribute dividends in future period. Refer the \XXU[YX\?X@Xq Dividends

31 March 2019 31 March 2018 79-,* (i) Final dividend for the year ended 31 March 2017 of INR 1.80 per fully paid - 870.19 share Corporate dividend tax on above - 177.15 (ii) Final dividend for the year ended 31 March 2018 of INR 1.70 per fully paid 821.85 - share Corporate dividend tax on above 168.93 - (iii) Interim dividend for the year ended 31 March 2018 of INR 1.70 per fully - 821.97 paid share Corporate dividend tax on above - 167.31 (iv) Interim dividend for the year ended 31 March 2019 of INR 1.70 per fully 821.85 - paid share Corporate dividend tax on above 168.93 - 7694!+++*+*+ `??@@?Q@\X\'*Z"q<% \XXQ~Q?&+"{?$%"<'*Z"q%=q`? is subject to the approval of shareholders in the ensuing annual general meeting.

150 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) -?# ! `?@Q?``\[@U?ZXUQ Limited (PRCL) and Indian Railways, to provide minimum volumes of 3 million metric tonnes for every Financial Year. The Company has consistently met its volume commitment from Financial Year 2010-11 till date and there is no shortfall on \@@@\[Yq 31. Capital and other commitments (a) Capital commitments on account of Capital expenditure contracted and obligation under Export Promotion Capital Goods (‘EPCG’) at the end of the reporting period but not recognised as liabilities is as follows:

Particulars 31 March 2019 31 March 2018 (a) Capital expenditure contracted for at the end of the reporting period but not 73.42 147.1 recognised as liabilities (net of advances) (b) Bonds/Undertaking given by the Company under Concessional Duty / 2,949.14 2,949.14 @?@?@?&\YX[\XXX= 32. Lease &= `? @Q ? ‚ [ X \ \ @] [@ U? {| &X[ X rental payable as per High Court order). These lease arrangements include both cancellable and non-cancellable leases. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. &= Q@\'*Z$"q#@XX&+"{?$%"<'*Z$%q+!@XX=[z@\ are shown as “Rent” under Other Expenses in Note 25. (iii) The future minimum lease payments payable under the said non-cancellable operating lease for rented premises are as follows:

Particulars 31 March 2019 31 March 2018 Payable within one year 10.61 8.84 QYXYUQ 46.68 44.56 Payable more than 5 years 67.73 80.46 (iv) The Company has given a total area of 1,111,813 Square Mtr. (31 March 2018: 1,111,813 Square Mtr.) of land on lease to various customers. The lease is up to 2028 which is the end of the concession period. (v) Operating lease rental income of INR 147.42 million (31 March 2018 INR 124.72 million) recognised in Statement of X?[Z*"#q (vi) The future minimum lease payments receivable under the said non-cancellable operating lease for rented premises are as follows:

Particulars 31 March 2019 31 March 2018 Receivable within one year 206.90 208.07 ZYXYUQ 880.36 855.11 ZYX@?Q 1,177.57 1,430.35 33. Provisions and Contingent liabilities (a) Claims against Company not acknowledged as debt aggregates to INR 1,903.43 million (31 March 2018: INR 1,795.12 million). Provisions made in respect of the same aggregates to INR 365.04 million (31 March 2018: 365.04 million). - Above claim includes disputed claim with the associate Company, Pipavav Railway Corporation Limited of INR 699.33 million (31 March 2018: INR 699.33 million). (b) Claims against Company not acknowledged as debt aggregates to INR 218.71 million including GST of INR 33.36 million relating to GMB (31 March 2018: NIL). The company had made an application for approval of expansion plan to GMB on 1 October 2012. The approval was received from GMB vide letter dated 10 April 2015. As per one of the conditions of the approval the company has issued a bank guarantee of Rs. 185.35 Million which was encashed by

Annual Report 2018 - 2019 151 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) GMB on 13 February 2019. Further, GMB has also asked the Company to pay GST on the aforesaid bank guarantee amounting to Rs. 33.36 million. The company has reviewed the terms and conditions of approval and based on the management assessment and legal advice, the management believes that there is merits in the case and has requested GMB an opportunity of being heard in this matter. The amount of bank guarantee encashed by GMB is ?&Z\#=q (c) Other contingent liabilities in respect of taxation matter not acknowledged as debt aggregates to INR 327.77 million (31 March 2018: INR 190.11 million). Provisions made in respect of the same is NIL (31 March 2018: NIL). &= `?@Q?\X[?@\?z@;[@\‘‚ ‘Q@?‘`?Z[X@@&''=“|[X?XX &X*q'€"&++=$%"#€‘‚‘Q{€$<={?$%]$%"#YQ?@XQ [XX\XXU\@?\YU[\?X employees for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management, the aforesaid matter is not likely to have [@[XQ]?Y@?Xz@q Movement in provisions

Litigations / Disputes Taxation Matters 31 March 2019 31 March 2018 31 March 2019 31 March 2018 At the commencement of the year 365.04 365.04 - 1.12 Provision made during the year 7.00 - - - Provision reversed during the year (7.00) - - (1.12) At the end of the year 365.04 365.04 - - ? U \ Y @YX XQ \ ^[@€ [ U? ?€\@€X@\?@q 34. Concession Agreement with Government of Gujarat Pursuant to the Concession agreement with the Government of Gujarat and Gujarat Maritime Board (GMB) dated 30 September 1998, the Company is entitled towards government assistance and accordingly have discharged its liability towards waterfront royalty subject to the conditions laid down in the aforesaid agreement. 35. Earnings per share

Year ended Year ended 31 March 19 31 March 18 \?Q (A) 2,366.80 2,210.14 #$ Number of equity shares at the beginning of the year 483,439,910 483,439,910 Number of equity shares at the end of the year 483,439,910 483,439,910 Weighted average number of equity shares outstanding during the year (B) 483,439,910 483,439,910 Basic and diluted earnings per share (INR ) (A/B) 4.88 4.57 36. Interest in Associate company Set out below is the associate of the Company as at 31 March 2019 which, in the opinion of the directors, is material to the Company. The entity listed below have share capital consisting solely of equity shares, which is held directly by the Company. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held.

Place of % of Accounting Carrying amount Name of Entity Relationship Business ownership method 31 March 2019 31 March 2018 Pipavav Railway Corporation Equity New Delhi 38.78 Associate 830.00 830.00 Limited Method

152 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 37. Related party transactions (a) List of related parties and their relationship

Relation Party A. Party with substantial interest and its (i) APM Terminals Mauritius Limited, Mauritius \X (ii) {`@X{[@|q‘q]`?*?X (iii) Maersk Line A/S, Denmark (formerly known as A.P. Moller - Maersk A/S) (iv) APM Terminals India Private Limited, India (v) Maersk Line India Private Limited, India (vi) GPRO Services India Private Limited, India (vii) Maersk Training India Private Limited, India (viii) Gateway Terminals India Private Limited, India (ix) Maersk Training Svendborg A/s, Denmark (x) Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft A/S & Co. KG, Germany (xi) Damco India Private Limited, India B. Associate Pipavav Railway Corporation Limited

C. Directors, Non-Executive Directors and A) Executive directors Key managerial personnel Mr. Keld Pedersen (Managing director) B) Non-Executive directors Mr. Tejpreet Singh Chopra Ms. Hina Shah Mr. Pradeep Mallick Mr. Pravin Laheri Mr. David Skov* Mr. Jan Damgaard Sorensen (up to 29 January 2019)* Mr. Julian Bevis* Mr. Mukesh Kumar, IAS (Nominee of Gujarat Maritime Board) [w.e.f 31 October 2018]* C) Key managerial personnel {qz?|&?\X\Uqq\q$ November 2018)

* No transactions during the year

Annual Report 2018 - 2019 153 1.27 (5.79) (3.49) Total - Other % (3.49) Limited Railway Pipavav Corporation Co. KG Hamburg 6Zk Dampfschifffahrts- Gesellschaft A/S & India Private k Limited Training ------(0.17) - - (0.43) (0.60) - - - (2.66) - (2.66) India GPRO Private Limited Services 1.27 B.V. APM (5.79) Terminals Management APM India Private Limited Terminals - - (42.75) - - - - - (42.75) 0.08 0.38 ------0.46 Line India Private k Limited March 2018

------(48.31) - - - - - (48.31) ------830.00 - 830.00 10.09 -15.73 0.11 - - - 45.89 1.56 - 0.10 - - - 2.63 - - 66.02 - 10.09 192.07 0.06 0.88 - - - - - 0.04 193.05 (12.90) (0.84) - - (5.85) - - - - (19.59) k 1,498.60 0.55 0.60 ------1,499.75 Line A/S ------40.00 ------40.00 ------APM Limited (727.66) ------(727.66) Mauritius Terminals Deposit received - 40.00 ------40.00 Capital Creditors Advance from customers ------Expenses incurred on their behalf - - 0.10 0.69 ------0.79 Manpower cost Dividend incomeDividend payment - (706.96)Trade Payable ------5.45 0.02 - - - - - 30.14 1.35 - - - 38.00 - - - - 38.00 3.49 (706.96) - 40.45 Training expenses ------(0.05) (0.05) Capital expenditure - - - - (2.50) - - - - - (2.50) Closing Balances: Receivable - 276.38 0.20 0.97 - - - 0.23 - 0.04 277.82 Expenses incurred on our behalf - - - - (46.03) - - - - (1.61) (47.64) Business support service charges - - - - (63.47) - - - - - (63.47) Income from port servicesProfessional services received - - 2,138.03 0.83 (19.99) (1.18) 3.20 - - - - (5.30) - - 1.20 - - - - - 2,143.26 (26.47) Transactions during the period Investment ------830.00 - 830.00 (b) Related party transactions Amounts in italics represent amounts as at 31

154 Annual Report 2018 - 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) Managerial Name of Non-Executive Directors/Key Fees for attending Board/ Commission Remuneration Total Managerial personnel Committee meetings ¡¢ 0.60 1.50 2.10 Mr. Tejpreet Singh Chopra - 0.60 1.50 2.10 0.95 0.75 1.70 Ms. Hina Shah - 0.75 0.75 1.50 1.00 0.75 1.75 Mr. Pradeep Mallick - 1.00 0.75 1.75 1.10 0.75 1.85 Mr. Pravin Laheri - 1.10 0.75 1.85 67.35 67.35 Mr. Keld Pedersen -- 52.55 52.55 9.53 10.25 Mr. Santosh Breed -- 2.75 2.75 -- Mr. Hariharan Iyer -- 8.95 8.95 Amounts in italics represent amounts as at 31 March 2018 ?XYX\YXXY\?@QU?X]?@[ to key managerial persons are not included. 38. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision {‚&´_{´=\?@Qq{[[_?\X\\?@Q??\[ decision makers. The Company operates only in one Business Segment i.e. ‘Port Services' which primarily includes services such as Marine services, Berth hire, Wharfage, Container Handling, Yard Operations, Stevedorage and the activities incidental thereto within India, hence does not have any reportable Segments as per Indian Accounting Standard 108 "Operating Segments". The Company having combined revenue of more than 10% of the total revenue from related parties amounts to INR 2,143.25 million (31 March 2018: INR 1,499.75 million).

Annual Report 2018 - 2019 155 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 (All amounts in Rupees Millions, unless otherwise stated) 39. Other notes 4C+ Under the Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act') which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the Company, the details of outstanding dues to the Micro and Small enterprises as ?{z{_]$%%!?\XXU[X

31 March 2019 31 March 2018 a. Principal amount due to suppliers registered under the MSMED Act and remaining 0.31 1.06 QX?\?[Q} b. Interest amount due to suppliers registered under the MSMED Act and remaining 0.05 0.02 QX?\?[Q} c. the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of 1.38 1.46 the payment made to the supplier beyond the appointed day during each accounting Q} d. the amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without -- [ ? ? {] z@XX {@ _X@]$%%!} e. the amount of interest accrued and remaining unpaid at the end of each accounting - @ Q} f. the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small 0.12 0.10 enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. @ Amount is below the rounding off norm adopted by the Company.

As per our report of even date attached. For Price Water house Chartered Accountants LLP For and on Behalf of Board of Directors of Firm Registration No: 012754N/ N-500016 Gujarat Pipavav Port Limited CIN: L63010GJ1992PLC018106

Priyanshu Gundana Keld Pedersen Pravin Laheri Partner Managing Director Director Membership No: 109553 DIN : 07144184 DIN: 00499080

Santosh Breed Manish Agnihotri Company Secretary Mumbai Mumbai 15 May 2019 15 May 2019

156 Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PIPAVAV RAILWAY CORPORATION LIMITED 1. Opinion “ ? ? X X @ \ PIPAVAV RAILWAY CORPORATION LIMITED &? @Q=] U??@?YX?+"st{?$%"#]?z@\]z@\?[~Q z@\?XU\?Q?]?X@]X[@@Q\[ [X?XQ\@q ' ? Y \ \@ [ ? X [ ] ? \ X X@[?\@~YQ?@]$%"+?@~[ \U\@QU??[X[XXQ']\?\\\\?@Q {?+"]$%"#]€X]&?[~Q=?U\?Q?q 2. Basis for Opinion “U??z[&z="+&"%=\?@ ]$%"+qYX?z\?Y?Auditor’s Responsibilities for the Audit of the Financial Statements \q“\?@QU??Code of Ethics issued YQ?'\?\'[?U???X~@?X\? X@?\?@]$%"+?ZX?]U?\XXX? ?XYXU??~@?\?q“YX??U ?Y\Y\q 3. Other Information `?@Q|\_YX\??\@q`??\@@?\@ X?_]YX?X@?q ?X@??\@UQ\@\ X?q 'U?\?X@]YXQ??\@][] U????\@@XXQU??X@‚UX[Y? ?UY@XXQ@q'\]Y?U‚U?\@]UX?? @X@@\??\@]U~?\q“??[?[q 4. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements `?@Q|\_YX\?@"+&=\?@]$%"+&?= U??\?XX@?[\U\?X] X\@]&?[~Q=?U\?@QU??[X[XXQ ']X[?[z"++\?q`?YXQXX @\~[U??\?\\[[\?\? @Q\[[\?[X}XX\[ X}@‚[^[@@?YX}[]@X@@ \ ~ X X X] ? U [ \\XQ \ [ ? Q @X \ ? []X?\?X@?[\U \\@@X@@]U??\q '[?X@]?|\_YX\[?@QYXQ [[]X[]XYX]@X[[[?[[Y\[ X?|\_?X~?@Q]?XXY q `?|\_XYX\[?@QX[q 5. Auditor’s Responsibilities for the Audit of the Financial Statements Y^YYXYU???X@U?X\\@@X @@]U??\]?XqZYX ?[?XX\]Y[?U?z[&z=UXX

Annual Report 2018 - 2019 157 Pipavav Railway Corporation Limited

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158 Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

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Annual Report 2018 - 2019 "# Pipavav Railway Corporation Limited

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„qzqU@ {@Y?*q%%$!

Place: New Delhi Date: 9th May 2019

Annual Report 2018 - 2019 "!" Pipavav Railway Corporation Limited

€!:!ʭ*Q%:6% Statements for the year ended 31st March 2019 As required by Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we report that: As per Clause 3: &= &= `?@Q@[?U[\XXX]X[~X\ q &Y= `?\?@Q?Y?QXXQYQ?@[@YQ?“ ZXUQ \ ? ^ +"st {?] $%"#] @X U ? ?QX q &= `?X\'@@YXQ?X?@\?@QYQ?@[@?[YX ?X?@\?@QYQ?@[@@\?z[@ YU{Q\ZXUQ?@Qq [?\@YQ?X[[[[`"q%XU[? @\?Z\[[?XQ\@?YQ\U??X [@X?X?Y@XYX?U??X? @q &= `?@QY[X[@@QX[ZXUQ[`\U?{Q\ZXUQ ?XQQ}??XXYXq &= [?\@X[]?@Q?[QX Q]@?Q[@€"<#\@]$%"+q[XQ]X+&= &=]&Y=]&=\?XYXq &= [?\@X[]?@Q?X][] Q]@]Q?Q?[@?\z"<]"

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„qzqU@ {@Y?*q%%$!

Place: New Delhi Date: 9th May 2019

Annual Report 2018 - 2019 "!+ Pipavav Railway Corporation Limited

Annexure B to the Independent Auditors’ Report of even date to the members of Pipavav Railway Corporation Limited on %%-@>?@‚ %%%!Q%!;!*-@^-Q=>?@-;ʬʭ “??XXXU?\X@\ZXUQ@&? @Q=\+"{?$%"#^U?\?zXX@\?@Q\?Q ?q Management’s Responsibility for Internal Financial Controls `?@Q@[@YX\YX?[@[XXXY?XX X[YX?YQ?@Q[?X@\XX? *\'XXXXZ[YQ?'\?\ '&''=q`?YXX?[]@X@@\~XXX? U[\\XQ\[?XQ\\Y]X[?@QX] ?\[[\]?\\]?Q@X\?[ ]?@XQ\XYXX\@]~?@]$%"+q Auditors’ Responsibility YXQ?@Q—XXXU?\X@Y q“U??*\'XXXX Z[&?*=?z[@YY"+&"%=\?@ ]$%"+]?XYX\XXX]Y?XYX\'XXX ]Y?YQ?'\?\'q`?z?*~?U@XQ U??X~@X\@?YYXYU??~XX XU?\X@UYX?@\?X\\XQXX@X q X\@[YY?~Q\?XXXQ@U? \X@?[\\q\XXXU?\X @XY[[\XXXU?\X@][? ‚?@XU‚][X[?[[\\\XXY ?‚q`?X?^[@]X[?@\?‚\@X @@\?X@]U??\q “YX??U?Y\Y\? @QXXXQ@U?\X@q Meaning of Internal Financial Controls with reference to Financial Statements @Q—XXXU?\X@[YX [[?XYXQ\X[?\X@\XU? [XXQ [ Xq @Q— X X X U? \ X @ X ?X?&"=?@\?]YXX]XQ\XQ ?\?\?@Q}&$=YX? Q@\X@U?[XXQ[X]? \?@QY[@XQU??ƒ\@[@\ ?@Q}&+=YX[[@XQ\?ƒ~]] \?@Q—?X?@X\\?X@q Inherent Limitations of Internal Financial Controls with reference to Financial Statements |\??X@\XXXU?\X@]X[?YXQ\ XX@@[@\X]@X@@\@QYq X]^\QX\?XXXU?\X@\Y^ ?‚??XXXXU?\X@@QY@~Y\ ?[]??[\@XU??X@Qq

"! Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

Opinion ']?@Q?]XX@X]~XXXQ@U?\X @?XXXU?\X@U[\\XQ+" {?$%"#] Y?XXX[YX?YQ?@Q[?X@\ XX?*\'XXXXZ[YQ?' \?\']U?'Z]@*q!&=\@?\@\? \?XX@q q„q?q ? &@Z[*q%!*=

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Place: New Delhi Date: 9th May 2019

Annual Report 2018 - 2019 "! Pipavav Railway Corporation Limited

To

Principal Director of Audit (Rly-Commercial) Q=%Q%€# Tilak Bridge, New Delhi-110002

Sub: The supplementary audit under 143(5) of the Companies Act 2013 of PIPAVAV RAILWAY CORPORATION LIMITED for the year ended 31st March, 2019 z€{@]

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COMPLIANCE CERTIFICATE

“??\\'‘‘ Z'“‹ZZ`'*'{'`_\?Q+"st{?$%"# U??€YYQ?\'"+&=\?@]$%"+ \Q?U?@XU?XX€Yq For P. K. Chopra & Co. Chartered Accountants Firm's Registration No.: 06747N

(CA. K S Ponnuswami) Place: New Delhi Partner Date: M. No. 70276

Directions u/s 143(5) of the Companies Act, 2013 (Earlier u/s 619(3) (a) of the Companies Act, 1956) for the year ended 31st March, 2019

Sr. No. Directions Auditor's Observation

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Annual Report 2018 - 2019 "! Pipavav Railway Corporation Limited

BALANCE SHEET AS AT 31ST MARCH 2019

( Amount in ` Lakhs ) Particulars Note No As at As at 31st March 2019 31st March 2018 I. ASSETS 1 Non-current assets &= Q]X~@ + %q$ !q# &Y= ?'[YX "+]<<"q! "]<q% &= '[YXX@ 5 !]+#q% $+q< &= X &=? ! "$]%+q<+ #]#"!q"+ &= _\` 7 <]$

%%# As per our Report of even date attached for and on behalf of Board of Directors for P K Chopra & Co. ? z^[ z?| q„qz @Z[*q%!* {[[_ _ _ _'*%%!<$%< _'*%<%""%% _'*%<"<#"< „qzqU@ ‘„@ *UX {q*q%%$! ?\X\ @QzQ {q*q$%"! Place : New Delhi Date : 9th May 2019

"!< Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2019

( Amount in ` Lakhs ) Particulars Note For the year ended For the year ended No 31st March 2019 31st March 2018 Revenue : I Z\@ $" $#]"%#q+" $%]"+q+! II ?@ $$ $]$

Annual Report 2018 - 2019 "!# Pipavav Railway Corporation Limited

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2019

( Amount in ` Lakhs ) Particulars For the year ended For the year ended 31st March 2019 31st March 2018 A. Cash Flow From Operating Activities $*€Z€% 9,236.11 7,777.54 Adjustments for _&X[__Y`?= "]"<"q _@ƒ #$q%$ #$q$< "!q+" "%!q ' $]$q!# "]!q#% ‰U[\Q "q%# "q$ X\Q]X~@ %q%< "q!# €U\\\Q@ %q%< ?@?'@&\= %q$" !q%! *%*% 6,886.43 7,154.12 Adjustments for: _€&'=`ZYX€ $]$q# "]$+q$ _€&'=?X "!$q$ $"%q#! _€&'=?

B. Cash Flow From Investing Activities ?\QX~@'[YX&\? !]+!+q+ "q$ ^@= zX\Q]X~@ %q% "q!# 'ZYX $]$q!# "]!q#% ?[?|‚|X "]+$q"" <]#$!q# Net Cash used in Investing Activities -5,430.09 -7,351.14

"% Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2019

( Amount in ` Lakhs ) Particulars For the year ended For the year ended 31st March 2019 31st March 2018 C. Q" &\$YXU= "!q+" "%!q ‰U[\Q "q%# "q$ Net Cash generated from Financing Activities -164.22 -104.95

*'€&_=??~X&œ|œ= +]"%q< $q" [??~X #!q+ $+q< Closing Cash & Cash Equivalents 3,607.15 96.37

Closing Cash & Cash Equivalents comprises of &=|XU?Y‚  "]!%!q# +q$# _U?[X@Q\?@?X $]%%%q%% !$q%% &=?Š %q"< %q%< Closing Cash & Cash Equivalents 3,607.15 96.37

"q `??XUz@?Y?'@?'z?XUz@ YQ?{Q\\\]@\'?@]$%"+q $q ??´?U\@[´?[\? Z\[YX[[\@q`?\]??X@q`??Y@X @?[\??XUz@\?@@'zq +q Q—[X€[@@‚?@@YXU??\?Qq

%%# As per our Report of even date attached for and on behalf of Board of Directors for P K Chopra & Co. ? z^[ z?| q„qz @Z[*q%!* {[[_ _ _ _'*%%!<$%< _'*%<%""%% _'*%<"<#"< „qzqU@ ‘„@ *UX {q*q%%$! ?\X\ @QzQ {q*q$%"! Place : New Delhi Date : 9th May 2019

Annual Report 2018 - 2019 171 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= A. Equity share capital (Amount in ` Lakhs) Balance at the beginning Changes in equity Balance at the end of the reporting period share capital during the year of the reporting period "#!%%q%% "#!%%q%%

™_[?XQ]\???X{€'z`*U‚@?\XX? "$%‚?~Q?&\\X\`"%€?=?XYQ?@Q{€'zXz@\ \`%%‚?q[XQ]?@Q?‚\\\\???X—[? @@??qX\?]?@?X@\?@Qq ?]??[?X~Q?\?@Q[?Qq B. Other Equity (Amount in ` Lakhs) Particulars Retained Earnings Other comprehensive Total Income

Balance at the beginning of the reporting period $]%%%q%% $<]"+

%%# As per our Report of even date attached for and on behalf of Board of Directors for P K Chopra & Co. ? z^[ z?| q„qz @Z[*q%!* {[[_ _ _ _'*%%!<$%< _'*%<%""%% _'*%<"<#"< „qzqU@ ‘„@ *UX {q*q%%$! ?\X\ @QzQ {q*q$%"! Place : New Delhi Date : 9th May 2019

"$ Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 3 Property, Plant and equipment ( Amount in ` Lakhs ) Particulars Plant & Furniture Vehicles Electrical Total Machinery & Fixture installation & equipment Property, Plant and equipment (1st April 2017 to 31st March 2018) Cost At 1st April 2017 19.38 9.98 83.02 4.37 116.75 q% +"q< +!q<+ _X€^@ "q%$ $%q! $"q< At 31st March 2018 23.41 9.98 94.24 4.37 132.00 Accumulated Depreciation and impairment At 1st April 2017 15.09 5.58 53.01 0.77 74.45 _?[\?Q q# %q#

3.1: `? @Q ? ? '[ z &'z= YQ ? {Q \ \\] @\'\[&Q=+"q+q$%"Uq\?'z]?@Q ?U?Q[XU?'z"%"\Q]X~@ [ƒ?X@?\'z@q @[@@?@@[]@XXYXQ]X~@ ?]^@?Y@?[q 3.2: Q]X~@X\`!q$<X‚?+"{?$%"#&`+!q#X‚?+"{? $%"<=U??\XXQYXXXYX\q`?Q[ƒ@XX\`"?q 3.3: X€\\[?QX\@?@YX?]@€X] q]U??UX€\\?@Q—XQq`?@XX@YXX\ XX\`%q%X‚?&X\`"q"X‚?=X{q@Y?X]{[[_]`%q!$X‚? @X\?q

Annual Report 2018 - 2019 "+ Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 4 Other Intangible assets ( Amount in ` Lakhs ) Particulars Freight License Others Total sharing rights fee Other Intangible assets (1st April 2017 to 31st March 2018) At Cost At 1st April 2017 34,160.10 1,000.00 21.52 35,181.62 "$q# 12.95 _X€^@ - At 31st March 2018 34,173.05 1,000.00 21.52 35,194.57 Amortization and impairment At 1st April 2017 @ƒ "<]#%q$ $!"q#" #q" 18,761.33 '@@ +

" Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U=

4.1 @ƒ?[YXX*$!_@ƒq 4.2 `?@QY@‚\@{ZYQQ[?X\\`"]%%%q%% X‚?$%?;Q$%%!q`?@Q[?[@?;Q$%%?[q_ \@@@\XU$%?[$%%#q\`"]%%%q%%X‚?{Z?Y ?U'[YXq`?Q[@&\?@\@@=~XXQ@ƒ?@\ XU?[@U?{Z\q `?\@@X~XQ[@\X\&qq`+

4.3: `? @Q ? ? ' [ z &' z= YQ ? {Q \ \\] @\'\[&Q=+"q+q$%"Uq\?'z]?@Q ?U?Q[X\[YX[ƒ?X@? \'z@U?'z"%"q Amount ( in ` Lakhs ) 5 Intangible assets under development (i.e. Project railway under development) Intangible Assets (i.e. Projects Railway) under development (1st April 2017 to 31st March 2018) |X"stX$%" 2.02 $"q! `\'[YX Balance as at 31st March 2018 23.48

Intangible assets (i.e. Projects Railway) under development (1st April 2018 to 31st March 2019) |X"stX$%"< 23.48 !]++q `\'[YX Balance as at 31st March 2019 6,359.05

5.1: '[YX_X@´XYQ?@Q?X@[ \?^XUQX\XQ?U??[\@Y?@Qq 5.2: _[[[X@[\^ZXUQ][\?U‚\@U???X ?\?@Q?Y[´'[YX?_X@´q@X \?X@[U‚]??U´'[YX_X@´?Y X?´'[YX´?U??_?'z""q

Annual Report 2018 - 2019 175 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 5.3: [YX _X@´ X ` !+q%+ ‚? YQ ? @Q [ ? Q &X Q `$"q!X‚?=U?X\?^ZXUQXq\?]`!+"q$‚?? \?XU‚?XXQYQ?@Q—XYXU? YQ?@QXQYYX?XU‚q 6 Financial Assets-Non Current Particulars As at As at 31st March 2019 31st March 2018 Other Financial Assets zQ_ $"q<+ $q+ zQ__Y\X \Y\X [@Y‚&?[@Q\@?"$@?= "$]%$q%% #]<#"q% Total 12,073.83 9,916.13

7 Deferred Tax Assets Particulars As at As at 31st March 2019 31st March 2018 {`X@&Z\*"+q!= <]$

Financial Assets - Current 9 Trade Receivables Particulars As at As at 31st March 2019 31st March 2018 ZYX[‰ $]##q#+ ]$+q$ ZYXU???[Z‚ "]<#%q$% "]<#%q$% Total Trade Receivables 4,870.13 7,127.62 \ZYXU???[Z‚&Z\ "]<#%q$% "]<#%q$% *#q$= Total 2,979.93 5,237.42

9.1: Break-up for related and other receivables Particulars As at As at 31st March 2019 31st March 2018 ZYX\@X&Z\*#q$= "]#+"q% "]#$"q$ ?YX $]#+

"! Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 9.2: `YX\@XXYX\@q?YXX\@“Zq* ?YX\@?\\?@Q?XXQ^XQU?Q? qX]?YX\@@@XQU??Q ]@@Y??Yq

10 Cash and Cash equivalents Particulars As at As at 31st March 2019 31st March 2018 &= |XU?Y‚  "]!%!q# +q$# _U?[X@Q\\?@?X $]%%%q%% !$q%% &= ?Š %q"< %q%< Total Cash and Cash Equivalent 3,607.15 96.37

11 Bank balances other than cash & cash equivalents Particulars As at As at 31st March 2019 31st March 2018 _U?[X@Q\@?+@?Y["$ "!]$#%q" "]"$q% @? Total 16,290.51 17,125.70

12 Other Current Financial Assets Particulars As at As at 31st March 2019 31st March 2018 Unsecured, Considered Good ' #q#! #q ZYX?[\?X@ @XQ +q"# %q$ ?YX q$ q Total 963.42 801.00

13 Income Tax Particulars As at As at 31st March 2019 31st March 2018 13.1 Current Tax Assets (net) '@`&'X[`_z=&\= !<#q< !%!q!< Total 689.58 606.68 13.2 Deferred Tax Deferred Tax Liabilities q_\`YX Q]X]~@'[YX $]""q$! $]!!+q!+ `X\_\`YX 2,711.26 2,663.63 |q_\` $q$% #+q< 524.20 493.85 Deferred Tax Liabilities (Net) 2,187.06 2,169.78

Annual Report 2018 - 2019 177 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= ' U? 'z "$ '@ ` YQ {Q \ \\ &{=] @ \ '] ? @Q??\‚[XX?@]U???@Q\\ YU?Q[@\?XYX?Y+"{?$%"#q `?@Q?YX[?€<%'\?'@`]"#!"\@?@‹$%"" \^ZXUQX]U????XQ\"%Qqq@‹$%$+ $q`?\]\\@Q\\U??X‚XQY[??XQ [ƒ?q Note 13.4 ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 Tax related to items recognized in OCI during the year: *&X=€[@@\YX &%q%!= "q! Income tax charged to OCI (0.06) 1.64

@-#K%€€!!%%*:ʭ€-@ March 2018 and 31st March 2019: ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 [Y\\@[ #]$+!q"" ]q €&X=Y\\@ !*€ 9,236.11 7,777.54 'Q@\$"q<<&+"{?$%"<$"q+"!=™ "]##%q$ "]!#q< `\\'X`'z &$q<= &$q$+= `\\_YX {`X@?@Q &"]+%q+!= &"]+!#q"= At effective Income tax rate of 7.12% (at March 31st 2018: 3.41%) 657.43 265.47 '@z@\` !q++#+! $!q &*\{`X@= €&=_\z@\X "q$< &q"= €&=`?@?'@ %q%! &"q!= €&=`\Q[ƒ '@?z@\ 674.77 258.32

™XQ]?@Q?YQ[{@@X`&{`=?Y‚]XX"";| \?'@`]"#!"X[\\@?YX@<%'\?'@`] "#!"q`?\]`XYX\{`qq$"q<<\?Q&Q$"q+"!=?Y‚ \[X\@\+q#\?Q&Q+q!%<=q

178 Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= Note 13.6:`?@Q?YX@[?€<%'\?'@]"#!"\^ZXUQ Xq`?Y\XYX\\Qqq@Q$%$+$q `?\]?UXYXYXQ?@Q?@X\?'@`]"#!"[ ?XQqŠU]?@QXYXQ{@@X`&{`=€"";|\?'@`] "#!"??Y\` "#!q

15 Equity Share capital ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 Authorised share capital $%]%%]%%]%%%~Qz?\`"%€? $%]%%%q%% $%]%%%q%% &+"{?$%"<$%]%%]%%]%%%~Qz?\`"%€?= Total 20,000.00 20,000.00 Issued/Subscribed and Paid up Capital "#]!%]%%]%$%~Qz?\`"%€? "#]!%%q%% "#]!%%q%% &+"{?$%"<"#]!%]%%]%$%~Qz?\`"%€?= Total 19,600.00 19,600.00

(i) %!*+!%*% 2018-19

Particulars As at 31 March 2019 As at 31 March 2018 No. of shares Amount No. of shares Amount (in lakhs) (in lakhs) (in lakhs) (in lakhs) z?[?Y[[\? "]#!%q%% "#]!%%q%% "]#!%q%% "#]!%%q%% Q Add:z?[?Q Less:z?Y[?Y‚[?Q Shares outstanding at the end of the year 1,960.00 19,600.00 1,960.00 19,600.00

Annual Report 2018 - 2019 "# Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= (ii) Details of shareholders holding in the Company Name of the shareholder As at 31 March 2019 As at 31 March 2018 No. of Shares % holding No. of Shares % holding held (in lakhs) held (in lakhs) \'&{Q\ZXUQ=] #<%q%% %q%% #<%q%% %q%% @\' ^@&= !%q%% +

(iii) Terms/Rights attached to Equity Shares `?@Q?XQX\~Q??[X\`"%€?‚[XX[[? q '?\X~\?@Q]??X\~Q?UXXYX@[\? @Q\Y[XX\X@q`?YUXXY?@Y\~Q??X YQ???Xq (iv) #+!!!%%**!!% preceding the reporting date: Particulars As at As at As at As at As at 31 March 2019 31 March 2018 31 March 2017 31 March 2016 31 March 2015 ~Q?Y&q X‚?= Total

"<% Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 16 Other Equity ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 (a) Retained Earnings [Z[ 28,138.00 20,626.48 Add/(Less): @X`'@\'z"" - - Add:[?Q <]!"q+# ]"q< Add/(Less): `\\@?@?'@ €&=@@\@XQ@YYX[&\= %q$% &!q%!= Less'@_[?Q &#<%q%%= Less__Y` &$%"q= Total (a) 35,518.15 28,138.00 (b) Depreciation Reserve Fund* [|X $]%%%q%% $]%%%q%% `\\@X@\X Total (b) $]%%%q%% $]%%%q%% %;”* 37,518.15 30,138.00 *_ZXX\X@\^?\XX\q

Particulars As at As at 31st March 2019 31st March 2018 Cash dividend on Equity shares declared and paid '@_[?‹&`%q%~Qz?= #<%q%% &Q{?+"$%"<*X= __Y`Y $%"q 1,181.44 - X_~Qz? *X *X

17 Long Term Provisions ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 Provision for Resurfacing obligation (Refer Note 17.1) +]$!"q$+ $]+!"q" $%* Q&= $!q! +q+% ""$q% #

Annual Report 2018 - 2019 181 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= Note 17.1: ' @ \ [@] ? YX[ ? @Q ‚ ? ^ U‚[ ]X[@‚[X@]XUYQ{Z]\XX^U?XX\[ ?q[XQ]@Q?@XYXQ\`"]""q%X‚?\X@YX[ U??UXY[[?@[]~@\_?'z""q| @XYXQ]QXQ\`+q$X‚??Y@‡Z\$+&=ˆq

' \ ` "!q+% X‚? ? Y [ ? Q & Q ` "%!q+ X‚?= [ƒ ? \[X&Z\$=q+"{?]$%"#]?\Z\[X? @X\` +$+q"X‚?&Q`"q<X‚?=[?@X\@Qq 18 Financial Liability- Current 18.1 Trade Payables ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 18.1.1: `X[\@@XX Total - -

18.1.2: ??@@XX {QYX&Z\*"

Note 18.1.3:`?@QYXz@XXzX'X‚[U?@?@QUQ@[ \@?+%Q`*X&‹`*X=q`?@Q?Q@@@&~Y XYQ?XU???Q?{]z@XX{@_X@]$%%!= X@[?@]@XX@@q~XQ]?@€QYX? [?Q`*X&‹`*X=q

Note 18.1.4:{QYXX`$%+$q<<X‚?&Q`<#q%"X‚?=U?{ and `<%q<%X‚?&Q`#$#q!%X‚?=\U‚YQZXUQZq Note 18.1.5:`QYXY[@XXQX+%#%Q@]? QYXXq 18.2 !%%*% ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 QYX™ <#q %q<+ zQ $q< $q< Total 852.33 53.61 ™  QYX X ` <""q" X‚? & ‹ *X= @ \ ?  XU‚Y[ZX]U??YU?Qq

"<$ Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 19 Other Current Liability ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 zQ "!q<" "$q% q! q$% *zQYX $q+" $q"+ z'QYX %q%" Total 23.77 18.38

20 Provisions ( Amount in ` Lakhs ) Particulars As at As at 31st March 2019 31st March 2018 (Short Term Provisions) \@XQY &Z\*"= $q+ $q$ Total 2.53 2.27

21 Contract Revenue from operations ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 ['@\@|X‚`\ ]!+$q#" ]+$q$! ['@\@`\ "]"+$q" "]

Note 21.1: Z\@?YXXYQ?@Q?\‚[?@\ Y?XXX\@“ZXUQ&\+#=q Note 21.2: `?@Q?[ƒ\`!+q$X‚?[?Q&Q`+q"‚? X‚?=\?YQ?@QX@€[[&X[X\Z X=??[YX&qq^='z""q`?@Q?X[ƒ zYQ@@‡Z\*$+&=ˆq

Annual Report 2018 - 2019 "<+ Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 22 Other Income ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 '_ $]$q!# "]!q#% ‰U[\Q "q%# "q$ X\ %q%< "q!# {XX'@ %q%$ %q" Total 2,258.88 1,648.25

23 Operating and Other Expenses

( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 ;€&Z\+<= ;"€Q {U ]%"+q+< +]!$q< {X

"< Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 `XX[Q? $q%# $

24 %8€;^@ ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 zX]“[| +!q+" +"

25 Finance costs ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 'Y‚?[ %q%" %q% ‰U[\\[YX[&\"q"= "!q+% "%!q+ Total 165.31 106.47

Annual Report 2018 - 2019 185 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 26 Depreciation and amortization ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 _Q]X~@ "+q< "+q!+ @ƒ\'[YX #""q #"%q! Total 925.02 924.28

27 Corporate Social Responsibility (CSR) Expenses ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 \@@Q +

Note 27.1: "+\?@]$%"+]@Q]@[?XYXQ??X] X $ \ [ @ [ ? ? @@XQ [ X Q zX ZYXQ &zZ= q[XQ] ? @Q ? zZ ? Y [ zZ ]U??z?X‘''\?@]$%"+q

28 Components of Other Comprehensive Income (OCI) [Refer to Note 41.5] ( Amount in ` Lakhs ) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 &‘`'Z= Z@@\_YX QX€&= %q$! &q%= Total 0.26 (7.70)

29 Earnings per share (EPS) Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 (` Per Share) (` Per Share) Basic EPS @[ q+ +q< Diluted EPS @[ q+ +q<

"

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 29.1 Basic Earning per Share |z@XXYQ[?\?QYYX~Q?X\?@QYQ U[?[@Y\~Q?[[?Qq`?[U[?[@Y\ ~Q?XX\Y[? Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 (` Per Share) (` Per Share) YYX~Q?X\?@Q&`‚?= <]!"q+# ]"q< [XX\|[z?(` in Lakhs) 8,561.39 7,517.58 “[?[@Y&‚?=\?\?\Y[ 1,960.00 1,960.00 ?

29.2 Diluted Earning per Share Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 (` Per Share) (` Per Share) `?[U[?[@Y\~Q?XX \X[? YYX~Q?X\?@Q (` in Lakhs) <]!"q+# ]"q< [XX\X[z?\@[ 8,561.39 7,517.58 (` in Lakhs) `?U[?@Y\~Q?\?\X[?X?U[?[ @Y\~Q?XX\Y[?\XXU Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 (` Per Share) (` Per Share) “[?[@Y(no. in Lakhs) \~Q?XX "]#!%q%% "]#!%q%% \Y[? \\\X z? “[?[@Y (no. in Lakhs) \~Q?XX "]#!%q%% "]#!%q%% \X[? `?X@[z?&Y?|_X= ?[[@X@\'z""q 30 Capital management `?@Q—Y^@[X@\[?YXQ[[ ??@Q@@@??XY?‚?Xq ?]?@Q@[X@‚^@X[?\?[@? ~@\?Xq`?@Q?QXYXQUYU[+"{?$%"# +"{?$%"<q`?@Q@[U‚[X~@?[?XXq *?[U@?Y^]X\@[[X[?Q+"{?$%"#q

Annual Report 2018 - 2019 187 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 31 Fair Value measurements &= `?Q[X\X'@YQ[\XXU (Amount in ` Lakhs) Particulars As at 31st March 2019 As at 31st March 2018 FVTPL FVTOCI Amortised FVTPL FVTOCI Amortised Cost Cost Financial Assets &= `ZYX $]##q#+ ]$+q$ &= ??~X +]!%q" #!q+ &=|‚YX&X[XX=&?? $<]+$q" $]%"q% ??~X= &=zQ_* $"q<+ $q+ &=?X #!+q$ <%"q%% Total Financial Assets - - 35,914.84 - - 33,176.62 Financial Liabilities &=`QYX $]<+q!< "]<$q!" &=QYX <#q %q<+ &=zQ_ $q< $q< Total Financial Liabilities - - 3,726.01 - - 1,878.22 &= @ YQ X \ ? Q[ @ \ X \ ? @Q— X @ ? ? ? U?Q[@?YX@\\X\X\XXX @[@?Q[Xq (iii) Financial risk management `?@QXXXYX@\?QYXq`?@\?X XYX ? @Q [ q `? @Q XXX?YX]U?Y‚??~X? XQ\@q `?@Q@‚‚]‚X~Q‚q`?@Q—X‚[ YQX?X‚]@@[U? ?@X‚Y^q`?|\U[X\@[[?\ ?‚]U??@@ƒYXU a) Market Risk {‚‚?‚??\X\\?U\X@UXXY\?[ @‚q{‚‚@\'‚]Q‚?‚qX@ \\YQ@‚‚X?X@q b) Interest Rate Risk '‚?‚??\X\\?U\X@UXXY\ ?[@‚q`?@Q‚q c) Credit risk ‚?‚\XX?@Q\@QX@\X@ XYX[]XXQ\@?@QYX\@@q`?@Q ‚\@[&@XQYX=\@XX[ U?Y‚?X@q

188 Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= `ZYX @‚@[YQ?@Q—YX?XQ]XX[@ ‚ @[@q [ @ YX [XXQ @ @@ XQ \@?[XY\@^@q`?@Q?XQXXX Qq X@? ‚\@YXU?Y‚X@[U??@Q—XQq '@\X@XQU?Q?Y\?X~\@? Qq d) Liquidity risk `?X@YXQ\X~Q‚@[@U??|\_q`?@Q@[ @[~Y‚[\XYQXQ@[\X?UYQ@?[ ?@\XXYXq 32 Key sources of estimation uncertainty `?\XXU[?‚Q@[?\?‚Q\@Q?\? [?@Q?[‚\[@X^@?Q[@\XYX U?XQq a) useful lives of Intangibles Y$q!q"]?@Q?@?\XX\\[YX&qq[??[[? z [@= ++ Q &@ \ [@= \ @ƒ \ [YX q `??[@\[@@Q?X@?@ƒY~ XQq b) Fair valuation measurement and valuation process `? \ X \ X X XYX @ [ ? X ?~ X[ ? _ ? XU @Xq`? ? @? ‚ \@ YYX @‚] U? YXq ' ] U? ? \YX] [ \ ^[@ ~ YX?[ \ Xq ;[@ X \?X~Q‚]‚XXQq?[@Y?\ X\\?\X\X@q c) Taxes _\?{@@X`&{`=[ƒ??YYX? YXUXXYXYX[U??&=YXƒqz[@[@^[@ ~@?@\\?Y[ƒ]Y?X‚XQ@[XX\ \YX[?U?\X[[q $* @XQ Y YX[ X[ [Q X ?@ @ [ X Xq XXX@‚[@?@Q\\\@XX@?\q`? @X?@\?]\XQ@XQq_@X X ? X X[ @ ] Y YX[ ?[?XQ ?[ ? @qXX@U?[q e) Useful life of property, plant and equipment ‰\XX\\QX~@Y@Y\\X[?\\\YX]@] @]X@\?@\XX\@ ~Y?\?U\@?q`?@QU?\XX\\Q]X ~@?[q

Annual Report 2018 - 2019 "<# Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= f) Provision for Resurfacing obligation '@\[@]?YX[?@Q‚?^U‚[] X[@‚[X@]XU\{Z]\XX^U?XX[ ?q[XQ]?@Q?@XYXQ\X@YX[?UX Y[[?@[~@\_?'z""q`?@Q ??@\[YX[U??XQ[\X[?\\ \[]]YX]@]X@\?@\XX\ @~Y?\?U\@?q`?@Q@ U?X\?[YXYX\@?[q

33 Construction Contracts '@\?X~'z""?@]$%"+YQ{Q\\\] @\']?@?X@?YX?\XXU Particulars For the Year For the Year Ended Ended 31st March 2019 31st March 2018 [ƒ(in ` Lakhs) !]+q$ +q" [[[@\[ƒ€(in ` Lakhs) 6,344.25 34.41

34 Contractual Commitments `?@\X@@@X^[ƒ[YXq (In ` Lakhs) Particulars As at As at 31st March 2019 31st March 2018 `?@\U‚YX\&\= $$]!+"q#! $<]#q$+ ‡Z\*+!&=ˆ Total 22,631.96 28,947.23

35 Related Party Disclosures 35.1 Related Parties held equity of the Company Name Relationship As at 31 March, 2019 As at 31 March, 2018 Number of % holding in Number of % holding in shares held that class of shares held that class of shares shares ^@&= ^ !]%%%]%%% +

"#% Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 35.2 Key Managerial personnel of the entity Name Position {q@Y?X {[[_™ {q?‚„@ {[™™ {qz^[ {[[_™™™ {q*UX @QzQ {q‘„@ ?\X\ ™`?@\{q@Y?X{[[_+%?;XQ$%"

35.3 z%$%*%€! ZXUQ@@XQ—Q`q 35.4 Transaction with Related Parties: (Amount in ` Lakhs) Particulars Transactions Outstanding Amount Year Ended Year Ended Year Ended Year Ended March 31,2019 March 31,2018 March 31,2019 March 31,2018 Compensation to Key Managerial person $#q! q$% -- (Also refer to Note 35.5 ) {q@Y?X]{[[_&"qq$%"< !q$# - - - +%qq$%"<= {qz^[]{[[_&!q$q$%"# +"q+q$%"#= {q?‚„@]{[&$q"q$%"# "q"+ q$q$%"#=™™™™ {q*UX]@QzQ +"q+# $q#< -- {q‘„@]?\X\ +"q< $q$! -- Total 100.15 94.44 - - ™™™™`X@X@{q?‚„@ [?Q@`+!q%<‚? Sitting fees paid to Non-executive Directors {q*?z]'_ $q+ -- {q‘„@ZQ]'_ $q% _qZYQ‚]'_ $q" -- {qZ^„@X]'_ $q" -- Total - 9.43 - - Gujarat Pipavav Port Limited {U?[ "q"# +"q% ~Qz?X&!%X‚??\`"% !%%q%% !%%q%% ?€= `YX "#+"q% "#$"q$ \ZYX "<#%q$% "<#%q$% Pipavav Railway Corporation Limited Employees' Group Gratuity Trust. Y@ "#q+$ q!$ ? %q"$ %q"$ Total 19.44 5.74 - -

Annual Report 2018 - 2019 "#" Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 35.5 Qz%$Q;%!$%8 (Amount in ` Lakhs) Particulars 2018-19 2017-18 z?`@@XQ| #$q!" #q @XQ@|&XX= #q+ "q!< ?[@Y `@|&{q@Y?X@X\?= q z?YQ@ Total 149.88 136.12 36 Capital Commitment and Contingent Liabilities &=X@@@&\]\Q=YQ?@Q+" st{?$%"#U`$$]!+"q#!X‚?&Q ` $<]#q$+‚?=qX@@@+"q+q$%"#X@\ZXXU‚ Z&YQY‚YQ?@Q+"q+q$%"#=q`?X@[YQ?[Q \?U‚`$<]#q$+‚?]U???@Qq`?@Q@[?\[?^\@ U\[q (ii) Claims against the Company not acknowledged as debts: q`?@Qz?U*[XQ$%"""$\@?\\_X\ [`"U?""&$=\?[`&_X@Z[X=]"##$] \\XXX@\YX[\X?@Q?[QZ' `Z*zZ` zZ‘'q`? @Q ? X X \ @ \ Y\ _`q [??YQ_`]?XYXQ?\Q]YX?Y \q Yq `? @Q ? \XXU[ z?U * &z*= \@  ? ? @ \ XYXQ\?@Q\\[?[YQ?@Q\@ ZXUQ

Period of the Show Amount of tax involved Forum where Dispute is pending Cause Notices X$%%#{?$%" `]!+#q<X‚?X X@@\z`]*U_X? X X$%"{?$%" `$]<%%q"X‚?X X@@\z`]*U_X? X X$%";$%" `]"

"#$ Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= z`YX[?@Q?[\?\[?YQZXUQU??@Q X[\?[\?XX\?@q{Q\ZXUQ?X‚?U? {Q\[X€@q q `?@QU[XQ$%"""$]XYQ@XQ@z?zqzq*[ @[ ? \ \\X Q œ _ &qq `"]%"€ @?= ? [ XXU€?YX[\\?Q\?\@?\?^[\[[ ?@X[U?"<qqU`]%%%€U\X[q`?@XQ ^?@QYY\@{Z!th;Q$%"%+%thX]$%"$q`? UXX\[X?[YQ_X?Š[?q`?@Q?Q? @][??]?XYXQ?\Q]?Y\q 37 Obligations under Operating lease `?@Q?\XXU[[X -x#@<*!% `?@Q?‚\XQ@\@?XQX\`q"X‚?X]\X X‚\?&+=QU??U+%thX$%"

Amount in ` Lakhs Particulars As on As on 31st March 2019 31st March 2018 QYXU?"Q $!!q! $!!q" QYXYU"Q "]%!$q!" "]"+"q< QYXYQQ "]<$q$$ $]%$"q 38 Operating and Maintenance Cost (O&M Cost) 38.1 Fixed Cost (Material) &= `?&{X=]@\{]UYQ?;zQ`@][ Y?\@Z“ZXUQ&“Z=][?XQ$%""!\\Qq'@\ ?]?X\XQ‹$%""U?U`$!q

Annual Report 2018 - 2019 "#+ Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= &= Cost of additional works: 'Y&{X=]?@QX?\U‚€ ]U??ZXUQQZY~@q`?@Q?Y‚ \`$q$%‚?[?Q&Q`!q+!‚?=\?U‚€ ?\@€\@ZXUQq`?X@\??U‚€ YYQ“Zq[XQ]Q^@\?U‚€UXXY@ \X&=\@“Z\?XXQ?U‚€q`?@Q??U ??U‚€\XU‚‡Z\*$+&=&=ˆq `?@QXX@\`#+q+‚?&X[=;XQ$%"!X@ \\\`""#q%X‚?_@Y$%"U??@Q\@[\\ ?^]YQZ;$%"q`? U‚U?[\?XU‚?XQ&=q`?X@YXYQ? '@Qq[?X@\X@YQ'@Q]^@?Y@Y‚ [?Q\?@q 38.2 Fixed Cost (Staff) `?@Q?Y‚?&z\\=YXX\@“Zq`?YXX?[QUX\ @UXQYQ“ZZ‡Z\*$+&=&=ˆq 38.3 Variable Costs `?@Q?Y‚?‘YXYXX\@“Zq'\?YXX\‘YX]“Z ?X[&q[q`„{]U[?q=XU??X[ @\@\‘YXq _[XQ]“Z?\?YXX\@?{?$%"#XY[?@ \\@?q`?@Q?Y‚?YX\?@?\@[?@YQ XQ[XXYXU??[@XYQ\@?q`??U]Y^^@ ?@\\?XYXX\\@“Zq 39 Revenue Recognition and Reconciliation 'ZXUQXX?\[?\\[??^ZXUQq‰?@\? {[@]“ZXUQ&“Z=?@\?^ZXUQ @?\\[?[\@\[??^ZXUQq|?]“Z @‚@\?\[?[@?XQYQ?@Q?\\[?[ \?^ZXUQ?XYQ?\[?['ZXUQX\ X^@q`?@QX@\\[?@@?Y\XUQ \@[?['\@zQ@@YQ\ZXUQ'\@zQ@&Z'z=\'ZXUQq `?@Q[?\\[?[Z\@?Y\@ YQq`?XYQ?@QU?“Z?\\YX^? Y‚\?\@X\Xq`?X\@Q?\\[?[ U?“Z\Qq _[?XQ]ZXUQ?@‚@\\[?[ZY?Q@ [XX\\[?[qZXUQ@‚@\\[?[Z?Y\ XYQ\[??Y\Y‚&qq\U??\[??[ YQ'ZXUQ=q`?XYQ\[?\\\@?Y‚U?ZXUQ? \[??[?~@q`?@Q?Y‚?\\[?[ Y\‚[?@\@[`"]+$%q+X‚?&=& Q`"]%<q+"X‚?=q~XQ]?\[?[?@U?q ?]“Z??@QX@\X\[?[\`%q++‚?`

"# Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= `?@Q?Y[\€Y[@YQZXUQU??[\?\[? X[&=??Y‚q +#q"`?@Q?U?“Z@\\[?[XXQq[qUU [\\\?[\YQ“Z\[@Q?\\[?]Q@\@X ?[\[\@]Q\@?[?[?q“Z? ?U\?@Q@X?Qq`?\]?@[X? Y[ƒYQ?@QU?'z""Z\@U?@qŠU]? \?Y~Q?YX\\Q\@?[?[? \[?q +#q$`?\?\XX[\``\[@ @[]Z“Z\Y\?XYQ?@Qq_[?Q]? ?\XX\[?\]\\[?\XX??@Q [?Qq +#q+`?\XXU[[\?@QYX\@\\[?\XX@] q] `\ ` [@] z??X [@] ZX z[ [@] XYQq@@\YQ|\_&|_=\@X@\? Y@X

Sr. No. Particulars of Dues Amount in ` Lakhs A Recognized in books 1 X\[?\XX@&\\[\ "]"q! \= $ X\[?\XX@&\\?[YX= +"q< + '\[?\XX@\‹$%%<%#$%%#"% +!"q%% ?@XX +q Subtotal (A) 1,890.19 B Un-recognized in books 5 '\[?\XX@&XX+"q+q$%%<\[ $]#++q" ?\XX@\‹$%%+%$%%%<= ! ?'&"qq$%"%\[?\XX@\‹$%%+% "]"$#q"< $%%%<\@X@\`"]q#+X‚?@@= 7 'XQ~QY&Z\@X@\` %%q#+X‚? <q @@@@= 8 ?@XX $q Subtotal (B) 4,573.18 Total dues unresolved by GPPL as on 31.3.2019 6,463.37 |?@@\?@zX@@@]?|\_?@[$+;Q $%"?@UX[YXU q `\[?\XX@\&qq`"]"q!X‚?zqq"Y=?&qq`$qX‚? zqq<Y=?XXYXƒ\;[YQXX?[\?``\ [@q Yq |\_?X?X\[?\XX@&qq`+"q<X‚?zqq$Y= ?XXYQYXYQ\Xƒ\YX?\YXXX[U?“Zq

Annual Report 2018 - 2019 "# Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= q |\_?@@\?@zX@@@\U\\ [?\XX@&qq`$]#++q"X‚?`"]"$#q"<X‚?@zqq!YXQ= @‚{Z?[q q | \ _ \? ? @ \ U \ XQ Q@ \ \ [ ?\XX @&qq`+!"q%%X‚?@zqq+Y=XY\{Zq q 'XQ~QY@[` #+q+!X‚??XXYYQq\?@]`

^@#@Q%!*% (Amount in ` Lakhs) Particulars 2018-19 2017-18 Gratuity Earned Sick Gratuity Earned Sick Leave Leave Leave Leave X\YX[?Y[[\? #q+$ %q +%q< !%q+$ %q $$q+% ‹ ' !q"$ q+ $q+ q" +q< "q! z

"#! Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= ^@#>Q"%!$% (Amount in ` Lakhs) Particulars 2018-19 2017-18 Earned Sick Earned Sick Gratuity Gratuity Leave Leave Leave Leave X\X?Y[[\?Q q%$ +!q$+ X q! +q$ @XQ—Y "#q+$ q!$ {[@?[ &%q!%= &%q+$= | &%q!= X\X?\?Q !q" q%$

^@#^ !8%6 (Amount in ` Lakhs) Particulars 2018-19 2017-18 Earned Sick Earned Sick Gratuity Gratuity Leave Leave Leave Leave @‘X\YX[? #+q< <%q+ +q$+ #q+$ %q +%q< \?Q X\X?\?Q !q" q%$ * € &* YXQ= [ƒ |X &$!q!= &<%q+= &+q$+= &+q+%= &%q= &+%q<= z?

^@#K€!6$< (Amount in ` Lakhs) Particulars 2018-19 2017-18 Earned Sick Earned Sick Gratuity Gratuity Leave Leave Leave Leave z

^@#/€!Q:e (Amount in ` Lakhs) Particulars 2018-19 2017-18 Earned Sick Earned Sick Gratuity Gratuity Leave Leave Leave Leave * @X [ƒ X [€ &X= [ X[€&X=\?Q| &%q"= &q#"= X[€&X=\?Q? %q! %q$" X[€&X=[[?Q %q$! &q%=

Annual Report 2018 - 2019 "# Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 41.8 Principal actuarial assumption at the Balance Sheet Date Particulars 2018-19 2017-18 Earned Sick Earned Sick Gratuity Gratuity Leave Leave Leave Leave _Z q!! q!! q!! q" q" q" Z\X q# % % q % % \zXQ' < < < < < < Method used ^

41.10 !%**%%% (Amount in ` Lakhs) Period Effect on Gratuity Effect on Earned Leave Effect on Sick Leave obligation X$%"#{?$%$% "q+ "q#< %q X$%$%{?$%$" "q! "q %q!! X$%$"{?$%$$ q

(Amount in ` Lakhs) Particulars Change in Effect on Gratuity Effect on Effect on Sick assumptions obligation Earned Leave Leave obligations Obligations _Z œ%q% &!q%$= &q<"= &$q++= %q% !q

"#< Annual Report 2018 - 2019 Pipavav Railway Corporation Limited

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 MARCH 2019 &XX@Z{XX]X?U= 42 '?\@[@]\?Y@\XX€QYX@\? {[@\?q 43 Impairment of Assets `? @[@ ? U @@ \ XX ? \ ? @Q X[ [YX U?'z+!'@@\q?Y\U]?@[@\???@ \@\Q]X]~@[YX]U??\]@@\Q ?Y@?|Xz?q ŠU]\X\\`"]%%%q%%X‚?{Z\Y[X?]?@@ X~X?Q[@\?X\UXQY‚?[z@\ ?XQq`?@Q?U?@@[\X\ \?^@\@@?Y@\X\[?QqŠU] ???\??@@X~Y[@\@\ ?@Q\@?\X]?@@X?XXY][XQY?Y \@?@?Q[@\?X\UXXY?q 44 '?\|\_]XXƒ\X[?@Q\ YUXXYX??@U???Q?|Xz?q 45 Auditors remuneration (Amount in ` Lakhs)

Sl. No. Particulars 2018-19 2017-18 Auditors’ Remuneration 1 zQ q%% q%% $ ` %q %q + `‡X[\\X\\XQ&=ˆ "q% "q"# \‚ %q% %q"< 46 `?@Q?XQYX[@ƒq\\[?\q`?\]~@\[@[ XYXq

As per our Report of even date attached for P K Chopra & Co. for and on behalf of Board of Directors ? @Z[*q%!* z^[ z?| q„qz „qzqU@ {[[_ _ _ _'*%%!<$%< _'*%<%""%% _'*%<"<#"< {q*q%%$!

‘„@ *UX PlaceNew Delhi ?\X\ @QzQ Date: 9th May 2019 {q*q$%"!

Annual Report 2018 - 2019 "## Gujarat Pipavav Port Limited

(CIN: L63010GJ1992PLC018106) Pipavav Port At Post Rampara-2 via Rajula Dist. Amreli- 365 560 % 02794 302400 "€ 02794 302413 % [email protected] q* www.pipavav.com ATTENDANCE SLIP 27thAnnual General Meeting Thursday 8th!!>?@‚>??$##

#"%#}'$:'ZQ%:'

#+!6%

Name of the Shareholder

Name of the Proxy

I/We hereby record my/ our presence at the 27th Annual General Meeting of the Members of the Company held on Thursday 8th August 2019 at 2:00 PM at Pipavav Port, At Post Rampara-2 via Rajula, District Amreli- 365 560.

SIGNATURE OF THE MEMBER OR THE PROXY ATTENDING THE MEETING

------If Member, please sign here If Proxy, please sign here

Note: This form should be signed and handed over at the Meeting venue

*Applicable for Members holding shares in electronic mode

200 Annual Report 2018 - 2019 Gujarat Pipavav Port Limited Pipavav Port At Post Rampara-2 via Rajula Dist. Amreli- 365 560

"#@@ Proxy Form [Pursuant to section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014] CIN : L63010GJ1992PLC018106 Name of the Company : Gujarat Pipavav Port Limited Z[\ Z@$Z^X_q@X+!!%

Name of the Member (s) :

Registered Address :

Email ID :

Folio No./ DP ID & Client ID :

I/We, being the Member(s) of ……………………………. shares of the above named company, hereby appoint 1. Name:

Address:

Email Id:

Signature: ………………………………………………, or failing him

2. Name:

Address:

Email Id:

Signature: ………………………………………………, or failing him

3. Name:

Address:

Email Id:

Signature: ………………………………………………, or failing him

Annual Report 2018 - 2019 201 as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 27thAnnual General Meeting of the Company, to be held on Thursday 8thAugust 2019 at 2:00 P.M. at Pipavav Port At Post Rampara-2 via Rajula Dist. Amreli- 365 560 and at any adjournment thereof, in respect of such resolutions as are indicated below :

Resolution No $!%

Ordinary Business

1 To receive, consider and adopt: a. ?zXXz@\?@Q\?XQ+"{?]$%"#] along with the Reports of the Board of Directors and Auditors thereon; and b. ?XXz@\?@Q\?XQ+"{?]$%"# along with the Report of Auditors thereon.

2 `XX\Zq"q<%~Q?@?@\Zq"q%~Q ?XQ[?Q]\?XQ+"{?]$%"#q

3 To appoint a Director in place of Mr. Julian Bevis (DIN:00146000), who retires by rotation and being eligible, offers himself for re-appointment

X\ Signed this…………………. day of…………………………….. 2019 Re. 1/- Stamps and sign across

Signature of Shareholder

Signature of Proxy holder(s)

€*!%*!%% Q=%^ !*#

202 Annual Report 2018 - 2019 

Annual Report 2018 - 2019 

Annual Report 2018 - 2019