Kolkata Airport

Highlights
Highlights: 2016-17

Inauguration of New Integrated Terminal Building at Vadodara Airport on October 22, 2016
by Shri Narendra Modi, Hon'ble Prime Minister of India

Inauguration of New Terminal Building at Bathinda Airport on December 11, 2016

by Shri P. Ashok Gajapathi Raju, Union Minister of Civil Aviation
s: 2016-17

Inauguration of New State-of-the-art Terminal Building at Vijayawada Airport on January 12, 2017
by Shri Nara Chandrababu Naidu, Chief Minister of Andhra Pradesh

Inauguration of AAI's subsidiary - 'AAI Cargo Logistics & Allied Services Company Limited
(AAICLAS)' at New Delhi by Shri P. Ashok Gajapathi Raju, Union Minister of Civil Aviation
Highlights:
Highlights: 2016-17 2016-17

Launch of Airports India Business Magazine at New Delhi AAI co-sponsored 14th Mass Run event on the occasion
on February 16, 2016 by Shri P. Ashok Gajapathi Raju, of ‘International Day Against Drug Abuse’ on June 26,
Union Minister of Civil Aviation 2016 at New Delhi

Observance of Rashtriya Ekta Diwas and Vigilance Celebration of 21st AAI Annual Day at Siri Fort Auditorium,
Awareness Week-2016 on October 31, 2016 New Delhi on April 1, 2016
at AAI, CHQ

AAI celebrating Swachh Bharat Pakhwara 2016-17 under AAI’s team bagged all three women titles at the All
Swachh Bharat Mission (SBM) at AAI, CHQ from October India Inter Zonal Table Tennis Tournament held at
01 to 15, 2016 Allahabad from August 31 to September 2, 2016
7

CONTENTS
Mission and Vision 6
About AAI 7
General Information 8
Brief Profile of Board Members 9
Chairman's Message 12
Members' Report 14
Corporate Governance Report 29
Management Discussion & Analysis (MD&A) 32
CSR & Sustainability Report 48
Performance at a Glance 62
Financial Statements 64
Audit Report of C&AG 94
Financial Statements of Chandigarh International 101
Airport Limited

Udaipur Airport
 Mission
"TO BE THE FOUNDATION
of an enduring Indian
aviation network, providing
high quality, safe and
customer-oriented airport
and air navigation services
thereby acting as a catalyst
for economic growth in the
areas we serve."
6
Vision
AAI's vision till 2026 is :
To be the principal aviation services
provider in the Country, AAI shall
• Adopt and facilitate the use of
contemporary air navigation services;
• Upgrade and develop airport
infrastructure;
• Support improving air connectivity at
unserved and under-served airports;
• Have a restructured organisation;
• Focus on profitable operation at major
airports through continuing efforts on
cost reduction and enhancing
non-aeronautical revenue.
 About AAI
Airports Authority of India (AAI) came into existence on 1st April 1995. AAI has been constituted as a
Statutory Authority under the Airports Authority of India Act, 1994. It has been created by merging the
erstwhile International Airports Authority of India and National Airports Authority with a view to
accelerate the integrated development, expansion and modernization of the air traffic services,
passenger terminals, operational areas and cargo facilities at the airports in the country.
The main functions of the Authority are as under:-
• Control and management of the Indian air space (excluding special user air space) extending beyond
the territorial limits of the country as accepted by ICAO.
• Provision of Communication, Navigational and Surveillance Aids.
• Expansion and strengthening of operational areas viz. Runways, Aprons, Taxiways, etc. and
provision of ground based landing and movement control aids for aircrafts & vehicular traffic in
operational area.
• Design, development, operation and maintenance of passenger terminals.
• Development and management of cargo terminals at international and domestic airports.
• Provision of passenger facilities and information systems in the passenger terminals.

126
Airports  21 International
Airports 78 Domestic
Airports 08 Customs
Airports 19 Civil Enclaves at
Defence Airfields

Kolkata Airport

7
22 nd
Annual Report 2016-17

General Information
Board Members as on March 31, 2017
Dr. Guruprasad Mohapatra, IAS Chairman

Shri B.S. Bhullar, IAS Non-official Member (Government Nominee)

Director General of Civil Aviation

Shri Arun Kumar, IAS Non-official Member (Government Nominee)

Jt. Secy., Ministry of Civil Aviation

Ms. Gargi Kaul, IA&AS Non-official Member (Government Nominee)

Jt. Secy. & Fin. Advisor, Ministry of Civil Aviation

Shri Sudhir Raheja Member (Planning)

Shri S. Suresh Member (Finance)

Shri Anuj Aggarwal Member (Human Resources)

Shri A.K. Dutta Member (Air Navigation Services)

Shri I.N. Murthy Member (Operations)

Air Chief Marshal (Retd.) Fali Homi Major Non-official Member (Independent)

Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) Non-official Member (Independent)

Shri Rajesh Bhandari

Executive Director, Finance

Ms. R. Tulasi Mahalakshmi

Company Secretary

Website: https://www.aai.aero/

CORPORATE HEADQUARTERS
Airports Authority of India, Rajiv Gandhi Bhawan, Safdarjung Airport
New Delhi – 110003, Ph: +91-11-24632950, Fax: +91-11-24632990

REGIONAL HEADQUARTERS
Northern Region Eastern Region Western Region Southern Region North-east Region
Regional Executive Director Regional Executive Director Regional Executive Director Regional Executive Director Regional Executive Director
Airports Authority of India Airports Authority of India Airports Authority of India Airports Authority of India Airports Authority of India
Operational Offices NSCBI Airport, Porta Cabins, ATS Complex, LGB International Airport
Complex Rangpuri, Kolkata - 700 052 New Airport Colony, Chennai Airport Guwahati - 781 015
IGI Airport, Tel: 033 - 2511 9616/ Opposite Hanuman Road, Chennai- 600 027 Tel: 0361 - 2840223
New Delhi - 110 037 25119944, Vile Parle East Tel: 044 - 22561234/ Fax: 0361 - 2840042
Tel: 011 - 25652343/ Fax: 033 - 2511 8873 Mumbai - 400099. 22561515 E-mail: redner@aai.aero
25654212 E-mail: reder@aai.aero Tel: 022 - 28300606 Fax: 044 - 22561010
Fax: 011 - 25656451 Fax: 022 - 28300606 E-Mail: redsr@aai.aero
E-mail : red_nr@aai.aero E-mail: redwr@aai.aero

8
 BRIEF PROFILE OF BOARD MEMBERS
CHAIRMAN
Dr. Guruprasad Mohapatra, a 1986 batch IAS Officer from Gujarat Cadre is also
an alumni of Jawaharlal Nehru University (JNU), who completed his Post
Graduation in Political Science and M. Phil in International Relations from the same
University and earned his Ph.D from M S University, Baroda. He is an MBA from
Faculty of Economics, University of Slovenia.
With an experience of over 30 years in various departments of State and Central
Government, he has served in several positions in various sectors including Urban
Development, Power and other industries.
Dr. Mohapatra had a long stint in the power sector, where he was involved in
comprehensive reforms in the power sector and restructuring of the erstwhile
Gujarat Electricity Board (GEB) into several commercial entities. He also has an
enriching and varied experience in the chemicals and fertilizer sector, as he has
worked as the Managing Director of Gujarat Alkalies and Chemicals Ltd. (GACL) and
Managing Director of Gujarat Narmada Valley Fertilizers Company Limited (GNFCL).
An avid proponent of creating infrastructure well ahead of demand, Dr. Mohapatra
has held various responsibilities with the Government. He worked as a Municipal
Dr. Guruprasad Mohapatra, IAS Commissioner of Surat, Gujarat. Under his leadership, the process of converting
Surat into one of the models of urban governance with its thrust on Solid Waste
Management, quality infrastructure and sound financial management were completed.
He also held the position of Municipal Commissioner of Ahmedabad city for more than 3 years. During his stint, he was
instrumental in developing iconic projects such as Sabarmati Riverfront, BRTS, Kankaria Lakefront and Heritage Promotion of city.
Prior to joining AAI, he worked as a Joint Secretary in the Department of Commerce in Government of India.
Besides serving governing body of various government organizations, he also serves as Director on the Board of Aerospace
and Aviation Sector Skill Council and AAI Cargo Logistics and Allied Services Company Limited – a 100% subsidiary of AAI.

GOVERNMENT NOMINEE MEMBERS

Shri Balwinder Singh Bhullar, a 1986 batch IAS Officer from the UP Cadre has been the
Chief of Directorate General of Civil Aviation since December 5, 2016. He holds a Master’s
Degree in Agricultural Sciences from Punjab Agricultural University, Punjab. He has held many
major posts including of Joint Secretary/Additional Secretary in the Ministry of Civil Aviation,
District Magistrate - Ghaziabad & Kanpur, Govt. of UP, Joint Managing Director – UP Financial
Corporation. He also serves as Director of Air India Limited.
B.S. Bhullar, IAS
Director General of Civil Aviation

Shri Arun Kumar, a 1989 batch IAS Officer from Haryana Cadre and a Maths Graduate
serves as Joint Secretary at Ministry of Civil Aviation. He has the privilege of leading the Indian
delegation in 45 Bilateral Air Services Negotiations and has successfully concluded "Open
Skies Agreement" with 11 countries. He has an extensive experience of serving various
government departments dealing with Infrastructure such as Power, Surface Transport,
Industrial Development, etc. He has headed field formations as Collector for districts of
Faridabad, Rohtak and Jhajjar in Haryana and U.T. Chandigarh. He also serves as Director of
Mumbai International Airport Limited.
Arun Kumar, IAS
Jt. Secy., Ministry of Civil Aviation

9
22 nd
Annual Report 2016-17

BRIEF PROFILE OF BOARD MEMBERS

Ms. Gargi Kaul, an officer of IA&AS, 1984 Batch serves as Joint Secretary & Financial Adviser
at Ministry of Civil Aviation. She holds a Bachelor's Degree from Bhopal University and a
Master's Degree from Delhi University. Before serving the Ministry of Civil Aviation, she served
in Bhubaneswar, Odisha as Principal Accountant General. She has worked in different
capacities in Central Govt. Office/Departments and overseas assignments. She is also a
Director of Pawan Hans Limited, Air India Limited and Nominee Director on the Board of Delhi
International Airport Limited.
Gargi Kaul, IA&AS
Jt. Secy. & Fin. Advisor, MoCA

FUNCTIONAL MEMBERS

Shri Sudhir Raheja is a ‘Civil Engineering’ Graduate from Delhi College of Engineering and is
associated with AAI since 1988. He has been instrumental for development and upgradation
of infrastructure projects at airports in Northern, North-east and Eastern India including
construction of New Greenfield Airport at Gangtok, Sikkim. He was associated with the first
expansion programme of development and modernisation of 12 domestic airports as “Model
Airports”. Shri Raheja’s paper on “PAVEMENT MANAGEMENT SYSTEM” has also been
adopted as an ICAO standard with modifications. He is also a Director on the Board of
Chandigarh International Airport Limited, Bangalore International Airport Limited, Mumbai
International Airport Private Limited and AAI Cargo Logistics and Allied Services Company
Limited – a 100% subsidiary of AAI.
Sudhir Raheja
Member (Planning)

Shri Suresh Seshadri is a Commerce Graduate and a Cost Accountant. He is also a Post
Graduate in Computer Applications and an alumni of 14th Advanced Management Program
conducted by MDI, Gurgaon. He has a vast experience of working in various Government
Departments and PSUs and is associated with AAI since 1993. He has been instrumental in
taking new initiatives like system upgradations, benchmarking, standardization of processes
and pursued some critical commercial issues at the industry level. He also represented India as
member of Indian delegation for 6th World Wide Air Transport Conference held in March
2013 at Montreal, Canada. He also serves as Director on Board of Delhi International Airport
Limited, Mumbai International Airport Private Limited, Chandigarh International Airport
Limited, MIHAN India Limited and AAI Cargo Logistics and Allied Services Company Limited –
a 100% Subsidiary of AAI.
S. Suresh
Member (Finance)

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

Anuj Aggarwal
Member (HR)

10
 BRIEF PROFILE OF BOARD MEMBERS

Shri Anil Kumar Dutta is a Science Graduate from University of Delhi and holds Master's
Degree in Business Administration. Shri Dutta has more than 30 years of experience in
Aviation Sector. He has joined AAI in 1989 and has held different roles and acquired vast
experience in the field of Airport Management and Operations, Airspace Planning and
Management, Aerodrome Licensing and International Liasioning. He is actively involved in
implementation of Air Traffic Flow Management (ATFM) in India. Before taking over the
charge as Member (ANS) in October 2015, he was holding the post of Executive Director
(ATM) and General Manager (ATM). He is also a Director on the Board of Delhi International
Airport Limited.
Anil Kumar Dutta
Member (ANS)

Shri Indrakanti Narasimha Murthy is a Post Graduate in Physics (Electronics) and is

associated with AAI since 1985. Shri Murthy has more than 30 years of experience in aviation
sector and has held different positions in Directorate of Air Traffic Management, Directorate
of Aerodrome Planning, Airport Management & Operations of AAI. Before taking over the
charge of Member (Operations) in November 2016, he served as Regional Executive Director
(Southern Region) at Chennai and Executive Director (Air Traffic Management) in Air Space
Management Directorate at AAI's Corporate Headquarters. He is also a Director on the Board
of GMR Hyderabad International Airport Limited.
I.N. Murthy
Member (Operations)

INDEPENDENT MEMBERS

Air Chief Marshal (Retd.) Fali Homi Major was commissioned in the Indian Air Force on
December 31, 1967. He has flown over 7000 hours on various aircrafts and helicopters. He
has held a number of important operational and staff appointments. He was appointed as the
18th Chief of Air Staff of the Indian Air Force on March 31, 2007. During his service he
received two Presidential Gallantry Awards and two Presidential Distinguished Service Awards
for exceptional service to the nation. He is also an Independent Director on the Board of
Air India Limited.
Air Chief Marshal (Retd.)
Fali Homi Major
Non-official Member (Independent)

Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) from West Bengal Cadre holds a Doctorate
Degree from the University of Delhi. She taught at the reputed Hindu College before joining
the Indian Administrative Service. Allotted to the West Bengal Cadre, she held senior positions
in the State Government. She served on deputation with Parliament and Government of India,
specializing in the social, industry, finance and transport infrastructure sectors. Her
association with these sectors continues post her retirement in 2015.
Dr. (Ms.) Tuktuk Ghosh
Kumar, IAS (Retd.)
Non-official Member (Independent)

11
22 nd
Annual Report 2016-17

CHAIRMAN'S MESSAGE
Dear Stakeholders,
It is a privilege to present the Annual Report for the financial year 2016-17. The year has been remarkable for
Airports Authority of India (AAI), as it achieved a robust growth during the last fiscal. It's Profit before Tax (PBT)
has surged to ` 4557 crore from ` 3697 crore over the previous financial year.

With the growth of traffic in Indian airspace touching 21 percent in 2017 and the country likely to experience
sustained growth in the double digits in the next decade, India is tipped to be the third largest aviation market in
the world by the turn of 2020. While boasting of such impressive figures in aviation, we are also aware of the
challenges that need to be tackled from time to time. The financial strength provides us with the necessary
strength to face the challenges and providing quality infrastructure in the aviation sector.

India has entered into a new era with the Government unveiling the National Civil Aviation Policy (NCAP), 2016,
under the vision of Hon’ble Prime Minister of India, Shri Narendra Modi. AAI has been assigned with the huge
challenge of implementing the flagship program UDAN (Ude Desh Ka Aam Nagrik) under the Regional
Connectivity Scheme (RCS) of the NCAP, 2016. The UDAN scheme essentially aims at promoting safe and
affordable flying for the masses. UDAN will propel aviation activity and start commercial flying at un-served and
under-served airports in India.

In line with the objectives of the NCAP-2016 of promoting both domestic and international air cargo and express
delivery services, AAI has taken significant steps in this regards by launching a 100% cargo subsidiary company in
the name of “AAI Cargo Logistics & Allied Services Limited” (AAICLAS) in August 2016, for focused attention to
promote cargo at AAI airports. With the incorporation of this cargo subsidiary, AAI will focus on capturing the
entire value chain at AAI airports and provide ‘ease of doing business’ to the importers and exporters of the
States.

AAI is also focusing on the Air Navigation Services. It has in the recent past implemented, various state-of-the-art
technology, CNS-ATM systems and advance ATM procedures, to enhance safety, efficiency and reduce

12
congestion in airspace across various airports and the entire Indian Airspace. The entire Indian Airspace has been
brought under Radar/ADS-B surveillance and advanced ATM Automation system with safety alerts and decision
making support tools. Performance Based Navigation (PBN) along with continuous descent procedures in various
phases of flight is being undertaken to facilitate optimum efficiency and safety and fuel savings. In addition to the
above, AAI has also implemented Centralized Air Traffic Flow Management System for demand and capacity
balancing both at ground and in air, which will further enhance the operational efficiency and collaborative
decision making process. India became only the fourth country in the world to commission a regional satellite
based augmentation system, GPS Aided Geo Augmented Navigation (GAGAN) and as per the government’s
National Civil Aviation Policy, all new aircraft registered in India have to be GAGAN compliant from 2019. GAGAN
provides increased operational efficiency, reduced fuel burn and enhanced capacity and we see an opportunity to
market GAGAN in Middle East, Asia Pacific Region and Africa. We are also exploring other services related to
GAGAN like GAGAN Messaging Service (GAMES) that will cater to early warning messages on the occurrence of
natural disasters, calamities, dangers for the safety of life within GAGAN coverage area.

I would also like to speak about the greatest assets of AAI, our personnel. Our top leadership team comprises well
qualified professionals, who own rich experience and expertise in their respective fields. Also to usher in further
depth and diversity, we have welcomed two new members on our Board- viz. Dr. (Ms.) Tuktuk Ghosh Kumar, IAS
(Retd.) and Air Chief Marshal (Retd.) Fali Homi Major.

One of the key achievement based on the performance in the past year was that two of our airports received the
awards for First and Second ranked airports in the world. Jaipur airport have achieved the First place ranking in the
best airport by size (2–5 million passengers per year) and region, Asia-Pacific category. Srinagar Airport has
achieved the Second place ranking in the best airport by size (2–5 million passengers per year) category.
Swami Vivekananda Airport, Raipur has recently hit the headlines topping among 49 non-metro airports of the
country. This airport achieved a score of 4.84 in a five point scale index in latest Customer Satisfaction Index (CSI)
survey conducted by an independent agency for the period of January - June 2017 followed by Udaipur, Amritsar
and Dehradun airports.

AAI won “National Excellence Award 2016” for Top Solar Power Projects in the Public Sector Undertaking
Category from Ministry of New & Renewable Energy by Hon’ble Minister Shri Piyush Goyal. AAI was also
conferred with two prestigious SKOCH BSE Award for Environmental Protection (Green Technology) in the
categories of “Two Hundred Projects of India” & “Top Thirty Projects of India” for Chandigarh Airport Project in
2016. Besides these, Chennai International Airport received the Tamil Nadu Tourism Award – 2016 in the
category of ‘Best Tourist Friendly Airport’.

It is worthy to note that our AAI continues its focus on sustainable development of society through a series of
projects and programs for benefit of communities with focus on health, environment, heritage, education,
development of rural areas under CSR.

I am thankful to our business partners, our JV partners, the Central and State Govt., employees and all other
stakeholders who help make AAI grow and contribute towards development of the country as a whole.

Dr. Guruprasad Mohapatra, IAS

Chairman

13
22 nd
Annual Report 2016-17

MEMBERS’ REPORT FOR THE YEAR 2016-17

Chennai Airport

We are pleased to present the Twenty Second Members' Report on the Business and Operations of the Airports
Authority of India (AAI) together with the audited financial statements for the financial year ended March 31, 2017.
FINANCIAL HIGHLIGHTS ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Revenue from Operations (Aeronautical & non-aeronautical revenue) 11860.54 10255.20
Other Income 681.47 569.30
Total Revenue 12542.01 10824.50
Total Expenditure other than Finance Costs and Depreciation 6453.24 5554.30
Finance Costs 98.37 171.40
Profit Before Tax & Depreciation 5990.40 5098.80
Depreciation and Amortisation 1432.79 1401.45
Profit Before Tax 4557.61 3697.35
Tax Expense including Deferred Tax 1441.68 1159.99
Profit After Tax 3115.93 2537.36
Amount distributed as Dividend:
(i) Interim Dividend & Dividend Tax 674.00 335.79
(ii) Final Dividend & Dividend Tax 451.08 580.37
Transferred to Reserves:
(i) Corporate Social Responsibility Reserve (0.13) 14.93
(ii) Airport Development Reserve 796.39 642.51
(iii) General Reserve 1194.59 963.76

14
TRANSFER TO RESERVES
In accordance with the provisions of the AAI Act 1994,
AAI transferred ` 796.39 crore and ` 1194.59 crore
to the Airport Development Reserve and General
Reserve, respectively from the profits for the financial
year 2016-17.
DIVIDEND
As per the Ministry of Finance, Department of
Investment and Public Asset Management (DIPAM)
OM F. No.5/2/2016-Policy dated May 27, 2016, every
CPSE is required to pay dividend equivalent to 30% of
PAT or 5% of the net worth, whichever is higher.
Accordingly, a dividend of ` 934.78 crore (being 30% of
PAT) has been proposed for the year 2016-17 against
which ` 560 crore was paid as Interim Dividend.
CHANGES IN THE CAPITAL STRUCTURE, LONG
TERM LOANS AND OTHER SIGNIFICANT ITEMS
AAI is a 100% Government owned Statutory
Corporation. There were no changes, during the
financial year 2016-17, in the capital of AAI. The
capital of AAI is ` 656.56 crore as on March 31, 2017.
Long Term Borrowings of AAI reduced to ` 39.78 crore
in the financial year 2016-17 as compared to
` 545.21 crore in financial year 2015-16. Reduction in
the long term borrowings were mainly due to
repayment of term loans availed from Schedule Banks
and current maturities of 8.6% Unsecured
Non-Convertible Redeemable Bonds 2018-V which are
due for repayment in financial year 2017-18.
BOARD OF DIRECTORS, BOARD COMMITTEES
AND MEETINGS
Corporate Governance Report for the financial year
2016-17 forms part of this Report as Annexure A.
Details of the Board of Directors, Board Committees
and Meetings are provided in the said Annexure.
CHANGES IN THE CHAIRMAN AND BOARD
MEMBERS OF THE AAI
During the year, following members were appointed
on the Board of AAI by the Appointments Committee
of the Cabinet, Ministry of Personnel, Public
Grievances and Pensions, Department of Personnel
and Training:-
S. Name of Designation Effective
No. the Member Date of
Appointment
1 Dr. Guruprasad Chairman July 19, 2016
Mohapatra, IAS
2 Dr. (Ms.) Tuktuk Non-official February 07,
Ghosh Kumar, Member 2017
IAS (Retd.) (Independent)
3 Air Chief Marshal Non-official February 07,
(Retd.) Fali Homi Member 2017
Major (Independent)
Shri Sudhir Raheja, Member (Planning) was the
officiating Chairman for the period starting from
March 19, 2016 i.e. the date of cessation of
Shri R. K. Srivastava as Chairman of AAI to July 19,
2016 i.e. the date of appointment of Dr. Guruprasad
Mohapatra, IAS as Chairman of AAI.
Consequent upon appointment of non-official
(independent) members, total strength of the Board
increased to 11 and AAI’s Board now has a balanced
mix of functional, non-functional and independent
members.
IMPORTANT CHANGES IN POLICY AND
MAJOR EVENTS, WHICH INFLUENCED OR
AFFECTED THE PROFITABILITY OF THE AAI
DURING THE YEAR
The National Civil Aviation Policy (NCAP), 2016 recently
issued by the Ministry of Civil Aviation, Government
of India will have a significant bearing on the functioning of
airports in general and of AAI in particular.
Major implications of the NCAP, 2016 on AAI, which
aims to provide a thrust to the sector and envisions the
creation of an ecosystem that enables 50 crore
domestic ticketing and 20 crore international ticketing
by 2027, are briefed as under:-
• AAI, under the Regional Connectivity Scheme
which aims to facilitate additional connectivity
within the country, has been given responsibility
for revival/upgrading infrastructure or creating
new aviation infrastructure in cities having
unviable airstrips/airports. While this may increase
the requirement for additional funds and cause
concerns about the financial viability of such
infrastructure in the future, it could also initiate/
increase traffic to some of the existing unutilized/
underutilised airports in the country. Also,
considering the exemption given to the airlines
from paying airport charges for first 10 years from
15
22 nd
Annual Report 2016-17
the start of flights on RCS routes under the scheme
and given the typical catchment size and possible
traffic at these locations, the scale is likely to be
inadequate to generate substantial aeronautical
and non-aeronautical revenues.
• Facilitating airline operations in terms of code
share agreements, bilateral traffic rights,
scheduled commuter airlines, etc. may further
facilitate coverage of new routes and
enhancement of air traffic – positively impacting
AAI Airports.
• Implementation of the advanced cargo
information system, paperless processing and
action plan to reduce the dwell time of air cargo to
less than 24 hours could help promoting growth in
air cargo by creating the requisite infrastructure
and improving efficiency in cargo operations and
thus it is an opportunity for AAI.
• Lower input costs of Maintenance, Repair and
Overhaul (MRO) by lowering taxes on aircraft
spare parts, storage and import restrictions, as
well as providing longer stay for flights
undergoing maintenance will encourage the
development of the MRO business in India, which
is a great opportunity, since Indian carriers spend
close to ` 5,000 crore in MRO activities of which
90% is spent outside the country. Thus, AAI would
be capitalizing on this, but, on the other side,
Airport royalty and additional charges will not be
levied on MRO service providers for 5 years.
AAI’s revenues from airports leases and its own major
airports are dependent on tariff determination by the
Airports Economic Regulatory Authority of India
(AERA). Further, tariffs for non-major airports, most of
which are AAI airports, continue to be determined by
the Ministry of Civil Aviation (MoCA). As can be
expected in a regulated infrastructure sector,
economic regulation has a major bearing on AAI’s
financial outlook. Agencies like the Directorate
General of Civil Aviation (DGCA) and Bureau of Civil
Aviation Security (BCAS) also regulate aspects of AAI’s
operations.
MEASURES TAKEN FOR IMPROVING THE
FUNCTIONS AND PROFITABILITY OF THE AAI
On the infrastructure front, AAI has taken major steps
in upgrading the Air Navigation Services, ground
infrastructure and airspace restructuring to enhance the
safety, capacity and efficiency of airspace and airports.
One of the major steps taken recently is “Upper
Airspace Harmonization” (UAH). It enables safe and
more efficient use of air space besides providing
straighter routes resulting in lesser flying time of the
16
aircraft thereby saving fuel and reducing emissions.
The UAH has been enabled by deployment of advance
technology in form of overlapping surveillance cover
through RADAR/ADS-B/Multilateration combined
with matching seamless air-ground communication
and automation systems. This has resulted in seamless
connectivity throughout Indian airspace. Results
observed on airlines getting their preferred route,
flight levels and carbon emission control after the
deployment of new systems are very positive.
AAI has launched the ambitious C-ATFM (Central Air
Traffic Flow Management) System on the occasion
of 68th Republic Day on January 26, 2017 and formally
dedicated the Central Command Centre at the New Air
Traffic Services Complex, thereby becoming the 7th
country in the world to implement the Air Traffic Flow
Control Measures across the country with the benefits
in terms of reduced carbon footprint, embarking on
Green environment concept, fuel savings and
economic benefits to the air travellers. The C-ATFM
system is primarily meant to address the balancing of
capacity against the demand to achieve optimum
utilisation of the major resources, viz., Airport capacity,
Airspace and the Aircraft at every Indian Airport,
where there is capacity constraint. With the
introduction of ATFM in India, it is envisaged to have
enhanced safety, significant cost savings to the airlines
in terms of fuel savings and reduction in operating cost
for the airlines.
The indigenous GPS Aided GEO Augmented
Navigation (GAGAN) system - an implementation of
a regional satellite-based augmentation system
(SBAS), which improves the accuracy of a GNSS
receiver by providing reference signals, is a further step
ahead in improving air traffic management procedures
that will further enhance the surveillance capability of
aircraft in Indian controlled airspace and in
neighbouring countries
AAI is also undertaking newer business initiatives by
exploring global aviation markets for providing
consultancy, construction, management services to
other countries. AAI, in one such innovative business
initiative in collaboration with IATA, came out with a
unique comprehensive e-billing solution called
‘SKYREV360’. It is the first ever end-to-end solution of
e-billing of the aeronautical and airport charges. This
unique system will help Air Navigation Service
Providers (ANSP’s) and Airport Operators to avoid
revenue leakages, reduce redundancies, reduce
disputes and ensure accurate automated billing.
Also, upon announcement of Demonetisation, AAI
rose to the occasion by taking several measures to help
the air travellers. Wider publicity for the
demonetisation campaign of the Government of India
was done at all our airports and establishments so as to reach the maximum number of people. AAI waived off car
parking charges for a fortnight to facilitate the air travellers/airport users. Further, AAI liaisoned with banks and
allowed them to open Currency Exchange Counters free of cost at all AAI airports for a period upto December 31,
2016. AAI, with the active support of banks, has been able to ensure that ATM machines are stocked with
adequate cash to meet the withdrawal requirements of the air travellers.
WORKS COMPLETED
During the year the details of the works completed are given below:
NORTHERN REGION
Kishangarh Airport Lucknow
Construction of New Passenger Terminal Building Construction of integrated office complex for AAI &
including Runway, Apron, Isolation Bay, Technical DGCA / BCAS including interior and furnishing
Block cum ATC Tower, Approach Road, Complete
Perimeter Road, Boundary Wall, Watch Towers, Lighting Cost: ` 12.70 crore
Mast, simple approach lighting and allied works Completed on: February 2017
Cost: ` 135 crore
Completed on: March 2017
SOUTHERN REGION
Chennai Airport Calicut Airport
C/o Angular T/T F1 connecting main runway 07-25 Resurfacing and strengthening of Runway to enhance
and B Taxi the capacity of runway to cater higher category of aircraft
Completed on: July 2016 Completed on: February 2017
Cost: ` 9.80 crore Cost: ` 44.00 crore
Hubli Airport Mangalore Airport
Extension, Widening & Strengthening of Runway, C/o Construction of part parallel taxi track for new
of New Taxi way, Apron, Isolation bay, Perimeter Runway 06-24 at both sides and provision of RESA of
Road, Drain and associated works etc.to enhance the 240 x 90m for 06 Runway to enhance the operational
capacity of runway to cater higher category of Aircraft efficiency, safety of aircrafts/passengers
Completed on: August 2016 Completed on: December 2016
Cost: ` 63.39 crore Cost: ` 25.76 crore
Trivandrum Airport Vijayawada Airport
Extension of Parallel Taxi-Track "P" and construction of Extension of Apron for additional ten Parking bays to
Link Taxi ways to connect Runway 14/32 and enhance operational efficiency and operational
construction of isolation parking bay to enhance the capacity of airport
operational efficiency, safety of aircrafts/ passengers Completed on: December 2016
Completed on: February 2017 Cost: ` 15.06 crore
Construction of Terminal Building, ceremonial lounge
Cost: ` 68.36 crore and associated works to enhance the passenger
capacity of building and increase the customer satisfaction
Completed on: February 2017
Cost: ` 140.02 crore
PROGRESS OF THE SANCTIONED SCHEMES - UPTO MARCH 2017
NORTHERN REGION
Delhi Fursatganj
Construction of Indian Aviation Academy to give Construction of Rajiv Gandhi National Aviation
aviation training to AAI, DGCA & BCAS staff, airline University at IGRUA.
staff and international participants
Cost: ` 149.48 crore
Cost: ` 126.20 crore
PDC: September 2017 Physical Progress: 65%
Physical Progress: 88.50% PDC: June 2017

17
22 nd
Annual Report 2016-17

PROGRESS OF THE SANCTIONED SCHEMES - UPTO MARCH 2017

NORTHERN REGION
Construction of Central Air Traffic Management SH (i): Construction of Academic Block and Hostels
(CATFM) at Vasant Kunj . PDC: Academic Block - July 2017
Cost: ` 37.38 crore PDC: Hostels - December 2017
PDC: December 2017 Physical Progress: 79%
Physical Progress: 40%
Construction of Ancillary Building for Indian Master SH (ii): Construction of Senior faculty, Junior faculty
Control Centre Building (INMCCB) at Nangloi and Senior Executives housing and other allied work.
Cost: ` 8.84 crore PDC: March 2018
PDC: February 2018 Physical Progress: 46%
Physical Progress: 10%
Amritsar Airport Gorakhpur
Extension & Strengthening Runway including Cat-II- Construction of New Passenger Terminal Building
Cat-III B Lighting to enhance the capacity of runway to (Phase I & II) to enhance the passenger capacity of
cater higher category of aircraft building and increase the customer satisfaction.
Approved Cost: ` 88.88 crore Cost: ` 22.34 crore
PDC: June 2017 PDC: December 2017
Physical Progress: 95% Physical Progress: 55%
Jodhpur Jammu
Construction of New Apron and Link Taxi to enhance Expansion and Modification of Terminal Building to
operational efficiency and operational capacity of enhance the passenger capacity of building and
airport increase the customer satisfaction
Cost: ` 21.64 crore Cost: ` 75.24 crore
PDC: March 2018 PDC: July 2017
Physical Progress: 6% (Site not handed over by IAF) Physical Progress: 96%
Udaipur Varanasi
Grading & Levelling of operational area i/c Re-carpeting of Runway & allied work to enhance the
construction of RESA and storm water drain system operational efficiency and safety of aircrafts/
Cost: ` 13.90 crore passengers
PDC: September 2017 Cost: ` 26.44 crore
Physical Progress: 30% PDC: September 2017
Physical Progress: 45%
Jaipur
Providing & Fixing ground mounted solar 1.8 MW solar panels
Cost: ` 14.98 crore
PDC: August 2017
Physical Progress: 30%
Construction of Parallel Taxi Track from Tango Taxi to Nallah (Ph-I)
Cost: ` 30.90 crore
PDC: March 2018
Physical Progress: 2% (Recently awarded on 27.02.2017)

18
PROGRESS OF THE SANCTIONED SCHEMES - UPTO MARCH 2017
SOUTHERN REGION
Belgaum Airport Calicut Airport
Construction of New Terminal Building, ATC Tower- Construction of New International Arrival Block,
cum-Technical Block-cum-Fire Station, Sub Station and Internal Modification of existing International
other Ancillary Buildings and Services. Passengers Terminal Building and associated works.
Cost: ` 37.07 crore Cost: ` 120.19 crore
Physical Progress: 81% Physical Progress: 44%
PDC: June 2017 PDC: June 2018
Rajahmundry Airport Coimbatore International Airport
Extension of Apron in front of New Terminal Building Expansion of Apron for Two Nos. of Additional
including Electrical Works to enhance operational Parking Bays to enhance operational efficiency and
efficiency and operational capacity of airport. operational capacity of airport
Cost: ` 21.41 crore Cost: ` 6.52 crore
Physical Progress: 92% Physical Progress: 30%
PDC: April 2017 PDC: June 2017

Extension of Runway and Strengthening/Resurfacing Facelift works of Terminal building at Coimbatore

of existing runway along with construction of Isolation International Airport
Bay, Pavement against Blast Erosion and RESA & other SH: Providing Tensile Fabric Canopy & Balance works
allied works
Cost: ` 5.03 crore
Cost: ` 181.45 crore
Physical Progress: 3%
Physical Progress: 10 %
PDC: July 2017
PDC: May 2018

Facelift works of Terminal building

Construction of Operational Wall & Property
Boundary Wall SH: Balance works
Cost: ` 23.81 crore Cost: ` 5.01 crore
Physical Progress: 10% Physical Progress: 2%
PDC: November 2017 PDC: August 2017
Hubli Airport Tirupati Airport
Construction of NTB ATC Tower-cum-Tech Block-cum- Construction of Boundary Wall for the newly acquired land
Fire Station, Substation & other Ancillary Buildings and Cost: ` 13.60 crore
services Physical Progress: 83%
Cost: ` 36.41 crore PDC: May 2017
Physical Progress: 73%
Construction of Perimeter Road
PDC: June 2017
Cost: ` 14.60 crore
Physical Progress: 1%
Construction of covered RCC Drain Parallel to RWY PDC: January 2018
Cost: ` 10.45 crore
Physical Progress: 15% Construction of Isolation Bay, Apron Bays with
Taxiway and associated works
PDC: July 2017 Cost: ` 26.80 crore
Physical Progress: 60%
PDC: June 2017

19
22 nd
Annual Report 2016-17

PROGRESS OF THE SANCTIONED SCHEMES - UPTO MARCH 2017

SOUTHERN REGION
Visakhapatnam Airport Mangalore International Airport
Extension of Apron for additional 06 nos. Parking Bays Construction of Link Parallel Taxi Track (Phase-II) and
to enhance operational efficiency and operational Grading of Basic Strip at South Side to enhance
capacity of airport operational efficiency and operational capacity of
Cost: ` 59.83 crore airport
Physical Progress: 60% Cost: ` 120.71 crore
PDC: July 2017 Physical Progress: 2%
PDC: August 2019
Chennai Airport Trivandrum Airport
Project Management Consultancy for Modernization Extension of Air Side Arrival Corridor with rotunda at
work of the Airport (Phase-II) to enhance the NITB (C& E) to increase customer satisfaction
passenger capacity and increase customer satisfaction Cost: ` 20.98 crore
Cost: ` 45.00 crore Physical Progress: 72%
Physical Progress: 3% PDC: September 2017
PDC: September 2022
Resurfacing and strengthening of runway and
Augmentation of Baggage Handling System taxiways to enhance the operational efficiency and
Cost: ` 17.41 crore safety of aircrafts/passengers
Physical Progress: 2% Cost: ` 55.67 crore
PDC: One year after opening of letter of credit. Physical Progress: 86%
PDC: May 2017
Tuticorin Airport Vijayawada Airport
Resurfacing of existing Runway, Taxiway and Extension and Strengthening of Existing Runway
strengthening of Apron to enhance operational 08-26 and associated works to enhance the
efficiency and operational capacity of airport operational efficiency and safety of
Cost: ` 5.53 crore aircrafts/passengers
Physical Progress: 99% Cost: ` 124.14 Crores
PDC: May 2017 Physical Progress: 4%
PDC: November 2018
OTHERS
Providing Apron Drive Glass Walled Passenger Boarding Bridges and Advanced Visual Docking Guidance
System (AVDGS) for Goa, Calicut, Coimbatore, Mangalore, Trichy, Vadodara, Amritsar, Ahmedabad &
Trivandrum Airports in India.
Cost: ` 56.34 crore
Physical Progress: 5%
PDC: March 2018

20
DEVELOPMENT OF AIRPORTS IN THE NORTH EAST REGION
AAI is continuously putting efforts to enhance the airport infrastructure in remote areas to improve the air
connectivity.
The works undertaken and that are planned to be taken are given below along with the issues involved in it.
ASSAM
Works Completed / in progress / commissioned
Guwahati (being developed as Inter Regional
Hub)
• Construction of common user Domestic Cargo
Building
Estimated Cost: ` 2.85 crores
PDC: April 2017
Progress: 99%
• Construction of building for AAI and BCAS- Work
completed on March 31, 2016 (Estimated Cost
` 13.16 crore).
• Construction of new ASR/ MSSR building (so as to
remove the existing ASR/MSSR Building to make
way for the Parallel Taxi Track). A/A & ES
` 6.50 crore nearing completion.
• WIP for expansion of existing Terminal Building
with two additional Aerobridges. (Estimated cost
` 10.06 crore)
• Installation of Advanced Surface Movement
Guidance & Control System (ASMGCS). Est. cost
2.95 crore including electrical works. 85% work
completed. (Equipment cost ` 15 crore).
• Construction of compound wall for newly
acquired land (Est. cost ` 7.21 crore).
Dibrugarh (being developed as Intra-Regional
Hub)
• Extension of Runway from 6000 ft. to 7500 ft.
including Isolation Bay. This will enhance the load
carrying capacity of A-320 aircraft operations,
which inter-alia help to improve cargo upliftment
through belly cargo. (Est. cost ` 52.31 crore). WIP
Silchar Airport
• Re-carpeting of runway. (Est. cost ` 12.99 crore )
Non Operational Airport
Rupsi
Development plan
• IAF to develop the airport for operations for ATR-72 type of Aircrafts and AAI will construct a Civil Enclave.
De-notification of 517 acres of Forest land to be made.
Works Planned/in Planning
Guwahati (being developed as Inter Regional
Hub)
• Construction of New Terminal Building of 3100
peak hour passengers capacity for which the PMC
awarded.
• Parallel taxi-track and Isolation Bay–land to be
acquired and NOC from IAF is required.
• Strengthening & Extension of Runway by 550m
for ‘E’ Cat Aircrafts.
• Upgradation of Safety & Security Infrastructure
• Construction of New Technical Block & Control
Tower.
Dibrugarh (being developed as Intra-Regional
Hub)
Development Plan
• Construction for one Hangar along with apron for
A321. Work awarded at the cost of
` 18.31 crore
• Construction of new Control Tower-cum-
Technical Block. Tender Stage.
• Upgradation of Safety & Security Infrastructure
in Operational Area
Lilabari
Development Plan
ILS Installation (For all weather operations)
WIP for levelling & grading the Basic Strip.
Jorhat (CE)
Development Plan
• New Domestic Terminal Building for handling 250
pax. State Government has to acquire and provide
50 Acres of land free of cost and free from all
encumbrances.
21
22 nd
Annual Report 2016-17
MANIPUR
Works Completed/In Progress/Commissioned
Imphal (being developed as Intra Regional Hub)
• Expansion of Apron (2 Bays) and Link Taxiway,
(Est. cost ` 13.28 crore)
• New Fire Station (Est. cost ` 4.47 crore).
• Boundary Wall along the periphery of the newly
acquired land work completed.
(Est. cost. `15.10 crore)
MEGHALAYA
Works Completed/In Progress/Commissioned
Shillong Airport
• Construction of New ATC Tower-cum-Technical
Block and Fire Station work is in progress.
(Est. cost ` 10.22 crore)
• Perimeter wall balance work awarded to the State
Govt. of Meghalaya as deposit work.
(Est. cost ` 8.23 crore). WIP
• Installation of Instrument Landing System (ILS)
including Civil & Electrical works.
(Est. cost ` 12 crore). WIP
SIKKIM
Greenfield Airport
Pakyong
New Greenfield Airport which can cater for ATR-72 type of aircraft operations. AA & ES (Revised) ` 605.50 crore.
Present Physical Progress: 85%.
PDC: November 2017.
TRIPURA
Works Planned/in Planning
Agartala (being developed as Intra-Regional Hub)
Development Plan
• Construction of New Integrated Terminal Building
to handle 1200 peak hour passengers at a time
and Ancillary works. PMC awarded.
• Extension of Runway and associated works.
• Construction of One Hangar for A321 type of
Aircrafts. Tender stage.
• Upgradation of safety and security infrastructure
in operational area.
• Shifting of Isolation bay – Tender stage.
• Construction of Cargo complex.
22
Works Planned/In Planning
Imphal (being developed as Intra Regional Hub)
Development Plan
• Strengthening & Re-carpeting of Runway – work
awarded March 2017.
• Construction of one hangar for A321 / ATR-72 -
Awarded for ` 35.90 crores.
• Construction of Perimeter Road, Perimeter
Lighting and Watch Towers- Planned.
• Construction of New Terminal Building and
ancillary works.
Works Planned/In Planning
Shillong (Barapani)
Projects planned – For upgradation of airport for
A320 type of Aircraft
• Expansion of Apron for 4 bays.
• Expansion & Strengthening of Runway upto 7500
ft. DPR for Apron & Runway Extn submitted to
NEC for Grant-in Aid
• Isolation Bay and other ancillary works.
• Relocation of DVOR
Tura (Baljek) - State Govt.
• Proposed to upgrade the airport for ATR-72 type
of aircrafts for which State Government has to
acquire 50.50 Acres of land. DPR submitted to
Ministry of DoNER.
Non-Operational Airports
Kamalpur
• Master plan prepared for development of airport
for ATR72 type of aircraft.
• State Govt. has to acquire 50.50 acres land
Kailashahar
• Master Plan prepared for development of airport
for ATR 72 type of Aircraft.
• State Govt. has to acquire 75 acres land.
ARUNACHAL PRADESH
Non-operational Airport
Tezu
• AAI has been entrusted to develop, operate and
maintain the airport for ATR 72 -500 operations.
• Govt. has approved construction of Tezu airport at
a cost of ` 79 crore with 100% Grant-in-Aid by
Govt. of India. Revised estimate of ` 96.50 crore
submitted to NEC for approval and final sanction.
• Details of works: -
- Pavement works and compound wall
completed.
- Terminal Building and other ancillary building
works are in progress.
- Tezu Airport is expected to be operational
with temporary building by May 2017 for
which existing building are being renovated.
- Overall PDC of works September 2018.
Along (by Defence)
• Being developed by Ministry of Defence as per
Govt. decision.
• 7 Acres of land to be acquired by State Govt. for
development of Civil Enclave for ATR-42
operations. AAI to develop civil enclave.
• DPR submitted to NEC for Grant-in aid.
Passighat (by Defence)
• Being developed by Ministry of Defence as per
Govt. decision for ATR-72 operations.
• AAI to develop civil enclave (2.3 acres Land
requested from the State Govt.)
• DPR submitted to NEC for Grant-in aid.
Ziro (by Defence)
• Being developed by Ministry of Defence as per
Govt. decision.
• 10 Acres of land to be acquired by State Govt. for
development of Civil Enclave for ATR-42
operation. AAI to develop civil enclave.
• DPR submitted to NEC for grant-in aid.
NAGALAND
Works planned
Dimapur
Development Plan
• Upgradation of Safety & Security Infrastructure.
• Construction of Isolation Bay.
Greenfield Airports
Itanagar
• State Govt. has approved the construction of a
Greenfield airport at Holongi site on July 24, 2012.
Accordingly, AAI forwarded a draft Master Plan
August 24, 2012.
• AAI has submitted the Pre-Feasibility Report to
MoCA on August 31, 2012 for processing formal
approval from the Steering Committee for the
New Greenfield airport. NOC for construction of
the New Greenfield Airport has been obtained
from the Ministry of Defence (MoD), Ministry of
Home Affairs (MHA) and Ministry of Finance
(Economic Affairs).
• Preparation of DPR and Environment Impact
Assessment report are in progress.
• Based on the advice of Steering Committee the
plan has been revised for A-320 type of aircraft.
Master Plan being revised.
• DPR is being finalised.
• Meantime State Govt. has requested that the
airport to be constructed at Banderdeva. A
committee was constituted by MoCA to study
both Banderdeva and Holongi. Comparative report
has been submitted by the appointed committee
in which Hollongi site has been found suitable.
• A meeting was held on 28th June 2017 in the
office of Chairman, AAI with all stakeholders
including State Govt. of Arunachal Pradesh. The
Hollongi Project site for development of new
Greenfield Airport at Hollongi has been approved
by State Cabinet of Arunachal Pradesh. A Master
Plan with WGS co-ordinates of proposed airport
site prepared with land requirement of 667 acres
for Airport Project and approx. 100 acres for
rehabilitation has been forwarded to the State
Govt. for their acceptance and intimating the cost
of land involved, if any, rehabilitation cost, etc. so
that the same can be included in the DPR to be
submitted to the Ministry of Civil Aviation.
23
22 nd
Annual Report 2016-17

MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis Report forms part of this Report as Annexure B which include discussion on
the following matters within the limits set by the AAI’s competitive position:
i. Industry structure and developments
ii. Strength and weakness
iii. Opportunities and threats
iv. Major achievements
v. Risks and concerns
vi. Internal control systems and their adequacy
vii. Material developments in Human Resources, Industrial Relations front, including number of people employed
viii. Outlook
SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANY
During the year, a 100% subsidiary of AAI with the name “AAI Cargo Logistics and Allied Services Company
Limited” was incorporated to act functionally and administratively independent entity providing air cargo logistics
and allied services such as ground handling, documentation, transport services for carriage of bonded and non-
bonded cargo and screening services and related value added services at airports in India and abroad. Some of
these activities were earlier being carried out by the AAI cargo department but now the same is being carried out
by AAICLAS.
As on March 31, 2017, the following are the subsidiaries/JVs/Associate Company of AAI:-
S. No. Name of the Subsidiary/Joint Venture/Associate Company Subsidiary/Joint Venture/
Associate Company
1. Chandigarh International Airport Limited (CHIAL) Subsidiary
2. AAI Cargo Logistics & Allied Services Company Ltd. (AAICLAS) Wholly owned Subsidiary
3. Delhi International Airport Limited (DIAL) Joint Venture
4. Bangalore International Airport Limited (BIAL) Joint Venture
5. Mumbai International Airport Limited (MIAL) Joint Venture
6. GMR Hyderabad International Airport Limited (HIAL) Joint Venture
7. MIHAN India Limited, Nagpur Joint Venture
8. Kannur International Airport Limited Joint Venture
9. National Flying Training Institute Private Limited, Gondia Joint Venture

Other than the companies listed above, AAI is also a
partner in the Indian Aviation Academy, an
autonomous body which is the joint training academy
of Airports Authority of India (AAI), Director General
of Civil Aviation (DGCA) and Bureau of Civil Aviation
Security (BCAS) and was set up under the aegis of
NIAMAR-Society in 2010. It aims to provide education,
training and research in the field of aviation
management, in ASIA-PACIFIC Region.
CORPORATE SOCIAL RESPONSIBILITY
In accordance with the requirements of the DPE
guidelines on CSR and Sustainability and Section 135
of the Companies Act, 2013, AAI has constituted a
CSR Committee. The composition and terms of
reference of the CSR Committee is provided in the
Report on Corporate Governance, which forms part of
this Report. AAI has also formulated a Corporate Social
Responsibility Policy, which is available on AAI’s
website at https://www.aai.aero/en/corporate/
csr-policy.
AAI is committed to play a larger role in India’s
sustainable development by embedding wider
economic, social and environmental objectives. During
the year, AAI spent ` 60.19 crore on CSR equivalent to 2%
of the average net profits of the last three years prescribed
under the DPE guidelines and Section 135 of the Companies
Act, 2013. A detailed update on the CSR initiatives of AAI
is provided in the Corporate Social Responsibility
Section, which forms part of this Annual Report.

24
The Annual Report on Corporate Social Responsibility
u/s 135 of the Companies Act, 2013 is annexed as
Annexure C to this Report.
AUDITOR AND AUDITORS’ REPORT
CAG is the sole auditor of AAI, a Statutory Corporation
constituted under Airports Authority of India Act, 1994.
AAI is required to prepare its accounts in the format
prescribed under the rules, framed in consultation
with the CAG and the specific provision(s) relating to
accounts in the Airports Authority of India Act, 1994.
After preparation of the Annual Report, the same is
laid before both the Houses of Parliament, together
with a copy of the Audit Report and any comments
upon or supplement to the Audit Report, made by
the CAG.
FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
FOR REVENUE AND CAPITAL ITEMS SEPARATELY
( ` In Crores)
winner in all events and qualified for the Senior National
Badminton Championship which was held in Patna.
Senior National Badminton Championship held at
Patna in February 2017. AAI team was silver medalist
in the Championship.
Table Tennis
AAI participated in 26th Inter-Institutional Table Tennis
Championship held at Jaipur in July 2016 and secured
silver medal in women & men’s team events. In the
youth events, AAI youth girls won gold medal and
qualified for the Junior National Table Tennis Championship.
AAI youth boys team also won silver medal.
AAI team participated in the Junior and Youth National
Table Tennis Championship held at Baroda in
January 2017. The youth girls’ team won the
Championship beating Tamil Nadu.
In the Senior National Table Tennis Championship held
at Manesar in February 2017, AAI women’s team won
bronze medal.

Particulars FY 2016-17 FY 2015-16 Kho-Kho

For the first time, AAI fielded its women team in Senior
Capital Items
National Kho-Kho Championship held at Nagpur in
Capital Goods (326.15) (204.00) October 2016. AAI team stood runner-up by clinching
Purchase the silver medal.

Repayment of (2.52) (4.99) Chess

Foreign Loans AAI team participated in National Open Team Chess
Revenue Items Championship and National Women Team
Championship held in February 2017 at Bhopal. AAI
Spare Parts (87.57) (6.67) men and women’s team finished runner-up in their
respective events.
Foreign Travel (8.91) (7.61)
Besides the above, AAI Contract/Scholarship sports
Others (0.13) (53.62) persons brought laurels by their outstanding
performances at National and International
Services 979.61 915.98 Tournaments. Shri Kiran George and Ms. Aakrshi
Kashyap were podium finishers in under 17 Boys and
SPORTS ACTIVITIES Girls Single Asian Badminton Championship held in
Indonesia respectively. Shri SL Narayanan was the
AAI sponsored 46th Inter-Institutional Table Tennis bronze medalist in the World Junior Chess
Championship at Jaipur in July 2016 which was Championship held at Bhubaneswar in August 2016.
conducted under the aegis of Table Tennis Federation
of India. Besides, AAI engaged more than 130 Apart from this, 17 players were selected for cash
sportspersons on Contract/Scholarship scheme to reward for their outstanding performances in National
represent AAI in national level events. Sportspersons Championship.
so engaged, represented AAI and also participated in
PROGRESSIVE USE OF HINDI
many national and international events in individual
capacity also. AAI ensures compliance of Act and Rules under Official
Language Policy of Government of India. During the
Badminton
year, Hindi workshops were conducted at CHQ,
Inter-Institutional Badminton Tournament was held at Regional Headquarters and field stations to encourage
Mumbai in August 2016 wherein AAI Team was the the employees for the use of Hindi. 2nd All India

25
22 nd
Annual Report 2016-17
Official Language Conference was organized by CHQ
in which all non-executives of Official Language cadre
participated. Official Language seminars were also
organized at all Regional Headquarters.
Official Language Implementation Committee
meetings were conducted at CHQ and at all stations in
every quarter of the year. In addition, Hindi Fortnight
was also organized in CHQ & every station of AAI in
September 2016. During the Hindi Fortnight at CHQ in
September 2016, All India Hindi Kavi Sammelan was
organized. Hindi training through Hindi Teaching
Scheme or departmental training are constantly
organized.
The inspections of Regional & Subordinate Offices
have been carried out by Senior Level Officers of CHQ to
monitor the implementation of Official Language in AAI.
VIGILANCE ACTIVITIES
The Vigilance Department of AAI is headed by Chief
Vigilance Officer of the rank of Jt. Secretary to
Government of India. Corporate Vigilance Department
(CVD) of AAI is located at New Delhi office whereas it
also has its regional offices at different regions
(Northern, Eastern, Western, Southern & North-
Eastern). The role and functions of vigilance
department are in conformity with CVC’s special
chapter on “Vigilance for the PSUs”.
AAI being a service organisation, the role & functions
of Vigilance Directorate is three pronged – Preventive,
Punitive and Detective. In its preventive role, CVD
carries out awareness campaigns wherein it creates
sensitivity towards day-to-day matters having scope
for malpractices and corruption. These campaigns
includes Vigilance Awareness Week (VAW), which is
an yearly event and Vigilance Awareness programmes
like workshops, lectures, seminars etc. being
conducted throughout the year at different locations
to achieve the objective of zero tolerance for
corruption. In its detective/surveillance role, it plans
and carries out surprise, regular and CTE Type
inspections to detect the systemic failure and existence
of corruption and malpractices, if any. It also
scrutinizes the internal audit reports and annual
property returns etc. to look for actions with a
vigilance angle.
CVD as a part of its proactive role urges various key
departments to codify their work procedures and
revise their manuals for bringing transparency at
workplace and reducing the scope for discretion. CVD
on the basis of outcome of deliberations taking place
in workshops and field inspections, make suggestions
to the management for systemic improvements on
important issues.
26
The updated information concerning activities and
achievements of vigilance department for the period
from April 01, 2016 to March 31, 2017 is as follows:
(a) Implementation of ‘Integrity Pact’ in AAI
• Integrity Pact was implemented in AAI from
April 01, 2008. So far 152 numbers of projects
valued at ` 15171.90 crore have come under the
purview of Intergrity Pact.
• A Structured Meeting with IEM was organized
on July 28, 2016 at New Delhi. The meeting was
chaired by Shri M.P. Juneja, IEM and attended by
Chief Vigilance Officer, AAI and the concerned
HODs of procuring departments. Various issues
related to ‘Integrity Pact’ and difficulties faced by
vendors were discussed in this meeting.
• A Vendors meet was organized at New Delhi on
February 28, 2017. The meet was chaired by
Chairman and attended by both the IEMs, CVO,
Members and various vendors. Various issues
related to vendors/integrity pact/policy were
discussed in this meeting.
• A meeting for Implementation of Integrity Pact
was held on September 12, 2016 at New Delhi.
The meet was chaired by Chairman and attended
by Member (Planning), CVO and HODs of AAI
along with both the IEMs.
(b) Vigilance Issues and Activities
• In compliance of directions given by CVC,
Quarterly Vigilance Review Meeting (QVRM) for
the period ending April 30, 2016 was held on
June 06, 2016. The Meeting was chaired by
Chairman and attended by Members and CVO.
Several important issues were discussed in the
meeting for streamlining the system.
• As a part of pro-active and preventive vigilance, a
concept note on preventive vigilance based on the
initiatives and innovations developed by Corporate
Vigilance Department of AAI was forwarded to
Central Vigilance Commission. This Concept Note
was selected amongst the top 20 Concept Notes
and CVC published and circulated the same in its
book titled “Initiatives in Preventive Vigilance”.
(c) Observance of Vigilance Awareness Week
(VAW), 2016
In accordance with CVC’s guidelines, ‘Vigilance
Awareness Week – 2016’ was organized from
October 31, 2016 to November 05, 2016 in all the
offices, airports and units of AAI.
(d) CTE Type Inspections
During the period from April 2016 to March 2017
Vigilance Department conducted Six CTE Type
 inspections pertaining to Civil and Electrical works
etc. Three at Kolkata, one each at Dibrugarh,
Chennai & Rajahmundry Airport.
(e) Periodic & Surprise Inspections
During the period from April 2016 to March 2017
Vigilance Department conducted Twenty Six
Periodic and Ten Surprise Inspections at various
airports situated all over India.
(f) Issuance of Technical/Administrative
Instructions
During this period Eleven Technical Instructions/
Circulars and Four Administrative Circular were
issued by the management for bringing clarity and
improvement in the system.
(g) Disciplinary Cases
During this period, Sixteen major penalty cases and
Fourteen minor penalty cases have been finalized.
(h) Vigilance Investigation
Vigilance Investigation was concluded in
Thirty-three cases involving Eighty-five officials
during the reference period.
(i) Recovery due to initiatives of CVD
On the basis of amounts quantified so far, a total
amount of ` 1.25 crore approximately has been
recovered as a result of vigilance initiative on the
basis of investigation and inspections.
Vigilance Department as a part of its proactive role will
urge various key departments to codify their work
procedure and revise their Manuals in an endeavour to
bring transparency at work place and reduce the scope
for discretion. Vigilance Department on the basis of
outcome of deliberations likely to take place in the
forthcoming workshops and field inspections will
make suggestions to the Management on systemic
improvement on important issues.
Various Vigilance Officers have been nominated for
vigilance training at CBI Academy, Ghaziabad and
other government institutes for development of their
skills. It is being ensured that each Vigilance Officer
undergoes at least 1-2 training during the year on
vigilance initiative apart from the regular trainings
being imparted through HR Directorate of AAI. Also,
training needs of non-executive staff has already been
identified and they are being nominated to ISTM for
their skill development.
EMPLOYEE-EMPLOYER RELATIONS, STRIKES,
ETC.
Industrial relations at AAI have continued to be cordial
throughout the year. AAI makes constant endeavour
to establish, maintain and continuously improve
communications with its workforce in maintaining
healthy industrial relations by settlement of issues by
way of holding quarterly meetings and single union
being a bargaining agent.
AAI is committed to the training of its personnel in the
field of Industrial Relations Management techniques,
and for creating a close working relationship with its
employees, at all levels.
During the last three years, there have been no loss of
man days on account of Strike/Absenteeism or
Lockout. To reduce the loss of working days due to the
above reason, several healthy meetings were
organized between the officers of AAI & CISF at all the
Airports/Offices of AAI. Further, AAI emphasis on
healthy trade unionism and proactive approach in
dealing with the employees related issue with the
following methods:-
(i) Bi-partite Forums;
(ii) Grievance Redressal Mechanism;
(iii) Welfare Measures.
The above mentioned arrangement is not only
resulting in higher productivity but also developing
and improving the skill of workers. By this way, AAI not
only try its best to avoid Industrial conflicts e.g. Strikes
/Lockouts, Go Slow, Protest Rally, Mass Casual Leave
and Gheraos but also establish & maintain Industrial
harmony.
AWARDS & MAJOR EVENTS DURING YEAR
2016-17
• AAI was conferred “National Excellence Award
2016” for Top Solar Power Projects in the Public
Sector Undertaking Category from Ministry of
New & Renewable Energy by Hon’ble Minister
Shri Piyush Goyal on 07.06.2016.
• AAI was conferred two prestigious SKOCH BSE
Award for Environmental Protection (Green
Technology) in the categories of “Two Hundred
Projects of India” & “Top Thirty Projects
of India” for Chandigarh Airport Project on
June 08 & 09, 2016.
• Chandigarh International Airport Limited (CHIAL)
won IBC Award for Excellence in Build Environment
2014-2015 for New Integrated Terminal Building of
Chandigarh International Airport.
• Calicut International Airport won Kerala State
Energy Conservation Award 2016 in Category of
Buildings in the State of Kerala.
• Biju Patnaik International Airport won Odisha
State Energy Conservation Award 2016 in
category of Buildings in the State of Odisha.
27
22 nd
Annual Report 2016-17
• New Integrated Terminal Building at Tirupati
Airport won Four Star GRIHA Rating in category of
Green Building on 02.03.2017.
• Foundation stone laying ceremony of extension of
Runway at Rajahmundry Airport on 19.09.2016.
• Foundation stone laying ceremony of
Adampur Domestic Airport on 16.12.2016 by
Hon’ble Finance Minister Shri Arun Jaitley &
Hon’ble Minister of State for Civil Aviation,
Shri Jayant Sinha.
MEMBERS’ RESPONSIBILITY STATEMENT
The Members to the best of their knowledge and belief
confirm that:
(i) in the preparation of the annual accounts for the
financial year ended March 31, 2017, the
applicable accounting standards had been
followed and proper explanation is provided
where there is any material departure from the
same;
(ii) the Members had selected such accounting
policies and applied them consistently and made
judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the
state of affairs of AAI at the end of the financial
year ended March 31, 2017 and of the profit of the
AAI for that period;
(iii) the Members had taken proper and sufficient care
for the maintenance of adequate accounting
records for safeguarding the assets of the AAI and
for preventing and detecting fraud and other
irregularities;
(iv) the Members had prepared the annual accounts
on a ‘going concern basis’;
28
(v) the Members had laid down internal financial
controls to be followed by the AAI and that such
internal financial controls are adequate and are
operating effectively;
(vi) the Members had devised proper systems to
ensure compliance with the provisions of all
applicable laws and that such systems are
adequate and are operating effectively.
ACKNOWLEDGEMENTS
The Members wish to place on record their
appreciation for the assistance and co-operation
extended by the Ministry of Civil Aviation, DGCA,
BCAS, Comptroller & Auditor General of India and
other departments of the Government of India and
State governments, customers, bankers, vendors,
business partners and other agencies. The Members
also wish to place on record the support and
cooperation received from the Regional Office of
ICAO at Bangkok as well as the ICAO Headquarters at
Montreal in various facets of the functioning of AAI.
The Members would also like to place on record their
sincere appreciation for the valuable contribution,
unstinted efforts and the spirit of dedication shown by
the employees of the AAI at all levels in ensuring an
excellent all round operational performance.
On behalf of
AIRPORTS AUTHORITY OF INDIA
Dr. Guruprasad Mohapatra, IAS
Chairman

CORPORATE GOVERNANCE REPORT
CORPORATE GOVERNANCE PHILOSOPHY
Corporate Governance is the set of processes,
customs, policies, laws and institutions effecting the
way a corporation is directed, administered or
controlled. It is concerned with the morals, ethics,
values, parameters, conduct and behaviour of the
organisation and the management.
Airports Authority of India (AAI) believes that the
organisation shall go beyond adherence to regulatory
framework. Our structure, business, operations and
disclosure practices have been strictly aligned to
corporate governance philosophy, thus we accord
highest priority to corporate governance systems and
protect the interest of all our stakeholders.
AAI believes in sustainable growth that emanates from
the top leadership down through the organisation to
the various stakeholders which is reflected in its sound
financial system and improved efficiency with
transparent disclosure items across four broad
categories:
(i) Auditing
(ii) Board and management structure and process
(iii) Corporate responsibility and compliance
(iv) Financial transparency and information disclosures
Annexure - A
Ahmedabad Airport
1. BOARD OF DIRECTORS
AAI is an unlisted Statutory Corporation constituted
under the act of Parliament i.e. Airports Authority of
India Act, 1994 (“the Act”) and is 100% owned by
the Government of India. The Board Structure/
composition is governed by the Act.
AAI’s Board composition is in compliance with the
provisions of the Act and has an optimum combination
of functional, nominee and independent members.
Presently, it comprises of eleven (11) members, of
which six are functional including the Chairman,
two represent the Ministry of Civil Aviation, one
represents the DGCA and two are part-time
Non-official (Independent) Members .
AAI is in process of appointing two more Non-official
Directors on its Board and has already written to
Ministry of Civil Aviation (MoCA) and is waiting for the
appointment order from MoCA in this regard.
Our functional members are highly experienced
personnel in their respective functional areas who
provide directions to the management on operational
issues, adoption of systems and best practices in
management and oversee compliance of various
statutory, legal and other requirements.
29
22 nd
Annual Report 2016-17

The Composition of the Board as on 31.03.2017 is:-
Dr.Guruprasad Mohapatra,IAS
Shri Arun Kumar, IAS
Joint Secretary, MoCA
Ms. Gargi Kaul, IA&AS
JS & FA, MoCA
Shri B.S. Bhullar, IAS
Director General of
Civil Aviation
Shri Sudhir Raheja
Shri S. Suresh
Shri Anuj Aggarwal
Shri A.K. Dutta
Shri I.N. Murthy
Air Chief Marshal (Retd.)
Fali Homi Major
Dr. (Ms.) Tuktuk Ghosh Kumar,
IAS (Retd.)
The Audit Committee comprises of following :-
Chairman (i) Air Chief Marshal (Retd.) Fali Homi Major as
Chairperson
Non-official Member
(ii) Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) as
Member
Non-official Member
(iii) Shri S. Suresh as Member
Ex-officio Member The terms of reference of the Audit Committee are:-
• Examination of the financial statements and the
Comptroller & Auditor General’s Report thereon.
Member (Planning)
• To review the follow up action on the audit
Member (Finance) observations of the C&AG audit.
Member (HR) • To review the follow up action taken on the
recommendations of Committee on Public
Member (ANS) Undertakings of the Parliament.
Member (Operations) • Evaluation of internal financial controls and risk
Non-official Member management systems.
(Independent) • Discussion with internal Auditors.
Non-official Member • Any other responsibility as may be assigned by the
(Independent) Board from time to time.

2. BOARD MEETINGS Meetings of the Audit Committee

The Board Meetings and its Procedures are governed
by the AAI (Transaction of Business) Regulations, 1995
(“Regulations”). AAI complies with these Regulations
w.r.t. convening and conducting the Board/
Committee Meetings.
Regular meetings of the Board are held to discuss and
decide on various important issues including business
policies & strategies. The schedule of Board/
Committee meetings are circulated to the members in
advance to enable them to plan their schedule for
participation in the meetings. Also, the intervening
period between the two Board meetings was not more
than one hundred and twenty days.
During the financial year seven Board meetings were
held on the dates mentioned below:
26.05.2016, 03.06.2016, 11.08.2016, 21.09.2016,
24.11.2016, 25.01.2017 and 23.03.2017
3. AUDIT COMMITTEE
The Board has a qualified and an Independent Audit
Committee with specified terms of reference. The
Committee comprises of three members with
two-third of its members as Independent. The
Committee is chaired by an Independent member. Also,
all the members of the Audit Committee have knowledge
of financial matters and at least one member has
expertise in accounting and financial management.
The constitution of the Audit Committee of AAI
provides that the Committee will meet at least four
times in a year and not more than four months shall
elapse between two meetings. It is also being ensured
that minimum of two independent members attend
the meeting of the Audit Committee. It is only after
their availability, the date of meetings is being fixed.
4. REMUNERATION COMMITTEE
The Remuneration Committee has been constituted
which shall recommend to the Board to carry out
evaluation of every employee’s performance related
pay, annual bonus/variable pay pool and policy for its
distribution across the executives and non-unionized
supervisors within the prescribed limits.
The Remuneration Committee comprises of three
Non-official Members and is chaired by an
Independent Member.
The Remuneration Committee comprises of following :-
(i) Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) as
Chairperson
(ii) Air Chief Marshal (Retd.) Fali Homi Major as
Member
(iii) Ms. Gargi Kaul as Member

30
5. MEMBERS’ REMUNERATION AND THEIR
APPOINTMENT
Appointment of members, including non-official
members, on the Board of AAI is done by the Central
Government (through ministry).
While the official members are being paid
remuneration as decided by the DPE, the non-official
independent members are being paid sitting fee as per
the Policy on payment to Independent members.
6. CSR COMMITTEE
Pursuant to the provisions of Guidelines on Corporate
Governance for Central Public Sector Enterprises, 2010
and applicable statutory requirements, the Board of
Directors of AAI had constituted a Corporate Social
Responsibility Committee which is headed by an
Independent Member.
The CSR Committee comprises of following :-
(i) Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) as
Chairperson
(ii) Dr. Guruprasad Mohapatra, IAS as Member
(iii) Shri Sudhir Raheja as Member
(iv) Shri Anuj Aggarwal as Member
The terms of reference of the CSR Committee are:-
• Formulate and recommend to the Board, a
Corporate Social Responsibility Policy, which shall
indicate the activities to be undertaken by the AAI
as specified in Schedule VII of the Companies
Act, 2013.
• Recommend the amount of expenditure to be
incurred on the approved CSR activities.
• Monitor the Corporate Social Responsibility Policy
of the AAI from time to time.
7. ANNUAL GENERAL MEETING
AAI is a statutory corporation - 100% owned by the
Government of India and is governed by special act of
Parliament i.e. AAI Act, 1994. Since, Companies Act is
not applicable to AAI and also AAI Act, 1994 does not
contain any provisions relating to convening annual
general meeting, it is not required to hold any annual
general meeting.
8. DISCLOSURE BY MEMBERS AND SENIOR
MANAGEMENT
All the Board Members and Senior Management
Officials acts in good faith, in order to promote the
objects of the AAI and in the best interests of the AAI
and its stakeholders. All the Board Members and
Senior Management officials exercise their duties with
due and reasonable care, skill and diligence and
exercise independent judgment.
The Board Members does not involve in a situation in
which they may have a direct or indirect interest that
conflicts, or possibly may conflict, with the interest of
the AAI. Further, there is no such possibility, because
the governing statue viz. the AAI Act, 1994 vide
Section 4 disqualifies the person to be a member on
the Board of AAI in case he/she has any financial or
other interest in the AAI as is likely to affect
prejudicially the discharge by him/her of his/her
function as a member.
9. TRAINING OF BOARD MEMBERS
At AAI, continuing education and training is a
continuous process. Members are encouraged to
attend the special training courses by various
professional bodies including programs by DPE to
ensure that the members are refreshed and equipped
to perform their roles in the highest standards and
performance possible. If interested, members attend
the relevant programs.
10. MEANS OF COMMUNICATION
AAI issue periodic reports and press releases covering
important matters relating to AAI. AAI also have a
facility for information sharing with stakeholders
through the use of Information and Communication
Technologies (ICT).
11. WEBSITE
The AAI's website viz. www.aai.aero contains
dedicated sections for stakeholders. The Annual
Report of AAI is also available on the website in a user
friendly and downloadable form. Apart from that, CSR
initiatives, passengers’ information, public
information, vigilance, financial information etc. are
also available.
31
22 nd
Annual Report 2016-17
MANAGEMENT DISCUSSION AND ANALYSIS (MD&A)
The objective of this report is to share and keep you
abreast with the happenings and transformations
occurring within AAI, that in the industry and
economy, its technology and its overall business
strategies. Among other things, the MD&A provides
an overview of the previous year of operations and
how AAI fared in that time. It also provides the report
on the upcoming year, outlining future goals and
approaches to new projects. We begin with a general
review of the industry, followed by the operational and
financial details of AAI including details of its human
resources.
Statements in the MD&A describing AAI’s objectives,
projections, estimate expectations may be “forward
looking statements”. Actual results could differ
materially from those expressed or implied. Important
factors that could influence AAI’s operations include
economic developments within the country, demand
and supply conditions in the industry, input prices,
changes in Government regulations, tax laws and
other factors such as litigation and industrial relations.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The aviation industry is a service industry providing
transport services. Air transportation shows many
characteristics which are typical for service industries,
e.g. the intangibility of the product and the high
importance of personal contact to the customer.
32
Annexure - B
Varanasi Airport
Airlines and Airports are the two main players in the
industry. While Airlines offer the actual transport
service whereas Airports provide the ground
infrastructure to handle aircraft movements. The
manufacturing industry and aviation suppliers assemble
aircrafts and provide spare products. As a provider of
supplementary processes, the industry relies on
general service providers such as Air Traffic Control.
Indian Aviation Industry can broadly be divided into
military and civil aviation. Ministry of Civil Aviation is
responsible for civilian aviation and Ministry of
Defence is responsible for the Indian Air Force.
India’s Civil Aviation industry is on a high-growth
trajectory and is poised to become the largest aviation
market in the world by 2030. The Civil Aviation
industry has ushered in a new era of expansion, driven
by factors such as low-cost carriers, modern airports,
Foreign Direct Investment in domestic airlines,
advanced information technology interventions and
growing emphasis on regional connectivity.
India has been able to handle over 250 million
passengers in 2016. By 2020, passenger traffic at
Indian airports is expected to increase to 421 million.
Although the spurt in air traffic brought new
opportunities for AAI, it also posed a major challenge
in terms of expanding ground infrastructure and air
navigation services.
Policy makers are engaging and collaborating with the
industry stakeholders to implement efficient and
rational decisions that would boost India’s Civil
Aviation industry. With the right policies and relentless
focus on quality, cost and passenger interest, India
would be well placed to achieve its vision of becoming
the largest aviation market.
According to data released by the Department of
Industrial Policy and Promotion, FDI inflows in air
transport (including air freight) between April 2000
and March 2017 stood at US$ 1.01 billion. In the
Union Budget 2017-18, the Ministry of Civil Aviation
received a substantial increase of over 22 percent in
budgetary allocation at ` 5,167.60 crore. Some major
initiatives undertaken by the Government and AAI are:
• The Government of India has approved the
construction of 18 Greenfield Airports in the
country, which would be executed and financed
by the respective airport promoters, and
are estimated to require an investment of
` 30,000 crore.
• The Cabinet Committee on Economic Affairs,
Government of India, has approved the proposal
to revive 50 un-served and under-served airstrips in
three financial years starting from 2017-18 at an
estimated cost of ` 4,500 crore.
• The Government of India has launched a new
Regional Connectivity Scheme (RCS) called Ude
Desh ka Aam Nagrik (UDAN) to make flying
affordable for common man under which fares
will be capped at ` 2,500 for half the seats in an
one-hour flight.
• Indian airline companies like Air India, Air Deccan,
SpiceJet, Air Odisha and Turbo Megha, have been
awarded with the right to fly to 128 routes across
India, requiring them to cap half the seats at
nearly 50 percent of the fare, under the
Government of India’s regional aviation scheme
named UDAN.
• Government plans to double the number of
airports in India over the next two to three years to
cater to the increased passenger traffic due to
developing regional air travel market.
• The Ministry of Civil Aviation along with Airports
Authority of India (AAI) plans to develop small
airports with frugal facilities, and encourage
private airlines to bid for routes connecting these
small airports with existing larger airports, thereby
increasing regional air traffic.
• AAI increased its capital expenditure for 2017-18
by 25 percent (approx.), primarily to expand capacity
at 12 airports to accommodate rising air traffic.
• The Executive Development Programme of Rajiv
Gandhi National Aviation University in
collaboration with Indo US – American
Cooperation Program, inaugurated by Shri Ashok
Gajapathi Raju, Minister for Civil Aviation, aims to
promote skill development of senior leadership
and close the gap of increasing demand for
trained people in the aviation sector.
BUSINESS OVERVIEW
AAI is the leading Airport Operator and sole air
navigation service provider in India. It owns and
maintains 126 airports including 21 international
airports (3 civil enclaves), 8 customs airports (4 civil
enclaves), 78 domestic airports, and 19 domestic civil
enclaves at defence airfields and provides air
navigation services for over 2.8 million square nautical
miles of air space.
Over the past two decades, AAI has been at the
forefront of modernizing and developing airside &
terminal side infrastructure, air navigation services,
and improving its services at airports to deliver a better
travel experience to passengers. These measures have
resulted in improved air safety and passenger
satisfaction as is reflected in passenger experience
survey results.
At present, top priority of the sector in general, and
AAI in particular, is to transform the image of airport
infrastructure in the country, to be the most customer-
friendly and to be at par with the best managed
airports in the world. AAI aim to achieve this by
augmenting its airports with state-of-the-art
infrastructure, leveraging technology in line with
global trends for Air Navigation facilities, enhancing
safety & operational efficiency both in the air and on
the ground.
AAI’s persistent efforts to improve the services and
passenger facilities at its airports have placed it
amongst the best service providers in the world. Based
on the results of the ASQ (Airport Service Quality)
Survey 2017 carried out by Airports Council
International (ACI), Jaipur and Srinagar Airports
have been rated as the World’s No. 1 & 2 Airports
respectively in the category, “Best Airport by
Size” in the traffic volume of 2 to 5 million
passengers per year.
Revenue Mix
AAI’s revenues can be broadly categorized into
Aeronautical, Non-aeronautical, Cargo, Airport lease
revenues and other from allied services such as
Consultancy projects. Aeronautical revenues for AAI
are dominated by ANS charges (Route Navigation
Facilities charges and Terminal Navigational Landing
33
22 nd
Annual Report 2016-17

charges) whereas its Non-aeronautical revenues come from commercial operations at airports like Retail, F&B, Car
parking, other concessions and rentals in terminals and city side premises. Lease revenues from major airports like
Mumbai, Delhi etc. accounts for significant contribution in AAI’s revenues. As tariffs at these airports are
regulated by the Airports Economic Regulatory Authority of India (AERA) with reference to traffic growth and
investment plans of these airports, AAI has no control over this revenue stream. Contribution of Cargo revenues
to AAI’s total revenues remain marginal.
The overall revenue mix for AAI in the financial year 2016-17 is shown below:-
( ` In Crores)
S. Revenue FY 16-17 Share in the FY 15-16 Share in the Increase (+) Increase (+)
No. Constituent AAI’s Total AAI’s Total or decrease or decrease
Revenue in Revenue in () over () in terms
terms of % terms of % last FY of %
1 Airport 2972.89 23.70 2581.08 23.84 391.81 15.18
Navigational
Services
2 Airport Services 3483.98 27.78 2890.90 26.71 593.08 20.52
3 Non-aeronautical 1304.97 10.41 1202.81 11.11 102.16 8.49
Airport Services
4 Cargo Revenue 261.95 2.09 201.15 1.86 60.80 30.23
5 Airport Lease 3836.75 30.59 3379.26 31.22 457.49 13.54
Revenue
6 Other Income 681.47 5.43 569.30 5.26 112.17 19.70
Total Revenue 12542.01 100.00 10824.50 100.00 1717.51 15.87

Revenue Mix for AAI (FY 2016-17)

5%
24%

31%

2%
28%
10%

Other Income Cargo Revenue Airport Services

Airport Lease Revenue Non-aeronautical Airport Service Airport Navigational Services

34
AAI registered growth of more than 15% and 22% in its Revenues and Profits after Tax respectively in the
financial year 2016-17 as compared to the financial year 2015-16. While its traditional businesses grown at a
healthy rate, growth in the new businesses and new markets, which complement its existing businesses, also
contributed to its revenues.
Main factors for increase in revenue are increase in Route Navigational charges & Terminal Landing charges; increase
in Landing, Housing & Parking charges; increase in Passenger Service fee; increase in other revenue like Trading
Concession, Rent & Services, Cargo, UDF & other misc. revenue and increase in share of Revenue from DIAL & MIAL.

Cost Mix
AAI’s key expense categories include employee costs (comprising employee salaries, allowances and
contributions to provident fund), operating expenses including aviation security, administration expenses,
financing costs and depreciation.
The overall cost mix for AAI in the financial year 2016-17 is shown below:-
( ` In Crores)

S. Revenue FY 16-17 Share in the FY 15-16 Share in the Increase (+) Increase (+)
No. Constituent AAI’s Total AAI’s Total or decrease or decrease
Revenue in Revenue in () over () in terms
terms of % terms of % last FY of %
1 Employee 2789.08 34.93 2700.08 37.88 89.00 3.30
Benefits Expenses
2 Operating Expenses 1509.85 18.91 1157.04 16.23 352.81 30.49
3 Administrative 1272.02 15.93 930.96 13.06 341.06 36.64
and Other Expenses
4 Finance Costs 98.37 1.23 171.40 2.40 (73.03) (42.61)
5 Depreciation & 1432.79 17.95 1401.45 19.66 31.34 2.24
Amortization
6 Security Expenses 882.28 11.05 766.22 10.75 116.06 15.15
Total Expenses 7984.40 100.00 7127.15 100.00 857.25 12.03

Cost Mix for AAI (FY 2016-17)

11%

35%
18%

1%

16%
19%

Security Expenses Finance Costs Operating Expenses

Depreciation & Amortization Administrative and Other Expenses Employee Benefits Expenses

35
22 nd
Annual Report 2016-17

Increase in expenditure was due to increase in Pay & Allowances, Repairs & Maintenance, Consumption of Stores,
Water & Electricity Charges, Depreciation, Administrative Expenditures etc.
Traffic Handled (2016-17 vs 2015-16)
Traffic handled at all Indian airports taken together during the year 2016-17 saw an increase as compared to
previous year in the International and Domestic sector on all three areas namely, aircraft movements, passenger
and freight handled. The total aircraft movement, passenger and freight traffic have increased by 14.1%, 18.3%
and 10.1% respectively during the year. Details of traffic handled during the year and comparison with previous
year are given below:-

Particulars 2016-17 2015-16 %age change

Aircraft Movements (in numbers)
International 400422 374995 6.8
Domestic 1648663 1420462 16.1
TOTAL 2049085 1795457 14.1
Passengers (in numbers)
International 59284991 54662204 8.5
Domestic 205684732 169293015 21.5
TOTAL 264969723 223955219 18.3
Freight (in MT)
International 1855061 1657698 11.9
Domestic 1123180 1046877 7.3
TOTAL 2978241 2704575 10.1

KEY STRENGTHS AND WEAKNESSES Leverage on Non-aeronautical Revenues such as retail,

While large land holdings, network of airports across
the country, expertise in providing air navigation
services, consistent profitability and financial
resources, and experienced manpower are the key
strengths of AAI, low share of Non-aeronautical
revenue, low growth of Cargo business, skilled
manpower shortage and training, limited focus on MIS
and marketing are its key weaknesses.
MAJOR OPPORTUNITIES AND THREATS
AAI has exciting aspirations as it moves into a new era
of development. AAI is focusing on five priorities which
are NCAP, RCS, AAICLAS, UAH & MRO that will
enhance its reputation and position on a global
platform.
There is a huge potential to develop India as an MRO
hub, since the second highest cost component for
Indian airline companies after fuel is maintenance on
which over 13–15% of their revenues are being spent.
Further, the present MRO business in India is estimated
to be over 300% by 2020.
advertising, vehicle parking etc.; Increasing the Cargo
Business; Land Monetisation; Leverage on Improved
Technology including adoption and use of state-of-the-
art technology like ‘GAGAN - A satellite based
navigation system’; Policy Support; Huge investment
potential in the Industry; International opportunities
for consulting and other services and marketing
initiatives to improve engagement with customers are
being seen as great Opportunities.
Whereas reliance on revenues beyond the control of
AAI; Obligation to implement RCS; Competition from
other airport developers and operators; Stricter
environment & safety norms and Terrorism are being
considered as major threats.
Airport Industry is highly capital-intensive industry and
it takes much longer term to recover the higher cost of
capital, which has an impact on airport lease terms. This
along with regulatory hurdles are also threats to AAI.

36
INITIATIVES/ACHIEVEMENTS OF VARIOUS
DIRECTORATES
Air Navigation Services
AAI’s Air Navigation Services have made rapid strides
during the past year in optimum service provision and
associated CNS infrastructure through commissioning
of new radars, ADS-B, implementation of PBN based
procedures, implementation of reduced separation
minima between RNP 4 equipped aircraft and many
more. Commissioning of CAT III B ILS at Jaipur and
Lucknow airports in December 2016 was a significant
achievement which provides airlines with assured
access to airports during severe weather. The
measures have contributed significantly to enhanced
safety and efficiency of aircraft operations across the
country in addition to environmental protection.
ANS Infrastructure Upgradation
During the past year, the responsibility of
commissioning the CNS facilities has been transferred
to CNS department which was hitherto handled by
DGCA. The process of commissioning is a time
consuming activity involving verification of documents
and performance checks. ANS directorate has
completed the commissioning of the following
facilities:
• ASMGCS at Jaipur, Lucknow and Amritsar airport.
• CAT-I ILS at Durgapur and Indore airport.
• ADS-B at Varanasi, Lucknow, Cochin, Coimbatore,
Trichy, Trivandrum, Vijayawada, Nagpur, Port
Blair, Guwahati and Agartala
• Completion of Electronic Flight Strip System (EFSS)
project at Mumbai which will enhance the
operational efficiency at Mumbai ATC Control
Tower.
• ASR-MSSR Commissioned at Amritsar Airport on
27.03.2017 to enhance surveillance coverage.
• Installation & SAT of ASR-MSSR completed at
Delhi, Mumbai & Mangalore on 28.10.2016,
24.01.2017 & 19.03.2017 respectively.
• Installation of 6 ILSs, 9 DVORs and 13 DMEs at
different stations.
In addition to this achievement, the following
initiatives have been taken:
• Development of in house "IP Based" Automatic
Message Switching System (AMSS) as per SARPs
of ICAO by CNS engineers. The system has been
successfully tested at Varanasi Airport and will be
put up in parallel operation.
• In House development for “IP based” data
transportation through AAI’s DSCN Network.
Before this it was possible to transport serial data
only through frame relay protocol.
• Initiated SITC of ADS-B ground system at 10
airports to enhance the surveillance coverage and
to provide third level of redundancy at major
airports.
• Initiated SITC of Integrated Aerodrome and
Surveillance ATC Simulator project to enhance the
training capability at CATC Allahabad.
• Roadmap for “Universal IP addressing plan in India
for CNS ATM systems” had been formulated to
integrate various CNS ATM systems pan India,
through IP networking. This had been done
through a workshop & brain storming session
at RG Bhawan, CHQ on July 19-20, 2016 with
participants from all major airports. This universal
IP implementation had been initiated at New ATS
at IGI and the stations connected with IGIA.
• Cyber Security for CNS/ATM Systems: Formulation
of Information Security Policy for CNS/ATM
system completed. Initiative for creation of Cyber
Security Cell for CNS/ATM systems has been
taken.
• AOCC integration work with Seven Automation
systems at Lucknow, Jaipur, Amritsar, Agartala,
Patna, Bhubaneswar and Trichy have been
undertaken.
• Installation and Commissioning of CCTV and
Access control system for ANS operational units.
The work is completed at most of the stations.
Average availability of Navigational & Surveillance aids
for the period is 99.87%. This availability of Navigation
and Surveillance facility is at par with other leading Air
Navigation Service Providers.
GAGAN
To add geographical redundancy in GAGAN system,
AAI in coordination with M/s Raytheon has established
third Indian Master Control Centre (INMCC) in Delhi.
Installation and testing of the same has been
completed. Delhi INMCC is planned to be integrated
with GSAT-15 already launched by ISRO.
AAI retrofitted its flight calibration aircraft for SBAS
operations for conducting flight validation of draft
Instrument Approach Procedures to LPV minima.
As per directives from Inter-Ministerial Group to
promote GAGAN in Non-aviation sectors, AAI
organized various meetings and workshops during
2016. A concept of Short Message Service (GAMES)
37
22 nd
Annual Report 2016-17
using GAGAN is being evolved and will be
implemented soon. AAI had meeting with Indian
National Centre for Ocean Information Services
(INCOIS), Snow and Avalanche Study Establishment
(SASE) and Indian Meteorological Department (IMD)
for utilization of GAMES to provide specific, reliable
alert messages to various users. An MoU with INCOIS
is in the process of execution in this regard.
Under the United States - Aviation Cooperation
Program (US - ACP), the AAI has signed a contract with
KPMG for conducting “Business promotion of GPS
Aided Geo Augmented Navigation (GAGAN) system
for utilization in the Indian aviation sector, South Asian
Association for Regional Cooperation (SAARC)
countries and beyond”.
India’s first satellite navigation system “GAGAN”
planning to expand its coverage beyond Indian
boundaries. With this objective, India coordinated with
Sri Lanka during the 9th session of the Sri Lanka-India
Joint Commission held on February 05, 2016 at
Colombo for expanding cooperation in the aviation
sector by building capacity for aircraft accident
investigation, aeronautical SAR, use of Indian Satellite
System GAGAN, sharing of training opportunities etc.
Government of Thailand also coordinated with India
for use of GAGAN service to conduct performance test
in Thailand. AAI along with ISRO coordinated with
states in Mid-East ICAO region. A team of Arab Civil
Aviation Commission (ACAC) expressed interest in
utilizing the GAGAN services in ACAC region and
visited GAGAN Bengaluru on the feasibility of GAGAN
service in ACAC region. Discussion on MoU is in
progress.
Central Air Traffic Flow Management (C-ATFM)
Area of immediate focus for ANS is implementation of
Air Traffic Flow Management for balancing Traffic
Growth and capacity which places the AAI as one of
the few ANSPs in the world to implement the system
facilitating regional harmonization.
The ATFM will ensure that the available airspace is
optimally and dynamically shared among all airspace
users and will streamline the flow of air traffic across
Indian airspace.
Implementation of ATFM measures in Indian airports:-
• Phase I commenced on January 16, 2017 for
Six airports
• Trial operations for establishment of AMC
[Airspace Management Cell] was conducted
at CATFM Centre, IGIA, New Delhi from
February 27 to March 10, 2017.
• Phase II October 2017 –Nation wide application
38
• Training on ATFM was conducted for Indian
Air Force Officers at CCC, New Delhi on
October 06 and 07, 2016.
Ease of Doing Business in Construction Permits
Govt. of India has entrusted the AAI (GSR 751E) to
issue No Objection Certificate (NOC) for height
clearance to ensure that the build environment around
the airports does not impact the safety of aircrafts and
its passengers, while they are landing or departing
from an airport.
A transparent and paperless application process for
height clearance of structures around the airport was
implemented on December 30, 2015. Applicant can
file application at his convenience from anywhere.
System is fast, transparent and paperless. NOC for
height clearance is issued online and applicant or local
bodies can download & print NOC at their end. If AAI
NOC is not applicable, then also an online letter is sent
after auto-settle. Further the NOCAS2 website also lists
the history data of all NOCs issued to enable total
transparency.
Colour Coding Zoning Maps - CCZMs of 20 cities, i.e.,
Delhi, Mumbai, Navi Mumbai, Kolkata, Chennai,
Guwahati, Bengaluru International Airport & HAL
Bengaluru, Hyderabad, Nagpur, Jaipur, Amritsar,
Ahmedabad, Lucknow, Patna, Cochin, Aurangabad,
Ranchi, Bhubaneswar, Puducherry and Trivandrum
have been prepared and uploaded in NOCAS2
website.
All the above colour coded zoning maps are available
on AAI NOCAS website in pdf form. These colour
coded grids can also be opened on city maps so that
applicant is able to locate his plot and found out home
grid for his plot/site. This way he will be able to know
what height is permitted without NOC from AAI. For
higher height if so required, he may file online NOC
application to AAI through NOCAS.
• Meetings held with Ministry of Urban
Development/ULB’s regarding Ease of Doing
Business. A Workshop on "Aerodrome
Safeguarding and Building Height Regulations" is
being organized jointly by AAI and CREDAI on
27.10.1016 at Juniper Hall, India Habitat Centre,
New Delhi. The workshop was inaugurated by
Hon'ble Minister of State for Civil Aviation and
attended by various stakeholders. Various points
were discussed/debated to ease the process.
• ICAO Aeronautical study for GIFT Ahmedabad and
MMRDA Mumbai Fact finding mission was held.
Search and Rescue
AAI conducted full scale Search & Rescue Exercise
(SAREX-2017) at Kolkata on March 10, 2017. The
exercise was aimed to test and improve operational
plans, provide learning experience and improve liaison
and coordination skills. The exercise was conducted on
a realistic basis and helped to demonstrate and assess
the true effectiveness of training and the operational
efficiency and competence of the SAR service.
The exercise was preceded by one day seminar on
March 09, 2017, on the topic of ‘SAR Preparedness
and Challenges’ which was attended by many SAR
stakeholders including the local administrative
authorities.
Air Space Management Initiatives
During the last year, ASM Directorate has established
the following:
• 25 Temporary Segregated Area (TSA)/Temporary
Reserved Area (TRA) established for Indian Air
Force/Indian Navy
• 14 TSA/TRA under process
• 11 Conditional Routes (CDRs) established (CDR1-2,
CDR2-7, CDR3-2)
• 10 CDRs under process
• AFI-APAC-MID ATM Special Coordination Meeting
(AAMA/SCM) was held at Mumbai on
January 19 to 20, 2017.
• Class C Airspace Trial Operations at Hyderabad,
Cochin and Chennai.
• Helicopter VFR Routes RGI Airport, Shamshabad
and Begumpet Airport, Hyderabad submitted for
publication.
• First indigenous designed RNAV (GNSS) Procedure
RWY 05 & 23 Ahmedabad International Airport
(VAAH) Published.
Flexible Use of Airspace
The implementation of Flexible Use of Airspace (FUA)
has received a major fillip through the unanimous
adoption of the Manual on Flexible Use of Airspace in
India V1.0 which provides for systematic
implementation of FUA.
The National High Level Airspace Policy Body (NHLAPB)
along with its National Airspace Management
Advisory Committee (NAMAC) has made significant
strides in ensuring rapid progress in the
implementation of FUA, leading to equitable sharing
of airspace among all airspace users.
Flexible Use of Airspace initiative which leads to
equitable sharing of airspace among all Airspace
Users, made great strides with the second meeting of
the National High Level Airspace Policy Body along
with the Airspace Advisory Committee. Continued
cooperative efforts of AAI and IAF resulted in
establishment of multiple conditional routes. It has
resulted in enhanced operational efficiency, fuel
savings to the Airlines and reduction in carbon
emission and has been well received by all the
stakeholders.
• Eleventh meeting of "National Airspace
Management Advisory Committee (NAMAC)" was
held at Rajiv Gandhi Bhawan, New Delhi on March
29, 2017.
• 5th meeting of NHLAPB was conducted on
October 28, 2016 at Rajiv Gandhi Bhawan, New
Delhi.
• 10th meeting of NAMAC was conducted on
October 21, 2016 at Rajiv Gandhi Bhawan,
New Delhi.
• A meeting of NAMAC Sub-committee for MATZ
was conducted on September 08, 2016 at Rajiv
Gandhi Bhawan, New Delhi.
Training and Skill Development
CATC India and ENAC the Aviation University in
France, have jointly developed and conducted two
One Year Advanced Masters’ Program in ANSP
management in India with the objective of training the
Operational Supervisors and Technical Managers of
middle and higher level management of the Air
Navigation Services Department in AAI. First batch of
this program completed the course in March 2016.
This will ultimately enable the ANS personnel of AAI to
successfully manage the growth-oriented challenges
and contribute to continued excellence of Air
Navigation Services in India.
More than 500 students have been provided with
industrial training in the CNS technical field as part of CSR.
Aviation Safety
Aviation Safety Directorate performs the Safety
oversight functions of AAI, by managing the safety
aspects of various activities at AAI managed airports
including Air Navigation Services & Airport Operations.
It also assess compliance of its airports with ICAO
Standards & Recommended Practices and National
Regulations as laid down by DGCA.
In order to achieve this goal, Aviation Safety
Directorate carried out Safety Audits of all functional
AAI owned Aerodromes and Civil Aerodromes at
regular intervals, thus, determining the effectiveness
39
22 nd
Annual Report 2016-17
of Safety Standards and verifying the efficacy of Safety
management against hazards.
In the year 2016-17, Aviation Safety Directorate
conducted audit of 32 airports. Audit reports were
sent to the concerned REDs and the airports for
addressing non-compliances identified during the
Safety Audit and Action Taken Reports from the
respective airports were also received timely.
In an effort to inculcate safety culture and bring
awareness about safety, last year CHQ had trained 201
officers on SMS under seven training programme
conducted across India. Further, under the “Train, the
trainer programme”, 2200 officials were trained at
various airports by Safety Managers. This year, it is
targeted to enhance the number of trainees by 20%.
Digitization process for Hazard Identification has
already been started and is being used by 25 airports.
It is aimed to include all the licensed airports this year.
Cost of Audit in terms of deployed manpower has
been reduced in 2016-17 by 12.5%. It is proposed to
reduce it further by 10%.
Airport Systems
1. 100% utilization of the Targeted Capital Budget –
The Expenditure made is of ` 104 crore against
allocated budget of ` 98.89 crore.
2. Projects Completed and Commissioned :
• Installation of additional 906 Cameras/
Upgradation of CCTV System at following 24
stations has been completed by
December 2016: Jaipur, Udaipur, Agartala,
Dibrugarh, Dimapur, Guwahati, Imphal,
Bagdogra, Ranchi, Calicut, Coimbatore,
Tirupati, Ahmedabad, Pune, Vadodara,
Jammu, Pathankot, Safdarjung, Srinagar,
Jaisalmer, Vijayawada, Hubli, Kadapa & Juhu.
• Upgradation of CCTV storage capacity at
3 Airports viz. Amritsar, Goa & Raipur has been
completed.
• Flight Information Display System has been
successfully installed at following 7 Airports. :
Agartala, Amritsar, Bagdogra, Bhuj,
Guwahati, Pune & Vijayawada.
3. Work Awarded :
• Flight Information Display System work was
awarded at 17 Airports viz. Silchar, Jorhat, Imphal,
Dimapur, Bhavnagar, Jabalpur, Rajkot,
Pondicherry, Tuticorin, Salem, Dehradun (NTB),
Dibrugarh, Aurangabad, Ahmedabad (Dom),
Trivandrum (Dom), Calicut, Lucknow (Int’l).
40
• SITC of 81 ETDs at various airports with 1 year
onsite warranty & 5 years CAMC with spares &
consumables. ( 6/1/2017)
• SITC of 52 Registered Baggage XBIS with 1 year
onsite warranty & 5 years CAMC with spares
(13/1/2017)
• SITC of 17 Single View XBIS at various airports with
1 year onsite warranty & 5 years CAMC with
spares ( 3/1/2017)
• SITC of 14 Dual View Cargo XBIS at various airports
with 1 year onsite warranty & 5 years CAMC with
spares ( 29/3/2016)
• Repeat Order – 43 ETDs ( 19/7/2016)
• Upgradation of AAI Cargo e-commerce portal
situated at nT Hub, Operational Offices, Rangpuri,
New Delhi.
4. New Terminal Building Projects:
• Work completed:
SCCTV, FIDS & IP EPABX System installed &
commissioned at NTB Tirupati.
• Work awarded:
SITC of SCCTV, FIDS & PA System at Jammu
Airport.
SITC of CCTV in Dedicated Network & FIDS & IP
EPABX at Vadodara Airport (25/4/2016)
SITC of SCCTV System at NTB Projects of Pakyong,
Kishangarh, Hubli & Belgaum Airport.
SITC of FIDS at NTB Projects of Pakyong,
Kishangarh, Hubli & Belgaum Airport.
5. Outstanding Efforts:
• Video Conferencing System from CCCR at ATC
Tower Delhi to COSAH at Rashtrapati Bhawan &
ACCRs at 12 Airports i.e. Mumbai, Kolkata,
Chennai, Trivandrum, Nagpur, Hyderabad,
Ahmedabad, Bangalore, Guwahati,
Chandigarh,Jaipur and Lucknow has been
installed & commissioned during August 2016
with total cost of ` 12.50 crore.
The work was awarded on February 19, 2016 and
delivery of VC equipment was completed up to
March 31, 2016. Installation work was completed
within stipulated time of five months i.e. by
July 18, 2016. Secretary, Civil Aviation has
appreciated the efforts put in by AAI to install &
commission the Video conferencing system within
the stipulated timeline.
 SCCTV, FIDS & IP EPABX System has been installed
& commissioned at NTB Vadodara with total cost
of ` 4 crore
Operations
1. Jaipur and Lucknow Airports are upgraded and
equipped with precision approach CAT-IIIB
operations. The task to upgrade Jaipur and
Lucknow Airport to ILS CAT-IIIB operations is
accomplished by AAI on the assigned target date.
With effect from December 08, 2016, Jaipur and
Lucknow Airports have become CAT-IIIB
compliant airports.
Earlier Jaipur Airport was equipped with ILS,
precision approach CAT-I and with this procedure,
aircraft were able to land when Runway Visual
Range of 550m or more.
Similarly, Lucknow Airport was also equipped with
ILS Precision Approach CAT-II and under this
procedure aircraft were only able to land with
Runway Visual Range is 300M or more.
Now Jaipur and Lucknow Airports are 2nd and 3rd
airports in India equipped with ILS precision
approach CAT-IIIB operations. At Jaipur and
Lucknow Airports, aircraft will be able to land with
Runway Visual Range 50m.
2. In the year 2016-17, approvals were obtained from
DGCA for development of infrastructure under
change management at airports for 76 projects
like, installation of Passenger Boarding Bridge,
Extension and Strengthening of Runway,
Expansion of Apron, Construction of Runway End
Safety Area and Installation of Solar Panel at
Ahmedabad and Kolkata Airports.
3. The issues raised by Federation of Indian Airlines
(FIA) regarding provisions of Night Parking Policy
were addressed, on recommendations of
Secretary, Civil Aviation. The revised Policy is
effective since September15, 2016, after the
approval by AAI Board in its 170th Board Meeting
held on August 11, 2016.
4. The target date for implementation of CAT IIIB
operations from Amritsar and Kolkata Airport is
June 2017 and December 2017 respectively.
5. In order to ensure high cleaning standards at
airports, QCBS (Quality & Cost Based Selection)
based MESS (Up-keeping) tender has been
introduced at airports by inviting reputed
specialized agencies.
The QCBS based MESS (Up-keeping) tenders are
being implemented at Chennai & Kolkata Airports
and at other airports where Annual Passenger
Traffic is 1.25 million or more.
6. In the 2016 ASQ Survey, Jaipur International
Airport tied for first place in Best Airport by Size &
Region in the 2 to 5 million passengers category
and Srinagar International Airport tied for second
place in Best Airport by Size in the 2 to 5 million
passengers category.
Technical
1. AAI has inducted M/s Rosenbauer AG, Austria
make total 50 Airfield Crash Fire Tenders (ACFTs)
for 23 airports of AAI at Coimbatore,
Bhubaneswar ,Paykong, Varanasi, Udaipur,
Khajuraho, Dehradun, Bhopal, Aurangabad,
Vadodara, Indore, Rajkot, Gaya, Ranchi, Raipur,
Agartala, Dimapur, Imphal, Lengpui, Dibrugarh,
Vijayawada, Surat, and Tirupathi. The cost of each
Rosenbauer ACFTs is ` 3.98 crore. ACFTs meet
ICAO and NFPA-414: 2012 norms.
2. AAI has inducted total 13 Bomb Detection &
Disposal Squad (BDDS) & Dog Squad vehicles at
Agartala, Amritsar, Bagdogra, Chennai,
Guwahati, Imphal, Jaipur, Kolkata, Raipur,
Varanasi, Ahmedabad, Calicut, and
Thiruvananthapuram airports of AAI. These
specialized vehicles have been designed as per
requirement of Bureau of Civil Aviation Security
(BCAS) and to meet present security requirement
in India. The cost of one BDDS & Dog Squad
vehicle is ` 14,55,700/-.
Planning
1. International flights have started operating at
CHANDIGARH AIRPORT w.e.f. September 2016.
2. Extension of runway to 12000' completed at
JAIPUR AIRPORT, commissioned along with CAT
IIIB ILS in October 2016.
3. Operationalisation of BATHINDA (CE) in December
2016.
4. Starting of flight operations at KANPUR (CE)
w.e.f. December 10, 2016.
5. Bhumi pujan of New Civil Enclave at ADAMPUR on
December 16, 2016.
6. New Integrated passenger Terminal Building
with a capacity to handle 700 peak hour
passenger (500 Domestic and 200 International)
and allied works completed at a cost of
` 174 crore has been awarded 4 - Star rating by
GRIHA on March 02, 2017 for TIRUPATI AIRPORT
7. Construction of New Interim Domestic Passenger
Terminal Building with a capacity to handle
500 peak hour passengers along with car
41
22 nd
Annual Report 2016-17
park, approach road & associated facilities,
completed at VIJAYAWADA AIRPORT at a cost of
` 161.635 crores within a limited period of 11
months. Inaugurated on January 12, 2017 and
commissioned on February 03, 2017
8. Expansion of Apron for providing additional 10
A-320 type of aircraft night parking bays,
completed at VIJAYAWADA AIRPORT on
December 14, 2016 at a cost of ` 17.63 crore.
9. Construction of part parallel taxi track for new
runway 06-24 at both ends of runway and
provision of RESA of 240 x 90m for runway 06
completed at MANGALURU AIRPORT on
December 27, 2016 at a cost of ` 29 crore.
10. Extension, widening and strengthening of
existing Runway for operation of Code-C (A-320)
aircraft from 1674m x 30m to 2600 x 45m,
construction of new Taxi Way, Apron, Isolation
Bay, Perimeter road, Drain and associated
works, etc. completed at HUBLI AIRPORT on
August 31, 2016 at a cost of ` 60 crore.
11. New Integrated passenger Terminal Building
with a capacity to handle 700 peak hour
passenger (500 Domestic and 200 International)
and allied works completed at a cost of
` 161 crore at VADODARA AIRPORT, was
inaugurated by the Hon'ble Prime Minister of
India on October 22, 2016 and commissioned on
December 01, 2016.
12. Extension of New Integrated passenger Terminal
Building by providing western finger for 3 Code-C
in-contact bays or 2 Code-E in-contact bays
completed on June 2016 at a cost of
` 38.76 crore at DABOLIM AIRPORT, GOA.
13. Runway and apron works completed at TEZU
AIRPORT. Airport will be operationalised with
renovated Old Terminal in September 2017.
14. Commissioning of ILS Category IIIB at Jaipur and
Lucknow airports. Installation of ILS Category IlIB
in progress at KOLKATA and AMRITSAR AIRPORT.
15. Runway resurfacing work completed at KOLKATA
AIRPORT.
16. Expansion of Security Hold Area and face lifting
completed in AGARTALA AIRPORT for ease of
passenger movement.
17. City Side canopy installed and face lifting of
Terminal Building completed at DIMAPUR
AIRPORT for convenience of passengers.
18. Expansion of Security Hold Area completed at
GUWAHATI AIRPORT for ease of passenger
movement.
42
19. Project Management Consultancy awarded for
development of New Domestic Terminal Building
at LEH (CE) at a cost of ` 251 crore.
20. Project Management consultancy awarded for
development of New Integrated Terminal Building
at LUCKNOW AIRPORT at a cost of ` 1230 crore.
21. Project Management consultancy awarded for
development of New Integrated Terminal Building
at GUWAHATI AIRPORT at a cost of ` 1142 crore.
Cargo
Keeping pace with the fast changes taken place
globally in the EXIM trade, the Cargo Directorate has
taken the following measures in accelerating the air
cargo growth at AAI airports during financial year
2016-17 which are worth-mentioning:-
Major contribution made by Cargo Directorate-AAI
I. In accordance to the road-map prepared by AAI for
the development of Common User Domestic
Cargo Terminals (CUDCTs) at 24 AAI Airports in a
phased manner to facilitate the air cargo
movement. AAI has planned to commission the
CUDCTs during the financial year 2016-17 at the
following airports:-
A) Domestic Cargo Facilities – Ahmedabad,
Raipur, Aurangabad, Bhubaneswar, Ranchi,
Goa
B) International Cargo Facilities – Indore &
Bhubaneswar
C) International Courier Terminal – Chennai &
Kolkata (Departmentally managed)
II. AAI has been able to convince the approving
authority i.e. MoCA for increase of 5% in the cargo
tariff at Non-AERA airports for the period 2016-17
to 2020-21 which comes to 16.5% increase in the
cargo tariff cumulatively.
III. AAI has empowered its GHA in obtaining
Regulated Agent (RA) status at Chennai Airport
and RA3 status for Chennai and Kolkata airports is
also being expedited. This would lead to
movement of export cargo to European Union
(EU) countries as required and increase the
throughput at the Cargo facility at Chennai.
IV. The augmentation of 25 X-ray machines/Dual
image for AAI managed airports has generated a
great amount of goodwill for AAI.
V. AAI has also placed an order for the procurement/
supply & installation of 22 new x-ray machines
(single view) at the existing/upcoming cargo
facilities at Tier-II/Tier-III cities.
VI. A proposal of procurement of 25 Explosive Trace
Devices (ETD) equipments to be positioned at
various cargo facilities at AAI managed airports,
has been mooted through Security Directorate.
VII. The up-gradation of the web-based on-line existing
I.T. System titled ‘ICMS’ of the Cargo Dte. has
been agreed for interim/permanent development
to meet with the latest technology and additional
features such as Mobile-application for cargo
transactions. The upgradation has increased the
throughput from the existing I.T. System.
IX. Re-introduction of Customer Satisfaction Index (CSI) at Chennai / Kolkata Airports and rating(s) improved at
both airports and continuing. The following tabulated details would make the issue crystal clear:-
Cargo Terminals Respondent
at Category
CSI
Chennai Exporters 4.36
Importers 4.29
Kolkata Exporters 4.17
Importers 3.97
Overall CSI of both the Air Cargo Terminals
It is observed that CSI for both the Cargo Terminals have increased considerably as compared to the previous
Customer Satisfaction Survey which is well appreciated by AAI Management.
X. Creation of separate cargo Revenue-heads
introduced by Finance Dte. w.e.f. April 01, 2016
which would reflect the actual potential of the
Cargo Dte. in financial terms.
XI. The game-changer decision taken by AAI Board in
its 168th meeting on March 14, 2016 when a
100% owned subsidiary of AAI was decided to be
incorporated with authorized capital of
` 25 crore initially. The Subsidiary company
namely AAI Cargo Logistics and Allied Services
Company Ltd (AAICLAS) finally came in to
existence w.e.f. August 11, 2016.
XII. In order to promote the pharma business from
Chennai airport, Air-conditioning facility created
by converting one of the hall for Import pharma
and Old APEDA building for Export pharma, as an
interim measure.
XIII. AAI has reduced space rentals (paved/un-paved) by
50% for upcoming Cargo Terminals at AAI Airports
to enable AAI to appoint O&M agencies thereby,
ensuring the harmonious development of cargo
infrastructure & cargo facilities on pan India basis.
VIII.The policy for establishing e-warehouse &
e-channel for the domestic cargo/e-commerce
business potential at 21 AAI Airports identified
and NIT/Policy guidelines being firmed-up/freezed
shortly under the proposed plan. The
redundant/un-utilized AAI premises on the city-
side would be made available to e-commerce
players on space-rentals + highest G.T.O. offered
by the prospective bidder.
Round-I Round-II
(July-Dec’16) (July-Dec’15)
Overall CSI CSI Overall CSI
4.32 4.16 4.06
3.96
4.07 3.79 3.72
3.66
4.20 3.89
XIV. Decision on payment of Customs Cost Recovery
charges in respect of customs custodianship
obtained after 2002. However, a review exercise
for seeking the waiver for Customs Cost Recovery
charges for Tier-II/III airports is being formulated
with the advice of MoCA which is under process.
XV. Cargo Dwell time study carried out at major 06
airports on behalf of MoCA for reduction of free
period for clearance of International Cargo.
XVI. Chennai Airport has been projected for ‘Cargo-
Hub’ development by AAI due to its geographical
advantage & being a manufacturing hub.
XVII.AAI Cargo Dte. arrived at the consensus for
evolving a SOP with GHA-M/s BIIL at Chennai and
Kolkata Airport which was pending since 2011.
XVIII.Commissioned International Courier Handling
Operations at Chennai and Kolkata airports and
planned for similar activities at Trivandrum and
Trichy Airports.
XIX. AAI Cargo Dte. has assisted MoCA in preparing
the Air Cargo Community System Report which is
being examined for implementation.
43
22 nd
Annual Report 2016-17
XX. AAI has made a policy to provide the space for
atleast a 10 year lease to the operators of express
cargo freighters and express terminal for
developing the dedicated infrastructure to
improve their operational efficiency.
XXI. AAI under the guidance of MoCA has got the
approval of two Old Building of Air-India at
Chennai Cargo Terminal to be demolished finally
which were hampering the traffic movement of
cargo carrying vehicles.
Future Strategies
AAI is planning to launch CUDCTs during the financial
year 2017-18 at the following AAI airports:-
• Pune, Guwahati, Vijayawada, Tirupati, Ranchi,
Lucknow, Trivandrum, Varanasi, Amritsar, Surat,
Rajahmundry, Srinagar
AAI has also envisaged to undertake International
cargo/courier handling at the following AAI airports
during the financial year 2017-18:-
• Pune, Jaipur, Aurangabad, Vizag, Madurai, Trichy
The last but not the least AAI has always been in the
forefront and pioneer in providing of state-of-art cargo
infrastructure and facilities to facilitate EXIM trade and
will continue be in the service of the nation.
Information Technology
Placement of order for Implementation of
Biometric Access Control System at 43 Airports
Based on BCAS guidelines for Implementation of
Biometric Access Control System at 43 Airports for
staff & vehicle entry, purchase order has been placed in
first phase.
Placement of Order for ePOS at 15 Airports for
DFS
Purchase order for 55 e-POS machines at 15 Airports
for Duty Free Shop has been placed for the purpose of
ensuring check on revenue leakage.
Strengthening and Augmentation of Information
& Perimeter Security
Based on the report received on Audit of IT
Infrastructure carried out by high level committee
comprising of Cert-In, NCIIPC, STQC & DieTY, following
measures have been taken to improve Information Security:-
• Installation of SIEM, VAPT, Email and web
gateway, Publication of AAI ISMS Policies
(November 2016) and imparted training on
Information Security in March 2017.
• New Endpoint security software was rolled out.
44
• Controlled user management and remote
connections were implemented and carried out
VAPT and risk assessment.
Smart India Hackathon 2017
Under the aegis of Ministry of HRD, AICTE in
collaboration with other partners, AAI has conducted
this unique initiative named “Smart India Hackathon
2017” that aims to harness creativity and talent of
students across India. The intent of the HACKATHON
2017 was to involve all the technology institutions
across India (6400+ colleges and 30 lakh students) to
help create digital solutions, and to think out of the
box, generate innovative and disruptive sustainable
solutions for the problems faced by each of the
Ministries. AAI on behalf of Ministry of Civil Aviation
has organized Grand Finale at CATC, Allahabad having
participation of 55 teams.
Airsewa POC
Airsewa Portal with Mobile App for Android and IOS
has been launched in November 2016 as a proof of
concept for facilitating passengers to submit & track
grievances with provision of flight information,
schedules and other Airport information.
RCS Bidding
Successfully organized bidding process for inviting
proposals from Airline operators by implementation of
e-bidding portal through MSTC for Regional
Connectivity Scheme (RCS) under UDAN initiative of
MoCA. The requirement of RCS E-bidding was complex
and different in nature and was not available in the
present portal of SAP E-taps & NIC CPPP. Customized
portal through MSTC was developed for bidding
events in next 10 years. First event has successfully
been completed.
NIC CPPP
E-tendering application in AAI was switched-over from
E-TAPS to NIC CPPP E-Tendering portal at
etenders.gov.in. Application was rolled-out at CHQ
initially, from 23.02.2017 and later in RHQ NR with
effect from 06.03.2017 and other Regions with effect
from 20.03.2017.
Network Bandwidth
To give faster access to airports the bandwidth for 72
airports upgraded successfully. Bandwidth for 29
airports has been doubled and for 43 airports it has
been tripled. In addition to this the corporate internet
bandwidth has been doubled from 100 Mbps to 200
Mbps. Due to this the access to enterprise applications
like SAP, AIMS, eOffice etc. has become faster. The
speed of internet has also increased
Upgradation of AIMS
Project has been initiated to completely revamp the
AIMS application by provision of new hardware,
refreshing of middleware software and upgradation of
application
IT works for New Terminal Building at Vadodara
Futuristic IT network planned and implemented at
Vadodara Airport making it capable of becoming a
smart airport. Similar network is being created at
Kishangarh (Ajmer) airport. All new terminals in future
shall have similar common use IT infrastructure.
IT Infrastructure for New Operations Office at
Mumbai
New building has been equipped with modern IT
infrastructure. All devices are low energy consuming
complying to latest international industry standards.
Complete building is Wi-Fi enabled.
Video Conferencing Facility
Video conferencing facility has been provided to 10
locations including CHQ, 5 RHQ’s, Kolkata and
Chennai airport. The facility is also capable of providing
conferencing facilities with any external devices.
Complaint KIOSK
10 airports have been provided with 5 complaint
kiosks each to facilitate the airport users in providing
their feedback and grievances.
RISKS AND CONCERNS
The risks in AAI may be categorised in four categories;
operations, strategic, compliance and financial.
Operational Risks are risks incurred by the
organisation’s day to day activities. Hazardous
activities affecting safety, inadequate financial
processes and IT back-up systems are amongst the
most typical operational risks within the Aviation
industry. Other Operational risks identified include
potential degradation of service delivery standards,
unforeseen disruptions to flow management,
maintenance challenges to aging facilities.
Strategic Risks are risks having to do with the
positioning of AAI within its environment. These are of
utmost importance and are often dealt with at Board
Level. The most common risks comprise of decisions
related to pricing, development of airport
infrastructure (either new airports or expansion of
existing airports, finding new products or markets,
entering into JV’s). Other strategic risks include
alliance decisions which may affect an enterprise’s
ability to decide for itself and positioning decisions
which will affect future operations decisions.
Compliance Risks regard the adherence with external
regulations and legislations and terms of contract. Not
following IATA recommendations and not adhering to
national and international laws may lead to heavy
penalties and above all loss of reputation. Also breach
of contract, even though unintentionally, may bring
legal consequences impacting AAI.
Financial Risks – AAI’s operations are exposed to a
variety of financial risks: credit risk, liquidity risk,
interest rate risk and foreign currency risk.
AAI understands the significance of risk management
and its criticality for organization’s success and
business continuity. Thus, in AAI the Risk Management
has been embedded in each function to ensure its
effective implementation. Furthermore, the decisions
at every level including Board level are taken
considering the risk involved. Also, Audit function
reports the efficacy of risk management controls
which helps the management in improving the
measures required to be taken in this regard.
INTERNAL CONTROL SYSTEMS AND THEIR
ADEQUACY
AAI has an internal control system commensurate with
the size, scale and complexity of its operations.
It maintains all its records in SAP system and the
workflow and approvals are routed through SAP.
The internal audit department monitors and evaluates
the efficacy and adequacy of internal control system in
the AAI, its compliance with operating systems,
accounting procedures and the policies at all locations.
Based on the report of internal audit function, the
airports undertake corrective action in their respective
areas and strengthen the controls. significant audit
observations and corrective actions thereon are
presented to the audit committee of the Board.
MATERIAL DEVELOPMENTS IN HUMAN
RESOURCES, INDUSTRIAL RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED
Human capital has continued to be the key engine for
our growth and aspirations. AAI has been constantly
reviewing its HR policies and practices to keep abreast
with the market changes and has embarked upon
several initiatives to focus on creating a positive work
environment that provides employees with ample
growth and development opportunities as well as
ensuring high levels of motivation and engagement.
Measures for safety of employee, scientific training,
welfare, performance based appraisal system,
compensation, career growth and social security
schemes continued to remain key priority of the AAI.
45
22 nd
Annual Report 2016-17

The following are the achievements/major events during financial year 2016-17 of HR Directorate (Policy Cell):

Details of Achievements/Major events

1. In order to mitigate difficulties faced by physically challenged employees, it has been decided by the
Management that an additional lump sum amount of ` 2400/- per month will be granted towards
Conveyance/Transport Allowance to Blind or Orthopedically handicapped with disability of lower
extremities and deaf & dumb employees. The said allowance shall be allowed to an orthopedically
handicapped employee if he or she has a minimum of 40% permanent partial disability of either one or
both upper limbs or one or both lower limbs or 50% permanent partial disability of one or both upper
limbs and one or both lower limbs combined.
2. The Performance Related Pay to Executives and Performance Linked Payment to Non-Executives for the
year 2010-11 to 2014-15 has been distributed which was pending for the last 06 years.
3. Interview for various junior level posts of Group C & D has been discontinued w.e.f. December 31, 2015
as per Govt. guidelines.
4. Biometric Attendance System/Office Timings.
5. The category of airports (Dehradun, Vijayawada, Rajahmundry, Indore, Varanasi & Visakhapatnam)
have been upgraded.
6. As a step further towards the welfare and betterment of women employees, Management has decided to
extend the benefit of maternity leave of 180 days to the AAI women employees in case of surrogacy with IVF.
7. The existing selection process of REDs/APDs Grade-I to IV (Ex-cadre) has been reviewed and has been
modified. A procedure of creation of a talent pool has been established and a panel will be constituted
for two years for timely placement of Airport Directors at various airports, as & when falls vacant in
the shortest possible time.
8. The job specification for the recruitment of women candidates to the post of Junior Assistant
(Fire Services) in AAI has been introduced for the first time.
9. Performance Management System (PMS) has been made online for E-8 & E-9 in SAP-ERP, PMS Module.
10. Digitization of PMS data has been done for effective administration of PRP Scheme.
11. Recruitment Exercise has been carried out for filling up 2000 posts of executives in various cadres
namely, ATC, CNS, HR, Finance, Cargo, Security, Operations, Technical, Public Relation, Company
Secretary & others.

REPRESENTATION OF SC/ST/OBC & PERSONS WITH DISABILITIES AS ON MARCH 31, 2017

The manpower strength of AAI is as under:

Total No. Total No. % of SC Total No. % of ST Total No. % of OBC

of Emp. of SC Emp. Emp. of ST Emp. Emp. of OBC Emp. Emp.
17379 3866 22.24 1282 7.37 3500 20.13

Total number of employees and the number of persons with disabilities in AAI as on March 31, 2017

Total No. of Visually Hearing Orthopedically Total No. of % of PWDs

Employees Handicapped Handicapped Handicapped PWDs
17379 22 15 150 187 1.07

46
FACILITIES AVAILABLE FOR PERSONS WITH
DISABILITIES AT VARIOUS AAI AIRPORTS:
(a) Smooth ramps with anti-skid flooring of the
comfortable gradient are provided at the terminal
building entry points and kerb area.
(b) Sensor fitted doors/manned doors at entrance
are provided for easy accessibility. Door opening
are wide enough for easy access for wheelchair
passengers.
(c) Specially designed separate handicapped toilets
are provided with appropriate signages.
(d) Passengers’ elevators provided to access all levels
of terminal building taking care of the door
opening to allow biggest size of wheelchair.
(e) Wheelchairs are available with Airport Manager
and Airlines on demand.
(f) 850mm high and 250mm deep facilitation
counters provided for easy accessibility of
passengers on wheelchair at busy airports.
(g) Reserved parking spaces with signages have been
provided on city side of Departure and Arrival
Terminals at various airports.
(h) 5m-10m wide kerb is provided in front of terminal
building, which is directly connected to road with
smooth ramp. From kerb side, passenger can
board the Taxi/Car. For the easy access of
wheelchair special cuts and slops are provided in
the pavement.
OUTLOOK
Notwithstanding the challenges in airports
infrastructure, the attractiveness of airports to industry
investors and infrastructure specialists remains strong,
with traffic growing strongly worldwide. The outlook
for the airport sector remains positive with the
industry’s growing need for capital, pressures on
government finances, and infrastructure investors
seeking higher yield investments. The environment in
which AAI operates is dynamic and changing and AAI
would be able to respond to changes in the
environment.
47
22 nd
Annual Report 2016-17
THE ANNUAL REPORT ON
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. A brief outline of the AAI’s CSR Policy,
including overview of projects or programs
proposed to be undertaken and a reference to
the web-link to the CSR policy and project or
programs.
AAI’s approach towards CSR and Sustainability is
to empower under-privileged communities near its
airports so as to promote an environment of
inclusive growth. AAI’s CSR and welfare activities
are committed to create and support programmes
that bring about sustainable changes in society
including through education.
Its CSR and welfare activities centers around
promoting education with special emphasis on girl
child, eradicating hunger, promoting preventive
healthcare and sanitation.
Also, in order to reflect the rich culture and the
ethos of the States of India, AAI has come up with
a plan to depict the art and cultural tradition of a
State through its airports. This will make the
passengers feel a unique sense of identity with the
airport and make them aware of the glorious
cultural traditions, local art, architecture, history
and heritage of the State. In the period ahead, our
airports will be strong brand ambassadors of the
cultural ethos of the State.
AAI’s Board amended the CSR policy of AAI on
June 06, 2017. The detailed CSR Policy of AAI is
CSR spend spread (in %)
1.74
0.03
46.95
Rural Development Education
Women Empowerment Health
48
Annexure - C
available on its website at https://www.aai.aero/
en/corporate/csr-policy.
The overview of various CSR projects and
programmes undertaken by AAI has been
provided in the Corporate Social Responsibility &
Sustainability Report section of the Annual Report.
2. Composition of CSR Committee
The CSR Committee comprises of following:-
(i) Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.) as
Chairperson
(ii) Dr. Guruprasad Mohapatra, IAS as Member
(iii) Shri Sudhir Raheja as Member
(iv) Shri Anuj Aggarwal as Member
3. Average net profit of AAI for last three
financial years: ` 3003.02 crore
4. Prescribed CSR Expenditure (two percent of
the amount as in item 3 above): ` 60.06 crore
5. Details of CSR spent during the financial year:
a) Total amount to be spent for the financial year:
` 60.06 crore
b) Amount unspent, if any: Nil
2.01
2.91
11.21
35.14
Environment Others
Sanitation
c) Manner in which the amount spent during the financial year is detailed below ( ` In Crores)
S. CSR Project or Sector in Projects or Amount Amount Cumulative Amount
No. Activity Identified which the Programs outlay spent on expenditure spent:
Project is (budget) the projects upto to the Direct or
covered 1. Local areas project or or reporting through
or other program programs period implementing
2. Specify wise Sub-Heads: agency
the State
and District 1. Direct or
where expenditure
projects or on projects
programs or programs
was 2. Overheads
undertaken
1 Construction of one Sanitation Guwahati, 0.035 0.032 0.032 Direct
toilet block Assam
(gents/ladies) in
Sanskriti Bhawan near
LGBI Airport,
Guwahati, Assam
2 Construction of toilets Sanitation Vizianagaram, 27.00 3.56 26.36 State
in 765 Girls schools in Imphal, Govt./AAI
37 districts on pan Kolkata,
India basis under Behala,
“Swachh Vidyalaya” Meghalaya,
Mission Mumbai,
Pune,
Solapur
3 Providing necessary Sanitation Varanasi, 5.00 4.37 4.89 Commissioner,
support infrastructure UP Varanasi
for operation & Nagar
maintenance of eco- Nigam,
friendly solid waste Varanasi
management system
at VARANASI
including providing 31
tippers, dustbins, etc.
4 Construction of Sanitation Allahabad, 0.30 0.27 0.27 Direct
Community Bio Toilet UP
Complex at Phoolpur,
Allahabad
5 Solid Waste Sanitation Imphal, 0.30 0.03 0.12 Direct
Management - Guwahati
Segregation of waste
and conversion into
manure/recycling
6 Contribution to Sanitation New Delhi 20.00 20.00 20.00 Ministry of
Swachh Kosh for Finance
Swachh Bharat
Initiative
7 Providing Funds for Preventative New Delhi 1.00 0.25 0.25 ALIMCO -
Cochlear Implant health care A Govt. PSU
Surgery to ALIMCO
(Govt. PSU) for 15 under-
privileged children

49
22 nd
Annual Report 2016-17

S. CSR Project or Sector in Projects or Amount Amount Cumulative Amount

No. Activity Identified which the Programs outlay spent on expenditure spent:
Project is (budget) the projects upto to the Direct or
covered 1. Local areas project or or reporting through
or other program programs period implementing
2. Specify wise Sub-Heads: agency
the State
and District 1. Direct or
where expenditure
projects or on projects
programs or programs
was 2. Overheads
undertaken
8 Provisioning of Preventive Vizianagaram, 0.27 0.11 0.27 District
Medical Equipments health care AP Magistrate -
to VIRRD Hospital Vizianagaram
in
coordination
with the State
Government
9 Provisioning of Preventive Longding 0.2212 0.11 0.11 District
Ambulance to Primary health care Distt, Collector -
Health Centre in Arunachal Longding
Longding Distt, Pradesh Distt,
Arunachal Pradesh Arunachal
Pradesh in
coordination
with State
Government
10 Provisioning of Fund Preventive Vizianagarm 1.50 1.06 1.53 District
for procuring medical health care AP Magistrate,
diagnostic equipments Vizianagaram
to Vizianagarm in co-
Government Hospital ordination
with State
Government
11 Construction of Preventive Gorakhpur, 4.70 0.22 0.22 Direct
shelter/provision of health care UP
facilities/infrastructure
at BRD Hospital
12 Provision of basic Education Rajahmundry, 0.24 0.08 0.08 Direct
amenities at Primary AP
& Upper Primary
School at
Madhurapudi &
Burugupudi village near
Rajahmundry Airport
13 Construction of Education Kolkata 5.98 2.55 2.60 Direct
School near
Dum Dum Airport

50
 S. CSR Project or Sector in Projects or Amount Amount Cumulative Amount
No. Activity Identified which the Programs outlay spent on expenditure spent:
Project is (budget) the projects upto to the Direct or
covered 1. Local areas project or or reporting through
or other program programs period implementing
2. Specify wise Sub-Heads: agency
the State
and District 1. Direct or
where expenditure
projects or on projects
programs or programs
was 2. Overheads
undertaken
14 Construction of Education Kishangarh, 0.49 0.18 0.18 Direct
boundry wall, rain Ajmer,
water harvesting, Rajasthan
playground and
providing sports
equipments, furniture,
jhulas etc. in Govt.
Sr. Sec. School, Village
Silora, Ajmer
15 AAI Skill Development Employment Pan India 7.89 3.94 7.18 CIDC -
Programme in enhancing A society
partnership with vocation set-up by
Construction Industrial skills Planning
Development Corpn. Commission
(CIDC) - Training and
Placement to 2000
unemployed youth/
SC/ST/OBC/Women
& EWS Society
16 Development of home Setting up Raipur 2.00 1.21 1.24 Direct
for senior citizens at Old Age
Manna Camp near Home
SVI Airport, Raipur
17 To operate & manage Environ- Rangpuri, 1.50 0.43 1.13 Direct
the paper recycling mental New Delhi
unit at Rangpuri, sustaina-
New Delhi bility
18 Supply, Installation, Environ- Bhadoi, UP 0.30 0.33 0.33 Direct
Testing and mental
Commissioning of 21 sustaina-
Watt LED solar street bility
light in Distt. Bhadoi
19 Solar lighting in Environ- Rajasthan 1.50 0.39 0.82 Direct
Backward area of mental
Udaipur Distt. sustaina-
bility

51
22 nd
Annual Report 2016-17

S. CSR Project or Sector in Projects or Amount Amount Cumulative Amount

No. Activity Identified which the Programs outlay spent on expenditure spent:
Project is (budget) the projects upto to the Direct or
covered 1. Local areas project or or reporting through
or other program programs period implementing
2. Specify wise Sub-Heads: agency
the State
and District 1. Direct or
where expenditure
projects or on projects
programs or programs
was 2. Overheads
undertaken
20 Contribution to Clean Environ- New Delhi 20.00 20.00 20.00 National
Ganga Kosh mental Mission for
sustaina- Clean Ganga
bility
21 Improving Rural Roads Rural Mathura, 3.78 0.11 2.97 PWD,
connectivity in three Develop- UP Govt. of UP
villages of Mathura ment
Projects
22 Construction of Rural Pakyong, 9.37 0.94 0.94 State Govt.
multipurpose Develop- Sikkum
community hall, ment
Pakyong, Sikkim. Project
23 CSR Training Overhead Pan-India 2.61 0.014 1.621 Direct/IICA
CSR
Activities
Third Party Audit of 0.004 0.004 Tomorrows
CSR (Toilets) Market
Innovators
Pvt. Ltd.,
Noida
TOTAL 115.77 60.19 93.14

6. Reason for not spending the prescribed 2%
amount
AAI, in the financial year 2016-17 had spent more
than the prescribed limit of 2% on CSR and
welfare activities. Though, in the previous years
prior to financial year 2016-17, it could not spend
the entire allocated budget, but AAI have the
approved CSR programmes against the CSR
budget of the respective years and it is making all
possible efforts to implement these programmes
& ensuring 100% spend of the CSR budget of
previous years. Also, some of the CSR
programmes are long term projects and thus,
amount would be spend on progress basis.
AAI is persistently exploring new opportunities
where it can serve the society & the nation and as
a socially responsible enterprise, it is committed to
play a larger role in India’s sustainable
development by embedding wider economic,
social and ecological objectives. It is gradually
increasing its CSR expenditure as can be seen
from the table given below:-

52
 `

7. Responsibility statement of the CSR Committee

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

Dr. Guruprasad Mohapatra, IAS Dr. (Ms.) Tuktuk Ghosh Kumar, IAS (Retd.)
Chairman, AAI Chairperson – CSR Committee

53
22 nd
Annual Report 2016-17

Corporate social
responsibility

Airports Authority of India (AAI) was constituted as a independent to lead a normal and productive life.
statutory corporation with a vision to be the principal This effort will not only bring these underprivileged
aviation service provider in the country. It has the children to the mainstream of life but will also
potential which can turn the wheels of the progress of contribute to national economy.
nation with its strong economic fundamentals and
considerable social relevance. AAI shoulders huge
responsibility of connecting the nation and plays a
crucial role in the economic growth of a country.
AAI has a long standing CSR legacy, which dates back
to period, long before CSR became mandatory for
corporates under Section 135 of the Companies Act.
As a socially responsible enterprise, AAI is committed
to serve the society and is making efforts to enhance
the quality of life of the people from underprivileged
sections of the society especially residing near its
airports. AAI is continuously exploring the
opportunities where it can serve the society as a
responsible corporate entity.
CSR PROJECTS UNDERTAKEN DURING
FY 2016-17
The details of the major CSR activities/programmes
undertaken by AAI during the financial year 2016-17
are provided hereunder: Shraddha - A beneficiary, after a successful Cochlear Implant Surgery

HEALTHCARE Based on this prior experience, AAI has further

(i) Providing funds for Cochlear Implant Surgery
to ALIMCO for under-privileged children
As per the estimate more than 10,000 children in
India are born with congenital hearing loss and
require Cochlear Implant. In view of the fact that
it is very difficult for the under-privileged class to
meet the expenses for Cochlear Implant Surgery
for their children, AAI signed an MoU with
ALIMCO on March 17, 2017 under which it
agreed to support 15 under-privileged children
for conducting Cochlear Implant Surgeries and
the surgeries have been successfully completed
bringing happiness in the life of the children and
their families.
This major CSR initiative of AAI will help the
children to completely overcome their hearing
disability, thereby enabling them to hear and
speak coherently and making them fully
decided to sponsor 100 under-privileged children
in the current financial year 2017-18 for Cochlear
Implant Surgeries by providing funds support of
` 6.69 crore to ALIMCO for under-privileged
children and has entered into an MoU with
ALIMCO on September 04, 2017.
(ii) Financial support to hospitals for procuring
medical equipments
AAI has, during the financial year 2016-17,
provided financial support to the following
hospitals:-
(i) Sri Venkateswara Institute of Research and
Rehabilitation for the Disabled (VIRRD),
a Charitable Hospital in Dwaraka, Tirumala,
Andhra Pradesh – ` 27.40 lac for procuring
additional equipments to provide high quality
orthopedic service to the poorer sections of
society; and

54
 (ii) Maharaja District Hospital, Vizianagaram and practices in schools. AAI’s contribution to Swachh
Maharani Hospital (Gosha Hospital), Vidyalaya mission has also been appreciated by
Vizianagaram, Andhra Pradesh - ` 1.06 crore the MHRD.
for procuring medical equipments for effective
functioning of these hospitals and to render (ii) Construction of Community Bio-toilets
better services to the patients. In an effort towards fulfilling its responsibility
(iii) Ambulance service for North-East towards cleanliness and contributing to the
Government’s flagship campaign “Swachh
AAI has provided an Ambulance with Advanced Bharat Abhiyan”, community Bio-toilets were
Life Support System (ALS) to the Primary Health constructed by AAI at Phoolpur, Allahabad.
Centre at Longding District of Arunachal Pradesh These bio-toilets reduce solid human waste by
with an objective of strengthening the health 90% and converts it into nutrient rich compost. It
services in the remote North-East Region and will is a very innovative and eco-friendly solution to the
definitely provide a big relief to the patients in far problem of human waste in a completely safe
off places. manner, without causing any hazards to the
environment. The pathogens and other disease-
(iv) Construction of Shelter Home at BRD
causing harmful organisms are eliminated
Government Hospital, Gorakhpur
completely and the water thus released is
Considering that BRD Government Hospital in absolutely clear and odourless which later
Gorakhpur, Uttar Pradesh is visited by large becomes useful for irrigation purposes.
number of patients and many camp outside the
This community bio-toilet is self-reliant on power
Hospital failing to secure a bed, AAI, in
as the power is generated through 3 kva solar
collaboration with the Hospital, is constructing
panel for running the electrical motor for filling up
108 bedded ‘Shelter Home’ in the Hospital
the 2000 water litre tank.
premises to provide shelter to the patients and
their relatives. (iii) Contribution to Swachh Bharat Kosh
SANITATION Swachh Bharat Abhiyan is launched to make the
country ‘Open Defecation Free’ and also to make
AAI continuously endeavors in creating footprints in
it ‘SWACHH’ by having adequate arrangements
the nation building efforts of the Government by
for Solid and Liquid Waste Management in all the
significantly contributing on the national missions.
rural and urban areas by October 02, 2019
In response to the ‘Clean India’ campaign of the coinciding with the 150th Birth Anniversary of
Government of India led by Hon’ble Prime Minister of Mahatma Gandhi.
India, AAI has undertaken following initiatives:-
The Government of India has set up Swachh
(i) Construction of Toilets in Government Bharat Kosh to achieve the objective of improving
Schools cleanliness levels in the rural and urban areas
including schools.
AAI has since 2014-15, in co-ordination with the
Ministry of Human Resource Development AAI towards the goal of Swachh Bharat Mission
(MHRD), under the Swachh Vidyalaya initiative, contributed ` 20 crore in the Swachh Bharat Kosh
constructed more than 1500 toilets in approx. during financial year 2016-17.
800 government schools (approx. 80% Girls
schools) thereby benefitting more than 1 lac under-
privileged students studying in these schools. Till
March 31, 2017, more than ` 26.36 crore has
,d dne LoPNrk dh vksj Swachh Bharat Kosh
been spent on the construction of toilets including
` 3.55 crore in financial year 2016-17.
While approx. 25% of the toilets have been
constructed directly by AAI, the remaining toilets
were constructed, on behalf of AAI, by the
various State Governments to whom the required
financial support was extended. Thus, AAI helped
in providing access to functional toilets for
students in government schools and emphasized
on promoting safe and appropriate hygiene

55
22 nd
Annual Report 2016-17
ENVIRONMENT
(i) Contribution to Clean Ganga Fund
River Ganga has been a cradle of human
civilization since time immemorial. Indian people
have immense faith in the powers of the river in
healing and rejuvenation. The vision for Ganga
rejuvenation constitutes restoring the
wholesomeness of the river. National mission for
‘Clean Ganga’ is the implementation wing. A
clean Ganga fund has also been set up to collect
funds that would be used in various activities
relating to the rejuvenation of Ganga River.
To boost the collective efforts, AAI contributed
` 20 crore to GoI's Clean Ganga Fund during the
financial year 2016-17.
(ii) Solid Waste Management Project at Varanasi
The Solid Waste Management (SWM) program at
Varanasi under the Swachh Bharat Mission aims
to put in place a credible Mechanised and
Automated system for solid waste collection and
transportation on pilot basis in identified 14
wards of Varanasi along the ghats of river Ganga
having population of about 1.1 lac. The project is
envisaged to carry out work of sweeping,
collection and transportation of solid waste from
the project area on trial basis initially for 3 years.
The expected fund requirement to implement
and operate the system for three years is
estimated at ` 33 crore.
AAI, under the Swachh Bharat Mission, extended
support towards SWM project at Varanasi to the
tune of ` 5 crore. The said support was provided
by procurement of 41 Tippers, 100 Twin Litter Bin
and balance ` 3 crore (approx.) as contribution to
the escrow account maintained by Varanasi
Municipal Corporation for the project.
Tippers (SBM, Varanasi) provided by AAI
56
EDUCATION
(i) Skill Development Programme
Keeping in mind, the importance of creating a
skilled workforce for the development of our
nation, AAI has realized that it is imperative to
raise capacities of the industry and is thus
committed to meet the current and future
challenges of Skill India. The above initiative is a
bold step in making Mission “Skill India” a
resounding success.
Being an important stakeholder of the
infrastructure and construction sector, AAI
appreciates the urgent need for developing a
skilled and certified workforce for smooth
implementation of construction projects.
AAI has been able to leverage its CSR activities
through this initiative to create a bigger impact
and help in livelihood promotion of people from
remote areas and marginalised sections of the
society. This initiative has been further reinforced
by including a clause in its General Conditions of
Contract which states that 20 percent of the
labour force at any stage of construction on
projects should be trained, tested and certified.
Besides the curriculum, trainees are encouraged
to participate in extra-curricular activities for
personality development. On campus, Job Meets
and Rozgar Meets are arranged to encourage
construction companies to engage with trainees.
Workshop Training Programme
Classroom Session Awarding Certificates to the Participants

(ii) Inauguration of Dum Dum Airport Girls High School

A new school building of Dum Dum Airport Girls High School has recently been inaugurated by
Dr. Guruprasad Mohapatra, Chairman, AAI at Kolkata on June 22, 2017. The construction of the new school
building started in March 2016 and was completed within a record time. The new school building consists of
16 Classrooms, Medical Room, Library, Music Room, space for Mid-Day meal, ramp provision and dedicated
toilets for Divyaang. Apart from the above, the school also has roof-top solar panels, fire alarm system, CCTV
cameras, etc.

Career counselling by AAI at SHARDUL Govt. Girls School, Kishangarh, Rajasthan

57
22 nd
Annual Report 2016-17

OTHER WELFARE ACTIVITIES

Construction of Old Age Home for under privileged women at Mana Camp near S.V. Airport, Raipur
This newly constructed building is a RCC framed structure with 8 dormitories in 4 blocks. Each dormitory has 12
beds and cupboards and is equipped with sound system. Proper mattress, bed sheets, pillows with cover and
blankets are provided along with power point for individual bed.
Sufficient numbers of toilets and washbasins have been provided with ceramic floor and wall tiles.
There are four garden areas equipped with RCC sitting chairs. The approach to the building is a concrete road and
with paver blocks. Mosaic flooring is available in dormitory, dining hall and kitchen. The dining hall extends as an
entertainment room with LED TV and sound system.

Old Age Home, Raipur Distribution of toys to the under-privileged

Holi with street kids by AAI families AAI organised UDAAN-4 Art festival

FUTURE PROJECTS • Assistance for upgrading service of Pathology

Moving ahead with consistent efforts to address the
issues and expectations of the society, AAI has
planned various new initiatives for the year 2017-18.
Some of the major CSR proposals are listed below:
• Setting up of Central Kitchens at Hazaribagh,
Jharkhand and Guntur, Andhra Pradesh through
Akshaya Patra foundation.
• Financial support for establishing “Badlav School”
in Tihar Jail, New Delhi.
• Promotion of health care under preventive by
treatment of pediatric patients who are below
poverty line and suffering from Cancer at Tata
Memorial Hospital, Mumbai.
• Funding of project for fitment of Cochlear
Implants to children with hearing impairment for
100 children.
Department of Cachar Cancer hospital & Research
Centre, Silchar, Assam.
• Financial assistance for purchase of office
furnishing (Table, Chair, Computer etc.),
appliances for the Centre of Excellence in
Education established in the fond memory of over
280 people swept away during the last floods in
Uttarakhand.
• Construction/renovation of Girls/Boys Toilet in 20
government schools in Ajmer District, Rajasthan.
• Provision of safe drinking water & miscellaneous
works in schools of villages in the surrounding
areas of Kishangarh Airport in Ajmer District,
Rajasthan.

58
 SUSTAINABILITY REPORT
AAI understands the need of meeting human By re-routing the airspace and optimizing the routes
development goals while at the same time sustaining by using latest simulation techniques, AAI is able to
the ability of natural systems to provide the natural save considerable amount of carbon foot prints by
resources and ecosystem services upon which the using non-conventional energy options moving
economy and society depend. Therefore, right from towards self-sustained for energy consumption in a big
the Leh-Ladakh to Agatti and from Bhuj to Teju in the way.
North-east, at almost all the AAI’s airports the
One such system, Geo-thermal energy system has
infrastructure created is sustainable infrastructure.
been used at Kishangarh Airport which would save the
AAI is continuously adding and upgrading the rain Terminal Building heating and cooling energy
water systems at its airports. Rainwater harvesting is requirement by at least 20%
being done in two ways - one by storing rainwater &
AAI’s emphasis is to bring major airports to zero waste
using it and secondly by charging groundwater table
concept in the current financial year 2017-18.
through rain water infiltration sumps and wells.
Some of AAI’s major initiatives towards sustainable
Moreover, all AAI’s developments and installations are
development are highlighted below:
energy-efficient and continuously endeavoured
towards lowest energy consumption targets. To AAI PAPER RECYCLING UNIT (AAIPRU)
achieve this, we are using LED lights including light
Inspired by the concept of promoting better practices
masts as well as star-rated equipments and
for environment conservation, AAI became the first
installations at all our locations.
PSU in India to establish the Paper Recycling Unit to
Regarding Waste Management, all the solid and support the cause GROW (Government Recycled
liquid waste are being handled at airports itself and no Office Waste).
liquid waste water is disposed off in any city. The
This paper recycling unit converts paper waste, which
Sewage Treatment Plants (STP) are planned with every
was earlier either dumped/sold or burnt, collected
new project coming up. The water after treatment
from AAI offices across the country into countless
from STPs is recycled for use as AC plant make up
customized varieties for corporate paper stationery
water, washroom flushing and for horticulture
products like file covers, file folders, writing pads,
purposes. In the financial year 2016-17, the STPs at
visiting cards, envelopes, letter heads, corporate gifts,
airports like Hubli, Kishangarh, Belagavi, Jaipur and
calendars and several other paper products, catering
Vadodara have been commissioned.
to paper stationary needs of AAI offices situated
Terminal buildings are Green Buildings and AAI has across the country.
received awards and appreciation for Green Buildings
The Unit is serving the noble cause of environment
by adopting different green options for selection of
conservation by reducing carbon emission. In addition,
materials, procedures and equipments in projects as
the Unit is providing livelihood to weaker sections of
well as in operations and maintenance of the projects.
the society.

AAI Paper Recycling Unit, New Delhi

59
22 nd
Annual Report 2016-17

AAIPRU has recycled approx. 300 tonnes of paper waste and cotton waste till 31.03.2017, thereby recycling
approx. 50 tonnes of paper and cotton waste every year. This has resulted in annual saving which is quantified as
under:-
- 900 grown up trees;
- 20,200 kWh of electricity;
- 100 barrels of Oil;
- 3,52,000 gallons of water;
- 176 cubic yards of land filled space;
- 12,500 tonnes of CO2 to reduce green-house gas causing global warming.
SOLAR POWER PROJECTS
During the year 2016-17, AAI has completed solar roof-top installations at 15 airports which will result in an
annual saving of 8072.4 kWp. Airport-wise details of solar roof-top installations is provided hereunder:-
S. No. Name of Airport State Capacity in kWp
1 Assam Assam 250
2 Chennai Tamilnadu 1500
3 Patna Bihar 219
4 Ranchi Jharkhand 250
5 New Operational Office RED – Chennai Tamilnadu 100
6 Varanasi Uttar Pradesh 600
7 Hyderabad Andhra Pradesh 500
8 Madurai Tamil Nadu 170
9 Ahmedabad Gujarat 700
10 Bhuj Gujarat 230
11 RED office & ATS Complex – Mumbai Maharashtra 103.4
12 Bagdogra (RT) West Bengal 50
13 Jodhpur (RT) Rajasthan 100
14 Allahabad (RT) Uttar Pradesh 300
15 Chandigarh Union Territory 3000

Total Capacity (in KWp) 8072.4

AAI is fully committed to go for best possible sustainable development with green building, self-sustained in
energy use, almost zero waste disposal and overall socio-economic development involving development of all
stakeholders.

60
Shri P. Ashok Gajapathi Raju, Union Minister of Civil Aviation planting a sapling during tree plantation drive
undertaken by 'Indian Aviation Academy' - the training centre of AAI at New Delhi

Dr. Guruprasad Mohapatra - Chairman, AAI inaugurating the 1.5 MWp Solar Power Plant at Chennai

61
22 nd
Annual Report 2016-17

PERFORMANCE AT A GLANCE
PARTICULARS UNITS 2016-17 2015-16 2014-15 2013-14 2012-13
SOURCES OF FUNDS
Paid up Capital ` in Crores 656.56 656.56 656.56 656.56 656.56
Grants " 26.72 32.70 39.65 39.15 37.05
Loans - Others " 39.78 545.21 1,287.40 1,657.21 1,655.15
Non Current Liabilities " 7,307.96 7,280.95 5,216.46 1,980.64 2,604.93
Reserves & Surplus " 14,372.10 12,381.25 10,760.05 9,279.22 8,174.59
TOTAL " 22,403.12 20,896.67 17,960.12 13,612.78 13128.28
APPLICATION OF FUNDS
Fixed Assets (Less Deprec.) " 7,679.77 7,581.69 8,247.72 8,653.95 9,230.18
Work in Progress " 1,661.25 1,601.00 1,442.22 1,403.61 1,205.55
Investments " 1,715.47 1,151.15 1,101.15 1,096.13 1,091.23
Other Non Current Assets " 5,433.39 5,740.78 3,387.47 638.68 432.76
Working Capital " 3,602.61 2,958.02 2,298.65 752.75 168.60
Deferred Tax Asset (Net) " 2,310.63 1,864.03 1,482.91 1,067.66 999.96
TOTAL " 22,403.13 20,896.67 17,960.12 13,612.78 13,128.28
INCOME & PROFIT
Revenue " 12,542.01 10,824.50 9,284.98 8,170.04 6,849.08
Expenditure " 7,984.40 7,127.15 6,493.57 5,649.73 5,462.21
Profit before tax " 4,557.61 3,697.35 2,791.41 2,520.31 1,386.87
Provision for tax " 1,888.28 1,541.10 1,247.44 1,146.95 831.65
Provision for Deferred Tax (Asset) " (446.60) (381.11) (415.25) (67.70) (179.78)
Profit after tax " 3,115.93 2,537.36 1,959.22 1,441.06 735.00
APPRORIATION
General Reserve " 1,194.59 963.76 873.97 647.78 (64.01)
Specific Reserve " 796.26 657.44 617.46 446.55 628.15
Dividend(incl.interim dividend) " 934.78 761.21 391.85 288.00 147.00
Tax on Dividend " 190.30 154.95 75.94 58.73 23.86
TOTAL " 3,115.93 2,537.36 1,959.22 1,441.06 735.00
NET WORTH " 15,028.66 13,037.81 11,416.61 9,935.78 8,831.15
(Share Capital + Reserves)
CAPITAL EMPLOYED " 11,282.38 10,539.71 10,546.37 9,406.70 9,398.78
(Net Fixed Assets + Working Captial)
Current Assets " 7,980.70 7,318.69 7,150.88 6,905.06 5,379.93
Current Liabilities " 4,378.09 4,360.67 4,852.23 6,152.31 5,211.33
Working Capital " 3,602.61 2,958.02 2,298.65 752.75 168.60

62
OTHER HIGHLIGHTS UNITS 2016-17 2015-16 2014-15 2013-14 2012-13
Gross Addition to Fixed Assets ` in Crores 1,626.21 763.90 1,015.19 681.44 4,489.62
Sundry Debtors less Provision " 18,68.79 1,977.41 2,320.80 1,785.56 1,593.98
No. of employees in position Nos. 17,484 17,370 17,465 18,036 18,573
Aircraft Movements Nos.'000s 2,049 1,793 1,603 1,537 1,479
Passenger Movements (**) " 11,3021 92,817 78,895 71,759 68,284
Cargo Handled (**) Tons'000s 808 724 681 638 652
RATIOS
Profit After Tax to Net Worth Percentage 21 19 17 15 8
Profit Before Tax to Capital " 40 35 26 27 15
Employed
Profit After Tax to Capital " 28 24 19 15.32 7.82
Employed
Turnover to Capital Employed " 111.16 102.7 88.04 86.85 72.87
Current Ratio Ratio 1.82:1 1.68:1 1.47:1 1.12:1 1.03:1
Debt Equity Ratio
- Total debts to Equity Ratio 0.03 0.10 0.14 0.17 0.19
- Long Term Debts to Equity Ratio 0.003 0.04 0.11 0.17 0.19
Profit Before Tax to 36.34 34.16 30.06 30.85 20.25
Total Revenue Percentage
Profit After Tax to " 25 23 21 18 11
Total Revenue
Average Debt Collection Period Days 0 202 213 194 209
No. of Aircraft Movements per 117 103 92 85 80
employee Nos.
Revenue per employee ` in '000 7,173 6,232 5,325 4,496 3,688
Revenue Exp. Per employee ` in '000 4,567 4,103 3,724 3,109 2,941
ANNUAL PLAN
Plan Outlay ` in Crores 1,974.00 1,900.00 1,576.56 1,336.00 1,962.00
Actual Capital Expenditure ` in Crores 2,054.00 1,757.00 1,399.87 1,158.00 1,800.00
FINANCED AS UNDER:
Internal Resources Utilised " 1,842.60 1,499.96 1,224.12 972.12 1,252.46
North Eastern Council Grant " 35.00 20.50 20.50 16.70 25.10
Budgetary Support Received " - - - - -
from Govt
Budgetary Grant in aid " 75.07 81.34 120.50 93.85 22.44
Commercial Borrowings " - 67.50 - - 500.00
Others " 101.33 87.70 34.75 75.33 -
TOTAL 2,054.00 1,757.00 1,399.87 1,158.00 1,800.00

63
22 nd
Annual Report 2016-17

BALANCE SHEET as at March 31, 2017 ( ` In Crores)

Particulars Note FY 2016-17 FY 2015-16

No.
I EQUITY AND LIABILITIES
1. Capital
(a) Capital 2 656.56 656.56
(b) Reserves and Surplus 3 14,398.82 12,413.95
15,055.38 13,070.51
2. Non-Current Liabilities
(a) Long-Term Borrowings 4 39.78 545.21
(b) Other Long Term Liabilities 5 662.98 621.81
(c) Long-Term Provisions 6 6,644.98 6,659.14
7,347.74 7,826.16
3. Current Liabilities
(a) Trade Payables 7 345.03 447.94
(b) Other Current Liabilities 5 2,774.14 2,681.81
(c) Short Term Provisions 6 1,258.92 1,230.92
4,378.09 4,360.67
Total 26,781.21 25,257.34
II ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Fixed Assets 8 7,669.50 7,569.25
(ii) Intangible Assets 9 10.27 12.44
(iii) Capital Work-in-Progress 10 1,651.55 1,593.86
(iv) Intangible Assets Under Development 11 9.70 7.14
9,341.02 9,182.69
(b) Non-Current Investments 12 1,715.47 1,151.15
(c) Deferrred Tax Assets (Net) 13 2,310.63 1,864.03
(d) Long-term Loans and Advances 14 5,433.39 5,740.78
18,800.51 17,938.65
2. Current Assets
(a) Inventories 15 95.05 85.07
(b) Trade Receivables 16 1,868.79 1,977.41
(c) Cash and Cash Equivalents 17 5,042.90 4,492.58
(d) Short-term Loans and Advances 14 295.60 226.39
(e) Other Current Assets 18 678.36 537.24
7,980.70 7,318.69
Total 26,781.21 25,257.34

Statement of Significant Accounting Policies 1

The Notes from 1 to 45 are an integral part of these financial statements

R. Tulasi Mahalakshmi Rajesh Bhandari S.Suresh Dr. Guruprasad Mohapatra

Company Secretary ED (F&A) Member (Finance) Chairman
New Delhi
June 06, 2017
64
STATEMENT OF PROFIT AND LOSS for the period ended March 31, 2017
( ` In Crores)
Particulars Note FY 2016-17 FY 2015-16
No.
Income
I. Airport Navigational Services 19 2,972.89 2,581.08
II. Airport Services 20 3,483.98 2,890.90
III. Non-Aeronautical Airport Services 21 1,304.97 1,202.81
IV. Cargo Revenue" 22 261.95 201.15
V. Airport Lease Revenue 23 3,836.75 3,379.26
VI. Other Income 24 681.47 569.30
VII. Total Revenue (I+II+III+IV+V+VI) 12,542.01 10,824.50
VIII. Expenses
Employee Benefits Expenses 25 2,789.08 2,700.08
Operating Expenses 26 1,509.85 1,157.04
Administrative and Other Expenses 27 1,272.02 930.96
Finance Costs 28 98.37 171.40
Depreciation and Amortization 29 1,432.79 1,401.45
Security Expenses 30 882.28 766.22
Total Expenses 7,984.40 7,127.15
IX. Profit before exceptional and
extraordinary items and tax (VII-VIII) 4,557.61 3,697.35
XII. Exceptional Items 0.00 0.00
XIII. Profit before tax (XI-XII) 4,557.61 3,697.35
XIV. Tax Expenses:
(1) Current Tax 1,888.28 1,541.10
(includes previous year tax of ` 174.96 crore
(FY 2015 -16 - ` 128.90 crore)

(2) Deferred Tax (446.60) (381.11)

XV. Profit/(Loss) for the period (XIII-XIV) 3,115.93 2,537.36
Balance Carried to Balance Sheet 3,115.93 2,537.36

Statement of Significant Accounting Policies 1

The Notes from 1 to 45 are an integral part of these financial statements

R. Tulasi Mahalakshmi Rajesh Bhandari S.Suresh Dr. Guruprasad Mohapatra

Company Secretary ED (F&A) Member (Finance) Chairman
New Delhi
June 06, 2017
65
22 nd
Annual Report 2016-17
Notes to Financial Statements for the year ended March 31, 2017
1. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation of Financial Statements
1.1 (i) The financial statements are prepared under
historical cost convention on accrual basis as
per the provisions of Airports Authority of
India Act,1994 (No.55 of 1994) and rules
and notification made thereunder, and in
accordance with generally accepted
accounting principles and the mandatory
applicable accounting standards issued by ICAI.
(ii) The Accounts are presented in the format as
notified by the Government vide Notification
No. 815 dated 31st March 2014 under
Airports Authority of India (Annual Report
and Annual Statement of Accounts) Rules,
2014.
(iii) All assets and liabilities have been classified
as current or non-current. Based on the
services rendered and their realization in
cash and cash equivalents, the operating
cycle has been ascertained as 12 months for
the purpose of current and non-current
classification of assets and liabilities. Figures
for previous periods have been regrouped/
reclassified wherever necessary for
uniformity in presentation.
1.2 Use of Estimates
The preparation of financial statements requires
the management to make estimates and
assumptions that affect the reported amount of
assets, liabilities, revenue, expenses and
disclosure of contingent liabilities as at the date
of the financial statements. Management
believes that these estimates and assumptions
are reasonable and made on prudent basis
taking into account all available information,
however the actual results could differ from these
estimates and such differences are recognized in
the period in which the results are crystallized.
2. Fixed Assets
2.1 Tangible Assets
2.1.1 Fixed assets are stated at cost, net of credit
availed in respect of any taxes, duties, capital
grant receipts less accumulated depreciation
and impairment losses. Cost comprises the
purchase price and any attributable cost of
bringing the asset to its working condition for
intended use.
2.1.2 Capitalization is carried out in terms of the
Capitalization Policy of AAI. Brief gist is as follows:-
66
a) Construction Works (Project)- Capitalization
is done from the time the project is ready for
intended use.
b) Equipment relating to Airport, Cargo,
Security & IT and CNS Equipments not
requiring Calibration: Capitalization is done
from the date of installation, testing and
commissioning.
c) CNS Equipments requiring Calibration –ILS,
RADAR, VORs, ADS-B: To be capitalized from
the date the flight calibration is completed as
certified by FIU or immediately after 3
months from the date of installation as
certified by DRC/Suppliers whichever is
earlier.
2.1.3 Part completion of works / projects and put to
use are capitalized based on the technical
assessment
2.1.4 Expenditure not represented by AAI Assets is
charged off as Revenue expenses.
2.1.5 Pre-project expenditure in case of abandoned
works and expenditure incurred for foreclosed
and abandoned works are charged off as
Revenue expenses.
2.1.6 Fixed Assets which have been fully depreciated,
are shown at residual value of ` 1/-
2.1.7 Any non-monetary asset acquired from State
Government free of cost is valued at nominal
value of ` 1/- for each type of asset.
2.1.8 Wherever land is sold / transferred / disposed
off and the specific value of such land is not
available, it is valued at average cost of
acquisition, except in cases where it is acquired
free of cost.
2.1.9 In case of joint fixed assets to the extent of AAI’s
share in such assets is accounted in
proportionate to the cost incurred and
depreciation charged accordingly.
2.1.10 Asset individually costing less than ` 5,000/- are
charged off to revenue expenses.
2.2 Construction Period Expenses on Projects
2.2.1 Direct revenue expenditure of exclusive Project
Division handling capital projects are capitalized
along with the completion cost of the work(s).
2.2.2 The interest on mobilization advance in respect
of project is set off against the project expenses.
2.2.3 Interest on borrowings for projects is capitalized 2.4.3 Depreciation on Temporary Buildings, Security
up to the date of capitalisation. Fencing and Intangible assets is charged at.
100% irrespective of the number of days in use.
2.3 Intangible Assets
2.4.4 Land taken on lease by AAI are amortized over
2.3.1 Computer Software (not being an embedded the lease period and in case where the lease
software in the equipment) which is put to use period is not available, such costs are amortized
and is expected to provide future enduring over a period of 60 years.
economic benefits is recognized as Intangible
Assets and amortized on straight line basis over 2.5 Impairment of Assets
a period of five years or licence period of the
software whichever is earlier. However where As at each balance sheet date, the carrying
such computer software is still in development amount of cash generating units/assets is tested
stage, costs incurred during the development for impairment so as to determine:
stage of such software are accounted as (a) the provision for impairment loss, if any
“Intangible Assets Under Development”. required; or
2.3.2 Expenditure on Research & Development, other (b) the reversal, if any, required of impairment
than on capital account, is charged to revenue. loss recognized in previous periods.
2.4 Depreciation Impairment loss is recognized when the carrying
2.4.1 Depreciation on fixed assets is calculated on a amount of an asset exceeds recoverable
straight-line basis using the rates arrived at amount.
based on the useful lives estimated by the 2.6 Physical Verification of Fixed Assets
management. The following rates are used to
provide depreciation on its fixed assets. The Physical Verification of Fixed assets is carried
out as under:-
Assets Rates (SLM)
a) Big Airports (including ATC centers/Security/
Runways, Taxiways and Aprons, 13% Cargo units): Every 3 years.
Roads, Bridges & Culverts
b) Medium Airports: Every 2 years.
Plant and Machinery / 11%
Electrical installations c) Small Airports (includes ACS, CHQ, CATC,
X-ray Baggage 11% RCDU, CRSD, FIU, EMO, and RHQ
(Administrative offices): Every year.
Tools & Equipment 20%
3. Investments
Buildings –Terminal Buildings & others 8%
Investments which are readily realizable and
Buildings –Residential 5% intended to be held for not more than one year
Buildings Leasehold 8% from the date on which such investments are
made are classified as Current Investments. All
Boundary wall (Operational) 8% other investments are classified as long-term
Boundary wall (Residential) 5% investments. Long term investments are carried
at cost. Provision is made for diminution other
Office equipment 18% than temporary, in the value of such
Furniture and fixtures 20% investments if any.
CFT & Firefighting equipment 13% 4. Trade Receivables
Aircraft 10% Debt more than 2 years old recoverable from
parties other than Government Departments
Other Vehicles 14%
(including State Governments) are considered
Computers, IT Hardware and accessories 20% doubtful and provided for.
2.4.2 Depreciation is charged at 100% in case assets (i) In cases where the matter has been referred
are used in a financial year for 180 days or more to arbitration / mlitigation/ disputed,
whereas if the assets are used for less than 180 necessary provision is made in the accounts
days the depreciation will be equivalent to 50% irrespective of the period of debt.
of the depreciation of the financial year.

67
22 nd
Annual Report 2016-17
(ii) Security Deposit available has not been
considered while making the provision for
doubtful debts.
5. Stores/Spares
(i) Stock / Spares consumed during the year are
charged as revenue expenditure.
(ii) Stock at year end (except store/spare with
unit cost of 5000 and less) is valued at cost
price on FIFO basis for a period of five years
from the date of receipt. Thereafter the net
realizable value is worked out as under and is
shown at cost or net realizable value
whichever is less:
6th year 70% of the cost
7th year 40% of the cost
8th year onwards 10% of the cost.
(iii) Unconsumed stock of store/spare as on
1.4.2005 is valued at 10% of the cost.
6. Grants & Subsidies
Grants/Subsidies received from the
Government and Foreign Financial Institutions
for acquisition of assets under agreements
approved by the Government are treated as
Capital Grants. Grants are deducted from the
gross value of the assets at the time of
capitalisation of assets in arriving at its book
value. Till the completion of the work Grant will
be shown as a reduction from the WIP of the
concerned work. When the grant is equal to the
cost of the asset, the asset is shown in the
balance sheet at nominal value at ` 1/-.
7. Foreign Currency Translation
(i) Transactions in foreign currency are
recorded at the exchange rates prevailing at
the date of transactions except the balance
in Exchange Earners Foreign Currency
Account which is accounted for at the rate
prescribed for such Account
(ii) Non-Monetary items denominated in foreign
currency (such as Fixed Assets etc) are valued
at the exchange rate prevailing on the date
of transaction.
(iii) Monetary Items denominated in foreign
currencies (such as Loans, Cash, Bank
balances etc outstanding at the end of
reporting period, are translated at exchange
rates prevailing as at the end of reporting
date
68
(iv) Any gains or losses arising due to differences
in exchange rates at the time of translation
are accounted for in the statement of P&L
either under the head foreign exchange
fluctuation or interest cost as per the case.
8. Revenue Recognition
(i) Revenue is recognized as the services are
rendered on accrual basis and is net of
service tax.
(ii) Bills are raised at the time when and to the
extent there is no significant uncertainty
as to its measure ability and ultimate
realization.
(iii) In respect of cases under legal disputes / PPE
Act, Interest on delayed payments, Cargo
Demurrage charges (except where bills are
raised on Airlines/Agencies), Insurance
Claims, Interest on Staff advances, etc. are
accounted on receipt basis.
(iv) Custom Duty Exemption certificates received
under ‘Served from India Scheme’ as well as
EPCG Licenses are accounted as income in
the year of receipt. However unutilized
portion of expired Scripts/Licenses if any is
charged off in the period in which the results
are crystallized.
(v) In respect of Deposit Works undertaken by
AAI, income accrued as departmental
charges is accounted for on receipt/ lodging
of the final claim.
(vi) Income and expenditure upto ` five lakh in
each case pertaining to previous years are
accounted for in the current year.
9. Special Repairs
(i) Special Repair Works on Runways, Taxiways
and Aprons etc. to restore Pavement
Classification Number (PCN) value to their
original level which may sometimes result in
incidental increase in PCN is charged off to
P& L A/c.
(ii) The expenditure on refurbishment of CFTs
are treated as special repairs and charged off
during the year of expenditure.
(iii) Initial expenditure on creation of RESA is
treated as Capital expenditure and
subsequent expenditure is charged off to
P&L account.
10. Taxes on Income
Provision for current tax is made as per the
provisions of the Income Tax Act, 1961. Current
Tax Provision is adjusted against Advance Tax on
the basis of order of Commissioner Income Tax
(Appeals) received during the year.
11. Deferred Tax
Deferred tax Liability/Asset resulting from
“timing difference” between book and taxable
profit is accounted for considering the tax rates
and laws that have been enacted or
substantively enacted on the Balance Sheet
date. The Deferred Tax Asset is recognized and
carried forward only to the extent that there is a
reasonable certainty that sufficient taxable
income will be available in future against which
such deferred tax assets can be realized.
13.
12. Employee Benefits
12.1 Short Term Benefits
Short Term Employee Benefits are accounted for in the
period during which the services have been rendered.
12.2 Post-Employment Benefits and Other Long
Term Employee Benefits:
a) AAI’s Contribution to the Provident Fund
and Pension Scheme is remitted to AAI,
Employee Provident Fund Trust and
Regional Provident Fund Commissioner,
Ministry of Labour and Employment, Govt.
of India respectively based on a fixed
percentage of the eligible employee’s salary
and charged to Statement of Profit and Loss.
b) The Company operates defined benefit plans
for Gratuity. The cost of providing such
defined benefits is determined using the
projected unit credit method of actuarial
valuation made at the end of the year and
administered through respective Trusts.
Actuarial gains/losses are charged to
Statement of profit and Loss.
c) Obligations on Compensated Absences,
Welfare benefits, Post Retirement Medical
benefits for retired employees and
resettlement benefits are provided using the
projected unit credit method of actuarial
valuation made at the end of the year.
Others
(i) The specific reserves are utilized as per
utilization of specific reserves guidelines
approved by Board.
(ii) Expenditure incurred on procurement of
arms for CISF is treated as revenue
expenditure.
(iii) EMD / Security Deposit more than three
years old and not claimed are treated as
miscellaneous income.
69
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
2. CAPITAL ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Capital : Government of India
As per last Balance Sheet 656.56 656.56

Add: Addition during the year - -

Total 656.56 656.56

3. RESERVES AND SURPLUS ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Capital Reserves
As per last Balance Sheet 19.10 19.10
Add: Amount additions during the year 0.00 19.10 0.00 19.10
Capital Grants
As per last Balance Sheet 32.70 39.65
Add: Received during the year 110.07 101.85
Less: Utilised/repaid during the year 116.05 108.80
26.72 32.70
Debenture Redemption Reserve
As per last Balance Sheet 311.25 386.25
Less: Reserves transferred to General 202.50 75.00
Reserves on Redemption of Bonds
108.75 311.25
Corporate Social Responsibility Reserve
As per last Balance Sheet 60.14 45.21
Add: Addition during the year 60.06 44.66
Less: Utilised during the year 60.19 29.73
60.01 60.14
Airport Development Reserve
As per last Balance Sheet 4,224.24 3,581.73
Add: Appropriation from Profit and Loss 796.39 642.51
5,020.63 4,224.24
General Reserve
As per last Balance Sheet 7,766.52 6,727.76
Add: Transferred from Debenture Redemption 202.50 75.00
Reserve
Add: Appropriation from Profit and Loss 1,194.59 963.76
9,163.61 7,766.52
Contd..
70
 Notes to Financial Statements for the year ended March 31, 2017
( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Profit & Loss Account
Profit for the Year 3,115.93 2,537.36
Less: Appropriations
Interim Dividend Paid* 560.00 279.00
Tax on Interim Dividend paid 114.00 56.79
Proposed Final Dividend 374.78 482.21
Tax on Proposed Final Dividend 76.30 98.16
Corporate Social Responsibility
Reserve (0.13) 14.93
Airport Development Reserve 796.39 642.51
General Reserve 1,194.59 963.76
0.00 0.00
Total Reserves & Surplus 14,398.82 12,413.95
Note: Interim Dividend for FY 2016-17 amounting to ` 560 crore and Dividend Distribution Tax amount of
` 114.01 crore was paid to GOI on 22nd february 2017.

4. LONG TERM BORROWINGS ( ` In Crores)

Particulars Long Term Current Maturities*

31.03.2017 31.03.2016 31.03.2017 31.03.2016
Secured Loans
Bonds:-
9.3% Non-Convertible Redeemable Bonds, A - - - 215.00
2016-Series III
Unsecured Loans
8.97% Unsecured Non-Convertible B - - - 595.00
Redeemable Bonds 2016-IV
8.6% Unsecured Non-Convertible C 0.00 435.00 435.00 -
Redeemable Bonds 2018-V
Term Loan from Banks- D 0.00 33.75 - -
Kotak Mahindra Bank Ltd
Term Loan from Banks-HDFC Bank Ltd E 0.00 33.75 - -
Loan from Foreign Financial Institutions- F 39.78 42.71 2.46 2.49
Guaranteed by GOI
Total 39.78 545.21 437.46 812.49

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

71
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
Secured Loans-Bonds (A)
Particulars Allotment Date Coupon Rate Date of Security
Redemption
2150 Bonds of face value of 14th "9.30% p.a. After 5 years These are
` 10 lakhs each September,2011 payable annually from the date of secured on pari
on 14th allotment. This passu basis, by
September" bond series has charge on pieces
been redeemed or parcels of
on 14th non-agricultural
September 2016 lands having
various revenue
survey numbers
of Hansol, Taluka
city, District
Ahmedabad.
Unsecured Bonds (B&C)
Particulars Allotment Date Coupon Rate Date of Security
Redemption
5950 Bonds of face value of 11th "8.97% p.a. After 5 years -
` 10 lakhs each October,2011 payable annually from the date of
on 29th March" allotment.
Accordingly this
bond series has
been redeemed
on 13th October
2016.
4350 Bonds of face value of 17th January "8.60% p.a. After 5 years -
` 10 lakhs each 2013 payable annually from the date of
on17th January" allotment

Term Loans from Banks (D&E)

Name of Bank Limit Interest Rate Tenor/ Disbursement &
Repayment Schedule
Kotak Mahindra Bank Ltd ` 150 crores Kotak Bank Base The loan has been foreclosed in
Rate with October 2016.
monthly rests
HDFC Bank ` 150 crores HDFC Bank Base The loan has been foreclosed in
Rate with November 2016.
monthly rests

Loans from Foreign Financial Institutions: Guaranteed by Government of India (F)

Foreign Financial Institution Total Loan Amount Interest Rate Repayment Loan End Date
Oustanding as on
31st March 2017 Schedule
Export Development Canada, USD Interest Free Half-Yearly 20.12.2044
Canada 5,082,477.84 Instalments of
USD 90758.54
each payable on
20th June &
20th December
every year

Contd..
72
 Notes to Financial Statements for the year ended March 31, 2017
Loans from Foreign Financial Institutions: Guaranteed by Government of India (F)
Foreign Financial Institution Total Loan Amount Interest Rate Repayment Loan End Date
Oustanding as on
31st March 2017 Schedule
Instituto De Credito USD 0.25% pa Half-Yearly 21.03.2024
Official(ICO), Spain 1,356,868.25 payable on 21st Instalments of
March & 21st USD 96919.15
September every each payable on
year 21st March &
21st September
every year
Total Foreign Loan Outstanding balance as on 31st March 2017 is USD 6439346.09 out of which current
maturities portion amounts to USD 375355.38 and the long term loan portion thereof is USD 6063990.71 only.

5. OTHER LIABILITES ( ` In Crores)

Particulars Non-Current Current

FY 2016-17 FY 2015-16 FY 2016-17 FY 2015-16
Deposits 655.99 621.81 64.39 40.09
Current Maturity of Long Term Borrowings - - 437.46 812.49
Interest Accrued not due on Borrowings - - 7.59 19.57
Advances from Clients - - 160.72 106.62
Creditors-Capital - - 257.71 177.16
Other Liabilities 6.99 - 1,846.27 1,525.88
Total 662.98 621.81 2,774.14 2,681.81

6. PROVISIONS ( ` In Crores)

Particulars Long Term Short Term

FY 2016-17 FY 2015-16 FY 2016-17 FY 2015-16
Provision For Employees Retirement Benefits and PRP** 1,529.62 1,473.78 499.59 650.54
Provision for Taxation (Gross) 4,669.00 4,739.00 308.25 0.00
Corporate Dividend Tax - - 76.30 98.17
Proposed Dividend - - 374.78 482.21
Other Provisions 446.36 446.36 0.00 0.00
Total 6,644.98 6,659.14 1,258.92 1,230.92
** Disclosure as per AS 15 on 'Employee benefit has been made in Note No.32.

7. TRADE PAYABLES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

For Goods and Services 345.03 447.94

Total 345.03 447.94

73
 Notes to Financial Statements for the year ended March 31, 2017

74
8. TANGIBLE ASSETS ( ` In Crores)
22
Depreciation, Amortisation and Impairment Loss
nd

Gross Block Net Block

Particulars As on Additions Adjustments/ As on Provided Provided Adjustment Total Upto As on As on
01.04.2016 Deletions/ 31.03.2017 upto during of Sale/ 31.03.2017 31.03.2017 31.03.2016
Transfers/Sale 31.03.2017 the year Transfer
Reclassifications
Land 254.31 21.54 (9.90) 285.75 0.00 0.00 0.00 0.00 285.75 254.31
Land-Leasehold 11.30 0.00 9.91 1.39 0.33 (0.03) 0.00 0.30 1.09 10.97
Runway, Taxiway, Apron 3314.92 433.78 (17.23) 3765.93 2702.17 214.28 (11.29) 2927.74 838.19 612.75
Buildings 8373.53 413.06 50.97 8735.62 4044.16 597.65 16.79 4625.02 4110.60 4329.37
Buildings-Leasehold 3.04 0.00 0.00 3.04 3.04 0.00 0.00 3.04 0.00 0.00
Annual Report 2016-17

Boundary 374.76 31.70 (1.06) 407.52 239.61 26.39 (1.16) 267.16 140.36 135.15
Plant & Equipment 7105.00 550.18 44.52 7610.66 5040.70 550.41 22.55 5568.56 2042.10 2064.30
Furniture & Fixtures 220.42 13.20 2.71 230.91 194.19 12.34 2.19 204.34 26.57 26.23
Vehicles 677.49 141.92 4.20 815.21 586.09 49.52 4.19 631.42 183.79 91.40
Office Appliances 265.48 15.99 3.09 278.38 220.71 18.12 1.50 237.33 41.05 44.77
Total 20600.25 1621.37 87.21 22134.41 13031.00 1468.68 34.77 14464.91 7669.50 7569.25
Previous year 19955.80 761.39 116.94 20600.25 11732.34 1416.69 118.03 13031.00 7569.25

Further Notes:-
(i) The Authority is vested with the ownership of 58487.814 acres of land which includes land of CSI, Mumbai Airport (1966.76 acres) and IGI, New Delhi Airport (4799.09 acres) handed
over to the Joint Venture Companies viz. Delhi International Airport Pvt. Ltd. (DIAPL) at IGI (Delhi) and Mumbai International Airport Pvt. Ltd. (MIAPL) at CSI (Mumbai) Airport on long
term lease excluding carved out assets. Out of above, a part of land (approx. 798.837 acres) is under encroachment at various Airports. Mutation of land, transfer of title deeds in
favour of AAI whenever not done so far as well as removal of encroachment on land is in progress.
(ii) The terms and conditions of transfer of land at various airports between the Ministry of Defence and AAI are yet to be decided . At IGI Airport, Delhi, land measuring 56.78 acres was
taken over from Ministry Defence (MOD) and they had claimed an amount of ` 53.61 crore from AAI. An amount of ` 2 crore has been paid leaving a balance amount of ` 51.61 crore
(Previous Year ` 51.61 crore) which has been shown.
(iii) Land measuring 5154.50 sqm was handed over to National Highways Authorities of India for the construction of flyover in front of Chennai Airport on NH -45. Demand for 3881.40
sq.mt of land has been raised on NHAI for ` 7.11 crore. NHAI vide letter dated 28.11.2014 has informed that a draft award in respect of S.No. 1045/2 in Cantonment Pallavaram Village,
Alanthur Taluk has been sent for allotment of funds to the Project Director, NHAI, Chennai and further action will be taken on receipt of funds. W.r.t . AAI has not raised
Compensation for remaining 1273.10 sqm of land as the land is yet to be alienated in AAI' s name . Necessary action is being taken by AAI for the same. Land measuring 6673.70 sqm
for construction of Lucknow bypass near Lucknow airport has been taken over NHAI. As discussed and agreed by NHAI in the meeting held 30.07.2012 that NHAI is ready to pay the
compensation for land occupied by NHAI for construction of road on rates as approved by Revenue Authorities . Even after repeated reminders,NHAI have not paid any compensation
so far. Efforts are being made to get the compensation from NHAI.
(iv) Opening balance of Depreciation includes impairement losses identified at Bangalore and Hydredabad Airport in FY13-14 in respect of Builiding Freehold ` 1.66 crore, Boundary
` 0.55 crores, Plant & Equipment ` 3.72 crore all totalling to ` 5.43 crore. There are no addition or reversals of impairment losses during FY 2016-17.
(v) (a) Land transfer for Kolkata Metro: AAI Board (172nd meeting held on 24.11.2016) has reviewed the earlier decision (161st Board Meeting held on 12th August 2014) in respect of
permanent transfer / long term lease / temporary leasing of AA land to Metro Railway, Kolkata for construction of two Metro stations and lines at NSCBI Airport as per details below:
i) To transfer permanently land measuring 17766.036 sqm @ ` 57932/- per sqm (Weighted average of rate of land as per the local revenue authority)
ii) Right of Way - land measuring 49784.537 smtr@ 5793.20 (10% of ` 57932/-) - one time payment as against earlier decision of long term lease.
iii) To temporary lease - 17529 sqms @ ` 2896.60 (5% of ` 57932/-) p.a. to facilitate construction activity.
 iv) The approval of Cabinet on (i) & (ii) above is awaited.
(b) AAI Board in its 168th meeting held on 04.03.2016 approved the permanent transfer of land measuring 1899 sqm on payment of compensation @ ` 50000/- per sqm to Lucknow
metro at Lucknow Airport. Metro Authorities has since released the payment. The approval of Cabinet on above is awaited. "
(vi) Out of the above Assets, Total Assets (Gross block- ` 4.86 crore and is already fully depreciated ) which includes  Plant & Equipment (Gross block- ` 2.52 crore), Furniture (Gross block –
` 0.04 crore), Vehicles (Gross block- ` 0.79 crore) and Office Appliances (Gross block- ` 1.51 crore)have been retired from active use.
vii) As per the directives of MoCA, AAI has taken over the Operations and Maintenance of Diu Airport from Diu Administration with effect from 10th March, 2017 as per Handing
Over/Taking Over report dated 10th March, 2017. An MOU in this regard has been executed between AAI and Union Territory Administration of Daman and Diu on 20th March, 2017.
AAI Board in its 174th Board Meeting held on 23rd March, 2017 has ratified the execution of MOU dated 20th March, 2017 vide Agenda item 174.14. The Assets taken over have been
taken in AAI’s books at a nominal value of ` 1/- each for different classes of Assets in the FY 2016-17
9. INTANGIBLE ASSETS ( ` In Crores)
Gross Block Depreciation, Amortisation and Impairment Loss Net Block
Particulars As on Additions Adjustments/ As on Provided Provided Adjustment Total Upto As on As on
01.04.2016 Deletions/ 31.03.2017 upto during of Sale/ 31.03.2017 31.03.2017 31.03.2016
Transfers/Sale 31.03.2017 the year Transfer
Reclassifications
Computer Software 80.59 4.84 0.00 85.43 68.15 7.01 0.00 75.16 10.27 12.44
Total 80.59 4.84 0.00 85.43 68.15 7.01 0.00 75.16 10.27 12.44
Previous year 87.62 2.51 9.54 80.59 63.36 5.97 1.18 68.15 12.44

10. CAPITAL WORK-IN PROGRESS ( ` In Crores)

Gross Block Depreciation, Amortisation and Impairment Loss Net Block
Particulars As on Additions Adjustments/ As on Provided Provided Adjustment Total Upto As on As on
01.04.2016 Deletions/ 31.03.2017 upto during of Sale/ 31.03.2017 31.03.2017 31.03.2016
Transfers/Sale 31.03.2017 the year Transfer
Reclassifications
Capital Work-in Progress 1593.86 901.92 844.23 1651.55 0.00 0.00 0.00 0.00 1651.55 1593.86
Total 1593.86 901.92 844.23 1651.55 0.00 0.00 0.00 0.00 1651.55 1593.86
Previous year 1436.79 1106.48 949.41 1593.86 0.00 0.00 0.00 0.00 1593.86
2. Borrowing cost booked to CWIP during the year is ` 3.34 crore ( Previous Year ` 3.19 crore).

11. INTANGIBLE ASSETS UNDER DEVELOPMENT ( ` In Crores)

Gross Block Depreciation, Amortisation and Impairment Loss Net Block
Particulars As on Additions Adjustments/ As on Provided Provided Adjustment Total Upto As on As on
01.04.2016 Deletions/ 31.03.2017 upto during of Sale/ 31.03.2017 31.03.2017 31.03.2016
Transfers/Sale 31.03.2017 the year Transfer
Reclassifications
Intangible Assets Under 7.14 4.63 2.07 9.70 0.00 0.00 0.00 0.00 9.70 7.14
Development
Total 7.14 4.63 2.07 9.70 0.00 0.00 0.00 0.00 9.70 7.14

75
Previous Year 5.43 1.89 0.18 7.14 0.00 0.00 0.00 0.00 7.14
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
12. NON-CURRENT INVESTMENTS ( ` In Crores)

Particulars Face Value Number of FY 2016-17 FY 2015-16

per Equity Equity Shares
Share (`) as on 31st
March 2017
(Long Term Investments (at cost))
Unquoted Trade Investments
In fully paid up Equity shares of
Joint Venture Companies -
Hyderabad International Airport Ltd. (HIAL) 10/- 4,91,40,000 49.14 49.14
Bangalore International Airport Ltd. (BIAL) 10/- 4,99,98,000 50.00 50.00
Delhi International Airport Pvt. Ltd. (DIAL) 10/- 63,70,00,000 637.00 637.00
Mumbai International Airport Pvt. Ltd. (MIAL) 10/- 31,20,00,000 312.00 312.00
National Flying Training Institute 10/- 3,81,11,795 38.11 38.1
Private Ltd. (Gondia)
Mihan India Pvt. Ltd (MIHAN) 10/- 98,00,000 9.80 9.80
Kannur International Airport Private Ltd. 100/- 1,00,00,000 100.00 50.00
Aai Cargo Logistics & Allied Services 10/- 2,50,00,000 25.00 0.00
Company Ltd.
Chandigarh International Airport Pvt. Ltd. 10/- 49,44,19,295 494.42 5.10
Total-Equty Investments (A) 1,715.47 1,151.15

13. DEFERRED TAX ASSETS

In compliance of Accounting Standard – 22 on “Accounting for Taxes on Income’’, the item wise details of
Deferred Tax Liability (net) are as under:- ( ` In Crores)
Particulars As on Provided Balance as
01.04.2016 during the on 31st
year March, 2017
Difference between book and tax depreciation 352.20 46.98 399.18
Provision for Bad & Doubtful Debts 624.86 274.85 899.71
Municipal taxes 14.09 (8.71) 5.38
Leave Encashment/Retired employee medical benefit scheme/ 745.68 83.86 829.54
Superannuation
Provision for resettlement of retired employees 34.93 (2.80) 32.13
Welfare (Benevolent Fund) 25.94 (3.84) 22.10
Upfront fees from JVCs 66.14 (3.59) 62.55
Provision of PRP - 60.03 60.03
Provision for Interest due on term loans 0.19 (0.19) 0.00
Deferred Tax Assets (Net) 1,864.03 446.60 2,310.63

76
 Notes to Financial Statements for the year ended March 31, 2017
14 . LOANS AND ADVANCES ( ` In Crores)

Particulars Long Term Short Term

FY 2016-17 FY 2015-16 FY 2016-17 FY 2015-16
Advances for Investments-JVCs 86.72 622.34 - -
Advances for Capital Expenditure 108.31 146.99 - -
Secured, Considered Good
Advance Taxes & TDS
Tax deducted at Source and Advance Income Tax 4,689.70 4,433.12 11.79 0.00
Advance Tax-Fringe Benefit Taxes 3.94 3.94
Balances with Customs/Excise/Service Tax Authorities 68.15 68.15 92.94 32.76
Prepaid Expenses - - 27.12 19.53
Deposits
Unsecured Considered Good 128.37 115.42 - -
Employee Loans
Secured, Considered Good 352.04 354.65 120.55 140.72
Advances to Suppliers/Works
Unsecured Considered Good - - 9.29 5.71
Amount Receivable -RCS-MOCA - - 4.08 -
Others
Unsecured Considered Good 0.11 0.11 25.89 23.73
Total 5,433.39 5,740.78 295.60 226.39

15. INVENTORIES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Stores and Spares 95.05 85.07
Total 95.05 85.07

16. TRADE RECEIVABLES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Over Six months : 3,546.07 3,081.57
Within Six months: 922.44 4,468.51 701.37 3,782.94
Less: Provision for Bad and Doubtful Debts (2,599.72) (1,805.53)
Total 1,868.79 1,977.41
Further Notes:
(a) Secured, Considered Good 790.75 283.31
(b) Unsecured, Considered Good 1,078.04 1,694.10
(c) Doubtful 2,599.72 1,805.53

77
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
17. CASH AND CASH EQUIVALENTS ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Cash and Cash Equivalents(CFS)
Balances with Banks 490.89 734.40
Cheques, Drafts on hand 0.30 1.31
Cash on hand 0.04 0.07
Remittance in transit 0.41 0.32
Imprest 1.26 1.48
492.90 737.58
Other Bank Balances
Bank Deposits 4,550.00 4,550.00 3,755.00 3,755.00

Total 5,042.90 4,492.58

18. OTHER CURRENT ASSETS ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Unbilled Revenue 440.77 281.25
Dues from JVCs 34.77 83.44
Interest Accrued on Investments/ Deposits 202.74 172.47
Losses Pending Investigation 0.08 0.08
Total 678.36 537.24

19. AIRPORT NAVIGATIONAL SERVICES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Route Navigation Facility Charges (RNFC) 2,540.84 2,212.00
Terminal Navigational Landing Charges (TNLC) 428.32 366.68
Other CNS/ATM Service Revenue 3.73 2.40
Total 2,972.89 2,581.08

78
 Notes to Financial Statements for the year ended March 31, 2017
20. AIRPORT SERVICES ( ` In Crores)
Particulars FY 2016-17 FY 2015-16
Landing, Parking & Housing (LPH) 890.02 764.23
Passenger Service Fees:-
- Facilitation 280.36 233.86
- Security 736.54 1,016.90 610.10 843.96
User Development Fees
- International PAX 531.83 483.54
- Domestic PAX 602.90 1,134.73 459.61 943.15
Oil Throughput Revenue 189.88 148.28
Ground Handling 163.82 123.16
Extension of Service Hours 5.94 7.06
Royalty on CUTE Charges 82.70 61.06
Total 3,483.98 2,890.90

21. NON-AERONAUTICAL AIRPORT SERVICES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16
Rent & Services 663.46 623.15
Trading Concessions 488.38 447.69
Car Parking 95.52 83.92
Porterage 2.62 3.09
Admission Fees/Commerical Passes 20.12 17.17
Restrooms 2.70 1.86
NOC-Height Clearance 9.10 13.30
Consultancy Services 0.31 0.42
Miscellaneous Non-Aeronautical Airport Services 22.75 12.21
Total 1,304.97 1,202.81

22. CARGO REVENUE ( ` In Crores)

Particulars FY 2016-17 FY 2015-16
Cargo Revenue 261.95 201.15
Total 261.95 201.15

23. AIRPORT LEASE REVENUE ( ` In Crores)

Particulars FY 2016-17 FY 2015-16
Upfront Fees 10.37 10.37
Annual Fees:-
DIAL 2,634.84 2,302.66
MIAL 1,191.54 3,826.38 1,066.23 3,368.89

Total 3,836.75 3,379.26

79
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
24. OTHER INCOME ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Interest Income 409.50 382.71
Dividend Received from BIAL 4.99 -
Profit on Sale of Fixed Assets 105.67 46.14
Income from Training Institutes 12.26 2.27
Miscellaneous Income 142.44 128.35
Interest and Penalties 2.53 7.09
Employee Related Recoveries 4.08 2.74
Total 681.47 569.30

25. EMPLOYEE BENEFIT EXPENSES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Pay & Allowances 2,011.55 1,936.83

Other Staff Cost 631.76 625.17
Contribution to Provident & Other Funds 162.18 152.49
Less Recovery of Operational Support Cost -JVC (16.41) (14.41)
Total 2,789.08 2,700.08

26. OPERATING EXPENSES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Rent, Rates, & Taxes 5.80 6.98
Municipal Taxes 66.59 18.75
Insurance 8.20 4.84
Advertisement & Publicity 13.88 13.92
Repairs and Maintenance:-
Civil Works 332.91 169.90
Electrical Works 214.95 178.93
Vehicles 16.25 11.27
Equipment & Furniture 2.63 0.77
Electronics 152.05 92.03
IT Infrastructure 67.59 786.38 56.83 509.73
Consumption of Stores and Spares 42.85 33.29
Electricity & Water Charges 403.58 408.31
Meteorological Service Charges 122.97 116.40
Upkeep Expenses 55.82 42.70
Horticulture Expenses 3.78 2.12
Total 1,509.85 1,157.04

80
 Notes to Financial Statements for the year ended March 31, 2017
27. ADMINISTRATIVE & OTHER EXPENSES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Legal Expenses 6.79 4.94

Consultancy Services 24.30 6.02
Freight Charges 1.38 0.74
Postage & Courier Charges 0.83 0.83
Telephone, Fax and Internet Charges 8.31 6.31
Printing & Stationery 7.12 8.02
Lease Rental 8.36 0.79
Training Expenses 9.55 9.00
Travelling Expenses 64.32 66.26
Research & Development 6.42 9.32
Provision for Bad and Doubtful Debts 794.20 647.08
Prior Period Adjustments (net) (5.46) 0.88
Expense On Rajya Bhasha 1.32 1.09
Grant to Training Centers 0.40 (0.93)
Audit Fees for CAG Statutory Audit 3.49 4.00
Fees for other Services-Audit 0.04 3.54 0.06 4.06
Hire Charges 30.56 25.41
Corporate Social Responsibility Expenses 60.19 29.73
Watch & Ward/Security Contract 49.40 38.04
Collection Charges 128.87 29.67
Guarantee Fees 2.16 2.16
Arbitration Expenses 0.61 0.82
Miscellaneous 68.88 40.72
Total 1,272.02 930.96

28. FINANCE COSTS ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Interest on Borrowings 74.94 135.56

Applicable Net Loss on Foreign Currency Translation (0.44) 2.96
Other Financing Charges 23.88 32.88
Total 98.37 171.40
Further Notes:-
Finance Cost Depicted Above does not include Interest on Borrowings amounting to ` 3.34 crore booked in CWIP
during FY 2016-17 (` 3.19 crore in FY 2015-16).

81
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
29. DEPRECIATION AND AMORITIZATION EXPENSES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Depreciation/amortisation on Tangible Assets 1,426.00 1,394.06
Amortisation of Intangible Assets 6.79 7.39
Total 1,432.79 1,401.45

30. SECURITY EXPENSES ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Aviation Security Force-CISF 849.60 733.12

Other Security Agencies incl. State Police 32.69 33.10
Total 882.28 766.22

31. INCOME / (EXPENSES) PERTAINING TO PRIOR YEARS (NET) ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

A. EXPENDITURE
Employee Benefits Expenses 0.06 0.00
Operating Expenses (31.50) (16.10)
Administrative and Other Expenses (5.57) -
Depreciation and Amortization Expenses 42.91 21.21
Security Expenses (4.05) (0.86)
Total 1.85 4.25
B. INCOME
Airport Navigational Services 0.00 (0.01)
Airport Services 0.44 (1.58)
Non-Aeronautical Airport Services (0.63) (7.11)
Airport Lease Revenue (0.53) (0.80)
Other Income (6.59) 6.13
(7.31) (3.37)
Total (5.46) 0.88

82
 Notes to Financial Statements for the year ended March 31, 2017
32. DISCLOSURE UNDER AS 15 (REVISED) ON “EMPLOYEE BENEFITS”
Defined Contribution Plan: 10 years continuous service. The scheme is
voluntary. The scheme is unfunded and is
AAI pays fixed contribution to Provident Fund at
recognized in Profit & Loss A/c on the basis of
predetermined rate to a separate trust, which invests
actuarial valuation on annual basis.
the funds in permitted securities. The contribution to
the fund for the period is recognized as expense and is C) Gratuity: Gratuity is paid at 15 days salary for
charged to the P& L Account. every completed year of service subject to
rendering of continuous service of not less than
Defined Benefit Plan:
5 years. The ceiling is `10 lakh w.e.f.
A) Leave: AAI provides for earned leave benefit 24.05.2010.
and half pay leave to the employees which
D) Benevolent Fund Scheme: Against contribution
accrue annually at 30 days and 20 days
of ` 26/- p.m. while in service, an employee is
respectively. Earned leave is encashable during
eligible to receive an amount of ` 1560/- every
service subject to keeping residual leave of 30
month for 5 years from the date of
days at the time of encashment and a maximum
superannuation.
of 300 days on superannuation. Half pay leave is
encashable in full on superannuation. The E) Post retirement settlement benefits: At the time
liability for the same is recognized on the basis of superannuation, employees (and
of actuarial valuation. dependents) are entitled to settle at place of
their choice in India. They are eligible for transfer
B) Post Retirement Medical Facility: The retired
traveling allowance etc. as applicable to serving
employee and the spouse are provided medical
employee on transfer. The scheme is unfunded
facilities on payment of one time prescribed
and is recognized in Profit & Loss A/c on the
contribution subject to rendering a minimum of
basis of actuarial valuation on annual basis.
i) Expenses recognized in CWIP/Statement of Profit & Loss Account
( ` In Crores)

Particulars Gratuity Medical Benefits Post Retirement

Settlement
Benefits
YEAR 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
Current Service Cost 12.04 10.32 153.75 126.81 17.61 17.17
Interest cost on benefit obligation 67.65 64.60 47.38 42.28 8.07 8.02
Expected return on plan assets (71.59) (67.56) - - - -
Net actuarial (gain)/loss recognized (43.43) (19.05) (126.87) (72.62) (26.26) (25.08)
in the year
Expenses for the year (35.33) (11.69) 74.26 96.47 0.58 0.11

ii) The amount recognized in the Balance Sheet ( ` In Crores)

Particulars Gratuity Medical Benefits Post Retirement

Settlement
Benefits
YEAR 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
Opening Net Liability (49.45) (37.48) 587.90 531.78 100.94 101.51
Expense as above (35.33) (11.69) 74.26 96.47 0.58 0.11
Employer’s Contribution/ Benefits paid (0.11) (0.28) (52.13) (40.35) (7.51) (0.68)
Employer’s Contribution - - - - - -
Net asset/(liability) recognized in the (84.89) (49.45) 610.03 587.90 92.85 100.94
Balance Sheet
83
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
iii) Changes in the present value of the defined benefit obligations:
( ` In Crores)

Particulars Gratuity Medical Benefits Post Retirement

Settlement
Benefits
YEAR 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
Present value of obligation as 846.65 817.73 587.90 531.78 100.94 101.51
on beginning**
Interest cost 67.65 64.60 47.38 42.28 8.07 8.02
Current Service Cost 12.04 10.32 153.75 126.81 17.61 17.17
Benefits paid directly by employer (0.11) (0.28) (52.13) (40.35) (7.51) (0.68)
Benefits paid from Fund (60.65) (50.12) - - - -
Net actuarial (gain)/loss on obligation (39.49) 4.40 (120.87) (72.62) (26.26) (25.08)
Present value of the defined benefit 826.09 846.65 610.03 587.90 92.85 100.94
obligation as at the end of the
current period**
** including funds available with insurance companies.

iv) Changes in the fair value of plan assets:

( ` In Crores)

Particulars Gratuity
YEAR 2016-17 2015-16
Fair value of plan assets as beginning of year 896.09 855.21
Expected return on plan assets 71.60 67.56
Contributions by employer - -
Benefit paid (60.65) (50.12)
Actuarial gain / (loss) 3.94 23.44
Fair value of plan assets at close of year 910.98 896.09

v) Details of the plan assets (Gratuity)

The details of the plan assets at cost as on 31st March 2017 are as follows:
( ` In Crores)

Description 2016-17 2015-16

Government of India securities - -
Corporate Bonds - -
Special Deposit schemes - -
Insurer managed funds 905.88 890.11
Others 5.10 5.98
Total 910.98 896.09

84
 Notes to Financial Statements for the year ended March 31, 2017
vi) Actuarial Assumptions
Principal assumptions used for actuarial valuation are:
Method used –Projected unit credit (PUC)
Discount rate (Gratuity/Leave/Resettlement)–7.26 % (Previous year 7.99 %)
Discount rate (Post Retirement Medical Benefits) –7.45 % (Previous year 8/06 %)
Expected rate of return on assets (Gratuity only) - 7.26 % (Previous year 7.99%)
Future salary increase - 7 % (Previous year 7%)
Attrition rate – 2 % (Previous year 2%)
The management has relied on the overall actuarial valuation conducted by the actuary.

33. DISCLOSURE UNDER ACCOUNTING STANDARD 18 ON “RELATED PARTY DISCLOSURES “

i) Related parties:

Name of the Subsidiaries Ownership Interest

31.03.2017 31.03.2016
1. Chandigarh International Airport Ltd.(CHIAL) 51% 51%
2. AAI Cargo Logistics & Allied Services Company Ltd. 100% -
(AAICLASCL)

Name of the Joint Ventures Ownership Interest

31.03.2017 31.03.2016
1. Delhi International Airport Pvt. Ltd (DIAPL) 26% 26%
2. Mumbai International Airport Pvt. Ltd (MIAPL) 26% 26%
3. Hyderabad International Airport Pvt. Ltd (HIAL) 13% 13%
(CAP: ` 50 crores)
4. Bangalore International Airport Pvt. Ltd (BIAL) 13% 13%
(CAP: ` 50 crores)
5. National Flying Training Institute, Gondia (NFTIPL) 46% 46%
6. MIHAN India Pvt. Ltd., Nagpur 49% 49%
7. Kannur International Airport Ltd. (KIAL) 26% 26%
(CAP: ` 100 crores)
8. Indian Aviation Academy Autonomous body

ii) Key Management Personnel

• Dr. Guruprasad Mohapatra, IAS (w.e.f. 19.07.2016)
• Shri S.Raheja, Member (Planning)
• Shri S.Suresh, Member (Finance)
• Shri Anuj Aggarwal Member (Human Resources)
• Shri A K Dutta, Member (Air Navigation Services)
• Shri I N Murthy, Member (Operations) (w.e.f. 23.11.2016)
• Shri Rajesh Bhandari, Executive Director (Finance)
• Ms. R. Tulasi Mahalakshmi, Company Secretary

85
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
iii) Details of transactions with the related parties: ( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Annual Fee from JVCs:
DIAPL 2,634.84 2,302.66
MIAPL 1,191.54 1,066.23
Addition to Equity Shares holding
AAICLASCL 25.00 -
KIAL 50.00 50.00
CHIAL 489.32 -
Operation Support Cost/retirement compensation
received :
DIAPL 17.60 18.25
MIAPL 19.29 19.98
Other receipts
DIAPL 0.00 19.62
MIAPL 0.19 23.69
Dividend Received from BIAL 4.99 -
MIHAN INDIA LTD (MIL)
Amount receivable towards :-
-Operation support cost 50.43 85.62
-Amount Payable 2.70 24.73
CHIAL
Amount Receivable (payable) (1.30) 18.14
Net Amount Payable to AAICLASCL 0.03 -
Advance for Investment as on closing date
CHIAL 0.00 486.13
KIAL 0.00 50.00
MIHAN INDIA LTD(MIL) 86.72 86.20
Amount receivable towards running 0.80 0.93
Cost of Indian Aviation Academy
Remuneration to Key Management Personnel 3.11 2.68

iv) Corporatization of AAI Cargo Operations
As approved by AAI Board in its 168th Board
Meeting held on 14/03/2016 vide Agenda item
no.168.6, AAI Cargo Logistics & Allied Services
Company Ltd. (100% owned subsidiary of AAI)
has been incorporated on 11th August, 2016
86
under the Companies Act, 2013 for Cargo and
allied operations.
However during the FY 2016-17, transactions
relating to Cargo activities for the post-
incorporation period have also been reflected in
AAI books. All statutory tax compliances have
also been met by AAI.
 Notes to Financial Statements for the year ended March 31, 2017
v) AAI Assets of Nagpur airport amounting
` 86.72 crores handed over to MIL is shown as
advance for equity contribution by AAI in MIL till
the authorized share capital of the JVC is
increased and shares are issued.
vi) As per decision of GOI, NIAMAR has been
renamed as Indian Aviation Academy (IAA) and
registered as a society in July 2010 under
Societies Registration Act, 1960. A MOU has
been signed among AAI, DGCA and BCAS for
imparting training at IAA and sharing of
recurring expenditure. Pending decision with
respect of proportion of expenditure to be borne
by each entity, an amount of ` 0.80 crores being
two third of the recurring expenditure incurred
during the year has been shown as amount
recoverable from DGCA/BCAS, being their share
of recurring expenditure in the books of AAI.
34. D I S C L O S U R E U N D E R A C C O U N T I N G
STANDARD -19 ON ‘LEASES’
Operation, Management & Development of
IGI (Delhi) & CSI (Mumbai) Airports
(i) The Operation, Management & Development of
IGI Airport, (Delhi) and CSI Airport, (Mumbai)
was handed over on operating lease to DIAL and
MIAL w.e.f 3rd May 2006 on a revenue sharing
model for initial term of 30 years extendable by
another 30 years. Fixed assets that have been
leased to DIAL and MIAL are included under
“Fixed Assets”.
(ii) The assets (Gross Block ` 7.38 crore) of AAI has
been demolished / disposed off by MIAL in
connection with modernization of CSI Airport,
Mumbai consequently an amount of
` 0.83 crore has been shown as profit on sale of
fixed assets. During the FY 2016-17 and gross
block with accumulated depreciation has been
withdrawn from books of accounts. Total assets
(Gross block of ` 2.56 crore) has been disposed off
by DIAL during FY 2016-17 and a sum of ` 0.35 lakh
has been shown as profit on sale of assets.
(iii) Upfront Fees:- AAI has received an upfront Fee of
` 150 crore each from DIAL and MIAL at the time
of leasing out the airport at Delhi and Mumbai.
The upfront fee is a lumpsum amount paid for
leasing out the airport in addition to lease rent
and is a revenue receipt. AAI has treated the
same as deferred revenue income to be spread
over entire lease period of 30 years. Accordingly
every year a portion of the lease amount is being
transferred to profit and loss account as Upfront
fees income. Unadjusted amount as on
31.03.2017 in this regard is ` 191.10 crore.
i. Income from Leasing-DIAL/MIAL:-AAI has
accounted for share of revenue received
from DIAL/MIAL on actual basis for the year
2016-17.
ii. AERA has determined the aeronautical tariff
in respect of IGI Airport effective from
1.4.2014. DIAL has moved to Delhi High
Court and AERAAT challenging the fixation
of tariff. The Delhi High Court has stayed the
implementation of the new tariff, pending
the decision of the case by AERAAT.
AERA has determined the tariff in respect of
Mumbai Airport for the second control
period vide order no. F.no.AERA/2010/
MYTP/ MIAL/CP-II/2016-17/Vol- VI order
No.13/2016-17 dated 29th Sept 2016 . The
new tariff was effective from Ist Nov 2016.
Accordingly Annual fee receivable from JVCs
computed as a percentage of revenue
as defined under OMDA amounting
to` 3826.38 crore from DIAL
(` 2634.84 crore) and MIAL (` 1191.54 crore)
is recognized in Profit & Loss account under
the head “Income from Leasing of Airports”.
Cost, including depreciation is recognized as
an expense in the Profit and Loss Account.
(iv) As per OMDA, the operation support period of
3 years has expired on 2nd May 2009. During
the year (2016-17) an amount of ` 36.89 crore
(MIAL ` 19.29 crore and DIAL ` 17.60 crore) was
received from JVCs towards retirement
compensation for employees who have not
opted for absorption in terms of OMDA.
This amount is being set off against pay and
allowances, retirement and VRS cost. An amount
of ` 19.08 lakh received towards interest on
shortfall in MAF was received from MIAL.
(v) AAI permitted DIAL and MIAL to pay the
retirement compensation in respect of
employees who have not opted for absorption in
terms of OMDA spread over a period of ten years
from 1.05.2009 vide AAI/JVC-14/VRS/2011-12.
Accordingly AAI has calculated the monthly
amount to be received from DIAL and MIAL in
respect of retirement compensation spread over
a period of ten years. The amount to be collected
from DIAL is ` 34.89 crore and MIAL is
` 37.91 crore during the period April 2017 to
April 2019.
87
22 nd
Annual Report 2016-17
Notes to Financial Statements for the year ended March 31, 2017
(vi) In terms of State Support Agreement executed
between Government of India (GOI) and DIAL &
MIAL, GOI has provided guarantee to JVCs on
behalf of AAI in respect of obligation of the AAI
to make payments to JVCs in respect of purchase
of Transfer Assets and Non-Transfer Assets by
the Authority upon termination or expiry of
OMDA. AAI has given counter guarantee to GOI
and paid guarantee fee of ` 1.61 crore for DIAL
and MIAL ( ` 80.50 lakh each).
(vii) AERA vide its order No. 28/2011-12 dated
8.11.2011 and subsequent revised order
No.30/2012-13 dated 28.12.2012 has approved
levy and collection of Development Fee (DF) at
IGI Airport by DIAL. Accordingly, an Escrow
account was opened by AAI to regulate all
receipt of DF amount as per Airports Authority of
India (Major Airports) Development Fees Rule
2011. Development Fee amount so collected in
the escrow account is to be utilized for
repayment of debt obtained against the
securitization of DF approved by AERA. Levy of
DF has been discontinued w.e.f 00.00 hrs of 1st
May 2016 as per AERA order no 47/2015-16
dated 27/01/2016 on the subject
The abstract of this account is furnished as
under:-
(a) Amount remitted to DIAL during the year
2016-17 : ` 84.88 crore
(b) Balance amount in escrow account as on
31.03.2017 to be remitted to DIAL for
Service tax as per DF rules: ` 2.49 crore
(viii) AERA vide its order No. 2/2012-13 dated
16.04.2012 and subsequent issue of revised
order No. 29/2012-13 dated 21.12.2012 has
approved levy and collection of Development fee
(DF) at CSIA airport. Accordingly, an escrow
account has been opened by AAI to regulate all
receipt of DF amount as per Airports Authority of
India (Major Airports) DF Rules 2011
.Development Fee amount so collected in the
escrow account is to be utilized for repayment of
debt taken against the securitization of DF or
payment for creation of aeronautical asset by
MIAL approved by AERA.
The abstract of this account is furnished as
under:
(a) Amount remitted to MIAL during the Year
2016-17: ` 408.34 crore out of Development
Fee (for Airport Development A/c)
88
(b) Balance amount in escrow amount as on
31.03.2017 to be remitted to MIAL for
repayment of debt and Service tax as per DF
rules: ` 10.51 crore
Further, vide AERA has order no 46/2015-16
dated 28th Jan 2016 (issued on 29th Jan 2016)
has approved additional DF of ` 20/- and ` 120/-
per embarking Domestic and International
Passengers at Mumbai Airport for Metro
Connectivity at Mumbai Airport from 01st April
2016. An Escrow Account in the name of AAI
(CSIA) DF –II Escrow account has been opened
with HDFC bank in order to collect and Utilization
of Development Fee (DF).
The abstract of this account (i.e DF-II Account) is
furnished as under:
(a) Amount remitted to MMRC during the Year
2016-17 : ` 50.00 crore out of Development
Fee-II (for Metro Connectivity A/c)
(b) Balance amount of ` 24.36 crore is available
in AAI (CSIA) DF-II Escrow Account as on
31.03.2017 to be remitted to MIAL for
payment to MMRC for Metro Connectivity
and Service Tax as per DF rules.
(ix) AAI had requested the JVC operators at Delhi
and Mumbai (DIAL/MIAL) to share the revenue
arising out of collection of Marketing fund
electricity and property tax. MoCA has obtained
the legal opinion of Ministry of Law and Justice
on the issue relating to Marketing Fund, property
tax and electricity who vide opinion dated
December, 2016 opined that the said heads
are not to be treated as revenue and shared
with AAI.
The matter relating to utilization of custom duty
scrips has been referred to Arbitration by the
Hon’ble Delhi High Court. AAI has appointed
nominee Arbitrator and DIAL / MIAL have also
appointed their nominee Arbitrators. The
nominee Arbitrators have to appoint the third
presiding Arbitrator.
x) Service Tax Department has issued Demand
Cum Show Cause notices demanding service
tax (under the ‘Franchise Service’ category)
amounting to ` 1567.30 crore towards Annual
Fees and the Upfront Amount received from
DIAPL and MIAPL since 3rd May 2006 to 31st
March 2015 under OMDA of which year wise
details is follows:-
 Notes to Financial Statements for the year ended March 31, 2017
( ` In Crores)

YEAR SCN DATE SERVICE TAX TOTAL SERVICE TAX

DIAPL MIAPL
2006-07 01.06.2009 50.88 45.12 96.00
2007-08 01.06.2009 48.70 40.32 89.02
2008-09 01.06.2009 55.86 47.65 103.52
2009-10 21.01.2011 56.15 40.74 96.89
2010-11 21.10.2011 59.46 47.25 106.71
2011-12 05.10.2012 72.52 53.90 126.42
2012-13 23.05.2014 189.50 70.67 260.17
2013-14 22.04.2015 227.18 103.32 330.50
2014-15 12.04.2016 243.22 114.86 358.08
Total 1,003.46 563.84 1,567.30

However, two writ petitions filed by DIAPL and MIAPL
in 2008 (on the applicability of service tax on Upfront
amount and Annual Fees received by AAI from DIAL
and MIAL), Hon’ble High Court has passed the
Judgement on 14.02.2017 and held that “OMDA does
not constitute a “Franchise“ in terms of Section 65(47)
of Finance Act, and the transaction between the
Petitioners and AAI does not constitute a taxable
service in terms of section 65(105) (zze) of the
Finance Act.“
The liability towards Service Tax for the period 2006-07
to 2013-14 has been adjudicated by Commissioner of
service tax for a total amount of ` 1407.25 crore
(` 816.58 crore towards Service Tax for the period
2006-07 to 2011-12 including penalty of ` 260 crore
(+) ` 260.17 crore towards Service Taxfor the F. Y.
2012-13 (+) ` 330.50 crore towards Service Taxfor the
F. Y. 2013-14). The adjudicating authority has also
brought out in adjudication order that interest at
appropriate rate for the period from the date of service
tax due to till the date of payment shall be recovered
from AAI u/s 75 of the Finance Act, 1994 and Penalty
imposable u/s 76 & 77 of the Finance Act, 1994.
AAI has filed appeals in Customs, Excise & Service Tax
Appellate Tribunal (CESTAT) for early disposal/hearing
of Petitions already filed based on the Judgment of
Hon’ble High Court of Delhi. Next date of hearing in all
the appeals filed against the above adjudication
orders, is 24.05.2017.
35. DISCLOSURE UNDER ACCOUNTING
STANDARD – 28 ON IMPAIRMENT OF ASSETS
As per the assessment of the Management, there is no
Material change in the position as on 31.03.2017 to
further recognize or review the effect given for
Impairment of Assets during the FY 2013-14 in the
Accounts of AAI for the FY 2016-17.
36. COMMITMENTS
a) Estimated amount of contracts remaining to be
executed on capital account including letters of
credit and not provided for amounts to
` 1844.28 crore (Previous year ` 1152.97 crore) as
on Balance Sheet date.
b) AAI has export obligations to the extent of
` 618.60 crore on account of concession in Custom
duty availed under EPCG license scheme on import
of Equipment/spares.
37. As AAI is not a company registered under
Company’s Act 2013, the requirement of
consolidation of accounts of AAI and Chandigarh
International Airports Ltd. (where AAI is having 51%
share holding) as on 31.3.2017 is not applicable.
However, the accounts of Chandigarh International
Airports Ltd will be annexed to annual report of AAI for
the FY 2016-17.

89
22 nd
Annual Report 2016-17

Notes to Financial Statements for the year ended March 31, 2017
38. CONTINGENT LIABILITIES
Claims not acknowledged as debts:
( ` In Crores)

Particulars As at 31st As at 31st

March 2017 March, 2016
Land cases 448.53 406.49
Compensation claims of Accident 2.92 2.68
Cases under Arbitration 880.05 722.48
Claims against Cargo 10.91 2.80
Court Cases 128.18 217.99
Sales tax/Service Tax/ Municipal tax/income tax etc. 162.39 233.69
Others 78.15 77.63
Total 1,711.13 1,662.21

39. GUARANTEES EXECUTED

During the year the guarantees for ` 14.53 crore have been issued/renewedin favour of State Electricity
Companies and Department of Telecommunication.

40. EXPENSES IN FOREIGN CURRENCIES

( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Capital Goods purchase 326.15 204.00
Spare parts 87.57 6.67
Foreign travel 8.91 7.61
Repayment of Foreign loans 2.52 4.99
Others 0.13 53.62

Total 425.28 276.89

41. EARNINGS IN FOREIGN EXCHANGE (including Deemed )

( ` In Crores)

Particulars FY 2016-17 FY 2015-16

Services 979.61 915.98

90
 Notes to Financial Statements for the year ended March 31, 2017
42. EPF TRUST
i) EPFO vide their letter dated 30.05.2012 has
raised a demand of ` 227.17 crore towards
damages for delay in remittance of monthly
contributions from 04/1995 under section 14B
of EPF & MP Act, 1952. This levy is being
contested in the Honourable High Court of Delhi
for which decision is pending.
ii) EPFO vide their letter No.E/DL/36478/Rec/
3203-3208/1581 dated 11.12.2014 withdrew
relaxation granted to AAI under Para 27 (A) of
the EPF & MP Act, 1952 read with para 17 (2) to
maintain the Provident Fund in-house. AAI
approached Ministry of Labour& Employment,
Government of India for restoration of
relaxation granted to AAI. It was decided in a
meeting held on 29.05.2015 in presence of
Ministry of Labour, EPFO & AAI officials to
restore the relaxation granted to AAI
temporarily till the judgment of the Hon’ble
High Court related to Damages issue. Again
few queries were raised by EPFO vide letters of
even No.E/DL/37478 Exempted/EO/2016
dated 21.01.2016, 15.06.2016 and 29.09.2016
which have been addressed and final replies
submitted vide F.No.AAI/EPF/CHQ/2016-17
dated 28.11.2016. Final decision from EPFO,
however, is still awaited.
43. SEGMENT REPORT AND CASH FLOW
STATEMENT
Segment report and Cash Flow Statement for
the financial year ended 31st March 2017 are
annexed herewith.
R. Tulasi Mahalakshmi Rajesh Bhandari
Company Secretary ED (F&A)
New Delhi
June 06, 2017
44. REGIONAL CONNECTIVITY SCHEME (RCS)
Ministry of Civil Aviation, Govt. of India, has
launched Regional Connectivity Scheme (RCS)
to stimulate regional air connectivity by making
it affordable. AAI has been nominated as the
Implementing Agency for RCS-UDAN , hence
will be responsible for collection and
disbursement of funds. For implementing the
Scheme, AAI is to be paid administrative charges
at the rate of 5% of amount collected in RCF
every month. For management of RCF, a Trust
has been created on 25.04.2017. As per MoCA
Order dated 09.05.2017, RCS will be funded by
creation of a Regional Connectivity Fund by
imposing a RCS levy on scheduled airline
operators w.e.f. 01.06.2017 @ ` 5000/-
per flight.
45. GENERAL
(i) Balances in advances/customer account/liability
etc. are subject to confirmation/reconciliation.
(ii) Losses pending investigation amounts to
` 7.77 lakh (previous year ` 7.77 lakh).
(iii) As per the legal opinion from our trustees IDBI
Trusteeship Services Ltd received on 3rd May
2013, and as notified by Ministry of Corporate
affairs, GOI. AAI has created a Debenture
Redemption Reserve (DRR) for ` 402.50 crore.Out
of this an amount of ` 202.50 crore (previous year
` 75 crore) has been transferred from this
reserve to General reserves on redemption of
bonds amounting to ` 810 crore during
FY 2016-17 (previous year ` 300 crore).
S.Suresh Dr. Guruprasad Mohapatra
Member (Finance) Chairman
91
 Notes to Financial Statements for the year ended March 31, 2017

92
22
SEGMENT REPORT
nd

( ` In Crores)
FY 2016-17 FY 2015-16
Particulars North South West North- East Unallocated Grand North South West North- East Unallocated Grand
East Total East Total

Segment Revenue 1,455.62 2,988.12 1,642.56 230.54 1,835.22 3,980.46 12,132.51 1,249.59 2,627.90 1,482.30 182.09 1,422.49 3,477.42 10,441.79

Segment Results
Segment Result (Profit/Loss) 15.59 787.29 348.02 (115.32) 412.18 - 1,447.77 (17.73) 637.19 361.66 (106.48) 201.88 - 1,076.52
Annual Report 2016-17

Unallocated Corporate Exp. - - - - - 1,181.74 1,181.74 - - - - - 1,067.90 1,067.90

Operating Profit 15.59 787.29 348.02 (115.32) 412.18 2,798.72 4,246.49 (17.73) 637.19 361.66 (106.48) 201.88 2,409.52 3,486.04
Interest Expenses - 22.44 - - 52.47 23.46 98.37 - 51.32 - - 84.21 35.87 171.40
Interest Income 3.29 7.50 3.15 0.74 2.04 392.78 409.50 2.68 5.39 2.47 0.43 1.75 369.99 382.71

Profit before Tax 18.88 772.35 351.17 (114.57) 361.75 3,168.04 4,557.61 (15.05) 591.26 364.13 (106.05) 119.42 2,743.64 3,697.35
Income Tax Exp/Provisions - - - - - 1,441.68 1,441.68 - - - - - 1,159.99 1,159.99

Profit after Tax 18.88 772.35 351.17 (114.57) 361.75 1,726.35 3,115.93 (15.05) 591.26 364.13 (106.05) 119.42 1,583.65 2,537.36

Other Information

Segment Assets 2,187.59 4,067.74 2,000.12 437.53 3,156.28 - 11,849.26 2,091.05 4,109.17 1,994.48 374.12 3,188.89 - 11,757.71
Unallocated Assets - - - - - 14,931.95 14,931.95 - - - - 13,499.63 13,499.63

Total Assets 2,187.59 4,067.74 2,000.12 437.53 3,156.28 14,931.95 26,781.21 2,091.05 4,109.17 1,994.48 374.12 3,188.89 13,499.63 25,257.34
Segment Liabilities 552.02 577.92 432.14 81.92 649.07 2,293.07 510.20 874.36 433.90 73.79 1,168.88 - 3,061.13
Unallocated Liabilities - - - - - 9,432.77 9,432.77 - - - - - 9,125.70 9,125.70
Total Liabilities 552.02 577.92 432.14 81.92 649.07 9,432.77 11,725.83 510.20 874.36 433.90 73.79 1,168.88 9,125.70 12,186.83
Capital Expenditure 378.19 637.74 242.38 142.12 366.51 49.57 1,816.51 390.34 393.12 237.09 102.48 293.45 79.79 1,496.27

Non-Cash Expenditure - - - - - - - - - - - - - -
Depreciation, Amortisation 234.36 532.54 214.85 49.16 374.90 26.99 1,432.79 208.94 531.26 206.27 50.34 377.70 26.94 1,401.45
& Impairment
Major Non-Cash Expenditure 179.14 305.32 143.44 12.26 187.23 9.73 837.09 177.18 259.76 122.87 0.37 108.95 (0.83) 668.29
(Provision for Doubtful
Debts, Prior Period
Depreciation & Bad Debts)
Cash Flow Statement for the Financial Year ended 31st March, 2017
( ` In Crores)
YEAR ENDED
PARTICULARS
2016-17 2015-16
A CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation and exceptional item 4,557.61 3,697.35
Adjustments for:
Depreciation, Amortisation and Impairment 1,432.79 1,401.45
Prior Period Depreciation 42.91 21.21
Financing Costs 98.37 171.40
Other Misc. Items (114.77) (15.20)
Adjustment for provisions-net made during the year (95.09) 264.54
Adjustment for Accumulated Provision For Doubtful debts 794.20 647.08
Dividend Income from JVC-BIAL (4.99) -
Interest Income (409.50) (382.71)
(Profit) on Assets Sold/discarded, net (105.67) (46.14)
Operating Profit before Exceptional items & Operating Capital Changes 6,195.86 5,758.98
Increase in Other Operating Assets (839.14) (358.96)
Increase in Operating Liabilities 330.06 365.94
Cash Generated from Operations 5,686.78 5,765.96
Direct Taxes Paid (Net of Refunds) (1,918.42) (1,632.52)
Net Cash Generated from Operating Activities - A 3,768.36 4,133.44
B CASH FLOW FROM INVESTING ACTIVITIES
Addition to/Purchase of Fixed Assets/CWIP/Advances for Capital Works (1,542.27) (1,402.18)
Proceeds from Sale of Fixed Assets 106.66 32.67
Bank Deposits more than 3 months (795.00) (1,104.00)
Dividend Income from JVC-BIAL 4.99 -
Interest Received 379.23 292.40
Investments/advance for investments in joint venture companies (28.19) (115.30)
Net cash used in Investing activities - B (1,874.58) (2,296.40)
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Govt. in the form of Capital grants 110.07 101.85
Refund of Capital Grant - (14.89)
Payment of Interest & other Financing charges (114.13) (148.07)
Proceeds from Long Term Borrowings - 67.50
Repayment of Borrowings (880.02) (302.50)
Dividend paid (1,042.21) (813.85)
Tax on dividend paid (212.17) (165.68)
Net cash from Financing activities - C (2,138.46) (1,275.64)
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) (244.68) 561.39
Cash & cash equivalents as at the beginning of the financial year 737.58 176.19
Cash & cash equivalents as at the end of the financial year 492.90 737.58

Notes:-
1. The above Cash Flow Statement has been prepared under the 'Indirect method' as set out in the Accounting Standard -3 on Cash
Flow Statements issued by The Institute of Chartered Accountants of India.
2. Bracket indicates cash outflow/reduction.
3. Figures for previous year have been regrouped wherever necessary for uniformity in presentation.

93
22 nd
Annual Report 2016-17

94
 AUDIT REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF
INDIA ON THE ACCOUNTS OF AIRPORTS AUTHORITY OF INDIA FOR
THE YEAR ENDED 31 MARCH 2017
We have audited the attached Balance Sheet of the
Airports Authority of India (AAI) as at 31 March 2017
and the Profit and Loss Account for the year ended on
that date, under Section 28(2) of the Airports
Authority of India Act, 1994 (AAI Act 1994) and the
Airports Authority of India (Annual Report and Annual
Statement of Accounts) Rules, 2014. These financial
statements include the accounts of 60 self-accounting
units. These financial statements are the responsibility
of the AAI's management. Our responsibility is to
express an opinion on these financial statements
based on our audit.
We have conducted our audit in accordance with
auditing standards generally accepted in India. These
standards require that we plan and perform the audit
to obtain reasonable assurance about whether the
financial statements are free from material
misstatements. An audit includes examining, on a test
basis, evidences supporting the amounts and
disclosures in the financial statements. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall presentation of financial
statements. We believe that our audit provides a
reasonable basis for our opinion.
Based on our audit, we report that:
(i) We have obtained all the information and
explanations, other than the basic records of
DIAL and MIAL (JVCs) and their JVs in order to
certify the total revenue of DIAL and MIAL and
correspondingly the share of AAI as per
Operation, Management and Development
Agreement (OMDA) (details given in para B (1.1)).
1.2 Current Liabilities
Other Current Liabilities (Note No.5): ` 2774.14 crore
(a) The above did not include an amount of ` 25.14 crore as per details below:
(ii) The Balance Sheet and Profit and Loss Account
dealt with by this report have been drawn up in
the format approved by the Government of India
under clause (g) sub section (2) of Section 41 of
the AAI Act, 1994 and Airports Authority of India
Rules, 2014.
(iii) In our opinion, proper books of accounts and
other relevant records have been maintained by
the AAI as required under Section 28(1) of the
AAI Act, 1994 in so far as it appears from our
examination of such books except that:
A. Balance Sheet
1. Equity and Liabilities
1.1 Non-Current Liabilities
Long-Term Provisions (Note No-6) ` 6644.98
crore
Other Provisions: ` 446.36 crore
The above includes an amount of ` 445.74 crore
towards provisions made as "other provisions-
rehabilitation" from the year 1996-97 to 2013-14.
The provision was created to rehabilitate the
encroachers of land at airports of AAI. However,
out of total provision created, only a meagre
amount of ` 2.52 crore was utilised till March
2017. Moreover, no further expenditure is
envisaged by AAI against such provision as on 31
March 2017. Thus maintenance of such
provision is in contravention of the provisions of
AS-29 and should have been reversed. This has
resulted in overstatement of 'Long Term
Provisions' and consequent understatement of
'Profit' by ` 445.74 crore.
( ` In Crores)

S. N. Particulars Amount
(i) Non-provision of liability for deployment of security personnel, salary/ 12.02
DA arrear at Ludhiana, Pathankot, Leh and Bhuntar.
(ii) Non-provisioning of liability for deficiency charges payable to South Delhi Municipal Corporation. 5.17
(iii) Non-provision of liability towards Cost Recovery Charges demanded by Customs 5.72
Department at Amritsar Airport for the period April 2005 to December 2016
(iv) Non-provision of liability of service charges payable to Corporation of Chennai 0.92
(v) Non-provisioning of compensation award in relation with extension and strengthening of 0.32
runway and allied work at Maharana Pratap Airport, Udaipur
(vi) Non-provision of liability for spares delivered by supplier in March 2017 0.99
Total 25.14

95
22 nd
Annual Report 2016-17

This has resulted in understatement of 'Other Current Liabilities' by ` 25.14 crore, understatement of 'Expenses' by
` 23.83 crore, CWIP by ` 0.32 crore, Inventory-spares' by ` 0.99 crore and consequent overstatement of Profit for
the year by ` 23.83 crore.
(b) The Current Liabilities include excess provision of liability of ` 109.43 crore on account of the following:
( ` In Crores)

S. N. Particulars Amount
(i) Non-adjustment of liability on account of balance unspent VRS compensation received 106.02
from DIAL and MIAL.
(ii) Non-adjustment of liability towards TDS of employees already paid. 2.65
(iii) Anti-hijacking expenses to be met by Government of Andhra Pradesh have been shown 0.76
as liability of AAI.
Total 109.43
This has resulted in overstatement of Current Liabilities by ` 109.43 crore and understatement of 'Profit for the
year' to the same extent.
2. Assets
Non-Current Assets
2.1 Fixed Assets
2.1.1 Tangible Fixed Assets (Note 8): ` 7669.50 crore
(a) This included an amount of ` 4.71 crore incurred as per details given below, which should not have been
capitalised in the books of accounts of AAI:
( ` In Crores)

S. N. Particulars Amount
(i) Re-carpeting work at tango taxi and perimeter road at Jaipur Airport (` 2.58 crore); 3.45
replacement of flooring and false ceiling at Leh Airport (` 0.48 crore); earth work related to
levelling and grading of strip at Bhuntar Airport (` 0.22 crore) and cost of paver blocks over
damaged bitumen road at Jodhpur Airport (` 0.17 crore).
(ii) Proportionate cost recoverable from Director General of Civil Aviation towards integrated 0.68
office complex and furniture at Lucknow Airport.
(iii) Interest earned on mobilization advance given to the contractor, not set off against the
cost of construction of Terminal Building, Ceremonial Lounge etc. at Vijaywada Airport. 0.58
Total 4.71

This has resulted in overstatement of Fixed Assets and Income by ` 4.71 crore and ` 0.58 crore, respectively,
and understatement of expenses by ` 3.45 crore and Current Assets (i.e. recoverable from DGCA) by ` 0.68 crore.
This consequently resulted in overstatement of 'Profit for the year' by ` 4.03 crore (` 3.45 crore +
` 0.58 crore).
(b) The above did not include an amount of ` 22.14 crore as per details below, which should have been capitalised
in the books of accounts of AAI:
( ` In Crores)
S. N. Particulars Amount
(i) Non-capitalization of cost of development of land at Rangpuri for shifting of land 21.08
owners of Nangal Dewat village.
(ii) Non-capitalization of completed building work at Jaipur (` 0.88 crore) and enhanced 1.06
compensation & interest paid to land owners as per court orders at Jammu Airport
(` 0.18 crore)
Total 22.14

96
This has resulted in understatement of Fixed Assets by ` 22.14 crore and overstatement of 'Expenses' by
` 21.26 crore (21.08+0.18) and CWIP by ` 0.88 crore. Resultantly, 'Profit for the year' understated by ` 21.26 crore.
2.1.2 Capital work-in-progress (Note No.10): ` 1651.55 crore
The above included an amount of ` 106.34 crore, as per details given below, which should not have been booked
in CWIP:
( ` In Crores)

S.N. Particulars Date of Amount Amount of

completion/ Depreciation
commissioning
1. Completed works included in CWIP
• Conveyor line and additional departure conveyors 28-07-2016 10.08 1.11
for common handling line at Kolkata Airport
• DVOR including civil work at Aligarh Airport 28-12-2016 0.51 0.03
• installation of passenger boarding bridges, 29-12-2015 3.25 0.30
car parking work, compound wall at Surat Airport 23-08-2016 (incl. prior
30-05-2016 period
` 0.01
crore)
• Supply installation and testing of X-BIS (Baggage 29-08-2016 1.61 0.18
Inspection System) at Indore
• Non-capitalization of photocopier, Master Clock Between 3.99 3.05
System, printers and SAP at Corporate Headquarters 31-08-2013 (incl. prior
of AAI and period
31-03- 2016 ` 2.26
crore)
Sub Total 19.44 4.67
2 Works executed on behalf of other agencies but included in CWIP of AAI
• Cost of construction of Indian Aviation Academy constructed on 82.27 --
behalf of Director General of Civil Aviation (DGCA) and Bureau of
Civil Aviation and Security (BCAS) against deposit work. An amount of
` 74.01 crore received from DGCA and BCAS was also lying
unadjusted in the accounts of AAI.
• Proportionate cost of BCAS/AAI building and furniture at Amritsar 3.48 --
Airport which was recoverable from BCAS
Sub Total 85.75 -
3 Revenue nature of expenses booked in CWIP
Renovation of toilets, glass partition and false ceiling 1.15 --
at Kangra Airport ` 0.10 crore) and replacement of
existing tile flooring at Srinagar Airport (` 10.05 crore)
Grand Total (1+2+3) 106.34 4.67

This has resulted in overstatement of CWIP by an
amount of ` 106.34 crore and understatement of
'Tangible Fixed Assets' by ` 19.44 crore,
understatement of 'Recoverable from Government/
Others' by ` 11.74 crore (` 85.75 crore ` 74.01 crore)
and overstatement of 'Deposit Works' by ` 74.01
crore. Resultantly, expenses (including Depreciation) is
understated and 'Profit' is overstated by ` 5.82 crore
(` 1.15 crore + ` 4.67 crore).

97
22 nd
Annual Report 2016-17

B. Statement for Profit and Loss
1. Income
1.1 Airport Lease Revenue (Note No.23):
` 3836.75 crore
The above includes airport lease revenue from Delhi
International Airport Limited (DIAL- ` 2634.84 crore)
and Mumbai International Airport Limited (MIAL -
` 1191.54 crore), for the year 2016-17. As per clause
1.1 of Operation Management and Development
Agreements executed by Airports Authority of India
(AAI) for Delhi and Mumbai Airports with the Joint
Venture Companies (JVCs), viz., Delhi International
Airport Limited (DIAL) and Mumbai International
Airport Limited (MIAL) respectively and the JVCs were
required to share their pre-tax gross revenue (DIAL -
45.99 percent and MIAL - 38.70 percent) with AAI.
To ensure the correctness of revenue shared with AAI,
as per clause 11.2 of the OMDA, an independent
revenue auditor was appointed by DIAL/MIAL and
AAI, who certified the revenue to be shared by these
JVCs with AAI. Though the Independent Auditors had
highlighted in their audit reports for the year 2015-16
that they were not provided total access to books of
accounts of JVCs. However, the reports of the
Independent Auditors for the year 2016-17 were silent
on the issue. The Management too did not respond to the
clarification sought by Government Audit on whether
access to books of accounts of JVCs was allowed to the
Independent Auditors during year 2016-17.
Further, review of records revealed that AAI is
dependent on the Revenue Auditors' report (quarterly)
to account for the airport lease revenue being earned
from these JVCs in its books of accounts and AAI is not
independently verifying the correctness of the airport
lease revenue calculations. Moreover, AAI could not
produce any basic records to Audit for verifying the
C. Notes to Accounts
(1) Contingent Liabilities (Note No.38)
Claims not acknowledged as debts: ` 1711.13 crore
The above note was deficient to the extent that it did not include an amount of ` 351.77 crore as per details below:
correctness of revenue accruing to DIAL from their
Joint Ventures and the share of revenue transferred to
AAI as per OMDA. In the absence of relevant records,
the veracity of airport lease revenue of ` 3826.38 crore
pertaining to DIAL and MIAL as reflected in the books
of accounts could not be vouchsafed.
1.2 Other Income (Note No.24): ` 681.47 crore
The above did not include an amount of ` 6.89
crore towards interest accrued but not due on
the Fixed Deposits of ` 597.00 crore for the
period from 18 January 2017 to 31 March 2017.
Not accounting the above, resulted in
understatement of 'Income' as well as 'Profit for
the year' by ` 6.89 crore.
2. Expenses
Administrative and Other Expenses (Note
No.27)
Provision for Bad and Doubtful Debts:
` 794.20 crore
As per accounting policy on 'Trade Receivables', debts
more than two years old, recoverable from parties
other than Government Departments are considered
doubtful and provided for. In cases where matter has
been referred to arbitration/litigation/disputed
necessary provision is made in the accounts
irrespective of the period of debt. Security deposit is
not considered while making the provision for
doubtful debts.
Provisions for doubtful debts included an amount of
` 155.01 crore (in respect of accounts of Indira Gandhi
International Airport Coordination Unit, under
Northern Region of AAI) whereas the amount eligible
for provision as per the above accounting policy was
` 116.53 crore. This resulted in overstatement of
'Provision for Bad and Doubtful Debts' by ` 38.48 crore
and understatement of 'Trade Receivables' as well as
'Profit for the year' to the same extent.
( ` In Crores)

S. N. Particulars Amount
(i) Amount demanded by Land Acquisition Officer, Jaipur for land admeasuring 43.49 acres 246.40
under possession of AAI and covered with boundary wall in respect of which AAI had
approached the Government of Rajasthan for transfer of the land free of cost.
(ii) Claim lodged by Director General of Police, Jammu and Kashmir Police for deployment of 13.17
police personnel for security at Leh Airport during the period from January 1991 to March 2014
(iii) Short disclosure of amount claimed by various parties in Northern Region 67.60
(iv) Amount claimed by CISF for deployment of its personnel at various airports, but not 24.60
acknowledged by AAI
Total 351.77

98
(2) Air Traffic Control (ATC) Tower-cum-Air Traffic
Services (ATS) Complex along with Communication
Navigation and Surveillance (CNS)/Air Traffic
Management facilities was constructed at IGI Airport,
New Delhi, with the funds of ` 350.00 crore provided
by DIAL in terms of the CNS-ATM Agreement signed
(April 2006) between AAI and DIAL and were handed
over to AAI before 31 March 2017. However, neither
the cost of completed buildings was shown in the
books of accounts of AAI nor the fact was disclosed in
the Notes to Accounts.
(iv) Subject to our observations in the preceding
paragraphs, we report that the Balance Sheet
and Profit and Loss Account dealt with by this
report are in agreement with the books of
accounts.
Place : New Delhi
Dated : 11th October, 2017
(v) In our opinion and to the best of our information
and according to the explanations given to us,
the said financial statements read together with
the Accounting Policies and Notes to Accounts,
and subject to the significant matters stated
above and other matters mentioned in Annexure
to this Audit Report give a true and fair view in
conformity with accounting principles generally
accepted in India;
(a) In so far as it relates to the Balance Sheet, of
the state of affairs of the AAI as at 31 March
2017; and
(b) In so far as it relates to the Profit and Loss
Account, of the profit for the year ended on
that date.
For and on behalf of the
Comptroller and Auditor General of India
(Neelesh Kumar Sah)
Principal Director of Commercial Audit
& Ex-officio Member Audit Board-I,
New Delhi.
99
22 nd
Annual Report 2016-17
Annexure to the Audit Report
of the Comptroller and Auditor General of India on the accounts of
Airports Authority of India for the year ended 31st March 2017
1. Internal Audit System
The Internal Audit of AAI is conducted by the separate
Internal Audit Cell headed by Executive Director and
Chartered Accountants are engaged on need basis for
internal audit at various Regions/Airports.
2. Internal Control System
The following deficiencies were noticed in audit:
(i) Deficiencies like misclassification of
expenses/assets, non-reconciliation/review of
deposits/liabilities/ advances, credit balances
under Trade Receivables, incomplete narration /
no narration to the transactions in general
ledger, non-review/writing-off of receivables of
airlines which ceased its operations, non-
reconciliation of Trade Receivables of Air India
dues at Hyderabad Airport, delay in issuance of
letters for confirmation of balances of trade
receivables and non-raising/claiming of rent
bills/electricity charges in respect of space
occupied by Syndicate Bank and State Bank of
India in Rajiv Gandhi Bhawan, New Delhi.
(ii) Depiction of assets at NIL value instead of
showing it at residual value of ` one as per
accounting policy, charging depreciation with
wrong depreciation key (rates), under-charging
of depreciation due to adopting wrong
capitalization date.
(iii) Management did not review items of capital
work-in-progress of ` 16.99 crore pending
capitalization since 31 March 2013.
(iv) Non-reconciliation of credit entries of ` 1156.41
crore in Trade Receivables of aeronautical dues
needed to be settled with the corresponding
debit entries.
100
The above indicated weakness in the internal control
system that needed to be strengthened.
3. System of Physical Verification of Fixed
Assets
(i) On test check, it was observed that Physical
Verification Report at four airports, viz., Bhuntar,
Lucknow, Leh and Jammu was not reconciled
with Fixed Assets Register. Further, location of
the assets was also not mentioned in Fixed
Assets Register at Lucknow, Leh and Jammu
Airports.
(ii) Physical verification of Fixed Assets was not
conducted at Corporate Headquarters.
4. System of Physical Verification of Inventory
The reports of Physical Verification of inventory in
respect of Northern Region Headquarters and
Corporate Headquarters were not made available to
Audit.
5. Regularity in payment of statutory dues
(i) There was delay in payment of advance tax for
the year 2016-17, due to wrong estimation of
income. Consequently, AAI had to pay interest
of ` 23.88 crore towards delayed payment.
(ii) Liability of ` 24.98 crore, towards Service Tax
Billed but not due, was pending since long.
6. IT System
Management did not maintain supporting documents
of closing JVs passed or adjustment entries passed in
SAP in a systematic form in line with the bank
payment/ receipt vouchers for vouching /verifications
of all the transactions in SAP.
 FINANCIAL STATEMENTS
OF
CHANDIGARH INTERNATIONAL
AIRPORT LIMITED

101
22 nd
Annual Report 2016-17


Chandigarh International Airport Limited
Airports Authority of India

Balance Sheet as at March 31, 2017 ( Amount in ` )

Particulars Note As at As at As at
No. March 31, 2017 March 31, 2016 April 1, 2015
ASSETS
Non-current assets
(a) Property, Plant and Equipment 2 8,90,63,65,846 9,09,83,54,858 4,75,253
(b) Capital work-in-progress 3 4,35,57,135 48,45,807 -
(c) Deferred Tax Assets 16 12,53,51,052 - -
Current Assets
(a) Inventory 4 14,55,983 - -
(b) Financial Assets
(i) Trade Receivables 5 4,22,70,949 2,31,76,993 -
(ii) Cash & Cash Equivalents 6 37,43,72,363 37,72,45,672 7,36,77,820
(iii) Others 7 3,92,42,541 2,58,72,792 68,88,390
(c) Current Tax Assets 8 4,38,01,397 1,19,73,829 5,856
(d) Other Current Assets 9 72,99,841 1,84,50,736 1,48,561
Total Assets 9,58,37,17,107 9,55,99,20,687 8,11,95,880
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital 10 9,69,44,94,050 40,00,00,000 10,00,00,000
(b) Other Equity 11 (27,09,72,367) 9,06,17,81,960 (2,18,79,126)
Liabilities
Non-current liabilities
(a) Financial Liabilities
(i) Others 12 6,10,30,143 2,82,23,143 -
(b) Other non-current liabilities 13 1,36,73,794 76,44,107 -
Current liabilities
(a) Financial Liabilities
(i) Others 14 5,11,29,956 1,26,74,815 21,58,039
(b) Provisions 15 3,27,29,183 4,56,13,097 8,82,812
(d) Other current liabilities 17 16,32,348 39,83,565 34,155
Total Equity and Liabilities 9,58,37,17,107 9,55,99,20,687 8,11,95,880
Significant Acccounting Policies 1
The notes referred to above form an integral part of the standalone financial statements

102

Chandigarh International Airport Limited
Airports Authority of India

Statement of Profit and Loss for the year ended March 31, 2017 ( Amount in ` )

Particulars Note No. Year Ended Year Ended

March 31, 2017 March 31, 2016
Income
i) Revenue From Operations 18 42,01,99,742 14,29,51,942
ii) Other Income 19 3,02,25,278 1,56,57,489
Total Income 45,04,25,020 15,86,09,431
Expenses
i) Employee Benefits Expenses 20 4,32,62,744 2,92,48,733
ii) Operating Expenses 21 10,81,74,671 4,80,03,401
iii) Administrative & Other Expenses 22 2,02,59,900 1,54,37,382
iv) Security Expenses 23 18,32,85,478 7,30,83,658
v) Finance Cost 24 47,55,736 16,26,712
vi) Depreciation and Amortization expenses 25 31,68,42,940 13,94,97,389
Total expenses 67,65,81,469 30,68,97,275
Profit before exceptional items and tax (22,61,56,449) (14,82,87,844)
Exceptional Items
Profit Before Tax (22,61,56,449) (14,82,87,844)
Tax expense 16 (12,53,51,052) -
Profit for the period from continuing operations (10,08,05,397) (14,82,87,844)
Profit/(loss) from discontinued operations
Tax expense of discontinued operations
Profit from discontinued operations after tax - -
I Profit for the year (10,08,05,397) (14,82,87,844)
II Other Comprehensive Income
i) Items that will not be reclassified to profit or loss
- Remeasurements of the defined benefit plans
Less: Income Tax on Above
ii) Items that will be reclassified to profit or loss
Other Comprehensive Income - -
Total Comprehensive Income for the period (10,08,05,397) (14,82,87,844)
Earnings per equity share :
(1) Basic (0.12) (7.97)
(2) Diluted (0.10) (0.34)
Significant Acccounting Policies 1
The notes referred to above form an integral part of the standalone financial statements

103
22 nd
Annual Report 2016-17


Chandigarh International Airport Limited
Airports Authority of India

Cash Flow Statement For The Year Ended March 31, 2017 ( Amount in ` )

Particulars Year Ended Year Ended

March 31, 2017 March 31, 2016
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/Loss after tax (10,08,05,397) (14,82,87,844)
Adjustment for:-
Depreciation 31,68,42,941 13,94,97,389
Interest Income (2,33,82,048) (1,38,73,153)
Fair Valuation Gain (47,55,736) (16,26,712)
Finance Cost 47,55,736 16,26,712
Tax Expense (12,53,51,052) -
Operating Profit before Working Capital Changes 6,73,04,444 (2,26,63,608)
Adjustment for:-
Inventories (14,55,983) -
Trade Receivables (1,90,93,956) (2,31,76,993)
Loans & Advances and Other Current Financial Assets (1,33,69,749) (1,89,84,402)
Loans & Advances and Other Current Assets 1,11,50,895 (1,83,02,175)
Current Tax Assets (3,18,27,568) (1,19,67,973)
Other Non-Current Financial Liability 3,28,07,000 2,82,23,143
Other non-current liabilities 60,29,686 76,44,107
Other Current Financial Liabilities 3,84,55,141 1,05,16,776
Provisions and Other Liabilities (1,28,83,914) 4,47,30,285
Other Current Liabilites (23,51,217) 39,49,410
Net Cash From Operating Activities 7,47,64,779 (31,430)
B. CASH FLOW FROM INVESTING ACTIVITIES
Fixed Assets (12,48,53,928) (54,28,064)
Capital Work In Progress (3,87,11,328) (48,45,807)
Interest Income 2,33,82,048 1,38,73,153
Net Cash From Investing Activities (14,01,83,208) 35,99,282
C. CASH FLOW FROM FINANCING ACTIVITIES
Share Capital & Share Application Money 6,25,45,120 30,00,00,000
Net Cash From Financing Activities 6,25,45,120 30,00,00,000
D. Net changes in Cash & Cash equivalents (28,73,309) 30,35,67,852
E. Opening Cash & Cash Equivalents (Note No 13) 37,72,45,672 7,36,77,820
F. Closing Cash & Cash Equivalents (Note No 13) 37,43,72,363 37,72,45,672
Significant Acccounting Policies 1
The notes referred to above form an integral part of the standalone financial statements

104

Chandigarh International Airport Limited
Airports Authority of India

Statement of Changes In Equity for the year ended March 31, 2017
Equity Share Capital ( Amount in ` )
Balance as at April 1, 2016 Changes in share capital during the year Balance as at March 31, 2017

40,00,00,000.00 9,29,44,94,050.00 9,69,44,94,050.00

Balance as at April 1, 2015 Changes in share capital during the year Balance as at March 31, 2016

10,00,00,000 30,00,00,000 40,00,00,000

Other Equity
For the year ended March 31, 2017
Particulars Share Equity Reserves and Surplus Total
application Component
money of Advance Retained Ind AS
pending from Related Earnings transitional
allotment Parties Reserve

Balance at the beginning of - 9,23,19,48,930 (13,91,25,110) (3,10,41,860) 9,06,17,81,960

the reporting period
Changes in accounting policy - - - - -
prior period errors
Restated balance at the - - - - -
beginning of the reporting
period
Total Comprehensive Income - - (10,08,05,397) - (10,08,05,397)
for the year
Share issued during the year - (9,23,19,48,930) - - (9,23,19,48,930)
Transfer to retained earnings - - - - -
Balance at the end of the - - (23,99,30,507) (3,10,41,860) (27,09,72,367)
reporting period
For the year ended March 31, 2016
Particulars Share Equity Reserves and Surplus Total
application Component
money of Advance Retained Ind AS
pending from Related Earnings transitional
allotment Parties Reserve

Balance at the beginning of - - 91,62,734 (3,10,41,860) (2,18,79,126)

the reporting period
Changes in accounting policy - - - - -
prior period errors
Additions during the year - 9,23,19,48,930 - - 9,23,19,48,930
Total Comprehensive Income - - (14,82,87,844) - (14,82,87,844)
for the year
Any other change - - - - -
(to be specified)
Transfer to retained earnings - - - - -
Balance at the end of the - 9,23,19,48,930 (13,91,25,110) (3,10,41,860) 9,06,17,81,960
reporting period

105
22 nd
Annual Report 2016-17

Chandigarh International Airport Limited
Airports Authority of India
COMPANY OVERVIEW
The Chandigarh International Airport Ltd. (CHIAL), has
been incorporated on 28th January 2010 as a joint
venture company under Companies Act, 1956 by
Airports Authority of India (AAI) in association with
Punjab Government through Greater Mohali Area
Development Authority (GMADA) and Haryana
Government through Haryana Urban Development
Authority (HUDA) to operate and maintain
Chandigarh International Airport which has come up
with a new state of art International Airport at Mohali,
Punjab. As per the Joint Venture Agreement, the
equity contribution is in the ratio of 51.00%, 24.50%
and 24.50% respectively by AAI, GMADA and HUDA.
AAI’s contribution towards its share of equity is
construction of the New Terminal Building and allied
works. GMADA and HUDA have provided land for the
said construction towards their equity contribution.
CHIAL, has commenced commercial operations on
19th October 2015, the Airport Opening Date
(hereinafter ‘AOD’).
SIGNIFICANT ACCOUNTING POLICIES
1. Basis of preparation of financial statements
The Ministry of Corporate Affairs (MCA) notified the
Companies (Indian Accounting Standards) Rules, 2015
on 16 February 2015 laying down the roadmap for
implementation of Indian Accounting Standards
(IND ASs) to Indian Companies other than banking
companies, insurance companies and non-banking
financial companies (NBFCs). As per the roadmap,
IND ASs is applicable to Chandigarh International
Airport Limited from the financial year commencing on
or after April 1, 2016 since the parent company has
adopted the IND AS with effect from April 1, 2015.
The financial statements have been prepared on
accrual basis of accounting under historical cost
convention, except for following financial assets and
financial liabilities which are measured at fair value:
• Non-current financial assets such as security
deposits measured at fair value at initial
recognition.
• Non- current financial liabilities such as Security
deposits from customers measured at fair value
at initial recognition.
106
The preparation of the financial statements in
conformity with Ind ASs requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities, revenue and
expenses, and disclosure of contingent assets and
liabilities at the date of the financial statements. Actual
results may differ from those estimates and
assumptions, due to changes in facts and
circumstances. Management reviews estimates on an
ongoing basis using currently available information
and any revision in the estimate is recognized in the
period in which the same is determined.
The financial statements are presented in INR in
absolute numbers. The financial statements comply
with all applicable IND ASs.
2. Property, Plant and Equipment (PPE)
Property, Plant and Equipment up to March 31, 2015
were carried in the balance sheet in accordance with
Indian GAAP. The company has elected to avail the
exemption granted by IND AS 101, “First time
adoption of IND ASs” to regard those amounts as
deemed cost at the date of the transition to IND AS
(i.e. as on April 1, 2015).
PPE are stated at their original cost of acquisition less
accumulated depreciation. The cost includes cost of
subsequent improvements thereto including taxes,
duties, freight and other incidental expenses related to
acquisition and installation of the assets concerned.
Advances paid towards acquisition of assets,
outstanding at each balance sheet date are shown
under capital advances. The cost of fixed assets not
ready for its intended use on such date is disclosed as
Capital work-in-progress.
Spares parts, stand-by equipments and servicing
equipments procured along with the Plant &
Machinery or subsequently which meets the
recognition criteria, are capitalized and added in the
carrying amount of such item. The carrying amount of
those spare parts that are replaced is derecognized
when no future economic benefits are expected from
their use or upon disposal. Other machinery spares are
treated as “stores & spares” forming part of the
inventory.
If the cost of the replaced part or earlier inspection is
not available, the estimated cost of similar new
parts/inspection is used as an indication of what the
cost of the existing part/inspection component was
when the item was acquired or inspection carried out.
Depreciation is provided on a Straight Line Method
(‘SLM’) over the useful lives of the assets as per
Companies Act 2013/management’s estimates.
Depreciation for assets purchased/sold during a
period is proportionately charged. Pursuant to this
policy, the rates of depreciation determined by the
Management are as set out below:
Class of Asset Rate of depreciation per annum
Assets Rates
of Dep.
Land 0%
Aprons 19%
Roads, Bridges & Culverts (Carpeted) 19%
Roads, Bridges & Culverts 31.67%
(Non-Carpeted)
impairment losses. Intangible assets are recognized
only if it is probable that future economic benefits that
are attributable to the asset will flow to the enterprise.
Computer software licenses are capitalized on the
basis of costs incurred to acquire and put to use the
specific software. Operating software is capitalized
and amortized along with the related fixed asset.
Other software is amortized, on a straight line
method, over a period of three years.
Research costs are expensed as incurred. Development
expenditures on an individual project are recognized
as an intangible asset when the company can
demonstrate:
• The technical feasibility of completing the
intangible asset so that the asset will be available
for use or sale
• Its intention to complete and its ability and
intention to use or sell the asset
• How the asset will generate future economic
benefits

Building Terminal/Other Buildings 3.17% • The availability of resources to complete the

asset
Buildings – Temporary 31.67%
• The ability to measure reliably the expenditure
Boundary Wall 3.17% during development
Computers & I.T. Hardware & Access 31.67% Following initial recognition of the development
expenditure as an asset, the asset is carried at cost less
Computers & I.T. – Servers 15.83% any accumulated amortization and accumulated
Plant and Machinery/X-Ray 6.33% impairment losses. Amortization of the asset begins
Baggage System when development is complete and the asset is
available for use. It is amortized over the period of
Tools & Equipments / Office Appliances 19% expected future benefit. Amortization expense is
Furniture and Fixtures Office / 9.50% recognized in the statement of profit and loss.
Other Than Office During the period of development, the asset is tested
for impairment annually.
Vehicles – Cars & Jeeps/ 11.88%/
Motor Cycles 9.50% 4. Fair value measurement
Electrical Installations 9.50% Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly
The assets having a cost of ` 5000 or less are charged transaction between market participants at the
off to expenditure in the year of payment. measurement date. Normally at initial recognition, the
Depreciation method, useful lives, and residual values transaction price is the best evidence of fair value.
are reviewed periodically, including at each financial However, when the Company determines that
year end. transaction price does not represent the fair value, it
3. Intangible Assets and Depreciation uses inter-alia valuation techniques that are
appropriate in the circumstances and for which
Intangible assets acquired separately are measured on sufficient data are available to measure fair value,
initial recognition at cost. Following initial recognition, maximising the use of relevant observable inputs and
intangible assets are carried at cost less any minimising the use of unobservable inputs.
accumulated amortization and accumulated

107
22 nd
Annual Report 2016-17
All financial assets and financial liabilities for which fair
value is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy. This categorisation is based on the lowest
level input that is significant to the fair value
measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable.
• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.
Financial assets and financial liabilities that are
recognised at fair value on a recurring basis, the
Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing
categorisation at the end of each reporting period.
5. Financial assets
A financial asset includes inter-alia any asset that is
cash, equity instrument of another entity or
contractual obligation to receive cash or another
financial assets or to exchange financial asset or
financial liability under condition that are potentially
favourable to the Company. A financial asset is
recognized when and only when the Company becomes
party to the contractual provisions of the instrument.
Financial assets of the Company comprise cash and
cash equivalents, Bank Balances, Advances to
employees/ contractors, security deposit, claims
recoverable etc.
a. Classification
The Company classifies its financial assets in the
following categories:
i. at amortized cost,
ii. at fair value through other comprehensive
income, and
iii. at fair value through profit or loss
The classification depends on the following:
(a) The entity’s business model for managing
the financial assets and
(b) The contractual cash flow characteristics of
the financial asset.
108
b. Initial recognition and measurement
All financial assets except trade receivables are
recognised initially at fair value plus, in the case
of financial assets not recorded at fair value
through profit or loss, transaction costs that are
attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried
at fair value through profit or loss are expensed in
Statement of Profit or Loss. Where transaction
price is not the measure of fair value and fair
value is determined using a valuation method
that uses data from observable market, the
difference between transaction price and fair
value is recognized in Statement of Profit or Loss
and in other cases spread over life of the financial
instrument using effective interest method.
The company measures the trade receivables at
their transaction price, if the trade receivables do
not contain a significant financing component.
c. Subsequent measurement
After initial measurement, financial assets
classified at amortised cost are subsequently
measured at amortised cost using EIR method.
Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortisation is included in finance
income in the profit or loss.
Financial assets at fair value through other
comprehensive income are at each reporting
date at fair value. Fair value changes are
recognized in OCI. However, the company
recognizes interest income, impairment losses
and reversals and foreign exchange gain or loss
in the income statement. On de-recognition of
the financial asset other than equity instruments,
cumulative gain or loss previously recognised in
OCI is reclassified to income statements.
Any financial asset that does not meet the
criteria for classification as at amortized cost or
as financial assets at fair value through other
comprehensive income, is classified as financial
assets at fair value through profit or loss.
Financial assets at fair value through profit or loss
are fair valued at each reporting date with all the
changes recognized in the income statement.
d. De-recognition
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar
financial assets) is primarily derecognised when:
• The rights to receive cash flows from the
asset have expired, or
• The company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay to a
third party under a ‘pass-through’
arrangement; and either (a) the company
has transferred substantially all the risks and
rewards of the asset, or (b) the company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.
e. Impairment of financial assets
The company recognizes loss allowances using
the expected credit loss (ECL) model for the
financial assets which are not fair valued through
profit or loss. Loss allowance for trade
receivables with no significant financing
component is measured at an amount equal to
lifetime ECL. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12-month ECL, unless there
has been a significant increase in credit risk from
initial recognition in which case those are
measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is
required to adjust the loss allowance at the
reporting date to the amount that is required to
be recognized is recognized as impairment gain
or loss in profit or loss.
6. Stores / Spares
Stores/spares other than recognized as property, plant
& Equipments are treated as inventory, which are
charged to the Statement of Profit and Loss as and
when they are consumed.
The costs of purchase consist of the purchase price
including duties and taxes (other than those
subsequently recoverable by the enterprise from the
taxing authorities), freight inwards and other
expenditure directly attributable to the acquisition.
Trade discounts, rebates, duty drawbacks and other
similar items are deducted in determining the costs of
purchase.
The balance of inventory at the end of year, if any, is
valued on First in First out basis.
7. Revenue recognition
Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the company
and the revenue can be reliably measured, regardless
of when the payment is being made. Revenue is
measured at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.
Aeronautical Revenue includes revenue from all
regulated charges levied at CHIAL i.e., Parking and
Housing, Passenger Service Fee (Facilitation
component), Extension of Watch Hours, Fuel
Throughput, CUTE and Cargo is recognized at the
rates prescribed by Ministry of Civil Aviation,
Government of India (“MoCA”) wherever applicable or
at the existing rates being charged by AAI. Parking
charges are recognised, when such services are
provided. Passenger Service Fee (Security) is
recognized as per rate fixed by MoCA. Passenger
Service fees – Facilitation and Security component are
recognised in respect of each embarking passenger at
a specified rate.
Non-Aeronautical Revenue means all revenue streams
other than Aeronautical Revenue. The same consists of
(i) revenue from concessions (ii) rents and land leases;
(iii) food and beverage concessions; (iv) utility charges;
and (v) other non-aviation related charges are
recognized based on the terms of contractual
agreement
Interest is recognised using the time proportion
method based on rates implicit in the transaction.
Award fees and tender fees are recognised on an
accrual basis in accordance with the terms of the
relevant arrangement.
Utility charges include power and water charges which
are recovered from users of such utilities and are
adjusted against the relevant expenses.
8. Retirement and other Employee Benefits
The employees on the roll of the company are on
deputation from Airports Authority of India (AAI) as
per order dated May 26, 2016. The statutory
deductions towards retirement benefits in respect of
these employees are remitted to AAI.
The cost of deployment of other staff on loan from AAI
has been booked based on gross amount reimbursable
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Annual Report 2016-17
to AAI in respect of those employees. The liability for
retirement and other employee benefits are booked in
AAI books for these employees.
9. Taxes
Current income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are
enacted or substantively enacted, at the reporting
date in the countries where the company operates and
generates taxable income.
Current income tax relating to items recognized
outside profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in
equity. Management periodically evaluates positions
taken in the tax returns with respect to situations in
which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.
Deferred tax
Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the
company’s financial statements and the
corresponding tax bases used in the computation of
taxable profit and are accounted for using the balance
sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary
differences, and deferred tax assets are generally
recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent
that it is probable that future taxable profits will be
available against which those deductible temporary
differences, unused tax losses and unused tax credits
can be utilised. Such assets and liabilities are not
recognised if the temporary difference arises from the
initial recognition of an asset or liability in a transaction
that at the time of the transaction affects neither the
taxable profit or loss nor the accounting profit or loss.
The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable
profits will be available against which the temporary
differences can be utilised.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
110
on tax rates (and tax laws) that have been enacted or
substantively enacted by the balance sheet date. The
measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
reporting date, to recover or settle the carrying
amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset
current tax assets against current tax liabilities, and
when the deferred income tax assets and liabilities
relate to income taxes levied by the same taxation
authority on either the taxable entity or different
taxable entities where there is an intention to settle the
balances on a net basis.
10. Earnings per share
The basic and diluted earnings per share are computed
by dividing the net profit/loss after tax, attributable to
equity shareholders for the year by the weighted
average number of equity shares outstanding during
the year.
11. Cash flow statement
Cash flows are reported using the indirect method,
whereby net profit/loss before tax is adjusted for the
effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and
financing activities of the Company are segregated.
12. Current versus non-current classification
The company presents assets and liabilities in the
balance sheet based on current/ non-current
classification. An asset is treated as current when it is:
• Expected to be realized or intended to be sold or
consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realized within twelve months
after the reporting period, or
• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after
the reporting period, or
• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period
The company classifies all other liabilities as non-
current.
13. Provisions and contingent liabilities
Provisions are recognised when the company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. When the company
expects some or all of a provision to be reimbursed, for
example, under an insurance contract, the
reimbursement is recognised as a separate asset, but
only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
Contingencies
Provision in respect of loss contingencies relating to
claims, litigation, assessment, fines, penalties, etc. are
recognised when it is probable that a liability has been
incurred, and the amount can be estimated reliably.
14. Impairment of assets
The Company assesses at each balance sheet date
whether there is any indication that an asset may be
impaired. If any such indication exists, the Company
estimates the recoverable amount of the asset. For an
asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs. If
such recoverable amount of the asset or the
recoverable amount of the cash generating unit to
which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an
impairment loss and is recognised in the Statement of
Profit and Loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount.
An impairment loss is reversed only to the extent that
the carrying amount of asset does not exceed the net
book value that would have been determined; if no
impairment loss had been recognised.
15. Investments
Long-term investments are carried at cost less
provision for diminution, other than temporary
diminution in the value of the investments.
Current investments are carried at the lower of cost
and fair value. The comparison of cost and fair value is
carried out separately in respect of each investment.
16. Use of Estimates
The preparation of the financial statements in
conformity with Ind AS requires management to make
estimates, judgements and assumptions. These
estimates, judgements and assumptions affect the
application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of financial
statements and reported amounts of revenues and
expenses during the period. Application of accounting
policies that require critical accounting estimates
involving complex and subjective judgements and the
use of assumptions in these financial statements have
been disclosed in Note 16.1 Accounting estimates
could change from period to period. Actual results
could differ from those estimates. Appropriate
changes in estimates are made as management
becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in
which changes are made and, if material, their effects
are disclosed in the notes to the financial statements.
16.1 Critical accounting estimates
The following are the critical judgements that
the Company has made in the process of
applying the Company’s accounting policies and
that have the most significant effect on the
amounts recognised in the financial statement. The
following are the estimates used during the year.
Property, Plant and Equipment: Property,
plant and equipment represent a significant
proportion of asset base of the company. The
charge in respect of periodic depreciation is
derived after determining the estimate of an
assets expected useful life and the expected
residual value at the end of its life. The useful
lives and residual values of company’s assets are
determined by the management at the time the
asset is acquired and reviewed periodically,
including at each financial year end. The lives are
111
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Annual Report 2016-17

based on historical experience with similar assets
as well as anticipation of future events which
may impact their life, such as changes in
technology.
Provisions: Provisions are determined based on
management estimate required to settle the
obligation at the balance sheet date.
Contingent liabilities: Contingent liabilities
are disclosed on the basis of judgment of
management/ independent experts. These are
reviewed at each balance sheet date and are
adjusted to reflect the current management
estimate.
Contingent Assets: Contingent assets are
disclosed on the basis of judgment of
management/ independent experts.

112
 2. Property, Plant and Equipment (Subject to Componentization & Capitalization of Spares) ( Amount in ` )
Particulars Gross Additions Disposal/ Gross carrying Accumulated Additions Disposal/ Accumulated Carrying Value
carrying value adjustments value as at depreciation as adjustments depreciation as at
as at as at March 31, 2017
April 1, 2016 March 31, 2017 at April 1, 2016
March 31, 2017
Land 4,53,18,43,801 28,901 - 4,53,18,72,702 - - - - 4,53,18,72,702
Building Terminal/Other Buildings 2,83,63,94,655 4,01,25,746 3,83,83,628 2,91,49,04,029 4,04,72,075 9,01,87,917 - 13,06,59,992 2,78,42,44,037
Building Temporary 18,93,856 1,01,06,304 - 1,20,00,160 2,53,230 16,25,580 - 18,78,810 1,01,21,350
Roads, Bridges & Culverts - (Carpeted) 59,72,22,464 86,52,530 - 60,58,74,994 4,99,58,023 11,45,64,629 - 16,45,22,652 44,13,52,342
Roads, Bridges & Culverts - 41,24,517 - - 41,24,517 5,38,854 13,06,097 - 18,44,951 22,79,566
Non-Carpeted - CISF Security
Computers & I.T. Hardware & Access 67,76,553 10,01,638 - 77,78,191 11,36,689 23,05,879 - 34,42,568 43,35,623
Computers & I.T. - Servers 1,83,02,402 - - 1,83,02,402 13,06,421 28,97,880 - 42,04,301 1,40,98,101
Plant & Machinery-Equipments 48,78,19,635 1,24,63,948 - 50,02,83,583 1,38,61,529 3,13,42,105 - 4,52,03,634 45,50,79,949
Tools & Equipments 34,77,841 20,89,161 - 55,67,002 2,62,412 7,07,355 - 9,69,767 45,97,235
Furniture & Fixtures 74,99,74,023 1,17,42,281 - 76,17,16,304 3,18,61,625 7,18,78,487 - 10,37,40,112 65,79,76,192
Motor Vehicles - Security 15,186 67,532 - 82,718 650 2,673 - 3,323 79,395
Cars & Jeeps - Security 1,64,244 - - 1,64,244 8,793 19,504 - 28,297 1,35,947
Office Equipments 5,985 1,92,259 - 1,98,244 3 4,834 - 4,837 1,93,407
Total 9,23,80,15,162 8,64,70,300 3,83,83,628 9,36,28,69,090 13,96,60,304 31,68,42,940 - 45,65,03,244 8,90,63,65,846

Particulars Gross Additions Disposal/ Gross carrying Accumulated Additions Disposal/ Accumulated Carrying Value Carrying
carrying adjustments value as at depreciation adjustments depreciation as at Value as at
value as at as at April 1,
April 1, March 31, 2016 as at March 31, 2015
March 31, 2016 2017
2015 April 1, 2015
Land - 4,53,18,43,801 - 4,53,18,43,801 - - - - 4,53,18,43,801
Building Terminal/Other Buildings - 2,86,38,72,540 (2,74,77,885) 2,83,63,94,655 - 4,04,72,075 - 4,04,72,075 2,79,59,22,580
Building Temporary - 18,93,856 - 18,93,856 - 2,53,230 - 2,53,230 16,40,626
Roads, Bridges & Culverts -(Carpeted) - 59,72,22,464 - 59,72,22,464 - 4,99,58,023 - 4,99,58,023 54,72,64,441
Roads, Bridges & Culverts - Non-Carpeted - - 41,24,517 - 41,24,517 - 5,38,854 - 5,38,854 35,85,663 -
CISF Security
Computers & I.T. Hardware & Access 3,53,901 64,22,652 - 67,76,553 1,26,817 10,09,872 - 11,36,689 56,39,864 2,27,084
Computers & I.T. - Servers - 1,83,02,402 - 1,83,02,402 - 13,06,421 - 13,06,421 1,69,95,981
Plant & Machinery -Equipments - 48,78,19,635 - 48,78,19,635 - 1,38,61,529 - 1,38,61,529 47,39,58,106
Tools & Equipments - 34,77,841 - 34,77,841 - 2,62,412 - 2,62,412 32,15,429
Furniture & Fixtures 2,84,267 74,96,89,756 - 74,99,74,023 36,098 3,18,25,527 - 3,18,61,625 71,81,12,398 2,48,169
Motor Vehicles - Security - 15,186 - 15,186 - 650 - 650 14,536 -
Cars & Jeeps - Security - 1,64,244 - 1,64,244 - 8,793 - 8,793 1,55,451 -
Office equipments - 5,985 - 5,985 - 3 - 3 5,982 -
Total 6,38,168 9,26,48,54,879 (2,74,77,885) 9,23,80,15,162 1,62,915 13,94,97,389 - 13,96,60,304 9,09,83,54,858 4,75,253

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Annual Report 2016-17

3. Capital Work- In- Progress

( Amount in ` )
Particulars Balance as Additions/A Capitalized Balance as Balance as Additions/ Capitalized Balance as
at April 1, djustments during the at March at April 1, Adjustmen during the at March 31,
2016 during the year 31, 2017 2015 ts during year 2016
year
the year
Civil & Other Works* 48,45,807 10,76,33,806 6,90,86,478 4,33,93,135 - 3,63,43,569 3,14,97,762 48,45,807
Computer & Software** - 1,64,000 - 1,64,000 - - - -
Total 48,45,807 10,77,97,806 6,90,86,478 4,35,57,135 - 3,63,43,569 3,14,97,762 48,45,807

* Civil & Other Works as on 31.03.2017 pertains to followings:

1. Study of route for Metro Tunnel amounting to ` 11,50,000/-
2. Construction of Façade Systmen outside Terminal Building amounting to ` 319,91,662/-
3. Construction of Kitchen at CISF Barracks amounting to ` 23,34,073/-
4. Electrical Fittings in Administrative Block amounting to ` 7,58,195/-
5. Electrical Fittings in Pre Fab CISF Barracks amounting to ` 71,59,602/-
Civil & Other Works as on 31.03.2016 pertains to followings:
1. Electrical Fittings and supply of air conditoners amounting to ` 48,45,807/-
** Computer & Software includes procurement of Microsoft Office but not installed in the Systems amounting to ` 1,64,000/-

4. Inventory ( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Stock & Spares 14,55,983 - -

Total 14,55,983 - -

5. Trade Receivables ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Trade receivables 4,22,70,949 2,31,76,993 -

Allowances for doubtful debts - - -

Total 4,22,70,949 2,31,76,993 -

6. Cash & Cash Equivalents ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Cash in hand - 48,266 -
Flexi - Deposits 26,33,08,364 26,02,02,212 -
Balances with Banks 94,48,881 1,69,95,194 16,77,820
Sub-total (A) 27,27,57,245 27,72,45,672 16,77,820
Other Bank Balances
Fixed - Term Deposit 10,16,15,118 10,00,00,000 7,20,00,000
(More than 3 months but less than 12 months)
Sub-total (B) 10,16,15,118 10,00,00,000 7,20,00,000
Total 37,43,72,363 37,72,45,672 7,36,77,820

114
7. Other Current Financial Assets
( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Interest accrued on Short Term Deposits 1,98,86,230 2,52,16,892 49,31,430

Recoverable from Parties 1,86,99,006 - -
Security Deposits 6,57,305 6,55,900 19,56,960
Total 3,92,42,541 2,58,72,792 68,88,390
8. Current tax Assets ( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Income tax Refundable FY 14-15 - - 5,856

Tax Deducted at Source F.Y.15-16 1,20,51,650 1,19,73,829 -
Tax Deducted at Source F.Y 2016-17 3,17,49,747 - -
Total 4,38,01,397 1,19,73,829 5,856
9. Other Current Assets ( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Service Tax Input 42,12,952 20,47,877 -

Recoverable against PPE - 1,61,38,080 -
Prepaid Expenses 1,54,362 2,36,013 1,351
Leave Salary & Pay Advance 7,527 28,766 -
Advances to Suppliers 29,25,000 - -
Advances to staff - - 1,47,210
Total 72,99,841 1,84,50,736 1,48,561

10. Equity Share Capital ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Authorized
Equity shares of ` 10/- each 12,00,00,00,000 12,00,00,00,000 12,00,00,00,000
1200000000(10) equity shares
Issued, subscribed and fully paid 9,69,44,94,050 40,00,00,000 10,00,00,000
Equity shares of ` 10/- each
9,69,44,94,050 40,00,00,000 10,00,00,000
Reconciliation of share Capital:
Particulars As at March 31, 2017
No of Shares Amount
Opening Equity Shares 4,00,00,000 40,00,00,000
Add: -No. of Shares, Share Capital issued/ subscribed during the year 92,94,49,405 9,29,44,94,050
Closing balance 96,94,49,405 9,69,44,94,050

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Annual Report 2016-17

Particulars As at March 31, 2016

No of Shares Amount
Opening Equity Shares 1,00,00,000 10,00,00,000
Add: -No. of Shares, Share Capital issued/ subscribed during the year 3,00,00,000 30,00,00,000
Closing balance 4,00,00,000 40,00,00,000

Shares in the company held by shareholder holding more than 5 percent

Name of the Shareholder As at As at
March 31, 2017 March 31, 2016
Airports Authority of India (AAI) 49,44,19,195 2,04,00,000
Greater Mohali Area Development Authority (GMADA) 23,75,15,105 98,00,000
Haryana Urban Development Authority (HUDA) 23,75,15,105 98,00,000
11. Other Equity ( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Equity component of advance from related Parties - 9,23,19,48,930 -

Retained Earnings
Opening Balance (17,01,66,970) (2,18,79,126) 91,62,734
Surplus / (Deficit) in Statement of Profit and Loss (10,08,05,397) (14,82,87,844) -
Ind AS Transition Reserve - - (3,10,41,860)
Total (27,09,72,367) 9,06,17,81,960 (2,18,79,126)

12. Other Non-Current Financial Liabilities ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Security Deposits 6,10,30,143 2,82,23,143 -

Total 6,10,30,143 2,82,23,143 -

13. Other Non-Current Liabilities ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Deferred Fair Valuation Gain - Security Deposits 1,36,73,794 76,44,107 -

Total 1,36,73,794 76,44,107 -

14. Other Current Financial Liabilities ( Amount in ` )

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Security Deposits 3,42,44,802 1,22,77,397 -

Airports Authority of India 1,68,85,154 - -
Liability of Pay & Allowances - 3,97,419 -
Expenses Payable - - 21,58,039
Total 5,11,29,956 1,26,74,816 21,58,039

116
15. Short Term Provisions ( Amount in ` )
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Provision for Expenses 3,27,29,183 4,56,13,097 8,82,812

Total (A+B) 3,27,29,183 4,56,13,097 8,82,812

16. Tax Expense

Tax recognised in Statement of profit and loss
( Amount in ` )
Particulars For the year For the year
Ended March 31, Ended March 31,
2017 2016
Current income tax
Current year - -
Adjustments for prior years - -

Sub Total (A) - -

Deferred tax expense -

Origination and reversal of temporary differences (12,53,51,052) -
Changes in tax rate - -
Change in accounting policy - -

Sub Total (B) (12,53,51,052) -

Total (A+B) (12,53,51,052) -

Reconciliation of effective tax rates

Particulars For the year For the year
Ended March 31, Ended March 31,
2017 2016
Profit before tax (22,61,56,449) (14,82,87,844)
Enacted tax Rate 30.9% 30.9%
Computed Expected Tax Expenses (6,98,82,343) (4,58,20,944)
Non-deductible expenses - -
Tax exempt income - -
Tax incentives - -
Current year tax losses for which no deferred tax asset recognised (5,54,68,709) 4,58,20,944
Recognition of deferred tax asset on brought forward losses - -

Tax Expenses for the year (12,53,51,052) -

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Annual Report 2016-17

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Deferred Tax Liability
Property, plant and equipment (8,97,96,418) (2,75,75,370) -
Intangible assets - - -
Sub Total (8,97,96,418) (2,75,75,370) -
Deferred tax Assets
Employee benefits - - -
Provisions - - -
Unabsorbed Depreciation & brought forward losses 20,60,55,981 2,75,75,370 -
as per Income Tax
Unamortized preoperative & preliminary Exp. 90,91,489 - -
Sub Total 21,51,47,470 2,75,75,370 -
Net Deferred Tax Assets 12,53,51,052 - -
Movement in deferred tax balances during the year
Particulars Balance as at Recognised in Recognised in Balance As at
April 1, 2016 profit & loss OCI March 31, 2016
Property, plant and equipment (2,75,75,370) (6,22,21,048) - (8,97,96,418)
Intangible assets - - - -
Employee benefits - - - -
Provisions - - - -
Unabsorbed Depreciation & 2,75,75,370 17,84,80,611 - 20,60,55,981
brought forward losses as
per Income Tax
Unamortized preoperative & - 90,91,489 - 90,91,489
preliminary Exp.
Total - 12,53,51,052 - 12,53,51,052

Movement in deferred tax balances during the year

Particulars Balance as at Recognised in Recognised in Balance As at
April 1, 2015 profit & loss OCI March 31, 2016
Property, plant and equipment - (2,75,75,370) - (2,75,75,370)
Intangible assets - - - -
Employee benefits - - - -
Provisions - - - -
Unabsorbed Depreciation & - 2,75,75,370 - 2,75,75,370
brought forward losses as per
Income Tax
Unamortized preoperative & - - - -
preliminary Exp.
Total - - - -

118
Unrecognised Deferred tax assets
Deffered tax assets have not been recognised in respect of the following items
Particulars As at March 31, As at As at
2017 March 31, 2016 April 1, 2015
Deductible temporary differences - - 96,42,275
Tax losses - 6,39,83,523 -
Total - 6,39,83,523 96,42,275

17. Other Current Liabilities ( Amount in ` )

Particulars As at March 31, As at As at
2017 March 31, 2016 April 1, 2015
Duties & Taxes 4,58,072 12,02,580 34,155
Deferred Fair Valuation Gain - Security Deposits 5,03,295 4,45,583 -
Income Received in Advance 6,70,981 23,35,402 -
Total 16,32,348 39,83,565 34,155

18. Revenue From Operations ( Amount in ` )

Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Aeronautical Revenue
Parking & Housing 5,77,056 1,33,014
PSF (Facilitation) 7,18,03,238 2,61,61,575
Extension of Watch Hours 33,41,520 5,23,260
Ground Handling Services 78,01,386 29,51,017
Throughput Charges 52,77,051 27,02,342
CUTE Charges 1,60,98,106 59,44,678
Cargo Revenue 52,34,662 16,74,500
Total 11,01,33,019 4,00,90,386

Passenger Service Fee (Security) 12,12,13,916 4,41,68,240

Non-aeronautical Revenue
Admission Fees/Commercial Passes 26,29,500 10,88,867
Car Parking 2,66,62,536 68,72,342
Rent & Services 8,47,37,641 4,14,90,029
Trading Concession 7,48,23,130 92,42,078
Total 18,88,52,807 5,86,93,316
Total 42,01,99,742 14,29,51,942

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19. Other Income

( Amount in ` )
Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Interest on Term Deposits 2,33,82,048 1,38,73,153
Fair Valuation Gain - Security Deposits 47,55,736 16,26,712
Miscellaneous Income 20,87,494 1,57,624
Total 3,02,25,278 1,56,57,489

20. Employee Benefit Expenses

( Amount in ` )
Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Pay & Allowances 61,92,855 47,16,976
Contribution to Provident Fund 7,42,911 3,60,654
Other Staff Cost 14,17,683 5,51,731
Cost of Staff Deployment of AAI 3,49,09,295 2,36,19,372
Total 4,32,62,744 2,92,48,733

21. Operating Expenses

( Amount in ` )
Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Repair & Maintenance
- Civil 94,68,061 77,22,187
- Electrical 1,12,25,827 56,10,048
- Equipment & Furniture 19,21,423 13,01,560
- Electronics & IT Infrastructure 1,72,323 13,013
Housekeeping & Cleaning Works 92,82,956 80,72,551
Advertisement & Publicity 68,35,736 3,92,610
Consumption of Stores & Spares 57,60,414 33,07,838
Electricity & Water Charges 6,35,07,931 1,79,56,232
Rent, Rates & Taxes - 20,75,676
Watch & Ward - 15,51,686
Total 10,81,74,671 4,80,03,401

120
22. Administrative & Other Expenses ( Amount in ` )
Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Postage, Telegram, Telex 38,798 16,112
Printing & Stationery 9,27,504 4,68,773
Telephone Charges 3,99,730 3,14,294
Legal Fees & Expenses 12,536 1,46,586
Travelling Expenses 11,89,397 9,61,129
Software Consultancy Charges 37,90,661 41,48,248
Insurance Expenese 1,16,728 1,351
Freight Charges 12,519 4,800
Payment to Auditors
- Audit Fee - Statutory Audit 1,00,500 50,250
- Audit Fee - Other Audit 65,325 30,150
Training & Seminar Expenses 71,354 8,066
Entertainment Expenses 18,42,426 33,34,921
Hire Charges - Others 68,81,913 49,07,756
Board Meeting Expenses 47,180 77,994
Collection Charges on PSF 41,95,857 6,73,800
Miscellaneous Office Expenses 5,67,472 2,93,152
Total 2,02,59,900 1,54,37,382

23. Security Expenses ( Amount in ` )

Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
PAY & Allowances and Other Staff Cost 17,50,42,839 6,69,96,781
Vehicle Running & Hire Charges 57,39,577 35,86,115
Other Miscellaneous Expenses 25,03,062 25,00,762
Total 18,32,85,478 7,30,83,658

24. Finance Cost ( Amount in ` )

Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Interest due to fair valuation 47,55,736 16,26,712
Total 47,55,736 16,26,712

25. Depreciation ( Amount in ` )

Particulars For the year For the year
ended ended
March 31, 2017 March 31, 2016
Depreciation 31,68,42,940 13,94,97,389
Total 31,68,42,940 13,94,97,389

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Note 26: Disclosure Notes

1. Transition from IGAAP to IND AS
These financial statements, for the year ended 31st March, 2017, are the first the Company has prepared in
accordance with Ind AS. For years up to and including the year ended 31 March, 2016, the Company
prepared its financial statements in accordance with IGAAP, including accounting standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended).
Accordingly, the Company has prepared IND AS compliant financial statements for year ending on 31st
March, 2017. In preparing these financial statements, the Company has prepared opening IND AS balance
sheet as at 1st April, 2015 the Company’s date of transition to Ind-AS in accordance with requirement of IND
AS 101, First time Adoption of Indian Accounting Standards. The principal adjustments made by the
Company in restating its IGAAP financial statements, including the balance sheet as at 1st April, 2015 and the
financial statements as at and for the year ended 31 March 2016 are quantified and explained in detail as
Appendix A & B to this Note . However the basic approach adopted is again summarized hereunder:
i) All assets and liabilities have been classified into financial assets/liabilities and non-financial
assets/liabilities. The classification has been made on the basis of fact existing as at the date of transition.
ii) All non-current financial assets/liabilities at below market rate of interest or zero interest and outstanding
as on 1st April, 2015 have been measured at fair value.
Security deposit of the non-current nature deducted from the bills of contractors being interest free
financial liability have been fair valued using discounted cash flow method. Marginal Cost of fund based
Lending Rate (MCLR) rate of State Bank of India (level 3 input) has been used as discount rate for above purpose.
iii) In accordance with IND AS 101, the resulting adjustments are considered as arising from events and
transactions entered before date of transition and are recognized directly in the retained earnings at the
date of transition to IND AS.
iv) The estimates as at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates
in accordance with IGAAP (after adjustments to reflect any differences in accounting policies).
v) IND AS 101 also allows to first time adopter certain exemptions from the retrospective application of
certain requirements under IND AS. Accordingly, the company has availed the following exemptions as
per IND AS 101:
a) Deemed Cost for Property, Plant & Equipment: The Company has availed exemption under para
D7AA of appendix D to IND AS 101 which permits a first time adopter to continue with the carrying
values for its PPE as at date of transition to IND AS measured as per previous GAAP.
b) Impairment of financial assets: The Company has availed exemption under para B8D of appendix B
which exempts the first time adopter from applying the impairment requirement of IND AS 109
retrospectively.
2. Additional information pursuant to Schedule III of the Companies Act, 2013 ( Amount in ` )

Sr. Particulars 2016-17 2015-16

No.
A Value of Components, spare parts & store consumed:
(i) Imported - -
(ii) Indigenous 5,63,288 -

Sr. Particulars SBNs Other Total

No. Denomination
Notes
B Closing cash in hand as on 08.11.2016 20,500 333 20,833
(+) Permitted receipts - 65,653 65,653
(-) Permitted payments - - -
(-) Amount deposited in Banks 20,500 65,986 86,486
Closing cash in hand as on 30.12.2016 - - -

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Disclosure requirements of Indian Accounting Standards
3. Disclosures in respect of IND AS 107 - Financial Instruments
3.1 Financial Instruments by Categories
The carrying value and fair value of financial instruments by categories were as follows:
(Amount in ` as of March 31, 2017)
Particulars Amortized Financial Financial Total carrying Total fair
cost assets/ assets/ value value
liabilities at liabilities at
fair value fair value
through profit through OCI
or loss
Assets:
Cash & Cash 37,43,72,363 - - 37,43,72,363 37,43,72,363
Equivalents
(Ref Note No. 6)
Trade Receivable 4,22,70,949 - - 4,22,70,949 4,22,70,949
(Ref Note No. 5)
Other Financial Assets 3,92,42,541 - - 3,92,42,541 3,92,42,541
(Ref Note No. 7)
Liabilities:
Other Financial 5,11,29,956 - - 5,11,29,956 5,11,29,956
Liabilities
(Ref Note No. 14)

(Amount in ` as of March 31, 2016)

Particulars Amortized Financial Financial Total carrying Total fair

cost assets/ assets/ value value
liabilities at liabilities at
fair value fair value
through profit through OCI
or loss
Assets:
Cash & Cash 37,72,45,672 - - 37,72,45,672 37,72,45,672
Equivalents
(Ref Note No. 6)
Trade Receivable 2,31,76,993 - - 2,31,76,993 2,31,76,993
(Ref Note No. 5)
Other Financial Assets 2,58,72,792 - - 2,58,72,792 2,58,72,792
(Ref Note No. 7)
Liabilities:
Other Financial 1,26,74,815 - - 1,26,74,815 1,26,74,815
Liabilities
(Ref Note No. 14)

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(Amount as of April 1, 2015)

Particulars Amortized Financial Financial Total carrying Total fair

cost assets/ assets/ value value
liabilities at liabilities at
fair value fair value
through profit through OCI
or loss
Assets:
Cash & Cash 7,36,77,820 - - 7,36,77,820 7,36,77,820
Equivalents
(Ref Note No. 6)
Trade Receivable - - - - -
(Ref Note No. 5)
Other Financial Assets 68,88,390 - - 68,88,390 68,88,390
(Ref Note No. 7)
Liabilities:
Other Financial 21,58,039 - - 21,58,039 21,58,039
Liabilities
(Ref Note No. 14)
3.2 Fair Value Hierarchy
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).
The following tables present fair value hierarchy of assets and liabilities measured at fair value:
(Amount in ` as of March 31, 2017)
Particulars Level 1 Level 2 Level 3 Total Valuation Significant
Technique and unobservabl
key inputs e inputs
Financial Liabilities
Security Deposits - - 9,52,74,945 9,52,74,945 Valued at MCLR
rate of SBI as on
1/4/2016
Total - - 9,52,74,945 9,52,74,945

(Amount in ` as of March 31, 2016)

Particulars Level 1 Level 2 Level 3 Total Valuation Significant

Technique and unobservabl
key inputs e inputs
Financial Liabilities
Security Deposits - - 4,05,00,540 4,05,00,540 Valued at MCLR
rate of SBI as on
1/4/2015
Total - - 4,05,00,540 4,05,00,540

124
 (Amount as of April 1, 2015)

Particulars Level 1 Level 2 Level 3 Total Valuation Significant

Technique and unobservabl
key inputs e inputs
Financial Liabilities
Security Deposits - - - - - -
Total - - - - - -
3.3 Financial risk management
Financial risk factors
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance.
a) Market risk
The company does not have any market risk.
b) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivables and unbilled
revenue. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial
assets in the following paragraphs.
Trade Receivables & Unbilled Revenue
The company has outstanding trade receivables amounting to 422.71 Lakhs and 231.77 Lakhs as of
March 31, 2017 and March 31, 2016, respectively and unbilled revenue amounting to 6.71 Lakhs and
23.35 Lakhs as of March 31, 2017 and March 31, 2016, respectively. Trade receivables and unbilled revenue
are typically unsecured and are derived from revenue earned from customers.
On account of adoption of IND -AS 109, the company uses expected credit loss model to assess the
impairment loss or gain.
Credit risk exposure
An analysis of age of trade receivables and unbilled receivables at each reporting date is summarized as follows:
( Amount in ` )
Particulars March 31, 2017 March 31, 2016 April 1, 2015
Gross Impairment Gross Impairment Gross Impairment
Not past due 1,05,67,140 - 46,80,995 - - -
Past due less than 1,55,72,122 - 1,49,35,333 - - -
three months
Past due more than three 46,38,507 - 35,60,665 - - -
months but not more than
six months
Past due more than 1,02,37,868 - - - - -
six months but not
more than one year
More than one year 12,55,312 - - - - -
Total 4,22,70,949 - 2,31,76,993 - - -
Trade receivables are impaired when recoverability is considered doubtful based on the recovery analysis
performed by the company for individual trade receivables. The company considers that all the above financial
assets that are not impaired and past due for each reporting dates under review are of good credit quality.
The company holds deposits in the form of collateral security or other enhancements to cover its credit risks
associated with its financial assets.

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Annual Report 2016-17

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks.
We consider the credit quality of term deposits with such banks that are majority owned by the Government
of India and subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these
banking relationships on an ongoing basis. There are no impairment provisions as at each reporting date
against these financial assets. We consider all the above financial assets as at the reporting dates to be of
good credit quality.
c) Liquidity Risk
Our liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal
sources of liquidity are cash and cash equivalents, cash generated from operations & contribution in the form
of share capital.
We manage our liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash
and cash equivalents. Net cash requirements are compared to available cash in order to determine any
shortfalls.
Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues and
retention & deposits arising during the normal course of business as of each reporting date. We maintain a
sufficient balance in cash and cash equivalents to meet our short term liquidity requirements.
We assess long term liquidity requirements on a periodical basis and manage them through internal accruals.
Our non-current liabilities include security deposits.
The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The
table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date
on which the company can be required to pay. The table includes both principal & interest cash flows.
(Amount in ` as of March 31, 2017)

Particulars Less than 6 months to 1-3 years 3-5 years More than Total
6 months 1 year 5 years
Security Deposits 2,59,22,108 83,22,694 5,46,53,092 60,03,778 3,73,273 9,52,74,945
Other Financial 1,68,85,154 - - - - 1,68,85,154
Liabilities
Total 4,28,07,262 83,22,694 5,46,53,092 60,03,778 3,73,273 11,21,60,099

(Amount in ` as of March 31, 2016)

Particulars Less than 6 months to 1-3 years 3-5 years More than Total
6 months 1 year 5 years
Security Deposits 37,02,595 85,74,802 2,78,27,076 - 3,96,067 4,04,96,163
Other Financial 3,97,419 - - - - 3,97,419
Liabilities
Total 41,00,014 85,74,802 2,78,27,076 - 3,96,067 4,08,93,582

(Amount as of April 1, 2015)

Particulars Less than 6 months to 1-3 years 3-5 years More than Total
6 months 1 year 5 years
Security Deposits - - - - - -
Other Financial - - - - - -
Liabilities
Total - - - - - -

126
4. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of assets”
During the year, the company assessed the impairment loss of assets and is of the opinion that assets have
been recently capitalized pursuant to operation start date. As the project has a long life and no indication
exists for the impairment of the assets, therefore, it is considered that during the year, there is no impairment
loss of assets.
5. Disclosure in respect of Indian Accounting standard (Ind AS)-108: “Operating Segments”
Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM)
evaluates the Company’s performance and allocates resources based on an analysis of various performance
indicators by business segments. The Company is in the business of operations of the Airport at Chandigarh.
Consequently, the Company does not have separate business segment.
Entity Wide Disclosures
Information about major customers
If revenues from transactions with a single external customer amount to 10 per cent or more of an entity’s
revenues, the entity shall disclose the fact, the total amount of revenues from each such customer, and the
identity of the segment or segments reporting the revenues. The same can be provided in the following
format.
( Amount in ` )

Particulars Year Ended Year Ended

March 31, 2017 March 31, 2016
No. of Customers 2 2
Total Revenue from above customers 13,66,11,641 4,60,52,230
Total Revenue 42,01,99,742 14,29,51,942
% of total Revenue 32.51% 32.22%

6. Disclosure in respect of Indian Accounting Standard 24 “Related Parties Disclosures”

6.1 Disclosures for Other than Govt. Related Entities
a) Transaction during the year
( Amount in ` )

F.Y. 2016-17
Name of Party Issue of Shares Procurement Staff Others Closing
of Assets Deployment Balance
Cost
AAI 4,74,01,91,950 1,09,65,941 3,49,09,295 60,38,541 1,68,85,154
GMADA 2,27,71,51,050 - - - -
HUDA 2,27,71,51,050 - - - -

F.Y. 2015-16
Name of Party Issue of Shares Procurement Staff Others Closing
of Assets Deployment Balance
Cost
AAI 15,30,00,000 4,99,20,39,401 2,31,49,334 - 4,86,16,67,530
GMADA 7,35,00,000 2,18,99,00,000 - - 2,18,99,00,000
HUDA 7,35,00,000 2,18,99,00,000 - - 2,18,99,00,000

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a) Closing Balance
Name of party Balance as on Balance as on Balance as on
March 31, 2017 March 31, 2016 April 1, 2015
AAI 1,68,85,154 4,86,16,67,530 -
GMADA - 2,18,99,00,000 -
HUDA - 2,18,99,00,000 -
6.2 Disclosures for Key Managerial personnel
a. List of key managerial personnel
Name Designation
Sh. Suneel Dutt Chief Executive Officer
Sh. J.B. Saini Chief Financial Officer
Smt. Avneet Kaur Company Secretary
b. Compensation of key managerial personnel ( Amount in ` )
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016
Short-term benefits 76,10,538 25,03,002
Post-employment benefits 7,42,911 1,66,223
Total 83,53,449 26,69,225

7. Disclosure in respect of Indian Accounting standard (Ind AS) 17 “Leases”

7.1 As a lessor
a) Operating leases
• Future minimum lease receivables under non-cancellable operating lease
( Amount in ` )
Particulars As on March 31, 2017 As on March 31, 2016 As on April 1, 2015
Not later than 1 year 4,61,58,606 1,35,76,906 -l
Later than 1 year and - - -
not later than 5 years
Later than 5 years - - -

8. Disclosure in respect of Indian Accounting Standard (Ind AS)-33 “Earnings Per Share(EPS)”
a) Basic EPS
The earnings and weighted average number of ordinary shares used in the calculation of basic EPS and Basic
EPS is as follows: ( Amount in ` )
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016
Profit (loss) for the year, attributable to the owners of (10,08,05,397) (14,82,87,844)
the company
Earnings used in calculation of basic earnings per (10,08,05,397) (14,82,87,844)
share (A)
Weighted average number of ordinary shares for the 82,37,64,531 1,86,06,557
purpose of basic earnings per share(B)
Basic EPS(A/B) (0.12) (7.97)

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b) Diluted EPS
The earnings and weighted average number of ordinary shares used in the calculation of Diluted EPS is as
follows:

Particulars For the year ended For the year ended

March 31, 2017 March 31, 2016
Profit (loss) for the year, attributable to the owners of (10,08,05,397) (14,82,87,844)
the company

Earnings used in calculation of basic earnings (10,08,05,397) (14,82,87,844)

per share (A)
Weighted average number of ordinary shares 96,54,05,392 43,59,41,235
for the purpose of basic earnings per share (B)

Diluted EPS (A/B) (0.10) (0.34)

9. Disclosure in respect of Indian Accounting Standard (Ind AS)-37 “Provisions, Contingent Liabilities
and Contingent Assets”
Movement in Provisions
( Amount in ` )
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016
Opening Balance 4,56,13,097 30,60,264
Additions/ Transfers during the year 3,27,29,183 4,56,13,097
Utilization during the year 4,56,13,097 30,60,264
Closing Balance 3,27,29,183 4,56,13,097

10. Non-cash Transactions: As required by Ind AS 7, on 27th May, 2016 CHIAL issued 923194893 no of shares
of face value of ` 10 each in the ratio of 51%, 24.5%, and 24.5% to Airport Authority of India, Greater Mohali
Area Development Authority and Haryana Urban Development Authority respectively against fixed assets
acquired on 19th Oct 2015.
11. Approval of financial statements
The financial statements were approved by the Board of Directors and authorised for issue on
28th June 2017.

129
 Appendix A

130
22
Reconciliation of equity as previously reported under IGAAP to Ind AS ( Amount in ` )
nd

Balance Sheet as at April 1, 2015 Balance Sheet as at March 31, 2016

Particulars Remarks IGAAP Effects of Ind AS IGAAP Effects of Ind AS

transition transition
to Ind AS to Ind AS

I ASSETS
Non-current assets
Annual Report 2016-17

(a) Property, Plant and Equipment 1 4,75,253 - 4,75,253 9,12,54,40,470 (2,70,85,612) 9,09,83,54,858
(b) Capital work-in-progress - - - 48,45,807 - 48,45,807
(c) Financial Assets
1 (i) Others - - - - - -
(d) Deferred Tax Assets - - - - - -
(e) Other Non-Current Assets 2 3,10,41,860 (3,10,41,860) - 3,92,29,729 (3,92,29,729) -
3,15,17,113 (3,10,41,860) 4,75,253 9,16,95,16,006 (6,63,15,341) 9,10,32,00,665
Current assets
(a) Financial Assets - - - - - -
(i) Inventory - - - - - -
(ii) Trade receivables - - - 2,31,76,993 - 2,31,76,993
2 (iii) Cash and cash equivalents 7,36,77,820 - 7,36,77,820 37,72,45,672 - 37,72,45,672
(iv) Loan & Others 3 24,58,308 44,30,082 68,88,390 1,40,50,472 1,18,22,320 2,58,72,792
(b) Current tax Assets 4 - 5,856 5,856 - 1,19,73,829 1,19,73,829
(c) Other current assets 3 67,61,951 (66,13,390) 1,48,561 2,61,08,805 (76,58,069) 1,84,50,736
8,28,98,079 (21,77,452) 8,07,20,627 44,05,81,942 1,61,38,080 45,67,20,022
Total 11,44,15,192 (3,32,19,312) 8,11,95,880 9,61,00,97,948 (5,01,77,261) 9,55,99,20,687
 Balance Sheet as at April 1, 2015 Balance Sheet as at March 31, 2016

Particulars Remarks IGAAP Effects of Ind AS IGAAP Effects of Ind AS

transition transition
to Ind AS to Ind AS

I. EQUITY AND LIABILITIES

1 Equity

(a) Equity Share capital 10,00,00,000 - 10,00,00,000 40,00,00,000 - 40,00,00,000

(b) Other Equity 5 91,62,734 (3,10,41,860) (2,18,79,126) (13,13,29,515) 9,19,31,11,475 9,06,17,81,960

10,91,62,734 (3,10,41,860) 7,81,20,874 26,86,70,485 9,19,31,11,475 9,46,17,81,960

2 Non- current liabilities

(a)Financial Liabilities

(i) Others 6 - - - - 2,82,23,143 2,82,23,143

(b) Other non-current liabilities 6 - - - - 76,44,107 76,44,107

3 Current liabilities

(a) Financial Liabilities

(i) Other financial liabilities 3 - 21,58,039 21,58,039 - 1,26,74,815 1,26,74,815

(b) Provisions 3&4 30,60,264 (21,77,452) 8,82,812 4,56,13,097 - 4,56,13,097

(c) Current Tax liabilities - - - -

(d) Other current liabilities 3&5 21,92,194 (21,58,039) 34,155 9,29,58,14,366 (9,29,18,30,801) 39,83,565

52,52,458 (21,77,452) 30,75,006 9,34,14,27,463 (9,24,32,88,736) 9,81,38,727

Total 11,44,15,192 (3,32,19,312) 8,11,95,880 9,61,00,97,948 (5,01,77,261) 9,55,99,20,687

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Annual Report 2016-17

Explanations for Reconciliation of Balance Sheet as previously reported under IGAAP to IND AS
1) Retrospective changes in depreciation and addition in building due to write back of assets amounting to
` 2,70,85,612
2) Preoperative and preliminary expenses have been charged off in the year of their occurrence as per Ind AS.
Earlier they were treated as Non Current Assets as per Indian GAAP.
3) Reclassification of assets and liabilities as per Ind AS.
4) Taxation asset and liability has been net off as per Ind AS.
5) Liability to issue shares against assets received have been taken as a part of equity as per Ind AS in the
F.Y. 2015-16.
6) Security deposits have been reclassified and taken at fair value as per Ind AS.

132
 Appendix B
Reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS
( Amount in ` )
Particulars Remarks Year ended March 31, 2016

IGAAP Effects of Ind AS

transition
to Ind AS
Income
i) Revenue From Operations 14,29,51,942 - 14,29,51,942
ii) Other Income A 1,40,30,777 16,26,712 1,56,57,489
Total Income 15,69,82,719 16,26,712 15,86,09,431
Expenses
i) Employee Benefits Expenses B 2,62,88,597 29,60,136 2,92,48,733
ii) Operating Expenses B 4,16,53,093 63,50,308 4,80,03,401
iii) Administrative & Other Expenses B 83,43,728 70,93,654 1,54,37,382
iv) Security Expenses B 7,15,88,3680 14,95,290 16,26,712
v) Finance Cost A - 16,26,712 7,30,83,658
vi) Depreciation and Amortization expenses C 14,96,01,182 (1,01,03,793) 13,94,97,389
Total expenses 29,74,74,968 94,22,307 30,68,97,275
Profit before exceptional items and tax (14,04,92,249) (77,95,595) (14,82,87,844)
Exceptional Items - - -
Profit Before Tax (14,04,92,249) (77,95,595) (14,82,87,844)
Tax expense - - -
Profit for the period from continuing operations (14,04,92,249) (77,95,595) (14,82,87,844)
Profit/(loss) from discontinued operations - - -
Tax expense of discontinued operations - - -
Profit from discontinued operations after tax - - -
I Profit for the year (14,04,92,249) (77,95,595) (14,82,87,844)
II Other Comprehensive Income
Items that will not be reclassified to profit or loss
- Re-measurements of the defined benefit plans
Less: Income Tax on Above - - -
Other Comprehensive Income - - -
Total Comprehensive Income for the period (14,04,92,249) (77,95,595) (14,82,87,844)

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Explanations for Reconciliation of Statement of Profit & Loss as previously reported under IGAAP to IND AS
A) Difference due to fair valuation gain on security deposit as per Ind AS.
B) Due to reclassification of preoperative expenses and their amortization.
C) Retrospective changes in depreciation and addition in building due to write back of assets.

134
 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
CHANDIGARH INTERNATIONAL AIRPORT LIMITED
Revised Report on the Ind AS Financial
Statements
Our report dated 27.07.2017 on the accounts for the
st
year ended 31 March, 2017 has been revised vide our
report dated 08.09.2017 to give effect to the
observations made by the Comptroller & Auditor
General of India in the supplementary audit carried out
by them under Section 143 (6) (a) of the Companies
Act, 2013 but the above facts could not be
incorporated in the said report, therefore, Auditor’s
Report again revised dated 16.09.2017. This report
supersedes our earlier Auditor’s Reports dated
27.07.2017 and 08.09.2017.
We have audited the accompanying standalone
Ind AS financial statements of CHANDIGARH
INTERNATIONAL AIRPORT LIMITED (‘the
Company’) which comprise the Balance Sheet as at
March 31, 2017, the Statement of Profit and Loss
(including other comprehensive income), the
statement of Cash Flow and Statement of changes in
Equity for the year ended 31st March, 2017, and a
summary of significant accounting policies and other
explanatory information (together hereinafter
referred to as “Standalone Ind AS Financial
Statements”).
Management’s Responsibility for the
Comparative Standalone Ind AS Financial
Statements
The Company’s Board of Directors is responsible for
the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation
of these standalone Ind AS financial statements that
give a true and fair view of the financial position,
financial performance including comprehensive
income, cash flows and changes in equity of the
Company in accordance with the accounting principles
generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under
Section 133 of the Act, read with relevant rules issued
there under.
This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and
other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate
internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation
and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free
from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these
Standalone Ind AS financial statements based on our
audit.
We have taken into account the provisions of the Act,
the accounting and auditing standards and matters
which are required to be included in the audit report
under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the
Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we
comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance
about whether the standalone Ind AS financial
statements are free from material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and the disclosures
in the standalone Ind AS financial statements. The
procedures selected depend on the auditor’s
judgment, including the assessment of the risks of
material misstatement of the standalone Ind AS
financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers
internal financial control relevant to the Company’s
preparation of the standalone Ind AS financial
statements that give a true and fair view in order to
design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made
by the Company’s Directors, as well as evaluating the
overall presentation of the standalone Ind AS financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the Standalone Ind AS financial statements.
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Annual Report 2016-17
Opinion
In our opinion and to the best of our information and
according to the explanations given to us, the
aforesaid Standalone Ind AS financial statements give
the information required by the Act in the manner so
required and give a true and fair view in conformity
with the accounting principles generally accepted in
India including the Ind AS, of the financial position of
the Company as at March 31, 2017, and its loss
including other comprehensive income, its cash flows
and the changes in equity for the year ended on that
date.
Re p o r t o n O t h e r L e g a l a n d R e g u l a t o r y
Requirements
1. As required by the Companies (Auditor’s Report)
Order, 2016 (“the Order”) issued by the Central
Government of India in terms of sub-section (11)
of section 143 of the Act, we give in the
“Annexure A” a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. We enclose our report in terms of Section 143(5)
of the Act, on the basis of such checks of the
books and records of the Company as we
considered appropriate and according to the
information and explanations given to us, in the
“Annexure B” on the directions and sub
directions issued by the Comptroller and Auditor
General of India.
3. As required by section 143 (3) of the Act, we
report that:
(a) we have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit;
(b) in our opinion proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books;
(c) the balance sheet, the statement of profit and
loss, the statement of cash flows and the
statement of changes in equity dealt with by this
Report are in agreement with the books of
account ;
(d) in our opinion, the aforesaid standalone Ind AS
financial statements comply with the Indian
Accounting Standards specified under section
133 of the Act, read with relevant rules issued
thereunder;
136
(e) on the basis of written representations received
from the directors as on March 31, 2017 taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2017
from being appointed as a director in terms of
Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of
such controls, refer to our separate Report in
“Annexure C” and
(g) with respect to the other matters to be included
in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our
information and according to the explanations
given to us:
i. The Company is having two pending litigations
as detailed below:-
(1) CWP No. 18628 of 2015 (The Federation of
Indian Airlines (FIA) Versus Union of India
and Others).
CHIAL awarded entire Ground Handling
Contract to M/s AIATSL as per the AAI
(General Management Entry for Ground
Handling Services) Regulations, 2007. The
same is challenged by FIA and is pending
before the High Court of Punjab & Haryana.
The High Court allowed the Writ Petition in
favour of the petitioners i.e. FIA vide order
dated 24.09.2015 and ordered that Ground
Handling functions shall be performed by
the bonafide whole time employees of the
airlines and the other ground handling
agencies specifically permitted in writing by
the AAI to undertake Ground Handling
activities through their bonafide whole time
employee. The High Court further ordered
‘Status Quo’ on the order dated 24.09.2015
vide its order dated 20.10.2015. There is no
financial implication on the company due
this litigation.
(2) CWP No. 27436 of 2015 (Mohali Industries
Association Versus Union of India and
Others).
A CWP was filed by the Mohali Industries
Association in the High Court of Punjab &
Haryana, to ensure the operation of the
International flights at the Chandigarh
 International Airport since in their view the
non-operation of the same is causing huge
loss to the public exchequer and also to
passenger services and business and/or
industries situated in Punjab, Haryana and
Himachal Pradesh. The litigation is pending
in the court; however, there is no financial
implication on the company.
ii. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.
iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company.
Place : Chandigarh
Date : 16.09.2017
iv. The Company has provided requisite details so as
to holdings as well as dealing in Specified Bank
Notes during the period from 8 November, 2016
to 30 December, 2016 and these are in
accordance with the books of accounts
maintained by the Company. However, as stated
amount aggregating to ` 86,486 (Specified Bank
Notes ` 20,500 and other denomination Notes
` 65,986), as represented by management has
been utilized for permitted transactions.
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Annual Report 2016-17
“Annexure A” to the Independent Auditors’ Report
The Annexure referred to in Independent Auditors’
Report to the members of the Company on the
standalone Ind AS financial statements for the year
ended 31 March 2017, we report that:
i) (a) The Company has maintained proper records
showing full particulars, including quantitative
details and situation of fixed assets;
(b) The Fixed Assets have been physically
verified by the management in a phased
manner, designed to cover all the items over
a period of three years, which in our opinion,
is reasonable having regard to the size of the
company and nature of its business.
Pursuant to the programme, a certain fixed
asset has been physically verified by the
management during the year and no
material discrepancies between the books
records and the physical fixed assets have
been noticed.
(c) A c c o r d i n g t o t h e i n f o r m a t i o n a n d
explanation given to us and on the basis of our
examination of the records of the Company,
the title deeds of immovable properties are
held in the name of the Company.
ii) The Company is a Service Company, primarily
rendering Airport Services. Accordingly, it does
not hold any physical inventories. Thus,
paragraph 3 (ii) of the order is not applicable to
the Company.
iii) The Company has not granted any loans,
secured or unsecured to Companies, Firms,
Limited Liability Partnerships or other parties
covered in the Register maintained under section
189 of the Act. Accordingly, the provisions of
clause iii (a) to (c) of the Order are not applicable.
iv) In our opinion and according to the information
and explanations given to us, the company has
not granted any loan or made any investment as
defined under the provisions of section 185 and
186 of the Companies Act, 2013.
v) The Company has not accepted any deposits
from the public and hence the directives issued
by the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant
provisions of the Act and the Companies
(Acceptance of Deposit) Rules, 2015 with regard
to the deposits accepted from the public are not
applicable.
vi) As informed to us, the maintenance of Cost
Records has not been specified by the Central
Government under sub-section (1) of Section
148 of the Act, in respect of the services carried
on by the company.
vii) (a) According to information and explanations
given to us and on the basis of our examination
of the records of the Company, amounts
138
deducted/accrued in the books of account in
respect of undisputed statutory dues including
Provident Fund, Employees State Insurance,
Income-Tax, Sales tax, Service Tax, Duty of
Customs, Duty of Excise, Value added Tax, Cess
and any other material statutory dues have been
regularly deposited during the year by the
Company with the appropriate authorities.
According to the information and explanations
given to us, the Company did not have any
undisputed amounts payable in respect of the
above and there were no arrears as at March 31,
2017 for a period of more than six months from
the date on when they become payable.
b) According to the information and explanation
given to us, there are no dues of income tax,
sales tax, service tax, duty of customs, duty of
excise, value added tax which have not been
deposited with the appropriate authorities on
account of any dispute.
viii) The Company does not have any loans or
borrowing from any financial institution, banks,
government or debenture holders during the
year. Accordingly, paragraph 3 (viii) of the Order
is not applicable.
ix) Based upon the audit procedures performed and
the information and explanations given by the
management, the company did not raised any
money by way of initial public offer or further
public offer (including debt instruments) and
term loans during the year. Accordingly, the
provisions of clause 3 (ix) of the Order are not
applicable to the Company and hence not
commented upon.
x) According to information and explanations given
to us by the management, we report that no
fraud by the Company or on the company by its
officers or employees has been noticed or
reported during the course of our audit.
xi) Based upon the audit procedures performed and
the information and explanations given by the
management, the provisions of section 197 read
with Schedule V to the Companies Act are not
applicable to the Company. Therefore, the
provisions of clause 3 (xi) of the Order are not
applicable to the Company.
xii) In our opinion and according to the information
and explanations given to us, the Company is not
a nidhi company. Therefore, the provisions of
clause 3 (xii) of the Order are not applicable.
xiii) In our opinion, all transactions with the related
parties are in compliance with section 177 and
188 of Companies Act, 2013 and the details
have been disclosed in the standalone Ind AS
financial statements as required by the
applicable accounting standards.
xiv) Based upon the audit procedures performed and the information and explanations given by the
management, the company has not made any private placement of shares or fully or partly convertible
debentures during the year under review. However, Company had made a preferential allotment of
92,31,94,893 (Ninety Two Crore Thirty One Lac Ninety Four Thousand Eight Hundred Ninety Three) Equity
Shares of ` 10/- each under section 62 (1) (c) to the following persons as per list tabled under

S. No. Name of Shareholder No. of Shares applied No. of Share applied No. of Shares
as per Right Issue as Renouncee Allotted
1. Airports Authority of India 47,08,29,395 Nil 47,08,29,395
2. Greater Mohali Area 22,61,82,749 Nil 22,61,82,749
Development Authority
3. Haryana Urban Development 22,61,82,749 Nil 22,61,82,749
Authority
Total No. of Shares 92,31,94,893 92,31,94,893

And Company had made a right issue of 62,54,512 (Sixty Two Lac Fifty Four Thousand Five Hundred Twelve)
Equity Shares of `10/- each under section 62 (1) (a) to the following persons as per list tabled under:
S. No. Name of Shareholder No. of Shares applied No. of Share applied No. of Shares
as per Right Issue as Renouncee Allotted
1. Airports Authority of India 31,89,800 Nil 31,89,800
2. Greater Mohali Area 15,32,356 Nil 15,32,356
Development Authority
3. Haryana Urban Development 15,32,356 Nil 15,32,356
Authority
Total No. of Shares 62,54,512 62,54,512

xv) Based upon the audit procedures performed and the information and explanations given by the
management, the company has entered into non–cash transaction with director or persons connected
(shareholder) as detailed below:-
Name of Shareholder Nature of transaction Amount (Rs)
Airports Authority of India Issue of Equity Shares 4,70,82,93,950
Greater Mohali Area Development Authority Issue of Equity Shares 2,26,18,27,490
Haryana Urban Development Authority Issue of Equity Shares 2,26,18,27,490
9,23,19,48,930
xvi) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable.

Place : Chandigarh
Date : 16.09.2017

139
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Annual Report 2016-17

“Annexure B” to the Independent Auditors’ Report

Referred to in paragraph 2 under the heading ‘Report on Other Legal & Regulatory
Requirement’ of our report of even date to the financial statements of the Company for the
year ended March 31, 2017:

1 Whether the company has clear title/lease deeds for freehold Yes, title deed of the land is
and leasehold respectively? If not please state the area of freehold. as per documents
freehold and leasehold land for which title/lease deeds are produced to us
not available.
2 Please report whether there are any cases of waiver/write off NIL during the year
debts/loans/interest etc. If yes, the reasons therefore and the
amounts involved.
3 Whether proper records are maintained for inventories lying NIL during the year
with third parties & assets received as gift from Govt. or other
authorities.

Place : Chandigarh
Date : 16.09.2017

140
 “Annexure C” to the Independent Auditor’s Report
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over
financial reporting of Chandigarh International Airport
Limited (“the Company”) as of March 31, 2017 in
conjunction with our audit of the standalone Ind AS
financial statements of the Company for the year
ended on that date.
Management’s Responsibility for Internal
Financial Controls
The Company’s management is responsible for
establishing and maintaining internal financial controls
based on the internal control over financial reporting
criteria established by the Company considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of
Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation
and maintenance of adequate internal financial
controls that were operating effectively for ensuring
the orderly and efficient conduct of its business,
including adherence to company’s policies, the
safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the
timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting based on our audit. We conducted our audit
in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under
section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate
internal financial controls over financial reporting was
established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain
audit evidence about the adequacy of the internal
financial controls system over financial reporting and
their operating effectiveness. Our audit of internal
financial controls over financial reporting included
obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal
control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of
the standalone Ind AS financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls over
Financial Reporting
A company's internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial
reporting and the preparation of financial statements
for external purposes in accordance with generally
accepted accounting principles. A company's internal
financial control over financial reporting includes those
policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded
as necessary to permit preparation of financial
statements in accordance with generally accepted
accounting principles, and that receipts and
expenditures of the company are being made only in
accordance with authorisations of management and
directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the
company's assets that could have a material effect on
the financial statements.
Inherent Limitations of Internal Financial Controls
over Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the
possibility of collusion or improper management
override of controls, material misstatements due to
141
22 nd
Annual Report 2016-17

error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial
controls over financial reporting to future periods are
subject to the risk that the internal financial control
over financial reporting may become inadequate
because of changes in conditions, or that the degree of
compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material
respects, an adequate internal financial controls
system over financial reporting and such internal
financial controls over financial reporting were
operating effectively as at March 31, 2017, based on
the internal control over financial reporting criteria
established by the company considering the essential
components of internal control stated in the Guidance
Note on Audit of Internal financial Controls Over
Financial Reporting issued by the Institute of Chartered
Accountants of India.

Place : Chandigarh
Date : 16.09.2017

142
 SUBHASH & ASSOCIATES
CHARTERED ACCOUNTANTS
Kothi No. 45, Sector 19-A, Chandigarh
Telephone No. 0172-2775980, 4631945 (Fax)
E-mail: SCB8980@GMAIL.COM

COMPLIANCE CERTIFICATE
We have conducted the audit of accounts of Chandigarh International Airport Limited for the year
ended 31.03.2017 in accordance with the directions/sub-directions issued by the C & AG of India under
section 143 (5) & (6) of the Companies Act, 2013 and certify that we have complied with all the directions/
sub-directions issued to us.

Place : Chandigarh
Date : 16.09.2017

143
22 nd
Annual Report 2016-17

144
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(B) OF
THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF CHANDIGARH INTERNATIONAL
AIRPORT LIMITED FOR THE YEAR ENDED 31 MARCH 2017.

The preparation of financial statements of CHANDIGARH INTERNATIONAL AIRPORT LIMITED for the year

ended 31 March 2017 in accordance with the financial reporting framework prescribed under the Companies Act

2013 (Act) is the responsibility of the management of the company. The Statutory Auditors appointed by the

Comptroller and Auditor General of India under section 139(5) of the Act are responsible for expressing opinion

on the financial statements under section 143 of the Act based on independent audit in accordance with

standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide

their Audit Report dated 16 September 2017.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under

section 143(6)(a) of the Act of the financial statements of CHANDIGARH INTERNATIONAL AIRPORT LIMITED for

the year ended 31 March 2017. This supplementary audit has been carried out independently without access to

the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and

company personnel and a selective examination of some of the accounting records. On the basis of my audit,

nothing significant has come to my knowledge which would give rise to any comment upon or supplement to

statutory auditors' report.

For and on behalf of the

Comptroller and Auditor General of India

Place: New Delhi (Neelesh Kumar Sah)

Dated: 20 September 2017 Principal Director of Commercial Audit
& ex-officio Member, Audit Board-I
New Delhi

145
Highlights
Highlights: 2016-17

AAI signed an MoU with State Government of Telangana for Regional Connectivity Scheme

A tripartite MoU signed amongst AAI, National Skill Development Fund (NSDF) and National
Skill Development Corporation (NSDC) for setting up of skill training centres
s: 2016-17

AAI entered into an MoU with U.T. Administration of Daman & Diu for the Operation,
Development and Maintenance of Diu Airport

AAI, Defense Research and Development Organization (DRDO) and Govt. of Jharkhand
signed a tripartite MoU for development of Deoghar Airport
Highlights
Highlights: 2016-17

Chairman, AAI presenting a cheque of ` 560 crore as interim dividend for the year 2016-17

AAI Engineers Guild celebrated Engineers' Day on September 15, 2016 commemorating the
Birth Anniversary of Bharat Ratna, Sir Mokshagundam Visvesvaraya
s: 2016-17

AAI was awarded the prestigious 'Golden Peacock Award for Innovative Product/Service
for the year 2016' for second consecutive year

AAI was conferred two prestigious SKOCH BSE Awards for Environment Protection
(Green Technology)