Adani Port Special Economic Zone IR21
Adani Port Special Economic Zone IR21
Adani Port Special Economic Zone IR21
Contents
CORPORATE 168 Our cutting-edge
technology
OVERVIEW
170 Our sustainable supply
Our pride and pedigree chain
004 Corporate snapshot 176 Knowledge capital
009 Asset infrastructure 192 Corporate social
015 Performance review responsibility
016 Report profile 218 Board of Directors
018 About the Adani Group 222 Management
Discussion and
028 Chairman’s message
Analysis
034 CEO’s message
046 National infrastructure STATUTORY
catalyst REPORTS
054 Growth platform 260 Corporate Information
058 Value creation model 261 Directors’ Report and
Annexures
Our performance
278 Corporate Governance
074 Our operational
Report
performance
303 Business
078 Finance section
Responsibility Report
Integrated report
FINANCIAL
096 Our business model
STATEMENTS
100 Stakeholder
engagement 314 Standalone
104 Materiality 407 Consolidated
112 Risk management 538 Notice
130 Environment-Social- 553 Abbreviations
Governance 559 Common disclosures
164 Our customer
proposition platform
Adani Ports and
Special Economic
Zone Limited went
into business in 1998.
The Company intends
to emerge as the
world’s largest private
port company by
2030.
Boldness transforms
everything.
002 | Adani Ports and Special Economic Zone Limited
Corporate overview Statutory Reports Financial Statements
Part 1
Our pride
and pedigree
Where we come from and what
we have achieved
C O R P O R AT E S N A P S H OT
ICRA, India Ratings & Research, ICRA, India Ratings & Research
Domestic CARE provided APSEZ with long-term provided APSEZ with an A1+
rating facilities and NCD rating of AA +/ rating for short-term facilities like
stable. commercial paper.
Key numbers
11 25* 12 16
Number of operating Percentage of total million TEU Percentage increase
ports out of 12 APSEZ cargo market share in equivalent capacity, in container volumes,
ports and terminals in India FY 2020-21 FY 2020-21
India
*As per internal estimates, excluding non-Adani and coastal, LNG, LPG volumes
Integrated Annual Report 2020-21 | 007
What we achieved in 2020-21
Krishnapatnam port acquisition
The Company completed 75% acquisition of Krishnapatnam port and entered into a definitive agreement
for the acquisition of the balance 25% stake for an Enterprise Value of H13,675 crore. Krishnapatnam is
India’s second largest commercial port in the private sector in India and the largest private port on the
east coast of India. The acquisition established the Company as a significant player on the east coast. The
Company is operating at a capacity of 64 MMT; the port has an approved master plan for 300 MTPA; the
Company plans to take annual throughput above 100 MMT in a few years.
ASSET INFRASTRUCTURE
Ports
Concession
assets with free
Total installed capacity
under operation of
Handling multi-
and complex
92.1%
pricing 480MMTPA cargo Revenue
contribution
Logistics
20-year license to
operate rails
Enhancing connectivity between
ports and origin / destination of
7.6%
cargo Revenue
contribution
Land bank of
12,000+ hectares
Integration with
port; developing
Regular revenue
stream through
0.3%
(including SEZ land industry cluster annual rentals and Revenue
of 8,481 hectares) upfront premium contribution
Nagpur Dhamra
Hazira
Taloja
45 MMT
Borivali
30 MMT Vizag
Mundra. 6 MMT
India’s largest
commercial Dighi Container terminals
port by 8 MMT Bulk terminals
volume Krishnapatnam Multipurpose ports
Malur
64 MMT Silos
Mormugao
CFS/EXIM yard
5 MMT Kattupalli
264 MMTPA
Installed capacity
45 MMTPA
Installed capacity
30 MMTPA
Installed capacity
14 MMTPA
Installed capacity
18 MMTPA
Installed capacity
14 MMTPA
Installed capacity
5.20 MMTPA
Installed capacity
12 MMTPA
Installed capacity
6.41 MMTPA
Installed capacity
64 MMTPA
Installed capacity
8 MMTPA
Installed capacity
18 MMTPA
Installed capacity
PERFORMANCE REVIEW
Approach to
Integrated Reporting
Occasional differences in data and percentages in the graphs and tables are due to the
rounding-off effect of values
Vision Values
Culture
engaged in agro commodities is the largest private sector port maintenance (O&M) practices
and ancillary industries, gas operator in India. Adani Wilmar benchmarked to global standards.
distribution across geographies is the largest edible oils brand in
in India, electricity distribution India. Adani Transmission Limited The core philosophy
that powers the financial capital is the largest private sector The Adani Group’s core philosophy
of India, and the airports business transmission and distribution is ‘Nation Building’, driven by
that will manage and develop company in India. ‘Growth with Goodness’ , its
eight airports in India. The Group beacon for sustainable growth.
is also engaged in the digital, road The visibility The Adani Group is committed
building, water and data centre The Adani Group comprises six to widen its ESG footprint
businesses. publicly traded companies that with an emphasis on climate
were collectively valued at a protection and increasing
The scale market capitalisation of USD 91 community outreach through
Most of the Group’s businesses billion as on March 31, 2021. CSR programmes woven around
are among the largest in India, sustainability, diversity and shared
generating attractive economies The positioning values.
of scale. Adani Green Energy The Adani Group has positioned
Limited is among the largest itself as a leader in the transport The credibility
renewable energy businesses in logistics and energy utility The Adani Group comprises four
India. Adani Total Gas Limited is portfolio businesses in India. The IG-rated businesses and is the
the largest city gas distribution Group has focused on sizable only Infrastructure Investment
business in India. Adani Ports & infrastructure development Grade bond issuer from India.
Special Economic Zone Limited in India with operations and
§ Analysis & market § Site acquisition § Engineering & § Life cycle O&M § Redesigning the
Activity
§ India’s largest § Longest private § 648 MW ultra mega § Energy Network § In 2020-21, APSEZ
commercial port HVDC line in solar power plant Operation Centre and its joint venture
(at Mundra) Asia (Mundra to (at Kamuthi, Tamil (ENOC) enables AICTPL issued three
§ Highest margin Mahendragarh) Nadu) a centralised bonds amounting
among peers § Highest line § Constructed and continuous to USD 1.55 billion
availability commissioned in a monitoring of international bonds
record nine months projects and with 5-10 year
installations on a maturity, elongating
single cloud-based maturity profile
platform and reducing the
weighted average
cost of capital
§ AGEL’s issuance
of USD 1.35 billion
revolving project
finance facility will
fully fund its entire
project pipeline
maintain a liquidity
cover of 1.2x- 2x as a
matter of policy
Share of institutions
in debt structure
14%
March 31,
2016
31% 55%
30%
March 31,
50%
2021
20%
PSU banks
Private banks
DCM (Bonds)
Strong growth in the consolidated EBITDA of the listed companies of the Group by 22% in FY 2020-21
demonstrates the utility nature of the businesses
§ APL EBITDA improved due to improved merchant tariffs, lower imported coal prices and higher prior period income recognition
§ AGEL EBITDA grew on account of increased revenue from power supply and O&M cost optimisation
§ ATL EBITDA grew due to growth in power transmission EBITDA and higher regulatory income from the power distribution business
§ APSEZ EBITDA growth was on account of an increase in cargo volume, operational efficiency and cost restructuring
§ AEL EBIDTA grew due to an increase in EBIDTA from the solar manufacturing business
EBITDA includes Other Income. ^APSEZ EBITDA excludes forex gain/loss, other income and one time donation of H80 crore. AEL: Adani
Enterprises Limited; AGEL: Adani Green Energy Limited; APL: Adani Power Limited; APSEZ: Adani Ports and Special Economic Zone Limited;
ATGL: Adani Total Gas Limited; ATL: Adani Transmission Limited
PAT growth
The platform
India
At the Adani Group, we believe in and bet on India. We have observed that following the announcement
of liberalisation in 1991, India has not just grown faster; it has compressed the GDP growth of the earlier
decades into considerably fewer years for equivalent growth. For instance, the GDP growth that India
achieved across nearly 60 years was replicated in the next seven years. This is precisely what is expected
going ahead: India is expected to transition from a sub-USD 3 Trillion economy to a USD 5 Trillion economy
in the next few years. At Adani Group, we have proactively invested in businesses that will ride the middle-
income consumption engine seeking improved life quality. We have invested not on the basis of what is,
but on what can be. In making disproportionate investments, we intend to shift the needle not just for the
Company but for the country as a whole with the objective of widening access, reducing costs, widening
the market and, in doing so, helping strengthen India.
Competitive advantage mature’. Some of the businesses direction. Its outsized initial
At the Adani Group, we believe can be classified as mature, capacity establishes economies of
that the ability to make a based on the enduring industry scale within a relatively short time
significant national contribution presence and the conventional horizon that deters prospective
can only be derived from a broad- interpretation of their market competition and generates a
based competitive advantage potential; these very businesses substantial cost leadership (fixed
that is not dependent on any can be considered non-mature and variable) across market
one factor but is the result of an by the virtue of their vast cycles.
overarching culture of excellence addressable market potential and
Technology
– the coming together of rich the superior Adani Group value
The Adani Group invests in the
sectorial experience, timely proposition. The result is that the
best technology standards of
project implementation, ability to Adani Group addresses sectorial
the day that could generate
commission projects faster than spaces not on the basis of existing
precious additional basis points in
the sectorial curve, competence market demand but on the basis
profitability and help more than
to do so at a cost lower than the of prospective market growth
recover the additional cost (if at
industry average, foresight to not following the superior Adani
all) paid within a short tenure.
merely service the market but sectorial value proposition.
This superior technology standard
to grow it, establish a decisive
Outsized evolves into the Company’s
sustainable leadership and evolve
The Adani Group has established sustainable competitive
the company’s position into a
a respect for taking outsized advantage, respect, talent traction
generic name within the sector of
bets in select sectors and and profitability.
its presence.
businesses without compromising
Execution excellence
Relatively non-mature spaces Balance Sheet safety. The Group
The Adani Group has built a
At the Adani Group, we have establishes a large capacity
distinctive specialisation in
selected to enter businesses that aspiration that sends out a
project execution, one of the
may be considered ‘maturely non- strong message of its long-term
most challenging segments in
1.5x
5x
3x
3x
Note: 1. Data for 2020-21; 2. Margin for ports business only, Excludes forex gains/losses; 3. EBITDA = PBT + Depreciation + Net Finance Costs
– Other Income; 4. EBITDA Margin represents EBITDA earned from power supply 5. Operating EBITDA margin of transmission business only,
does not include distribution business. 6. Contracted & awarded capacity 7. CGD – City Gas distribution 8. GAs Geographical Areas - Including
JV | Industry data is from market intelligence 9. This includes 17GW of renewable capacity where PPA has been signed and the capacity is
under various stages of implementation and 29GW of capacity where PPA is yet to be signed’
Adani Transmission Limited Adani Power Limited Adani Ports and Special
Economic Zone Limited
381% 207% 180%
FY 2019-20 FY 2019-20 FY 2019-20
189 28 251
All Adani portfolio stocks generated a return in excess of 100% and outperformed the index by a significant
margin (Nifty-50 generated a return of 71%). 2020-21 stock prices were as of March 31, 2021 and 2019-20
stock price was as of March 31, 2020
World’s
One oflargest Ultra
the world’s
India’s largest India’s largest single
India’s largest private Mega
largestSolar
ultraPower
mega Plant
solar
commercial port location private thermal
sector ports company of 648plant
power MW at of Kamuthi
648 MW
(Mundra) IPP (Mundra)
(Tamil(Tamil
at Kamuthi Nadu)Nadu)
A Time For
Pragmatic Optimism
APSEZ. Competently
placed to address the new
normal.
“By the virtue of being present
in three segments – port
operation, logistics and SEZ
infrastructure management –
we are attractively positioned
to stitch impactful and organic
solutions. This also puts us in
a unique position to identify
the early signs of change and
respond with solutions.”
entered into a lease agreement sustainable and outperforming another international milestone
with the democratically elected growth; some key decisions during by foraying into the container
government at that time. The this year have set the foundation terminal in Colombo port. This will
military coup and subsequent for the coming decade. empower APSEZ to offer one more
violence in Myanmar have gateway to shipping lines and
The uncertainty and volatility
resulted in uncertainty. However, other potential port customers
during the period presented
APSEZ unequivocally condemns across the South Asian waters,
us with a transformational
the violence and the ensuing benefiting India and Sri Lanka.
opportunity to complete four
violation of human rights. United
large acquisitions. We expanded In the logistics business, we
States recently imposed sanctions
our footprint in Maharashtra by scaled and diversified our railway
on MEC - the owner of the land
acquiring a 100% stake in Dighi rolling stock business. The recent
leased to APSEZ as part of
Port through the insolvency and changes in the General-Purpose
the project. APSEZ has a zero-
bankruptcy proceedings of NCLT. Wagon Investment Scheme
tolerance policy to ensure that
The port will provide our Company (GPWIS) of Indian Railways
there is no contravention of US
with much-needed footprint in provided an opportunity to serve
and other sanctions.
Maharashtra. bulk customers not just from ports
APSEZ is proactively drawing on but also from mines. We added
In the recent past, we completed
the opinion of OFAC and other contracts to operate 16 new rakes
the acquisition of Krishnapatnam
stakeholders; it will factor their for raw material transportation
Port. We will acquire the balance
concerns in dealing with the from the mines.
25% stake from the outgoing
evolving situation. For us, not
promoters as well. Following this, FY 2020-21 also saw a shift
engaging with a sanctioned entity
KPCL will become a wholly-owned towards e-commerce with a
in any form, and zero tolerance of
subsidiary of APSEZ. The port is fundamental shift towards
human rights violation is non-
now fully integrated into APSEZ’s demand increasing for large
negotiable.
portfolio in terms of operations format Grade A warehouses. Adani
In a scenario where Myanmar and financials. We demonstrated Logistics forayed into this sector
is classified as a sanctioned the success of our operating with the vision to become the
country under OFAC and if process, which empowered KPCL largest player in this sector in five
stakeholders are uncomfortable to align each activity with APSEZ’s years. We set our sights to build
or if stakeholders believe that high benchmark, strengthening 30 million sq. ft. warehousing
continuance represents a EBIDTA margin from 55% to 71%. capacity during this period. As a
violation of sanctions, APSEZ will part of this plan, Adani Logistics
We announced the acquisition
abandon the project and write Limited announced a strategic
of the third largest private
down project investments in full. and commercial partnership
port of Gangavaram. We have
The write-down will not materially with e-commerce major Flipkart
completed the first tranche of the
impact the Balance Sheet as it is to strengthen its supply chain
acquisition, acquiring 31.5% stake
equivalent to about 1.3% of the infrastructure. Adani Logistics will
from Warburg Pincus and expect
total assets of APSEZ. construct a massive 5,34,000 sq.
to complete the second tranche
ft. fulfilment center by leveraging
by acquiring 58.1% from the
Our business platform state-of-the-art technologies in its
existing promoters in Q4 of
FY 2020-21 was a proposed logistics hub in Mumbai.
FY 2021-22.
transformational year for APSEZ. The center, possessing the
We created a platform for scalable, In April 2021, we achieved capacity to house 10 million units
*As per internal estimates, excluding non-Adani and coastal, LNG, LPG volumes
4 5 6 7
Asset management Customer focus Financial structure Technology
§ Strengthen the sub- § Long-term contracts § Disciplined capital § Invest deeper in
continental ports § Stronger revenue allocation technologies
‘necklace’ (organic/ visibility § Moderate capital § Enhance customer
inorganic initiatives) expenditure delight
§ Customer Satisfaction
§ Enhance our asset Score of 4.75+ (of 5) § Enhance free cash § Enhance operating
utilisation flows efficiency
§ Enhance asset use
flexibility
the world is seeking an alternative logistics efficiency and enhanced this became a reality, India’s ports
to China as a supply chain partner, national competitiveness. throughput could 7% in services
we believe that India’s moment exports by 2025.
may have arrived. India’s global trade
percentage Conclusion
Enabler-strengthening India accounts for nearly 18% At APSEZ, we are attractively
reforms of the global population but positioned to capitalise on the
While India’s reforms and long- India’s share in global exports for India growth story by the virtue
term policies have been broad- merchandise was 1.71% and in of being the country’s largest
based, reforms related to logistic global imports was 2.53%, a large commercial port operator as well
enablers like roads, rail, inland headroom that is waiting to be as its extension from core port
waterways and ports could corrected. As India industrialises operations to integrated logistics
have a catalytic impact on the faster and the benefits of policy solutions and SEZ services.
country’s logistics costs and reforms begin to kick in, India’s APSEZ’s scope and scale has
competitiveness. India’s logistics competitiveness as a global made it unique in India’s logistics
cost as a percentage of GDP is products and services provider infrastructure and services sector,
estimated to be 500 bps higher could increase, enhancing ports inspiring the optimism that as
than the prevailing average throughput. A CII report titled ‘Re- India continues to grow faster
in most developed countries. orienting India’s Export Endeavour than the global growth average,
Following reforms across its in the COVID-19 World’ makes a the Company is attractively
logistic arms, India has possibly policy suggestion on how India positioned to grow even faster.
arrived at an inflection point that needs to aim for 5% share of world
could translate into increased merchandise exports and should
India’s resource consumption, well below the global average, is waiting to correct
Steel under-consumption Cement under-consumption
75 225
(Kgs), India’s per capita steel consumption, (Kgs), India’s per capita cement consumption,
FY 2019-20 FY 2019-20
229 525
(Kgs), Global per capita steel consumption, (Kgs), Global per capita cement consumption,
FY 2018-19 FY 2019-20
(Source: Ministry of Steel, 2021 & World Steel (Source: ACC Cement Investor Presentation)
Association)
Electricity under-
consumption
1,208 2,674
(Kilowatt hour), India’s per capita (Kilowatt hour), Global per capita
electricity consumption, 2020 electricity consumption, 2019
(Source: IBEF, Economic Times)
Customer value
APSEZ established a reputation
around a lower berthing time
with corresponding cost savings
8.5x
Growth in Indian
685x
Growth in APSEZ
11.9
% CAGR growth
41
% CAGR growth in
GDP in 19 years topline in 19 years in Indian nominal APSEZ topline,
ending 2020-21 ending 2020-21 GDP, FY 2002-2021 FY 2002-2021
71x
Growth in APSEZ
3x
Growth in all-India
44%
APSEZ ratio of cargo
51%
APSEZ ratio of
cargo in 19 years cargo in 19 years throughput share to cargo throughput
ending 2020-21 ending 2020-21 capacity share, share to capacity
(CAGR 20%) (CAGR of 6%) FY 2009-10 share, FY 2020-21
Asset Contribution
10%
APSEZ’s all India operational capacity
19%
APSEZ’s all India operational capacity share
share (%) FY 2009-10 (%) FY 2020-21
Growing profitability
3
% APSEZ RoCE in
17
% APSEZ RoCE in
13
% APSEZ RoCE in last
FY 2002-03 (based on FY 2010-11 (based on seven years following the
Mundra operations) Mundra operations) commercialisation of new
ports and acquisitions
Profitable growth
3.6x
ratio of APSEZ revenue
30 x
APSEZ capacity growth at a CAGR of
growth to real GDP growth 20% over FY 2002-2021
(average) in last 10 years
4x
APSEZ cargo throughput
growth (average) over all-
India growth in 19 years
ending FY 2020-21
APSEZ’s robust
opportunity-ready
business platform
Enduring
Safe and secure Complementary Operating head Employee
customer
sites leadership room friendly
partnerships
OVERVIEW
Complement Capacity
of ports disaggregation
Supportive Attractive
global hinterland
direction and growth prospects
national
policies
The broad elements of how we enhanced shareholder value over the years
Responsibility Sustainability
Scale
Largest Indian port The largest number of The largest Indian The largest Indian
operations Company ports owned by any standalone ports integrated logistics
Indian Company Company
Speed
Grown from scratch to Among the five Grown capacity by a Grew east coast port
the largest Indian port fastest growing port CAGR of 7% in the five capacity from 7% of
operations company operating companies years ended total port capacity in
in 23 years in the world FY 2020-21 FY 2014-15 to 33% in
FY 2020-21
Efficiency
Responsibility
Sustainability
FY 07 1 FY 16 4,651
FY 20 4 FY 20 7,565
180
FY 21 5 FY 21 8,063
% growth in BSE Sensex
12% CAGR, five years ending (2010 to 2021)
FY 2020-21
FY 07 6 FY 16 -18
FY 20 56 FY 20 52
FY 21 60 FY 21 72
How we intend to
enhance value by 2025
Overview achievement in the last few years enhancement & cost efficiency
At APSEZ, the one aspect of our has been its ability to protect and prioritising capital allocation
operations that was central to and enhance capital efficiency in assets generating higher
our business growth was capital (measured through the RoCE) returns.
efficiency. even as the Company passed
This priority will cascade from
through a dynamic growth phase
Across the last couple of an organisational perspective
marked by an aggressive increase
decades, the Company invested to drive the profitability needle
in employed capital.
in its business with clarity higher through various initiatives
around the minimum hurdle rate Going ahead, the Company directed to sweating the
of return required to address the will continue to focus on RoCE Company’s infrastructure better,
needs of lenders and risk capital maximisation as the central generating higher revenues
providers and leave adequate measure of its value-enhancing from existing infrastructure and
surplus for reinvestment. approach. This focus on capital amortising fixed costs more
efficiency will be driven by effectively.
The Company’s biggest
sweating of assets, revenue
2
At APSEZ, we expect to We are optimistic that the
strengthen our business through strategic partnerships with TOTAL
various initiatives. in the LPG/LNG business and
with MSC and CMA-CGM in the
We intend to sustain the growth
container business could widen
in our cargo throughput from
revenues. We intend to get into
247 MMT in FY 2020-21 to over
other strategic partnerships for
500 MMT cargo by FY 2024-25
the sustainable growth of our
Strengthening backed by the sustained growth
cargo and revenues.
of the Indian economy and our
the business corresponding ability carve away We intend to enter into strategic
model a significant market share. partnerships and a user-driven
capex to fuel growth in port-led
We intend to diversify our cargo
development.
away from coal towards more
balanced cargo mix including We expect to leverage
new growth commodities (LNG/ technologies effectively across
LPG), minimising our cargo risk back-end and front-end port
that sustains our growth through operations, helping reduce costs
market cycles. and enhance margins.
We intend to widen our revenue We also intend to use technology
streams through the expansion as a differentiator from
of our logistics business that competitors; to enable the
complements our ports business. Company to provide integrated
The Company intends to logistics solution to customers,
progressively monetise its SEZ enhancing revenue and market
and land bank (total land bank of share.
12,000 hectares) with contiguous
We intend to increase our
multi-modal connectivity.
international presence in growing
We believe that the non-Mundra economies with a major focus on
ports will sustain rapid growth; the container business.
besides, concluded/ongoing
We are also determined to
acquisitions (Krishnapatnam,
become carbon-neutral while
Dighi and Gangavaram) will
promoting a green supply chain.
provide access to new customers
and geographies.
Part 2
Our performance
How we performed in 2020-21
Our 208
223
operational 180
performance
in the last few
years
FY 18 FY 19 FY 20 FY 21
Cargo management
MMT % MMT
33 33
78 32 32 169
72
68 151
139
59
121
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Coal cargo volumes Coal cargo as % of volumes Non-coal cargo volumes
67 67 68 68 498
395
367 380
3,34,851
3,25,067
4.41
2,40,998
2,53,925
2,31,507
2,30,756
3,13,273
2.73
1,50,942
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Non-coal cargo as a % of volumes Logistics volumes Aggregate port capacity
Rail TEUs Terminal TEUs GPWIS (MMT)
The
efficiency
of our
operations
% Minutes
54
52 52 476
47
349 346
327
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Capacity utilisation Pre-berthing delay
949 23892
878
833
773
10967
10237 10238
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Turnaround time Operational productivity
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Definition Definition Definition
Growth in sales net of taxes. Earnings before the deduction of Profit earned during the year after
fixed expenses (interest, depreciation, deducting all expenses and provisions.
Why is this measured? extraordinary items and tax) and foreign
It is an index that showcases the Why is this measured?
exchange (gain) / loss This measure highlights the strength of the
Company’s ability to enhance revenues, an
index that can be compared with sectoral Why is this measured? business model in enhancing shareholder
peers. It is an index that showcases the Company’s value.
ability to generate a surplus following the What does it mean?
What does it mean? expensing of operating costs.
Aggregate sales increased by 6% to Ensures that adequate surplus is available
H12,550 crore in FY 2020-21, mainly due to What does it mean? for reinvestment.
Ports’ cargo growth of 11%. Helps create a robust growth engine to sustain Value impact
profits The Company reported a 33% increase in
Value impact
The Company performed better than the Value impact net profit in FY 2020-21.
sectoral average The Company generated an attractive
surplus despite sectoral challenges
^ Excludes one-time donation of H80 crore
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Definition Definition Definition
EBITDA margin is a profitability ratio used It is a financial ratio that measures a This is derived through the ratio of debt to
to measure a company’s pricing strategy company’s profitability and the efficiency net worth (less revaluation reserves)
and operating efficiency. with which its capital is employed in the Why is this measured?
Why is this measured? business This is one of the defining measures of a
The EBIDTA margin provides a perspective Why is this measured? company’s financial solvency
of how much a company earns (before ROCE is a useful metric for comparing What does it mean?
accounting for interest and taxes) on each profitability across companies based on This measure enhances a perception of the
rupee of sales. the amount of capital they use – especially borrowing room within the company, the
What does it mean? in capital-intensive sectors. lower the gearing the better.
This demonstrates adequate buffer in What does it mean? Value impact
the business, expressed as a percentage, Enhanced ROCE can potentially drive The Company’s gearing declined by 3
which, when multiplied by scale, enhances valuations and perception. bps on account of debt repayment and
surpluses. Value impact increased net worth.
Value impact The Company reported a 90 bps decrease
The Company sustained its EBIDTA margin in ROCE due to lower SEZ & port
during FY 2020-21 despite the COVID-19 development revenue during FY 2020-21.
pandemic.
# Includes Krishnapatnam port’s EBIT for H1 FY 2020-21 also
Average debt cost (%) Net debt / EBIDTA (x) Net worth (H cr)
6.9 6.9 6.7 3.3 25,843 32,097
5.7 2.9 2.9 24,748
2.5
21,218
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Definition Definition Definition
This is derived through the calculation of the This is derived through the division of Net This is derived through the accretion of
average cost of the consolidated debt on the debt by EBIDTA shareholder-owned funds.
company’s books Why is this measured? Why is this measured?
Why is this measured? This liquidity cover indicates the Company’s Net worth indicates the financial
This indicates our ability in convincing comfort in servicing debt – the lower the soundness of the company – the higher
bankers and other debt providers of the better. the better.
robustness of our business model, translating What does it mean? What does it mean?
into a progressively lower debt cost A company’s ability to meet its debt This indicates the borrowing capacity of
(potentially leading to higher margins). repayment (hence interest) obligations, an the Company and influences the gearing
What does it mean? aspect of its solvency, is arguably one of the (which in turn influenced the cost at which
Enhanced cash flows; strengthened credit most important factors in assuring sizeable the Company can mobilise debt).
rating for successive declines in debt cost returns to shareholders. Value impact
Value impact Value impact The Company’s net worth strengthened
This ratio should ideally be read in The leverage for the Company increased 24% during the year.
conjunction with net debt/operating profit primarily on account of debt for the
(an increase indicating higher liquidity). The Krishnapatnam port acquisition effective
debt cost of the Company declined 20 bps from October 2020. However, this was well
during the year. within the target range of 3.0x to 3.5x
FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21
Definition Definition Definition
This is derived through the accretion of This represents the people capital available This is derived through corporate social
physical assets or infrastructure. within the Company. responsibility spending.
Why is this measured? Why is this measured? Why is this measured?
Net fixed assets indicate the Company’s This indicates whether the Company is This indicates the widening influence of the
preparedness in building infrastructure for increasing its people capital with the objective company across its external stakeholders.
servicing the needs of the future. to address the needs of the future. What does it mean?
What does it mean? What does it mean? This indicates a reinforcement of the
This indicates the infrastructure room A relatively lower growth in people and a community fabric around the Company’s
available within the Company, which serves higher relative revenue growth indicate areas of presence
as a platform for prospective growth enhanced organisational productivity, the Value impact
basis of value-creation.
Value impact The Company’s CSR spending strengthened
The Company’s net fixed assets Value impact 5% during the year under review.
strengthened 37% during the year under The Company performed better than the
review. sectoral average
* Excess CSR H16 crore to be carried forward for set-off in the
succeeding financial year
APSEZ: Adani Ports and Special Economic Zone Limited; AICTPL: Adani International Container Terminal
Private Limited (50:50 JV between APSEZ and Mundi Limited, a subsidiary of Terminal Investment Limited
Holding S.A.
Highlights
Demonstrates an ability to fund large Broadbased investor base
acquisitions
The issuance of the bonds demonstrated All issuances evoked strong investor interest
the ability to fund large acquisitions (e.g. across major geographies (US, Asia, Europe and
Krishnapatnam port). The bonds were Middle East), subscribed by multinational banks,
successfully issued despite market disruptions insurance companies, pension funds and asset
caused by the COVID-19 pandemic. managers etc. This indicated the confidence of
global investors in the APSEZ growth story.
01/Apr/20
01/May/20
01/Jun/20
01/Jul/20
01/Aug/20
01/Sep/20
01/Oct/20
01/Nov/20
01/Dec/20
01/Jan/21
01/Feb/21
01/Mar/21
01/Apr/21
were executed when the
benchmark 10-year U.S.
treasury yield curve traded
lower (see chart).
Investor interest
All issuances were oversubscribed 2.8 to 9 times of the issue size, which helped in lowering the coupon
rate. For instance, AICTPL attracted the lowest ever coupon (@3%) for a USD bond issuance of the Adani
Group.
APSEZ January 2021 AICPTL bond was All the foreign currency The Company increased
Bonds (@3.1%) were the first-ever with a bonds issuances of the average maturity
raised to refinance project financing-based APSEZ are senior of its overall long-term
APSEZ’s earlier bonds structure by APSEZ. unsecured in nature debt from 5.2 years in
maturing in January The earlier bonds were and constitute 67% FY 2019-20 to 6.0 years
based on a corporate
2022 (coupon rate @ of the Company’s in FY 2020-21, backed
financing-based
3.95%) structure. The AICTPL consolidated long- by the issuance of long
bond was the first-ever term debt, providing tenor bonds.
at the joint venture flexibility to the
entity level within Company in financing
APSEZ. All earlier bonds its growth.
were issued at the
APSEZ parent entity
level.
How we transformed
in the last few years
50+ 50+
% of cargo throughput from % of cargo throughput from
customers of five years or customers of five years or
more, 2015-16 more, 2020-21
Liquidity buffer Debt tenure (average) (Years) Forex debt exposure (%)
Net debt / EBIDTA (x)
FY 16 3 FY 16 13
FY 16 4.4 FY 21 6 FY 21 16*
FY 21 3.3
Forex revenue as a percentage
The Company enhanced EBIDTA Forex debt mix (%)
of forex debt
87% between 2015-16 and 2020- FY 16 60 *Includes forex income of
21; cash on books increased from Krishnapatnam Port during H1
H1768 crore to H5929 crore (235% FY 21 69 FY 2020-21
growth) during this period.
The Company’s forex revenues provide
* FY 2020-21 EBITDA includes H614 Long-term financing (%)
a natural hedge to its forex debt, de-
crore from Krishnapatnam port risking it against currency movements
FY 16 71
operations in H1 FY 2020-21 but
excludes a one-time donation of H80 FY 21 99
crore.
The Company leveraged its
IG rating and Balance Sheet
strength to elongate debt tenure,
strengthening cash flows
Credit rating
Investment Grade (Stable outlook), FY 2014-15
Investment Grade (Stable outlook), FY 2020-21
The Company maintained its IG rating since 2015
CASE STUDY
CASE STUDY
CASE STUDY
CASE STUDY#6
Sustainable platform
Space-plus Service
Largest scale Multi-modal
approach integration
Logistical Enhance
Annuity
specialisation customer
engagement
competitiveness
General Purpose Wagon Return Ratio criteria and an § Additional loading for Indian
Investment Scheme (GPWIS) annual cap on rebate enhanced Railways without additional
Traditionally, open wagon rakes the scheme’s success. capex on wagons
were supplied by Indian Railways
The benefits of the new wagon As on March 31, 2021, Adani
to power, steel and other
induction comprise the following: Logistics Limited (ALL), as a
industries for the movement of
logistics service provider, operated
bulk raw materials like coal, iron § Reliable evacuation assurance
10 BOXNHL rakes under GPWIS
ore, clinker and limestone etc. Due as private wagons are operated
for multiple customers. The
to the increased wagon demand specifically for the single
Company’s customers comprised
in Chhattisgarh, Jharkhand, Orissa customer in the dedicated close
steel plants, coking plants and
and West Bengal by the coal, circuit
pellet plants in the Dhamra port
steel and other metal industries,
§ Reduced inventory costs hinterland for which imported
sustainable cargo evacuation
following a streamlined supply coking/ non coking coal was
remained a challenge. In 2017,
chain transported from the port to
when many BOXN rakes were
plants.
moved by railways under priority § Lower idle freight losses as
to feed power plants facing coal new wagons comprise lower ALL is also handling the
shortages, the metal industries tare weight than existing older movement of domestic iron ore
suffered demurrage charges wagons from mines to plant and export
on import vessels due to the iron ore from mines to port. In
§ No inconvenience in chasing
unavailability of rakes. The supply FY 2021-22, ALL will expand its
Indian Railways in indent
chain disruption led to a loss of GPWIS services to private power
placement and maturity
business and product quality plants in West and Central India,
issues. This led Indian Railways § Induction of high capacity procuring coal from Northern
to consult users leading to the wagons compared to a majority Coalfields Limited (NCL) and
GPWIS Policy in 2018. The policy of existing Railways wagons, South Eastern Coalfields Limited
empowered private players resulting in increased average (SECL) mines, respectively. The
to invest in wagons to carry rake load Company’s target is to move from
coal and iron ore. A liberalised east-centric operations to a pan-
approach by Railways in providing § Increased evacuation capacity
India presence, servicing multiple
amendments to remove the Empty for ports and mines
plants across the country.
Project details
The Gujarat government signed a memorandum of understanding (MoU)
with Adani Ports and Special Economic Zone Limited for establishing
India’s biggest multi-model logistics park. The proposed complex will be
located at Virochan Nagar near Sanand on Ahmedabad’s outskirts. This
Park will be connected to the Dedicated Freight Corridor and all major
ports. This will be a first-of-its-kind multi-modal logistics park facility
in India serviced by air, rail and road across 1,450 acres. The projected
investment outlay of H50,000 cr is expected to be incurred across 10-15
years.
Container and
Petroleum Oil bulk cargo Other enabling
Auto storage Steel storage storage and infrastructure
and Lubricants
yard yards handling like business
(POL) tank farms
infrastructure centers
Integrated operations
2x port
income
Warehousing Warehousing
2x
warehousing
income
2x rail
income
Part 3
Integrated
Reporting
Our Capitals
All organisations depend on various forms of
capitals for their value creation. Our ability
to create long-term value is interrelated and
fundamentally dependent on various forms of
capitals available to us (inputs), how we use them
(value-accretive activities), our impact on them and
the value we deliver (outputs and outcomes).
FY 2020-21 highlights
APSEZ’s growth platform
247 7.2
Manufactured Total cargo Total container
Capital volume volume handled
(MMT) (million TEUs)
Real-time vessel
Intellectual Streamlined data
movement
Capital tracking
repository
3.5 4.42 1 0
Revenue per
Employee LTI On-roll + FTE Fatalities
employee
turnover on Contract On-roll + FTE on
(H, crore)
(%) contract
Human Capital
0.21
Injury rate for
On-roll + FTE on contract
(Per million manhours worked)
Natural Capital
0.28 21 17.15
Water consumption 3,07,670 Planting
intensity Emission intensity
GHG Emission
(tCO2e/Revenue (lakh saplings/
(ML/Revenue (tCO2e)
in H crore) trees)
in H crore)
4.95 0.37 6
Number of direct Injury rate of Fatalities
16
contractual LTI contractual
and indirect contractual
workforce (Per Workforce
beneficiaries Workforce
Social and million manhours
Relationship (lakh) worked)
Capital
73 Guidelines on
Increased
Good governance
CSR expenditure transparency with
Human Rights UNGC membership
(H, crore) ESG dashboards
The APSEZ
business model
Financial Capital
Manufactured Capital
11 498
Operating ports 5 Cargo
1 Multi-modal
logistics park
handling capacity
(MMT)
Ports under
construction
12,000 + 0.87
Land bank Operational
(hectares) agri silo capacity
(MMT)
Intellectual Capital
Human Capital
2,733 90 53
Permanent Full time employees % of millennial
employees - on contract employees
4.68 1
Average training, Average safety
person-days a year training person-days
per employee
2,299 73 1.5
Employee Average safety training
(H, crore)
volunteering hours person-days per
CSR expenditure
worker
Natural Capital
Energy mix
167 4,126
59 36 5 Energy intensity
(GJ/Revenue in Water consumption
Fuel Grid Renewable
crore) (ML)
(%) (%) (%)
0.28 77 1.7
Water consumption Environmental Trees planted/
intensity investment conserved
(ML/Revenue in crore) (H, crore) (million)
Supply Chain
12 5
(H share) dividend
RoCE (%) proposed by the Board
Manufactured Capital
247 7.2 68
Non-coal volume
Cargo volume Total container
out of total volume
(MMT) volume handled
handled
(11% y-o-y growth) (million TEUs)
(%)
Intellectual Capital
Minimised congestion,
Integrated real-time
Streamlined data pollution due to
vessel movement
repository the deployment of
tracking
technologies
Human Capital
3.5 1 0
LTI — On-roll+ FTE Fatalities — On-roll +
Employee on Contract FTE on Contract
turnover
(%)
16 6
Contractual workforce Contractual workforce
4.95 97
Total number of
Local
direct and indirect
procurement
beneficiaries
(%)
(lakh)
Natural Capital
1,11,510
GHG Scope 1 emission
(tCO2e)
1,96,160
GHG Scope 2 emission
(tCO2e)
3,48,341
GHG Scope 3 emission
(tCO2e)
21
GHG intensity
(Scope 1 + Scope 2)
(tCO2e /Revenue in crore)
6,885
Waste
managed
(MT)
29,359
Carbon offset due
to renewable energy
projects
(tCO2e)
650
Wastewater recycled
and reused
(ML)
Stakeholder Landscape
D I R E C T
Customers
Government
Employees Investors
Local Neighboring
Suppliers Shareholders authorities communities
Rating
Peers agencies Associations Media
Citizens
NGOs
We developed formats for our the stakeholder groups; we When choosing topics for
dialogue with stakeholders, which compensated this by introducing dialogue with stakeholders, we
we use with our engagement digital engagement modes considered the nature of business
procedures. These help us in and sharing insights with our relationship, upcoming issues/
eliciting feedback from direct teams. While we seek the widest megatrends and sector outlook as
and indirect stakeholders on a representation of voices across guiding notes. We also used this
continuous basis. During the four impact areas, resources opportunity to validate and, where
FY 2020-21, the pandemic required to acquire authentic relevant, revised our materiality
prevented us from engaging feedback challenged us to take matrix.
one-to-one with most of this to its full potential.
Advocacy and leadership Topics that are particularly § Federation of Kutch Industries
Advocacy and leadership serve relevant to APSEZ include (FKI)
as the foundation of APSEZ’s environment, climate change, § Hazira Area Industries
democratic decision-making port development for trade Association (HAIA)
and policy development. We enhancement, resource efficiency,
§ Southern Gujarat Chamber of
participate in sector-specific marine pollution, biodiversity etc.
Commerce & Industries (SGCCI)
public consultations and are Industry associations through § Gujarat Safety Council –
partner in regional and national which we participate in advocacy Vadodara (GSC)
opinion-forming processes, and leadership initiatives:
thus, influencing the decisions § National Safety Council –
§ Confederation of Indian Industry Mumbai (NSC)
made by political, economic and (CII)
social organisations. We are § Industrial Waste Management
determined to play a constructive § World Economic Forum (WEF) Association, Chennai (IWMA)
role in shaping a regulatory § Federation of Indian Export The Company subscribes to the
framework for the organisation Organisations (FIEO) following externally developed
with reliable support from our § Federation of Indian Chamber of principles:
Board members in collaboration Commerce and Industry (FICCI) § United Nations Global Compact
with local governments, industry
§ The Associated Chambers of (UNGC)
associations and customers to
Commerce and Industry of India § India Business & Biodiversity
develop policy briefs. We monitor
(ASSOCHAM) Initiative (IBBI)
relevant global and national topics
that allow a timely identification § Ahmedabad Management § IUCN - Leaders for Nature (LfN),
of government schemes, policies Association (AMA) India
and incentives that may have a § Gujarat Chamber of Commerce
positive or negative impact. and Industry (GCCI)
In line with global concerns about physical and mental well-being of change, biodiversity and land
the widespread impact of the employees and on-site workers, use continued to be our priority,
pandemic, ‘Occupational Health, including measures to prevent reflecting the growing evidence
Safety and Well-being’ emerged the spread of the pandemic at our of likely impacts on business and
as a prominent ESG issue. This sites (managed and controlled). society.
material issue referred to the The material issue of climate
Community relations
Natural resource (Short-term for new Availability of skilled talent
conservation projects, medium for (Short-term, previously
(Long-term, Environment) operational projects, social) medium-term, Social)
Shift in materiality trends to support vendors that operate in infrastructure availability was the
Material issues impact our ability our premises and mass migration only aspect that levelled down
to enhance stakeholder value. A of the workforce leading to non- as a consequence of movement
short-term shift in priorities was availability of skilled manpower restrictions during COVID-19.
observed following the pandemic, during the lockdown.
Besides, ‘Community relations’
wherein material aspects like Work-from-home put remained high on our list
cybersecurity, availability of skilled cybersecurity at risk considering on account of rising APSEZ
manpower, vendor relations as the prospect of data breaches as expectations to provide services
well as labour relations & human a result of the flow of confidential to the community coupled with
rights became prominent, while data across online pathways. The natural resource conservation
social infrastructure availability new material issue on ‘Labour (among other important concerns
declined. ‘Vendor Relations’ and Relations and Human Rights’ of stakeholders influencing our
‘Availability of Skilled Manpower’ underscored the rising awareness sustainability performance).
increased in importance, owing to of potential labour and human
the higher expectations for APSEZ rights-related issues. Social
captured through our integrated Goals and targets ports will be included in our ESG
report, dashboards and other APSEZ’s reporting boundary framework from FY 2021-22. The
publications or forums. includes ports, logistics, dredging ESG performance will be assessed
To keep disclosures transparent and the other businesses. These and aligned with our target.
and accurate, we follow a robust targets are to be achieved by Accordingly, the base year and
assurance process. FY 2024-25 with a projection of reduction targets will be revised
interim targets. Two acquired from FY 2021-22.
Environment
Indicator FY 2020-21 Achievement FY 2021-22 FY 2024-25 Target
Target Target
Renewable energy$ 20 MW 100% 21 MW 100 MW
Renewable energy/ total energy share $
6% 88% 6% 25%
Renewable energy/ grid energy share$ 12% 125% 15% 45%
Energy intensity reduction* 40% 83% 30% 50%
Emission intensity reduction* $
40% 88% 35% 60%
Water consumption intensity reduction* 50% 110% 55% 60%
Water withdrawal from non-shared 75% 89% 76% 80%
resources
Rainwater harvesting structure 10 90% 10 20
Waste intensity reduction# 20% 75% 20% 30%
Zero waste to landfill certification 3 ports 100% 6 ports 12 ports
New targets
Single use plastic free sites – 9 ports 11 ports + 4 12 ports + 4 ICDs +
ICDs 14 Agri-logistics Sites
Alliance for Water Stewardship – – – 12 Ports
Certification
Wash assessment – – 6 ports 12 ports
Recycle and reuse of wastewater 1.78 MLD 2 MLD 10 MLD
Mangrove afforestation – 2989 Ha 3200 Ha 4000 Ha
Terrestrial plantation – 965 Ha 1000 Ha 1200 Ha
*Base year is FY 2015-16; # Base year is FY 2017-18; $ We are revisiting the energy and emission targets in line with our goal
of carbon neutrality.
Social
Indicator FY 2020-21 Achievement FY 2021-22 FY 2024-25
Target Target Target
Voluntary attrition <6% 3.5% <4% <4%
Employee satisfaction 4.2/ 5 4.1/5 4.2/ 5 4.5/ 5
Average employee training 3.75 days 4.68 days 5 days 5 days
Supplier satisfaction 4.5/5 3.9/5 4.5/5 4.75/5
Customer satisfaction 4.5/5 4.2/5 4.5/5 4.75/5
Safety Mandatory 100% Zero incidents Zero incidents
training
Community Based Skill 50000 68149 69000 100000
Development Program Enrollment Enrollment Enrollment Enrollment
Women Self Help Group 150 160 165 200
ESG strategy, goals and target internal policies and standard Our utility company MUL,
implementation operating procedures. dredging company SSIDL and
Implementing ESG strategies, harbouring company TASHL were
Management systems supporting
goals and targets are cross- also certified with IMS.
implementation of ESG
functional responsibility at
All 10 ports and two joint By and large, we leverage
APSEZ. While the corporate
ventures (AICTPL and technology for data collection
governance mechanism provides
ACMTPL) are certified with and analysis. Sustainability
strategic outlook and direction,
the Integrated Mangagement Information Management System
SLC members and the head of
System (IMS) comprising of (SIMS) assists in decentralising
operations of each business
Quality Management System data input and the regular
unit are in charge of tracking
(ISO 9001:2015), Environment assessment of performance and
progress towards goals. Managers
Management System (ISO progress.
within each business unit are
14001:2015) and Occupational
responsible for monitoring We deploy extensive multilevel
Health and Safety Management
performance and reporting to the training programmes with cross-
System (ISO 45001:2018). Five
Directors of operations. Corporate functional teams to ensure that
ports (Mundra, Tuna, Dahej,
Sustainability team and managers policy, implementation and the
Hazira and Goa) and two joint
are accountable for monitoring sharing of best practices occur
ventures are certified with
external trends, including continuously.
Energy Management System
regulatory and non-regulatory,
(ISO 50001:2018) as well. At Beyond knowledge sharing,
assessing the risks, opportunity
other ports, the implementation various avenues for employee
and potential uncertainties.
of ISO 50001 is under progress. motivation to perform on ESG
Integrated Management System Additionally, three ports are ISO are also explored. Rewards,
comprising quality, environment 28000:2017-certified (Security awards and monetary incentives
and occupational health & safety Management System for Supply are built into our system. For
provides support in setting up Chain). instance, variable pay components
roles and responsibilities, and for certain employees are
All our logistic operations, except
processs for reporting. This incorporated into safety
one, is certified with IMS. All the
applies to all units of APSEZ, performance, energy performance
agri-logistics sites are certified
including joint ventures, partners, and water management.
with Food Safety Management
customers and suppliers and is
systems (ISO 22000:2018).
based on legal requirements,
Social & environmental due diligence - ESMS implementation for all sites are in process
In today’s global economy, construction, operation, mergers emulate. More details can be
environmental and social and acquisitions. accessed in the Supplier section.
responsibility are critical.
In a recent measure, we initiated Customers are required to
Environmental and social
Supplier ESG assessment where follow The Berthing Guidelines,
management system (ESMS)
environmental KPIs such as which provide guidance on
assists businesses in integrating
energy use, water use, efficiency, the efficient provisions of
plans and standards into core
fuel consumption etc. are part pilotage services and set out
operations, allowing them
of the evaluation process. agreed operational parameters,
to anticipate environmental
Suppliers and vendors who work environment & safety measures
and social risks posed by their
in our premises are regularly endorsed by the Marine
business activities and avoid,
monitored to ensure that they Department. We ensure that
minimise and compensate
operate in compliance with our customers - shipping lines -
for such impacts as needed.
environmental laws, company comply with the Environmental
A good management system
policies and commitments. Protection guidelines issued
provides for consultation with
Vendors are graded on their ESG by the Marine Department.
stakeholders and means for
performance and action plans Environment protection is
addressing concerns from
developed to help them improve. a shared responsibility of
workers and local communities.
Suppliers with an overall score our customers who have a
Consequently, APSEZ adheres to
of more than 90 are recognised, significant impact on marine
the IFC Performance Standards
which encourages others to biodiversity.
issued by the World Bank during
§ APSEZ participates in CDP annual disclosures for climate change and water
security.
§ In CDP Disclosure 2020, APSEZ Scored ‘B-’ for Climate Change and ‘B’ for
Water Security. APSEZ also received ‘B’ in the Supplier Engagement Rating.
§ APSEZ is participating in DJSI Corporate Sustainability Assessment.
§ APSEZ received 55/100 score in CSA 2020.
§ APSEZ committed for Science Based Targets initiative – Business ambition for
1.5 degree Celsius.
§ APSEZ is in the process of setting the target and submitting it for validation.
§ APSEZ aligns its ESG activities with the United Nations Sustainable
Development Goals (SDGs).
Risk Management System § Provided guidance over risk The Company’s Board-approved
In FY 2020-21, APSEZ continued supervision, risk assessment and Risk Management Policy
to strengthen its comprehensive risk management. comprised material risks faced by
system to promptly identify the Company that were identified
§ Developed risk assessment and
risks, assess their materiality and assessed. The Company set
measurement systems.
and take measures to minimise up a policy framework for ensuring
their likelihood and losses. § Established policies, practices better management of risk profile.
Risk management was applied and other control mechanisms
The Company provided
across all management levels to contain risks.
importance to prudent
and functional areas. Risk § Reviewed and monitored the project (conceptualisation,
management roles were effectiveness and application implementation and sustenance)
distributed across the Executive of risk management policies, practices, putting in place suitable
Management, Risk Management related standards and risk mitigation measures.
Committee and Audit Committee. procedures.
The risk management framework
Key roles and responsibilities § Reviewed and identified risks in of APSEZ sought to minimise
the area of cyber security and the adverse impact of risks on
The Executive Management and/
management. key business objectives and
or Risk Management Committee
enabled the Company to leverage
performed the following functions
Implementation opportunities.
in FY 2020-21
During the period under review, The Company designed and
§ Periodic review and approval of the Risk Management Committee operated its risk assessment
various business proposals for held three meetings. model that factored quantitative
their corresponding risks and
and qualitative information.
opportunities.
Industry Risk External Ensures financial Business Development Head of each SBU &
flexibility Team
Maintains long-term
optionality
Technology Risk Operational Focuses on people, planet IT Head (CIO) and Sustainability Committee
and prosperity
Optimises overheads,
costs and capital
expenditure
Improves portfolio quality
Political Risk External Ensures financial Site CEO’s office, CEO’s office and corporate
flexibility affairs
Maintains long-term
optionality
Competition Risk External Ensures financial Site CEO’s office and business team
flexibility
Maintains long-term
optionality
Geographic Strategic Optimises overheads, Site CEOs, COO and APSEZ CEO
Focus Risk costs and capital
expenditure
Improves portfolio quality
Maintains long-term
optionality
Climate Risk Operational Focuses on infrastructure Sustainability team and CEO APSEZ
vulnerability,
competitiveness, people,
safety and resource
availability (water and
power)
Optimises overheads,
costs and capital
expenditure
Land Availability Strategic Focus on people, safety Strategy team, land team and projects
Risk and sustainability
Optimises overheads,
costs and capital
expenditure
Improves portfolio quality
Maintains long-term
optionality
Risks & their FY 2020-21 risk assessment & Risk External stimulus
description consequences movement/ and our strategic response
trends
Macro-economic § India’s economic growth was High/ § The Indian economy is one of
Risk: The severely affected in FY 2020-21, Stable the fastest growing among major
business that we witnessing 7.3% GDP degrowth. economies.
are in is largely § Prolonged lockdown in country § The consumption-driven Indian
influenced by at the beginning of FY 2020- economy is extensively under-
economic factors 21, has severely impacted the consumed across products and
– international, demand of goods, services & resources.
national, and hence transportation demand. § COVID-19 has negatively affected
regional growth
§ Shock in economy has resulted port volumes at many global & Indian
– outside our
in a demand-supply gap. In the ports. However, at APSEZ, we were
control.
ports & logistic sector, supply able to manage the marginal growth
was high, which resulted in an in our port portfolio through strategic
inter-port competition. initiatives and effective stakeholder
§ Can affect relevance within our management.
region and sector.
Political Risk: § Major Port Authorities Act Stable § The Indian government announced
This comprises 2020: The Govt. of India a number of long-term policies that
the risk of a introduced the Major Port enhanced the relevance of the ports
change in the Authorities Act 2020 to and logistics sectors in India.
government that increase participation of the § Through Major Port Authorities Act
could review private sector in port industries. 2020, APSEZ is also pursuing an
existing policies. Major Port Authorities Act opportunity to engage in major port
also provides freedom to port terminals to increase its presence
authority/ PPP operator to across the Indian coastline and offer
fix tariff. It confers power services to customers.
to the port body to raise
loans and issue securities for
developments. This Act will
increase competition in the
Indian ports sector.
§ A review of existing policies
could affect sectorial and
corporate prospects.
Risks & their FY 2020-21 risk assessment & Risk External stimulus
description consequences movement/ and our strategic response
trends
Regulatory Risk: § This could potentially translate Low § We have positioned ourselves across
The business into censure and operational products, customers and markets that
is marked by slowdown. address a growth in humankind’s needs
permissions § This could affect the Company’s for better living.
and restrictions credit-rating. § We believe that regulation in a core
across countries industry can streamline a largely
§ Other policies-related risks like
that could affect unorganised sector, widening the
environment protection etc.
trade flows. market size and opportunity.
§ APSEZ strategies are in line with
the national direction as far as
infrastructure investments are
concerned.
§ We developed a proactive in-house
team to detect changes in the
policy domain that could affect our
performance. APSEZ takes necessary
corrective actions based on policy-
related market intelligence.
Customer § Providing a committed service Stable § APSEZ did not compromise service
service Risk: level to customers in this quality during the pandemic.
Deliver a superior difficult time of pandemic, § Some additional benefits were provided
service level to where resource scarcity is to customers beyond contractual
customers, which common. obligations.
was promised to § Extending beyond the
§ At APSEZ, service was monitored
them. commitment to enhance for swift action to mitigate adverse
customer confidence and long- developments.
term trust.
M&A strategy § Failure in concluding Low § APSEZ has holistically analysed each
Risk: acquisitions could lead to M&A target with a set SOP format.
There is a financial, brand, reputation and § APSEZ developed a standard
premium on the other risks. framework for acquired assets,
need to develop which includes integration of various
a successful functions and operations.
Mergers &
Acquisitions
(M&A) strategy to
fulfil our growth
aspirations
through
inorganic growth
acquisitions.
Risks & their FY 2020-21 risk assessment & Risk External stimulus
description consequences movement/ and our strategic response
trends
Auction Risk: § This could stagger the Stable § The Company developed a robust
An inability Company’s growth rate. techno-commercial capabilities in
to submit the § This could affect the Company’s submitting winning bids.
lowest bids for ability to enhance revenue § The Company was selective about
port projects visibility and corporate bidding only for projects that promised
could translate predictability. an attractive profitability hurdle rate.
into a loss of
§ APSEZ’s demonstrated success can
prospective
be validated though its emergence as
revenue.
the largest Indian private sector port
Company in a little more than two
decades.
Land Availability § Availability of land banks across Medium § A centralised land management team
Risk: The proposed developmental sites. was developed to facilitate the land
business is § This could affect corporate acquisition process. This department
land-intensive; growth. helps procure land from various
inability to agencies and individuals.
§ Increased land cost could affect
acquire the right § The land team digitised the Adani
competitiveness.
land parcel (by group land records and developed
size, topography, dashboards to arrive at the real-time
location and status of APSEZ properties. This
cost) could enables quick decision making for
affect growth development projects.
prospects.
Project § Usually projects delay also incur Low § The Company coordinated across
management additional cost. resource assessment, land acquisition,
Risk: An inability § In case-to-case projects, this construction readiness, technical
to commission also leads to punitive charges/ studies, and supply chain management,
projects on fines. resulting in projects being implemented
schedule quicker than the sectorial benchmark.
§ Opportunity cost loss.
could affect § The Company drew on the Adani Group
the Company’s § This could stagger revenue
experience of having successfully
reputation and inflow.
implemented projects across 12 port
market standing. § This could increase project cost locations in India.
and affect long-term project
viability.
Receivables Risk: § A low revenue visibility could Low § The Company worked with credible
An inability to enhance the risk quotient of the customers resulting in timely cash
market services project. flows and virtually no payment
to credible § A higher risk project with an defaults.
customers could open revenue position could
affect receivables affect credit rating.
and revenues.
Debt repayment § This could affect the possibility Low § The Company worked with a prudently
Risk: of raising additional debt. safe buffer of (3x) more than the
The business § This could affect the Company’s adequately covered periodic payables
drew on long- credit and its prospects in to lenders.
term debt, mobilising debt at a low cost for § The Company (or Adani Group) did
any failure in onward expansion. not miss a single payment to lenders
repayment in nearly three decades of business
or servicing existence.
could affect its
§ The average tenure of the long-
prospects.
term debt on the Company’s books
increased; debt cost declined in the
last few years ending on March 31,
2021.
§ The Company was accorded IG rating,
the highest within India’s ports sector.
Currency Risk: § The quantum of forex debt to Medium § 31% of the Company’s long-term debt
The Company’s be repaid could increase beyond was in Indian currency as on March 31,
debt repayment the projected figure. 2021.
could be § Absence of exports could § The forex debt on the Company’s books
stretched by prevent the Company from was hedged completely by export
adverse currency passing on the currency income.
movements. depreciation impact.
Locational Risk: § APSEZ has a robust framework Low § The Company conducted extensive
The Company for evaluation of new business studies across port establishment
could invest in opportunity at any location. costs, cargo throughput possibilities
the wrong port All port site selection has been and hinterland development prospects
location, a risk done through this mechanism. to arrive at an informed investment
that is virtually § The Company could be affected decision.
impossible to by a decline in investment § APSEZ actively engaged with all
correct. payback that could affect relevant stakeholders for business
overall margins. sustainability.
§ The risk could affect the § All the Company’s investment decisions
Company’s brand and were based on a pre-tax 16% IRR hurdle
organisational morale. rate.
§ The robustness of the Company’s
decision-making capability was
reflected in each of the ports being
profitable and growing year-on-year.
Risks & their FY 2020-21 risk assessment & Risk External stimulus
description consequences movement/ and our strategic response
trends
Demand Risk: § Due to the pandemic, port High § APSEZ developed most of its port
There is a risk volumes witnessed an overall portfolio as a multi-commodity
that emerging reduction across India. managing locations, minimising risks
cargo demand § Energy-related commodities related to over dependence on a
from a port may especially thermal coal, crude specific cargo type.
not materialise and POL witnessed the highest § Container cargo is one of the highest
the way once decline in cargo volumes. growth commodities in India; APSEZ
forecasted. developed container terminals across
§ Erratic demand patterns can
affect port utilisation and the Indian coastline to address this
revenue predictability. opportunity.
§ APSEZ added growth commodities like
LNG and LPG in its basket at key ports,
in line with India’s aspiration to become
a gas-based economy.
§ Each of the Company’s port locations
was selected judiciously based on
a relatively under-explored demand
pattern that has only grown over time.
§ The Company selected to deal in a
cargo mix whose relevance is only
likely to increase in a growing and
prosperous India.
Projects Risks: § A delay in commissioning Low § APSEZ has learnt a lot from two
There could be could affect customer service, decades of diverse projects execution
a delay in the payback tenure and return experience. Learnings from the past
commissioning ratios. have been inculcated in decision
of greenfield making criteria for new projects. We
or brownfield developed a robust mechanism for
capacity. contractor selection, tender document
preparation, estimation, value
engineering and vendor development.
§ APSEZ developed an efficient project
delivery system without compromising
cost, time, quality and ESG standards.
§ The Company possesses one of the
most competent pools of execution
capabilities within India’s ports sector.
§ The team demonstrated a long-
standing record of outperformance
– commissioning projects in short
tenures and at costs lower than the
national benchmark.
People Risk: The § This could affect the Company’s Low § The Company is a preferred industry
Company could ability to leverage knowledge, employer.
fail to attract or affecting its brand, productivity § The Company’s talent retention is the
retain competent and profitability. highest within its sector.
professionals.
§ The Company offers unmatched
professional and personal growth
opportunities within its sector.
§ APSEZ believes in the continuous skill
development of onboarded employees;
initiatives were undertaken to create a
future ready organisation.
Environment § This could invite censure, Low § The Company progressed on ESG,
Risk: The criticism and the prospect aligning with international standards
Company may of some environmentally- and commitments (UNGC).
find it difficult to conscious shipping liners § The Company made extensive
match tightening moving their business to investments in moderating its carbon
global ESG competing ports. footprint and extending beyond
standards. § Compliance with national laws. regulatory requirements.
§ The Company expects to emerge as
the world’s first carbon-neutral ports
company by 2025.
§ APSEZ follows all the norms laid by
CPCB/SPCB and other agencies.
Safety Risk: The § Low safety could affect the Low § The Company embedded a leader-led
business of cargo Company’s respect. approach across the organisation.
management, § Human injury could affect § The Company invested in
projects and worker morale. mechanisation to enhance holistic
transportation safety.
could be affected
§ The Company deepened its safety
by low safety
orientation with an overarching safety
standards.
culture, training and SOP-based
processes.
Liquidity Risk: § This may affect the Company’s Low § The Company possesses adequate
The Company’s liquidity and gearing. liquidity to fund growth without
Balance Sheet § In turn, this may affect the compromising Balance Sheet integrity.
may be stretched Company’s credit rating and § The Company maintains a liquidity of
following the capacity to mobilise low around 3.0 (Net debt/ EBIDTA), which is
increasing cost resources for onward considered prudent and comfortable.
investment investment.
requirements.
Criticism Ongoing § India’s trade and foreign policy is focused on strengthening relationships
over alleged with ASEAN countries that matured as the ‘Look East Policy’. To expand
complicity its container terminal network in ASEAN, APSEZ established Adani
in Myanmar International Terminal Pte Ltd (AITPL) in Singapore in July 2017. Adani
military’s Yangon International Terminal Company Limited (AYITCL) was established
human rights in February 2019 for carrying out business in Myanmar, a 100% subsidiary
abuses of AITPL. AYITCL applied to Myanmar Investment Commission (MIC)
administered by the civilian government for approving an investment of
USD 290 million for the construction of a greenfield container terminal at a
Myanmar port, which was granted by MIC for 50 years. In May 2019, a Build
Operate and Transfer (BOT) contract for 50 years was signed for setting
up a container terminal; land was allotted on lease by Myanmar Economic
Corporation Limited (MEC) facilitated by MIC. As per the agreement, APSEZ
was to pay USD 90 million for land lease premium and USD 20,000 as
annual lease charge. All negotiations and payments to MEC were made in
advance of the imposition of sanctions against that entity. APSEZ’s last
such payment to MEC occurred in August 2020, six months prior to the
imposition of sanctions. Since then, there has been no transaction with MEC
and / or any other sanctioned entities.
§ The Company is in discussions with its US-based counsels (Morrison
Forester LLP). The engagement partner opined that:
1) The Company’s risk of exposure to the U.S. sanctions against Myanmar is
low;
2) The U.S. sanctions laws and regulations do not require compliance by
non-U.S. persons where there is no nexus with the United States;
3) The prohibitions do not apply retroactively to per-sanctions activity.
§ The Company has zero-tolerance policy to ensure that there is no
contravention of US and other sanctions. The risk management committee
of APSEZ, formed under the ERM framework, facilitates a periodic review of
risk areas, evaluates consequences, initiates a risk mitigation strategy and
implements corrective and preventive measures which are:
1) The Company to engage with the US counsels to ensure that it is
compliant with OFAC sanctions;
2) Considering the sanctions have been imposed by the Biden Government
and not by European Union or United Nations and the Company being a
144A issuer in the United States, APSEZ can proactively approach OFAC
to make sure that it is not in violation of the sanctions due to the recent
developments; and
3) In a scenario where Myanmar is classified as a sanctioned country under
the OFAC, or if OFAC opines that the Company is in violation of the current
sanctions, the Company plans to abandon the project and write-down its
investments in the project in full. The write-down will not materially affect
the Balance Sheet as it is equivalent to about 1.3% of the total assets of
APSEZ.
§ Our focus is the safety of our employees working on the Myanmar project;
no further payments have been made to MEC; we have been following
guidelines advised by the Indian embassy; we have been transparent in
disclosing our view and the status of the Myanmar project. The Company
is committed to the global cause of ensuring that the rights of none are
violated. The Company will take necessary action following guidance from
OFAC.
Carmichael Closed § The Carmichael Project is not owned or operated by APSEZ. It is owned
Mine expansion and operated by Adani Mining Pty Ltd. and trading as Bravus Mining and
project Resources owned by Adani Enterprises Limited, which is listed on the BSE
(formerly Bombay stock exchange).
Divestment Closed § BRCPL was incorporated in December 2019 with the parent entity being
of Bowen Bowen Rail Operation Pte. Ltd. in Singapore. The principal activity of this
Rail Company entity is providing rail logistics services in Australia. As a part of the annual
Pty Limited ESG performance review by the Management for FY 2019-20 (under the
(BRCPL) owing aegis of the Sustainability & CSR Committee) it was decided that APSEZ will
to APSEZ’s divest its investments in BRCPL to fulfil the Carbon Neutral Commitments.
Carbon Neutral Accordingly, all contractual documentation and the regulatory approval
Commitment process were initiated for the said divestment. APSEZ, during January
2021, formally communicated to investors and rating agencies regarding
the divestment. S&P Global included in its press release (issued for January
2021 USD bond issuance) that APSEZ will divest BRCPL. In March 2021,
APSEZ executed the Share Purchase Agreement with Adani Global Pte.
Limited (subsidiary of Adani Enterprises Limited) for the sale of investment
in BRCPL.
§ The transaction is awaiting regulatory approval by Foreign Investment
Review Board of Australia. In the interim, APSEZ will reflect the investment
as ‘held for sale’ in its books of accounts.
Protest by Ongoing § Considering the potential, Marine Infrastructure Developer Pvt. Ltd. (MIDPL)
local NGOs applied for its Revised Master Plan development of Kattupalli Port to MoEF
and fisherfolk & CC on 15.11.2018 for getting the Terms of Reference to carry out an EIA
against the study and seek Environment & CRZ Clearance.
Kattupalli port
§ Based on representations received by MoEF & CC and submissions from
expansion
MIDPL, the sub-committee appointed by Expert Appraisal Committee (EAC)
visited Kattupalli Port, including the areas of concern, heard the concerns of
local residents on 3 and June 04, 2019 and submitted their report.
§ After a careful evaluation, EAC recommended ToR and the same was granted
by MoEF & CC vide letter dated 15.10.2020.
§ ToR, inclusive of additional studies in the wake of concern raised by various
stakeholders and representations received, were also submitted to MIDPL to
incorporate/ address as a part of the EIA report.
§ Draft EIA is prepared and submitted to TNPCB for conducting Public Hearing
(PH) as per EIA Notification.
§ Public hearing for Kattupalli port expansion was scheduled on 22.01.2021;
however as per communication received from District Collector in the wake
of concerns associated with ongoing COVID-19, same has been postponed.
All developmental activities proposed will be carried out only after obtaining
required permission from the concerned authorities.
The platform
Lower Credible
Environment Safe work
carbon safety Sustainable
compliance practices
footprint certifications supply chain
Protecting The Environment seek to become a world leader in and update the risks register,
APSEZ promotes environmental the ports business by 2030. We including sustainability risks, each
management philosophy and encourage practices that improve quarter and immediately report
principles while pursuing a the environmental and social unanticipated risks.
diverse range of environmental impact of our operations. We not
Environmental risks are
initiatives to contribute to a only prioritise long-term benefits
mapped considering different
sustainable future. We endeavour of all stakeholders but also
aspects - risks arising due to
to address our ESG responsibilities support business growth through
non-compliances with legal
holistically by mitigating risks the avoidance of environmental
requirements, risks related to
and improving our environmental degradation.
achieving sustainability targets,
performance. Environmental Risk Management risks due to deviation from
We developed a culture of and Priorities the Company’s commitments.
promoting environmental Climate change and biodiversity Accordingly, priorities are set
stewardship, encompassing the are part of our established out on an annual basis keeping
consumption of finite natural Enterprise Risk Management the vision and commitments in
resources and minimisation of framework. Our framework mind. Based on the assessment
pollution and ecosystem effects facilitates the systematic in FY 2019-20, climate change,
in the vicinity of our operational capture of quantifiable and land use and marine biodiversity
sites. non-quantifiable risks over topped our list of the most severe
small, medium or long time environmental risks, which could
Our vision is to be a leader in horizons. All business units are impact our reputation, market
businesses that enrich lives and required to regularly monitor proposition and financial stability.
contribute to nation building. We
FY 2022-23 FY 2023-24
FY 2015-16
Energy Audit Expanding Energy and Emission
GHG Accounting
Energy Benchmarking Study Policy to Suppliers, Customers and
(Scope 1 & 2) for 2 ports
Employees
Green Procurement Policy
FY 2016-17 FY 2024-25
FY 2021-22
Developed Sustainability
Set SBTi-validated target to Carbon Neutral Company
Information Management System
reduce absolute scope 1, 2 and 3
GHG accounting (scope 1 & 2)
emission
for 6 ports
5.5 MW of RE Installation Internal Carbon Pricing
FY 2017-18 FY 2020-21
Energy Emission Policy
GHG Accounting (Scope 1&2) for
all Ports “B” in CDP Climate Change
Committed to SBTi 1.50C
Created GHG Baseline
Climate Change Vulnerability
7.9 MW of RE Installation Assessment Study
20 MW of RE Installations
FY 2018-19 FY 2019-20
GHG accounting (Scope 1,2 & 3)
Maiden attempt for CDP for all ports and logistics
- Climate Change
Validated GHG emission against
GHG accounting (Scope 1&2) ISO 14064
for all Ports ‘C’ in CDP Climate Change
7.9 MW of RE Installation 19MW of RE Installation
Climate performance has been electricity use reported 2.2% of scope 1 emissions (i.e,
Given the decline in cargo as scope 2 emissions in the 2,443 tCO2e). APSEZ recognises
handling activities at our ports charts. This frames our carbon the importance of addressing
due to COVID-19, APSEZ achieved mitigation strategy to focus on scope 3 emissions, which
carbon emissions intensity reducing scope 2 emissions by indicates the level of exposure
reduction of 35% compared to incorporating renewable power to climate risks in our upstream
the baseline year of FY 2015- sources. We are focusing on and downstream supply chains.
16. Compared to FY 2019-20, reducing scope 1 emissions We monitor and report scope 3
absolute carbon emissions in by electrifying our operations. emissions to enhance our carbon
FY 2020-21 were 3,07,670 tCO2e, In the reporting period, we reduction efforts by identifying
9% higher as Krishnapatnam port avoided emissions of 29,359 large emission sources along our
was included in the reporting tCO2e through renewable energy value chain. Details can be found
boundary. Historically for APSEZ, installations. Emissions due to under the ‘Sustainable Supply
the largest source of emissions refrigerants used were around Chain’ section.
32.5 3,07,670
2,53,478 2,76,706 2,82,460
2,54,702 2,43,505
26.7 22.5
20.6 21.2
19.7
1,58,941
1,74,605
1,64,215 1,89,555 1,96,160
1,59,365
1,02,101 1,11,510
89,263 92,905
95,761 84,140
Note: In the past years, we observed few typographical errors in the emissions figures which have
been rectified in this report. This year, Krishnapatnam port has been included in the reporting
boundary.
*Scope 1 includes direct emissions from fuel used in port operations in equipment like cranes, excavators,
dozers, reach stackers and fork lifts etc. and in allied activities like harbouring, dredging and in DG sets and
Company vehicles.
• Scope 2 includes indirect emissions from purchased electricity consumed by the operational activities
R-32 8
Business travel 1,356 227
Note: In FY 2019-20, the scope 3 emission under the investment category was
not included, which has been included in the current year report. In FY 2020-21,
downstream transportation and distribution as well as downstream leased asset
categories were included with T&D loss-related emissions in fuel and the energy-
related activities category.
Employee commuting
15 14
9 Waste generated in operations
2 1 0 0 Business travel
Energy reduction initiatives liters of diesel, which in turn, the remaining ones target
APSEZ has taken measures to resulted in a saving of more than other improvements, indirectly
reduce energy use including 4,700tCO2e and net saving of contributing towards a lower
process improvements 2,845 tCO2e. Since 2018, we have energy consumption in the port
and integration which may been engaging with customers area. For example, fully automated
significantly reduce maintenance in protecting the environment, terminals can contribute towards
costs. The implementation of institutionalised through a pact optimisation of container
most new energy-saving initiatives signed with each party. We flows, resulting in reduced
was postponed in FY 2020- advocated for the split liability energy consumption and lower
21 due to COVID-19. However, in case of any environmental costs, while the lifetime of the
energy conservation initiatives damage/ impact that includes equipment is extended, allowing
undertaken across sites resulted spills, energy overuse, waste for a better preservation of
in a saving of 2.3 MU electric disposal etc. As a part of the resources.
energy and more than 1 million engagement, APSEZ initiated
At the Mundra port, we are
pilot services that enabled vessel
rationalising truck arrivals that
owners to efficiently dispose their
Energy saving approach generate multiple benefits.
waste and use onshore power
Fuel shift Besides reducing the idle
systems.
time of trucks waiting outside
Benchmarking &
operational efficiency Our ports adopted multiple the terminal’s gates, truck
technological and operational appointment systems maximise
Technology Adoption
measures for improving energy the utilisation of container
Process changes and Idle efficiency. While some measures yard equipment, reducing the
energy reduction are directly oriented towards turnaround time of trucks with
improving energy efficiency, associated energy savings.
Accelerating renewables impact in a declining use of fossil In FY 2020-21, the total energy
adoption fuels over the medium to long- consumed was 24,27,524 GJ,
term. Though the development is which is 16% more than FY 2019-
The adoption of renewable energy
capital-intensive, diversification 20 as the Krishnapatnam port
is an integral strategic decision
towards clean energy is our was included in the reporting
in our attempt to decarbonise
strategy to achieve our climate boundary. Our current targets aim
our operations and mitigate
change commitment. As the to reduce energy use intensity by
impacts of transition risks.
Government’s policy amendments 50% from 2016 levels by 2025. We
Renewable energy consumed by
come into force, we anticipate a are on track to achieve our target,
APSEZ attributes to 15% of grid
reduction in costs, which would with 33% reduction. In FY 2020-
energy and 5.3% of total energy
make our investments cost- 21, the energy intensity of our
consumed by our operations in
effective. operations was 167 GJ/revenue in
FY 2020-21. At the beginning
crores.
of FY 2015-16, our renewable Energy performance
portfolio was nil, which expanded
to 20MW and procuring 15MW As a part of our environment and
of wind energy through PPA energy management systems,
at the Krishnapatnam port. We APSEZ has been tracking
5
invested more than H100 crore in and reporting environmental
renewable energy installations, performance against energy
reducing emissions up to targets since 2016. We regularly
review energy reduction and Renewables as a %
29,359 tCO2e in FY 2020-21 and
67,094 tCO2e over the years. efficiency plans across all of the total energy
APSEZ expects to make parallel our operations and introduce consumption
investments in renewable energy initiatives where improvement has
sources with a potential positive been identified.
Energy performance
1,28,892
53,697 66,471
250
1,745 43,308
8,61,189
7,66,557 8,32,193 24,27,524
6,97,791 6,99,652 175 167
194
7,20,946
151 14,37,443
12,62,390 13,27,025 153
11,15,093 11,22,361
19,60,181 18,37,784 18,65,321 21,47,279 21,00,722
12,02,058
Note: In the past years, we observed few typographical errors in the energy consumption figures which have
been rectified in this report. This year, Krishnapatnam port has been included in the reporting boundary.
*Fuel comprises of petrol, LPG, PNG, HSD, FO, HFO, Acetylene and Jet kerosene
HSD 10,55,344
Petrol 1,791
59.2
60.7
61.8
64.4
57.2
60.2
FO 2
HFO 3,55,310
LPG 1,499
39.2
35.6
35.7
39.6
37.5
35.5
Acetylene 161
PNG 602
0.0
5.3
2.5
2.3
3.2
0.1
Activity
Converting Rubber Tyre Gantry Cranes (RTG) from diesel mode to electrical power
Objective
To reduce GHG emission by conversion of entire RTG fleet to electric power
Water performance
0.63
440
92905 650
528
568 561
581
3,544
4,697 3,658 3,952 4,126 4,402
3,474
3,435 3,649 3,930
3,372
Note: In FY 2020-21, rainwater harvested was included in water withdrawal. The Krishnapatnam port
was included in the reporting boundary.
Ground
water 6%
Third party
private utility
10%
Sea water
27%
Shared
resource 33%
Third
party
public
utility 17%
FY 2020-21
Non-shared
resource 67%
Rainwater
7%
Note: Surface water is taken from source, which is at the confluence of the river and sea, marked by high
salinity and not being potable.
Integrated Annual Report 2020-21 | 145
Bu Wise Water Consumption Share (%)
§ APSEZ focuses on the effective management of
Ports water abstraction, usage and discharge across every
99 port location and during all lifecycle stages. The
environment team, along with representatives of
engineering operations at each site, are responsible
for executing the strategy and monitoring the
performance. Ports such as Dahej, Hazira and Mundra,
which lie in high water stressed regions, strategically
use treated wastewater of other industries to minimise
Dredging Harbouring Logistics Others
a dependence on local sources.
0 0 1 0
Water conservation strategies are adopted, and the Recognising that water
initiatives site’s water management plan is conservation is a shared
built around reducing a reliance responsibility, APSEZ engages
APSEZ audits its water
on freshwater and reducing water with suppliers and vendors
management process annually.
use. through meetings and quarterly
Monthly water consumption by
reviews. These initiatives aim
our key business units is tracked At our various sites, sourcing of
to promote water conservation
to detect spikes in water use. To treated wastewater from industry
practices that complement
reduce its reliance on freshwater, is also being explored in addition
APSEZ’s water management
APSEZ uses wastewater from to conventional source. Rainwater
strategy.
various sources for operational harvesting measures are being
activities that do not require installed at the sites to mitigate
potable water. Localised water the risk of water availability.
Use of wastewater Mundra Use of 261ML of wastewater equivalent to 15% of the total
from other industries water used
& sources
Hazira More than 80% (628 ML) of water requirement were met
through treated wastewater of KRIBHCO
Desalination of sea Mundra More than 70% (1159 ML) of water requirement were fulfilled
water by desalinated sea water
Water performance The water consumption per to be used in operations like the
Recognising that holistic water revenue (in H crore) consistently cleaning of vehicles and tanks as
management enhances the reduced by 55% from the base well as dust suppression where
long-term resilience of our year of 2016. water quality is not of a major
business, we implemented water concern. Quality water is only
conservation initiatives and
Initiatives related to water needed in critical operations and
tracked our water performance risk management domestic use.
since 2016. APSEZ achieved the Management of water by
“B” rating in CDP water security in
Rainwater harvesting
source: We practice rainwater harvesting
its first disclosure, an affirmation
of APSEZ’s progress towards Effective conservation of water in sites in which we operate, the
institutionalising robust water can only be achieved by better preserved water used for dust
management strategy. water management practices. suppression and horticulture.
Recognising this fact, the most Additionally, rainwater harvesting
Due to decreased activities important developmental activity contributes to groundwater
caused by COVID-19, there was a is planning, development and recharge at a few of our sites.
significant fall in water intensity management of existing resources
for our port operations in for effective irrigation and Community watershed
FY 2020-21 compared to sustainable production. To that management
FY 2019-20. Absolute water end, we adopted desalination as a
consumption increased by 4% technique where excess salts can We hope to reduce water stress
in FY 2020-21 to 4,126 ML from be removed from sea or brackish in local communities by providing
3,952 ML in in FY 2019-20 as water, converting it into potable drinking water and other essential
Krishnapatnam port was included or usable water. water needs, building long-
in the reporting boundary. term community resilience to
Water is a shared resource and water stress through watershed
In FY 2020-21, APSEZ finds competing uses by various management practices. We
cumulatively withdrew 4,402 ML users. The catchments from operate in water-stressed areas
of water, 12% more than in the where we source water, fulfil where the situation is expected to
previous year. Nearly 67% of the the local community’s needs for deteriorate. We are also involved
water was sourced from non- water, making them integral to in the construction of check
shared sources out of which 41% our water risk assessments. We dams, revival of village ponds and
comprised desalinated sea water. derive untreated wastewater borewell recharge.
The fresh water (33%) withdrawal from these communities into our
accounted for 1,432 ML, sewage treatment plants, along
comprising water from municipal with treated industrial wastewater
and groundwater sources.
Activity
Stakeholder engagement and infrastructure development to consume treated effluents
Objective
To reduce freshwater footprint at Hazira port in a cost-effective manner
Outcomes
We made a capital expenditure
of H1200 lakh but do not
incur major operational costs
except for the cost of water
paid to KRIBHCO. This helped
us withdraw quality water
at a lower capex and opex
compared to desalination while
reducing pressure on freshwater
resources. In FY 2020-21, 628
ML water was withdrawal from
this source, which is 81% of the
water requirements of Hazira.
Waste management strategy Waste from ships (used oil, solid to recyclers. Non-recyclable and
and performance waste etc.) and waste generated non-recoverable dry waste (loose
from our port-related activities refused derived fuel) are sent to
Marine pollution is one of the
(hazardous waste, lead acid cement plants for co-processing.
biggest threats to coastal
batteries waste, bio-medical Cement plants utilise waste as
ecosystems, partly from waste
waste, e-waste, non-hazardous alternative fuel after processing.
dumps in oceans and seas.
waste, construction debris) are STP sludge is used as soil
These wastes include dredged
being managed as per applicable conditioner/manure. As a part of
materials, garbage and oily
rules. Ports also facilitate ships to the 5R’s principle, APSEZ achieved
mixtures discharged from ships,
dispose hazardous waste directly its goal of single-use plastic-free
wastes from cargo operations and
to authorised vendors. port across nine sites.
discharges from municipal and
waterfront industry activities. Hazardous waste and bio-medical In FY 2020-21, the Company
waste are being disposed to disposed 768.6 MT of hazardous
By continuing to stay responsible,
authorised facilities including waste, 6,062.7 MT of non-
efficient and innovative, APSEZ
incineration facility as per valid hazardous waste, 28.8 MT of lead
is joining a growing wave of
permissions obtained from the acid batteries waste, 5.4 MT of
businesses shifting towards
State Pollution Control Board. biomedical waste and 19.3 MT of
sustainable waste management
E-waste and lead acid batteries e- waste. Additionally, 4,497 MT of
systems. Waste collection and
wastes are sent to authorised metal scrap and 33 kL of used oil
segregation systems were
recyclers in line with E-Waste were sold for onward recycling.
installed from the waterfront to
Management Rules, 2016 and
the gate, enabling systematic APSEZ targets to reduce waste
Batteries Waste Management
waste handling. Hazardous intensity by 30% (from 2016
Rules, 2016.
waste (chemicals, sludge, oil levels) for our ports business. As
etc.) collected from incoming The APSEZ philosophy is to a part of our holistic environment
vessels was channelised through choose the preferred option management system, we
a separate line, which is handed for sustainable end products continually review our waste
over to authorised third party disposal as per the waste minimisation and recycling
dealers. Under the International management hierarchy i.e., initiatives for all our operations.
Maritime Organisation’s MARPOL minimisation, reuse/ recycling, co- Each business unit maintains a
73/78 convention, vessels that processing, incineration, landfill receptacle and strives to become
call at our port deliver their waste particularly for hazardous waste zero-waste:
safely to our facility at a nominal management. APSEZ strives to
§ Zero Unauthorised Waste
charge, in alignment with the make improvements in disposal
methodologies from the least Disposal (ZUWD)
‘polluter pays’ principle.
preferred to most preferred § Zero Waste to Landfill (ZWL)
We have a legislative mandate to
options (co-processing over § Zero Waste Incineration (ZWI)
protect the environment within
incineration and re-use over
our jurisdiction, developing § Zero Effluent Discharge (ZED)
recycling).
environmental programmes
and initiatives around waste The APSEZ initiative of ‘Zero
recycling and reuse. We focus our Waste to Landfill’ for non-
stewardship efforts on recycling hazardous waste is based on
waste as much as possible at the the 5 R’s principle (Reduce,
source itself. We intend to work Reuse, Reprocess, Recycle and
collaboratively with organisations Recover) and achieved zero waste
within our SEZ to monitor waste- allocated to landfills across three
related issues and develop sites. Bio-degradable waste is
solutions that minimise impacts recycled and used as manure.
on areas outside our formal Non-biodegradable waste such as
sphere of control. paper, plastic, scrap etc. are sent
BIOGAS PLANT
Biogas production is an established technology for utilising organic waste. The biogas plants set up
in Mundra and Kattupalli serve as a foundation of our circular economy commitment, focusing on
nutrient recycling and reducing greenhouse gas emissions.
Ports location: Mundra and Kattupalli
Biogas plant
Total capacity (m3/Day) 96
Total processed food waste in FY 2020-21 (MT) 180
Total generated LPG in FY 2020-21 (m3) 647
Vermicomposting
Vermicomposting is an effective approach for low-cost recycling and an eco-biotechnological
waste management process in which earthworms collaborate with micro-organisms to convert
biodegradable wastes, such as processed food waste and horticultural litter, into organic manure.
Ports location: Dahej
Vermi-composting
Total capacity (MT/Year) 120
Total generated manure in FY 2020-21 (MT) 153 (Vermi-composting 120MT and remaining
organic waste converted in to green manure)
§ The digitisation of our communications, making all reports / publications available online to reduce the need for
print copies
§ Replacing all single use plastic items from offices
§ Encouraging employees through newsletters and initiatives to refrain from waste generation and promote
recycling
Waste disposal
0.47
0.56 0.57
0.42
Waste performance
Waste management practices (%)
In FY 2020-21, total waste disposal increased
20% over FY 2019-20. 95% waste was
handled using the 5R principles, with 13%,
23%, 20% and 39% of waste being reused,
reprocessed, recycled and recovered
respectively. Some 2% of the total waste
Recovery
was incinerated and 3% of the waste was
39
sent for landfilling. The performance was
impacted due to the incorporation of the Reprocess
23 Recycle
newly acquired Krishnapatnam port. We will Reuse
20
implement APSEZ’s best practices of waste 13
management at Krishnapatnam and other Landfill Incineration
acquired ports. 3 2
Zero
Zero waste to
unauthorised landfill
waste disposal
Our commitment
Our commitment to conserve natural
towards positive legal resources
compliance
ZERO
WASTE
COMPANY
Zero Zero
effluents waste incine
discharge ration
Our commitment to Our commitment
treat all wastewater to stop destroying
streams and utilise resources
them in our activities
Land, water and biodiversity- may lead to an imbalance in bodies, species and habitat
related impact management intertidal and shallow habitats with special status, terrestrial
leading to negative impacts on life resources, wetlands, aquatic
Our operations of port
below water. resources, archaeological, physical
construction, development and
and cultural heritage resources,
management, including storage Our goal is to minimise the
current use of lands and resources
and logistics, may have negative severity and magnitude of these
for traditional purposes, and
impacts on biodiversity and impacts. As major infrastructure
accidents and malfunctions.
land use. While these impacts developers, we are required to
We do not authorise or allow a
cannot be avoided, they can apply for permits for all proposed
proposed project to proceed if
be minimised to prevent loss physical activities. Through
it is likely to result in significant
of marine and coastal ecology. our Environmental Impact
adverse environmental effects. If
The major source of these Assessment process, we view
a project is approved, the permit
adverse effects depend on the project management from a
includes conditions designed
location and nature of operations lifecycle perspective to determine
to avoid or mitigate potential
– varying from degradation, potential environmental impacts.
impacts whose reporting is
contamination fragmentation We consider the following
done half-yearly to the relevant
to loss of ecosystems and their environmental components as
authorities. Results of our
services during construction part of an informed decision
FY 2020-21 permits and
and operational phase. Further, process: noise, sediments, ground
compliances can be obtained from
successive coastal urbanisation water, surface water and water
the website www.adaniports.com
We took steps to protect our terrestrial ecosystem, planting 17.15 lakh saplings across 965 hectares. We
preserved 87+ species with terrestrial biodiversity. The Mundra coast, being highly saline, survival of plants
was a challenge. We installed Israel’s high-tech mechanised sprinkler and underground drip-irrigation system
to deliver water directly to the roots to minimise water loss through evaporation. This system reduced
irrigation water use by up to 80%. We utilised 650ML treated waste water at our facilities for horticulture and
treated sludge of STP and other processed organic waste as manure.
Objective
To protect and conserve the mangrove cover and its associated ecosystem to strengthen its natural
defence mechanism against climate change.
Methodology
Data Collection > Mathematical Modelling > Understanding Impacts > Conservation Action Plan
Bathymetry
Step 2 Step 4 Tide and currents Step 6
Mangrove survey
survey of (health and area data collection (incl.
creeks demarcation) residence time of
tidal water)
Approximately
2.5 years
2.5 years
Approximately
5 years
5 years
Sea turtles travelled the seas for rookery was discovered in 1994 for 709.50 km2. The Gahirmatha
100 million years, a fundamental and is around 5 kms of the beach beach supports the natal nesting
link in marine ecosystems that located immediately north of beach and largest known nesting
help maintain the health of sea the Rushikulya river mouth from beach of Olive Ridley sea turtles
grass beds and coral reefs that Purunabandha to Kantiagada in the world. The south beach is
benefit commercially valuable village. Rushikulya is situated the only nesting beach where the
species such as shrimp, lobster in Chatrapur, Ganjam district of arribada (mass arrival) has been
and tuna. The breeding season Odisha. Lakhs of endangered taking place since 2009.
for the Olive Ridley sea turtle in Olive Ridley turtles flocked to the
Protection status: The Olive
Odisha extends from November to Rushikulya river mouth for annual
Ridley sea turtle has found place
May during which mating, eggs- mass nesting.
in Schedule - I of Indian Wildlife
laying and hatching take place.
Gahirmatha: Gahirmatha Marine (Protection) Act, 1972 (amended
Wildlife Sanctuary is located at 1991). All the species of sea turtles
Nesting locations:
the mouth of the River Maipura in the coastal water of Odisha are
Devi Rookery: Devi Rookery was between the Dharma River and listed as ‘vulnerable’ as per IUCN
discovered in 1981 at the mouth Paradeep on the eastern boundary Red Data Book. The sea turtles
of the River Devi, along the of Bhitarkanika Wildlife Sanctuary are protected under the ‘Migratory
central Orissa coast. Following along the northern Odisha coast. Species Convention’ and CITES
the discovery of this site, mass The total area of the sanctuary (Convention of International Trade
nesting was reported only twice is 1435 km2, which includes 1408 on Wildlife Flora and Fauna).
and in recent years, only sporadic km2 of water body and 27.0 km2 India is a signatory nation to all
nesting occurs. of land mass, including reserve these conventions. The ‘homing’
Rushikulya River mouth: The forests, mud flats and accreted characteristics of the Ridley sea
southern-most site along the sand bars. The core area of the turtles make them more prone to
Odisha coast, the Rushikulya sanctuary consists of 725.50 km2 mass casualty.
and the buffer zone accounts
Turtle nesting can be seen at two prominent locations; at Gahirmatha and at the Rushikulya river mouth. In
the year when nesting did not happen at Gahirmatha, nesting was observed in Rashikulya river mouth.
Dr. H. R. Bustard, an
international expert on turtle
sand crocodile and their
population ecology, said it
is perfectly natural for Olive
Ridley turtles to miss mass
nesting.”The word” failure ‘for
their’ non-appearance’ is a
misnomer. We do not know why
nesting does not occur every
year, but this is not a cause for
concern.’ According to annual
census figures of 38 years,
there was no mass nesting at
Gahirmatha in 1981-82, 1984-
85, 1987-88, 1996-97, 1997-98
(two years in succession), 2001-
02 and 2007-08.
Dr. Priyambada Mohanty
Hejmadi, a renowned zoologist
and a member of High-Powered
Committee, in a fitting rebuff
to all those who raise concerns
over Olive Ridley protection
measures and hurl accusations
against the State government
for not taking adequate steps
during the nesting and hatching
season, said the Ridleys have
snubbed such people by turning
out in large numbers.
Dhamra port and stakeholder dead turtles and to monitor the Dredging protocol
alignments threats to the population. § Specially designed ‘dark sky
§ The Chief Secretary of § Illumination of lights near the friendly’ lights in the port and
Odisha chairs a High Powered nesting beach has been stopped township
Committee annual review or reduced. Use of TED (turtle § Glare not transmitted towards
meeting that is attended by excluder device) during fishing the sea and movement of turtles
Principal Secretary Forest and trawling operations are in their congregation area
& Environment, Principal used. There is a ban on fishing § Collaborate with the
Chief Conservator of Forest, and trawler movements near government during mating,
Chief Wildlife Warden, Head the shore during the nesting congregation, nesting and
Coast Guard Odisha Zone season. hatching
and Dhamra port, a part of
§ The Dhamra port submitted § Providing trawlers to the Forest
the comprehensive high level
a proposal for establishing Department for patrols
strategy initiative for the
Olive Ridley Turtle & Estuarine § Demarcated Gahirmatha Marine
protection of the endangered
Crocodile Research Center at Sanctuary by buoys in 2014
Olive Ridley species.
Dhamra in partnership with
§ Committed to create a corpus of
§ Awareness and conservation Government of Odisha (GoO);
H30 crores
programmes for the local the GoO is examining the
residents. proposal.
§ Offshore patrolling by different Turtle conservation
law enforcing agencies
like coast guards of Indian
measures
Navy, Defense and Customs § The port area and its navigation
department of the central and channel are outside the turtle
state governments. Regular congregation area
surveys are conducted to § Compliant with IUCN
assess the number of nesting, recommendations - Lighting &
Zero effluents discharge investigation, we have a goal that plants, is routed into the system
Oil-laden hazardous effluents no effluent leaves our premises and utilised for activities that do
have been identified for treated or untreated. Adhering not need fresh water. Routinely,
their detrimental impact on to our policy commitment, treated effluents with a TDS
the ecosystem. Under the we established zero effluent below <2100 mg/L are used for
Environment Management Plan discharge process at all our port horticulture purposes and dust
that ensures timely monitoring, locations. The system ensures suppression at our dry cargo
measurement and incident that the effluent, which is treated handling ports.
at our indigenous treatment
Case Description
Challenging The EC and CRZ clearance granted to Adani Petronet Dahej Port Private
Environmental and Limited for phase - III development by MoEF&CC on October 14, 2016 was
Coastal Regulation Zone challenged in National Green Tribunal - Pune bench by The Conservation
Clearance granted to Action Trust (CAT), an environmental NGO.
Dahej Port, 2016
Matter is pending on account of all respondent parties not filing replies and
non-availability/ constitution of the NGT, Pune bench.
However, NGT has not put any hold on the construction activities and same
are ongoing as per requirements.
The matter is pending in the Court.
Claim for the presence A Public Interest Litigation was filed before the Hon’ble Gujarat High Court
of Sand dunes in Mundra by Mr. Pravinsingh Bhurubha Chauhan alleging, presence of sand dunes in
Port project area, 2016 the APSEZ project area which was dismissed by the Hon’ble Gujarat High
Court.
The petitioner then filed a special leave to appeal before the Hon’ble
Supreme Court of India, challenging the Hon’ble Gujarat High Court’s order.
Sunita Narayan committee was appointed by the Hon’ble Supreme Court
to study the area. Report was prepared by the Committee and submitted
to Hon’ble Supreme Court. Based on the findings of the report, the subject
land is not classified as Sand dune and therefore allegations are not
correct.
Matter is pending in the Court.
Allegation of mangrove The writ petition was filled by Kheti Vikas Seva Trust alleging mangrove
destruction during the destruction during Mundra Port construction in Gujarat High Court which
Mundra Port construction, was dismissed by the Court.
2011
The petitioner then filled the appeal in the Hon’ble Supreme Court against
the Gujarat High Court’s order which was again dismissed by the Hon’ble
Supreme Court of India.
However, an application was filed by the petitioner alleging non-compliance
of an order of the Gujarat HC dated July, 2011 prohibiting the cutting of
mangroves and other forests during the pendency of the petition without
permission of the state forest and environment department.
The matter is still pending.
Compliance of MoEF&CC’s A Special Civil Application was filed by Jusab Kasam Manjaliya at the High
order with 10 direction by Court of Gujarat to get the status towards implementation of MoEF&CC
APSEZ Mundra, 2019 order dated 18 Sep, 2015 and the consequential measure taken towards
protection and prevention of environment.
As per the direction of Hon’ble Gujarat High Court, MoEF&CC, RO Bhopal
conducted the site visit of Mundra Port and submitted the inspection
report to the MoEF&CC.
After that, no hearing has been conducted, hence the matter is pending in
Court.
Protection of life and A Writ Petition was filed by Javed Hasan Manjothi pertaining to protection
livelihood of fishermen of life and livelihood of fishermen of Vandi, Tuna in Gujarat High Court.
of Vandi near Tuna Port,
Earlier the notice was issued to only Chairman - GCZMA.
2018
Notice to AKBTPL was issued vide Court order dated February 06, 2020.
The matter is still pending in Court.
Challenging the consent A Writ Petition was filed in the High Court Judicature of Bombay, Goa
granted by the GSPCB to Bench by residents of Vasco along with NGOs against GSPCB and others,
Mormugao Terminal for objecting to increase in handling limit of coal at Goa terminal and
handling of coal, 2018 transportation of coal from Vasco city causing air pollution.
The matter is pending in Court and no adverse order is passed.
The project is in operation with valid consent to operate issued by Goa
State Pollution Control Board and all environmental safe guards in place.
Selection of venue to A Writ Petition was filed at Hon’ble Madras High Court regarding finalising
conduct Public Hearing the venue for conducting Public Hearing by Tamil Nadu State Pollution
for Kattupalli Expansion Control Board for Kattupalli Expansion Project.
Project, 2020
The matter is pending in Court.
However, all the due processes have been followed in line to EIA
Notification, 2006 as amended including finalisation of venue.
Public Hearing has been postponed by TNSPCB on account of concern
related to COVID-19 Pandemic.
Intellectual Capital Container Tracking System Lower turnaround time Faster operations
Automated cargo tracking Service portal One-stop service
Ease of doing business
Single-window service Systematic data recording Systematic data
Data driven analytics and monitoring management and Decision making
Cost tracking tool presentation
Customer trust
Real-time cost estimation
Over the years, the Company sophisticated IT tools (APMS, SAP (Vessel Cargo Tracking)
implemented various initiatives: and Mercury, amongst others) empowered customers to monitor
its ‘smart port’ initiative leverages enhanced customer service port-based vessel and cargo
loT devices; data analytics were and real-time cargo value-chain status.
used to deliver a seamless multi- visibility. Besides, the Company’s
modal convenience; its use of web-based mobile application
Upstream customers
1%
Satisfaction 73% 26%
Downstream
customers Satisfaction score (out of 5)
We engaged with
4.21
customers, who availed
4.19
4.19
of our cargo handling,
logistics, dredging and
4.17
4.16
4.09
of our customers were
pleased with APSEZ’s
overall services during the
reporting period.
Berthing capacity for vessels Remotely operated robotic Largest automated neem-
of the future: We developed e-RTG: We use cranes in our oil urea coating facility: We
the capability to handle ports that can be operated developed a facility to handle
vessels that are still at the from any part of the world, 35,000 MT of coated urea per
blueprint stage among shop enhancing our technology day, capable of filling 11 rakes
designers - some longer than quotient and making our of 52 wagons each, in line
the height of the Eiffel Tower infrastructure excitingly with the national priority.
– enhancing the future- futuristic.
proofing of our ports.
First floating Ro-Ro terminal Zero vessel-waste dump: Largest dredging capability:
in India: We launched India’s We developed the capability We developed the largest
first Ro-Ro terminal that can to completely (100%) treat dredging capacity in India
be operated 24x7 even with a and recycle solid and liquid equivalent of 80 times
6m variation in the sea level, waste generated by incoming Vatican City by size.
enhancing customer service. vessels.
Berthing aid system: We created a laser sensor system to provide graphical information using
customised software (developed at a quarter of the prevailing cost) to provide information (berthing
velocity, distance and approach angle) and maintain low berthing velocity (less than 0.1 m/s) to
avoid collision
Cargo SMS-
status based
report VCN
status
Weather Vessel
reports declaration
on SMS and auto
PAA
Vessel Auto
closure alerts on
and NOC compliance
Reflecting our
The Supplier Code of Conduct § Health and safety
commitment to
provides comprehensive
use resources more § Legal compliance
guiding principles for our
efficiently, and respect
vendors and suppliers to comply § Human rights
health and safety in our
with APSEZ’s expectations of
supply chain, our Adani § Equal opportunity
ethical standards, covering
Group’s Responsible
following areas: § Working hours & wages
Procurement Guidelines
set out requirements for § Bribery & corruption § Human trafficking
the selection of vendors
§ Environmental sustainability § Freedom of association
and suppliers across
business operations. § Conflicts of interest § Ethical practices
Vendor categorisation
Critical Vendors
Tier I
Supply chain monitoring and APSEZ’s engagement with To qualify or continue providing
due diligence suppliers helps reduce services to APSEZ, each supplier
Supply chain monitoring and due environmental and societal needs to achieve a minimum 90%
diligence is essential to prepare impacts. Suppliers who work score (with monthly monitoring
businesses for any unforeseen at APSEZ workplaces are and evaluation). We will utilise
reputational or continuity risks. encouraged to reduce energy and these scores not merely to judge
APSEZ proactively engages key water consumption. but also to assist suppliers
stakeholders to embrace safe and improve the Supplier Score,
The supplier ESG performance
environment friendly practices as indicating their seriousness,
assessment criteria are integrated
well as best operational practices ability and adaptability. We will
into the Supplier Performance
throughout the operational continue to work with suppliers
Assessment Scorecard (to be
lifecycle. We achieve this by who keep improving, their
implemented from FY22). In this
establishing clear procurement payments, termination and non-
scorecard, safety and compliance
guidelines and specifications for renewal linked to their scores.
carry 10% weightage each while
our vendors to reduce the overall performance including other ESG
environmental impact of our criteria carry 80% weightage.
projects.
71
46
96.10 1,02,503
% people retention, 2020-21 Person-hours of training,
FY 2020-21
9.8
Percentage positions filled
through internal movements,
FY 2020-21
Succession management 74
Percentage workforce
70 comprising engineers and
other professionals (as on
% critical positions that have a March 31, 2021)
minimum of two successors
100 7.29:1
The Engaged vs Disengaged
% development plan created ratio at APSEZ
and implemented for
identified successors
Overview
At APSEZ, we believe there is a premium on people skills, experience and adaptability in a rapidly
transforming world. The world is marked by sweeping changes in globalisation, technology, trade flows,
digitalisation, climate change and political transformation. When seen from a purely Indian perspective,
there is perpetual change, rural consumption engine and the impact of an unprecedented pandemic.
In a world where transformation is the only constant and uncertainty the only certainty, the biggest
challenge, differentiator and opportunity lie in how the Company recruits, retains and grows its people.
approach empowered the performance management and Indian labour laws, UN-ILO
Company to develop a desired introduced (transparent and conventions on labour matters
capability mix, comprising the measurable) quarterly variable and UN Global Compact
right number of professionals with rewards programme. It capitalised Principles. The purpose of this
desired competencies in the right on the application of enabling comprehensive policy architecture
locations, ensuring the availability technologies to enhance helped foster a work environment
of competent culturally aligned employee experience. These conducive to upholding human
professionals. measures enhanced net people dignity, matching global
asset value and organisational standards. The organisation
The Company focused on
agility. deployed these policies with
maximising people retention.
rigour to inspire confidence in the
Rapid growth provided people The Company empowered
workforce and larger community.
development opportunities, a people to contribute through
symbiotic proposition that led performance, learning and Considering the importance of
to high people engagement growing their value proposition. building diversity, an extensive
and retention. Besides, the The result has been a diversely D&I (Diversity and Inclusion)
Company demonstrated patience talented workforce, marked by a programme was deployed wherein
and talent nurturing, helped multiplicity of perceptions and diversity (not limited to gender
employees during the settling- experiences on the one hand and but also of age, education,
in period, enunciated the right enriched culture, competence, caste, creed, colour, though
expectations of organisational capabilities and change process, sexual orientation,
priorities, analysed congruities management capabilities on the domicile, nationality etc.) was
between expectations and other. built by design, encouraged and
delivery, enhanced role clarity, leveraged. Diversity and inclusion
The Company designed labour
enhanced domain competence, programmes were run for
management policies with
created an eco-system of support, managers and employees so that
provisions in compliance with
deepened an active culture of the overall employee experience
New Hires
Employees
Age Age Age
conduct and ethics. A ‘Group bargaining are recognised and offices, sites and townships. Its
Policy and Code of Conduct for protected within the provisions policies promoted safety and
Employees’ was enumerated of relevant laws and regulations. moved most essential activities
for Adani Group employees. The organisation will continue to to digital platforms. The Company
Provisions of Group Code of respect the rights of workers to rolled out localised health
Conduct were applicable to form or join a trade union without advisories to enhance pandemic
APSEZ employees. New joinees the fear of intimidation or reprisal, awareness, sensitising employees
were trained in Anti-Bribery in accordance with the law. and their families to adopt best
and Anti-Corruption guidelines practices as per Government
Prevention of Sexual Harassment
during their induction. All guidelines.
at workplace: APSEZ practices
Directors, officers, employees and
a zero tolerance towards sexual To measure the impact of the
consultants will receive relevant
harassment at the workplace. COVID-19 on employee wellbeing
training on how to implement
The Company adopted a policy and mental health, APSEZ
these guidelines.
on prevention, prohibition and collaborated with the research
Human Rights commitment: redressal of sexual harassment team of Tata Institute of Social
APSEZ is committed to protect at the workplace in line with Science (TISS) and SNDT College
the rights of every individual in provisions of Sexual Harassment (Mumbai) to conduct employee
its ecosystem. Human Rights of Women at Workplace wellness checks in November
Guidelines apply to all employees, (Prevention, Prohibition and 2020. The survey generated 75%
permanent, contract or temporary, Redressal) Act, 2013 and Rules employee coverage; an average
and other associates working made thereunder. The Company score of 3.71 out of 5 validated our
for APSEZ and other (owned, complied with provisions commitment to a healthy work-life
operated and managed) entities. relating to constituting Internal balance and employee wellbeing.
Suppliers and vendors need Complaints Committee as per the
Despite the pandemic challenges,
to follow these guidelines, Sexual Harassment of Women at
the employees delivered an
while dealing with ASPEZ. Workplace (Prevention, Prohibition
EBITDA margin of 70% and
Providing an equal employment and Redressal) Act, 2013.
enhanced milestones. Market
opportunity, ensuring distributive,
Provisions of these policies share increased 400 bps
procedural and interactional
and guidelines were deployed pan-India with the Mundra
fairness, creating a harassment-
and reviewed with rigor and port emerging as the largest
free, safe environment and
exceptions were dealt with as per container port in the country
respecting fundamental rights are
applicable procedures. (surpassing JNPT by a leap). The
paramount. Our Code of Conduct
Company expanded its presence
and Human Rights Guidelines are Resilience in crisis: The outbreak
in domestic and international
aligned with globally accepted of the COVID-19 pandemic slowed
locations with four large
standards. global economic activity. Despite
acquisitions – the Krishnapatnam
challenges, our continued services
The Human Rights Guidelines port, Gangavaram port, Dighi port
were needed more than ever.
are aligned with globally and Sarguja Rail line, taking the
Resonating with the Company’s
accepted standards like the Company’s portfolio to 13 ports in
mission of nation building, our
U.N. Global Compact, U.N. India, in addition to a container
employees and support teams
Universal Declaration of Human terminal at the Colombo port.
stood up to the task of remaining
Rights and International Labour
operational while ensuring no
Organisation’s Declaration on Outcomes
safety compromises.
Fundamental Principles and The outcomes of these initiatives
Rights at Work (ILO Declaration). The COVID-19 pandemic was were visible across the Company’s
The policy covers all employees, monitored; safety, social and performance: increased people
suppliers, clients, communities economic risks were evaluated. retention and enhanced people
and location/geography where we The leadership invested in engagement. Projects were
do business. extensive safety protocols completed on or before and
and mandatory practices to within or at scheduled costs;
Freedom of Association: Rights
protect employees without besides, high people engagement
of employees and associates
impacting business continuity. strengthened Customer Score and
to exercise their freedom of
The workforce demonstrated Vendor Score, the success drivers
expression during their work is
resilience in adapting to new ways of the Company.
to be respected and encouraged.
of work and life.
For the bargain-able segment of
workforce, right of association, The Company enhanced safety
negotiation and collective and hygiene standards at its
STRIVE: Knowledge
Art & science First time sharing and
Data analytics Role of the
of feedback manager mentoring
manager
A large port was acquired by APSEZ. One of As a practice, APSEZ employees are appraised
the key imperatives of the acquisition was an once a year based on their deliverables. As a
accelerated integration of the new entity into part of the growth and business transformation
APSEZ. A team comprising high performance program, Xceed (quarterly variable rewards
executives from different functions was program) was deployed.
constituted, involved in the due diligence.
Xceed sets goals over a short span of time at
Immediately after acquisition, this team was
individual levels. It enhances clarity to achieve
placed in the new entity, assuming leadership
goals every quarter. Constructive and relevant
roles.
feedback to every executive by a manager every
Due to their familiarity, clarity of purpose and quarter is integral.
extraordinary striving, the integration process
Extensive communication was carried out for
was completed.
employees across levels in the form of large
People, culture and process integration were group interactions and team meetings to
led by leadership team members in every explain the significance and impact of change.
department. The apprehensions of the existing The organisation responded to the new format
workforce were resolved through extensive of managing performance from the first
communication. quarter. Quarterly goal-setting discussions and
evaluations helped employees address their
Most performance parameters in the acquired
targets with role clarity, improving productivity
entity improved significantly within the
and goal achievement.
first quarter of acquisition and reached the
APSEZ standard within the first six months of
operations.
Apex
Safety
Council
Group Safety
Steering Council
Sustainability and
Business Safety Council CSR Committee of
chaired by CEO Board Sustainability
Leadership Committee
Sustainability
Project/ Geographic Area/ Safety Council Steering
Committee
Safety statistics
FY21 Safety performance (GRI 403-9) FY21
On Roll + FTE on contract Contractor’s workers
Head count Number 2733 26,598
Total hours worked Hours 4829738 59740527
Fatality as a result of Number 0 6
work related injury Rate (per million of person 0.00 0.10
hours worked)
High consequences Number 0 0
work related injuries Rate (per million of person 0.00 0.00
(excluding fatality) hours worked)
Recordable work- Number 1 (LTI) 49 (LTI - 16, Fatal - 6,
related injuries MTC - 27)
Rate (per million of person 0.21 0.82
hours worked)
0.29
0.25 0.26 0.22
0.20 0.20
0.17
0.09
0.06 0.07
0.02
0.02
5 14 20 13 22 17 16 25 14 27 23
2 1 5 6
FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21
Each incident is a serious issue working at heights, machine safety incidents occurred in areas
at APSEZ. Incident investigation guarding, electrical safety, like heights, machine handling,
is followed through the isolation & lockout (LOTO), material handling and road safety.
implementation of measures. confined space, material handling
Critical safety areas comprise and scaffolding. In FY 2020-21,
Road incident § Use of bikes by employees and service providers to be stopped in the area with HMV
- One fatal movement
incident at
§ Stoppage of the inward movement of 2-wheelers at night across APSEZ, Mundra (1900 –
Mundra port
0500 hours)
§ Installation of a light barrier or glare screen across the road
§ Campaigns to enhance staff awareness in the SEZ area
§ Inspection of crash helmets
§ Installation of signages in the SEZ area
Work at height § Ensuring the maximum level of bag stacking to the level of the truck cabin roof height to
- One fatal create stabilised stack
incident at
§ Restriction on workers coming to the edge of the stack.
Krishnapatnam
port § This incident was included in the Daily TBT at all locations at our ports.
§ Minimum 4 to 5m between two vehicles parked side by side for loading / unloading of
the bag cargo was maintained.
Safety highlights task force team (TF2 Contract continuous process improvement
§ Safety goal: Zero harm by 2025 Safety Management) on a and risk mitigation to ensure a
regular basis. safe workplace with the objective
§ Training and capability to achieve zero harm for every
building: Training person-hours § Critical safety procedures
worker.
for employees and contract reviewed periodically.
workers were 5892. § Vulnerability Safety Risk Operations risk management
§ All ports are ISO 45001: 2018 Assessment by a site task force At APSEZ, we identify process-
Safety Management System team (TF2 Contract Safety related risks and keep updating
certified. Management) to identify and the risks register as a part of our
comply with SOP updation/ continuous learning to prevent
§ Gap assessment and the refining recurrence.
implementation of a safety
procedure are evaluated by a § Technological and digital
interventions on safety Contractor safety
third party at the port sites.
management
§ Safety handholding and § Digital initiatives for enhancing
We have a responsibility to ensure
assessment done by a third safety comprising sensors,
that all personnel who enter our
party speed tracking of vehicles etc.
working area benefit from a safe
working environment. Contractor
§ Road Safety Audit carried out Process safety
by a third party personnel safety is an integral
Process safety and risk part of our approach to health
§ Monthly self-assessment management can reduce the and safety management.
carried out by a task force team probability of any incident
occurrence. Before any contractual
§ Safety Risk Field Audit (SRFA) engagement begins, the following
carried out at the site level by a APSEZ lays a special emphasis on are taken of:
§ Appropriate contractor awareness related to activities health of its employees and their
selection with in-depth analysis being performed. To drive this families. Occupational health risks
of our safety culture before on- culture forward, the following are understood and supported by
boarding activities are performed daily at a wellness program. All employees
§ Familiarisation with a layout each site: safety induction, safety undergo regular health checks as
of size and peculiarity to tool box talks, safety inspection per the programme. To address
workplace requirements; and empowerment to stop the immediate health needs, all
regular toolbox discussions; operations. port locations commissioned
continuous monitoring of the health centres equipped with
workplace. Elimination of safety a medical emergency van. All
§ Authorisation for team incidents on road contract workers were monitored
APSEZ is dependent on safe for their health. We followed
members to stall operations
movement of cargo by road. good practices to minimise
if any unsafe act has been
To drive the safety culture to occupational health-related
observed
the next level, a specialist was illnesses.
§ Impressing up on each worker
the need to manage safe engaged to minimise road The wellbeing of members at
practices to the best of their incidents. operating locations took a new
ability. Speed radar guns were installed dimension during COVID-19:
across multiple locations to warn monitoring and testing, social
§ Effective visual tools deployed
drivers and reduce the possibility distancing at work as well as
across all sites for the benefit of
of accidents. Besides, this entire enhanced focus on hygiene.
workers
facility was covered by CCTV APSEZ supported the workforce
§ Work performance scorecard by facilitating medical needs
practices initiated (discussed with video-analytic capability for
advance warning. The Company during COVID-19 through
daily with site teams) hospitals and other supports.
engaged in educating drivers in
Health & safety training respecting the appropriate speed
limit and safe driving practices.
Rewards and recognition
At all our sites, Health & Safety On a monthly basis, all our ports
training is an important part of Healthy workforce builds a were rank-based on an accepted
our culture. Activities at our sites scoring practice; results were
are complex, warranting detailed
healthy Company
displayed, creating healthy
operations induction and risks APSEZ has stood for the good
competition across sites.
Education
Adani Foundation designs and many children as possible has filled environment for children.
implements transformative taken the form of several cost- The replicability and scalability
programs for all communities in its free schools as well as subsidised of these educational models are
influence areas. In this regard, the schools across India. Many smart ensuring that more children move
Company and Adani Foundation learning programs as well as towards a bright future. In this
view education as the major projects to adopt government regard, the Adani Foundation
driver of sustainable and holistic schools are being run in remote is implementing the following
development. The Foundation’s areas to ensure the realisation initiatives:
resolve to make quality education of student potential. It also aids
available and affordable to as Anganwadis by creating a fun-
The Adani Vidya Mandir, currently measure and deliver quality school being AVM teachers, visited
operational in Ahmedabad governance, academic excellence students’ homes weekly and
(Gujarat), Bhadreshwar and stakeholders’ satisfaction. provided customised self-learning
(Kutch, Gujarat) and Surguja The Adani Vidya Mandir in modules. Despite being away
(Chhattisgarh) provide cost-free Bhadreshwar caters to children from the school environment, the
quality education to more than from the fisher-folk settlements quest for imparting quality and
3000 meritorious students from and neighbouring villages. value-based primary education
economically weaker sections. continued.
During the pandemic, the AVM
The schools provide students
teachers and students adapted to
with uniforms, books and
3000
virtual classrooms. Students, who
stationery. Handpicked staff and
could not participate in the online
their training ensure the holistic
classes due to their challenging
development of student. The Meritorious students from
situations, were not excluded.
AVMs adhere to the Adani School economically weaker
In Bhadreshwar, the designated
Manual aligned with NABET sections were supported
village coordinators, majority
(under QCI) standards, helping
3200
The number of students
provided subsidised quality
education by Adani Foundation
Utthan
2,098
Project Utthan has
2,098 students across 17
schools
Udaan
The Udaan project is geared towards motivating the students of our
country and encouraging the entrepreneurial spirit in their lives. It
is a learning-based initiative focusing on UN’s fourth Sustainable
Development Goal - Quality Education. The project hopes to inspire
students into becoming leading visionaries and entrepreneurs of the
nation. Since 2010, an impressive 3.48 lakh students (all over India)
and participants from more than 5200 institutions visited business
locations in Mundra, Hazira, Tiroda, Kawai, Dhamra and Udupi.
Community health
Adani Foundation regards preventive and curative services and specialised health camps.
healthcare as a basic human for people belonging to weaker Considering the pandemic, the
right. Bringing healthcare to sections. It runs Mobile Health Foundation worked to safeguard
the remotest regions, Adani Care Units (MHCUs) across frontline responders and supply
Foundation’s key focus is the nation, hospitals and rural life-saving medical equipment.
improving access to quality clinics; it organises general
GAIMS
Adani Foundation seeks Gujarat and Adani Education & G.K.General Hospital became a
partnerships with government Research Foundation. GAIMS designated treatment centre,
agencies and civil society is the only medical college and procuring essential equipment like
formations. Gujarat Adani multi-specialty modern teaching ICUs, ventilators, extra beds etc. to
Institute of Medical Sciences district hospital (G.K. General improve health care accessibility
(GAIMS) is the first Public-Private- Hospital) in Kutch district. for the people of Kutch.
Partnership (PPP) endeavour
During the coronavirus crisis,
between the Government of
The Vadil Swasthya Yojana (Senior avail healthcare services at the etc – to deliver medical services
Citizen Health Programme) Adani Hospitals at subsidised to remote areas. About 20,657
benefits senior citizens from rates. patients are treated at the
socio-economically marginalised camps annually, on an average.
Various health camps are
sections. Those with a family Special health camps for the
organised at regular intervals,
income of less than H2 lakh per elderly population were held
which are seasonal/need-based
annum are provided green cards in Mundra and Dhamra, which
to meet the specific needs of
to avail free healthcare services benefitted 1,297 people. A total of
the community – camps for
amounting to H50,000 for three 59 seasonal/need-based health
gynaecology checks, blood
years while those with family camps were organised in which
donation, eye checks, awareness
incomes of more than H2 lakh per 7497 consultations were provided.
about government schemes
annum are given blue cards to
Rural clinics & mobile and expenses, covering villages The Adani Foundation-run
healthcare units and fishermen settlements. This mobile healthcare units provide
service is a boon for women, consultation services and
There are 11 rural clinics run at
elderly and children as its provides medicines to people at their
various locations, which have
a doorstep service. doorsteps, tending to other
provided timely services to 15,797
ailments and diseases amidst the
patients. The foundation also It provides primary medication,
pandemic.
operates Mobile Health Care diagnostic facilities, medicines,
Units (MHCU), providing on-the- free consultation and referrals
Adani Hospital
spot medical assistance to the by certified doctors. At present,
patients in regions where medical three MHCUs in port locations While the rural clinics, health
facility is not available. The provided 68,918 treatments. On camps and mobile healthcare
mobile health care unit service an average, 15 MHCUs provide 4 units reach people in remote
helps reduce travel time, hardship lakh treatments annually. areas, those requiring tests,
treatment and care are referred care services to 12,289 people cost effective and sustainable
to a more equipped healthcare (6,574 males and 5,715 females). technology to address the
establishment. The Adani Considering the pandemic, an prevailing quality issue in
Hospital is a 100-bed secondary in-house awareness programme drinking water. 50 beneficiaries
care hospital catering to the among visiting patients and already received natural terafil
healthcare needs of the local villagers was undertaken. water filter in phase-I with good
population of Mundra and results. Based on the impact, the
neighbouring areas. Under the Project Swasthya in Dahej remaining 120 families received
umbrella of Adani Foundation, it Adani Foundation supported the same benefit in FY 2020-21.
is committed towards grooming Primary Health Centre (PHC),
skilled medical professionals Dahej, with HbA1C Analyser, bio Medical support beyond
and providing quality clinical chemistry analyser and multi treatment of ailments
services to the common man diagnostic kits. Patients with Adani Foundation believes in
at economical rates and even complaints of hypertension adopting a holistic approach
those with health cards. During and diabetes undergo different towards healthcare, which
the reporting period, the hospital tests, treatment, counselling includes treatment of diseases,
provided 20,959 OPD services and and follow up. People of nearby awareness generation, material
772 IPD interventions. villages undergo tests for glucose, and financial support and linkages
urea, cholesterol, creatinine, to available government schemes.
Dhamra Wellness Centre SGOT, SGPT, uric acid, Alkaline
The Dhamra Port Wellness Centre phosphate, HDL, Bilirubin, CRP § In Kattupalli, Tamil Nadu, 20
started operations from December and triglycerides at no cost. persons were provided with
08, 2019, located in a strategic hearing aid support.
place to cover the villages of Natural terafil water filter in § Vehicle support in Dahej for
Dosinga, Koithkhola, Karanjmal, Kattupalli polio campaign, which helped
Bansada, Jagula and Dhamra GP Water in Senghazhanirmedu reaching out to 2,417 children.
out of the eight periphery GPs colony village is available at 12
of Adani Dhamra Port vicinity. § In Mundra, six patients received
feet but is not potable due to a dialysis support at G.K. General
Running in a partnership mode mix of soil in fine particles. People
with HelpAge India, the Centre Hospital, Bhuj.
collect water from common
provides basic health care open wells available within the § To reduce water-borne disease
and referral services to people hamlet. Around 170 families are and women’s drudgery to
residing in these inaccessible living near Kosasthalaiyar River fetch water from far-off areas,
areas deprived of basic health which is covered by mangrove potable water was provided to
services. It also extends the first forest. Locals store the water over the fisherfolk communities at
aid services to road accident night and use it for drinking and different vasahats (settlements).
victims considering its location cooking, despite the presence of In the reporting period, 676
on the road between Dhamra and sediments and micro particles families were supported by
Koithkhola leading to Bhadrak. that are detrimental to health. fulfilling 75,000 litres per day
During the reporting period, the The Adani Foundation identified water requirement.
wellness centre provided health natural terafil water filter as a
20,959
During the reporting
period, Adani
Hospital in Mundra
provided 20,959 OPD
services and 772 IPD
interventions.
Vizmart
Interventions in agriculture they can grow around three crops Dhamra adopted the paddy line
Agriculture represents the a year. transplanting method, which
backbone of our economy and a increased their yield by an average
Mix cropping and cash cropping
major source of livelihood for rural 35% and their income by around
is becoming a practice among
populations. Adani Foundation H15,000.
marginal farmers. For instance,
works with farmers to upgrade in Dhamra, two farmers were More farmers are shifting towards
their skills so that they can earn able to get a grant of H3.79 lakh growing vegetables and fruits
sustainably. The Foundation from Horticulture department, that optimise their land use
encourages the use of organic Government of Odisha under and provide sustained income.
farming. With growing knowledge Integrated Farming Scheme In Mundra, the ‘wadi’ model of
and better irrigation facilities (IFS). They were able to earn orchard growing is being adopted
supported by Adani Foundation, H1.2 lakh. Some 99 farmers in where two or more crops are
grown to minimise biological 6,846 families (approximately providing suitable habitats and
and marketing risks. Some 34 31,400 beneficiaries) under the breeding grounds with multi-
farmers in Mundra’s 16 villages are Pashudhan program during the species plantation on mangroves
adopting the model by planting reporting period. A total of 3,217 in a 10-hectare coastal land,
60 different fruit plants in 0.5- artificial inseminations were widening alternative livelihoods
acre land; a total 1700 plants were carried out and 1,296 calving were for the fisher folk community.
planted in 12 acres. seen in Dahej, Hazira and Dhamra.
More than 42,000 cattle received Home biogas
In addition, to preserve the only
treatment through mobile Under the Gram Utthan Project,
means of livelihood for majority of
veterinary units and camps. Adani Foundation is providing
farmers belonging to Kutch, Adani
Vaccination and deworming home biogas to farmers in Utthan
Foundation supported 34 farmers
camps as well as fodder villages. In the current year, the
with training and provision of 850
cultivation camps were conducted Foundation supported 117 home
plants of ‘Barahi’ superior quality
in CSR intervention areas. biogas units in the Dhrub, Zarpara
date palm variety, developed
with mass multiplication (tissue and Navinal villages of Mundra.
Mangrove biodiversity park Home Biogas is an Israel-based
culture) technique, which has
good strength and productivity. Industrial activities and Company that manufactures
Many of these have been logistics value chain with dynamic biogas units not only
transformed into model farms, substantial spatial footprint for farm waste but kitchen
implementing home biogas, impact biodiversity. The Adani waste as well. This transition
kitchen gardens, drip irrigation Foundation’s CSR efforts on to renewable energy motivates
and rainwater harvesting amongst biodiversity conservation families to use organic waste
many other good practices. The around plant sites evidence of and reduce their dependence on
Foundation also promotes the its commitment and sincerity. chemical fertilisers, a relief from
plantation of palm trees on bunds For example, in Mundra, Adani using charcoal and wood and
of water bodies in Kattupalli. Foundation has taken programs helping enhance health and living
for both coastal and terrestrial conditions.
Livestock programme biodiversity by expansion of areas
and enrichment of biodiversity Vizmart
The livestock development
spots. Women’s empowerment translates
project supported by Adani
Foundation is being implemented A bio-diversity project to grow to access to government
in Dhamra, Dahej and Hazira. three mangrove spices, i.e., programs, mobility outside the
The objective of this project Rhizophora Mucronata, Ceripos home, economic independence
is to create supplementary Tagal and Ceriops Decandra is and purchasing power. Among
incomes through animal livestock continuing at Luni Bandar. The unique initiatives undertaken by
development. This is done by mangrove biodiversity enrichment Adani Foundation to make women
creating awareness among project in and around Adani Ports self-reliant is Vizmart in Vizhinjam,
farmers about the socio-economic and Special Economic Zone aimed a market outlet with 16 small
benefits by improving local animal to introduce select mangrove business units run by women from
breed, training them in the best species on a pilot scale in suitable the community in the periphery of
animal husbandry practices, coastal belts and assess their the port. The motive of Vizmart is
cattle development through survival. With an aim to enhance to create a sustainable market for
breeding, fodder development, the diversity of coastal region in women self-help groups.
promoting vermicomposting Mundra, two bio-diversity parks Further training, sourcing of
as well as running vaccination have been developed – one on a products, branding support, bank
camps, veterinary camps and five-acre land near Nandi Sarovar linkages, product packaging,
mobile veterinary units. This and another in Luni. This will linkage with resources and
enhanced the household incomes increase the faunal diversity and markets were also provided by
of many families. There were fishery resources of the area by Adani Foundation.
42,000
More than 42,000 cattle
received treatment through
mobile veterinary units and
camps.
The Environmental Impact collaborate with Government contribute to the health and
Assessment study carried out by schemes for Divyang (differently productivity of their families,
Government of Kerala through abled) people, widows and communities, and countries,
VISL (Vizhinjam International senior citizens. A total of 1576 creating a ripple effect that
Seaport Ltd.) in 2013 highlighted beneficiaries benefitted from this benefits everyone. The Adani
that solid waste is increasingly initiative worth H24.1 lakh. Foundation recognises this and
becoming a socio-economic as part of sustainable livelihoods
threat for communities in and
Support to fisher-folk development, it facilitates several
around Vizhinjam. The Adani Adani Foundation provided women’s self-help groups (SHG).
Foundation adopted a multi- scholarships to encourage 59 In Mundra, 11 SHGs are benefitting
pronged approach: it set up children from fisher-folk families 127 women engaged in making
Thumboormozhi Aerobins as a in Mundra to pursue higher sanitary napkins, FSSAI certified
facility for waste compost and studies. Under this program, dry snacks, making phenyl and
enhanced awareness among Adani Foundation provided 100% washing powder etc. In Hazira,
waste generators on how to fee support to girls and 80% fee four SHGs are helping 43 women
segregate waste and dispose support to boys as scholarship. In who are engaged in similar
scientifically through such a similar bid, 37 fisher-folk children home-based enterprises to make
facilities. were provided transportation masalas, pickles, papad, snacks
support so that they could etc. In Dahej, three SHGs are
This yielded better results in the commute to school. Some 55 being run to benefit 33 women
communities, wherein the waste Higher secondary children by training them and providing
from about 2,600 families was (standard 9 to 12) were provided material support. They are
treated through Thumboormozhi. books support, five children engaged in vermicomposting,
A total of 26 aerobins were were provided cycles and more making snacks and cloth masks/
installed, collecting 770 Kg waste than 442 children participated bags etc. Similarly, in Dhamra,
per day. The cleaning campaigns in Ramotsav – a sporting event Odisha, four SHGs are in action,
were initiated at various locations, that promoted awareness on employing 72 women who are
bringing about change in waste holistic primary education. The engaged in mushroom cultivation.
accumulation. Foundation provided soft skills
and technical training as well as These SHGs help unorganised
Project Swavlamban placement support to 70 fisher- SHG members establish women
Project Swavlamban was launched producers’ groups and increase
folk youth so that they generate
for linkages of differently abled incomes. It links SHG producer
alternative livelihoods.
people of Kutch district with groups to government schemes
Social Welfare Department. The Support to women’s SHGs for sustainable engagement,
Foundation is playing a supporting Empowered women and girls production and incomes.
role to increase awareness and
Adani Foundation facilitates improve access to and from the In Kattupalli, the K.R. Palayam
small-scale basic structures, various facilities in areas where canal extends 1.5 km in length
technical facilities and systems it was a requirement. Further, 24 and 55 meter in width. Adani
built at the community level hand pumps were installed in the Foundation removed water
critical for the sustenance of lives port periphery and rail corridor weeds, cleared garbage along
and livelihoods. which will benefit 9,600 persons and removed silt for effective
directly and 28,800 people rainwater harvesting. After the
In Mundra, it carried out bund
indirectly. One community toilet monsoon of 2020, this restoration
strengthening at Zarpara, open
was constructed at Moharampur facilitated the irrigation of 100
shed Sukhpurvah construction,
GP to promote safe hygiene acres of agriculture land in K.R.
approach road restoration at all
practice amongst villagers. Palayam and increased the ground
fisher-folk settlements and garden
water table. Some 712 families
development in the primary school Adani Foundation is supporting
benefited from the recharged
of Rampar village. the Government of Odisha in
ground water.
strengthening the infrastructure
In Dahej, 1500 students of
under MO School Abhiyaan. Adani Foundation engaged
Uttar Buniyadi Vidyalaya, Thava,
As part of this, five classrooms in active collaboration with
and Ashramshala, Thava, will
are being constructed, four are beneficiaries and government
be benefitted through the
being renovated and five girls’ bodies to implement techniques
developmental works. In other
toilets are being built across 14 for the collection and storage
instances, it constructed bus
schools within the port and rail of rainwater across locations.
stand at Jageshwar, Community
corridor vicinity. The Foundation These are affordable, easily
Hall at Ambheta, a shed at
is providing High Mast Light implementable and highly
Naginagari and one pond front
Support by completing 26 replicable techniques. The
development.
streetlights installation across Foundation is promoting
In Hazira, it carried out pond a stretch of 1.5 km at Dosinga user efficiency through drip
deepening at Damka village, market from Dosinga Panchayat irrigation, providing support for
supported building of a school office to Pradyutnagar. This will the expansion of horticulture
at Junapura and construction of be beneficial to shopkeepers, and encouraging reduced
staircase facility at Navchetan pedestrians and cyclists. water intensity in agriculture by
Vidhyalay Primary wing in It provided support for the influencing cropping patterns.
Junagam. construction of a mini stadium at Some 51,753 beneficiaries will
Chandbali in collaboration with benefit from infrastructure
In Dhamra, three concrete/rigid the District Sports Department. development.
pavements were constructed to
Nurturing communities in which 158 women participated. wrought havoc in the coastal
through sports In Dhamra, an inter-Gram regions of Tamil Nadu, floods
Panchayat Volleyball Tournament caused by the torrential rainfall
Many sporting activities promoted
was held in which 140 youth surrounded fishing villages
the well-being of children and
participated. The Foundation and Irular settlements. This
youth. In Dahej and Hazira, a
provided material support in the affected the coastal areas of
cricket tournament was organised
form of t-shirts, trousers, shoes, Tiruvallur district as rainwater
for rural youth in which 360
net, volleyball and trophies. entered homes and damaged
and 600 persons participated.
properties. The socially backward
Other activities in Dahej included Nivar cyclone relief in Irular community was the worst
an inter-school volleyball
championship for girls and boys
Kattupalli affected. Food was distributed
In India, floods and cyclones to 350 economically backward
with three High Schools in which
hit different areas with high individuals in the flood-hit coastal
42 girls and 98 boys participated
frequency. As Cyclone Nivar areas. Some 200 Irular individuals
and a sport event on Women’s Day
Adani Skill Development Centres, ASDC trained 68,149 people for courses were taught online while
a not-for-profit venture, are India’s various skills and generated 65% others were conducted practically.
first skill training centres to impart livelihood through 45 courses
ASDC is reviving handicrafts to
courses like 3D printing, simulator- in 10 states. With India looking
preserve local culture. It played a
based crane operator and welding to revive its economy in the
crucial role in the revival of SUF
through augmented reality-based light of the COVID-19 crisis,
and Namda handicrafts in Mundra
simulators. The major areas in optimal skilling is a priority. Adani
under the programme called
which ASDC imparts training Foundation widened its reach
Aarambh by training women from
are digital literacy, general duty through digital means, running
the community. Marginalised
assistants (GDA), self-employed their courses online, resulting
groups like young, widowed
tailoring and sewing, beauty in a remarkable increase in
women in Bhuj were trained
therapist, pedicurist, manicurist the enrolment of students. For
in patient care and assistance
and assistant. electrician in the courses that include practical
(General Duty Assistant Course)
IT, healthcare, apparel, beauty demonstrations and hands-on
and placed in reputed hospitals.
& wellness and construction training, a semi-online route was
It trained the handicapped
sectors. charted in which some parts of
(Divyang) and widows as well.
Key features
A. Utthan Sahayaks: Catalysts and influencers
§ A majority of Utthan Sahayaks are local residents exposed to quality education
§ Dedicated Utthan Sahayak was appointed in each school as a mentor to priya vidyarthis (progressive
learners) to work towards intellectual, physical, social and emotional growth.
§ Focus was on ensuring regularity, facilitators in library, assembly and co-curricular activities
Learning outcomes
436
No. of students
271
148
D. Reading corner
1732
1452
1392
Number of books
1196
717
624
433
348 363
312 299
239
E. Promoting sports
502
500
400
300
200
100
65
0
2018-19 2019-20
§ Making mothers the primary effective, which reflected in § Some 7113 books were issued
catalyst in children’s education exam results. in school libraries during FY
§ ‘IT on Wheels’ in all schools with 2019-20 as against 1194 in FY
§ Improving regular school 2018-19.
attendance one dedicated van and two
trained IT instructors plus 40 § Science kits were provided
Impact assessment by Kutch laptops helped develop IT skills to each school; students of
from the elementary level. the middle classes started
University preparing science-based
§ Participation in Khel Maha
§ The reading and writing abilities models and a few were
Kumbh increased from 65
of priya vidyarthis improved selected for taluka level science
students in FY 2018-19 to 502
from below 30% to 61%; their exhibitions in 2019.
students in FY 2019-20.
numerical abilities improved
Sub optimal
use of
agricultural Distressed
land migration
Intervention Process
Namda Kala is an ancient only Namda artisan in Kutch H5-5.5 lakh by bringing
art, older than spinning and Gujarat, a place where 30-35 artisans onboard.
weaving, used in the art of families were traditionally The Foundation provided
making felted floor coverings involved in animal husbandry, infrastructure, trained people
and paddings, and then owning large herds of and developed linkages with
embroidering the pieces with livestock. The art of crafting professors and students from
hand-dyed threads. The art using sheep wool was renowned design schools like
was visibly prevalent since handed down from fathers to NID and NIFT.
1800s and in demand due sons. However, in a quickly
Through Adani Foundation’s
to use by royal families and modernising world, Karim
relentless drive and Karim’s
government bulk orders till struggled to survive in a
passion, the story of Namda
the early 2000s. The art dwindling market.
Kala has now achieved
began to gradually decline
In 2017, Adani Foundation international recognition.
due to new art forms but
– the CSR arm of the Adani A closely guarded family
handful of artisans held on
Group – reached out to secret, which was about
to their family tradition of
Karim to help sustain Namda. to disappear due to few
Namda Kala. This is the story
Later that year, the Adani economic opportunities, is
of one such adept artisan.
Group placed an order of now a source of sustainable
Karim Umar Mansuri is the 750 Namda camels, worth livelihood.
At APSEZ, we believe that the At the core of our governance At the base of our governance
best returns are generated commitment resides a pyramid is the discipline
in an environment where the transparent enunciation of to keep doing things in
corporate direction is aligned what we wish to become. the right way, however
with the national direction. APSEZ seeks to emerge as the challenging or inconvenient
The Indian government largest and most sustainable it may be, convinced that
intends to emerge as a port Company in the world eventually the gains will be
USD 5 trillion economy by by 2030, achieve 500 MMT disproportionately higher
2024, supported by reforms of managed cargo by 2025 than all the investments of
across sectors directed to and the first company in the time, effort and funds. This
enhance the ease of doing world to be carbon neutral discipline has helped the
business, correct the national for its port operations by Company enhance systemic
under-consumption across 2025. The clarity of this consistency and predictability
sectors, enhance incomes and overarching objective has through market realities,
strengthen prosperity. been communicated to all our attracting similar-minded
stakeholders, resulting in a stakeholders.
shared vision at one end and a
collective energy in proactive
business building to reach
that target on schedule.
The Company voluntarily second valuer to evaluate the At APSEZ, we have selected
adopted The Related Party opportunity and indicate a to build the business around
Transaction Policy. value and equity swap ratio for long-term relevance. Even
the transaction. It appointed as we are building in, say,
During the year under review,
JM Financial Limited and J. P. 2020, there is a commitment
the management evaluated the
Morgan India Private Limited to build enduring national
opportunity within the Group
to provide a fairness opinion on assets for the coming
for consolidating its rail track
the proposed transaction. For decades. This approach
assets across the Group in one
F&A due diligence on the target has influenced all the
entity. The Company followed
asset and providing RPT Policy investments we have made
the policy for acquiring Sarguja
compliance certificate, EY was
Rail Corridor Private Limited in our assets, technologies,
appointed.
(SRCPL). brands, people, locations,
It reviewed the business products and trade partners.
As a first step, an Executive
case and, based on the This approach – expensive
Committee (EC) consisting of
recommendation of valuers, upfront but considerably
three Independent Directors
proposed their report to the low cost when seen from a
of APSEZ was formed, which
Audit Committee, which, in turn, long-term perspective - has
evaluated the opportunity and
recommended the transaction translated into the highest
submitted its recommendations
to the Board. On March 03, standards of capital efficiency,
to the Board. The Executive
2021, the Board unanimously generating superior margins
Committee was led by Mr.
approved the proposal of and surpluses with a quicker
G. K Pillai, Chairman of the
acquisition of SRCPL by way
Audit committee and included payback.
of a merger of the parent of
Mr. P.S. Jayakumar, a former
SRCPL with APSEZ. The same
banker and Ms. Nirupama Rao,
was disclosed to all investors
a former foreign secretary of
and disclosures were made as
India. The Executive Committee
per statutory requirements. The
then appointed BDO Valuation
Company organised an analyst
Advisory LLP, registered
call coupled with a press/media
valuer and Deutsche Equities
release.
India Private Limited as a
Executive Directors
Code of Conduct
Employees
Male
11-20 10% 36-55 10%
years years
Female
20%
> 20 80% 56-70 80%
years years
Mr. Gautam Adani has over 36 vision, coupled with great vigour
years of business experience. and hard work. This has not only
Under his leadership, the Adani enabled the Group to achieve
Group has emerged as a global numerous milestones, but also
integrated infrastructure player resulted in the creation of a robust
with interests across resources, business model, which contributes
logistics and energy verticals. His to building sound infrastructure in
journey has been marked by his India.
ambitious and entrepreneurial
Mrs. Avantika Singh, an IAS officer School, Mrs Singh started her
of the 2003 batch, has been career in Civil Services as a Sub
appointed Vice Chairman and Divisional Officer (SDO) in Assam.
Chief Executive Officer (VC & CEO) She served as Commissioner,
of the Gujarat Maritime Board. Technical Education and Collector
With about 17 years of service in – Ahmedabad. She has worked
Public Administration, Mrs. Singh in Anand, Bharuch and Vadodara
brings to this position leadership as a Collector, as a District
honed by working in different Development Officer (DDO) in
key departments of the State Gandhinagar and Anand, and as
Government. Deputy Secretary – Energy and
Petrochemicals Department,
A Bachelor of Engineering in
Government of Gujarat, earlier in
Instrumentation & Control &
her career. Over the years she has
Mid-Career Masters in Public
been honoured with prestigious
Administration, Harvard Kennedy
awards and recognitions.
Mr. P S Jayakumar
Independent and Non-Executive Director
Company overview handling vast amounts of cargo priorities, APSEZ is prepared with
Adani Ports and Special Economic from coastal areas and the vast scale, scope and speed.
Zone Limited is India’s largest hinterland. The Company is
private integrated logistics developing a transhipment port at Highlights of FY 2020-21
company. Promoted by the Vizhinjam, Kerala. § Registered a cargo volume
esteemed Adani Group, the The Company’s vision is to emerge growth of 11% and achieved a
Company continues to strengthen as the largest ports and logistics throughput of 247 MMT.
its seamless integration of platform in the world in the next § Reported cargo growth across
three verticals – ports, logistics decade. With a vision to turn all segments in all ports and
and Special Economic Zones carbon neutral by 2025, APSEZ regions; the rate of growth
(SEZs). In a little more than two was the first Indian port and third outpaced pan-India ports and
decades, it has built, acquired in the world to sign up for Science other major ports.
and developed an unparalleled Based Targets Initiative (SBTi),
portfolio of ports infrastructure committing to emission reduction § Completed the acquisition of a
and services across India. targets to control global warming 75% stake in Krishnapatnam port
Currently, it has 12 strategically at 1.5°C above pre-industrial levels. and entered into a definitive
located ports and terminals — agreement for the acquisition of
Mundra, Dahej, Tuna and Hazira Adani Logistics Limited (ALL), the balance 25% stake.
in Gujarat, Dhamra in Odisha, a wholly owned subsidiary, is
the most diversified end-to-end § Completed the acquisition of
Mormugao in Goa, Visakhapatnam 31.50% stake of Gangavaram
and Krishnapatnam in Andhra logistic services provider in India
with a presence across all major Port Ltd. and entered into an
Pradesh, Dighi in Maharashtra agreement for the acquisition of
and Kattupalli and Ennore in Tamil markets. The Company operates
five logistics parks. When it 58.1% stake.
Nadu — that represent 24% of
the country’s total port capacity, comes to servicing core national § Announced the intention
to construct 534,000 sq. while PMI in March posted its continued to remain relatively
ft. fulfilment centre in its strongest expansion in almost weak.
upcoming logistics hub in four decades. A fiscal stimulus
Global trade recovered faster
Mumbai that will be leased to of USD 1.9 trillion by the new
than expected from the deep
Flipkart to address the growing administration boosted prospects
contraction of Q2 of 2020 as
demand for e-commerce in for the US economy.
emerging market economies
Western India and support
Euro area GDP declined 6.6% in witnessed strong trade demand
market access of several
2020 even as Q4 of 2020 saw a and WTO’s Goods Trade Barometer
thousands of sellers and MSMEs
complete loss of momentum gains rebounded in Q4 of 2020.
in the region.
made with a strong rebound in Momentum trends for H1 for
Q3. The emergence of the second 2021 are fluid and depend on key
2. Economy review
wave of the mutated virus saw constituents like export orders
2.1 Global economy lockdowns and restrictions on and automotive products etc.
The global economy posted an movement being imposed across
estimated contraction of –3.3% major constituent economies. Outlook
in 2020 on the back of the Some EU countries saw the IMF WEO April 2021 projects
COVID-19 pandemic. As per IMF impact entrenched well into Q1 of the global economy to grow 6%
World Economic Outlook (WEO) 2021, resulting in weak consumer in 2021, moderating to 4.4% in
April-2021 release, the contraction and business sentiments, 2022. Growth recovery across the
in 2020 was 1.1% lower than declining retail sales in January globe is expected to experience
IMF WEO’s own estimate in and falling PMIs. In the UK with tailwinds as additional fiscal
October-2020, reflecting a -9.8% growth in 2020, GDP did support in key large economies
higher-than-expected growth expand in H2 of 2020. However, and vaccination-led growth
recovery in the second half of as infections reached new materialises in the second half
the year for most regions and peaks in Q1 2021, the economy of the year. Global trade in goods
economies as the unlock process experienced new headwinds as and services is projected to grow
started and adapted to new ways it went into its third nationwide 8.4% and 6.5% in 2021 and 2022
of working. However, economic lockdown in January 2021. following -8.5% contraction in
activity remains below the pre-
Japan posted a growth decline 2020.
pandemic levels even as GDP
contractions ease across major of -4.8% in 2020 even as growth Because of an unprecedented
economies. Economic activity in Q4 2020 expanded by 11.7% policy response, conventional and
across major advanced economies (q-o-q, SAAR), extending the third unconventional, the COVID-19-led
and emerging market economies quarter’s recovery on account recession is likely to leave smaller
posted strong recovery in Q3 of resilient trade conditions scars than the global financial
2020, following a global plunge with a strong pick-up in exports crisis in 2008. IMF’s long-term
in Q2 on account of pandemic- and significant government outlook, however, suggests that
led lockdowns. However, some spends. However, the third some emerging market economies
economies saw economic activity wave of COVID-19 infections and developing countries have
stalling in Q4 on account of a and re-imposition of restrictions been hit harder and expected to
second round of infections with affected recovery as seen in retail suffer more significant medium-
speedily communicable mutations momentum losses and industrial term losses.
of the virus. As the vaccination production in January and
process set in Q3, high frequency February 2021.
indicators in Q1 2021 saw a China continued to post an
6
recovery. economic recovery for the third
The US economy contracted consecutive quarter in Q4 of
3.5% in 2020. There was a steady 2020 and saw an overall 2.3% rise
decline in the unemployment rate in growth in 2020, making it the % growth projected
from a record April 2020. Labour only major economy to register for the global
market conditions, however, growth in 2020. China’s growth economy in 2021
remained weak and fragile. High gains came from robust recovery
frequency indicators in Q1 2021 in manufacturing and exports, Source: IMF WEO
revealed a stabilisation as retail aided by policy support measures
sales picked up sharply in January even as domestic consumption
2.2 Indian economy will largely come from services days ahead. Also, while the health
Advanced estimates of India’s GVA at 2.9%, led by finance, real care system is visibly overloaded,
headline GDP for FY 2020-21 estate services growing at 7.3% but it is fully in play in the sense
projected a contraction in growth and trade. Hotels, transport and of fully functioning facilities,
of -0.8.% over FY 2019-20 while communication services at 1.8%. protocols, line of treatments and
GVA is estimated to contract Essentially, growth in Q3 came procedures, supplies, and workers.
-6.5%. India’s real GDP growth at from industrial GVA while growth
There are strong tailwinds on
0.4% in Q3 FY 2020-21 underlines of Q4 is anticipated on services
the global front, with the world
that growth recovery was sharper GVA as per government estimates.
economy coming back as most
than anticipated in H1. Pickup If this trend persists, the double-
major economies have already
in manufacturing, construction, digit growth projected in FY 2021-
been through two or three waves,
finance and real estate activities 22 in the range of 10.9% to 11.7%
resulting in optimistic outlook
reflects gradual unlocking and will have more legs for services
and low uncertainty. For example,
the normalisation of labour supply GVA compared to industrial GVA.
countries that have seemingly
across demand sectors. On the
conquered COVID-19 constitute a
demand side, pent-up and festive Outlook
large enough group to generate
consumer demand got bunched While the broader economy is an impulse for Indian exports in
to result in a sharp turnaround expected to grow in the range goods and services.
in private consumption during of 10.9% to 11.7% over FY 2021-
Q3 FY 2020-21. However, public 22 (11.5% as per IMF), the recent
spending continued to contract spate of second wave of the
in Q3 FY 2020-21 despite robust
India’s GDP growth rate (%)
speedily communicable mutations
rise in Centre’s expenditure, of the virus and resulting 6.8 6.5
signalling a significant cut-back in restrictions again, there could
expenditure by States. be some loss of activity from the
4.0
Adjusting 9M FY 2020-21 actual previously projected baseline.
data with FY 2020-21 second However, consequences for the
advance estimates to arrive at economy are likely to be more
(indirect) projection for Q4 FY modest when compared with -8.0 E
2020-21, it turns out that private what was experienced last year.
FY18 FY19 FY20
consumption will grow 2.1% in Q4 Arguably, the immunity quotient
compared to -2.4% in Q3. Similarly, could have risen this time
a massive year-end gush of compared to last year when the
spending in Q4 is expected with whole population was at risk,
public spending estimated to grow immunity gained through the
a whopping 20.6%. On the supply disease or through inoculation Source: CSO
side, the government projects that even as the pace of vaccination is E: Estimate
Q4 FY 2020-21 growth of 2.3% expected to further speed up in FY20
2.0%
2.8% 1.8%
1.0% 0.8
0.0%
-1.1%
-1.0%
-2.7%
-2.0%
-3.0%
-2.0%
-4.0%
-5.0% 0.1%
Out of 12 major ports, only two Tuticorin port (-11.9%). Decline (Paradeep, Kandla, JNPT, Vizag
ports witnessed growth in of cargo at other ports were the and Kolkata+Haldia) handled
FY 2020-21. Mormugao port following: Cochin port (-7.5%), around 64% of major ports cargo
and Paradeep port registered Chennai port (-6.9%), New volumes in FY 2020-21. Growth
cargo volume growth of 37% Mangalore port (-6.7%), JNPT port trends of major ports in cargo
and 2% respectively. Ennore Port (-5.3%), Vizag (- 4.0%), Kandla port for the past seven years is given
registered the highest decline (- 4.%) and Kolkata+Haldia port below.
in cargo traffic (-18%), followed (- 4.1%).
Exhibit: Major ports volume
by Mumbai port (-12.3%) and
Out of these 12 ports, five ports growth trends (volumes in MMT)
699 705
679 673
648
581 606
Key growth commodities in other commodities witnessed (-3.8%) and liquid cargo (-4.5%).
FY 2020-21 at major ports were de-growth: coking coal (-5%), The cargo basket of major ports
iron ore/ pallet (+ 29%), FRM (15%) thermal coal (-15.4%), POL + crude spread over key commodities
and finished fertilisers (11%). All + LPG/LNG (-12.8%) and container during FY 2018-21 was as below:
2020-21
2019-20
2018-19
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
10.0%
4.0% 5.9%
3.0%
2.0%
-6.0% -6.2%
-8.0% FY 2018-19 FY 2019-20 FY 2020-21
Coastal Overseas Major Ports
Source: Port Data Management Portal, Ministry of Ports, Shipping & Waterways, APSEZ calculations
Among the Non-Major Ports, GMB (24.0%), Andhra Pradesh Maritime Kerala Maritime Board (0.1%)
handled the maximum coastal Board (15.9%), Directorate of during FY 2020-21
cargo of 39.60 million Tonnes Ports, Odisha (4.8%), A&N Islands
Exhibit: Non-Major ports volume
with a share of 52.9% followed (1.7%), TNMB (0.4%), Directorate
growth trends (volumes in MMT)
by Maharashtra Maritime Board of Ports, Karnataka (0.2%), and
600
500
400
300
200
100
0
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
2020-21
2019-20
2018-19
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Source: Port Data Management Portal, Ministry of Ports, Shipping & Waterways, APSEZ calculations
Improvement and efficiency: As The Sagarmala program is a key at major ports has been trending
the sector prioritises efficiency initiative in this direction for major down. In FY 2019-20, capacity
and mechanisation, the ports ports. at major ports was around
industry is witnessing a shift. 1470 MMTPA. In the preceding
Major ports capacity utilisation:
Along with non-major ports, seven years, major port capacity
On ports capacity utilisation front,
major ports are also focusing utilisation trend is given below:
over a period, capacity utilisation
on efficiency improvements.
67
63
61
47
48
48
45
Source: Ports in India 2021 by India infrastructure and Ministry of Shipping FY 2019-20 annual report.
Average output per ship berthday (project UNNATI), helped major from 12,458 Tonnes in FY 2014-15
in Tonnes at major ports: ports enhance efficiency in berth to 16,500 Tonnes in FY 2019-20.
Modernisation and efficiency productivity. The last six-year trend is given
improvements at major ports below.
On an average, output per ship
under the Sagarmala initiative
berthday improved significantly
Major ports: Average output per ship berth day (in MT)
16541 16419
15333
14576
12458 13156
Act will empower major ports to been given the right to fix Union Budget 2021, the Union
operate with greater efficiency their tariffs, which will act as a Finance Minister announced
on account of full autonomy in reference tariff for the purposes seven port projects worth
decision-making and modernising of bidding for public-private more than H2,000 crore to be
the institutional framework of partnership (PPP) projects. awarded through the PPP mode.
major ports. § The PPP operators will be free Directionally, the government is
to fix tariffs based on market targeting to move away from the
The salient features of the Major
conditions. existing service port operating
Port Authorities Bill 2020 are as
model to the PPP model for
under: § Liberty in the development of a
existing operating terminal at the
§ Decentralise the decision- port masterplan (independent
major ports. The seven identified
making process. from ULB).
projects and details are given
§ The port authorities have now PPP projects at major ports: In below.
Sagarmala Pariyojana: Sagarmala reduce logistics cost for EXIM and Model concession agreement for
Pariyojana, launched in 2015, domestic trade. PPP projects: According to the
focuses on enhancing the Ministry of Shipping of the GOI,
Port capacity target: The Ministry
performance of the logistics a Model Concession Agreement
of Shipping, along with the
sector in India by setting up new (MCA) was finalised to bring
State Governments, is striving to
mega ports, modernising existing transparency and uniformity to
increase the overall port capacity
ports and developing 14 Coastal contractual agreements that
to 3,500+ million Metric Tonnes
Employment Zones (CEZs) and major ports would enter with
Per Annum (MMTPA) to cater
Coastal Employment Units. More selected bidders for projects
to the projected traffic of 2,500
than 605 projects with a total under the Build, Operate and
MMTPA by 2025. Towards this
cost of H8.80 lakh crore were Transfer (BOT) model. In January
end, 249 port modernisation
identified under Sagarmala. Of 2018, a revised MCA was approved
projects have been identified.
these, 89 projects worth H0.14 by GOI to make major ports in
Out of these, 107 port capacity
lakh crore were completed and India more investor-friendly and
expansion projects (costing
443 projects worth H4.32 lakh make the investment climate in
H67,962 crore) were identified
crore are under implementation the port sector more attractive.
from the port master plans of 12
and development. The project Some salient features of the
major ports and are expected to
aims to promote port-led revised MCA provide for relaxed
add 794 MMTPA to the major port
development with a view to exits, expansion, lower charges for
capacity over the next 20 years.
the long-term growth trajectory This offers excellent business consist of 64 berths spanning
of the economy. The government opportunities as private players across 18,900+ meters of quay
is striving to develop ports into like CONCOR enjoy a lion’s share length and two single-point
manufacturing ecosystems in inland rail-based container moorings to facilitate the handling
that attract trade as well as transport in India. of Dry Bulk, Liquid Cargo, Crude
investments. The industry Oil, Containers, Ro-Ro and Project
Opportunities also exist in
has undergone significant Cargo. Our operational facilities
declared PPP projects at major
changes with the introduction are equipped with the latest
ports. From seven identified
of new policies, amendments cargo-handling facilities, which
projects by GoI, key focus and
to existing policies, increase in are not only best-in-class but
aligned with business synergy for
cargo traffic, spurt in private are also capable of handling the
APSEZ ports are JNPT container
participation and development largest vessels calling at Indian
terminal, the Kandla fertiliser
of new greenfield ports. Given ports.
berth and Tuticorin projects.
Sagarmala’s scope and the huge
APSEZ formed a strategic
investment requirement, the key
4. Performance overview collaboration with CMA Terminals
lies in effective and timely project
During the year under review, and with Mediterranean Shipping
execution.
the performance of the Company Company to jointly operate
3.1 Logistics Industry was encouraging. The Company two container terminals with a
The logistics industry is led across all fronts; Mundra combined capacity of 4.2 million
fragmented and dominated port continued to be the largest TEUs at Mundra port. Both these
by unorganised players. It commercial port in India, handling terminals put together handled
is estimated that organised 144.38 MMT of cargo in FY 2020- 3.70 million TEUs, a growth rate of
players account for around 10% 21. The total cargo handled across 36% over the last year.
of the total logistics market all Adani ports is 247.28 MMT. Dry ALL currently operates five
share. With the customer base, volume crossed 109.72 MMT and logistics parks, 60 rakes (42
including a range of industries increased 9% on YOY basis and Container, 9 GPWIS, 2 AFTO and
such as retail, automobile, container volume crossed 7.22 7 Agri Rakes), 400,000 sq. ft
telecom, pharmaceuticals and million TEUs, increase of 16% on a of warehousing space, 5,000+
heavy industries, the logistics YOY basis. containers, 0.9 million metric
industry requires significant
The Company maintained a tons of grain silos and 9 inland
investments. There is a need
growth record better than the rest waterways vessels. ALL set itself
for a comprehensive logistics
of the industry and registered a a target of 15+ logistics parks,
policy that eases requirement
11% growth in cargo volumes in 200+ rakes, 30 million sq. ft
of approvals, coordination with
FY 2020-21. It will continue to of warehouse space, 15,000+
multiple agencies, ensures
lead innovative practices, adopt containers, 2.2 million metric
effective monitoring and promotes
technology and set examples of Tonnes of grain silos and 25 inland
a tech-driven approach. This, in
efficient port operations. waterways vessels by 2025.
turn, will help India’s logistics
sector leap into becoming one of The performance of other ports Shanti Sagar International
the most promising sectors of the was as under: Dredging Pvt. Ltd. (SSIDPL)
Indian economy. - Dhamra Port handled cargo of has a total fleet of 19 dredgers,
32.38 MMT, a growth of 9% YOY the largest in India. Our port
Opportunities: Strategic
basis services include marine, intra-
disinvestment by Government of
port transport, storage and other
India. - Ennore Port handled cargo of
value-added and evacuation
2.93 MMT, a growth of 53% YOY
CCEA granted in-principle services for a diverse range of
basis
approval for the strategic customers, primarily terminal
disinvestment of the Government - Tuna Port handled cargo of 7.18 operators, shipping lines and
of India (GoI) share in Container MMT, a growth of 11% YOY basis agents, exporters, importers
Corporation of India (CONCOR). - Hazira Port handled cargo of and other port users. This helps
The GoI decided to sell 30.8% 21.95 MMT, a growth of 1% YOY us diversify income sources,
in CONCOR, along with transfer basis eliminate revenue leakage, reduce
of management control. In - From this year Krishnapatnam financial risks and compete
December 2019, the Department and Dighi ports were added to our more effectively. Consequently,
of Investment and Public portfolio. our cargo and service mix has a
Asset Management appointed significant effect on the results of
three advisors for strategic Performance highlights operations.
disinvestment in CONCOR. The eleven ports and terminals
While the situation is still and Krishnapatnam) could result government policies and high
unfolding, the likelihood of the in stiff competition for common concentration of business with
recurrence of a severe economic hinterland container cargo. few shipping lines / customers,
impact is low for the following geographical expansion.
Apart from port infrastructure,
four counts: Operational Risk: Demurrage,
there are challenges on the
a) The vaccination program is commodity front. With the theft of shipment, change in
ongoing and the government has government’s focus on domestic dimension of cargo, damage to
now opened it to everyone over 18 thermal coal production and assets etc.
years of age, giving more emphasise on climate Growth Risk: Intense global /
b) Policymakers are better change (through promotion of domestic competition rendering
prepared this time, learning from renewable energy), thermal coal pricing & commercial terms to
experiences of last year and the imports into India could face a be unsustainable, incompatible
making the right policy choices on downside. Similarly, government allied infrastructure, execution of
containment measures, has given more focus on domestic projects, M&A and integration.
c) Global economy is on a spiral fertilisers production especially
urea fertilisers, which used to Reputational Risk: Negative
with key trading partners of India perception of stakeholders due to
already past second/third wave be major import commodity in
the fertiliser’s basket in the past. any untoward incident, accident /
of the pandemic and ongoing mishap.
vaccination programs, and Revival of domestic urea fertiliser
manufacturing plants will reduce Profitability & Liquidity Risk:
d) Firms are better prepared this
the imported urea demand in the Risk of adverse movement in
time to shift critical business
coming years. Similar risks also forex, interest rate, failure to
swiftly in a virtual framework,
arise in agro commodities imports. obtain funds at right cost, capital
having developed business
intensive & high gestation period
continuity programs last year. With improvements in physical
projects etc.
port performance with respect
All these factors suggest that ESG risk: Risk due to rising sea
to connectivity and operational
overall economic impact of this levels, natural calamities, risk
efficiency at major ports,
wave may not be big and that due to fatalities, risk due to
challenges could emerge for
overall growth projections by non-adherence to international
APSEZ ports. These shifts in
various agencies in the range of standards of governance.
efficiency and competition offer
11.0-12.5% has limited downside.
wider choice to customers to Technology risk: Data recovery,
The ports sector should witness a
shift their volumes from one port disruption in the operation of the
corresponding growth buoyancy
to another to reduce their cost. system, cyber security breach,
of 9.0-10.5%.
Inter-port competition with similar adoption of artificial intelligence
Through Sagarmala initiatives physical performance parameters and robotic-led process
and investment by private players could mean more bargaining automation.
in private ports, the country powers to customers.
has already built ports cargo People Risk: Attracting / retaining
Looking beyond the pandemic requisite talent, labour strikes and
handling capacity in Indian ports
impact on cargo throughput, huge dependence on contractual
sectors. In the recent past, the
localised impact on ongoing workforce.
growth in Indian ports volumes
infrastructure developments and
has remained subdued, where Projects completion related risks:
expansions projects could pose
cargo volumes have not matched Local crisis, pandemic, material
project completion challenges
capacity addition. Major ports availability issue, manpower
within a stipulated time frame.
reported less than 50% of capacity availability.
APSEZ developed a ERM
utilisation in FY 2020-21. The APSEZ Audit Committee
framework for risk identification,
This oversupply of capacity has assessment, evaluation and reviews the report on risk
translated into a substantial management, which periodically management on a quarterly basis
regional over-capacity, one of the identifies such risks, evaluates and recommends corrective
key concerns of the port industry. consequences, initiates risk actions for implementation.
Resulting inter-port competitions mitigation strategies and The risk assessment developed
have become challenging, leading implements corrective actions at APSEZ as per OHSAS 18001
port operators to rethink business wherever required. The scope of standards are reviewed regularly
strategies. For example, over ERM framework at APSEZ is as or as and when any change in
capacities in container terminals follows: system/ process takes place
at the Chennai port cluster (ports or any incident takes place.
Strategic and Economic Risk:
of Chennai, Kattupalli, Ennore APSEZ has been making steady
Economic uncertainty, slowdown,
The Company’s average employee and tested career model and The Company generated Earnings
age is 37 years, indicating proposition to high-end talent, before Interest,Depreciation
youth, energy and vibrancy. A leading to more than 95% and Tax (EBIDTA) (excluding
culture of learning and growth retention. Empowerment in all foreign exchange gain/loss)
are embedded, matching the aspects and decision-making from operational income of
demographic profile. A rewards helps individuals grow quickly and H8,063 crore during FY 2020-21
system helps meet and re-define take total ownership of results, compared to H7,565 crore in the
organisational commitments keeping the business agile. previous year.
by keeping the customer at
Organisational success is Profit before Tax (PBT) for
the centre of all thinking.
attributed to celebrating talent FY 2020-21 stood at H6,292 crore
Continuously re-defining and
and success by way of career compared to H4,244 crore in the
enhancing performance is
and recognition, driving a culture previous year.
encouraged and rewarded at all
of meritocracy and remaining
levels. Net profit for FY 2020-21 is
contemporary and agile.
H5,049 crore compared to H3,785
Attracting best-in-class talent,
crore in the previous financial
enhancing net worth through 7. Financial review
year.
targeted investments and Consolidated financial per
learning and growing them to formance Total comprehensive income
higher responsibilities have been The Company recorded a total attributable to equity holders
the organisation’s core people income to the tune of H14,520 of the parent for FY 2020-21 is
management belief. This has led crore during FY 2020-21 H4,979 crore compared to H3,800
to an extraordinary performance compared to H13,734 crore in the crore in previous financial year.
assurance for customers and corresponding previous financial Earnings per Share (EPS) stood at
partners. It provides a stable year. H24.58 on a face value of H2 each.
Notes Total EBIDTA by finance cost for revenue for the year.
a. Above ratios are based on the year. 7. Net Profit Margin: Profit for the
consolidated financial statements 4. Current Ratio: Current assets year by total income for the year.
of the Company. by current liabilities (excluding 8. Return on Average Net Worth:
b. Definitions of Ratios current maturity of long-term Profit for the year by average net
1. Debtors Turnover: Average borrowings). worth for the year.
trade receivable by revenue from 5. Debt Equity Ratio: Total debt Operating EBIDTA means
operations for the year. (excluding working capital operating income less operating
2. Inventory Turnover: Average borrowings) by total equity at the expenses, employee costs and
inventory by revenue from end of the year. other/administrative expenses,
operations for the year. 6. Operating Profit Margin: excluding foreign exchange gain/
3. Interest Coverage Ratio: Operating EBIDTA by operating loss.
AICTPL (CT3)
Energy performance
3,303
0
3,060
0 2,994
0 0 98,795
2,929
67,634 78,215
72,278 2,771
0
85,916 76,075 1,02,701
46,929 50,235 75,389
Emission performance
700
22,503
659
655
638
15,405 17,816
16,463
5.3
2.7
2.4
1.8 1.8
90.1 90.1 61.2 61.2 67.9 67.9
45.6 45.6 68.4 68.4
ACMTPL (CT4)
Energy performance
5,528 0 37,117
4,874 0 35,594
28,910
0 3,476 3,233
23,224
3,877
0
14,865 37375 42567 47,443 47,877
22,491 14,151 13,656 11,850
7,627 10,760
Emission performance
972
827
8,107 8,454
692
659
626
5,290 6,585
FY 17 FY 18 FY 19 FY 20 FY 21
Water performance
1.3
0.9
0.8 0.6 0.8
FY 17 FY 18 FY 19 FY 20 FY 21
Reference
1 http://www.cea.nic.in/reports/others/thermal/tpece/cdm_co2/user_guide_ver13.pdf
2 https://www.aqua-calc.com/convert/power/kilowatt-to-gigajoule-per-hour
3 https://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_1_Ch1_Introduction.pdf
4 https://bharatpetroleum.com/Our-Businesses/I&C/Industrial-Fuel-Products/Fuels.aspx
5 https://www.bharatpetroleum.com/our-businesses/industrial-&-commercial/conversion-table.aspx
6 Calculated - (NCV*Density/1000)
7 https://www.ipcc-nggip.iges.or.jp/public/2006gl/
8 https://beeindia.gov.in/sites/default/files/2Ch1.pdf
9 Taken from Fuel Provider
10 https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/
cms/guidance_docs/pdfs/000/000/469/original/CDP-Scope-3-Category11-Guidance-Oil-Gas.
pdf?1479754082
11 https://www.epa.gov/sites/production/files/2018-03/documents/emission-factors_mar_2018_0.pdf
12 https://www.ipcc.ch/site/assets/uploads/2018/02/SYR_AR5_FINAL_full.pdf
13 https://indiaghgp.org/sites/default/files/AIR%20Transport%20Emission.pdf
14 https://indiaghgp.org/sites/default/files/Rail%20Transport%20Emission.pdf
15 https://cea.nic.in/wp-content/uploads/pdm/2020/12/growth_2020.pdf
Ernst & Young Associates LLP (EY) was engaged by Adani Ports and Special Economic Zone Limited
(the ‘Company’) to provide independent assurance on its Integrated Report FY 2020-21 (the ‘Report’)
covering salient features of business as well as sustainability, including performance during the
period 1st April 2020 to 31st March 2021.
The development of the Report, based on the <IR> Integrated Reporting Framework by International
Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI) Standards, and its
subsequent updates in 2018 and 2020; its content and presentation is the sole responsibility of the
management of the Company. Our responsibility in performing our assurance activities is to the
management of the Company only and in accordance with the terms of reference agreed with the
Company. We do not therefore accept or assume any responsibility for any other purpose or to any
other person or organization. Any dependence that any such third party may place on the Report is
entirely at its own risk. The assurance statement should not be taken as a basis for interpreting the
Company’s overall performance, except for the aspects mentioned in the scope below.
Scope of assurance
The scope of assurance covers the following aspects of the Report:
► Data and information related to the Company’s sustainability performance for the period 1 st
April 2020 to 31st March 2021;
► The Company’s internal protocols, processes, and controls related to the collection and
collation of sustainability performance data;
► Remote Verification of data and related information through consultations at the Company’s
Head Office in Ahmedabad and desktop review of the following entities reported data:
▪ Adani Murmugao Port Terminal Pvt. Ltd. ▪ Adani Warehousing Services Pvt. Ltd.
▪ Adani Kattupalli Port Ltd. ▪ Adani Agri Logistics Ltd.
▪ Marine Infrastructure Developer Pvt. Ltd. ▪ Adani Agri Logistics (MP) Ltd.
▪ Adani Ennore Container Terminal Pvt. ▪ Adani Agri Logistics (Harda) Ltd.
Ltd. ▪ Adani Agri Logistics (Hoshangabad) Ltd.
▪ Adani Vizag Coal Terminal Pvt. Ltd. ▪ Adani Agri Logistics (Satna) Ltd.
▪ The Dhamra Port Company Ltd. ▪ Adani Agri Logistics (Ujjain) Ltd.
▪ Adani Kandla Bulk Terminal Pvt. Ltd. ▪ Adani Agri Logistics (Dewas) Ltd.
▪ Adani Hazira Port Ltd. ▪ Adani Agri Logistics (Kotkapura) Ltd.
▪ Adani Petronet (Dahej) Port Pvt. Ltd. ▪ The Adani Harbour Services Ltd.
▪ Adani Ports and Special Economic ▪ Shanti Sagar International Dredging Ltd.
Zone Ltd. ▪ Karnavati Aviation Pvt. Ltd.
▪ Adani International Container Terminal ▪ Mundra International Airport Pvt. Ltd.
Pvt. Ltd ▪ MPSEZ Utilities Ltd.
▪ Adani Logistics Services Pvt. Ltd. ▪ Adani Hospital Mundra Pvt. Ltd.
▪ Adani CMA Mundra Terminal Pvt. Ltd. ▪ Mundra SEZ Textile and Apparel Park Pvt.
▪ Adani Logistics Ltd. Ltd.
Assurance criteria
The assurance engagement was planned and performed in accordance with the International
Federation of Accountants’ International Standard for Assurance Engagements Other than Audits or
Reviews of Historical Financial Information (ISAE 3000) and the third edition of AccountAbility’s
AA1000 Assurance Standard (AA1000 AS). Our evidence-gathering procedures were designed to
obtain a ‘Limited’ level of assurance (as set out in ISAE 3000) on reporting principles and a ‘Type 2,
Moderate’ level of assurance (as per AA1000 AS ), as well as conformance of the disclosures to the
specified GRI Standards.
Our Observations
The Company has developed the Report in accordance with the <IR> Integrated Reporting Framework
by International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI)
Standards. The Report includes a description of the Company’s stakeholder engagement, materiality
assessment and relevant performance disclosures on the material topics. Some data pertaining to
key performance disclosures underwent change as part of our assurance process. The company may
consider strengthening its internal guidance on sustainability indicators to ensure uniform reporting
from all its Logistics and Agri-Logistics business locations.
Our Conclusion
On the basis of our review scope and methodology, our conclusions are as follows:
• Inclusivity: The Company has described its stakeholder engagement approach and activities in
the Report. We are not aware of any matter that would lead us to conclude that the Company
has not applied the principle of inclusivity in engaging with the key stakeholder groups
identified in the Report.
• Materiality: The Company has identified key issues material to its ability to create value and
has described the process for materiality analysis in the Report. Nothing has come to our
attention that causes us to believe that material issues so identified have been excluded from
the Report by the Company.
• Responsiveness: We are not aware of any matter that would lead us to believe that the
Company has not applied the responsiveness principle in its engagement with stakeholders
identified in the Report on material aspects covering its sustainability performance.
• Impact: As per the information provided to us, we are not aware of any matter that would lead
us to conclude that the criteria related to the impact principle has not been applied for the key
stakeholders.
Further, nothing has come to our attention that causes us not to believe that the data has been
presented fairly, in material respects, in keeping with the IIRC and GRI Standards, and the Company’s
reporting principles and criteria.
Our assurance team and independence
Our assurance team, comprising of multidisciplinary professionals, has been drawn from our climate
change and sustainability network and undertakes similar engagements with a number of significant
Indian and international businesses. As an assurance provider, EY is required to comply with the
independence requirements set out in International Federation of Accountants (IFAC) Code of Ethics 1
for Professional Accountants. EY’s independence policies and procedures ensure compliance with
the Code.
Chaitanya Kalia
Partner
17.06.2021
Mumbai
1
International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants. This Code establishes ethical
requirements for professional accountants.
Directors’ Report
Your Directors are pleased to present the 22nd Annual Report along with the audited financial statements of
your Company for the financial year ended March 31, 2021.
Financial Performance
The audited financial statements of the Company as on March 31, 2021 are prepared in accordance with the
relevant applicable Ind AS and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and provisions of the Companies
Act, 2013 (“Act”).
There are no material changes and commitments affecting the financial position of the Company between the
end of the financial year and the date of this report.
Tracks Management Services Pvt. Ltd (“Brahmi”) and across the country; (ii) tap private partnership
Adani Tracks Management Services Pvt. Ltd (“Adani opportunity for developing the first mile – last
Tracks”) and Sarguja Rail Corridor Pvt. Ltd (“Sarguja”) mile connectivity and increasing the network
and their respective shareholders and creditors capacity for rail transport; and (iii) create center
(“Scheme”) under sections 230 to 232 and other of excellence to bring best practices, operational
applicable provisions of the Act – efficiency, technology integration and common
skill set.
(a) amalgamation of Brahmi with APSEZ, with effect
from the Appointed Date 1 i.e. April 1, 2021, (c) The Scheme will result in, inter alia, the following
pursuant to the provisions of Sections 230-232 benefits:
and/or other applicable provisions of the Act.
(i) consolidation of the rail business, productive
(b) amalgamation of Adani Tracks with Sarguja, with utilization of combined resources, operational
effect from the Appointed Date 2 i.e. April 2, 2021, and administrative efficiencies, economics
pursuant to the provisions of Sections 230-232 of scale, reduction in overheads and other
and/or other applicable provisions of the Act. expenses, reduction in the multiplicity
of legal and regulatory compliances and
(c) transfer of the Divestment Business Undertaking
consequential creation of greater value for
(Mundra Rail Business), as a going concern on Slump
shareholders and all other stakeholders;
Sale basis, with effect from the Appointed Date 2 i.e.
April 2, 2021, by APSEZ to Sarguja, for a lump sum (ii) track footprint of Sarguja will supplement
consideration under Sections 230-232 and/or other to APSEZ’s strategy of providing end to end
applicable provisions of the Act and in accordance logistics for hinterland to hinterland cargo
with Section 2(42C) of the Income Tax Act. movement;
(b) It is the objective of APSEZ to (i) consolidate the Issue of Equity Shares on preferential basis
rail assets under one entity which will diligently
Pursuant to the shareholders’ approval received at
work for the development, maintenance and
Extra-ordinary General Meeting held on April 6, 2021,
operation of existing and new railway lines
During the year under review, your Company has • Dighi Roha Rail Ltd. (JV of Dighi Port Ltd.)
not accepted any fixed deposits within the meaning Pursuant to the provisions of Section 129, 134 and
of Section 73 of the Act read with rules made there 136 of the Act read with rules made thereunder
under. and Regulation 33 of the SEBI Listing Regulations,
the Company has prepared consolidated financial
Non-Convertible Debentures
statements of the Company and a separate statement
During the year under review, your Company has
containing the salient features of financial statement
issued and allotted 30,000 Rated, Listed, Secured
of subsidiaries, joint ventures and associates in Form
Redeemable Non-Convertible Debentures (NCDs) of
AOC-1 forms part of this Annual Report.
face value of H 10 lakh each aggregating to H 3,000
crore on a private placement basis listed on the The annual financial statements and related detailed
Wholesale Debt Market Segment of BSE Ltd. information of the subsidiary companies shall be
made available to the members of the holding and
Further, your Company has redeemed 700 NCDs on
subsidiary companies seeking such information on
April 23, 2021, of face value of H 10 lakh each issued
all working days during business hours. The financial
on private placement basis.
statements of the subsidiary companies shall also be
Particulars of loans, guarantees or kept for inspection by any members during working
investments hours at the Company’s registered office and that of
the respective subsidiary companies concerned. In
The provisions of Section 186 of the Act, with
accordance with Section 136 of the Act, the audited
respect to a loan, guarantee, investment or security
financial statements, including consolidated financial
is not applicable to the Company, as the Company is
statements and related information of the Company
engaged in providing infrastructural facilities which
and audited accounts of each of its subsidiaries,
is exempted under Section 186 of the Act. The details
are available on website www.adaniports.com.
of investments made during the year under review are
Pursuant to Section 134 of the Act read with rules
disclosed in the financial statements.
made thereunder, the details of developments of
subsidiaries and joint ventures of the Company are Pursuant to provision of Section 203 of the Act, Mr.
covered in the Management Discussion and Analysis Deepak Maheshwari ceased to be Chief Financial
Report which forms part of this Report. Officer & Key Managerial Personnel of the Company
with effect from close of business hours on May 5, 2021.
Directors and Key Managerial Personnel
During the year under review, Mr. Mukesh Kumar, Directors’ Responsibility Statement
IAS (DIN: 06811311), representing Gujarat Maritime Pursuant to Section 134(5) of the Act, the Board of
Board, resigned as a Director of the Company w.e.f Directors, to the best of their knowledge and ability,
May 22, 2020. The Board placed on record the deep state the following:
appreciation for valuable services and guidance
a. that in the preparation of the annual financial
provided by him during the tenure of his Directorship.
statements, the applicable accounting standards
Mr. P. S. Jayakumar (DIN: 01173236) was appointed have been followed and there are no material
as an Additional Director and also an Independent departures;
Director for a period of five consecutive years w.e.f
b. that such accounting policies have been selected
July 23, 2020, subject to approval of members at the
and applied consistently and judgements and
ensuing Annual General Meeting. In the opinion of the
estimates have been made that are reasonable
Board, he possesses requisite expertise, integrity and
and prudent so as to give a true and fair view of
experience (including proficiency) for appointment
the state of affairs of the Company as at March
as an Independent Director of the Company. 31, 2021 and of the profit of the Company for the
Mrs. Avantika Singh Aulakh, IAS (DIN: 07549438), year ended on that date;
Vice Chairman & CEO, Gujarat Maritime Board was c. that proper and sufficient care has been taken
appointed as an Additional Director of the Company for the maintenance of adequate accounting
w.e.f September 15, 2020, subject to approval of records in accordance with the provisions of the
members at the ensuing Annual General Meeting. Act for safeguarding the assets of the Company
The Company has received declarations from all the and for preventing and detecting fraud and other
Independent Directors of the Company confirming irregularities;
that they meet with the criteria of independence as d. that the annual financial statements have been
prescribed in Section 149(6) of the Act and Regulation prepared on a going concern basis;
16(1)(b) of the SEBI Listing Regulations and there has
e. that proper internal financial controls were in
been no change in the circumstances which may
place and that the financial control are adequate
affect their status as an Independent Director.
and operating effectively;
Pursuant to the requirements of the Act and Articles
f. that proper systems to ensure compliance with
of Association of the Company, Dr. Malay Mahadevia
the provisions of all applicable laws are in place
(DIN: 00064110) is liable to retire by rotation and
and are adequate and operating effectively.
being eligible offers himself for re-appointment.
Corporate Governance and Management the financial year were on an arm’s length basis
Discussion and Analysis and were in the ordinary course of business. Your
Separate reports on Corporate Governance Company has not entered into any transactions with
compliance and Management Discussion and Analysis related parties which could be considered material in
as stipulated by SEBI Listing Regulations forms terms of Section 188 of the Act.
part of this Annual Report along with the required Accordingly, the disclosure of related party
Certificate from a Practising Company Secretary transactions as required under Section 134(3)(h) of
regarding compliance of the conditions of Corporate the Act in Form AOC 2 is not applicable.
Governance as stipulated.
Significant and material orders passed
In compliance with Corporate Governance by the regulators or courts or tribunals
requirements as per the SEBI Listing Regulations, impacting the going concern status of the
your Company has formulated and implemented a Company
Code of Conduct for all Board members and senior
There are no significant and material orders passed
management personnel of the Company, who have
by the Regulators or Courts or Tribunals which would
affirmed the compliance thereto.
impact the going concern status and the Company’s
Business Responsibility Report future operations.
The Business Responsibility Report for the year ended Insurance
March 31, 2021 as stipulated under Regulation 34 of
Your Company has taken appropriate insurance for all
SEBI Listing Regulations is annexed which forms part
assets against foreseeable perils.
of this Annual Report.
Sustainability
Prevention of Sexual Harassment at
Workplace Business sustainability is an important part of decision
making process for your Company. Sustainability
As per the requirement of The Sexual Harassment
framework provides input to identify risks and
of Women at Workplace (Prevention, Prohibition &
opportunities and formulate mitigation strategy. All
Redressal) Act, 2013 and rules made thereunder,
the subsidiaries and joint ventures are also part of
your Company has constituted Internal Complaints
the sustainability framework. This framework widely
Committee which is responsible for redressal of
covers all the aspects of Environmental, Social
complaints related to sexual harassment. During
and Governance (ESG) right from assessing topics
the year under review, there were no complaints
material to business by considering risks, externalities
pertaining to sexual harassment.
and stakeholders’ concern; prioritized to be relevant
Annual Return in short, recover in medium and resilient in long term.
Pursuant to Section 92(3) read with Section 134(3) The entire process is overseen by Board and other
(a) of the Act, the Annual Return as on March 31, concerned committees for the long-term success of
2021 is available on the Company’s website on the business.
https://www.adaniports.com/-/media/Project/ Your Company believes stakeholder engagement
Ports/Investor/Investor-Downloads/Annual-Return/ finds its place at the core of business strategies which
AnnualReturn2021.pdf thrives for inclusive development. Therefore, the
Company has outlined its commitment in stakeholder
Related Party Transactions
engagement policy and developed the stakeholder
All the related party transactions entered into during engagement procedure.
The Company has created terrestrial green cover year 2022. They have confirmed that they are not
over an area of 965 hectares across all ports, ICDs disqualified from continuing as Statutory Auditors of
and agri-logistic sites. The Company has completed the Company.
the mangrove afforestation in 2,989 hectares and
The Notes to the financial statements referred in
continuing mangrove conservation of 2,596 hectares
the Auditors Report are self-explanatory. There are
at Mundra, Gujarat and 9 hectares at Dhamra, Odisha,
no qualifications or reservations or adverse remarks
3.64 hectares at Krishnapatnam, Andhra Pradesh.
or disclaimers given by Statutory Auditors’ of the
A unique pilot project of development of bio-shield
Company and therefore do not call for any comments
for protection of coastal areas has been completed
under Section 134 of the Act. The Auditors’ Report is
at Tankari village Jambusar, Gujarat and a new bio-
enclosed with the financial statements in this Annual
shield project has been initiated at Malpur village,
Report.
Jambusar, Gujarat.
Secretarial Audit Report
Occupational Health and Safety
Pursuant to the provisions of Section 204 of the Act
Apart from the ISO certification, your Company has
read with the rules made thereunder, your Company
adopted its own Safety Management System (SMS)
has re-appointed Mr. Ashwin Shah, Practising
which is based on the philosophy that safety is
Company Secretary to undertake the Secretarial Audit
primarily line management’s responsibility. The SMS
of the Company. The Secretarial Audit Report for FY
comprises 20 elements, with each element being
2020-21 is annexed which forms part of this report as
owned by an element owner who is from the line
Annexure-A. There are no qualifications, reservations
management at business site. These element owners
or adverse remarks in the Secretarial Audit Report of
are accountable for implementation, monitoring and
the Company.
sustenance of their respective element.
To,
The Members,
Adani Ports and Special Economic Zone Limited
Information pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014:
i) The ratio of the remuneration of each Director to the median remuneration of the employees of the
Company for the FY 2020-21 and the percentage increase in remuneration of each Director, Chief Financial
Officer, Chief Executive Officer, Company Secretary in the FY 2020-21:
Name of Directors/KMP Ratio of remuneration % increase in
to median remuneration remuneration
of employees in the financial year
Executive Directors:
Mr. Gautam S. Adani 33.69:1 -
Dr. Malay Mahadevia 135.16:1 0.21
Mr. Karan Adani 25.65:1 6.60
Non-Executive Directors:
Mr. Rajesh S. Adani1 1.20:1 (9.09)
Mr. Mukesh Kumar, IAS 2
- -
Mrs. Avantika Singh Aulakh3 - -
Prof. G. Raghuram 4
3.37:1 30.23
Mr. G. K. Pillai
4
3.58:1 41.67
Mrs. Nirupama Rao4 2.80:1 N.A.
Mr. Bharat Sheth 4
2.77:1 N.A.
Mr. P. S. Jayakumar5 - N.A.
Key Managerial Personnel:
Mr. Deepak Maheshwari N.A. (0.44)
Mr. Kamlesh Bhagia N.A. 4.89
1
Reflects sitting fees.
2
Reflects sitting fees and resigned as Director on May 22, 2020.
3
Reflects sitting fees and appointed as Director on September 15, 2020.
4
Reflects sitting fees and commission.
5
Reflects sitting fees and commission. Appointed as Director on July 23, 2020.
ii) The percentage increase in the median remuneration of employees in the financial year: 5.92%
iii) The number of permanent employees on the rolls of Company: 1,161 as on March 31, 2021.
iv) Average percentile increase already made in the salaries of employees other than the managerial personnel
in the last financial year and its comparison with the percentile increase in the managerial remuneration
and justification thereof and point out if there are any exceptional circumstances for increase in the
managerial remuneration:
- Average increase in remuneration of employees excluding KMP: 3%
- Average increase in remuneration of KMP: 0.59%
- KMP salary increases are decided based on the Company’s performance, individual performance, inflation,
prevailing industry trends and benchmarks.
v) Affirmation that the remuneration is as per the Remuneration Policy of the Company:
The Company affirms remuneration is as per the Remuneration Policy of the Company.
c Details of CSR amount spent against other than ongoing projects for the FY 2020-21.
(1) (2) (3) (4) (5) (6) (7) (8)
Sr. Name of the Project Item Local Location of Amount Mode of Mode of Implementation –
No. from the Area the Project allocated Imple- Through Implementing Agency
list of ac- (Yes / State District for the mentation Name CSR Reg. No.
tivities in No) project -Direct
Schedule (H In (Yes/No).
VII to the crores).
Act.
1 COVID support- PM (viii) Yes PAN India 55.00 No PM CARES -
CARES Fund Fund
2 COVID support – CM (viii) Yes Across Gujarat 5.00 No CM Relief -
Relief Fund Fund
3 Empowering youth for (vii) Yes Across Gujarat 1.00 No Adani Skill CSR00000586
employment or self- Development
sustainability through Centre
Skill Trainings
4 Education and Social (i) & (ii) Yes PAN India 11.99 Yes - -
development
a Member of more than 10 (ten) Committees or do not hold the office of Director in more than 10
acts as an Independent Director in more than 7 (ten) public companies as on March 31, 2021.
(seven) Listed Companies and Chairman of more
The composition of the Board is in conformity with
than 5 (five) Committees (Committees being,
the Regulation 17 of the SEBI Listing Regulations.
Audit Committee and Stakeholders’ Relationship
Committee) across all the Companies in which The composition of the Board of Directors and
he/she is a Director. All the Directors have made the number of other Directorship and Committee
necessary disclosures regarding Committee positions held by them as on March 31, 2021 are
positions held by them in other Companies and as under:
Name, Designation & DIN of Director Category of No. of other Details of Committee4
Directorship Directorship held3 (other than APSEZL)
(other than APSEZL) Chairman Member
Mr. Gautam S. Adani, Promoter & 5 - -
Chairman & Managing Director Executive
DIN: 00006273
Mr. Rajesh S. Adani, Promoter & Non- 5 - 4
Director Executive
DIN: 00006322
Dr. Malay Mahadevia, Executive 4 - -
Whole-Time Director
DIN: 00064110
Mr. Karan Adani, Executive 8 - -
Whole-Time Director & CEO
DIN: 03088095
Mrs. Avantika Singh Aulakh, IAS, Non Independent 9 1 -
Director1 & Non Executive
DIN: 07549438
Prof. G. Raghuram, Independent & 2 - -
Director Non Executive
DIN: 01099026
Mr. G. K. Pillai, Independent & 1 - 1
Director Non Executive
DIN: 02340756
Mr. Bharat Sheth, Independent & 2 - 1
Director Non Executive
DIN: 00022102
Mrs. Nirupama Rao Independent & 3 - 1
Director Non Executive
DIN: 06954879
Mr. P.S. Jayakumar2, Independent & 8 3 6
Director Non Executive
DIN: 01173236
1
Appointed as Director w.e.f. September 15, 2020.
2
Appointed as Director w.e.f. July 23, 2020.
3
Excluding Private Ltd. Companies, which are not the subsidiaries of Public Ltd. Companies, Foreign
Companies, Section 8 Companies and Alternate Directorships.
4
Includes only Audit Committee and Stakeholders’ Relationship Committee.
Board Meeting and Procedure: enable the Board to take informed decisions.
The internal guidelines for Board / Committee The Company Secretary in consultation with
meetings facilitate the decision making process the Senior Management prepares the detailed
at the meetings of the Board/Committees in an agenda for the meetings.
informed and efficient manner. Agenda papers and Notes on Agenda are
The Board Meetings are governed by structured circulated to the Directors, in advance, in the
agenda. All major agenda items are backed defined Agenda format. All material information’s
by comprehensive background information to are being circulated along with Agenda papers for
facilitating meaningful and focused discussions at available to the Board of Directors for discussions
the meeting. Where it is not practicable to attach and consideration at every Board Meeting. The
any document to the Agenda, the same is tabled Board periodically reviews compliance reports of
before the meeting with specific reference to this all laws applicable to the Company as required
effect in the Agenda. In special and exceptional under Regulation 17(3) of the SEBI Listing
circumstances, additional or supplementary Regulations.
item(s) on the Agenda are permitted. In order to The important decisions taken at the Board
transact some urgent business, which may come / Committee meetings are communicated to
up after circulation agenda papers, the same is departments concerned promptly. Action taken
placed before the Board by way of Table Agenda report on the decisions taken at the meeting(s)
or Chairman’s Agenda. Frequent and detailed is placed at the immediately succeeding meeting
deliberation on the agenda provides the strategic of the Board / Committee for noting by the Board/
roadmap for the future growth of the Company. Committee.
Minimum 4 (four) pre-scheduled Board meetings Due to the exceptional circumstances caused
are held every year. Apart from the above, by the COVID-19 pandemic and consequent
additional Board meetings are convened by giving relaxations granted, all the Board/ Committee
appropriate notice to address the specific needs meetings in FY 2020-21 were held through Video
of the Company. In case of business exigencies or Conferencing.
urgency of matters, resolutions are also passed by
During the year under review, Board met seven
way of circulation.
times on May 5, 2020, July 7, 2020, August 11,
Detailed presentations are made at the Board 2020, November 3, 2020, February 9, 2021, March
/ Committee meetings covering finance and 3, 2021 and March 7, 2021. The Board meets at least
operations of the Company, global business once in every quarter to review the Company’s
environment, all business areas of the Company operations and financial performance. The
including business opportunities, business maximum time gap between any two meetings is
strategy and the risk management practices not more than 120 days. The necessary quorum
before taking on record the quarterly / half yearly was present in all the meetings.
/ annual financial results of the Company.
The details of attendance of Directors at the
The required information as enumerated in Part A
Board Meetings and at the last Annual General
of Schedule II to SEBI Listing Regulations is made
Meeting are as under:
In the table below, the specific areas of focus or expertise of individual board members have been highlighted.
Name of Director Areas of Skills/ Expertise
Business Financial Risk Global Corporate Merger & Technology
Leadership Expertise Management Experience Governance Acquisition &
& ESG Innovation
Mr. Gautam S. Adani
Mr. Rajesh S. Adani
Mr. Karan Adani
Dr. Malay Mahadevia
Mrs. Avantika Singh Aulakh, - - - - -
IAS
Prof. G. Raghuram
Mr. G. K. Pillai - -
Mr. Bharat Sheth - - -
Mrs. Nirupama Rao - - -
Mr. P. S. Jayakumar
Note - Each Director may possess varied combinations of skills/ expertise within the described set of
parameters and it is not necessary that all Directors possess all skills/ expertise listed therein.
Deep dives and immersion sessions are conducted The Board has also adopted separate code of
by senior executives on their respective ports/ conduct with respect to duties of Independent
business units. Key aspects that are covered in Directors as per the provisions of the Act.
these sessions include:
3. Committees of the Board
• Industry / market trends The Board Committees play a vital role in ensuring
• The Port’s performance sound Corporate Governance practices. The
• Growth Strategy Committees are constituted to handle specific
activities and ensure speedy resolution of the
• Overview of business operation of major
diverse matters. The Board Committees are set
subsidiaries
up under the formal approval of the Board to carry
Confirmation as regards independence of out clearly defined roles which are considered
Independent Directors: to be performed by members of the Board, as a
In the opinion of the Board, all the existing part of good governance practice. The Board
Independent Directors and the one who are supervises the execution of its responsibilities
proposed to be appointed at the Annual General by the Committees and is responsible for their
Meeting, fulfil the conditions specified in the action. The minutes of the meetings of all the
SEBI Listing Regulations and are independent of Committees are placed before the Board for
the Management. review.
Note on appointment/re-appointment of Director: A) Audit Committee:
Dr. Malay Mahadevia, Whole-Time Director is The Audit Committee of the Company was
retiring at the ensuing Annual General Meeting and constituted on September 22, 2001 and
being eligible, offers himself for re-appointment. subsequently reconstituted from time to time to
Mr. P. S. Jayakumar (Non-Executive, Independent) comply with statutory requirement.
and Mrs. Avantika Singh Aulakh, IAS (Non- The Audit Committee acts as a link among the
Executive, Non-Independent) were appointed Management, the Statutory Auditors, Internal
as an Additional Directors w.e.f July 23, 2020 Auditors and the Board of Directors to oversee
and September 15, 2020 respectively. The the financial reporting process of the Company.
Company has received notice from the member The Committee’s purpose is to oversee the quality
of the Company signifying its intention for their and integrity of accounting, auditing and financial
appointment as Directors of the Company. reporting process including review of the internal
The brief resume and other information required audit reports and action taken report.
to be disclosed under this section is provided in Terms of reference:
the Notice convening the Annual General Meeting. The powers, role and terms of reference of
b. Changes, if any, in accounting policies and 12. Reviewing, with the management, the
practices and reasons for the same; performance of statutory and internal
auditors, adequacy of the internal control
c. Major accounting entries involving
systems;
estimates based on the exercise of
judgment by management; 13. Reviewing the adequacy of internal audit
function, if any, including the structure
d. Significant adjustments made in the
of the internal audit department, staffing
financial statements arising out of audit
and seniority of the official heading the
findings;
department, reporting structure coverage
e. Compliance with listing and other and frequency of internal audit;
legal requirements relating to financial
14. Discussion with internal auditors of any
statements;
significant findings and follow up there on;
f. Disclosure of any related party transactions;
15. Reviewing the findings of any internal
g. Modified opinion(s) in the draft audit investigations by the internal auditors into
report. matters where there is suspected fraud or
5. Reviewing, with the management, the irregularity or a failure of internal control
quarterly financial statements before systems of a material nature and reporting
submission to the board for approval; the matter to the board;
16. Discussion with statutory auditors before financial condition and results of operations;
the audit commences, about the nature and
2. Statement of significant related party
scope of audit as well as post-audit discussion
transactions submitted by management;
to ascertain any area of concern;
3. Management letters / letters of internal
17. To look into the reasons for substantial
control weaknesses issued by the statutory
defaults, if any, in the payment to the
auditors;
depositors, debenture holders, shareholders
(in case of non-payment of declared 4. Internal audit reports relating to internal
dividends) and creditors; control weaknesses;
18. To review the functioning of the Whistle 5. The appointment, removal and terms of
Blower mechanism; remuneration of the Chief Internal Auditor.
The Board of Directors review the minutes of ii) Performance Evaluation Criteria for
the Nomination and Remuneration Committee Independent Directors:
Meetings at its subsequent Board Meetings. The performance evaluation criteria for
independent directors are determined
Mr. Kamlesh Bhagia, Company Secretary and
by the Nomination and Remuneration
Compliance Officer acts as Secretary of the
Committee. An indicative list of factors that
Committee.
may be evaluated include participation and
Remuneration Policy: contribution by a director, commitment,
The remuneration policy of the Company is effective deployment of knowledge and
directed towards rewarding performance, based expertise, effective management of
on review of achievements on a periodic basis. relationship with stakeholders, integrity
The Company endeavors to attract, retain, develop and maintenance of confidentiality and
and motivate the high-caliber executives and to independence of behaviour and judgement.
incentivize them to develop and implement the
iii) Remuneration to Executive Directors:
Group’s Strategy, thereby enhancing the business
The remuneration of the Executive Directors
value and maintain a high performance workforce.
is recommended by the Nomination and
The policy ensures that the level and composition
Remuneration Committee to the Board based
of remuneration of the Directors is optimum.
on criteria such as industry benchmarks, the
i) Remuneration to Non-Executive Directors: Company’s performance vis-à-vis the industry,
The remuneration by way of commission to responsibilities shouldered, performance/
the non-executive directors is decided by track record, macro-economic review on
the Board of Directors. The members at the remuneration packages of heads of other
Annual General Meeting held on August 6, organisations. On the recommendation of the
2019 approved the payment of remuneration Nomination and Remuneration Committee,
by way of commission to the non-executive the remuneration paid/payable by way of
directors of the Company, of a sum not salary, perquisites and allowances (fixed
exceeding 1% per annum of the net profits of component), incentive and/or commission
the Company, calculated in accordance with (variable components) to its Executive
the provisions of the Act for a period of 5 years Directors within the limits prescribed under
commencing from April 1, 2020. In addition the Act is approved by the Board of Directors
to commission, non-executive directors are and by the members in the General Meeting.
paid sitting fees of Rs. 50,000 for attending
The Executive Directors are not being paid
Board and Audit Committee and Rs. 25,000
sitting fees for attending meetings of the
for attending other Committees and actual
Board of Directors and its Committee.
reimbursement of expenses incurred for
attending each meeting of the Board and Details of Remuneration:
Committee. i) Non-Executive Directors:
The details of sitting fees and commission
The Company has also taken a Directors’ &
paid to Non-Executive Directors during the
Officers’ Liability Insurance Policy.
FY 2020-21 are as under:
3
Appointed as Director w.e.f. September 15, 2020.
Other than sitting fees and commission paid to Non-Executive Directors, there were no pecuniary
relationships or transactions by the Company with any of the Non-Executive Directors of the Company.
The Company has not granted stock options to Non-Executive Directors.
iii) Details of shares of the Company held by Directors was constituted on January 30, 2007
Directors as on March 31, 2021 are as under: and subsequently reconstituted from time to
Name No. of shares held time to comply with statutory requirement.
Mr. Gautam S. Adani 1 Terms of reference:
Mr. Rajesh S. Adani 1 The powers, role and terms of reference of
Stakeholders Relationship Committee covers the
Except above, none of Directors of the areas as contemplated under the SEBI Listing
Company holds equity shares of the Company Regulations and Section 178 of the Act. The brief
in their individual capacity. The Company terms of reference of Stakeholders Relationship
does not have any Employees’ Stock Option Committee are as under:
Scheme and there is no separate provision for
1. Resolving the grievances of the security
payment of Severance Fees.
holders including complaints related to
C) Stakeholders’ Relationship Committee: transfer/transmission of shares, non-receipt
The Stakeholders Relationship Committee of of annual report, non-receipt of declared
dividends, issue of new/duplicate certificates, 5. Carrying out any other function as is referred
general meetings etc.; by the Board from time to time or enforced
by any statutory notification / amendment or
2. Reviewing the measures taken for effective
modification as may be applicable.
exercise of voting rights by shareholders;
Meeting, Attendance & Composition of the
3. Reviewing of adherence to the service
Stakeholders’ Relationship Committee:
standards adopted in respect of various
During the year under review, Stakeholders
services being rendered by the Registrar &
Relationship Committee met four times on May
Share Transfer Agent;
5, 2020, August 7, 2020, November 2, 2020 and
4. Reviewing the various measures and February 8, 2021.
initiatives taken for reducing the quantum
The composition of the Stakeholders Relationship
of unclaimed dividends and ensuring timely
Committee and details of attendance of the
receipt of dividend warrants/annual reports/
members at the meetings held during the year are
statutory notices by the shareholders of the
given below:
Company;
The Board of Directors review the minutes of the D) Sustainability and Corporate Social Responsibility
Stakeholders Relationship Committee Meetings Committee:
at its subsequent Board Meetings. The Sustainability and Corporate Social
Responsibility Committee of the Company was
Mr. Kamlesh Bhagia, Company Secretary and
constituted on May 15, 2014 and subsequently
Compliance Officer acts as Secretary of the
reconstituted from time to time to comply with
Committee.
statutory requirement.
Prof. G. Raghuram, Chairman of the Stakeholders’
Terms of reference:
Relationship Committee was present at the last
The powers, role and terms of reference of
Annual General Meeting to answer shareholder
Sustainability and Corporate Social Responsibility
queries.
Committee covers the areas as contemplated
Details of complaints received and redressed under Section 135 of the Act. The brief terms of
during the year: reference of Sustainability and Corporate Social
Opening During the year Pending Responsibility Committee are as under:
Balance Received Resolved Complaints
1. To review from time to time Corporate Social
Nil 6 6 Nil
Responsibility (CSR) policy in the light of
All complaints have been resolved to the emergent situation and statutory frame work;
satisfaction of shareholders.
The Board of Directors review the minutes of the Management Committee covers the areas as
Sustainability and Corporate Social Responsibility contemplated under Regulation 21 of the SEBI
Committee Meetings at its subsequent Board Listing Regulations. The brief terms of reference
Meetings. of Risk Management Committee are as under:
Mr. Kamlesh Bhagia, Company Secretary and 1. To review the Company’s risk governance
Compliance Officer acts as Secretary of the structure, risk assessment and minimization
Committee. procedures and the guidelines, strategies and
policies for risk mitigation on short term as
CSR Policy:
well as long term basis;
The CSR Policy of the Company is available on
the website of the Company at https://www. 2. To monitor and review the risk management
adaniports.com/Investors/Corporate-Governance. plan of the Company;
by any statutory notification / amendment or Committee met three times on August 7, 2020,
modification as may be applicable. November 2, 2020 and February 8, 2021.
Meeting, Attendance & Composition of the Risk The composition of the Committee and details of
Management Committee: attendance of the members at the meetings held
During the year under review, Risk Management during the year are given below:
The Board of Directors review the minutes of the 4. To issue duplicate equity and preference
Risk Management Committee Meetings at its share certificates and debenture certificate;
subsequent Board Meetings.
5. To apply for dematerialization of the equity,
Mr. Kamlesh Bhagia, Company Secretary and preference shares and debentures;
Compliance Officer acts as Secretary of the
6. To do all such acts, deeds or things as may
Committee.
be necessary or incidental to the exercise of
F) Transfer Committee: above powers.
The Transfer Committee of the Company
4. Subsidiary Companies:
was constituted on September 25, 2000 and
The Company does not have any material
subsequently reconstituted from time to time to
non-listed subsidiary in which the Company is
comply with statutory requirement. No committee
required to nominate an Independent Director
meeting was held during the year under review.
of the Company on the Board of the subsidiary.
Terms of reference: The subsidiaries of the Company function with
1. To approve and register transfer and/or an adequately empowered Board of Directors and
transmission of equity and preference shares sufficient resources.
and debentures; For more effective governance, the Company
2. To subdivide, consolidate and issue equity monitors performance of subsidiary companies,
and preference share certificates and/ inter alia, by following means:
or debenture certificate on behalf of the 1. Financial statements, in particular
Company; investments made by unlisted subsidiary
3. To affix or authorise fixation of common seal companies, are reviewed quarterly by the
of the Company on the equity, preference Company’s Audit Committee.
share certificates and debenture certificate 2. Minutes of unlisted subsidiary companies are
of the Company; placed before the Board regularly.
Stock Exchanges all price sensitive and other investors / analysts after the declaration of
information which are material and relevant the quarterly, half-yearly and annual results
to the investors. are submitted to the National Stock Exchange
of India Ltd. (NSE) and BSE Ltd. (BSE) as well
c) Earnings Calls and Presentations to Analysts:
as uploaded on the Company’s website.
At the end of each quarter, the Company
organizes meetings / conference call with Your Company has maintained consistent
analysts and investors. Press release and communication with investors at various
presentations made to the institutional forums organized by investment bankers.
750 51000
APSEZL Share Price
650 48000
45000
Sensex
550 42000
450 39000
36000
350 33000
250 30000
Dec-20
Aug-20
Jun-20
Sep-20
Nov-20
Oct-20
Apr-20
Jul-20
Feb-21
Jan-21
May-20
Mar-21
Months
k) Registrar & Transfer Agent: The Shareholders may note that both the
M/s. Link Intime India Pvt. Ltd. is appointed unclaimed dividend and corresponding shares
as Registrar and Transfer (R&T) Agent of the transferred to the IEPF Authority including all
Company for both Physical and Demat Shares. benefits accruing on such shares, if any, can be
The registered office address is given below: claimed back by them from IEPF Authority after
following the procedure (i.e. an application
C-101, 247 Park, L B S Marg,
in E-form No. IEPF-5) prescribed in the Rules.
Vikhroli West, Mumbai-400083
Shareholders may refer Rule 7 of the said Rules
Tel: +91-22-4918 6270 | Fax: +91-22-4918 6060
for Refund of shares / dividend etc.
E-mail: [email protected]
Website: www.linkintime.co.in m) Share Transfer System:
In terms of Regulation 40(1) of SEBI Listing
The Shareholders are requested to correspond
Regulations, as amended, securities can be
directly with the R&T Agent for transfer/
transferred only in dematerialized form w.e.f.
transmission of shares, change of address, queries
April 1, 2019, except in case of request received
pertaining to their shares, dividend etc.
for transmission or transposition of securities.
l) Transfer to Investor Education and Protection Further, SEBI has fixed March 31, 2021 as the cut-
Fund (IEPF): off date for re-lodgement of transfer deeds and
In terms of the Section 125 of the Act, the the shares that are re-lodged for transfer shall
amount that remained unclaimed for a period of be issued only in demat mode. Members holding
seven years is required to be transferred to the shares in physical form are requested to consider
Investor Education and Protection Fund (IEPF) converting their holdings to dematerialized
administered by the Central Government. form. Transfers of equity shares in electronic
During the year under review, the unclaimed form are effected through the depositories with
dividend amount for the year 2012-13 (final) was no involvement of the Company. The Board has
transferred to the IEPF established by the Central delegated the authority for approving transfer,
Government under applicable provisions of the transmission etc to the Transfer Committee.
Act. The Company obtained following certificate(s)
In terms of Section 124(6) of the Act read with from a Practising Company Secretary and
Investor Education and Protection Fund Authority submitted the same to the stock exchanges
(Accounting, Auditing, Transfer and Refund within stipulated time:
Rules, 2016), the Company has transferred the 1. Certificate confirming due compliance of
shares in respect of which the dividend has not share transfer formalities by the Company
been claimed for a period of seven years or more pursuant to Regulation 40(9) of the SEBI
to the demat account of IEPF Authority. The Listing Regulations for half year ended
Company had communicated to all the concerned September 30, 2020 and March 31, 2021
shareholders individually whose shares were respectively with the Stock Exchanges; and
liable to be transferred to IEPF. The Company
2. Certificate regarding reconciliation of the
had also given newspaper advertisements, before
share capital audit of the Company on
such transfer in favour of IEPF. The Company had
quarterly basis.
also uploaded the details of such shareholders
and shares transferred to IEPF on the website All share transfer and other communication
of the Company at https://www.adaniports.com/ regarding share certificates, change of address,
Investors/Corporate-Governance. dividend etc. should be addressed to R & T Agent
of the Company at the address given above.
It manages its exposure to these risks through Company’s policy that no trading in derivatives
derivative financial instruments. The Company’s for speculative purposes may be undertaken.
risk management activities are subject to the The decision of whether and when to execute
management, direction and control of Treasury derivative financial instruments along with its
Team of the Company under the framework of Risk tenure can vary from period to period depending
Management Policy for Currency and Interest rate on market conditions and the relative costs of the
risk as approved by the Board of Directors of the instruments. The tenure is linked to the timing
Company. The Company’s Treasury Team ensures of the underlying exposure, with the connection
appropriate financial risk governance framework between the two being regularly monitored.
for the Company through appropriate policies and
t) Site location:
procedures and that financial risks are identified,
“Adani House”, Navinal Island, Mundra - 370421,
measured and managed in accordance with the
Kutch, Gujarat.
Company’s policies and risk objectives. It is the
v) Rating:
International Rating
Rating Agency Facility Rating/Outlook
Standard & Poor's Long-term Foreign Currency Issuer Credit Rating BBB -/ Stable
Moody's Long-term Foreign Currency Issuer Rating Baa3/ Negative
Fitch Long-term Foreign Currency Issuer Default Rating BBB -/ Negative
Domestic Rating
Rating Agency Facility Rating/Outlook
CARE Long Term Facility AA+/ Stable
ICRA Long Term Facility; Short Term Facility AA+/ Stable A1+
India Rating Long Term Facility; Short Term Facility AA+/ Stable A1+
imparted to the independent directors are the Directors of the Company is debarred or
available on the website of the Company disqualified by the Securities and Exchange
at https://www.adaniports.com/Investors/ Board of India / Ministry of Corporate Affairs
Corporate-Governance. or any such authority from being appointed
j) With a view to regulate trading in securities or continuing as Director of the Company and
by the directors and designated employees, the same is also attached to this Report.
the Company has adopted a Code of Conduct p) Total fees for all services paid by the Company
for Prohibition of Insider Trading.
and its subsidiaries, on a consolidated basis,
k) The company has put in place succession to the statutory auditor and all entities in the
plan for appointment to the Board and to network firm / network entity of which the
senior management. statutory auditor is a part, is given below:
l) The Company complies with all applicable M/s. Deloitte Haskins & Sells LLP
secretarial standards.
(H in lakhs)
m) The Company has complied with all the Payment to Statutory Auditor FY 2020-21
mandatory requirements specified in Audit Fees 123.50
Regulations 17 to 27 and clauses (b) to (i) Limited Review 105.00
of Regulation 46(2) of the SEBI Listing
Certification Fees & other 198.37
Regulations. It has obtained a certificate
services
affirming the compliances from CS Ashwin
Reimbursement of Expenses 4.28
Shah, Practising Company Secretary and the
Total 431.15
same is attached to this Report.
n) As required under Regulation 36(3) of the q) As per the requirement of the Sexual
SEBI Listing Regulations, particulars of Harassment of Women at Workplace
Director seeking re-appointment at the (Prevention, Prohibition & Redressal) Act,
ensuing Annual General Meeting are given in 2013 and rules made thereunder, your
the Annexure to the Notice of the 22nd Annual Company has constituted Internal Complaints
General Meeting to be held on July 12, 2021. Committee which is responsible for redressal
o) The Company has obtained certificate from of complaints related to sexual harassment.
M/s. Chirag Shah & Associates, Practising During the year under review, there were no
Company Secretaries confirming that none of complaints pertaining to sexual harassment.
We have examined the compliance of Corporate certify that the Company has complied with the
Governance by Adani Ports and Special Economic conditions of Corporate Governance as stipulated in
Zone Limited (“the Company”) for the year ended the applicable regulations of SEBI (Listing Obligations
on March 31, 2021 as stipulated in the applicable and Disclosure Requirements) Regulations, 2015.
regulations of SEBI (Listing Obligations and Disclosure
We further state that such compliance is neither an
Requirements) Regulations, 2015 of the said Company
assurance as to the future viability of the Company
with the Stock Exchanges.
nor the efficiency or effectiveness with which the
The compliance of conditions of Corporate management has conducted the affairs of the
Governance is the responsibility of the management. Company
Our examination was limited to a review of
procedures and implementations thereof adopted
by the Company for ensuring the compliance of the
conditions of Corporate Governance. It is neither an
audit nor an expression of opinion on the financial
CS Ashwin Shah
statements of the Company.
Company Secretary
In our opinion and to the best of our information Place: Ahmedabad C. P. No. 1640
and according to the explanations given to us, we Date: May 4, 2021 UDIN: F001640C000396804
To,
The Members of
Adani Ports and Special Economic Zone Limited
Adani Corporate House, Shantigram,
Near Vaishno Devi Circle,
S. G. Highway, Khodiyar,
Ahmedabad - 382421.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of
Adani Ports and Special Economic Zone Limited having CIN L63090GJ1998PLC034182 and having registered
office Adani Corporate House, Shantigram, Near Vaishno Devi Circle, S. G. Highway, Khodiyar, Ahmedabad
382421. (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of
issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of
the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors
Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations
furnished to us by the Company & its officers, We hereby certify that none of the Directors on the Board of the
Company as stated below for the Financial Year ending on March 31, 2021 have been debarred or disqualified
from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
Ministry of Corporate Affairs or any such other Statutory Authority.
Sr. No. Name of Director DIN Date of appointment in Company
1. Mr. Gautam S. Adani 00006273 26/05/1998
2. Mr. Rajesh S. Adani 00006322 26/05/1998
3. Dr. Malay Mahadevia 00064110 20/05/2009
4. Mr. Karan Adani 03088095 24/05/2017
5. Prof. G. Raghuram 01099026 14/05/2012
6. Mr. G. K. Pillai 02340756 19/10/2012
7. Mrs. Nirupama Rao 06954879 22/04/2019
8. Mr. Bharat Sheth 00022102 15/10/2019
9. Mrs. Avantika Singh Aulakh, IAS 07549438 15/09/2020
10. Mr. P. S. Jayakumar 01173236 23/07/2020
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of
the management of the Company. Our responsibility is to express an opinion on these based on our verification.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Chirag Shah
Membership No.: 5545
Date: May 4, 2021 CP No.: 3498
Place: Ahmedabad UDIN : F005545C000223831
To,
The Board of Directors,
Adani Ports and Special Economic Zone Limited
We, Karan Adani, Whole-Time Director & CEO and Deepak Maheshwari, Chief Financial Officer of Adani Ports and
Special Economic Zone Limited (“the Company”), to the best of our knowledge and belief, hereby certify that;
a) We have reviewed the financial statements and the cash flow statements of the Company for the year
ended March 31, 2021 and:
i) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
ii) these statements together present a true and fair view of the Company’s affairs and are in compliance
with existing accounting standards, applicable laws and regulations.
b) There are no transactions entered into by the Company during the year ended March 31, 2021, which are
fraudulent, illegal or violative of the Company’s Code of Conduct.
c) We are responsible for establishing and maintaining disclosure controls and procedures and internal
controls over financial reporting for the Company and we have:
i) designed such disclosure controls and procedures or caused such disclosure controls and procedures
to be designed under our supervision to ensure that material information relating to the Company,
including its subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
ii) designed such internal control over financial reporting or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements of external purpose in accordance
with Indian Accounting Standards (Ind AS);
iii) evaluated the effectiveness of the Company’s disclosure, controls and procedure;
iv) disclosed in this report, changes, if any, in the Company’s internal control over financial reporting that
occurred during the Company’s most recent fiscal year that has materially affected or is reasonable
likely to materially affect, the Company’s internal control over financial reporting.
d) We have indicated to the Auditors and the Audit Committee, wherever applicable:
i) significant changes, if any, in internal control over financial reporting during the year;
ii) all significant changes in accounting policies during the year, if any, and the same have been disclosed
in the notes to the financial statements;
iii) there have been no instances of significant fraud of which we have become aware and involvement
therein, if any, of the management or an employee having a significant role in the Company’s internal
control system over financial reporting.
Section D: BR Information
1. Details of Director / Directors responsible for BR:
Stakeholder Engagement
Employee Well-being
No.
Inclusive Growth
Policy Advocacy
Customer Value
Business Ethics
Business Ethics
Human Rights
Environment
P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have policy/policies for.... Y Y Y Y Y Y Y Y Y
2 Has the policy been formulated Y Y Y Y Y Y Y Y Y
in consultation with the relevant
stakeholders?
3 Does the policy conform to any The policies reflect the intent of the United Nations Global
national /international standards? If Compact, GRI guidelines and international standards such
yes, specify? as ISO 14001, OHSAS 45001 and NVG Guidelines issued by
Ministry of Corporate Affairs, Government of India.
4 Has the policy being approved by the Y - - Y Y Y - Y -
Board? If yes, has it been signed by
MD/owner/CEO/ appropriate Board
Director?
5 Does the company have a Y Y Y Y Y Y Y Y Y
specified committee of the Board/
Director/ Official to oversee the
implementation of the policy?
6 Indicate the link for the policy to be https://www.adaniports.com/Investors/Corporate-Governance.
viewed online?
7 Has the policy been formally The policies have been communicated to key internal
communicated to all relevant internal stakeholders. The communication is an ongoing process to
and external stakeholders? cover all internal and external stakeholders
8 Does the company have in-house Y Y Y Y Y Y Y Y Y
structure to implement the policy/
policies.
9 Does the Company have a grievance Y Y Y Y Y Y Y Y Y
redressal mechanism related to
the policy/policies to address
stakeholders’ grievances related to
the policy/ policies?
10 Has the company carried out Y Y Y Y Y Y Y Y Y
independent audit/ evaluation of the
working of this policy by an internal
or external agency?
women employees, causal / subcontracted different areas like tribal communities, farmers,
employees, employees with disabilities). women, children, widows and the differently-
Employee training and skills development is an abled persons.
integral aspect of the Company’s human resources For example, the fisher folk in coastal areas
strategy. The Company’s training programs extend such as Mundra, Vizhinjam or Dhamra receive
to all permanent and contractual employees, special attention. Women, similarly, constitute a
which are rolled out as per the annual training major target set around whom Adani Foundation
calendar and individual employee training needs, has developed unique programs. The company
covering a significant percentage of employees. contributes to their sustainable and inclusive
All contractual employees are given mandatory growth, more so in the areas where it operates its
safety training on induction as well as on the job business. It has been promoting CSR activities in
skills related training through the contractors and its operational areas through Adani Foundation in
the Company. the following ways.
Principle 4: Business should respect the interest Education: The Company and Adani Foundation
of, and be responsive towards all stakeholders, run several cost-free schools as well as subsidized
especially those who are disadvantaged, vulnerable schools across India like Adani Vidya Mandir at
and marginalized Ahmedabad, Bhadreshwar and Sarguja, Adani
1. Has the company mapped its internal and Public School at Mundra, Adani DAV School
external stakeholders? at Dhamra, Navchetan Vidhyalay in Junagam
Yes, the Company has mapped its stakeholders (Surat). Many ‘smart’ learning programs as well
and has a systematic stakeholder engagement as projects to adopt government schools are
process. also being run in remote areas. The replicability
and scalability of these educational models are
2. Out of the above, has the company identified ensuring that more and more children pave their
the disadvantaged, vulnerable and marginalized way towards a bright future for themselves, their
stakeholders? families and their community.
Yes, the Company has identified disadvantaged,
Community Health: Bringing healthcare to
vulnerable & marginalized stakeholders. The
remotest of regions, Adani Foundation’s key
Company, through its social arm Adani Foundation
focus is improving access to quality preventive
works for the development of the said stakeholder
and curative services for people belonging to the
group.
weaker sections of the society. In this pursuit, it
3. Special initiatives taken by the Company to runs Mobile Health Care Units (MHCUs) across the
engage with the disadvantaged, vulnerable and nation, hospitals and rural clinics, and organizes
marginalized stakeholders: general as well as specialized health camps.
After more than two decades of creating Sustainable livelihood development: The
opportunities for the underprivileged sections Company and Foundation build social capital
of the society, Adani Foundation has turned its by promoting self-help groups, enhancing
focus towards sustaining the impact of its efforts agricultural practices and organizing skill
across the country. Today, its reach covers 3.67 development training. Specific programmes are
million people in 2,410 villages in 18 States in India. designed for fishermen communities, farmers and
Socially and economically disadvantaged sections cattle owners, youth and women so that they can
of society are the focus of Adani Foundation’s capitalize on their strengths and readily available
CSR efforts. These marginalized clusters resources to become self-reliant.
comprise different segments of the population in
1. Does the Company’s policy on human rights 2. Does the company have strategies / initiatives
cover only the company or extend to the Group / to address global environmental issues such as
Joint Ventures / Suppliers / Contractors / NGOs / climate change, global warming, etc? Y / N. If yes,
others? please give hyperlink for webpage etc.
APSEZ conduct its business in a manner that Yes, the Company is continually doing several
respects the rights and dignity of all people, initiatives to address global environmental issues
complying with all legal requirements. such as climate change and global warming in
The company has instituted and implemented a three different ways (i) through self-actions (ii)
Group level policy on human rights which covers through awareness creation and (iii) through
all direct employees, consultants (including fixed providing support for energy efficient services. The
term appointees), associates, trainees, suppliers, main objective behind all initiatives is to use and
vendors etc. in all companies/businesses of the promote energy efficient technologies to reduce
Group. APSEZ has supplemented the Group’s the energy consumption and related emission
Human Rights Policy by issuing its own set of reduction. The Company has implemented
guidelines showing APSEZ’s commitment towards number of initiatives, which has resulted in saving
protecting the human rights of employees, in fuel consumption and thereby avoided related
vendors, customers and communities, in line with emissions.
the UN Guiding Principles on Business and Human
The Company has also conducted carbon
Rights, recognised frameworks and applicable
footprint assessment for all its operational ports
laws and standards. We are signatory to United
- Dahej, Dhamra, Goa, Ennore, Kattupalli Hazira,
Nations Global Compact whose 2 principles out
Mundra, Tuna & Vizag, two joint ventures AICTPL
of 10 covers the Human rights aspects.
& ACMTPL, Mundra, TAHSL, SSIDL ALL and AALL.
2. How many stakeholder complaints have been Based on the assessment, Company will focus on
received in the past financial year and what reduction in energy consumption and emissions
percent was satisfactorily resolved by the through various technical and technological
Management? interventions. Energy conservation targets are
No stakeholder complaints other than mentioned also taken for respective ports and efforts are
in the Corporate Governance Report were made to achieve the same. The web link is https://
received during the financial year. The Company www.adaniports.com.
3. Does the Company identify and assess potential reduces the demand for energy consumption.
environmental risks? Y/N Golf carts are also used which in comparison to
The Company has acquired International diesel driven cars, generate less emission. Solar
Standards ISO 9001:2015, ISO 14001:2015, ISO lighting and solar water heaters are also installed
45001:2018, ISO 28000:2007, ISO 50001:2018 at various locations within the port. The Company
certifications specifying the requirements for an has installed roof top solar panels of 8.5 MW
Integrated Management System (IMS) as part of capacities at Mundra and thereby reduce the
its objective to improve quality, health, safety and consumption & related emissions of conventional
environment in the work place. energy. The web link is https://www.adaniports.
com.
Yes, the Company regularly identifies and assesses
environmental risk during all stages of its existing 6. Are the Emissions / Waste generated by the
and planned projects being an integral part of Company within the permissible limits given
IMS Certification. Additionally, the Company is by CPCB / SPCB for the financial year being
also carrying out detailed environmental impact reported?
assessment studies to assess all the likely impacts Yes, the company has adopted and implemented
due to project and also prepare environment adequate pollution control measures to maintain
management plan to mitigate those impacts. the norms under desired levels and accordingly
emissions / waste generated are within the
The Company is performing regular environmental
permissible limits given by CPCB/SPCB and the
monitoring of all the environmental parameters
Environment Monitoring data including emissions
to assess the environmental status on a regular
and Waste generation and disposal details are
basis. Additionally, the Company is also carrying
regularly submitted to statutory authorities. Six
other scientific studies including marine
Monthly Compliance Reports of Environment
modelling studies to assess the response of
& CRZ Clearance and annual Environment
marine components and parameters to evaluate
Statement submitted to regulatory authorities
the marine operations safety.
are kept on Company’s website.
4. Does the Company have any project related
As part of vision for Zero Waste, APSEZ has
to Clean Development Mechanism (CDM)? If
taken several initiatives in the handling and
so provide details thereof, in about 50 words
management of waste at all operating port
or so. Also, If Yes, whether any environmental
locations by focusing on 5R principles of waste
compliance report is filed?
management i.e. Reduce, Reuse, Reprocess,
No, the Company does not have any projects Recycle and Recover. As part of the initiative
related to Clean Development Mechanism (CDM). Mundra Port has achieved Zero Waste to Landfill
5. Has the Company undertaken any other Assurance Statement.
initiatives on - clean technology, energy Major initiatives include, Reuse of treated sewage,
efficiency, renewable energy etc.? Y/N. If yes, Recycling of paper, plastic, metal, E-waste, Used
provide hyperlink to web page etc. oil etc., Reprocess of food waste, STP & ETP
The Company has already taken several initiatives sludge, Oily cotton waste etc.
to improve energy efficiency either through
• Various initiatives are implemented for reduction
improved operations or adoption of better
in water and energy consumption footprint.
technologies. The Company has converted all
Such initiatives have not only resulted in net
its diesel operated cranes into electric mode.
environmental benefits but have also reduced
Additionally, the Company has also installed
the operational costs. To meet the fresh water
and operating regenerative crane system which
2. Are the programmes/projects undertaken through make our initiatives become more sustainable
in-house team / own foundation /external NGO/ and being adopted by the community.
Govt. structure /any other organisation?
Principle 9: Business should engage with and
Adani Foundation is the CSR arm of Adani Group, provide value to their customers and consumers in a
aligning its initiatives with the group philosophy responsible manner.
of Growth with Goodness. The Foundation has
The customers have always been pivotal in shaping
proper operational and functional structures
our strategies and developing business. In order to
in place. At various strategic project locations
enhance our customer centricity levels way ahead of
across India, the organization has got both
the market place, we have established a dedicated
human resource and operational infrastructure
Customer Service Cell (CSC). The CSC would be single
for efficient functioning.
point of contact for all the customers trying to reach
In addition, Adani Foundation has partnerships out and interact with us.
and collaborations with organizations of relevant
1. What Percentage of customer complaints /
expertise that include government departments
consumer cases are pending as on the end of FY
& institutions, non-government think-tanks and
2020-21?
agencies as well as community-based knowledge-
There are no customer complaints / consumer
sharing groups, among many others.
cases pending as of end of FY 2020-21.
3. Have you done any impact assessment of your
2. Does the company display product information
initiative?
on the product label, over and above what is
Yes, impact assessments of the ongoing CSR
mandated as per local laws? Yes/No/N.A. /
programs and need/ outcome assessment at grass
Remarks (additional information)
root level through participatory rural appraisals
The Company does not manufacture any product;
are conducted at regular intervals to evaluate and
hence this is not applicable.
continually improve the program implementation
and outcomes. 3. Is there any case filed by any stakeholder against
the company regarding unfair trade practices,
4. What is the Company’s direct monetary
irresponsible advertising and/or anti-competitive
contribution to community development projects
behavior during the last five years and pending
and details of projects undertaken?
as of end of FY 2020-21?
The Company’s monetary contribution to community
There are no such cases against the Company in
development projects in FY 2020-21 was Rs. 72.99
the Court of law.
crore. The focus areas of the Company’s community
development projects are outlined in response to 4. Did your company carry out any consumer survey
Question 5 under Section B. / consumer satisfaction trends?
5. Have you taken steps to ensure that community The Company actively seeks function-wise
development initiative is successfully adopted by feedback from various stakeholders. For example,
the community? Please explain in 50 words. vessel feedback is collected from vessel masters
for each and every vessel handled at the port.
Community members are included in the process
of need assessment, inception, execution and The Company carries out customer satisfaction
utilization of services related to any development survey through deployment of internal resources.
initiative. In addition, efforts are made to involve The survey is normally conducted on an annual
relevant govt. agencies and suitable non-govt. basis and covers feedback of customers across all
organizations. These inclusive approach help port business verticals.
To
The Members of
Adani Ports and Special Economic Zone Limited
statements or our knowledge obtained during influence the economic decisions of users taken on
the course of our audit or otherwise appears to the basis of these standalone financial statements.
be materially misstated.
As part of an audit in accordance with SAs, we exercise
• If, based on the work we have performed, we professional judgment and maintain professional
conclude that there is a material misstatement of skepticism throughout the audit. We also:
this other information, we are required to report
that fact. We have nothing to report in this regard. • Identify and assess the risks of material
misstatement of the standalone financial
Management’s Responsibility for the statements, whether due to fraud or error, design
Standalone Financial Statements and perform audit procedures responsive to those
The Company’s Board of Directors is responsible risks, and obtain audit evidence that is sufficient
for the matters stated in section 134(5) of the Act and appropriate to provide a basis for our opinion.
with respect to the preparation of these standalone The risk of not detecting a material misstatement
financial statements that give a true and fair view of resulting from fraud is higher than for one resulting
the financial position, financial performance including from error, as fraud may involve collusion, forgery,
other comprehensive income , cash flows and changes intentional omissions, misrepresentations, or the
in equity of the Company in accordance with the Ind AS override of internal control.
and other accounting principles generally accepted in • Obtain an understanding of internal financial
India. This responsibility also includes maintenance of control relevant to the audit in order to design
adequate accounting records in accordance with the audit procedures that are appropriate in the
provisions of the Act for safeguarding the assets of circumstances. Under section 143(3)(i) of the
the Company and for preventing and detecting frauds Act, we are also responsible for expressing our
and other irregularities; selection and application of opinion on whether the Company has adequate
appropriate accounting policies; making judgments internal financial controls system in place and the
and estimates that are reasonable and prudent; operating effectiveness of such controls.
and design, implementation and maintenance of • Evaluate the appropriateness of accounting
adequate internal financial controls, that were policies used and the reasonableness of
operating effectively for ensuring the accuracy and accounting estimates and related disclosures
completeness of the accounting records, relevant to made by the management.
the preparation and presentation of the standalone
• Conclude on the appropriateness of
financial statement that give a true and fair view and
management’s use of the going concern basis
are free from material misstatement, whether due to
of accounting and, based on the audit evidence
fraud or error.
obtained, whether a material uncertainty exists
In preparing the standalone financial statements, related to events or conditions that may cast
management is responsible for assessing the significant doubt on the Company’s ability to
Company’s ability to continue as a going concern, continue as a going concern. If we conclude that
disclosing, as applicable, matters related to going a material uncertainty exists, we are required
concern and using the going concern basis of to draw attention in our auditor’s report to the
accounting unless management either intends to related disclosures in the standalone financial
liquidate the Company or to cease operations, or has statements or, if such disclosures are inadequate,
no realistic alternative but to do so. to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of
Those Board of Directors are also responsible for our auditor’s report. However, future events or
overseeing the Company’s financial reporting process. conditions may cause the Company to cease to
Auditor’s Responsibility for the Audit of the continue as a going concern.
Standalone Financial Statements • Evaluate the overall presentation, structure and
content of the standalone financial statements,
Our objectives are to obtain reasonable assurance
including the disclosures, and whether the
about whether the standalone financial statements
standalone financial statements represent the
as a whole are free from material misstatement,
underlying transactions and events in a manner
whether due to fraud or error, and to issue an
that achieves fair presentation.
auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a Materiality is the magnitude of misstatements in the
guarantee that an audit conducted in accordance standalone financial statements that, individually or
with SAs will always detect a material misstatement in aggregate, makes it probable that the economic
when it exists. Misstatements can arise from fraud or decisions of a reasonably knowledgeable user of the
error and are considered material if, individually or in standalone financial statements may be influenced.
the aggregate, they could reasonably be expected to We consider quantitative materiality and qualitative
Report on the Internal Financial Controls Our audit involves performing procedures to obtain
Over Financial Reporting under Clause audit evidence about the adequacy of the internal
financial controls system over financial reporting and
(i) of Sub-section 3 of Section 143 of the their operating effectiveness. Our audit of internal
Companies Act, 2013 (“the Act”) financial controls over financial reporting included
We have audited the internal financial controls obtaining an understanding of internal financial
over financial reporting of Adani Ports and Special controls over financial reporting, assessing the risk
Economic Zone Limited (“the Company”) as of that a material weakness exists, and testing and
March 31, 2021 in conjunction with our audit of the evaluating the design and operating effectiveness
standalone financial statements of the Company for of internal control based on the assessed risk.
the year ended on that date. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of
Management’s Responsibility for Internal material misstatement of the financial statements,
Financial Controls whether due to fraud or error.
The Company’s management is responsible for
We believe that the audit evidence we have obtained
establishing and maintaining internal financial
is sufficient and appropriate to provide a basis for
controls based on the internal control over financial
our audit opinion on the Company’s internal financial
reporting criteria established by the Company
controls system over financial reporting.
considering the essential components of internal
control stated in the Guidance Note on Audit of Meaning of Internal Financial Controls Over
Internal Financial Controls Over Financial Reporting Financial Reporting
issued by the Institute of Chartered Accountants
A company’s internal financial control over financial
of India. These responsibilities include the design,
reporting is a process designed to provide reasonable
implementation and maintenance of adequate internal
assurance regarding the reliability of financial
financial controls that were operating effectively
reporting and the preparation of financial statements
for ensuring the orderly and efficient conduct of its
for external purposes in accordance with generally
business, including adherence to company’s policies,
accepted accounting principles. A company’s internal
the safeguarding of its assets, the prevention and
financial control over financial reporting includes
detection of frauds and errors, the accuracy and
those policies and procedures that (1) pertain to
completeness of the accounting records, and the
the maintenance of records that, in reasonable
timely preparation of reliable financial information, as
detail, accurately and fairly reflect the transactions
required under the Companies Act, 2013.
and dispositions of the assets of the company; (2)
Auditor’s Responsibility provide reasonable assurance that transactions
Our responsibility is to express an opinion on the are recorded as necessary to permit preparation of
Company’s internal financial controls over financial financial statements in accordance with generally
reporting of the Company based on our audit. We accepted accounting principles, and that receipts and
conducted our audit in accordance with the Guidance expenditures of the company are being made only in
Note on Audit of Internal Financial Controls Over accordance with authorisations of management and
Financial Reporting (the “Guidance Note”) issued directors of the company; and (3) provide reasonable
by the Institute of Chartered Accountants of India assurance regarding prevention or timely detection
and the Standards on Auditing prescribed under of unauthorised acquisition, use, or disposition of the
Section 143(10) of the Companies Act, 2013, to the company’s assets that could have a material effect on
extent applicable to an audit of internal financial the financial statements.
controls. Those Standards and the Guidance Note Inherent Limitations of Internal Financial
require that we comply with ethical requirements
Controls Over Financial Reporting
and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial Because of the inherent limitations of internal
controls over financial reporting was established and financial controls over financial reporting, including
maintained and if such controls operated effectively the possibility of collusion or improper management
in all material respects. override of controls, material misstatements due to
(i) In respect of property, plant and equipment information and explanations given to us, no
material discrepancies were noticed on such
a. The Company has maintained proper
verification.
records showing full particulars, including
quantitative details and situation of property, c. According to the information and
plant and equipment. explanations given to us and the records
examined by us and based on the examination
b. Some of the property, plant and equipment
of the registered sale deed/ transfer deed/
were physically verified during the year
conveyance deed provided to us, we report
by the Management in accordance with
that, the title deeds, comprising all the
a programme of verification, which in our
immovable properties of land and acquired
opinion provides for physical verification
buildings which are freehold, are held in the
of all the property, plant and equipment
name of the Company as at the balance sheet
at reasonable intervals. According to the
date, except the following:
In respect of immovable properties of land paragraph 3 of the Order are not applicable to the
and building that have been taken on lease Company and hence not commented upon.
and disclosed as Right of Use Assets in the
(iv) In our opinion and according to the information
standalone financial statements, the lease
and explanations given to us, and considering
agreements are in the name of the Company,
the legal opinion taken by the Company on
where the Company is the lessee in the
applicability of section 185 of the Companies Act,
agreement.
2013, in respect of certain loan transactions and
(ii) As explained to us, the inventories were physically that the same have been given in the ordinary
verified during the year by the Management at course of business, the Company has complied
reasonable intervals and no material discrepancies with the provisions of the Section 185 of the
were noticed on physical verification. Companies Act, 2013 in respect of grant of loans
and providing guarantees and securities, as
(iii) The Company has not granted any loans, secured
applicable. Further, based on the information
or unsecured, to companies, firms, Limited
and explanations given to us, the Company has
Liability Partnerships or other parties covered in
complied with the provisions of Section 186 of the
the register maintained under section 189 of the
Companies Act, 2013 in respect of grant of loans,
Companies Act, 2013. Accordingly, the provisions
making investments and providing guarantees
of sub clauses (a), (b), and (c) of clause (iii) of
and securities, as applicable.
(viii) In our opinion and according to the information by the Company to its subsidiary companies,
and explanations given to us, as at the reporting the Company is in compliance with Sections
date, the Company has not defaulted in the 188 and 177 of the Companies Act, 2013,
repayment of loans or borrowings to financial where applicable, for all transactions with
institutions, banks and dues to debenture the related parties and the details of related
holders. The Company has not taken any loans party transactions have been disclosed in the
from the government. standalone financial statements etc. as required
by the applicable accounting standards.
(ix) In our opinion and according to the information
and explanations given to us, and overall (xiv) During the year, the Company has not made any
examination of the balance sheet, monies raised preferential allotment or private placement of
by way of term loans have been applied by the shares or fully or partly convertible debentures
Company during the year for the purposes for and hence reporting under clause (xiv) of
which they were raised, other than temporary paragraph 3 of the Order is not applicable to the
deployment pending application of proceeds. Company.
The Company has not raised monies by way
(xv) In our opinion and according to the information
of initial public offer or further public offer
and explanations given to us, during the year
(including debt instruments) during the year.
the Company has not entered into any non-
(x) To the best of our knowledge and according to cash transactions with its directors or persons
the information and explanations given to us, connected with him and hence provisions of
no material fraud by the Company or on the section 192 of the Companies Act, 2013 are not
Company by its officers or employees has been applicable.
noticed or reported during the year.
(xvi) The Company is not required to be registered
(xi) In our opinion and according to the information under section 45-IA of the Reserve Bank of India
and explanations given to us, the Company Act, 1934.
has paid/ provided managerial remuneration
in accordance with the requisite approvals
mandated by the provisions of section 197 read
with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence For Deloitte Haskins & Sells LLP
reporting under clause (xii) of paragraph 3 of the Chartered Accountants
Order is not applicable. (Firm’s Registration No 117366W/W-100018)
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
The accompanying notes form an integral part of the standalone financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kartikeya Raval Gautam S. Adani Rajesh S. Adani
Partner Chairman and Managing Director Director
DIN : 00006273 DIN : 00006322
Karan Adani Deepak Maheshwari
Wholetime Director and CEO Chief Financial Officer
DIN: 03088095
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
Balance as at March 31, 2021 406.35 166.53 583.54 - 556.69 2,765.97 7.84 17,128.30 186.06 21,801.28
The accompanying notes form an integral part of the standalone financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kartikeya Raval Gautam S. Adani Rajesh S. Adani
Statutory Reports
The accompanying notes form an integral part of the standalone financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kartikeya Raval Gautam S. Adani Rajesh S. Adani
Partner Chairman and Managing Director Director
DIN : 00006273 DIN : 00006322
Karan Adani Deepak Maheshwari
Wholetime Director and CEO Chief Financial Officer
DIN: 03088095
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
ii. Exchange differences arising on other All assets and liabilities for which fair value is
outstanding long term foreign currency measured or disclosed in the financial statements
monetary items recognised in the Indian are categorized within the fair value hierarchy,
GAAP financial statements for the period described as follows, based on the lowest
ending immediately before the beginning level input that is significant to the fair value
of the first Ind AS financial reporting period measurement as a whole:
i.e. March 31, 2016 were accumulated in the
- Level 1 — Quoted (unadjusted) market prices in
“Foreign Currency Monetary Item Translation
active markets for identical assets or liabilities
Difference Account” (FCMITDA) and were
amortized over the remaining life of the - Level 2 — Valuation techniques for which the
concerned monetary item or financial year lowest level input that is significant to the fair
2019-20, whichever is earlier. value measurement is directly or indirectly
observable
Non-monetary items that are measured in
- Level 3 — Valuation techniques for which the
terms of historical cost in a foreign currency are
lowest level input that is significant to the fair
translated using the exchange rates at the dates
value measurement is unobservable
of the initial transactions.
For assets and liabilities that are recognized in
c) Fair value measurement
the financial statements on a recurring basis,
The Company measures financial instruments, the Company determines whether transfers have
such as, derivatives at fair value at each balance occurred between levels in the hierarchy by re-
sheet date. assessing categorization (based on the lowest
Fair value is the price that would be received to sell level input that is significant to the fair value
an asset or paid to transfer a liability in an orderly measurement as a whole) at the end of each
transaction between market participants at the reporting period.
measurement date. The fair value measurement The Company’s Management determines the
is based on the presumption that the transaction policies and procedures for both recurring fair
to sell the asset or transfer the liability takes value measurement, such as derivative financial
place either: instruments and unquoted financial assets
- In the principal market for the asset or liability, measured at fair value and for non recurring fair
or value measurement, such as an assets under the
scheme of business undertaking.
- In the absence of a principal market, in the
most advantageous market for the asset or External valuers are involved for valuation of
liability significant assets, such as business undertaking
for transfer under the scheme and unquoted
The principal or the most advantageous market financial assets and financial liabilities,
must be accessible by the Company. Involvement of external valuers is decided upon
The fair value of an asset or a liability is measured annually by the Management and in specific
using the assumptions that market participants cases after discussion with and approval by
would use when pricing the asset or liability, the Company’s Audit Committee. Selection
assuming that market participants act in their criteria includes market knowledge, reputation,
economic best interest. independence and whether professional
A fair value measurement of a non-financial asset standards are maintained. The Management
takes into account a market participant’s ability to decides, after discussions with the Company’s
generate economic benefits by using the asset in external valuers, which valuation techniques and
its highest and best use or by selling it to another inputs to use for each case.
market participant that would use the asset in its At each reporting date, the Management analyses
highest and best use. the movements in the values of assets and
The Company uses valuation techniques that are liabilities which are required to be remeasured
appropriate in the circumstances and for which or re-assessed as per the Company’s accounting
sufficient data is available to measure fair value, policies. For this analysis, the Management
maximizing the use of relevant observable inputs verifies the major inputs applied in the latest
and minimizing the use of unobservable inputs. valuation by agreeing the information in the
valuation computation to contracts and other these prices are not directly observable, they are
relevant documents. estimated based on expected cost plus margin.
The Management, in conjunction with the Revenue on take-or-pay charges are recognized
Company’s external valuers, also compares the for the quantity that is the difference between
change in the fair value of each asset and liability annual agreed tonnage and actual quantity
with relevant external sources to determine of cargo handled. The amount recognized as
whether the change is reasonable. revenue is exclusive of goods & service tax where
For the purpose of fair value disclosures, the applicable.
Company has determined classes of assets and
Income in the nature of license fees / waterfront
liabilities on the basis of the nature, characteristics
royalty and revenue share is recognized in
and risks of the asset or liability and the level of
accordance with terms and conditions of
the fair value hierarchy as explained above.
relevant service agreement with customers/ sub
This note summarises accounting policy for fair concessionaire.
value. Other fair value related disclosures are
given in the relevant notes. Income towards infrastructure premium is
recognized as revenue in the year in which
- Disclosures for valuation methods, significant the Company provides access to its common
estimates and assumptions (refer note 32.2 infrastructure.
and 2.3)
Income from long term leases
- Quantitative disclosures of fair value
measurement hierarchy (refer note 32.2) As a part of its business activity, the Company
leases / sub-leases of certain assets on long
- Investment in unquoted equity shares (refer
term basis to its customers. Leases are classified
note 4)
as finance lease whenever the terms of lease
- Financial instruments (including those carried transfer substantially all the risks and rewards
at amortised cost) (refer note 32.1) of ownership to the lessee. All other leases are
d) Revenue recognition classified as operating lease. In some cases, the
Company enters into cancellable lease / sub-lease
Revenue from contracts with customers is
transaction agreement, while in other cases, it
recognised when control of the goods or services
enters into non-cancellable lease / sub-lease
are transferred to the customer at an amount that
agreement. The Company recognizes the income
reflects the consideration to which the Company
based on the principles of leases as set out in
expects to be entitled in exchange for those
relevant accounting standard and accordingly
goods or services.
in cases where the lease / sub-lease agreement
The specific recognition criteria described below are cancellable in nature, the income in the
must also be met before revenue is recognized. nature of upfront premium received / receivable
is recognized on operating lease basis i.e. on
Port Operation Services
a straight line basis over the period of lease /
Revenue from port operation services including sub-lease agreement / date of memorandum of
cargo handling, storage, rail infrastructure and understanding takes effect over lease period and
other ancillary port services are recognized in annual lease rentals are recognized on an accrual
the accounting period in which the services are basis.
transferred to the customer at an amount that
In cases where long term lease / sub-lease
reflects the consideration to which the company
agreement are non-cancellable in nature, the
expects to be entitled in exchange for those
income is recognized on finance lease basis i.e.
services.
at the inception of lease / sub-lease agreement
In cases, where the contracts include multiple / date of memorandum of understanding takes
contract obligations, the transaction price will effect over lease period, the income recognized
be allocated to each performance obligation is equal to the present value of the minimum
based on the standalone selling prices. Where lease payment over the lease period (including
non-refundable upfront premium) which is
When significant parts of plant and equipment which take substantial period of time to get
are required to be replaced at intervals, the ready for its intended use are also included to the
Company depreciates them separately based on extent they relate to the period till such assets
their specific useful lives. Likewise, when a major are ready to be put to use.
inspection is performed, its cost is recognized in
Depreciation is calculated on a straight-line basis
the carrying amount of the plant and equipment
over the estimated useful lives of the assets
as a replacement if the recognition criteria are
as prescribed under Part C of Schedule II of
satisfied. All other repair and maintenance costs
the Companies Act 2013 except for the assets
are recognized in statement of profit or loss as
mentioned below for which useful lives estimated
incurred.
by the management. The Identified component
The Company adjusts exchange differences arising of Property, Plant and Equipment are depreciated
on translation difference/settlement of long term over their useful lives and the remaining
foreign currency monetary items outstanding components are depreciated over the life of the
in the Indian GAAP financial statements for the principal assets. The management believes that
period ending immediately before the beginning these estimated useful lives are realistic and
of the first Ind AS financial statements i.e. March reflect fair approximation of the period over
31, 2016 and pertaining to the acquisition of which the assets are likely to be used.
a depreciable asset to the cost of asset and
The Company has estimated the following useful
depreciates the same over the remaining useful
life to provide depreciation on its certain Property,
life of the asset. The depreciation on such foreign
Plant and Equipment assets based on assessment
exchange difference is recognised from first day
of the financial year. made by expert and management estimate.
At the end of the sub-concession agreement be the carrying value based on depreciation rates
and supplementary concession agreement, all as per management estimate/ Schedule II of the
contracted immovable and movable assets shall Companies Act, 2013 at the end of concession
be transferred to and shall vest in Gujarat Maritime period.
Board (‘GMB’) for consideration equivalent to An item of property, plant and equipment covered
the Depreciated Replacement Value (the ‘DRV’). under Concession agreement, sub-concession
Currently DRV is not determinable, accordingly, agreement and supplementary concession
residual value of contract asset is considered to agreement, shall be transferred to and shall vest
assets. The Company recognises lease liabilities In calculating the present value of lease
to make lease payments and right-of-use assets payments, the Company uses its incremental
representing the right to use the underlying borrowing rate at the lease commencement
assets. date in case the interest rate implicit in the
lease is not readily determinable. After the
i) Right-of-Use Assets
commencement date, the amount of lease
The Company recognises right-of-use assets liabilities is increased to reflect the accretion
(“RoU Assets”) at the commencement date of of interest and reduced for the lease payments
the lease (i.e., the date the underlying asset made. In addition, the carrying amount of
is available for use). Right-of-use assets are lease liabilities is remeasured if there is a
measured at cost, less any accumulated modification, a change in the lease term, a
depreciation and impairment losses, and change in the lease payments (e.g., changes
adjusted for any remeasurement of lease to future payments resulting from a change in
liabilities. The cost of right-of-use assets an index or rate used to determine such lease
includes the amount of lease liabilities payments) or a change in the assessment of
recognised, initial direct costs incurred, an option to purchase the underlying asset.
and lease payments made at or before Lease liabilities has been presented under the
the commencement date less any lease head “Other Financial Liabilities”.
incentives received. Right-of-use assets are
depreciated on a straight-line basis over the iii) Short-term leases and leases of low-value
shorter of the lease term and the estimated assets
useful lives of the assets. The Company applies the short-term lease
If ownership of the leased asset transferred recognition exemption to its short-term
to the company at the end of the lease term leases (i.e., those leases that have a lease term
or the cost reflects the exercise of a purchase of 12 months or less from the commencement
option, depreciation is calculated using the date and do not contain a purchase option).
estimated useful life of the asset. The right- It also applies the lease of low-value assets
of-use assets are also subject to impairment. recognition exemption that are considered
Refer to the accounting policies in section (I) to be low value. Lease payments on short-
Impairment of non-financial assets. term leases and leases of low-value assets
are recognised as expense on a straight-line
ii) Lease Liabilities basis over the lease term.
At the commencement date of the lease, Company as a lessor
the Company recognises lease liabilities
Leases in which the Company does not
measured at the present value of lease
transfer substantially all the risks and rewards
payments to be made over the lease term.
of ownership of an asset are classified
The lease payments include fixed payments
as operating leases. Rental income from
(including in substance fixed payments)
operating lease is recognised on a straight-
less any lease incentives receivable, variable
line basis over the term of the relevant lease.
lease payments that depend on an index
Initial direct costs incurred in negotiating and
or a rate, and amounts expected to be paid
arranging an operating lease are added to
under residual value guarantees. The lease
the carrying amount of the leased asset and
payments also include the exercise price of
recognised over the lease term on the same
a purchase option reasonably certain to be
basis as rental income. Contingent rents are
exercised by the Company and payments
recognised as revenue in the period in which
of penalties for terminating the lease, if the
they are earned.
lease term reflects the Company exercising
the option to terminate. Variable lease Leases are classified as finance leases when
payments that do not depend on an index substantially all of the risks and rewards of
or a rate are recognised as expenses (unless ownership transfer from the Company to
they are incurred to produce inventories) in the lessee. Amounts due from lessees under
the period in which the event or condition finance leases are recorded as receivables
that triggers the payment occurs. at the Company’s net investment in the
leases. Finance lease income is allocated to fair value less costs of disposal, recent market
accounting periods so as to reflect a constant transactions are taken into account. If no such
periodic rate of return on the net investment transactions can be identified, an appropriate
outstanding in respect of the lease. valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
k) Inventories
prices for publicly traded companies or other
Inventories are valued at lower of cost and net available fair value indicators.
realisable value.
The Company bases its impairment calculation on
Stores and Spares: Valued at lower of cost and net
detailed budgets and forecast calculations, which
realizable value. Cost is determined on a moving
are prepared separately for each of the Company’s
weighted average basis. Cost of stores and spares
CGUs to which the individual assets are allocated.
lying in bonded warehouse includes custom duty
These budgets and forecast calculations generally
payable.
cover a period of five years. For longer periods, a
Stores and Spares which do not meet the long-term growth rate is calculated and applied
definition of property, plant and equipment are to project future cash flows after the fifth year.
accounted as inventories.
Impairment losses including impairment on
Costs incurred that relate to future contract inventories, are recognised in the statement of
activities are recognised as ”Project Work-in- profit and loss.
Progress”.
For assets excluding goodwill, an assessment
Project work-in-progress comprise specific
is made at each reporting date to determine
contract costs and other directly attributable
whether there is an indication that previously
overheads including borrowing costs which can
recognised impairment losses no longer exist
be allocated on specific contract cost is, valued at
or have decreased. If such indication exists,
lower of cost and net realisable value.
the Company estimates the asset’s or CGU’s
Net Realizable Value in respect of stores and recoverable amount. A previously recognised
spares is the estimated current procurement impairment loss is reversed only if there has been
price in the ordinary course of the business. a change in the assumptions used to determine
l) Impairment of non-financial assets the asset’s recoverable amount since the last
impairment loss was recognised. The reversal is
The Company assesses, at each reporting date,
limited so that the carrying amount of the asset
whether there is an indication that an asset
does not exceed its recoverable amount, nor
may be impaired. If any indication exists, or
exceed the carrying amount that would have
when annual impairment testing for an asset
been determined, net of depreciation, had no
is required, the Company estimates the asset’s
impairment loss been recognised for the asset
recoverable amount. An asset’s recoverable
in prior years. Such reversal is recognised in the
amount is the higher of an asset’s or cash-
statement of profit and loss unless the asset is
generating unit’s (CGU) fair value less costs of
carried at a revalued amount, in which case, the
disposal and its value in use. Recoverable amount
reversal is treated as a revaluation increase.
is determined for an individual asset, unless the
asset does not generate cash inflows that are Goodwill is tested for impairment annually as at
largely independent of those from other assets or every year end and when circumstances indicate
group of assets. When the carrying amount of an that the carrying value may be impaired.
asset or CGU exceeds its recoverable amount, the
Impairment is determined for goodwill by assessing
asset is considered impaired and is written down
the recoverable amount of CGU to which the
to its recoverable amount.
goodwill relates. When the recoverable amount
In assessing value in use, the estimated future of the CGU is less than its carrying amount, an
cash flows are discounted to their present value impairment loss is recognised. Impairment losses
using a pre-tax discount rate that reflects current relating to goodwill cannot be reversed in future
market assessments of the time value of money periods.
and the risks specific to the asset. In determining
Intangible assets with indefinite useful lives The Company operates a defined benefit gratuity
are tested for impairment annually as at year plan in India, which requires contributions to be
end at the CGU level, as appropriate, and when made to a separately administered fund. The cost
circumstances indicate that the carrying value of providing benefits under the defined benefit
may be impaired. plan is determined using the projected unit credit
method.
m) Provisions, Contingent Liabilities and Contingent
Assets Re-measurements, comprising of actuarial
General gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
Provisions are recognised when the Company
the net defined benefit liability and the return
has a present obligation (legal or constructive)
on plan assets (excluding amounts included in
as a result of a past event, it is probable that
net interest on the net defined benefit liability),
an outflow of resources embodying economic
are recognised immediately in the balance sheet
benefits will be required to settle the obligation
with a corresponding debit or credit to retained
and a reliable estimate can be made of the
earnings through OCI in the period in which they
amount of the obligation. The expense relating to
occur. Re-measurements are not reclassified
a provision is presented in the statement of profit
to statement of profit and loss in subsequent
and loss. Contingent liabilities are not recognised
periods.
but disclosed unless the probability of an outflow
of resources is remote. Contingent assets are Net interest is calculated by applying the
disclosed where inflow of economic benefits is discount rate to the net defined benefit liability
probable. or asset. The Company recognises the following
changes in the net defined benefit obligation as
If the effect of the time value of money is material,
an expense in the statement of profit and loss:
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks - Service costs comprising current service
specific to the liability. When discounting is used, costs, past-service costs, gains and losses on
the increase in the provision due to the passage curtailments and non-routine settlements; and
of time is recognised as a finance cost. - Net interest expense or income
Operational Claim provisions Accumulated leave, which is expected to be
Provisions for operational claims are recognised utilised within the next twelve months, is treated
when the service is provided to the customer. as short term employee benefits. The Company
Further recognition is based on historical measures the expected cost of such absence
experience. The initial estimate of operational as the additional amount that is expected to
claim related cost is revised annually. pay as a result of the unused estimate that has
accumulated at the reporting date. The Company
n) Retirement and other employee benefits treats accumulated leave expected to be carried
Retirement benefit in the form of provident fund forward beyond twelve months as long term
is a defined contribution scheme. The Company compensated absences which are provided for
has no obligation, other than the contribution based on actuarial valuation as at the end of
payable to the provident fund. The Company the period. The actuarial valuation is done as
recognizes contribution payable to the provident per projected unit credit method. The Company
fund scheme as an expense, when an employee presents the entire leave as a current liability
renders the related service. If the contribution in the balance sheet, since it does not have an
payable to the scheme for service received before unconditional right to defer it’s settlement for
the balance sheet date exceeds the contribution twelve months after the reporting date.
already paid, the deficit payable to the scheme
o) Financial instruments
is recognized as a liability after deducting the
contribution already paid. A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another criteria for categorization as at amortized cost or
entity. as FVTOCI, is classified as at FVTPL.
Financial assets Debt instruments included within the FVTPL
Initial recognition and measurement category are measured at fair value with all
All financial assets are recognised initially at fair changes recognized in the statement of profit
value plus in case of financial asset not recorded and loss.
at fair value through profit and loss, transaction Equity investments
cost that are attributable to the acquisition of the
All equity investments in scope of Ind AS
financial assets.
109 are measured at fair value. For all other
Subsequent measurement equity instruments, the Company may make
For purposes of subsequent measurement, an irrevocable election to present in other
financial assets are classified in three categories: comprehensive income subsequent changes in
the fair value. The Company makes such election
- Debt instruments at amortised cost on an instrument-by-instrument basis. The
- Debt instruments, derivative financial classification is made on initial recognition and is
instruments and equity instruments at fair irrevocable.
value through profit or loss (FVTPL)
If the Company decides to classify an equity
- Equity instruments measured at fair value instrument as at FVTOCI, then all fair value
through other comprehensive income (FVTOCI) changes on the instrument, excluding dividends,
Debt instruments at amortised cost are recognized in the OCI. There is no recycling
of the amounts from OCI to P&L, even on sale of
A ‘debt instrument’ is measured at the amortised
investment. However, the Company may transfer
cost if both the following conditions are met:
the cumulative gain or loss within equity.
(a) The asset is held within a business model
Equity instruments included within the FVTPL
whose objective is to hold assets for collecting
category are measured at fair value with all
contractual cash flows, and
changes recognized in the P&L.
(b) Contractual terms of the asset give rise on
Perpetual debt
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on The Company invests in a subordinated perpetual
the principal amount outstanding. debt, redeemable at the issuer’s option, with a
fixed coupon that can be deferred indefinitely if
The category is most relevant to the Company. the issuer does not pay a dividend on its equity
After initial measurement, such financial assets shares. The Company classifies these instruments
are subsequently measured at amortised cost as equity under Ind AS 32.
using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into Derecognition
account any discount or premium on acquisition A financial asset (or, where applicable, a part
and fees or costs that are an integral part of the of a financial asset or part of a group of similar
EIR. The EIR amortisation is included in finance financial assets) is primarily derecognised (i.e.
income in the profit or loss. The losses arising removed from the Company’s balance sheet)
from impairment are recognised in the profit when:
or loss except where the Company has given - The rights to receive cash flows from the asset
temporary waiver of interest not exceeding 12 have expired, or
months period. This category generally applies to
- The Company has transferred its rights
trade, loans and other receivables.
to receive cash flows from the asset or has
Debt instrument at FVTPL assumed an obligation to pay the received
FVTPL is a residual category for debt instruments. cash flows in full without material delay to a
Any debt instrument, which does not meet the third party under a ‘pass-through’ arrangement
and either (a) the Company has transferred
substantially all the risks and rewards of - All lease receivables resulting from transactions
the asset, or (b) the Company has neither within the scope of relevant accounting
transferred nor retained substantially all standard
the risks and rewards of the asset, but has
Under the simplified approach the Company
transferred control of the asset.
does not track changes in credit risk. Rather, it
When the Company has transferred its rights to recognises impairment loss allowance based on
receive cash flows from an asset or has entered lifetime ECLs at each reporting date, right from its
into a pass-through arrangement, it evaluates initial recognition.
if and to what extent it has retained the risks
For recognition of impairment loss on other
and rewards of ownership. When it has neither
financial assets and risk exposure, the Company
transferred nor retained substantially all of the
determines that whether there has been a
risks and rewards of the asset, nor transferred
significant increase in the credit risk since initial
control of the asset, the Company continues to
recognition. If credit risk has not increased
recognise the transferred asset to the extent of
significantly, 12 month ECL is used to provide
the Company’s continuing involvement. In that
for impairment loss. However, if credit risk has
case, the Company also recognises an associated
increased significantly, lifetime ECL is used.
liability. The transferred asset and the associated
liability are measured on a basis that reflects ECL is the difference between all contracted cash
the rights and obligations that the Company has flows that are due to the Company in accordance
retained. with the contract and all the cash flows that
Continuing involvement that takes the form of a the Company expects to receive, discounted at
guarantee over the transferred asset is measured the original EIR. ECL impairment loss allowance
at the lower of the original carrying amount of the ( or reversal) recognised during the period is
asset and the maximum amount of consideration recognised as income / (expense) in the statement
that the Company could be required to repay. of profit and loss (P&L).
Impairment of financial assets The balance sheet presentation for various
The Company applies expected credit loss (ECL) financial instruments is described below:
model for measurement and recognition of Financial assets measured as at amortised
impairment loss on the following financial assets cost, contractual revenue receivables and lease
and credit risk exposure ; receivables:
a) Financial assets that are debt instruments, ECL is presented as an allowance, i.e., as an
and are measured at amortised cost e.g. loans, integral part of the measurement of those assets
debt securities, deposits, trade receivables in the balance sheet. The allowance reduces
and bank balances. the net carrying amount. Until the asset meets
write-off criteria, the Company does not reduce
b) Financial assets that are debt instruments
impairment allowance from the gross carrying
and are measured as at other comprehensive
amount.
income (FVTOCI)
For assessing increase in credit risk and
c) Lease receivables under relevant accounting
impairment loss, the Company combines financial
standard
instruments on the basis of shared credit risk
d) Trade receivables or any contractual right to characteristics with the objective of facilitating
receive cash or another financial asset that an analysis that is designed to enable significant
result from transactions that are within the increases in credit risk to be identified on a timely
scope of Ind AS 115 basis.
The Company follows ‘simplified approach’ for Financial liabilities
recognition of impairment loss allowance on:
Initial recognition and measurement
- Trade receivables or contract revenue Financial liabilities are classified, at initial
receivables; and recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, Amortised cost is calculated by taking into
payables, or as derivatives, as appropriate. account any discount or premium on acquisition
and fees or costs that are an integral part of the
All financial liabilities are recognised initially at
EIR. The EIR amortisation is included as finance
fair value and, in the case of loans and borrowings
costs in the statement of profit and loss.
and payables, net of directly attributable
transaction costs. This category generally applies to borrowings.
If the Company reclassifies financial assets, it Transaction costs are apportioned between the
applies the reclassification prospectively from the liability and equity component of the redeemable
reclassification date which is the first day of the preference shares based on the allocation of
immediately next reporting period following the proceeds to the liability and equity component
change in business model. The Company does not when the instruments are initially recognised.
restate any previously recognised gains, losses
r) Cash and cash equivalents
(including impairment gains or losses) or interest.
Cash and cash equivalents in the balance
Offsetting of financial instruments sheet comprise cash at banks and on hand and
Financial assets and financial liabilities are offset short-term deposits with an original maturity of
and the net amount is reported in the balance three months or less, which are subject to an
sheet if there is a currently enforceable legal right insignificant risk of changes in value.
to offset the recognised amounts and there is an For the purpose of the statement of cash flows,
intention to settle on a net basis, to realise the cash and cash equivalents consist of cash
assets and settle the liabilities simultaneously. and short-term deposits, as defined above, net
p) Derivative financial instruments of outstanding bank overdrafts as they are
considered an integral part of the Company’s
Initial recognition and subsequent measurement
cash management.
The Company uses derivative financial
instruments, such as forward currency contracts, s) Cash dividend to equity holders of the company
cross currency swaps, options, interest rate The Company recognises a liability to make
futures and interest rate swaps to hedge its cash to equity holders of the parent when the
foreign currency risks and interest rate risks, distribution is authorised and the distribution is
respectively. Such derivative financial instruments no longer at the discretion of the Company. As
are initially recognised at fair value through profit per the corporate laws in India, a distribution is
or loss (FVTPL) on the date on which a derivative authorised when it is approved by the shareholders.
contract is entered into and are subsequently A corresponding amount is recognised directly in
re-measured at fair value. Derivatives are carried equity.
as financial assets when the fair value is positive
t) Earnings per share
and as financial liabilities when the fair value is
negative. Basic earnings per share are calculated by dividing
the profit for the period attributable to equity
Any gains or losses arising from changes in the shareholders by the weighted average number
fair value of derivative financial instrument of equity shares outstanding during the period.
or on settlement of such derivative financial For the purpose of calculating diluted earnings
instruments are recognised in statement of profit per share, the profit the period attributable to
and loss and are classified as Foreign Exchange equity shareholders and the weighted average
(Gain) / Loss except those relating to borrowings, number of shares outstanding during the period
which are separately classified under Finance are adjusted for the effects of all dilutive potential
Cost. equity shares.
q) Redeemable preference shares u) Amended standards adopted by the Company
Redeemable preference shares, being Compound In the current year, the Company has applied the
Financial Instrument are separated into liability below amendments to Ind ASs that are effective
and equity component based on the terms of the for an annual period that begins on or after April
contract. 01, 2020.
On issuance of the redeemable preference
Amendments to Ind AS 116 - Covid-19 Related
shares, the fair value of the liability component is
Rent Concessions
determined using a market rate for an equivalent
non-convertible instrument. This amount is The Company has adopted the amendments to
classified as a financial liability measured at Ind AS 116 for the first time in the current year. The
amortised cost (net of transaction costs) until it amendments provide practical relief to lessees in
is extinguished on redemption. accounting for rent concessions occurring as a
direct consequence of COVID-19, by introducing
a practical expedient to Ind AS 116. The practical determine whether a substantive process has
expedient permits a lessee to elect not to assess been acquired.
whether a COVID-19-related rent concession is The amendments introduce an optional
a lease modification. A lessee that makes this concentration test that permits a simplified
election shall account for any change in lease assessment of whether an acquired set of
payments resulting from the COVID-19-related activities and assets is not a business. Under
rent concession the same way it would account the optional concentration test, the acquired
for the change applying Ind AS 116 if the change set of activities and assets is not a business
were not a lease modification. if substantially all of the fair value of the gross
The practical expedient applies only to rent assets acquired is concentrated in a single
concessions occurring as a direct consequence identifiable asset or group of similar assets. The
of COVID-19 and only if all of the following amendments are applied prospectively to all
conditions are met: business combinations and asset acquisitions for
which the acquisition date is on or after 1 April
(a) The change in lease payments results in
2020.
revised consideration for the lease that is
substantially the same as, or less than, the The adoption of the amendments has not had
consideration for the lease immediately any material impact on the disclosures or on the
preceding the change; amounts reported in these financial statements.
(b) Any reduction in lease payments affects only Amendments to Ind AS 1 and Ind AS 8 - Definition
payments originally due on or before 30 June of “material”
2021 (a rent concession meets this condition The Company has adopted the amendments to Ind
if it results in reduced lease payments on or AS 1 and Ind AS 8 for the first time in the current
before 30 June 2021 and increased lease year. The amendments make the definition of
payments that extend beyond 30 June 2021); material in Ind AS 1 easier to understand and are
and not intended to alter the underlying concept of
(c) There is no substantive change to other terms materiality in Ind ASs. The concept of ‘obscuring’
and conditions of the lease. material information with immaterial information
has been included as part of the new definition.
The adoption of the amendments has not had
The threshold for materiality influencing users
any material impact on the disclosures or on the
has been changed from ‘could influence’ to
amounts reported in these financial statements.
‘could reasonably be expected to influence’.
Amendments to Ind AS 103 The definition of material in Ind AS 8 has been
Definition of a business replaced by a reference to the definition of
The Company has adopted the amendments to material in Ind AS 1. In addition, the MCA amended
Ind AS 103 for the first time in the current year. other Standards that contain the definition of
The amendments clarify that while businesses ‘material’ or refer to the term ‘material’ to ensure
usually have outputs, outputs are not required consistency.
for an integrated set of activities and assets to The adoption of the amendments has not had
qualify as a business. To be considered a business, any material impact on the disclosures or on the
an acquired set of activities and assets must amounts reported in these financial statements.
include, at a minimum, an input and a substantive
Amendments to Ind AS 109 and 107 - Interest
process that together significantly contribute to
Rate Benchmark Reform
the ability to create outputs.
These amendments modify specific hedge
The amendments remove the assessment of
accounting requirements to allow hedge
whether market participants are capable of
accounting to continue for affected hedges
replacing any missing inputs or processes and
during the period of uncertainty before the
continuing to produce outputs. The amendments
hedged items or hedging instruments affected
also introduce additional guidance that helps to
excessive credit spreads are excluded from value of financial instruments. Refer note 32
the analysis of bonds on which the discount for further disclosures.
rate is based, on the basis that they do not
Provision for Decommissioning Liabilities
represent high quality corporate bonds.
The management of the Company has
The mortality rate is based on publicly available
estimated that there is no contractual and
mortality tables for the specific countries.
probable decommissioning liability under
Those mortality tables tend to change only at
the condition / terms of the concession
interval in response to demographic changes.
agreement with the GMB.
Future salary increases and gratuity increases
are based on expected future inflation rates Depreciation / amortisation and useful lives
for the respective countries. of property plant and equipment / intangible
Further details about gratuity obligations are assets
given in note 28. Property, plant and equipment / intangible
Fair value measurement assets are depreciated / amortised over
their estimated useful lives, after taking
In measuring the fair value of certain assets
into account estimated residual value.
and liabilities for financial reporting purpose,
Management reviews the estimated useful
the Company uses market observable data
lives and residual values of the assets
to the extent available. Where such Level 1
annually in order to determine the amount
inputs are not available, the Company engages
of depreciation / amortisation to be recorded
third party qualified valuers to establish
during any reporting period. The useful
appropriate valuation techniques and inputs
lives and residual values are based on the
to the model. The inputs to these models
Company’s historical experience with similar
are taken from observable markets where
assets and take into account anticipated
possible, but where this is not feasible, a
technological changes. The depreciation /
degree of judgment is required in establishing
amortisation for future periods is revised if
fair values. Judgments include considerations
there are significant changes from previous
of inputs such as liquidity risk, credit risk and
estimates.
volatility. Changes in assumptions about
these factors could affect the reported fair
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
Note 3(a) Property, Plant and Equipment
H In crore
Particulars Free Buildings, Computer Lease Land Office Plant & Furniture Vehicles Dredged Marine Railway Railway Tugs Project Total
Hold Roads and Civil Hardware hold Development Equipment Equipment & Fixture Channels Structures Tracks Wagons and Assets
Land Infrastructure land cost Boats
Cost
As at April 1, 2019 548.18 2,084.83 55.09 65.36 309.39 60.42 2,663.92 132.84 20.72 2,488.29 1,339.72 293.41 - 18.02 914.63 10,994.82
Additions 26.24 124.21 26.10 - 18.16 23.90 777.97 49.13 2.32 77.21 566.32 2.08 233.56 - 73.12 2,000.32
Deductions/Adjustment (0.51) - (0.80) - - - (90.39) - (0.80) - - - (211.26) - (17.14) (320.90)
Reclassified on account of - - - (65.36) - - - - - - - - - - - (65.36)
adoption of Ind As 116 (refer note
(3)(b))
Exchange difference - 13.56 - - - - 30.15 - - 5.83 22.12 3.32 - - 13.59 88.57
As at March 31, 2020 573.91 2,222.60 80.39 - 327.55 84.32 3,381.65 181.97 22.24 2,571.33 1,928.16 298.81 22.30 18.02 984.20 12,697.45
Additions 8.37 132.44 22.10 - 2.51 18.47 58.36 10.20 0.61 44.12 0.92 - 49.75 - 28.63 376.48
Deductions/Adjustment (0.11) (1.24) (3.83) - (0.49) (2.54) (6.50) (5.37) (2.37) (0.31) - (72.05) (0.03) (33.87) (128.71)
Exchange difference - (6.14) - - - - (12.11) - - (2.92) (8.96) (1.49) - - (0.64) (32.26)
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(contd.)
i) Depreciation of H16.10 crore (previous year H37.59 crore) relating to the project assets has been allocated to
Capitalisation / Capital Work-in-Progress.
ii) Freehold Land includes land development cost of H12.56 crore (previous year H12.56 crore).
iii) Plant and Equipment includes cost of Water Pipeline amounting to H3.37 crore (Gross) (previous year H3.37
crore), accumulated depreciation H2.37 crore (previous year H1.98 crore) which is constructed on land not
owned by the Company.
iv) Buildings includes 612 residential flats (previous year 612 flats) and a hostel building valuing H130.75 crore
(Gross) (previous year H130.75 crore), accumulated depreciation H15.86 crore (previous year H13.18 crore) at
Samudra Township, Mundra, which are pending to be registered in Company’s name.
v) As a part of concession agreement for development of port and related infrastructure at Mundra the
Company has been allotted land on lease basis by Gujarat Maritime Board (GMB).The Company has recorded
rights in the GMB Land at present value of future annual lease payments in the books and classified the
same as lease hold land. During the previous year, on adoption of Ind As 116 same has been classified to
Right of use assets .
vi) Land development cost on leasehold land includes costs incurred towards reclaimed land of H180.18 crore
(Gross) (previous year H180.18 crore), accumulated depreciation H54.18 crore (previous year H45.51 crore).
The cost has been estimated by the management, being cost allocated out of the dredging activities
approximate the actual cost.
vii) Reclaimed land measuring 1,093.53 hectare are pending to be registered in the name of the Company.
viii) Project Assets includes dredgers and earth moving equipments.
ix) Free Hold and Lease Hold Land includes Land given on Operating Lease Basis:
Gross Block as at March 31, 2021 : H6.71 crore (previous year : H6.71 crore)
Accumulated Depreciation as at March 31, 2021 : H0.36 crore (previous year : H0.30 crore)
Net Block as at March 31, 2021 : H6.35 crore (previous year : H6.41 crore)
x) Refer footnote to note 14 and 17 for security / charges created on property, plant and equipment.
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(contd.)
H in crore
Particulars Land Building Total
Depreciation for the year 17.07 5.66 22.73
As at March 31, 2021 31.19 11.32 42.51
Net Block
As at March 31, 2020 263.32 54.76 318.08
As at March 31, 2021 315.47 49.10 364.57
b) (i) Adani Vizag Coal Terminal Private Limited (“AVCTPL”), a subsidiary of the Company is engaged in Port
services under concession from one of the port trust authorities of the Government of India. During
the year, on October 03, 2020, AVCTPL had received the consultation notice for shortfall in Minimum
Guarantee Cargo (MGC) from Visakhapatnam Port Trust (“VPT”). In response to the said letter, AVCTPL
contested the said consultation notice on the grounds that the consultation notice is not valid since
notified force majeure event due to COVID-19 pandemic was still under continuances. Also since the
force majeure event has exceeded 120 days, AVCTPL has initiated termination on mutual consent as per
right under the concession agreement. VPT has also issued the counter termination and the matter is
under arbitration. The Company has reassessed the carrying values of its loan and equity investment in
AVCTPL in light of the aforesaid developments and has continued to carry these balances at values net
of impairment provisions amounting to H297.38 crore (H228.85 crore net of tax).
(ii) The carrying amounts of long-term investments in equity shares and perpetual securities of wholly
owned subsidiary companies viz. Adani Kandla Bulk Terminal Private Limited (“AKBTPL”) and Adani
Murmugao Port Terminal Private Limited (“AMPTPL”) aggregates to H485.94 crore as at March 31,
2021 and long term loans include loans given to AKBTPL and AMPTPL aggregating to H1,306.18 crore
(including interest accrued H71.99 crore) as at March 31, 2021. The said individual subsidiary companies
have incurred losses in the recent years and individually have negative net worth which aggregate
H539.65 crore as at March 31, 2021. The Company has been providing financial support to these entities
to meet its financial obligations, as and when required in the form of loans, which are recoverable at
the end of the concession period associated with these subsidiaries. AKBTPL has received relaxation in
the form of rationalisation on revenue share on storage income from the Port Trust in accordance with
guidelines from Ministry of Shipping (“MoS”) in financial year 2018-19. During current year, AMPTPL
has also received similar relief in terms of rationalised tariff on storage charges from the authorities for
financial year 2019-20.
The Company has determined the recoverable amounts of its investments and loans in these subsidiaries
as at March 31, 2021 by considering a discounted cash flow model. Such determination is based on
significant estimates & judgements to be made by the management as regards the benefits of the
e) Value of Deemed Investment accounted in subsidiaries and joint ventures in terms of fair valuation under
Ind AS 109
H In crore
Particulars March 31, 2021 March 31, 2020
i) Adani Logistics Limited 74.41 67.24
ii) Karnavati Aviation Private Limited 17.95 17.95
iii) MPSEZ Utilities Limited 0.02 0.02
iv) Mundra International Airport Private Limited 0.36 0.36
v) Adani Hospitals Mundra Private Limited 0.41 0.39
vi) Shanti Sagar International Dredging Limited 7.35 7.35
vii) The Dhamra Port Company Limited 68.54 65.76
viii) Abbot Point Operations Pty Limited 12.33 12.34
ix) Adani International Terminals Pte Limited 6.36 6.36
x) Adani Mundra Port Holdings Pte Limited - 0.02
xi) Adani International Container Terminal Private Limited 11.57 11.57
xii) Adani CMA Mundra Terminal Private Limited 4.48 4.48
xiii) Adani Vizhinjam Port Private Limited 5.00 -
208.78 193.84
l) Interest is payable at the discretion of issuer and conversion ratio is fixed to fixed at the maturity
5 Trade Receivables
(unsecured, unless otherwise stated)
H In crore
Particulars March 31, 2021 March 31, 2020
Trade Receivables
- Considered Good 1,694.76 2,176.11
Less :Allowances for expected credit loss due to increase in credit (62.34) (43.44)
risk (“ECL”)
1,632.42 2,132.67
Customers' Bill Discounted (refer note (c) below) 539.81 613.05
Other Trade Receivable 1,092.61 1,519.62
Total Receivables 1,632.42 2,132.67
Refer note 30 for Related Party Balances
Notes:
a) No trade or other receivable are due from directors or other officers of the Company either severally or
jointly with any other person nor any trade or other receivable are due from firms or private companies in
which any director is a partner, a director or a member.
b) Generally, as per credit terms trade receivable are collectable within 30-60 days although the Company
provide extended credit period with interest between 7.5% to 9% considering business and commercial
arrangements with the customers including with the related parties.
c) The Carrying amounts of the trade receivables include receivables amounting to H539.81 crore (previous
year H613.05 crore) which are subject to a bills discounting arrangement. Under this arrangement, the
Company has transferred the relevant receivables to the bank / financial institution in exchange of cash
and is prevented from selling or pledging the receivables. The Cost of bill discounting is to the customer’s
account as per the arrangement. However, the Company has retained late payment and credit risk. The
Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. The
amount repayable under the bills discounting arrangement is presented as unsecured borrowing in note 17.
6 Loans
(Unsecured unless otherwise stated)
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Loans to Related Parties
Considered Good (refer note 4 (b) (ii)) 14,531.23 10,094.50 211.57 336.86
Credit impaired (refer note 4 (b) (i)) 196.10 196.10 8.92 8.92
Loan to others
Considered Good (refer note below) 135.00 - 493.14 1,234.14
Credit impaired - - 0.05 0.05
14,862.33 10,290.60 713.68 1,579.97
Less: Allowances for doubtful loans (196.10) (196.10) (8.97) (8.97)
14,666.23 10,094.50 704.71 1,571.00
Note:
Loans to others include inter-corporate deposits aggregating H628.14 crore (previous year H1,234.14 crore)
(Including renewals on due dates) to third parties. These deposits are given at prevailing market interest rates.
The inter-corporate deposits have been approved by the Finance committee of the Board of Directors and
subsequently noted by the Board of Directors of the company.
Repayment of loans given to these parties along with interest thereon have been guaranteed by way of
undertaking obtained from one of the promoter owned entity, a related party, in the event of default by the said
companies to pay the dues.
8 Other Assets
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Capital advances (refer note (a) and (d) below) 306.34 261.47 - -
Balance with Government Authorities 4.50 4.50 76.24 88.11
Prepaid Expenses 9.64 11.36 49.99 16.17
Accrued Income - - 52.38 53.77
Contract Assets (refer note (b) below ) - - 26.88 51.13
Advances recoverable other than in cash
To related party 111.35 237.10 120.11 119.86
To others - - 35.52 38.90
Export benefit and other receivables (refer note (c) 120.60 120.56 - 148.25
below)
Taxes recoverable (net of provision) (refer note 26) 364.57 332.45 - -
917.00 967.44 361.12 516.19
Notes:
(a) Capital advance includes H98.48 crore (previous year H100.78 crore) paid to various private parties and
government authorities towards purchase of land.
(b) Contract assets are the right to receive consideration in exchange for services transferred to the customer.
Contract assets are initially recognised for revenue earned from port operation services as receipt of
consideration is conditional on successful completion of services. Upon completion of services and
acceptance by the customer, the amounts recognised as contract assets are reclassified to financial assets.
(c) As per Government notification no. 57/2015-2020 dated March 31, 2020 the Company is entitled to Service
Exports from India Scheme (SEIS) benefits on Port Services till year ended March 31, 2020. Accordingly, the
SEIS benefits of H120.60 crore for the Port Services provided during the financial year ended March 31, 2020
has been accounted by the Company on provisional basis pending notification in respect of the eligible
service categories under the scheme and the rates of rewards on such services by Government Authorities
as at reporting date. The company based on the advise of legal counsel is confident of realisability of the
same.
(d) Capital advance is net of allowance for doubtful advance of H10.59 crore (previous year H10.59 crore).
9 Inventories
(At lower of cost and Net realisable value)
H In crore
Particulars March 31, 2021 March 31, 2020
Stores and Spares, Fuel and Lubricants 74.22 86.92
74.22 86.92
10 Current Investments
H In crore
Particulars March 31, 2021 March 31, 2020
Unquoted mutual funds (valued at fair value through profit and loss)
Nil (previous year 2,50,000 units) of H10 each in HDFC Mutual Fund - 0.25
Nil (previous year 48,465 units) of H2,402 each in IDFC Cash Fund - 11.64
Investment in Pass Through Certificates
(Valued at Amortised Cost)
1,00,000 units (previous year Nil) of Pass Through Certificates 926.02 -
926.02 11.89
Aggregate carrying value of unquoted Mutual Funds - 11.89
Aggregate net assets value of unquoted Mutual Funds - 11.89
Aggregate carrying value of unquoted investment in Pass Through 926.02 -
Certificates
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
Equity Shares March 31, 2021 March 31, 2020
No H In crore No H In crore
At the beginning of the year 2,03,17,51,761 406.35 2,07,09,51,761 414.19
(Less): Shares bought back (refer note (ii)below) - - (3,92,00,000) (7.84)
Outstanding at the end of the year 2,03,17,51,761 406.35 2,03,17,51,761 406.35
Note
i) Terms/rights attached to equity shares
- The Company has only one class of equity share having par value of H2 per share. Each holder of equity
share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
- In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
ii) During the previous year, the Company has bought-back 3,92,00,000 Equity Shares at a price of H500 per
equity share from eligible shareholders of the Company on a proportionate basis through Tender Offer route
in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities)
Regulations, 2018 and the Companies Act, 2013 and rules made thereunder.
b) Equity Component of Non-Cumulative Redeemable Preference shares
Particulars March 31, 2021 March 31, 2020
No H In crore No H In crore
At the beginning of the year 25,01,824 166.53 28,11,037 165.88
Less: Pre-mature redemption of Preference shares - - (3,09,213) (14.17)
(refer note iii below)
Add: Impact due to remeasurement of Deferred Tax - - - 14.82
(refer note ii below)
Outstanding at the end of the year 25,01,824 166.53 25,01,824 166.53
13 Other Equity
H In crore
Particulars March 31, 2021 March 31, 2020
Equity Component of Non-Cumulative Redeemable Preference
shares
Opening Balance 166.53 165.88
Add: Impact due to remeasurement of Deferred Tax (refer note 12 (b) - 14.82
(ii))
Less: Pre-mature redemption of Preference Share - (14.17)
Closing Balance 166.53 166.53
Securities Premium
H In crore
Particulars March 31, 2021 March 31, 2020
Opening Balance 583.54 2,535.70
Less: Premium paid on buyback of equity shares (refer note 12(a) (ii)) - (1,952.16)
Closing Balance 583.54 583.54
14 Non-Current Borrowings
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Debentures
15,000 (previous year Nil) 8.50% Non Convertible 1,485.95 - - -
Redeemable Debentures of H10,00,000 each Secured.
(Redeemable on April 12, 2030 (refer note (g) below)
2,520 (previous year 2,520) 9.35% Non Convertible 251.46 251.39 - -
Redeemable Debentures of H10,00,000 each Secured
(Redeemable on July 04, 2026) (refer note (c) below)
16,000 (previous year 16,000) 7.65% Non Convertible 1,587.59 1,585.88 - -
Redeemable Debentures of H10,00,000 each Secured
(Redeemable H533.30 crore on October 31, 2025,
H533.30 crore on October 31, 2026 and H533.40 crore
on October 30, 2027) (refer note (e) below)
10,000 (previous year 10,000) 8.22% Non Convertible 1,000.00 1,000.00 - -
Redeemable Debentures of H10,00,000 each Secured
(Redeemable H333.30 crore on March 07, 2025,
H333.30 crore on March 07, 2026 and H333.40 crore
on March 08, 2027) (refer note (c) below)
13,000 (previous year 13,000) 8.24% Non Convertible 1,300.00 1,300.00 - -
Redeemable Debentures of H10,00,000 each Secured
(Redeemable H433.30 crore on November 29, 2024,
H433.30 crore on November 29, 2025 and H433.40
crore on November 27, 2026) (refer note (d) below)
9,000 (previous year Nil) 6.50% Non Convertible 893.48 - - -
Redeemable Debentures of H10,00,000 each Secured.
(Redeemable on September 11, 2023 (refer note (a)
below)
Notes:
a) Debentures include Secured Non-Convertible Redeemable Debentures amounting to H1,421.59 crore
(previous year H692.49 crore) which are secured by first Pari-passu charge on all the immovable and movable
assets of Multi-purpose Terminal, Terminal-II and Container Terminal –II project assets.
b) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H19.94 crore (previous
year H39.65 crore) which are secured by exclusive mortgage and charge on entire Single Point Mooring
(SPM) facilities serving Indian Oil Corporation Limited - Mundra and the first charge over receivables from
Indian Oil Corporation Limited.
c) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,251.46 crore
(previous year H1,251.39 crore) which are secured by first pari-passu charge on all the movable and immovable
assets pertaining to coal terminal project assets at Wandh.
d) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,300.00 crore
(previous year H1,300.00 crore) which are secured by first pari-passu charge on specified assets of certain
subsidiary companies’ arrangements as per Debenture Trust Deed.
e) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,587.59 crore
(previous year H1,585.88 crore) are secured by first pari-passu charge on specified assets of one of the
subsidiary companies’ arrangements as per Debenture Trust Deed.
f) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H876.67 crore
(previous year H280.00 crore) are secured by first pari-passu charge on all the movable and immovable
assets pertaining to coal terminal project assets at Mundra.
g) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,485.95 crore
(previous year Nil) are secured by first pari-passu charge on fixed assets of MPT, T2 and CT2 Project located
at Mundra..
16 Other Liabilities
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Advance from customers (refer note 38) - - 716.01 731.91
Deposits from customers - - 12.40 11.34
Statutory liability - - 64.45 43.58
Unearned Income under land lease/ Infrastructure 561.42 623.66 62.24 62.24
usage agreements
Deferred Income on fair valuation of Deposit taken 1.05 1.15 - -
Deferred Government Grant (refer note (i) below) 0.61 0.71 - -
Unearned revenue - others - - 66.00 65.91
Contract Liabilities (refer note (ii) below) - - 143.07 221.51
563.08 625.52 1,064.17 1,136.49
Notes:
i) Movement in Deferred Government Grant
H In crore
Particulars March 31, 2021 March 31, 2020
Opening Balance 0.71 0.80
Amortisation during the year (0.10) (0.09)
Closing Balance 0.61 0.71
ii) Contract liabilities include advances received to deliver Port Operation Services and transaction price
allocated to unsatisfied performance obligation in respect of Storage and Dispatch services of Customers’
Cargo lying at Port.
17 Current Borrowings
H In crore
March 31, 2021 March 31, 2020
Short term borrowings from banks (unsecured) (refer note (e) and (f)) - 800.00
Packing Credit Rupee Loan from bank (unsecured) (refer note (c) and 400.00 400.00
(d))
Commercial paper (unsecured) (refer note (a)) - 294.12
Inter Company deposit from a subsidiary (unsecured) (refer note (b) 1,333.40 708.00
below and 30)
1,733.40 2,202.12
Customers' Bill Discounted (unsecured) (refer note 5(c)) 539.81 613.05
2,273.21 2,815.17
Notes:
a) Commercial Paper (CP) aggregating H Nil (previous year H 294.12 crore) carried interest rate in range of 6.64
% to 8.50 % p.a. The CP had maturity period of 1 to 6 months. Same has been repaid during the year.
b) Short term borrowing from subsidiary H1,333,40 crore (previous year H708 crore) carries interest rate @ 7.50
% is repayable on demand.
c) Packing Credit rupee Loan aggregating to H Nil (previous year H400 crore) carried interest rate 6.25 %
monthly payable same has been repaid during current year.
d) Packing Credit rupee Loan aggregating to H400 crore (previous year H Nil) linked to 14 day Treasury Bill and
repayable in April 2021.
19 Provisions
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Provision for Employee Benefits
Provision for Gratuity (refer note 28) 2.40 - - -
Provision for Compensated Absences - - 16.54 15.06
2.40 - 16.54 15.06
Other Provision
Provision for operational claims (refer note below) - - - 29.43
- - - 29.43
2.40 - 16.54 44.49
Note:
H In crore
Particulars March 31, 2021 March 31, 2020
Opening Balance 29.43 29.43
Less : Utilised / (Settled) during the year (10.53) -
Less : Reversed during the year (18.90) -
Closing Balance - 29.43
Note: Operational Claims are the expected claims against outstanding receivables made/to be made by the
customers towards shortages of stock, handling losses, damages to the cargo, storage and other disputes. The
probability and the timing of the outflow/adjustment with regard to above depends on the ultimate settlement
/ conclusion with the respective customer.
21 Other Income
H In crore
Particulars March 31, 2021 March 31, 2020
Interest Income on
Bank Deposits, Inter Corporate Deposits, Security Deposit etc. 2,028.24 2,001.33
Customers dues 30.13 33.80
Finance Lease 135.68 39.90
22 Operating Expenses
H In crore
Particulars March 31, 2021 March 31, 2020
Cargo handling / other charges to Contractors (net of 342.75 359.42
reimbursements)
Customer Claims (including Expected Credit Loss) (refer note below) - 9.71
Railway Service Charges 115.40 162.45
Tug and Pilotage Charges 6.21 5.57
Maintenance Dredging 20.88 35.88
Other expenses including Customs Establishment Charges 0.89 1.99
Repairs to Plant & Equipment 58.21 89.00
Stores & Spares consumed 94.56 67.25
Repairs to Buildings 8.84 6.30
Power & Fuel 85.48 94.16
Waterfront Charges 186.14 220.61
Cost of assets transferred under Finance Lease 0.11 15.10
919.47 1,067.44
Note : Expected credit loss of H18.90 crore has been netted of with reversal of operational claim of H18.90 crore.
24 Finance Costs
H In crore
Particulars March 31, 2021 March 31, 2020
a) Interest and Bank Charges
Interest on
Debentures and Bonds 1,684.60 1,167.90
Loans, Buyer's Credit etc. 438.80 675.75
Lease Liabilities 10.51 9.53
Bank and other Finance Charges 67.24 25.37
2,201.15 1,878.55
b) Derivative Loss / (Gain) (net) 125.70 (126.67)
2,326.85 1,751.88
25 Other Expenses
H In crore
Particulars March 31, 2021 March 31, 2020
Rent Expenses 4.77 4.29
Rates and Taxes 3.27 2.64
Insurance 10.44 7.85
Advertisement and Publicity 4.24 3.10
Other Repairs and Maintenance 17.02 17.96
Legal and Professional Expenses 72.60 61.29
Corporate Support Service Fee 59.43 53.14
IT Support Services 7.55 11.97
Payment to Auditors (refer note (a) below) 1.29 1.39
Security Service Charges 21.35 17.75
Communication Expenses 24.64 17.78
Electric Power Expenses 3.00 3.85
Travelling and Conveyance 48.10 44.28
Directors Sitting Fee 0.38 0.38
Commission to Non-executive Directors 0.94 0.63
Charity & Donations (refer note (b) below) 60.31 75.61
Miscellaneous Expenses 12.46 11.68
351.79 335.59
Notes:
a) Payment to Auditors
H In crore
Particulars March 31, 2021 March 31, 2020
As auditor:
Audit fee 0.59 0.76
Limited review 0.52 0.35
In other capacity:
Certification fees 0.10 0.08
Other services* 1.80 1.20
Reimbursement of expenses 0.03 -
3.04 2.39
* Note- Professional fee of H1.75 crore (previous year H1.00 crore) paid for the services rendered in respect
of the Bond issued by the Company has been accounted as transaction cost in accordance with Ind AS 109.
26 Income Tax
The major component of income tax expenses for the year ended March 31, 2021 and March 31, 2020 are
as under
a) Tax Expense reported in the Statement of Profit and Loss
H In crore
Particulars March 31, 2021 March 31, 2020
Current Income tax
Current tax charges 948.74 367.25
Deferred Tax
Relating to origination and reversal of temporary differences 32.97 (269.77)
Tax Expense reported in the Statement of Profit and Loss 981.71 97.48
Tax on Other Comprehensive Income ('OCI')
H In crore
Particulars March 31, 2021 March 31, 2020
Deferred tax related to items recognised in OCI during the year
Tax impact on re-measurement loss on defined benefit plans (1.27) (0.50)
Tax impact on unrealised gain on FVTOCI Equity Investment 1.94 2.76
0.67 2.26
c) Reconciliation of tax expenses and the accounting profit multiplied by India’s domestic tax rate
for March 31, 2021 and March 31, 2020
H In crore
Particulars March 31, 2021 March 31, 2020
Profit Before Tax 2,909.64 2,031.73
Tax Rate 34.94% 34.94%
At India's Statutory Income Tax rate 1,016.74 709.97
Tax Effect of:
Effect of change in Tax rates (refer footnote to 26 (d)) - (318.60)
Effect due to lower Tax rate (27.17) (25.41)
Expenses not allowable under Tax laws 27.16 29.11
Deduction under chapter VI-A (23.51) (16.49)
Exempt income - (245.60)
Adjustment in respect of previous years 0.69 (31.68)
Other Adjustments (12.20) (3.82)
Income tax reported in Statement of Profit and Loss 981.71 97.48
Effective tax rate 33.74% 4.79%
g) The Company has following unutilised MAT credit under the Income Tax Act, 1961 for which deferred tax
assets has been recognised in the Balance Sheet at
(H in crore)
Financial Year Amount Expiry Date
2014-15 359.27 2029-30
2015-16 608.26 2030-31
2016-17 406.92 2031-32
Total 1,374.45
b) The Company has a defined benefit gratuity plan (funded) and is governed by the Payment of Gratuity Act,
1972. Under the Act, every employee who has completed at least five year of service is entitled to gratuity
benefits on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme
is funded with Life Insurance Corporation of India (LIC) in form of a qualifying insurance policy with effect
from September 01, 2010 for future payment of gratuity to the employees.
Each year, the management reviews the level of funding in the gratuity fund. Such review includes the asset
- liability matching strategy. The management decides its contribution based on the results of this review.
The management aims to keep annual contributions relatively stable at a level such that no plan deficits (
based on valuation performed) will arise.
The following tables summarise the component of the net benefits expense recognised in the statement
of profit and loss account and the funded status and amounts recognized in the balance sheet for the
respective plan.
c) Gratuity
(i) Changes in present value of the defined benefit obligation are as follows:
H In crore
Particulars March 31, 2021 March 31, 2020
Present value of the defined benefit obligation at the beginning 27.46 23.24
of the year
Current service cost 3.40 3.09
Interest cost 1.79 1.68
Re-measurement (or Actuarial) (gain) / loss arising from and
including in OCI:
- change in demographic assumptions (0.58) 0.22
- change in financial assumptions - 1.73
- experience variance 2.51 (0.52)
(iv) Expense recognised in the Statement of Profit and Loss for the year
H In crore
Particulars March 31, 2021 March 31, 2020
Current service cost 3.40 3.09
Net Interest on benefit obligation (0.20) (0.25)
Total Expense included in Employee Benefits Expense (refer note 3.20 2.84
23)
(x) The expected cash flows of defined benefit obligation over the future periods (valued on undiscounted
bases)
H In crore
Particulars March 31, 2021 March 31, 2020
Within the next 12 months (next annual reporting period) 6.26 2.76
Between 2 and 5 years 12.32 10.92
Between 5 and 10 years 13.20 10.63
Beyond 10 years 23.26 28.61
Total Expected Payments 55.04 52.92
The Company expect to contribute H5.55 crore to the gratuity fund in the financial year 2021-22 (previous
year H3.91 crore).
(xi) Asset - Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in
which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance
Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year
(subject to sufficiency of funds under the policy).The policy, thus, mitigates the liquidity risk.
However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of
liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in
interest rates, which should result in a increase in liability without corresponding increase in the asset).
29 Segment Information
The Company is primarily engaged in one business segment, namely developing, operating and maintaining
the Ports services, Ports related Infrastructure development activities and development of infrastructure
at contiguous Special Economic Zone at Mundra, as determined by chief operating decision maker, in
accordance with Ind-AS 108 “Operating Segments”.
Considering the inter relationship of various activities of the business, the chief operating decision maker
monitors the operating results of its business segment on overall basis. Segment performance is evaluated
based on profit or loss and is measured consistently with profit or loss in the financial statements.
# Entities over which (i) Key Management Personnel and their relatives & (ii) entities having significant influence
over the Company have control or are under significant influence through voting powers
Notes:
a) The Company has allowed some of its subsidiaries, joint ventures and other group company to avail non
fund based facilities out of its credit facilities. The aggregate of such transaction amounts to H868.67crore
(previous year H1,941.46 crore) is not disclosed in above schedule.
b) Pass through transactions/payable relating to railway freight, water front charges and other payable to third
parties have not been considered for the purpose of related party disclosure.
31 a) The Company takes various types of derivative instruments. The category-wise outstanding position of
derivative instruments is as under:
Nature Particulars of Derivatives Purpose
As at As at
March 31, 2021 March 31, 2020
Forward Contract USD 9 Million USD 139 Million Hedging of foreign currency borrowing
principal & interest liability
USD 40 Million USD 46.00 Million Hedging of foreign currency borrowing
principal liability of USD against JPY
Foreign Currency - - USD 111.38 Million Hedging of currency and interest rate
INR Full Currency risk of foreign currency borrowing
Swap
31 (contd.)
b) The details of foreign currency exposures those are not hedged by a derivative instrument or otherwise
are as under:
Nature As at March 31, 2021 As at March 31, 2020
Amount Foreign Amount Foreign
Currency Currency
(H In crore) (in Million) (H In crore) (in Million)
Foreign Currency Loan - - 155.49 USD 20.55
75.21 EUR 8.77 127.17 EUR 15.36
Foreign Currency Bond 23,029.65 USD 3150 17,316.88 USD 2288.63
Trade Payables and Other Current Liabilities 21.00 USD 2.87 72.77 USD 9.62
5.06 EUR 0.59 2.66 EUR 0.32
0.13 SGD 0.02 0.26 SGD 0.05
0.09 AUD 0.02 - -
* GBP * - -
Interest accrued but not due 102.82 USD 14.06 137.63 USD 18.19
0.18 EUR 0.02 0.37 EUR 0.04
Balances with Bank - - 0.30 USD 0.04
Trade Receivable 0.52 USD 0.07 - -
0.02 EUR * - -
Other Receivable - - 5.26 AUD 1.14
- - 0.03 JPY 0.40
68.72 USD 9.40 69.89 USD 9.24
Loan given 86.34 AUD 15.50 92.15 AUD 20.00
9.58 BDT 110.95 - -
1,657.07 USD 226.65 1,462.86 USD 193.33
* Figures being nullified on conversion to H in crore and foreign currency in million
H In crore
Closing rates as at : March 31, 2021 March 31, 2020
INR / USD 73.11 75.67
INR / EUR 85.75 82.77
INR / GBP 100.75 93.50
INR / JPY 0.66 0.70
INR / AUD 55.70 46.08
INR / SGD 54.35 53.03
INR / BDT 0.86 0.89
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
32.1 Category-wise Classification of Financial Instruments:
H in crore
Particulars Refer As at March 31, 2021
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Financial Assets
Cash and cash equivalents 11 - - 3,310.74 3,310.74
Bank balances other than cash and 11 - - 234.51 234.51
cash equivalents
Investments in Equity Shares (other 4 263.54 - - 263.54
than investment in subsidiaries and
joint ventures)
Investments in unquoted Purchase 10 - - 926.02 926.02
Transfer Certificate
Trade Receivables (including bills 5 - - 1,632.42 1,632.42
discounted)
Loans 6 - - 15,370.94 15,370.94
Derivatives instruments 7 - 15.05 - 15.05
Other Financial Assets 7 - - 3,591.70 3,591.70
Total 263.54 15.05 25,066.33 25,344.92
Financial Liabilities
Borrowings (including the bills 14, 15 & 17 - - 33,807.16 33,807.16
discounted and current maturities)
Trade Payables 18 - - 216.69 216.69
Lease Liabilities 15 - - 144.37 144.37
Other Financial Liabilities 15 - - 942.64 942.64
Total - - 35,110.86 35,110.86
H in crore
Particulars Refer As at March 31, 2020
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Financial Assets
Cash and cash equivalents 11 - - 4,408.39 4,408.39
Bank balances other than cash and 11 - - 35.98 35.98
cash equivalents
Investments in unquoted Equity 4 251.04 - - 251.04
Shares (other than investment in
subsidiaries and joint ventures)
Investments in unquoted Mutual 10 - 11.89 - 11.89
Funds
Trade Receivables (including bills 5 - - 2,132.67 2,132.67
discounted)
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
H in crore
Particulars Refer As at March 31, 2020
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Loans 6 - - 11,665.50 11,665.50
Derivatives instruments 7 - 119.81 - 119.81
Other Financial Assets 7 - - 4,051.45 4,051.45
Total 251.04 131.70 22,293.99 22,676.73
Financial Liabilities
Borrowings (including the bills 14, 15 & 17 - - 28,899.25 28,899.25
discounted and current maturities)
Trade Payables 18 - - 217.65 217.65
Lease Liabilities 15 - - 124.48 124.48
Other Financial Liabilities 15 - - 899.59 899.59
Total - - 30,140.97 30,140.97
Note: Group Company investment amounting to H 20,505.34 crore (previous year H15,352.85 crore) are measured
at cost hence not included in above tables.
32.2 Fair Value Measurements:
a) Quantitative disclosures of fair value measurement hierarchy for financial assets and financial liabilities
The following table provides the fair value measurement hierarchy of the Company’s financial assets and
liabilities:
H in crore
Particulars As at March 31, 2021 As at March 31, 2020
Significant Significant Total Significant Significant Total
observable unobservable observable unobservable
Inputs Inputs Inputs Inputs
(Level 2) (Level 3) (Level 2) (Level 3)
Financial Assets
Investment in unquoted - 263.54 263.54 - 251.04 251.04
Equity Investments
measured at FVTOCI (refer
note 4)
Investments in unquoted - - - 11.89 - 11.89
Mutual Funds measured at
FVTPL (refer note 10)
Derivatives instruments 15.05 - 15.05 119.81 - 119.81
(refer note 7)
Total 15.05 263.54 278.59 131.70 251.04 382.74
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
b) Description of significant unobservable inputs to valuation:
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the
fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2021 and March 31, 2020
are as shown below:
Particulars Valuation Significant Range Sensitivity of the input
technique unobservable (weighted average) to fair value
inputs
FVTOCI DCF Method Weighted March 31, 2021 : 11.79% - 1% increase would
assets in Average Cost of 18.50% (15.15%) result in decrease in fair
unquoted Capital (WACC) March 31, 2020 : 13.60% - value by H4.69 crore as
equity 18.50% (16.05%) of March 31, 2021
shares ( H10.24 crore as of
March 31, 2020)
c) Financial Instrument measured at Amortised and other price risks such as equity price risk.
Cost The Company’s senior management oversees
The carrying amount of financial assets and the management of these risks. It manages
financial liabilities measured at amortised cost its exposure to these risks through derivative
in the financial statements are a reasonable financial instruments by hedging transactions.
approximation of their fair values since the It uses derivative instruments such as Cross
Company does not anticipate that the carrying Currency Swaps, Full Currency swaps, Interest
amounts would be significantly different from rate swaps, foreign currency future options and
the values that would eventually be received or foreign currency forward contract to manage
settled. these risks. These derivative instruments reduce
the impact of both favourable and unfavourable
32.3 Financial Risk objective and policies fluctuations.
The Company’s principal financial liabilities, The Company’s risk management activities
other than derivatives, comprise loans and are subject to the management, direction and
borrowings, trade and other payables, and control of Central Treasury Team of the Company
financial guarantee contracts. The main under the framework of Risk Management Policy
purpose of these financial liabilities is to finance for Currency and Interest rate risk as approved
the Company’s operations/projects and to by the Board of Directors of the Company.
provide guarantees to support its operations The Company’s central treasury team ensures
and its subsidiaries and joint ventures. The appropriate financial risk governance framework
Company’s principal financial assets include for the Company through appropriate policies
loans, investment including mutual funds, & procedures and financial risks are identified,
trade and other receivables, and cash and cash measured and managed in accordance with the
equivalents which is derived from its operations. Company’s policies and risk objectives. It is the
The Company also holds FVTOCI investments Company’s policy that no trading in derivatives
and enters into derivative transactions. for speculative purposes may be undertaken.
In the ordinary course of business, the Company is The decision of whether and when to execute
mainly exposed to risks resulting from exchange derivative financial instruments along with its
rate fluctuation (currency risk), interest rate tenure can vary from period to period depending
movements (interest rate risk) collectively on market conditions and the relative costs of the
referred as Market Risk, Credit Risk, Liquidity Risk instruments. The tenure is linked to the timing
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
of the underlying exposure, with the connection movements in market variables on: the carrying
between the two being regularly monitored. The values of gratuity and other post-retirement
Company is exposed to losses in the event of obligations; provisions.
non-performance by the counterparties to the The following assumptions have been made in
derivative contracts. All derivative contracts calculating the sensitivity analysis:
are executed with counterparties that, in our
- The sensitivity of the relevant profit or loss
judgment, are creditworthy. The outstanding
item is the effect of the assumed changes in
derivatives are reviewed periodically to ensure
respective market risks. This is based on the
that there is no inappropriate concentration of
financial assets and financial liabilities held
outstanding to any particular counterparty.
at March 31, 2021 and March 31, 2020.
Further, all currency and interest risk as
(i) Interest rate risk
identified above is measured on a daily basis by
monitoring the mark to market (MTM) of open The Company is exposed to changes in market
and hedged position. The MTM is derived based interest rates due to financing, investing and
on underlying market curves on closing basis cash management activities. The Company’s
of relevant instrument quoted on Bloomberg/ exposure to the risk of changes in market
Reuters. For period end, the MTM for each interest rates relates primarily to the Company’s
derivative instrument outstanding is obtained long-term debt obligations with floating interest
from respective banks. All gain / loss arising from rates and period of borrowings. The Company
MTM for open derivative contracts and gain / manages its interest rate risk by having a
loss on settlement / cancellation / roll over of balanced portfolio of fixed and variable rate
derivative contracts is recorded in statement of loans and borrowings. The Company enters
profit and loss. into interest rate swap contracts or interest
rate future contracts to manage its exposure to
a) Market risk changes in the underlying benchmark interest
Market risk is the risk that the fair value of rates.
future cash flows of a financial instrument will
Interest rate sensitivity
fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest The following paragraph demonstrates the
rate risk, currency risk and other price risk, sensitivity to a reasonably possible change
such as equity price risk. Financial instruments in interest rates on that portion of loans and
affected by market risk include loans and borrowings affected. With all other variables
borrowings, deposits, FVTOCI investments, held constant, the Company’s profit before tax
short term Investments and derivative financial is affected through the impact on floating rate
instruments. borrowings, as follows:
The sensitivity analysis in the following sections If interest rates had been 50 basis points higher /
relate to the position as at March 31, 2021 and lower and all other variables were held constant,
March 31, 2020. the Company’s profit for the year ended March
The sensitivity analysis have been prepared 31, 2021 would decrease / increase by H4.74
on the basis that the amount of net debt, the crore (previous year H16.17 crore). This is mainly
ratio of fixed to floating interest rates of the attributable to interest rates on variable rate
debt and derivatives and the proportion of of long term borrowings.The same has been
financial instruments in foreign currencies are calculated based on risk exposure outstanding
all constant as at March 31, 2021 and March as on balance sheet date. The year end balances
31, 2020. The analysis exclude the impact of are not necessarily representative of average
debt outstanding during the year.
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
(ii) Foreign currency risk probable forecast transactions (for instance,
Exchange rate movements, particularly the foreign exchange denominated income) the
United States Dollar (USD) and Euro (EUR) Company has entered into foreign currency
against Indian Rupee (INR), have an impact on forward contracts as per the policy of the
the Company’s operating results. The Company Company.
manages its foreign currency risk by entering The Company is mainly exposed to changes
into currency swap for converting INR loan into in USD, EURO, AUD, BDT, GBP and SGD. The
other foreign currency for taking advantage below table demonstrates the sensitivity to
of lower cost of borrowing in stable currency a 1% increase or decrease in the respective
environment. The Company also enters into foreign currency rates against INR, with all other
various foreign exchange contracts to mitigate variables held constant. The sensitivity analysis
the risk arising out of foreign exchange rate is prepared on the net unhedged exposure of the
movement on foreign currency borrowings or Company as at the reporting date. 1% represents
creditors. Further, to hedge foreign currency management’s assessment of reasonably
future transactions in respect of which firm possible change in foreign exchange rate.
commitment are made or which are highly
H in crore
Particulars Impact on Profit before tax Impact on Pre-tax Equity
For the year ended For the year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
USD Sensitivity
RUPEES / USD – Increase by 1% (214.27) (159.94) (214.27) (159.94)
RUPEES / USD – Decrease by 1% 214.27 159.94 214.27 159.94
EURO Sensitivity
RUPEES / EURO – Increase by 1% (0.05) (0.61) (0.05) (0.61)
RUPEES / EURO – Decrease by 1% 0.05 0.61 0.05 0.61
SGD Sensitivity
RUPEES / SGD – Increase by 1% * (0.01) * (0.01)
RUPEES / SGD – Decrease by 1% * 0.01 * 0.01
AUD Sensitivity
RUPEES / AUD – Increase by 1% 0.86 0.97 0.86 0.97
RUPEES / AUD – Decrease by 1% (0.86) (0.97) (0.86) (0.97)
BDT Sensitivity
RUPEES / BDT – Increase by 1% 0.10 - 0.10 -
RUPEES / BDT – Decrease by 1% (0.10) - (0.10) -
GBP Sensitivity
RUPEES / GBP – Increase by 1% * - * -
RUPEES / GBP – Decrease by 1% * - * -
* Figures being nullified on conversion to H in crore
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
(iii) Equity price risk Credit risk from balances with banks, financial
The Company’s non-listed equity securities institutions and other counter parties is
are susceptible to market price risk arising managed by the Company’s treasury department
from uncertainties about future values of the in accordance with the Company’s policy.
investment securities. The Company manages Investments of surplus funds are made only with
the equity price risk through diversification approved counterparties and within credit limits
and by placing limits on individual and total assigned to each counterparty. Counterparty
equity instruments. Reports on the equity credit limits are reviewed by the Company’s
portfolio are submitted to the Company’s senior Board of Directors on an annual basis, and may
management on a regular basis. The Company’s be updated throughout the year subject to
Board of Directors reviews and approves all approval of the Company’s Finance Committee.
equity investment decisions. The limits are set to minimise the concentration
of risks and therefore mitigate financial loss
The Company has given corporate guarantees
through counterparty’s potential failure to make
and pledged part of its investment in equity in
payments. The Company further mitigate credit
order to fulfil the collateral requirements of the
risk of counter parties by obtaining adequate
subsidiaries and joint ventures companies. The
securities including undertaking from creditable
counterparties have an obligation to return the
parties.
guarantees/ securities to the Company. There
Corporate Guarantees given to banks and
are no other significant terms and conditions
financial institutions against credit facilities
associated with the use of collateral.
availed by the subsidiaries and joint ventures H
b) Credit risk 3,956.79 crore (previous year H2,344.87 crore)
Credit risk is the risk that counterparty will Concentrations of Credit risk form part of
not meet its obligations under a financial Credit risk
instrument or customer contract, leading to a Considering that the Company operates the
financial loss. The Company is exposed to credit port services and provide related infrastructure
risk from its operating activities (primarily trade services, the Company is significantly dependent
receivables and other financial assets) and from on such customers located at Mundra. Out
its financing activities, including loans to others, of total income from port operations, the
deposits with banks, financial institutions & Company earns 47 % revenue (previous year 45
others, foreign exchange transactions and other %) from such customers, and with some of these
financial assets. customers, the Company has long term cargo
Customer credit risk is managed by the contracts. As at March 31, 2021, receivables from
Company’s established policy, procedures such customer constitute 41 % (previous year
and control relating to customer credit risk 43%) of total trade receivables. A loss of these
management. Credit quality of a customer is customer could adversely affect the operating
assessed based on an extensive evaluation and result or cash flow of the Company.
individual credit limits are defined in accordance
c) Liquidity risk
with this assessment.
Liquidity risk is the risk that the Company
An impairment analysis is performed at each
will encounter difficulty in raising funds to
reporting date on an individual basis for major
meet commitments associated with financial
clients. In addition, a large number of minor
instruments that are settled by delivering cash
receivables are grouped into homogenous
or another financial asset. Liquidity risk may
groups and assessed for impairment collectively.
result from an inability to sell a financial asset
The calculation is based on exchange losses
quickly at close to its fair value.
historical data.
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
The Company has an established liquidity risk sufficient cash to meet all its normal operating
management framework for managing its short commitments in a timely and cost-effective
term, medium term and long term funding manner.
and liquidity management requirements. The
The table below analyses derivative and non-
Company’s exposure to liquidity risk arises
derivative financial liabilities of the Company
primarily from mismatches of the maturities of
into relevant maturity groupings based on the
financial assets and liabilities. The Company
remaining period from the reporting date to the
manages the liquidity risk by maintaining
contractual maturity date. The amounts disclosed
adequate funds in cash and cash equivalents.
in the table are the contractual undiscounted
The Company also has adequate credit facilities
cash flows.
agreed with banks to ensure that there is
H in crore
Particulars Refer Less than 1 to 5 Over 5 Total Carrying
Note 1 year years years Value
As at March 31, 2021
Borrowings (including bills discounted) 14, 15 & 2,857.85 9,108.59 22,068.76 34,035.20 33,807.16
17
Interest on borrowings 15 1,637.43 5,466.50 2,826.62 9,930.55 585.61
Trade Payables 18 216.69 - - 216.69 216.69
Lease Liabilities (Including finance 15 12.77 62.32 170.60 245.69 144.37
charge)
Other Financial Liabilities 15 336.79 17.31 2.93 357.03 357.03
Total 5,061.53 14,654.72 25,068.91 44,785.16 35,110.86
H in crore
Particulars Refer Less than 1 to 5 Over 5 Total Carrying
Note 1 year years years Value
As at March 31, 2020
Borrowings (including bills discounted) 14, 15 & 4,172.88 11,771.24 13,040.58 28,984.70 28,899.25
17
Interest on borrowings 15 1,341.63 3,963.82 1,995.14 7,300.59 319.90
Trade Payables 18 217.65 - - 217.65 217.65
Lease Liabilities (Including finance 15 10.32 52.23 156.01 218.56 124.48
charge)
Other Financial Liabilities 15 564.83 12.70 2.16 579.69 579.69
Total 6,307.31 15,799.99 15,193.89 37,301.19 30,140.97
Note:
The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including
interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the refinancing
options available with the Company. The amounts included above for variable interest rate instruments for non
derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest
rates determined at the end of the reporting period.
32 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
32.4 Capital management
For the purposes of the company’s capital management, capital includes issued capital and all other equity.
The primary objective of the company’s capital management is to maximize shareholder value. The Company
manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants.
The company monitors capital using gearing ratio, which is net debt (total debt less cash and bank balance &
Investments in Mutual Fund) divided by total capital plus net debt.
H In crore
Particulars March 31, 2021 March 31, 2020
Total Borrowings (including bills discounting) (refer note 14, 15 and 17) 33,807.16 28,899.25
Less: Cash and bank balance & Investments in Mutual Fund (refer 3,545.25 4,456.26
note 7,10,11)
Net Debt (A) 30,261.91 24,442.99
Total Equity (B) 21,801.28 19,865.17
Total Equity and Net Debt (C = A + B) 52,063.19 44,308.16
Gearing ratio 58% 55%
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements. Breaches in meeting the financial covenants would permit the bank to
immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-
bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2021 and March 31, 2020.
33 Information required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act) and Schedule III of the Companies Act, 2013 for the year ended
March 31, 2021. This information has been determined to the extent such parties have been identified on
the basis of information available with the Company and relied upon by auditors.
H In crore
Sr. Particulars March 31, 2021 March 31, 2020
No
i) Principal amount and interest due thereon remaining unpaid
to any supplier as at the end of each accounting year.
Principal 1.94 0.58
Interest Nil Nil
ii) The amount of interest paid by the buyer in terms of section Nil Nil
16, of the Micro Small and Medium Enterprise Development
Act, 2006 (27 of 2006), along with the amounts of the
payment made to the supplier beyond the appointed day
during each accounting year.
iii) The amount of interest due and payable for the period of Nil Nil
delay in making payment (which have been paid but beyond
the appointed day during the year) but without adding the
interest specified under Micro Small and Medium Enterprise
Development Act, 2006.
33 (contd.)
H In crore
Sr. Particulars March 31, 2021 March 31, 2020
No
iv) The amount of interest accrued and remaining unpaid at the Nil Nil
end of each accounting year
v) The amount of further interest remaining due and payable Nil Nil
even in the succeeding years until such date when the
interest dues as above are actually paid to the small
enterprise for the purpose of disallowance as a deductible
expenditure under section 23 of MSMED Act 2006.
b) Contract/ Commitment for purchase of certain supplies. Advance given H231.20 crore (previous year H356.95
crore)
c) The Company has provided a letter of support to few subsidiaries to provide financials support if and when
needed to meet its financials obligation.
36 The following are the details of loans and advances in the nature of loans given to subsidiaries, associates
and other entities in which directors are interested in terms of regulation 53 (F) read together with para A
of Schedule V of SEBI ( Listing Obligation and Disclosure Regulation, 2015).
H In crore
Sr. No Particulars Outstanding Maximum amount
amount as at outstanding during
the year
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
(i) Adani Logistics Limited - 360.32 360.32 801.57
(ii) Adani Kandla Bulk Terminal Private Limited 820.76 1,234.62 1,291.30 1,234.62
(iii) The Dhamra Port Company Limited 865.04 1,341.24 1,561.40 1,722.45
(iv) Adani Petronet (Dahej) Port Private Limited 50.39 170.25 188.93 321.29
(v) Adani Murmugao Port Terminal Private Limited 413.43 380.95 424.61 395.95
(vi) Adani Ennore Container Terminal Private 378.29 802.76 878.29 802.76
Limited
(vii) Adani Hazira Port Limited 1,300.00 1,435.00 1,535.00 1,793.00
(viii) Adani Vizag Coal Terminal Private Limited (refer 417.61 390.01 417.61 390.01
note 4 (b) (i))
(ix) Karnavati Aviation Private Limited 47.68 48.07 71.78 48.07
(x) Adani Kattupalli Port Limited 18.42 22.70 25.22 22.70
(xi) Shanti Sagar International Dredging Limited - 9.50 74.38 98.15
(xii) Mundra SEZ Textile and Apparel Park Private 29.08 31.05 31.05 31.05
Limited
(xiii) Adani Vizhinjam Port Private Limited 903.48 1,553.66 1,599.82 1,553.66
(xiv) Mundra International Airport Private Limited 0.55 1.76 3.64 2.65
(xv) Adani Hospitals Mundra Private Limited 0.86 0.64 0.86 0.64
(xvi) MPSEZ Utilities Limited - 0.10 0.10 6.10
(xvii) Adani Mundra LPG Terminal Private Limited - - - 571.00
(xviii) Adani Total Private Limited 68.00 68.00 68.00 627.37
(xix) Adani Warehousing Services Private Limited 8.80 - 10.71 -
(xx) Abbot Point Operations Pty Limited 86.34 92.15 92.15 98.04
(xxi) Adani CMA Mundra Container Terminal Private 267.22 276.56 276.56 477.76
Limited
(xxii) Adani International Container Terminal Private 484.05 987.81 987.81 1,011.28
Limited
(xxiii) Marine Infrastructure Developer Private Limited 197.56 460.85 528.21 535.85
(xxiv) Dholera Infrastructure Private Limited 4.91 4.91 4.91 4.91
(xxv) Dholera Port & Special Economic Zone Limited 4.22 4.22 4.22 4.22
(xxvi) Adani Dhamra LPG Terminal Private Limited - 1.85 1.85 1.85
(xxvii) Madurai Infrastructure Private Limited - - - 228.50
(xxviii) Adani Krishnapatnam Port Limited (formerly 6,576.50 - 6,873.50 -
known as Krishnapatnam Port Company
Limited)
(xxix) Adani Bangladesh Ports Private Limited 9.58 - 10.03 -
(xxx) Dighi Port Limited 704.71 - 704.71 -
(xxxi) Adani Mundra Port Holding Pte. Limited 182.88 0.11 183.08 0.11
(xxxii) Adani International Terminal Pte Limited 1,108.49 959.20 1,253.22 959.20
Note -All loans are given on interest bearing except loan to Dholera Infrastructure Private Limited, Dholera Port
& Special Economic Zone Limited, Karnavati Aviation Private Limited, Adani Hospitals Mundra Private Limited,
Mundra International Airport Private Limited, Abbot Point Operations Pty Limited and Adani Bangladesh Port
Private Limited
37 Disclosure of significant interest in subsidiaries and joint ventures as per Ind AS 27 para 17.
Sr. No Name of Entities Relationship Place of Business Ownership %
(i) Adani Logistics Limited Subsidiary India 100
(ii) Karnavati Aviation Private Limited Subsidiary India 100
(iii) MPSEZ Utilities Limited Subsidiary India 100
(iv) Mundra SEZ Textile and Apparel Park Private Subsidiary India 50
Limited
(v) Adani Murmugao Port Terminal Private Limited Subsidiary India 100
(vi) Mundra International Airport Private Limited Subsidiary India 100
(vii) Adani Hazira Port Limited Subsidiary India 100
(viii) Adani Petronet (Dahej) Port Private Limited Subsidiary India 74
(ix) Madurai Infrastructure Private Limited Subsidiary India 100
(formerly known as Mundra LPG Infrastructure
Private Limited)
(x) Adani Vizag Coal Terminal Private Limited Subsidiary India 100
(xi) Adani Kandla Bulk Terminal Private Limited Subsidiary India 100*
(xii) Adani Warehousing Services Private Limited Subsidiary India 100
(xiii) Adani Ennore Container Terminal Private Limited Subsidiary India 100
(xiv) Adani Hospitals Mundra Private Limited Subsidiary India 100
(xv) The Dhamra Port Company Limited Subsidiary India 100
(xvi) Shanti Sagar International Dredging Limited Subsidiary India 100
(xvii) Abbot Point Operations Pty Limited Subsidiary Australia 100
(xviii) Adani Vizhinjam Port Private Limited Subsidiary India 100
(xix) Adani Kattupalli Port Limited Subsidiary India 100
(xx) The Adani Harbour Services Limited Subsidiary India 100
(xxi) Mundra International Gateway Terminal Private Subsidiary India 100
Limited
(xxii) Adani International Terminals Pte Ltd Subsidiary Singapore 100
(xxiii) Dholera Infrastructure Private Limited Subsidiary India 49
(xxiv) Adinath Polyfills Private Limited Subsidiary India 100
(Acquisition of Controlling Interest in Equity
Shares of Company)
(xxv) Marine Infrastructure Developer Private Limited Subsidiary India 97
(xxvi) Adani Mundra Port Holding Pte Limited Subsidiary Singapore 100
(xxvii) Mundra Crude Oil Terminal Private Limited Subsidiary India 100
(xxviii) Adani Tracks Management Services Private Subsidiary India 100
Limited
(xxix) Adani Pipelines Private Limited Subsidiary India 100
(xxx) Adani Bangladesh Ports Private Limited Subsidiary Bangladesh 100
(xxxi) Adani Krishnapatnam Port Limited [acquired on Subsidiary India 75
October 01, 2020]
(xxxii) Dighi Port Limited [acquired on February 15, Subsidiary India 100
2021)
(xxxiv) Aqua Desilting Private Limited Subsidiary India 100
(xxxv) Adani International Container Terminal Private Joint India 50
Limited Ventures
(xxxvi) Adani CMA Mundra Terminal Private Limited India 50
* Includes beneficial ownership of 26% of equity interest in aforesaid subsidiary (refer note 4 (c)).
38 The Company had entered into preliminary under Section 230 to 232 and other applicable
agreement dated September 30, 2014 with a party provisions of the Companies Act, 2013 and
for development and maintenance of Liquefied the Rules framed thereunder (“the Act”).
Natural Gas (“LNG”) terminal infrastructure The said Scheme is effective upon approval
facilities at Mundra (“the LNG Project”). of shareholders, creditors, Hon’ble National
During the previous year ended March 31, 2020, Company Law Tribunal and other regulatory
due to the disputes between the Company and and statutory approvals as applicable.
Customer with respect to construction, operation b) On March 03, 2021, the Company had
and maintenance of the LNG Project, Interim announced that it will be acquiring stake of
settlement and Arbitration Agreement dated 31.50% in Gangavaram Port Limited (“GPL”)
December 24, 2019 was executed. Pursuant from existing shareholder of GPL subject to
thereto, H666 crore has been received and necessary regulatory approvals. The Company
arbitration has been invoked by the Company. On has completed acquisition of 31.50% equity
July 08, 2020, the Company has filed its claim stake of GPL on April 16, 2021. On March 13,
before Arbitral Tribunal. On October 07, 2020, 2021, the Company has announced that it
the customer has also filed counter claim before will be acquiring controlling stake of 58.10%
Arbitral Tribunal. Pending further developments, in GPL from existing shareholders of GPL
no revenue or expenses has been recorded till subject to necessary regulatory approvals.
March 2021.
41 Company’s subsidiary in Myanmar has signed a
39 The Code on Wages, 2019 and Code of Social contract for setting up a greenfield project i.e.
Security, 2020 (“the Codes”) relating to employee an International Container Terminal, in Yangon,
compensation and post-employment benefits had Myanmar in May 2019 and has invested USD 127
received Presidential assent but the related rules million on the project upto March 31, 2021. The
thereof for quantifying the financial impact have Company continues to estimate the feasibility of
not been notified. The Company will assess the this project to be viable. However, in light of the
impact of the Codes when the rules are notified Military coup in Myanmar and sanctions imposed
and will record any related impact in the period by the United States on Myanmar Economic
the Codes become effective. Corporation, the Company has obtained US
based counsel’s view on its legal compliance
40 a) On March 03, 2021, the board of directors position (which confirms that there is no legal
have approved the Composite Scheme non-compliance) and is proactively approaching
of Arrangement between the Company the Office of Foreign Assets Control (OFAC) of
and Brahmi Tracks Management Services US Department of Treasury operations, to make
Private Limited (“Brahmi”) and Adani Tracks sure that it is not in violation of the sanctions due
Management Services Private Limited (“Adani to the recent developments. Company is also in
Tracks”) and Sarguja Rail Corridor Private touch with Indian embassy in Myanmar to ensure
Limited (“Sarguja”) and their respective safety of the employees.
shareholders and creditors (the ‘Scheme’)
42 Adani Vizhinjam Port Private Limited (“AVPPL”), adverse action including termination of the
a subsidiary of the Company, was awarded Concession Agreement and levying liquidated
Concession Agreement (“CA”) dated August 17, damages at a rate of 0.1% of the amount of
2015 by Government of Kerala for development of performance security for each day of delay in
Vizhinjam International Deepwater Multipurpose project completion in terms of the CA.
Seaport (“Project”). In terms of the CA the The management represent that the project
scheduled Commercial Operation Date (“COD”) of development is progressing with revised timelines
the Project was December 03, 2019 extendable which has to be agreed with authorities and
to August 30, 2020 with certain conditions. As during the year, AVPPL received acknowledgment
at reporting date, the Project development is on achievement of Milestone III as per the terms
still in progress although COD date is past due in of the CA from the Authorities on November 30,
terms of CA. During the current year and earlier 2020. The Ministry of Environment & Forests
years, AVPPL has made several representations (MoEF) has also extended validity of the
to Vizhinjam International Sea Port Limited Environmental Clearance from January 2019 to
(“VISL”, the Implementing Agency on behalf January 2024 on the proposal of VISL. As per
of the Government) and Department of Ports, management commitment to develop the project,
Government of Kerala in respect difficulties faced on February 02, 2021, AVPPL has availed additional
by AVPPL including reasons attributable to the Equity Funding of H697.04 crore from Adani Ports
government authorities and Force Majeure events and Special Economic Zone Limited (“APSEZ”) to
such as Ockhi Cyclone, High Waves, National meet the requirement of Equity Funding as per
Green Tribunal Order and COVID 19 pandemic etc. the Approved Financial Package and on February
which led to delay in development of the project 08, 2021 AVPPL has also availed term loan
and AVPPL not achieving COD. disbursement from Bank of H500 crore for funding
Considering the above reasons and authorities’ for the Project development. Based on the above
rights to terminate the CA on completion of developments and on the basis of favorable legal
extendable COD date, AVPPL issued a Notice of opinion from the external legal counsel in respect
Disputes to Secretary and Principle Secretary of of likely outcome of the arbitration proceedings,
Ports, Government of Kerala under Clause 45.1 the management believes that it is not likely to
of the CA on July 26, 2020 followed by a Notice have significant financial impact of the disputes
of Conciliation on August 04, 2020 under Clause which is required to be considered in the financial
45.2 of the CA. On November 07, 2020, AVPPL statements for the year ended March 31, 2021.
issued a Notice of Arbitration in terms of Clause
45.3 of the CA which led to commencement of the 43
The Company’s management has made
arbitration proceedings through appointment of assessment of likely impact from the COVID-19
the nominee arbitrator on behalf of the Authorities pandemic on business and financial risks based
and presiding arbitrator respectively on the on internal and external sources. The Company
matter w.e.f. February 05, 2021 and February 25, has also considered the possible effects of
2021 respectively. The first procedural hearing on COVID-19 on the carrying amounts of its financial
the arbitration matters were held on March 13, and non-financial assets and debt covenants
2021 wherein terms of arbitration and course of using reasonably available information, estimates
action has been discussed and agreed between and judgments and has determined that none of
the parties and the matter is presently sub judice. these balances require a material adjustment to
As at reporting date, pending resolution of their carrying values. Further, the management
disputes with the VISL authorities and arbitration does not see any medium to long term risks in the
proceedings in progress, the Government ability of the Company to meet its liabilities as
Authorities continue to have right to take certain and when they fall due.
44 Standards issued but not effective ii) On April 16, 2021, the Company has
As at the date of issue of financial statements, completed acquisition of 31.50% equity stake
there are no new standards or amendments of Gangavaram Port Limited.
which have been notified by the MCA but not yet iii) On April 19, 2021, the Company has allotted
adopted by the Company. Hence, the disclosure is 1,00,00,000 equity shares having face value
not applicable. of H2 each on preferential basis to Windy
Lakeside Investment Limited at an issue price
45 Event occurred after the Balance Sheet of H800 per share (including premium of H798
per share).
Date
iv) The Board of Directors of the Company has
i) The Company has entered into share purchase
recommended Equity dividend of H5 per equity
agreement on April 4, 2021 to acquire balance
share (previous year Nil) on 2,041,751,761
25% equity stake of the Adani Krishnapatnam
equity shares.
Port Limited from its erstwhile promoters.
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad
Date : 04 May, 2021
Consolidated
Financial
Statements
To
The Members of
Adani Ports and Special Economic Zone Limited
Report on the Audit of the Consolidated Chartered Accountants of India (ICAI) together with
Financial Statements the ethical requirements that are relevant to our audit
of the consolidated financial statements under the
Opinion provisions of the Act and the Rules made thereunder,
We have audited the accompanying consolidated and we have fulfilled our other ethical responsibilities
financial statements of Adani Ports and Special in accordance with these requirements and the ICAI’s
Economic Zone Limited (”the Parent”) and its Code of Ethics. We believe that the audit evidence
subsidiaries, (the Parent and its subsidiaries together obtained by us and the audit evidence obtained by
referred to as “the Group”) which includes the Group’s other auditors in terms of their reports referred to in
share of loss in its associate and joint ventures, the sub-paragraphs (a) and (b) of the Other Matters
which comprise the Consolidated Balance Sheet as section below, is sufficient and appropriate to provide
at March 31, 2021, and the Consolidated Statement a basis for our audit opinion on the consolidated
of Profit and Loss (including Other Comprehensive financial statements.
Income), the Consolidated Statement of Changes in
Emphasis of Matter
Equity and the Consolidated Statement of Cash Flows
for the year then ended, and a summary of significant We draw attention to:
accounting policies and other explanatory information (i) Note 43 to the consolidated financial statement,
(hereinafter referred to as “the Consolidated Financial regarding the management’s impairment
Statements”). assessment of property, plant and equipment of
H 11.42 crores and intangible assets of H 1,031.20
In our opinion and to the best of our information and
crores, as at 31 March 2021 being considered
according to the explanations given to us, and based
recoverable based on the future operational plans
on the consideration of reports of other auditors
and cash flows wherein the projections are made
on separate financial statements of subsidiaries,
based on various judgements and estimates
and joint ventures referred to in the Other Matters
related to cargo traffic, port tariffs, inflation,
section below, the aforesaid consolidated financial
discount rates and implications expected to arise
statements give the information required by the
from COVID-19 pandemic, wherein the actuals
Companies Act, 2013 (“the Act”) in the manner so
could vary, in case of Adani Murmugao Port
required and give a true and fair view in conformity
Terminal Private Limited and Adani Kandla Bulk
with the Indian Accounting Standards prescribed
Terminal Private Limited and also considering
under section 133 of the Act read with the Companies
the expected relaxation to be received for
(Indian Accounting Standards) Rules, 2015, as
revenue share on storage charge in case of Adani
amended (‘Ind AS’), and other accounting principles
Murmugao Terminal Private Limited. Accordingly,
generally accepted in India, of the consolidated state
for the reasons stated therein in the said Note, no
of affairs of the Group as at March 31, 2021, and
provision towards impairment of carrying values
their consolidated profit, their consolidated total
of the aforesaid property, plant and equipment
comprehensive income, their consolidated cash flows
and intangible assets is considered necessary at
and their consolidated changes in equity for the year
this stage
ended on that date.
(ii) Note 46 to the consolidated financial Statement,
Basis for Opinion which describes the matter relating to delay
We conducted our audit of the consolidated financial in achievement of scheduled commercial
statements in accordance with the Standards on operation date (“COD” i.e. December 03, 2019)
Auditing specified under section 143 (10) of the Act of the development of international deep-water
(SAs). Our responsibilities under those Standards are multipurpose seaport being constructed by
further described in the Auditor’s Responsibility for Adani Vizhinjam Port Private Limited (“AVPPL”)
the Audit of the Consolidated Financial Statements at Vizhinjam, Kerala (the “Project”), as stipulated
section of our report. We are independent of the Group under the relevant concession agreement
and its associate and joint ventures in accordance (“Agreement”) and status of arbitration
with the Code of Ethics issued by the Institute of proceedings initiated by AVPPL to resolve
disputes with the Government authorities over How the Key Audit Matter Was Addressed in the
various matters relating to development of the Audit
project, which led to delay in achieving scheduled
Our audit procedures related to forecasts of future
COD, as at reporting date, detailed in the said
revenue and operating margin and selection of the
note.
discount rate for these SCAs included the following,
Our report is not modified in respect of these matters. among others:
Our objectives are to obtain reasonable assurance • Evaluate the overall presentation, structure and
about whether the consolidated financial statements content of the consolidated financial statements,
as a whole are free from material misstatement, including the disclosures, and whether the
whether due to fraud or error, and to issue an consolidated financial statements represent the
auditor’s report that includes our opinion. Reasonable underlying transactions and events in a manner
assurance is a high level of assurance, but is not a that achieves fair presentation.
guarantee that an audit conducted in accordance • Obtain sufficient appropriate audit evidence
with SAs will always detect a material misstatement regarding the financial information of the entities
when it exists. Misstatements can arise from fraud or or business activities within the Group and its
error and are considered material if, individually or in associate and joint ventures to express an opinion
the aggregate, they could reasonably be expected to on the consolidated financial statements. We
influence the economic decisions of users taken on are responsible for the direction, supervision
the basis of these consolidated financial statements. and performance of the audit of the financial
statements of such entities or business activities
As part of an audit in accordance with SAs, we exercise included in the consolidated financial statements
professional judgment and maintain professional of which we are the independent auditors. For
skepticism throughout the audit. We also: the other entities or business activities included
• Identify and assess the risks of material in the consolidated financial statements, which
misstatement of the consolidated financial have been audited by the other auditors, such
statements, whether due to fraud or error, design other auditors remain responsible for the direction,
and perform audit procedures responsive to those supervision and performance of the audits carried
risks, and obtain audit evidence that is sufficient out by them. We remain solely responsible for our
and appropriate to provide a basis for our opinion. audit opinion.
The risk of not detecting a material misstatement Materiality is the magnitude of misstatements in the
resulting from fraud is higher than for one resulting consolidated financial statements that, individually
from error, as fraud may involve collusion, forgery, or in aggregate, makes it probable that the economic
intentional omissions, misrepresentations, or the decisions of a reasonably knowledgeable user of the
override of internal control. consolidated financial statements may be influenced.
referred to in the Other Matters section above we of internal financial controls over financial
report, to the extent applicable that: reporting of those companies.
a) We have sought and obtained all the g) With respect to the other matters to be
information and explanations which to included in the Auditor’s Report in accordance
the best of our knowledge and belief were with the requirements of section 197(16) of
necessary for the purposes of our audit of the the Act, as amended, in our opinion and to the
aforesaid consolidated financial statements. best of our information and according to the
explanations given to us, the remuneration
b) In our opinion, proper books of account as
paid by the Parent to its directors during the
required by law relating to preparation of the
year is in accordance with the provisions of
aforesaid consolidated financial statements
section 197 of the Act.
have been kept so far as it appears from our
examination of those books and the reports h) With respect to the other matters to be
of the other auditors. included in the Auditor’s Report in accordance
with Rule 11 of the Companies (Audit and
c) The Consolidated Balance Sheet, the
Auditors) Rules, 2014, as amended in our
Consolidated Statement of Profit and Loss
opinion and to the best of our information
including Other Comprehensive Income, the
and according to the explanations given to
Consolidated Statement of Cash Flows and
us:
the Consolidated Statement of Changes
in Equity dealt with by this Report are in i) The consolidated financial statements
agreement with the relevant books of account disclose the impact of pending litigations
maintained for the purpose of preparation of on the consolidated financial position of
the consolidated financial statements. the Group and its joint ventures;
d) In our opinion, the aforesaid consolidated ii) Provision has been made in the
financial statements comply with the Ind AS consolidated financial statements,
specified under Section 133 of the Act. as required under the applicable law
or accounting standards, for material
e) On the basis of the written representations
foreseeable losses, if any, on long-term
received from the directors of the Parent
contracts including derivative contracts;
as on March 31, 2021 taken on record by
the Board of Directors of the Company and iii) There has been no delay in transferring
the reports of the statutory auditors of its amounts, required to be transferred, to
subsidiary companies and joint venture the Investor Education and Protection
companies incorporated in India, none of the Fund by the Parent and its subsidiary
directors of the Group companies, and joint companies and its joint venture
venture companies incorporated in India is companies incorporated in India.
disqualified as on March 31, 2021 from being
appointed as a director in terms of Section
164(2) of the Act.
For Deloitte Haskins & Sells LLP
f) With respect to the adequacy of the internal
Chartered Accountants
financial controls over financial reporting and
(Firm’s Registration No 117366W/W-100018)
the operating effectiveness of such controls,
refer to our separate Report in “Annexure A” Kartikeya Raval
which is based on the auditors’ reports of Partner
the Parent, subsidiary companies and joint (Membership No. 106189)
venture companies incorporated in India. Our (UDIN: 21106189AAAAEO7790)
report expresses an unmodified opinion on Place: Ahmedabad
the adequacy and operating effectiveness Date: May 04, 2021
Report on the Internal Financial Controls audit of internal financial controls. Those Standards
Over Financial Reporting under Clause and the Guidance Note require that we comply
with ethical requirements and plan and perform the
(i) of Sub-section 3 of Section 143 of the audit to obtain reasonable assurance about whether
Companies Act, 2013 (“the Act”) adequate internal financial controls over financial
In conjunction with our audit of the consolidated reporting was established and maintained and if such
financial statements of the Company as of and for controls operated effectively in all material respects.
the year ended March 31, 2021, we have audited the
Our audit involves performing procedures to obtain
internal financial controls over financial reporting
audit evidence about the adequacy of the internal
of Adani Ports and Special Economic Zone Limited
financial controls system over financial reporting and
(hereinafter referred to as “Parent”), its subsidiary
their operating effectiveness. Our audit of internal
companies and its joint ventures, which are companies
financial controls over financial reporting included
incorporated in India, as of that date.
obtaining an understanding of internal financial
Management’s Responsibility for Internal controls over financial reporting, assessing the risk
Financial Controls that a material weakness exists, and testing and
evaluating the design and operating effectiveness
The respective Board of Directors of the Parent, its
of internal control based on the assessed risk.
subsidiary companies and its joint ventures, which
The procedures selected depend on the auditor’s
are companies incorporated in India, are responsible
judgement, including the assessment of the risks of
for establishing and maintaining internal financial
material misstatement of the financial statements,
controls based on the internal control over financial
whether due to fraud or error.
reporting criteria established by the respective
Companies considering the essential components We believe that the audit evidence we have obtained
of internal control stated in the Guidance Note on and the audit evidence obtained by other auditors of
Audit of Internal Financial Controls Over Financial the subsidiary companies and joint ventures, which
Reporting issued by the Institute of Chartered are companies incorporated in India, in terms of their
Accountants of India (ICAI). These responsibilities reports referred to in the Other Matters paragraph
include the design, implementation and maintenance below, is sufficient and appropriate to provide a basis
of adequate internal financial controls that were for our audit opinion on the internal financial controls
operating effectively for ensuring the orderly and system over financial reporting of the Parent, its
efficient conduct of its business, including adherence subsidiary companies and its joint ventures, which are
to the respective company’s policies, the safeguarding companies incorporated in India.
of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the Meaning of Internal Financial Controls Over
accounting records, and the timely preparation of Financial Reporting
reliable financial information, as required under the A company’s internal financial control over financial
Companies Act, 2013. reporting is a process designed to provide reasonable
assurance regarding the reliability of financial
Auditor’s Responsibility reporting and the preparation of financial statements
Our responsibility is to express an opinion on the for external purposes in accordance with generally
internal financial controls over financial reporting accepted accounting principles. A company’s internal
of the Parent, its subsidiary companies and its joint financial control over financial reporting includes
ventures, which are companies incorporated in those policies and procedures that (1) pertain to
India, based on our audit. We conducted our audit the maintenance of records that, in reasonable
in accordance with the Guidance Note on Audit of detail, accurately and fairly reflect the transactions
Internal Financial Controls Over Financial Reporting and dispositions of the assets of the company; (2)
(the “Guidance Note”) issued by the Institute of provide reasonable assurance that transactions
Chartered Accountants of India and the Standards are recorded as necessary to permit preparation of
on Auditing, prescribed under Section 143(10) of the financial statements in accordance with generally
Companies Act, 2013, to the extent applicable to an accepted accounting principles, and that receipts and
expenditures of the company are being made only in financial reporting were operating effectively as
accordance with authorisations of management and at March 31, 2021, based on the criteria for internal
directors of the company; and (3) provide reasonable financial control over financial reporting established
assurance regarding prevention or timely detection by the respective companies considering the
of unauthorised acquisition, use, or disposition of the essential components of internal control stated in the
company’s assets that could have a material effect on Guidance Note on Audit of Internal Financial Controls
the financial statements. Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
Inherent Limitations of Internal Financial
Controls Over Financial Reporting Other Matters
Because of the inherent limitations of internal Our aforesaid report under Section 143(3)(i) of the
financial controls over financial reporting, including Act on the adequacy and operating effectiveness of
the possibility of collusion or improper management the internal financial controls over financial reporting
override of controls, material misstatements due to insofar as it relates to 56 subsidiary companies and
error or fraud may occur and not be detected. Also, two joint ventures, which are companies incorporated
projections of any evaluation of the internal financial in India, is based solely on the corresponding reports
controls over financial reporting to future periods are of the auditors of such companies incorporated in
subject to the risk that the internal financial control India.
over financial reporting may become inadequate Our opinion is not modified in respect of the above
because of changes in conditions, or that the degree matter.
of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion to the best of our information and For Deloitte Haskins & Sells LLP
according to the explanations given to us and based Chartered Accountants
on the consideration of the reports of the other (Firm’s Registration No 117366W/W-100018)
auditors referred to in the Other Matters paragraph
below, the Parent, its subsidiary companies and its Kartikeya Raval
joint ventures, which are companies incorporated Partner
in India, have, in all material respects, an adequate (Membership No. 106189)
internal financial controls system over financial (UDIN: 21106189AAAAEO7790)
reporting and such internal financial controls over Place: Ahmedabad
Date: May 04, 2021
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
The accompanying notes form an integral part of the consolidated financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Gautam S. Adani Rajesh S. Adani
Chairman and Managing Director Director
DIN : 00006273 DIN : 00006322
Kartikeya Raval Karan Adani Deepak Maheshwari
Partner Wholetime Director and CEO Chief Financial Officer
DIN: 03088095
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
Balance as at March 31, 2020 406.35 166.53 599.56 - 477.20 746.35 7.84 2,719.80 20,292.17 40.48 (12.12) 179.33 25,623.49 219.59 25,843.08
Statutory Reports
Financial Statements
The accompanying notes form an integral part of the consolidated financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Gautam S. Adani Rajesh S. Adani
Chairman and Managing Director Director
DIN : 00006273 DIN : 00006322
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
Corporate overview Statutory Reports Financial Statements
The accompanying notes form an integral part of the consolidated financial statements
As per our report of even date
For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Gautam S. Adani Rajesh S. Adani
Chairman and Managing Director Director
DIN : 00006273 DIN : 00006322
Kartikeya Raval Karan Adani Deepak Maheshwari
Partner Wholetime Director and CEO Chief Financial Officer
DIN: 03088095
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 04, 2021 Date : May 04, 2021
Ministry of Commerce and Industry vide approval 7) Mundra International Airport Private Limited
letter dated April 24, 2015. The Company has (“MIAPL”), a 100% subsidiary of APSEZL, has
received single notification consolidating all three plan to set up air cargo operations at Kawai,
notified SEZ in Mundra vide letter dated March Rajasthan.
15, 2016 of Ministry of Commerce and Industry,
8) Adani Hazira Port Limited (“AHPL”) (Formerly
Department of Commerce (SEZ Section).
known as Adani Hazira Port Private
The consolidated financial statements were Limited), a 100% subsidiary of APSEZL, has
authorised for issue in accordance with a developed multi – cargo terminal and related
resolution of the directors on May 04, 2021. infrastructure at Hazira - Surat (Gujarat). The
Major Entities and their nature of operations are further expansion of port facilities is under
as follows: development.
1) Adani Logistics Limited (“ALL”), a 100% 9) Adani Vizag Coal Terminal Private Limited
subsidiary of APSEZL, has developed multi- (“AVCTPL”) is a 100% subsidiary of APSEZL. The
model cargo storage-cum-logistics services Company has developed Port infrastructure
through development of Inland Container facilities at East Quay for handling steam coal
Depots (ICDs) and Container Freight Stations at Visakhapatnam Port.
(CFSs) at various strategic locations and
operates container trains on specific railway 10) Adani Kandla Bulk Terminal Private Limited
routes as per concession agreement entered (“AKBTPL”) is a 100% subsidiary of APSEZL.
into with Ministry of Railways, Government of The Company has developed a Dry Bulk
India. terminal off Tekra near Tuna outside Kandla
creek at Kandla Port.
2) MPSEZ Utilities Limited (“MUL”) (Formerly
known as MPSEZ Utilities Private Limited), 11) Adani Warehousing Services Private Limited
is a 100% subsidiary of APSEZL, has (“AWSPL”) is a 100% subsidiary of APSEZL. The
developed infrastructure including operation, Company is formed to provide warehousing /
development, maintenance, improvement and storage facilities and other related services.
extension of utility services (including power 12) Adani Ennore Container Terminal Private
distribution) at Mundra Special Economic Limited (“AECTPL”) is a 100% subsidiary
Zone in Kutch district, Gujarat. of APSEZL. The Company has developed
3) Mundra SEZ Textile and Apparel Park Private container terminal and other related
Limited (“MITAP”), a 49.88% subsidiary of infrastructure at Ennore Port.
APSEZL and 5.40% investment held through 13) Adani Hospitals Mundra Private Limited
ALL (a 100% subsidiary of APSEZL), has set up (“AHMPL”) is a 100% subsidiary of APSEZL.
an integrated textile park under the scheme The Company provides hospital and related
of Ministry of Textiles, Government of India services at Mundra.
in Special Economic Zone at Mundra, Kutch
district, Gujarat. 14) The Dhamra Port Company Limited (“DPCL”), is
a 100% subsidiary of APSEZL and is operating
4) Karnavati Aviation Private Limited (“KAPL”), bulk cargo port infrastructure facilities at
a 100% subsidiary of APSEZL, is engaged in Dhamra in the state of Odisha.
providing non scheduled (passenger) airline
services through its aircrafts. 15) Shanti Sagar International Dredging Limited
(“SSIDL”) (Formerly known as Shanti Sagar
5) Adani Petronet (Dahej) Port Private Limited International Dredging Private Limited) is a
(“APDPPL”), a 74% subsidiary of APSEZL, has 100% subsidiary of APSEZL. The Company is
developed a Solid Cargo Port Terminal and providing dredging services.
related port infrastructure facilities of bulk
cargo at Dahej, Gujarat. 16) The Adani Harbour Services Limited (“TAHSL”)
(Formerly known as The Adani Harbour
6) Adani Murmugao Port Terminal Private Limited Services Private Limited) is a 100% subsidiary
(“AMPTPL”), a 100% subsidiary of APSEZL, has of APSEZL. Previously, the company was
developed port infrastructure facilities i.e. known as TM Harbour Services Private
coal handling terminal at Murmugao, Goa. Limited. The principal activity of TAHSPL is
to own and operate harbour tugs, barges,
424 | Adani Ports and Special Economic Zone Limited
Corporate overview Statutory Reports Financial Statements
other port crafts, ocean towage and offshore and is engaged in the business of Logistics
support vessels and to provide marine Operations.
services like pilotage, laying and maintenance
Pursuant to such acquisition, subsidiary
of buoys including SBMs, mooring of vessels
companies of ALSPL have became step down
at berth and mid-stream.
subsidiary companies of Adani Logistics
17) Adani Vizhinjam Port Private Limited Limited (the subsidiary company of APSEZL).
(“AVPPL”), a 100% subsidiary of APSEZL, is
24) Adani Bangladesh Ports Private Limited
developing container terminal port and other
(“ABPPL”) has been incorporated as a wholly
related infrastructure at Vizhinjam.
owned subsidiary of the Company on
18) Adani Kattupalli Port Limited (“AKPL”) February 17, 2020.
(Formerly known as Adani Kattupalli Port
25) APSEZL has acquired 75% equity shares of
Private Limited), a 100% subsidiary of APSEZL
Adani Krishnapatnam Port Limited (“AKPL”)
is engaged in the business of Container
(Formerly known as Krishnapatnam Port
Freight Station at Kattupalli Port, Tamil Nadu.
Company Limited) on October 01, 2020 and is
19) Abbot Point Operations Pty Limited (“APO”) engaged in the business of Port Operations.
is a 100% subsidiary of the Company and Pursuant to such acquisition, subsidiary
engaged in the business of Operation and companies of AKPL have became step down
Maintenance (O&M) service to port. subsidiary companies of APSEZL.
20) Marine Infrastructure Developer Private 26) APSEZL has acquired 100% equity shares
Limited is subsidiary of APSEZL with 97% of Dighi Port Limited (“DPL”) on February 15,
equity stake and is engaged in the business 2021 and is engaged in the business of Port
of Port Operations at Kattupalli Port. Operations.
21) Adani Yangon International Terminal Company
2 Basis of preparation
Limited (“AYITCL”) is wholly owned subsidiary
of Adani International Terminals Pte Limited 2.1 The consolidated financials statements of the
(a subsidiary company), developing port Group has been prepared in accordance with
infrastructure at Myanmar Indian Accounting Standards (Ind AS) notified
under the Companies ( Indian Accounting
22) Adani Agri Logistics Limited, Adani Agri Standards) Rules, 2015 as amended from time to
Logistics (Dahod) Limited, Adani Agri time.
Logistics (Samastipur) Limited and Adani
Agri Logistics (Darbhanga) Limited had Accounting policies have been consistently
become wholly owned subsidiaries of applied except where a newly-issued accounting
Adani Logistics Limited (the subsidiary standard is initially adopted or a revision to an
company of APSEZL) and is engaged existing accounting standard requires a change
in the business of Logistics Operations. in accounting policy as mentioned in note 2.3 y)
Pursuant to the acquisition of 100% equity hitherto in use.
stake of Adani Agri Logistics Limited (“”AALL””), The consolidated financial statements have been
subsidiary companies of AALL have became prepared on a historical basis, except for the
step down subsidiary companies of Adani following assets and liabilities which have been
Logistics Limited (the subsidiary company of measured at fair value or revalued amount :
APSEZL).
- Derivative financial instruments
23) Subsidiary company Adani Logistics Limited
- Defined Benefit Plans - Plan Assets measured
acquired 98.29% equity shares of Adani
at fair value and
Logistics Services Private Limited (“ALSPL”)
(formerly known as Innovative B2B Logistics - Certain financial assets and liabilities measured
Solutions Private Limited) on August 06, 2019 at fair value (refer accounting policy regarding
financial instruments)
In addition, the consolidated financial statements Consolidated financial statements are prepared
are presented in Indian Rupees (H) in crore using uniform accounting policies for like
and all values are rounded off to two decimal transactions and other events in similar
(H00,00,000), except when otherwise indicated. circumstances. If a member of the group uses
accounting policies other than those adopted
2.2 Principles of consolidation in the consolidated financial statements for like
The consolidated financial statements comprise transactions and events in similar circumstances,
the financial statements of the Company, appropriate adjustments are made to that group
subsidiaries, joint venture entities, and associates member’s financial statements in preparing the
and as at March 31, 2021. Control is achieved when consolidated financial statements to ensure
the Group is exposed, or has rights, to variable conformity with the group’s accounting policies.
returns from its involvement with the investee and
has the ability to affect those returns through its The financial statements of all entities used
power over the investee. Specifically, the Group for the purpose of consolidation are drawn up
controls an investee if and only if the Group has:- to same reporting date as that of the parent
company. When the end of the reporting period
- Power over the investee (i.e. existing rights of the parent is different from that of a subsidiary,
that give it the current ability to direct the the subsidiary prepares, for consolidation
relevant activities of the investee) purposes, additional financial information as of
- Exposure, or rights, to variable returns from its the same date as the financial statements of the
involvement with the investee and parent to enable the parent to consolidate the
- The ability to use its power over the investee to financial information of the subsidiary, unless it is
affect its returns impracticable to do so.
to transactions between members of the Group changes in the Group’s share of net assets of the
are eliminated in full on consolidation. joint venture since the acquisition date.
A change in the ownership interest of a subsidiary, The consolidated statement of profit and loss
without a loss of control, is accounted for as an reflects the Group’s share of the results of
equity transaction. If the Group loses control over operations of the joint venture and associate
a subsidiary, it: entities. Any change in OCI of those investees is
presented as part of the Group’s OCI. In addition,
- Derecognises the assets (including goodwill)
when there has been a change recognised
and liabilities of the subsidiary
directly in the equity of the joint venture entities,
- Derecognises the carrying amount of any non- the Group recognises its share of any changes,
controlling interests when applicable, in the statement of changes in
- Derecognises the cumulative translation equity. Unrealised gains and losses resulting from
differences recorded in equity transactions between the Group and the joint
- Recognises the fair value of the consideration venture entities are eliminated to the extent of
received the interest in the joint venture entities.
- Recognises the fair value of any investment If an entity’s share of losses of a joint venture
retained equals or exceeds its interest in the associate
- Recognises any surplus or deficit in profit or or joint venture (which includes any long term
loss interest that, in substance, form part of the
Group’s net investment in the associate or joint
- Reclassifies the parent’s share of components
venture), the entity discontinues recognising
previously recognised in OCI to profit or loss or
its share of further losses. Additional losses are
retained earnings, as appropriate, as would be
recognised only to the extent that the Group
required if the Group had directly disposed of
has incurred legal or constructive obligations or
the related assets or liabilities.
made payments on behalf of the joint venture.
2.3 Summary of significant accounting policies If the joint venture subsequently reports profits,
the entity resumes recognising its share of those
a) Investment in associates and joint venture
profits only after its share of the profits equals
entities
the share of losses not recognised.
An associate is an entity over which the Group
has significant influence. Significant influence The aggregate of the Group’s share of profit or
is the power to participate in the financial and loss of a joint venture entities is shown on the
operating policy decisions of the investee but do face of the consolidated statement of profit and
not control or joint control over those policies. loss.
A joint venture entity is a type of joint arrangement The financial statements of the joint venture
whereby the parties that have joint control of the entities are prepared for the same reporting period
arrangement and have rights to the net assets of as the Group. When necessary, adjustments are
the joint venture. Joint control is a contractually made to bring the accounting policies in line with
agreed sharing of control of an arrangement, those of the Group.
which exists only when decisions about the After application of the equity method, the Group
relevant activities require unanimous consent of determines whether it is necessary to recognise
the parties sharing control. an impairment loss on its investment in its joint
The considerations made in determining whether venture entities. At each reporting date, the
significant influence or joint control, are similar Group determines whether there is objective
to those necessary to determine control over the evidence that the investment in the joint venture
subsidiaries. entities are impaired. If there is such evidence, the
Group calculates the amount of impairment as
The Group’s investments in its associate and the difference between the recoverable amount
joint venture entities are accounted for using of the joint venture entities and its carrying value,
the equity method. Under the equity method, and then recognises the loss as ‘Share of profit
the investment in an associate or a joint venture of a joint venture entities’ in the consolidated
entities is initially recognised at cost. The carrying statement of profit and loss.
amount of the investment is adjusted to recognise
Upon loss of significant influence over associate and items included in the financial statements of
entity/ joint control over the joint venture entities, each entity are measured using that functional
the Group measures and recognises any retained currency. However, for practical reasons, the
investment at its fair value. Any difference Group entities use an average rate if the average
between the carrying amount of the associates approximates the actual rate at the date of
entity / joint venture entities upon loss of transaction. The Group uses the direct method
significant influence or joint control and the fair of consolidation and on disposal of a foreign
value of the retained investment and proceeds operation the gain or loss that is reclassified to
from disposal is recognised in the statement of profit or loss reflects the amount that arises from
profit and loss. using this method.
b) Current versus non-current classification Transactions and balances
The Group presents assets and liabilities in the Transactions in foreign currencies are initially
balance sheet based on current/ non-current recorded by the Group entities at their respective
classification. An asset is treated as current when functional currency spot rates at the date the
it is: transaction first qualifies for recognition.
- Expected to be realised or intended to be sold Monetary assets and liabilities denominated in
or consumed in normal operating cycle; or foreign currencies are translated at the functional
currency spot rates of exchange at the reporting
- Held primarily for the purpose of trading; or
date.
- Expected to be realised within twelve months
after the reporting period; or Exchange differences arising on settlement or
translation of monetary items are recognised in
- Cash and cash equivalent unless restricted profit or loss with the exceptions for which below
from being exchanged or used to settle a treatment is given as per the option availed under
liability for at least twelve months after the Ind AS 101.
reporting period.
i. Exchange differences, arising on long-term
All other assets are classified as non-current. foreign currency monetary items related
A liability is current when: to acquisition of a property, plant and
- It is expected to be settled in normal operating equipment (including funds used for project
cycle; or work-in-progress) recognised in the Indian
GAAP financial statements for the period
- It is held primarily for the purpose of trading; or
ending immediately before the beginning of
- It is due to be settled within twelve months the first Ind AS financial reporting period i.e.
after the reporting period; or March 31, 2016 are capitalised / decapitalised
- There is no unconditional right to defer the to cost of fixed assets and depreciated over
settlement of the liability for at least twelve the remaining useful life of the asset.
months after the reporting period
ii. Exchange differences arising on other
The Group classifies all other liabilities as non- outstanding long term foreign currency
current. monetary items recognised in the Indian
Deferred tax assets and liabilities are classified as GAAP financial statements for the period
non-current assets and liabilities respectively. ending immediately before the beginning
The operating cycle is the time between the of the first Ind AS financial reporting
acquisition of assets for processing and their period i.e. March 31, 2016 are accumulated
realisation in cash or cash equivalents. The Group in the “Foreign Currency Monetary Item
has identified twelve months as its operating Translation Difference Account” (FCMITDA)
cycle. and amortised over the remaining life of
the concerned monetary item or financial
c) Foreign currency transactions : year 2019-20, whichever is earlier. The said
The Group’s consolidated financial statements balance has been completely amortised in
are presented in INR, which is also the parent the previous financial year.
company’s functional currency. For each entity
Non-monetary items that are measured in
the Group determines the functional currency
terms of historical cost in a foreign currency are
translated using the exchange rates at the dates maximizing the use of relevant observable inputs
of the initial transactions. and minimizing the use of unobservable inputs.
Group companies All assets and liabilities for which fair value is
On consolidation, the assets and liabilities of measured or disclosed in the financial statements
foreign operations are translated into INR at the are categorised within the fair value hierarchy,
rate of exchange prevailing at the reporting date described as follows, based on the lowest
and their statements of profit or loss are translated level input that is significant to the fair value
at exchange rates prevailing at the dates of the measurement as a whole:
transactions. For practical reasons, the group uses Level 1 — Quoted (unadjusted) market prices in
an average rate to translate income and expense active markets for identical assets or liabilities
items, if the average rate approximates the
exchange rates at the dates of the transactions. Level 2 — Valuation techniques for which the
The exchange differences arising on translation lowest level input that is significant to the fair
for consolidation are recognised in OCI. On value measurement is directly or indirectly
disposal of a foreign operation, the component of observable
OCI relating to that particular foreign operation is Level 3 — Valuation techniques for which the
recognised in statement of profit and loss. lowest level input that is significant to the fair
d) Fair value measurement value measurement is unobservable
The Group measures financial instruments, such For assets and liabilities that are recognised in
as, derivatives at fair value at each balance sheet the financial statements on a recurring basis,
date. the Group determines whether transfers have
Fair value is the price that would be received to sell occurred between levels in the hierarchy by re-
an asset or paid to transfer a liability in an orderly assessing categorization (based on the lowest
transaction between market participants at the level input that is significant to the fair value
measurement date. The fair value measurement measurement as a whole) at the end of each
is based on the presumption that the transaction reporting period.
to sell the asset or transfer the liability takes The Group’s Management determines the
place either: policies and procedures for both recurring fair
- In the principal market for the asset or liability, value measurement, such as derivative financial
or instruments and unquoted financial assets
measured at fair value and for non recurring fair
- In the absence of a principal market, in the
value measurement, such as an assets under the
most advantageous market for the asset or
scheme of business undertaking.
liability
The principal or the most advantageous market External valuers are involved for valuation of
must be accessible by the Group. significant assets such as business undertaking
for transfer under the scheme and unquoted
The fair value of an asset or a liability is measured financial assets and financial liabilities.
using the assumptions that market participants Involvement of external valuers is decided upon
would use when pricing the asset or liability, annually by the Management and in specific
assuming that market participants act in their cases after discussion with and approval by the
best economic interest. respective company’s Audit Committee. Selection
A fair value measurement of a non-financial asset criteria includes market knowledge, reputation,
takes into account a market participant’s ability to independence and whether professional
generate economic benefits by using the asset in standards are maintained. The Management
its highest and best use or by selling it to another decides, after discussions with the Group’s
market participant that would use the asset in its external valuers, which valuation techniques and
highest and best use. inputs to use for each case.
The Group uses valuation techniques that are At each reporting date, the management analyses
appropriate in the circumstances and for which the movements in the values of assets and
sufficient data are available to measure fair value, liabilities which are required to be remeasured
or re-assessed as per the Group’s accounting
policies. For this analysis, the Management based on the standalone selling prices. Where
verifies the major inputs applied in the latest these prices are not directly observable, they are
valuation by agreeing the information in the estimated based on expected cost plus margin.
valuation computation to contracts and other
Revenue on take-or-pay charges are recognised
relevant documents.
for the quantity that is the difference between
The Management, in conjunction with the Group’s annual agreed tonnage and actual quantity
external valuers, also compares the change in the of cargo handled. The amount recognised as
fair value of each asset and liability with relevant revenue is exclusive of goods and services tax
external sources to determine whether the where applicable.
change is reasonable.
Income in the nature of license fees / waterfront
For the purpose of fair value disclosures, the Group royalty and revenue share is recognised in
has determined classes of assets and liabilities on accordance terms and conditions of relevant
the basis of the nature, characteristics and risks service agreement with customers/ sub
of the asset or liability and the level of the fair concessionaire.
value hierarchy as explained above.
Income towards infrastructure premium is
This note summarises accounting policy for fair recognised as revenue in the year in which
value. Other fair value related disclosures are the Group provides access to its common
given in the relevant notes. infrastructure.
- Disclosures for valuation methods, significant Income from long term leases
estimates and assumptions (refer note 2.4 and As a part of its business activity, the Group leases/
33.2) sub-leases land on long term basis to its customers.
- Quantitative disclosures of fair value Leases are classified as finance lease whenever
measurement hierarchy (refer note 33.2) the terms of lease transfer substantially all the
- Investment in unquoted equity shares (refer risks and rewards of ownership to the lessee. All
note 4) other leases are classified as operating lease. In
some cases, the Company enters into cancellable
- Financial instruments (including those carried
lease / sub-lease transaction agreement, while in
at amortised cost) (refer note 33.1)
other cases, it enters into non-cancellable lease
e) Revenue recognition / sub-lease agreement. The Company recognizes
Revenue from contracts with customers is the income based on the principles of leases
recognised when control of the goods or services as set out in relevant accounting standard and
are transferred to the customer at an amount that accordingly in cases where the land lease / sub-
reflects the consideration to which the Group lease agreement are cancellable in nature, the
expects to be entitled in exchange for those income in the nature of upfront premium received
goods or services. / receivable is recognised on operating lease basis
i.e. on a straight line basis over the period of lease
The specific recognition criteria described below / sub-lease agreement / date of memorandum of
must also be met before revenue is recognised. understanding takes effect over lease period and
Port operation and logistics services annual lease rentals are recognised on an accrual
basis.
Revenue from port operation services including
cargo handling, storage, rail infrastructure, other In cases where long term land lease / sub-lease
ancillary port services and logistics services are transaction agreement are non-cancellable in
recognised in the accounting period in which the nature, the income is recognised on finance
services are transferred to the customer at an lease basis i.e. at the inception of lease / sub-
amount that reflects the consideration to which lease agreement / date of memorandum of
the Group expects to be entitled in exchange for understanding takes effect over lease period, the
those services. income recognised is equal to the present value of
the minimum lease payment over the lease period
In cases, where the contracts include multiple
(including non-refundable upfront premium)
contract obligations, the transaction price will
which is substantially equal to the fair value of
be allocated to each performance obligation
land leased / sub-leased. In respect of land given Revenue from service concession arrangements is
on finance lease basis, the corresponding cost recognised based on the fair value of construction
of the land and development costs incurred are work performed at the reporting date.
expensed off in the statement of profit and loss.
Once the infrastructure is in operation, the
Rental income treatment of income is as follows:
Rental income arising from operating leases Finance income over financial asset after
on investment properties is accounted for on consideration of fixed storage charges is
a straight-line basis over the lease terms and is recognised using effective interest rate method.
included in revenue in the statement of profit and Variable storage charges revenue is recognised
loss due to its operating nature. in the period of storage of food grains. Revenues
from other variable charges such as loading and
Development of Infrastructure Assets
unloading charges, bagging charges, stacking
The Company ‘s business operations includes charges, etc. as per the rates mentioned in SCA
construction and development of infrastructure are recognised in each period as and when
assets. where the outcome of the project cannot services are rendered in accordance with “Ind AS
be estimated reasonably, Revenue from contracts 115 - Revenue from Contracts with Customers”.
for such construction and development activities
is recognised on completion of relevant activities Interest income
under the contract and the transfer of control of For all financial assets measured either at
the infrastructure when all significant risks and amortised cost or at fair value through other
rewards of ownership in the infrastructure assets comprehensive income, interest income is
are transferred to the customer. recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts the
Non scheduled aircraft services
estimated future cash payments or receipts over
Revenue from chartered services is recognised the expected life of the financial instrument or
when the service is performed under contractual a shorter period, where appropriate, to the gross
obligations. carrying amount of the financial asset or to
Utilities Services the amortised cost of a financial liability. When
calculating the effective interest rate, the Group
Revenue is recognised as and when the service
estimates the expected cash flows by considering
performed under contractual obligations and
all the contractual terms of the financial
the right to receive such income is established.
instrument (for example, prepayment, extension,
Delayed payment charges are accounted as and
call and similar options) but does not consider
when received.
the expected credit losses. Interest income is
Income from SEIS included in finance income in the consolidated
Income from Services Exports from India Scheme statement of profit and loss.
(‘SEIS’) incentives under Government’s Foreign Dividends
Trade Policy 2015-20 on the port services income
Dividend Income is recognised when the Group’s
is recognised based on effective rate of incentive
right to receive the payment is established, which
under the scheme, provided no significant
is generally when shareholders approve the
uncertainty exists for the measurability,
dividend.
realisation and utilisation of the credit under the
scheme. The receivables related to SEIS licenses f) Government grants
are classified as “Other Non Financial Assets”. Government grants are recognised where there
Revenue recognition from Service Concession is reasonable assurance that the grant will be
arrangements in Agri Logistics Business received and all attached conditions will be
complied with. When the grant relates to an
Service Concession arrangements revenue
expense item, it is recognised as income on a
relating to construction contracts which are
systematic basis over the periods that the related
entered into with Government Authorities for
costs, for which it is intended to compensate, are
the construction of infrastructure necessary for
expensed. When the grant relates to an asset, it is
the provision of services are measured at the fair
recognised either as a income in equal amounts
value of the consideration received or receivables.
over the expected useful life of the related asset - In respect of taxable temporary differences
or by deducting from the carrying amount of the associated with investments in subsidiaries,
asset. associates and interests in joint venture
Royalty on Cargo entities, when the timing of the reversal of the
temporary differences can be controlled and it
Waterfront royalty under the various concession/ is probable that the temporary differences will
sub concession agreement is paid at concessional not reverse in the foreseeable future.
rate in terms of rate prescribed by Gujarat
Maritime Board (GMB) and notified in official Deferred tax assets are recognised for all
gazette of various state Government authorities, deductible temporary differences, the carry
wherever applicable. forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to
g) Taxes the extent that it is probable that taxable profit
Tax expense comprises of current income tax and will be available against which the deductible
deferred tax. temporary differences, and the carry forward of
Current income tax unused tax credits and unused tax losses can be
utilised, except:
Current income tax assets and liabilities are
measured at the amount expected to be recovered - When the deferred tax asset relating to the
from or paid to the taxation authorities. Current deductible temporary difference arises from
income tax (including Minimum Alternate Tax the initial recognition of an asset or liability in a
(“MAT”)) is measured at the amount expected to transaction that is not a business combination
be paid to the tax authorities in accordance with and, at the time of the transaction, affects
the Income-Tax Act, 1961 enacted in India. The tax neither the accounting profit nor taxable profit
rates and tax laws used to compute the amount or loss.
are those that are enacted or substantially - In respect of deductible temporary differences
enacted, at the reporting date. associated with investments in subsidiaries,
Current income tax relating to items recognised associates and interests in joint venture
outside the statement of profit and loss is entities, deferred tax assets are recognised
recognised outside the statement of profit and only to the extent that it is probable that
loss (either in other comprehensive income or the temporary differences will reverse in the
in equity). Current tax items are recognised in foreseeable future and taxable profit will
correlation to the underlying transaction either in be available against which the temporary
OCI or directly in equity. Management periodically differences can be utilised.
evaluates positions taken in the tax returns with
The Company is eligible and claiming tax
respect to situations in which applicable tax
deductions available under section 80IAB of the
regulations are subject to interpretation and
Income Tax Act, 1961 for a period of 10 years w.e.f
establishes provisions where appropriate.
FY 2007-08 to FY 2016-17. Some of the subsidiaries
Deferred tax and joint venture entities are also eligible for tax
Deferred tax is provided using the balance-sheet deductions available under section 80IA of the
approach on temporary differences between Income Tax Act, 1961 for a period of 10 years out
the tax bases of assets and liabilities and their of eligible period of 15 years. In view of some of
carrying amounts for financial reporting purposes the subsidiaries and joint venture entities availing
at the reporting date. tax deduction under Section 80IA of the Income
Tax Act, 1961, deferred tax has been recognised
Deferred tax liabilities are recognised for all
in respect of temporary difference, which reverse
taxable temporary differences, except:-
after the tax holiday period in the year in which the
- When the deferred tax liability arises from temporary difference originate and no deferred
the initial recognition of goodwill or an tax (assets or liabilities) is recognised in respect
asset or liability in a transaction that is not a of temporary difference which reverse during
business combination and, at the time of the tax holiday period, to the extent such gross total
transaction, affects neither the accounting income is subject to the deduction during the tax
profit nor taxable profit or loss. holiday period. For recognition of deferred tax,
the temporary difference which originate first are Property, plant and equipment and Capital work-
considered to reverse first. in-progress are stated at cost. Such cost includes
the cost of replacing parts of the plant and
The carrying amount of deferred tax assets is
equipment and borrowing costs for long-term
reviewed at each reporting date and reduced
construction projects if the recognition criteria
to the extent that it is no longer probable that
are met. When significant parts of plant and
sufficient future taxable profit will be available
equipment are required to be replaced at intervals,
to allow all or part of the deferred tax asset to
the Group depreciates them separately based on
be utilized. Unrecognised deferred tax assets
their specific useful lives. Likewise, when a major
are re-assessed at each reporting date and are
inspection is performed, its cost is recognised in
recognised to the extent that it has become
the carrying amount of the plant and equipment
probable that future taxable profits will allow the
as a replacement if the recognition criteria are
deferred tax asset to be recovered.
satisfied. All other repair and maintenance costs
Deferred tax assets and liabilities are measured are recognised in consolidated statement of
at the tax rates that are expected to apply in the profit and loss as incurred. The present value of
year when the asset is realized or the liability is the expected cost for the decommissioning of
settled, based on tax rates (and tax laws) that the asset after its use is included in the cost of
have been enacted or substantively enacted at respective asset if recognition criteria for the
the reporting date. provision are met.
Deferred tax relating to items recognised outside The Group adjusts exchange differences arising
profit or loss is recognised outside profit or loss on translation difference/settlement of long term
(either in other comprehensive income or in foreign currency monetary items outstanding
equity). Deferred tax items are recognised in in the Indian GAAP financial statements for the
correlation to the underlying transaction either in period ending immediately before the beginning
OCI or directly in equity. of the first Ind AS financial statements i.e. March
31, 2016 and pertaining to the acquisition of
The Group recognizes tax credits in the nature of a depreciable asset to the cost of asset and
Minimum Alternative Tax (“MAT”) credit as an asset depreciates the same over the remaining useful
only to the extent that there is sufficient taxable life of the asset. The depreciation on such foreign
temporary difference/convincing evidence that exchange difference is recognised from first day
the Group will pay normal income tax during the of the financial year.
specified period, i.e., the period for which tax
credit is allowed to be carried forward. In the year Borrowing cost relating to acquisition /
in which the Group recognises tax credits as an construction of Property, Plant and Equipments
asset, the said asset is created by way of tax credit which take substantial period of time to get
to the consolidated statement of profit and loss. ready for its intended use are also included to the
The Group reviews such tax credit asset at each extent they relate to the period till such assets
reporting date and writes down the asset to the are ready to be put to use.
extent the Group does not have sufficient taxable
Depreciation is calculated on a straight-line
temporary difference/convincing evidence that
basis over the estimated useful lives of the
it will pay normal tax during the specified period.
assets as prescribed under Part C of Schedule
Deferred tax includes MAT tax credit.
II of the Companies Act, 2013 except for the
h) Property, plant and equipment (PPE) assets mentioned below for which useful lives
Property, plant and equipment are stated at estimated by the management. The identified
cost net of accumulated depreciation and component of fixed assets are depreciated over
accumulated impairment losses, if any. The cost their useful lives and the remaining components
comprises the purchase price, borrowing costs are depreciated over the life of the principal
(if capitalisation criteria are met) and other assets. The management believes that these
cost directly attributable to bringing the asset estimated useful lives are realistic and reflect
to its working condition for the intended use. fair approximation of the period over which the
The Group has elected to regard previous GAAP assets are likely to be used.
carrying values of property, plant and equipment The Group has estimated the following useful life
as deemed cost at the date of transition to Ind AS to provide depreciation on its certain Property,
i.e April 01, 2015. Plant and Equipment based on assessment made
by expert and management estimate.
An item of property, plant and equipment covered amount of the asset) is included in the statement
under Concession agreement, sub-concession of profit and loss when the asset is derecognised.
agreement and supplementary concession
The residual values, useful lives and methods of
agreement, shall be transferred to and shall vest
depreciation of property, plant and equipment are
in Grantor (government authorities) at the end of
reviewed at each financial year end and adjusted
respective concession agreement. In cases, where
prospectively.
the Group is expected to receive consideration
of residual value of property from grantor at the i) Intangible assets
end of concession period, the residual value of Intangible assets acquired separately are measured
contracted property is considered as the carrying on initial recognition at cost. The cost of intangible
value at the end of concession period based on assets acquired in a business combination is their
depreciation rates as per management estimate/ fair value on the date of acquisition. Following
Schedule II of the Companies Act, 2013 and in initial recognition, intangible assets are carried
other cases it is Nil. For the ports operating in at cost less any accumulated amortisation
Gujarat, all contracted immovable and movable and accumulated impairment losses. Internally
assets shall be transferred to and shall vest in generated intangibles, excluding capitalised
Gujarat Maritime Board (‘GMB’) for consideration development costs, are not capitalised and the
equivalent to the Depreciated Replacement Value related expenditure is reflected in profit or loss in
(the ‘DRV’). Currently DRV is not determinable, the period in which the expenditure is incurred.
accordingly, residual value of contract asset is
considered to be the carrying value based on The useful lives of intangible assets are assessed
depreciation rates as per management estimate/ as either finite or indefinite.
Schedule II of the Companies Act, 2013 at the end Intangible assets with finite lives are amortised
of concession period. over the useful economic life and assessed for
An item of property, plant and equipment impairment whenever there is an indication
and any significant part initially recognised is that the intangible asset may be impaired. The
derecognised upon disposal or when no future amortisation period and the amortisation method
economic benefits are expected from its use or for an intangible asset with a finite useful life are
disposal. Any gain or loss arising on derecognition reviewed at least at the end of each reporting
of the asset (calculated as the difference between period. Changes in the expected useful life or
the net disposal proceeds and the carrying the expected pattern of consumption of future
economic benefits embodied in the asset are level. The assessment of indefinite life is reviewed
considered to modify the amortisation period annually to determine whether the indefinite life
or method, as appropriate, and are treated continues to be supportable. If not, the change
as changes in accounting estimates. The in useful life from indefinite to finite is made on a
amortisation expense on intangible assets with prospective basis.
finite lives is recognised in the statement of profit
Gains or losses arising from derecognition of an
and loss unless such expenditure forms part of
intangible asset are measured as the difference
carrying value of another asset.
between the net disposal proceeds and the
Intangible assets with indefinite useful lives are not carrying amount of the asset and are recognised
amortised, but are tested for impairment annually, in the consolidated statement of profit and loss
either individually or at the cash-generating unit when the asset is derecognised.
A summary of the policies applied to the Group’s intangible assets is, as follows:
Intangible Assets Method of Amortisation Estimated Useful life
Software applications on straight line basis 5 Years based on management
estimate
License Fees paid to Ministry of Railway on straight line basis Over the license period of 20 years
(MOR) for approval for movement of
Container Trains
Right to Use of Land on straight line basis Over the period of agreement
between 10-20 years
Right of use to develop and operate the on straight line basis Over the balance period of Sub-
port facilities including rights arising from Concession Agreement
service concession arrangement
Railway License on straight line basis 20 to 35 Years based on validity of
license
Non-Compete Agreement on straight line basis As per relevant Agreement
Port concession rights arising from Service Port concession rights also include certain
Concession/Sub-Concession Arrangements: property, plant and equipment which are
The Group recognises port concession rights as reclassified as intangible assets in accordance
“Port Infrastructure Rights” under “Intangible with Appendix C of Ind AS 115 ‘Service Concession
Assets” arising from a service concession Arrangements’. These assets are amortised based
arrangement, in which the grantor controls or on the lower of their useful lives or concession
regulates the services provided and the prices period.
charged, and also controls any significant residual Gains or losses arising from de-recognition of port
interest in the infrastructure such as property, concession rights are measured as the difference
plant and equipment, if the infrastructure is between the net disposal proceeds and the
existing infrastructure of the grantor or the carrying amount of the asset and are recognised
infrastructure is constructed or purchased by in the consolidated statement of profit or loss
the Group as part of the service concession when the asset is de-recognised.
arrangement. Such an intangible asset is
recognised by the Group at cost (which is the fair The period of port concession arrangements are
value of the consideration received or receivable of 30 years.
for the construction service delivered) and is Service Concession Arrangements (“SCA”) in
capitalised when the project is complete in all respect of Agri Logistics Business
respects and the Group receives the completion
Certain companies in the Group have entered
certificate from the authorities as specified in the
into service concession agreement with Food
concession agreement.
Corporation of India (FCI) which is an arrangement
between the “grantor” (a public sector entity/ Interest income earned on the temporary
authority) and the “operator” (a private sector investment of specific borrowings pending their
entity) to provide services that give the public expenditure on qualifying assets is deducted from
access to major economic and social facilities the borrowing costs eligible for capitalisation.
utilising private-sector funds and expertise.
k) Leases
With respect to SCA, revenue and costs are The Group assesses at contract inception
allocated between those relating to construction whether a contract is, or contains, a lease. That
services and those relating to operation and is, if the contract conveys the right to control the
maintenance services, and are accounted for use of an identified asset for a period of time in
separately. Consideration received or receivable exchange for consideration.
is allocated by reference to the relative fair value
of services delivered when the amounts are Group as a lessee
separately identifiable. The infrastructure used in The Group applies a single recognition and
a concession are classified as an intangible asset measurement approach for all leases, except
or a financial asset, depending on the nature of for short-term leases and leases of low-value
the payment entitlements established in the SCA. assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets
When the amount of consideration under the
representing the right to use the underlying
arrangement for the provision of public services
assets.
is substantially fixed by a contract, the Group
recognises the consideration for construction i) Right-of-use assets
services at its fair value as a financial asset and The Group recognises right-of-use assets
is classified as “financial asset under service (“RoU Assets”) at the commencement date
concession arrangements”. of the lease (i.e., the date the underlying
When the amount of consideration under the asset is available for use). Right-of-use assets
arrangement comprises of are measured at cost, less any accumulated
- fixed charges based on Annual Guaranteed depreciation and impairment losses, and
Tonnage and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets
- variable charges based on Actual Utilisation
includes the amount of lease liabilities
Tonnage,
recognised, initial direct costs incurred,
then, the Group recognizes the consideration and lease payments made at or before
for construction services at its fair value, as the commencement date less any lease
the ”financial asset under service concession incentives received. Right-of-use assets are
arrangement” to the extent present value of depreciated on a straight-line basis over the
fixed payment to be received discounted at shorter of the lease term and the estimated
incremental borrowing rate and the residual useful lives of the assets
portion is recognised as an intangible asset.
If ownership of the leased asset is transferred
j) Borrowing costs to the Group at the end of the lease term or
Borrowing costs directly attributable to the the cost reflects the exercise of a purchase
acquisition, construction or production of an option, depreciation is calculated using the
asset that necessarily takes a substantial period estimated useful life of the asset. The right-
of time to get ready for its intended use or sale of-use assets are also subject to impairment.
are capitalised as part of the cost of the asset. Refer to the accounting policies in section
All other borrowing costs are expensed in the (m) Impairment of non-financial assets.
period in which they occur. Borrowing costs
ii) Lease Liabilities
consist of interest and other costs that an entity
incurs in connection with the borrowing of At the commencement date of the lease,
funds. Borrowing cost also includes exchange the Group recognises lease liabilities
differences to the extent regarded as an measured at the present value of lease
adjustment to the borrowing costs. payments to be made over the lease term.
The lease payments include fixed payments
(including in substance fixed payments) leases. Rental income from operating lease is
less any lease incentives receivable, variable recognised on a straight-line basis over the term
lease payments that depend on an index of the relevant lease. Initial direct costs incurred
or a rate, and amounts expected to be paid in negotiating and arranging an operating lease
under residual value guarantees. The lease are added to the carrying amount of the leased
payments also include the exercise price asset and recognised over the lease term on the
of a purchase option reasonably certain to same basis as rental income. Contingent rents are
be exercised by the Group and payments recognised as revenue in the period in which they
of penalties for terminating the lease, if the are earned.
lease term reflects the Group exercising the
Leases are classified as finance leases when
option to terminate. Variable lease payments
substantially all of the risks and rewards of
that do not depend on an index or a rate
ownership transfer from the Group to the lessee.
are recognised as expenses (unless they are
Amounts due from lessees under finance leases
incurred to produce inventories) in the period
are recorded as receivables at the Group’s net
in which the event or condition that triggers
investment in the leases. Finance lease income is
the payment occurs.
allocated to accounting periods so as to reflect
In calculating the present value of lease a constant periodic rate of return on the net
payments, the Group uses its incremental investment outstanding in respect of the lease.
borrowing rate at the lease commencement
l) Inventories
date incase the interest rate implicit in the
lease is not readily determinable. After the Inventories are valued at lower of cost and net
commencement date, the amount of lease realisable value.
liabilities is increased to reflect the accretion Stores and Spares: Valued at lower of cost and net
of interest and reduced for the lease payments realizable value. Cost is determined on a moving
made. In addition, the carrying amount of weighted average basis. Cost of stores and spares
lease liabilities is remeasured if there is a lying in bonded warehouse includes custom duty
modification, a change in the lease term, a payable.
change in the lease payments (e.g., changes
to future payments resulting from a change in Stores and Spares which do not meet the
an index or rate used to determine such lease definition of property, plant and equipment are
payments) or a change in the assessment of accounted as inventories.
an option to purchase the underlying asset. Costs incurred that relate to future contract
Lease liabilities has been presented under the activities are recognised as ”Project Work-in-
head “Other Financial Liabilities”. Progress”.
iii) Short-term leases and leases of low-value Project work-in-progress comprise specific
assets contract costs and other directly attributable
The Group applies the short-term lease overheads including borrowing costs which can
recognition exemption to its short-term be allocated on specific contract cost is, valued at
leases (i.e., those leases that have a lease term lower of cost and net realisable value.
of 12 months or less from the commencement
Net Realizable Value in respect of stores and
date and do not contain a purchase option).
spares is the estimated current procurement
It also applies the lease of low-value assets
price in the ordinary course of the business.
recognition exemption that are considered
to be low value. Lease payments on short- m) Impairment of non-financial assets
term leases and leases of low-value assets The Group assesses, at each reporting date,
are recognised as expense on a straight-line whether there is an indication that an asset may
basis over the lease term. be impaired. If any indication exists, or when
Group as a lessor annual impairment testing for an asset is required,
the Group estimates the asset’s recoverable
Leases in which the Group does not transfer
amount. An asset’s recoverable amount is the
substantially all the risks and rewards of
higher of an asset’s or cash-generating unit’s
ownership of an asset are classified as operating
(CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined Goodwill is tested for impairment annually as at
for an individual asset, unless the asset does every year end and when circumstances indicate
not generate cash inflows that are largely that the carrying value may be impaired.
independent of those from other assets or group
Impairment is determined for goodwill by
of assets. When the carrying amount of an asset
assessing the recoverable amount of CGU (or
or CGU exceeds its recoverable amount, the asset
group of CGUs) to which the goodwill relates.
is considered impaired and is written down to its
When the recoverable amount of the CGU is
recoverable amount.
less than its carrying amount, an impairment
In assessing value in use, the estimated future loss is recognised. Impairment losses relating to
cash flows are discounted to their present value goodwill cannot be reversed in future periods.
using a pre-tax discount rate that reflects current
Intangible assets with indefinite useful lives
market assessments of the time value of money
are tested for impairment annually as at year
and the risks specific to the asset. In determining
end at the CGU level, as appropriate, and when
fair value less costs of disposal, recent market
circumstances indicate that the carrying value
transactions are taken into account. If no such
may be impaired.
transactions can be identified, an appropriate
valuation model is used. These calculations are n) Provisions, Contingent Liabilities and Contingent
corroborated by valuation multiples, quoted share Assets
prices for publicly traded companies or other General
available fair value indicators.
Provisions are recognised when the Group has
The Group bases its impairment calculation on a present obligation (legal or constructive) as
detailed budgets and forecast calculations, which a result of a past event, it is probable that an
are prepared separately for each of the Group’s outflow of resources embodying economic
CGUs to which the individual assets are allocated. benefits will be required to settle the obligation
These budgets and forecast calculations generally and a reliable estimate can be made of the
cover a period of five years. For longer periods, a amount of the obligation. The expense relating to
long-term growth rate is calculated and applied a provision is presented in the statement of profit
to project future cash flows after the fifth year. and loss. Contingent liabilities are not recognised
but disclosed unless the probability of an outflow
Impairment losses including impairment on
of resources is remote. Contingent assets are
inventories, are recognised in the statement of
disclosed where inflow of economic benefits is
profit and loss.
probable.
For assets excluding goodwill, an assessment
If the effect of the time value of money is material,
is made at each reporting date to determine
provisions are discounted using a current pre-tax
whether there is an indication that previously
rate that reflects, when appropriate, the risks
recognised impairment losses no longer exist
specific to the liability. When discounting is used,
or have decreased. If such indication exists, the
the increase in the provision due to the passage
Group estimates the asset’s or CGU’s recoverable
of time is recognised as a finance cost.
amount. A previously recognised impairment
loss is reversed only if there has been a change Operational Claim provisions
in the assumptions used to determine the asset’s Provisions for operational claims are recognised
recoverable amount since the last impairment when the service is provided to the customer.
loss was recognised. The reversal is limited so that Further recognition is based on historical
the carrying amount of the asset does not exceed experience. The initial estimate of operational
its recoverable amount, nor exceed the carrying claim related cost is revised annually.
amount that would have been determined, net
of depreciation, had no impairment loss been o) Retirement and other employee benefits
recognised for the asset in prior years. Such Retirement benefit in the form of provident fund
reversal is recognised in the statement of profit is a defined contribution scheme. The Group
and loss unless the asset is carried at a revalued has no obligation, other than the contribution
amount, in which case, the reversal is treated as a payable to the provident fund. The Group
revaluation increase. recognizes contribution payable to the provident
Debt instrument at FVTPL and rewards of the asset, or (b) the Group has
FVTPL is a residual category for debt instruments. neither transferred nor retained substantially
Any debt instrument, which does not meet the all the risks and rewards of the asset, but has
criteria for categorization as amortized cost or as transferred control of the asset.
FVTOCI, is classified as FVTPL. When the Group has transferred its rights to
receive cash flows from an asset or has entered
Debt instruments included within the FVTPL
into a pass-through arrangement, it evaluates
category are measured at fair value with all
if and to what extent it has retained the risks
changes recognised in the profit and loss.
and rewards of ownership. When it has neither
Equity investments transferred nor retained substantially all of the
All equity investments in scope of Ind AS 109 risks and rewards of the asset, nor transferred
are measured at fair value. For all other equity control of the asset, the Group continues to
instruments, the Group may make an irrevocable recognise the transferred asset to the extent of
election to present in other comprehensive the Group’s continuing involvement. In that case,
income subsequent changes in the fair value. The the Group also recognises an associated liability.
Group makes such election on an instrument-by- The transferred asset and the associated liability
instrument basis. The classification is made on are measured on a basis that reflects the rights
initial recognition and is irrevocable. and obligations that the Group has retained.
If the Group decides to classify an equity Continuing involvement that takes the form of a
instrument as FVTOCI, then all fair value changes guarantee over the transferred asset is measured
on the instrument, excluding dividends, are at the lower of the original carrying amount of the
recognised in the OCI. There is no recycling of the asset and the maximum amount of consideration
amounts from OCI to profit and loss, even on sale that the Group could be required to repay.
of investment. However, the Group may transfer Impairment of financial assets
the cumulative gain or loss within equity.
The Group applies expected credit loss (ECL)
Equity instruments included within the FVTPL model for measurement and recognition of
category are measured at fair value with all impairment loss on the following financial assets
changes recognised in the profit and loss. and credit risk exposure :
Perpetual debt a) Financial assets that are debt instruments,
The Company invests in a subordinated perpetual and are measured at amortised cost e.g. loans,
debt, redeemable at the issuer’s option, with a debt securities, deposits, trade receivables
fixed coupon that can be deferred indefinitely if and bank balances
the issuer does not pay a dividend on its equity b) Financial assets that are debt instruments,
shares. The Company classifies these instruments are measured at fair value through other
as equity under Ind AS 32. comprehensive income (FVTOCI)
Derecognition c) Lease receivables under relevant accounting
A financial asset (or, where applicable, a part standard
of a financial asset or part of a group of similar
d) Trade receivables or any contractual right to
financial assets) is primarily derecognised (i.e.
receive cash or another financial asset that
removed from the Group’s consolidated balance
result from transactions that are within the
sheet) when:
scope of Ind AS 115
- The rights to receive cash flows from the asset
The Group follows ‘simplified approach’ for
have expired, or
recognition of impairment loss allowance on:
- The Group has transferred its rights to receive
cash flows from the asset or has assumed an • Trade receivables or contract revenue
obligation to pay the received cash flows in full receivables; and
without material delay to a third party under a • All lease receivables resulting from transactions
‘pass-through’ arrangement; and either (a) the within the scope of relevant accounting
Group has transferred substantially all the risks standard
Under the simplified approach the Group does not The Group’s financial liabilities include trade and
track changes in credit risk. Rather, it recognises other payables, loans and borrowings including
impairment loss allowance based on lifetime bank overdrafts, financial guarantee contracts
ECLs at each reporting date, right from its initial and derivative financial instruments.
recognition.
Subsequent measurement
For recognition of impairment loss on other The measurement of financial liabilities depends
financial assets and risk exposure, the group on their classification, as described below:
determines that whether there has been a
significant increase in the credit risk since initial Financial liabilities at fair value through profit or
recognition. If credit risk has not increased loss
significantly, 12 month ECL is used to provide Financial liabilities at fair value through profit or
for impairment loss. However, if credit risk has loss include financial liabilities held for trading
increased significantly, lifetime ECL is used. and financial liabilities designated upon initial
recognition at fair value through profit or loss.
ECL is the difference between all contracted cash
Financial liabilities are classified as held for
flows that are due to the Group in accordance with
trading if they are incurred for the purpose of
the contract and all the cash flows that the Group
repurchasing in the near term. This category also
expects to receive, discounted at the original
includes derivative financial instruments entered
EIR. ECL impairment loss allowance (or reversal)
into by the Group that are not designated as
recognised during the period is recognised as
hedging instruments in hedge relationships as
income / (expense) in the statement of profit and
defined by Ind AS 109.
loss (P&L).
Gains or losses on liabilities held for trading are
The balance sheet presentation for various
recognised in the consolidated statement of
financial instruments is described below:
profit and loss.
Financial assets measured at amortised cost,
Financial liabilities designated upon initial
contractual revenue receivables and lease
recognition at fair value through profit or loss
receivables:
are designated as such at the initial date of
ECL is presented as an allowance, i.e., as an recognition, and only if the criteria in Ind AS 109
integral part of the measurement of those assets are satisfied. For liabilities designated as FVTPL,
in the balance sheet. The allowance reduces the fair value gains/ losses attributable to changes
net carrying amount. Until the asset meets write- in own credit risk are recognised in OCI. These
off criteria, the group does not reduce impairment gains/ loss are not subsequently transferred to
allowance from the gross carrying amount.” profit or loss. However, the Group may transfer
the cumulative gain or loss within equity. All
For assessing increase in credit risk and
other changes in fair value of such liability are
impairment loss, the Group combines financial
recognised in the statement of profit and loss.
instruments on the basis of shared credit risk
The Group has not designated any financial
characteristics with the objective of facilitating
liability as FVTPL.
an analysis that is designed to enable significant
increases in credit risk to be identified on a timely Loans and borrowings
basis. This is the category most relevant to the Group.
Financial liabilities After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
Initial recognition and measurement
amortised cost using the EIR method. Gains
Financial liabilities are classified, at initial and losses are recognised in the consolidated
recognition, as financial liabilities at fair value statement of profit and loss when the liabilities
through profit or loss, loans and borrowings, are derecognised as well as through the EIR
payables, or as derivatives, as appropriate. amortisation process.
All financial liabilities are recognised initially at Amortised cost is calculated by taking into
fair value and, in the case of loans and borrowings account any discount or premium on acquisition
and payables, net of directly attributable and fees or costs that are an integral part of the
transaction costs.
EIR. The EIR amortisation is included as finance reclassification date which is the first day of the
costs in the consolidated statement of profit and immediately next reporting period following the
loss. change in business model. The Group does not
This category generally applies to borrowings. restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
Financial guarantee contracts
Financial guarantee contracts issued by the Offsetting of financial instruments
Group are those contracts that require a payment Financial assets and financial liabilities are offset
to be made to reimburse the holder for a loss it and the net amount is reported in the balance
incurs because the specified debtor fails to make sheet if there is a currently enforceable legal right
a payment when due in accordance with the to offset the recognised amounts and there is an
terms of a debt instrument. Financial guarantee intention to settle on a net basis, to realise the
contracts are recognised initially as a liability at assets and settle the liabilities simultaneously.
fair value through profit or loss (FVTPL), adjusted
q) Derivative financial instruments
for transaction costs that are directly attributable
to the issuance of the guarantee. Subsequently, Initial recognition and subsequent measurement
the liability is measured at the higher of the The Group uses derivative financial instruments,
amount of loss allowance determined as per such as forward currency contracts, cross currency
impairment requirements of Ind AS 109 and the swaps, options, interest rate futures and interest
amount recognised less cumulative amortisation. rate swaps to hedge its foreign currency risks and
interest rate risks, respectively. Such derivative
Derecognition
financial instruments are initially recognised at
A financial liability is derecognised when the fair value through profit or loss (FVTPL) on the
obligation under the liability is discharged or date on which a derivative contract is entered
cancelled or expires. When an existing financial into and are subsequently re-measured at fair
liability is replaced by another from the same value. Derivatives are carried as financial assets
lender on substantially different terms, or the when the fair value is positive and as financial
terms of an existing liability are substantially liabilities when the fair value is negative.
modified, such an exchange or modification
is treated as the derecognition of the original Any gains or losses arising from changes in the
liability and the recognition of a new liability. The fair value of derivative financial instrument are
difference in the respective carrying amounts is classified in the statement of profit and loss and
recognised in the statement of profit and loss. reported with foreign exchange gains/(losses) not
within results from operating activities except
Reclassification of financial assets the effective portion of cash flow hedge. Changes
The Group determines classification of financial in fair value and gains/(losses) on settlement/
assets and liabilities on initial recognition. After remeasurement of foreign currency derivative
initial recognition, no reclassification is made for financial instruments relating to borrowings,
financial assets which are equity instruments and which have not been designated as hedge are
financial liabilities. For financial assets which are recorded as finance cost.
debt instruments, a reclassification is made only
r) Redeemable preference shares
if there is a change in the business model for
managing those assets. Changes to the business Redeemable preference shares, being compound
model are expected to be infrequent. The Group’s financial instrument, are separated into liability
senior management determines change in the and equity components based on the terms of
business model as a result of external or internal the contract.
changes which are significant to the Group’s On issuance of the redeemable preference
operations. Such changes are evident to external shares, the fair value of the liability component is
parties. A change in the business model occurs determined using a market rate for an equivalent
when the Group either begins or ceases to perform non-convertible instrument. This amount is
an activity that is significant to its operations. If classified as a financial liability measured at
the Group reclassifies financial assets, it applies amortised cost (net of transaction costs) until it
the reclassification prospectively from the is extinguished on redemption.
Transaction costs are apportioned between the Goodwill on consolidation is allocated to cash
liability and equity components of the redeemable generating units or group of cash generating units
preference shares based on the allocation of that are expected to benefit from the synergies of
proceeds to the liability and equity components the acquisition.
when the instruments are initially recognised.
v) Business Combination
s) Cash and cash equivalents Business Combination have been accounted for
Cash and cash equivalents in the balance using the acquisition method under the provisions
sheet comprise cash at banks and on hand and of Ind AS 103, Business Combinations. The cost
short-term deposits with an original maturity of of an acquisition is measured at the fair value
three months or less, which are subject to an of the assets transferred, equity instruments
insignificant risk of changes in value. issued and liabilities incurred or assumed at the
date of acquisition, which is the date on which
For the purpose of the consolidated statement of
control is transferred to the Group. The cost
cash flows, cash and cash equivalents consist of
of acquisition also includes fair value of any
cash and short-term deposits, as defined above,
contingent considerations. Identifiable assets
net of outstanding bank overdrafts as they are
acquired and liabilities and contingent liabilities
considered an integral part of the Group’s cash
assumed in a business combination are measured
management.
initially at the fair value on the date of acquisition.
t) Cash dividend to equity holders of the parent Business Combinations between entities under
The Company recognises a liability to make common control is accounted for at carrying value.
cash to equity holders of the parent when the Transaction costs that the Group incurs in
distribution is authorised and the distribution is connection with a business combination are
no longer at the discretion of the Company. As expensed as incurred.
per the corporate laws in India, a distribution is If the initial accounting for a business combination
authorised when it is approved by the shareholders. is incomplete by the end of reporting period in
A corresponding amount is recognised directly in which the combination occurs, the Group reports
equity. provisional amounts for the items for which the
u) Goodwill on consolidation accounting is incomplete. Those provisional
amounts are adjusted during the measurement
Goodwill on consolidation as on the date of
period, or additional assets or liabilities are
transition represents the excess of cost of
recognised, to reflect new information obtained
acquisition at each point of time of making the
about facts and circumstances that existed at
investment in the subsidiary over the Group’s
the acquisition date that, if known, would have
share in the net worth of a subsidiary. For this
affected the amount recognised at that date.
purpose, the Group’s share of net worth is
determined on the basis of the latest financial Goodwill arising on an acquisition of a business
statements, prior to the acquisition, after making is carried at cost as established at the date of
necessary adjustments for material events acquisition of the business less accumulated
between the date of such financial statements impairment losses, if any.
and the date of respective acquisition. Goodwill
w) Non-current Assets held for sale
arising on consolidation is not amortised, however,
it is tested for impairment annually. In the event Non-current assets and disposal groups are
of cessation of operations of a subsidiary, the classified as held for sale if their carrying amount
unimpaired goodwill is written off fully. is intended to be recovered principally through a
sale (rather than through continuing use) when
Goodwill on consolidation arising on acquisitions the asset (or disposal group) is available for
on or after the date of transition represents the immediate sale in its present condition subject
excess of the cost of acquisition at each point of only to terms that are usual and customary for
time of making the investment in the subsidiary, sale of such asset (or disposal group) and the sale
over the Group’s share in the fair value of the net is highly probable and is expected to qualify for
assets of a subsidiary. recognition as a completed sale within one year
from the date of classification.
Non-current assets and disposal groups classified payments that extend beyond 30 June 2021);
as held for sale are measured at lower of their and
carrying amount and fair value less costs to sell.
(c) There is no substantive change to other terms
x) Earnings per Share and conditions of the lease.
“Basic earnings per share are calculated by dividing The adoption of the amendments has not had
the profit for the period attributable to equity any material impact on the disclosures or on the
shareholders by the weighted average number amounts reported in these financial statements.
of equity shares outstanding during the period.
For the purpose of calculating diluted earnings Amendments to Ind AS 103
per share, the profit for the period attributable Definition of a business
to equity shareholders and the weighted average The Group has adopted the amendments to Ind
number of shares outstanding during the period AS 103 for the first time in the current year. The
are adjusted for the effects of all dilutive potential amendments clarify that while businesses usually
equity shares.” have outputs, outputs are not required for an
y) Amended standards adopted by the Group integrated set of activities and assets to qualify
as a business. To be considered a business, an
In the current year, the Group has applied the
acquired set of activities and assets must include,
below amendments to Ind ASs that are effective
at a minimum, an input and a substantive process
for an annual period that begins on or after April
that together significantly contribute to the
01, 2020.
ability to create outputs.
Amendments to Ind AS 116 - Covid-19 Related
The amendments remove the assessment of
Rent Concessions
whether market participants are capable of
The Group has adopted the amendments to Ind replacing any missing inputs or processes and
AS 116 for the first time in the current year. The continuing to produce outputs. The amendments
amendments provide practical relief to lessees in also introduce additional guidance that helps to
accounting for rent concessions occurring as a determine whether a substantive process has
direct consequence of COVID-19, by introducing been acquired.
a practical expedient to Ind AS 116. The practical
expedient permits a lessee to elect not to assess The amendments introduce an optional
whether a COVID-19-related rent concession is concentration test that permits a simplified
a lease modification. A lessee that makes this assessment of whether an acquired set of
election shall account for any change in lease activities and assets is not a business. Under
payments resulting from the COVID-19-related the optional concentration test, the acquired
rent concession the same way it would account set of activities and assets is not a business
for the change applying Ind AS 116 if the change if substantially all of the fair value of the gross
were not a lease modification. assets acquired is concentrated in a single
identifiable asset or group of similar assets. The
The practical expedient applies only to rent amendments are applied prospectively to all
concessions occurring as a direct consequence business combinations and asset acquisitions for
of COVID-19 and only if all of the following which the acquisition date is on or after 1 April
conditions are met: 2020.
(a) The change in lease payments results in The adoption of the amendments has not had
revised consideration for the lease that is any material impact on the disclosures or on the
substantially the same as, or less than, the amounts reported in these financial statements.
consideration for the lease immediately
preceding the change; Amendments to Ind AS 1 and Ind AS 8 - Definition
of “material
(b) Any reduction in lease payments affects only
The Group has adopted the amendments to Ind
payments originally due on or before 30 June
AS 1 and Ind AS 8 for the first time in the current
2021 (a rent concession meets this condition
year. The amendments make the definition of
if it results in reduced lease payments on or
material in Ind AS 1 easier to understand and are
before 30 June 2021 and increased lease
not intended to alter the underlying concept of
materiality in Ind ASs. The concept of ‘obscuring’ (i) Consolidation of entities in which the Group
material information with immaterial information holds less than a majority of voting rights (de
has been included as part of the new definition. facto control):-
The threshold for materiality influencing users Group owns 49% ownership interest in Dholera
has been changed from ‘could influence’ to Infrastructure Private Limited (“DIPL”), Group
‘could reasonably be expected to influence’. has entered into an agreement with the other
The definition of material in Ind AS 8 has been shareholders of the DIPL basis which the
replaced by a reference to the definition of directors of the Company has assessed that it
material in Ind AS 1. In addition, the MCA amended has the practical ability to direct the relevant
other Standards that contain the definition of activities of DIPL unilaterally and therefore
‘material’ or refer to the term ‘material’ to ensure APSEZ has control over DIPL.
consistency. (ii) Investment in entities which are not
The adoption of the amendments has not had considered for consolidation
any material impact on the disclosures or on the The Group has investment of H40 crore
amounts reported in these financial statements. in Kutch Railway Company Limited (“KRCL”),
the investee, to the tune of the 20% of
Amendments to Ind AS 109 and 107 - Interest
the paid up capital of the said company.
Rate Benchmark Reform
However, the considering that majority of
These amendments modify specific hedge the remaining shares are held by government
accounting requirements to allow hedge companies / government authorities /
accounting to continue for affected hedges government agencies, and the day-to day-
during the period of uncertainty before the operations being managed by government
hedged items or hedging instruments affected officials, the Group does not consider that
by the current interest rate benchmarks are it has significant influence over KRCL.
amended as a result of the on-going interest rate Accordingly, the investment in the said entity
benchmark reforms. has not been accounted under Ind AS 28 and
The adoption of the amendments has not had accounted under Ind AS 109 with subsequent
any impact on the disclosures or on the amounts measurement of changes in fair value through
reported in these financial statements. other comprehensive income (FVTOCI).
2.4 Significant accounting judgments, (iii) As per Government notification no. 57/2015-
2020 dated March 31, 2020 the Group
estimates and assumptions
is entitled to Service Exports from India
The preparation of the Group’s consolidated Scheme (SEIS) benefits on Port Services till
financial statements requires management to year ended March 31, 2020 and accordingly
make judgements, estimates and assumptions Group has accounted the same on provisional
that affect the reported amounts of revenues, basis pending notification in receipt of the
expenses, assets and liabilities, and the eligible service and rate of rewards as at
accompanying disclosures, and the disclosure reporting date (Refer note 8 (c)).
of contingent liabilities. Uncertainty about
these assumptions and estimates could result (B) Estimates and assumptions
in outcomes that require a material adjustment The key assumptions concerning the future and
to the carrying amount of assets or liabilities other key sources of estimation uncertainty
affected in future periods. at the reporting date, that have a significant
risk of causing a material adjustment to the
(A) Judgements
carrying amounts of assets and liabilities within
In the process of applying the Group’s accounting the next financial year, are described below. The
policies, management has made the following Group based its assumptions and estimates on
judgements, which has the most significant parameters available when the consolidated
effect on the consolidated financial statements: financial statements were prepared. Existing
Future salary increases and gratuity increases under the condition / terms of the various
are based on expected future inflation rates concession agreements/sub-concession
for the respective countries. agreements with various Maritime Boards/
Government Port Trust Authorities.
Further details about gratuity obligations are
given in note 28. The present value of the expected cost
for the decommissioning of the asset
(v) Fair value measurement
after its use is included in the cost of
In measuring the fair value of certain respective asset if recognition criteria for
assets and liabilities for financial reporting the provision are met in case of agreement
purpose, the Group uses market observable with Food Corporation of India.
data to the extent available. Where such
Level 1 inputs are not available, the Group (vii) Depreciation / amortisation and useful
engages third party qualified valuers to lives of property, plant and equipment /
establish appropriate valuation techniques intangible assets
and inputs to the model. The inputs to Property, plant and equipment / intangible
these models are taken from observable assets are depreciated / amortised over
markets where possible, but where this their estimated useful lives, after taking
is not feasible, a degree of judgement into account estimated residual value.
is required in establishing fair values. Management reviews the estimated
Judgements include considerations of useful lives and residual values of the
inputs such as liquidity risk, credit risk and assets annually in order to determine the
volatility. Changes in assumptions about amount of depreciation / amortisation to
these factors could affect the reported fair be recorded during any reporting period.
value of financial instruments. Refer note The useful lives and residual values are
33 for further disclosures.” based on the Group’s historical experience
with similar assets and take into account
(vi) Provision for Decommissioning Liabilities
anticipated technological changes. The
The management of the Group has depreciation / amortisation for future
estimated that there is no contractual periods is revised if there are significant
and probable decommissioning liability changes from previous estimates.
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(a) Property, Plant and Equipment
H In crore
Particulars Property, Plant and Equipment
Free Leasehold Buildings, Computer Land Office Plant & Furniture Vehicles Dredged Marine Railway Tugs and Railway Aircraft Project Total
Hold land Roads Hardware Development Equipments Equipment & Fixture Channels Structures Tracks Boats Wagons Assets
Land and Civil cost
Infrastructure
Cost
As at April 1, 1,359.47 293.40 4,150.75 97.94 856.55 124.19 7,623.93 182.32 39.28 3,927.22 4,120.66 977.94 2,059.35 209.35 301.48 1,017.68 27,341.51
2019
Acquisitions 74.60 - 1.84 0.29 - 0.20 204.73 0.45 0.04 - - - - - - - 282.15
through
Business
Combination
Acquisitions 235.00 - - - - - - - - - - - - - - - 235.00
Reclassified - (293.40) - - - - - - - - - - - - - - (293.40)
on account of
adoption of Ind
AS 116
Additions 375.79 - 500.03 31.92 313.47 32.21 1,623.89 50.83 3.66 67.30 666.78 4.50 182.86 238.18 0.69 73.12 4,165.23
Deductions/ (0.51) - (5.82) (0.94) - (0.38) (16.44) (0.16) (1.07) - - - (42.13) - - (17.14) (84.59)
Adjustment
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill (contd.)
H In crore
Particulars Property, Plant and Equipment
Free Leasehold Buildings, Computer Land Office Plant & Furniture Vehicles Dredged Marine Railway Tugs and Railway Aircraft Project Total
Hold land Roads Hardware Development Equipments Equipment & Fixture Channels Structures Tracks Boats Wagons Assets
Land and Civil cost
Infrastructure
Depreciation - - 187.37 18.63 30.77 20.73 620.09 18.21 5.16 101.36 112.79 79.08 139.99 30.88 18.19 87.98 1,471.23
for the year
Deductions/ - - (1.09) (0.87) - (0.29) (7.08) (0.10) (0.88) - - - - - - (9.18) (19.49)
(Adjustment)
As at March - - 881.09 68.84 153.29 79.14 2,312.15 38.23 22.92 409.19 403.32 405.70 527.88 71.00 87.83 534.47 5,995.05
31, 2020
Depreciation - - 231.60 24.58 54.07 23.41 827.01 24.73 8.40 126.49 138.86 81.84 142.56 39.98 22.06 88.86 1,834.45
for the year
Deductions/ - - (4.52) (6.39) 13.35 (9.76) (38.19) (5.95) (5.23) - (0.42) - (0.02) (0.23) (95.03) (24.28) (176.67)
Adjustment
Exchange - - - - - 0.10 13.02 - - - - - - - - - 13.12
difference
As at March - - 1,108.17 87.03 220.71 92.89 3,113.99 57.01 26.09 535.68 541.76 487.54 670.42 110.75 14.86 599.05 7,665.95
31, 2021
Net Block
As at March 31, 2,044.35 - 3,779.27 60.37 1,016.73 77.08 7,154.11 195.21 18.99 3,591.16 4,406.24 580.06 1,672.20 376.53 219.84 552.78 25,744.92
2020
As at March 4,811.69 - 6,975.52 68.47 1,039.97 81.29 9,343.29 225.94 27.90 5,268.97 5,487.18 698.51 1,698.06 382.25 200.15 482.32 36,791.51
31, 2021
Notes :-
a) Depreciation of H31,93 crore (previous year H52.03 crore) relating to the project assets and pre-fabricated residential structure (temporary structure)
has been allocated to Capitalisation / Capital Work-in-progress for expansion of project works.
Corporate overview
b) Freehold Land includes land/land developmen cost of H26.67 crore (previous year H12.56 crore) and 339 acres of land for which title clearance is under
process.
c) Plant & Equipment includes cost of Water Pipeline amounting to H3.37 crore (Gross) (previous year H3.37 crore), accumulated depreciation H2.27 crore
(previous year H1.98 crore) which is constructed on land not owned by the Company.
d) Buildings includes 612 residential flats (previous year 612 residential flats) and a hostel building valuing H130.75 crore (Gross) (previous year H130.75
crore), accumulated depreciation H15.86 crore (previous year H13.18 crore) at Samudra Township, Mundra, which are pending to be registered in
Statutory Reports
Company’s name.
e) As a part of concession agreement for development of port and related infrastructure at Mundra, the Company has been allotted land on lease basis
by Gujarat Maritime Board (GMB). The Company has recorded rights in the GMB Land at present value of future annual lease payments in the books
and classified the same as lease hold land. During the previous year, on adoption of Ind As 116 same has been classified to Right-of-Use assets .
f) Land development cost on leasehold land includes costs incurred towards reclaimed land of H840.60 crore (previous year H839.82 crore), accumulated
depreciation H165.56 crore (previous year H130.46 crore). The cost has been estimated by the management, being cost allocated out of the dredging
activities approximate the actual cost.
Financial Statements
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(contd.)
g) Reclaimed land measuring 1,093.53 hectare are pending to be registered in the name of the Company.
h) Project Assets includes dredgers and earth moving equipments.
i) Free hold Land and lease hold land includes Land given on Operating Lease Basis:
Gross Block as at March 31, 2021 : H6.71 crore (previous year H6.71 crore)
Accumulated Depreciation as at March 31, 2021 : H0.36 crore (previous year H0.30 crore)
Net Block as at March 31, 2021 : H6.35 crore (previous year H6.41 crore)
j) Leasehold land includes 38 hectare of forest land amounting to H3.59 crore allotted to one of the subsidiary
company by Ministry of Environment and Forests.
k) GIDC has allotted 11.70 hectare of land on right to use basis for the period of 10 years for developing
facilities for the project having gross value of H0.58 crore (previous year H0.58 crore) to one of the subsidiary
company.
l) Plant & Equipment includes electrical installation of H13.04 crore and accumulated depreciation of H6.85
crore (previous year H13.04 crore and accumulated depreciation of H5.76 crore) for setting up of 66 kVA
infrastructure facilities for providing power connection to the port facilities of subsidiary companies.
m) The amount of borrowing costs capitalised during the year ended March 31, 2021 was H8.13 crore (previous
year H48.59 crore). The rate used to determine the amount of borrowing costs eligible for capitalisation was
ranging from 3.38% to 9%, which is the effective interest rate of the specific borrowing.
n) The subsidiary company had reclaimed total 230 hectares of land for its port activities. The Company had
developed these land area through dredging activities and an amount of H17.68 crore (previous year H17.68
crore) is capitalised as leasehold land development.
o) Refer footnote to note 14 and 17 for security / charges created on property, plant and equipment.
(b) Right-of-Use Assets
H in crore
Particulars Land Building Plant & Railway Vehicles Total
Equipment Wagons
Cost
Recognition on Initial application of 461.29 60.95 38.52 76.47 7.97 645.20
Ind As 116 as at April 01, 2019
Reclassified on account of adoption of 295.19 - - - - 295.19
Ind AS 116
Additions 879.60 - - 19.35 - 898.95
Exchange difference - - - - (0.49) (0.49)
As at March 31, 2020 1,636.08 60.95 38.52 95.82 7.48 1,838.85
Acquisitions through Business 79.12 - - - - 79.12
Combination (refer note 38(i))
Additions 64.09 - - - - 64.09
Deductions/Adjustment - (0.53) - - (0.53)
Exchange difference (39.78) - - - 1.57 (38.21)
As at March 31, 2021 1,739.51 60.95 37.99 95.82 9.05 1,943.32
Accumulated Depreciation
Depreciation for the year 61.81 5.88 15.25 10.26 2.80 96.00
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(contd.)
H in crore
Particulars Land Building Plant & Railway Vehicles Total
Equipment Wagons
Deductions/(Adjustment) - - - - (0.11) (0.11)
As at March 31, 2020 61.81 5.88 15.25 10.26 2.69 95.89
Depreciation for the year 52.00 5.88 15.08 10.57 2.75 86.28
Deductions/(Adjustment) (13.94) - - - - (13.94)
Exchange difference (1.55) - - - 0.69 (0.86)
As at March 31, 2021 98.32 11.76 30.33 20.83 6.13 167.37
Net Block
As at March 31, 2020 1,574.27 55.07 23.27 85.56 4.79 1,742.96
As at March 31, 2021 1,641.19 49.19 7.66 74.99 2.92 1,775.95
3. Property, Plant and Equipment, Right of use assets, other Intangible Assets and Goodwill
(contd.)
H in crore
Particulars Software Railway Service Right to Non- Right to Total
License Concession operate compete use of
Fee Assets/Port port agreement land
Infrastructure
Rights
Reclassified on - - - - - (2.50) (2.50)
account of adoption
of Ind AS 116
Amortisation for the 22.18 3.13 128.65 6.07 5.05 - 165.08
year
Deductions/ (0.42) - (0.47) - - - (0.89)
Adjustment
As at March 31, 2020 68.39 13.16 634.76 10.62 5.05 - 731.98
Amortisation for the 22.62 3.26 129.75 55.17 7.74 - 218.54
year
Deductions/ (8.69) - (0.30) - - - (8.99)
Adjustment
Exchange difference 1.56 - 2.15 - - - 3.71
As at March 31, 2021 83.88 16.42 766.36 65.79 12.79 - 945.24
Net Block
As at March 31, 2020 64.04 27.65 1,725.06 113.18 10.45 - 1,940.38
As at March 31, 2021 54.14 24.39 1,602.55 3,849.24 2.71 - 5,533.03
(d) Goodwill
H In crore
Particulars March 31, 2021 March 31, 2020
Carrying value at the beginning of the year 3,286.25 3,267.93
Amount recognised through acquisitions and business combinations. 749.79 20.17
(refer note 38(i))
On account of dilution in stake of subsidiary - (1.72)
Forex movement 0.39 (0.13)
Carrying value at the end of the year (refer note 45) 4,036.43 3,286.25
4 b) Other Investments
H In crore
Particulars March 31, 2021 March 31, 2020
Unquoted
In Equity Shares of Company (Investment at fair value through OCI)
(refer note (c) below)
5,00,00,000 (previous year 5,00,00,000) fully paid Equity Shares of H 262.50 250.00
10 each of Kutch Railway Company Limited
1,73,30,000 (previous year - 1,73,30,000) fully paid Equity Shares of H 20.78 22.51
10 each of Bharuch Dahej Railway Company Limited
5,50,000 (previous year 5,50,000) fully paid Equity Shares of H10 0.94 0.94
each of Mundra Solar Technopark Private Limited
1,000 (previous year 1,000 ) fully paid Equity Shares of AUD 1 each of -* -*
Mundra Port Pty Limited
14,001 (previous year 14,001) fully paid Equity Shares of H10 each of 0.01 5.21
Ambily Technologies Private Limited
50,000 (previous year 50,000 ) fully paid Equity Share of H10 each of 0.05 0.05
Mundra LPG Terminal Private Limited
50,000 (previous year 50,000 ) fully paid Equity Share of H10 each of 0.05 0.05
Adani Dhamra LPG Terminal Private Limited
8,10,00,000 fully paid Equity Share of H10 each of Krishnapatnam 84.70 -
Railway Company Limited
1,99,000 fully paid Equity Share of H10 each of Blyth Wind Park 0.20 -
Private Limited
200 Fully paid Equity Shares of H10 each of Investment in TCP 0.01 -
Limited
Total FVTOCI Investment 369.24 278.76
d) Value of Deemed Investment accounted in joint venture entities in terms of fair valuation under Ind AS 109
H In crore
Particulars March 31, 2021 March 31, 2020
Adani Total Private Limited 264.66 238.37
5 Trade Receivables
(unsecured, unless otherwise stated)
H In crore
Particulars March 31, 2021 March 31, 2020
Trade Receivables
Considered good 3,037.66 3,270.19
Less : Allowances for expected credit loss due to increase in credit (111.95) (68.05)
risk (“ECL”)
2,925.71 3,202.14
Customers' Bill Discounted (refer note (c) below) 539.81 613.05
Other Trade Receivables 2,385.90 2,589.09
Total Trade Receivables 2,925.71 3,202.14
Refer note 31 for related party balances
Notes:
a) No trade or other receivables are due from directors or other officers of the Company either severally or
jointly with any other person nor any trade or other receivable are due from firms or private companies in
which any director is a partner, a director or a member.
b) Generally, as per credit terms trade receivables are collectable within 30-180 days although the Group
provide extended credit period with interest between 8% to 15% considering business and commercial
arrangements with the customers including with the related parties.
c) The Carrying amounts of the trade receivables include receivables amounting to H539.81 crore (previous
year H613.05 crore) which are subject to a bills discounting arrangement. Under this arrangement, the
Group has transferred the relevant receivables to the bank / financial institution in exchange of cash and is
prevented from selling or pledging the receivables. The Cost of bill discounting is to the customer’s account
as per the arrangement. However, the Group has retained late payment and credit risk. The Group therefore
continues to recognise the transferred assets in their entirety in its balance sheet. The amount repayable
under the bills discounting arrangement is presented as unsecured borrowing in note 17.
6 Loans
(Unsecured unless otherwise stated)
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Loans to Joint Venture Entities
- Considered Good 751.26 1,264.37 68.00 68.00
Loans to Related Parties
- Considered Good - - - 1.85
Loans to others (refer note below)
- Considered Good 235.00 - 1,014.81 1,783.03
986.26 1,264.37 1,082.81 1,852.88
Note :
Loan to others includes inter-corporate deposits aggregating H1,149.81 crore (previous year H1,783.03 crore)
(Including renewals on due dates) to third parties. These deposits are given at prevailing market interest rates.
The inter-corporate deposits have been approved by the Finance committee of the Board of Directors and
subsequently noted by the Board of Directors of the company.
Repayment of loans given to these parties along with interest thereon have been guaranteed by way of
undertaking obtained from one of the promoter owned entity, a related party, in the event of default by the said
companies to pay the dues.
Note:-
a) Advance for land consideration are payments towards cost of acquisition of land for port development
which is acquired and owned by Government of Odisha, the payment of which has been borne by one of the
subsidiary. The payments so made by the subsidiary are being adjusted against revenue share dues payable
to the government from the commencement date of commercial operations in annual equal instalments
over 15 years.
b) Future minimum lease receivables under finance leases together with the present value of the net minimum
lease payments receivable (“MLPR”) are as follows:
H In crore
Particulars March 31, 2021 March 31, 2020
Gross Present Gross Present
Investment Value Investment Value
in the lease of MLPR in the lease of MLPR
Within One Year 129.47 120.20 128.76 117.30
After one year but not later than five years 593.28 417.21 571.20 405.18
More than five years 3,054.63 980.58 3,180.77 988.90
Total minimum lease receivables 3,777.38 1,517.99 3,880.73 1,511.38
Less: Amounts representing finance charges (2,259.39) - (2,369.35) -
Present value of minimum lease receivables 1,517.99 1,517.99 1,511.38 1,511.38
8 Other Assets
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Capital advances (refer note (a) and (e) below) 1,009.52 1,038.53 - -
Balance with Government Authorities (refer note (d) 288.51 253.36 361.67 329.33
below)
Prepaid Expenses 14.23 17.11 99.93 54.65
Accrued revenue 7.23 - 64.90 64.00
Contract Assets (refer note (b) below) - - 135.92 90.80
Advances recoverable other than in cash
To others 0.02 0.04 230.54 137.55
To related parties 111.35 237.10 120.24 186.44
Project work in progress (refer note 9(i)) - 422.33 - -
Deferred Rent 10.71 8.57 - -
Export benefits and Other receivables (refer note (c) 521.50 262.68 - 301.40
below)
Taxes recoverable (net) (refer note 26) 630.37 513.94 - -
2,593.44 2,753.66 1,013.20 1,164.17
Notes:
a) Capital advance includes H273.58 crore (previous year H246.06 crore) paid to various parties and government
authorities towards purchase of land.
b) Contract assets are the right to receive consideration in exchange for services transferred to the customer.
Contract assets are initially recognised for revenue earned from services as receipt of consideration is
conditional on successful completion of services. Upon completion of services and acceptance by the
customer, the amounts recognised as contract assets are reclassified to financial assets.
c) As per Government notification no. 57/2015-2020 dated March 31, 2020 the Group is entitled to Service
Exports from India Scheme (SEIS) benefits on Port Services till year ended March 31, 2020. Accordingly, the
SEIS benefits of H593.72 crore for the Port Services provided during the financial year ended March 31, 2020
has been accounted by the Group on provisional basis pending notification in respect of the eligible service
categories under the scheme and the rates of rewards on such services by Government Authorities as at
reporting date. The Group based on the advise of legal counsel is confident of realisability of the same
d) Balance with Government Authorities includes H10 crore paid to Kamarajar Port Limited (“KPL”) as a deposit.
(refer note 35(s))
e) Capital advance is net of allowances for doubtful advance amounting to H10.59 crore (previous year H10.59
crore)
9 Inventories
(At lower of cost and Net realisable value)
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Stores and Spares, Fuel and Lubricants - - 374.42 288.28
Project work in progress - 422.33 617.43 -
- 422.33 991.85 288.28
Amount disclosed under non-current assets (refer - (422.33) - -
note 8)
- - 991.85 288.28
Note:-
i) As at March 31, 2021, the Dhamra Port Company Limited (a subsidiary company) has spent H617.43 crores
(previous year H422.33 crores) towards development of LNG Terminal Marine Infrastructure (Project) which is
expected to be transferred to Dhamra LNG Terminal Private Limited (DLNG) on Right of Use basis on completion
of the Project in the next financial year.
10 Current Investments
H In crore
Particulars March 31, 2021 March 31, 2020
Unquoted mutual funds (valued at fair value through profit or loss)
Nil (previous year 2,50,000 units) of H10 each in HDFC Mutual Fund - 0.25
Nil (previous year 48,465 units) of H2402 each in IDFC cash fund - 11.64
Mutual Fund
4.78 units (previous year Nil) of H1000 each in IDFC cash fund -* -
Mutual Fund
1,60,593 units (previous year Nil units) of H3,351.73 each in SBI 53.82 -
Mutual Fund
2,12,744 units (previous year Nil units) of H1112.93 each in Aditya Birla 23.68 -
Mutual Fund
12,18,4,579 units (previous year Nil units) of H110.98 each in ICICI 135.24 -
Mutual Fund
Investment in Pass Through Certificate (Valued at Amortised Cost)
1,00,000 units (previous year Nil) of Pass Through Certificate 926.02 -
1138.76 11.89
-* Figures being nullified on conversion to Hin crore
H In crore
Particulars March 31, 2021 March 31, 2020
Aggregate carrying value of unquoted Mutual Funds 212.74 11.89
Aggregate net assets value of unquoted Mutual Funds 212.74 11.89
Aggregate carrying value of unquoted investment in Pass Through 926.02 -
Certificate
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
Equity Shares March 31, 2021 March 31, 2020
No H In crore No H In crore
At the beginning of the year 2,03,17,51,761 406.35 2,07,09,51,761 414.19
(Less):- Shares bought back (refer note (ii) below) - - (3,92,00,000) (7.84)
Outstanding at the end of the year 2,03,17,51,761 406.35 2,03,17,51,761 406.35
Notes:
i) Terms/rights attached to equity shares
The Company has only one class of equity share having par value of H2 per share. Each holder of equity share
is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
ii) During the previous year, the Company has bought-back 3,92,00,000 Equity Shares at a price of H500 per
equity share from eligible shareholders of the Company on a proportionate basis through Tender Offer route
in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities)
Regulations, 2018 and the Companies Act, 2013 and rules made thereunder.
(b) Equity Component of Non-cumulative Redeemable Preference Shares
Particulars March 31, 2021 March 31, 2020
No H In crore No H In crore
At the beginning of the year 25,01,824 166.53 28,11,037 165.88
Add:- Impact due to remeasurement of Deferred - - - 14.82
Tax (refer note (ii) below)
Less: Pre-redemption of Preference shares (refer - - (3,09,213) (14.17)
note (iii) below)
Outstanding at the end of the year 25,01,824 166.53 25,01,824 166.53
13 Other Equity
H In crore
Particulars March 31, 2021 March 31, 2020
Equity Component of Non Cumulative Redeemable Preference
shares
Opening Balance 166.53 165.88
Add:- Impact due to remeasurement of Deferred Tax - 14.82
(refer note 12 (b)(ii))
Less:- Pre-mature redemption of Preference Share (refer note 12 (b)(iii)) - (14.17)
Closing Balance 166.53 166.53
H In crore
Particulars March 31, 2021 March 31, 2020
Securities Premium
Opening Balance 599.56 2,551.72
Less:- Premium paid on buyback of equity shares (refer note 12 (a) (ii)) - (1,952.16)
Closing Balance 599.56 599.56
Note:- Securities premium represents the premium received on issue of shares over and above the face value of
equity shares. The same is available for utilisation in accordance with the provisions of the Companies Act, 2013.
H In crore
Particulars March 31, 2021 March 31, 2020
General Reserve
Opening Balance 2,719.80 2,575.87
Add- Transfer from Debenture Redemption Reserve 46.17 162.49
Less: Transfer to Capital Redemption Reserve upon buyback - (7.84)
Less: Transaction costs for buyback - (10.72)
Closing Balance 2,765.97 2,719.80
Note:- The general reserve is used from time to time to transfer profit from retained earnings for apportion
purposes. As the general reserve is created by transfer from one component of equity to another and is not an
item of other comprehensive income, items included in the general reserve will not be reclassified subsequently
to statement of profit and loss.
H In crore
Particulars March 31, 2021 March 31, 2020
Debenture Redemption Reserve ("DRR")
Opening Balance 477.20 514.04
Add: Transferred from Retained Earnings 125.66 125.65
Less: Transferred to General Reserve (46.17) (162.49)
Closing Balance 556.69 477.20
Note: The Company has issued redeemable non-convertible debentures. The Company has been creating
Debenture Redemption Reserve (DRR) as per the relevant provisions of the Companies Act 2013. However,
according to Companies (Share Capital and Debentures) Amendment Rules, 2019 effective from August 16,
2019, the Company is not required to create DRR on any fresh issue of Debentures. Accordingly, the Company
has not created DRR on fresh issue of redeemable non-convertible debentures.
(b) Disclosure with regards to changes in liabilities arising from financing activities - Ind AS 7 Statement of
Cash Flows
Disclosure of changes in liabilities arising from financing activities, including changes arising from cash
flows and non-cash changes (such as foreign exchange gains or losses) is as under.
H in crore
Particulars Borrowings Lease Unpaid Derivative Buyback Pre-mature Total
( including Liabilities Dividend Contract of equity redemption
Current on Equity shares of
Maturities) ( including and Preference
and Interim expense Shares
Interest dividend) upon
accrued and buyback
but not due Preference
Shares
(including
Dividend
Distribution
Tax)
April 1, 2019 27,860.09 - 1.08 45.48 - - 27,906.65
Cash Flows (1,522.35) (13.42) (844.62) 107.88 (1,970.72) (12.40) (4,255.63)
Foreign 1,768.25 - - - - - 1,768.25
Exchange
Movement
Adjustment due - 619.75 - - - - 619.75
to adoption of
Ind AS 116
Change in fair (13.80) - - - - - (13.80)
value
Charged to Profit 1,950.64 - - (153.36) - - 1,797.28
and Loss
16 Other Liabilities
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Advance from customers (refer note 41) - - 716.01 731.91
Deposits from customers - - 12.40 11.34
Statutory liabilities - - 207.50 126.82
Unearned Income under long term land lease/ 572.64 636.68 64.06 63.50
Infrastructure usage agreements
Deferred Income on fair valuation of Deposit taken 24.32 1.15 - -
Deferred Government Grant (refer note (i) below) 430.09 432.77 13.26 12.69
Deferred Revenue for Service Line Contributions 38.74 39.07 - -
Unearned revenue - - 66.44 65.91
Contract liabilities (refer note (ii) & (iii) below) - 343.59 641.52 334.49
1,065.79 1,453.26 1,721.19 1,346.66
Note:-
(i) Movement in Deferred Government Grant
H In crore
Particulars March 31, 2021 March 31, 2020
Opening Balance 445.46 449.25
Add : Addition during the year 10.84 9.64
Less : Adjustment during the year - (0.95)
Less: Amortisation during the year (12.95) (12.48)
Closing Balance 443.35 445.46
(ii) Contract liabilities include advances received to deliver Services and as well as transaction price allocated
to unsatisfied performance obligation in respect of Storage and Dispatch services of Customers’ Cargo lying
at Port.
(iii) Non-Current Contract liabilities include advances received against ongoing project allocated to unsatisfied
performance obligation in respect of construction of LNG Project marine infrastructure. As per the
management’s estimate satisfaction of performance obligation under the contract is expected after 12
months from the balance sheet date.
17 Current Borrowings
H In crore
Particulars March 31, 2021 March 31, 2020
Short term borrowing from banks - (unsecured) (refer note (d), (e) and - 850.00
(g(i)) below)
Packing Credit Rupee Loan from bank (unsecured) (refer note (b) and 400.00 400.00
(c) below)
Commercial paper (Unsecured) (refer note (f) below) - 294.12
400.00 1,544.12
Customers' Bills Discounted (Unsecured) (refer note (a) below) 539.81 613.05
939.81 2,157.17
Notes:
a) Factored receivables of H539.81 crore (previous year H613.05 crore) have recourse to the Company and
interest liability on amount of bill discounted is borne by the customer. The maturity period of the transfer
is 1 to 12 months period.
19 Provisions
H In crore
Particulars Non-current portion Current portion
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Provision for Employee Benefits
Provision for gratuity (refer note 28) 18.64 3.11 1.25 4.93
Provision for compensated absences 7.07 4.64 94.48 71.94
25.71 7.75 95.73 76.87
Other Provisions
Provision for operational claims (refer note (a) below) - - - 29.43
Provision for asset retirement obligation 0.97 0.48 - -
26.68 8.23 95.73 106.30
Note (a):
H In crore
Particulars March 31, 2021 March 31, 2020
Opening Balance 29.43 29.43
Less : Utilised / (Settled) during the year (10.53) -
Less:- Reversed during the year (18.90) -
Closing Balance - 29.43
Operational Claims are the expected claims against outstanding receivables made/to be made by the customers
towards shortages of stock, handling losses, damages to the cargo, storage and other disputes. The probability
and the timing of the outflow/adjustment with regard to above depends on the ultimate settlement / conclusion
with the respective customer.
Notes:
a) Reconciliation of revenue recognized with Contract Price
H In crore
Particulars March 31, 2021 March 31, 2020
Contract price 12,397.75 10,781.07
Adjustment for:
Change in Consideration (3.71) (20.49)
Refund Liability (237.45) (270.77)
Change in value of Contract Assets 45.12 11.40
Change in value of Contract Liabilities 12.94 (19.62)
Revenue from Contract with Customer 12,214.65 10,481.59
b) The Group has given various assets on finance lease to various parties. These leases have terms ending
between 11 to 30 years. The lease agreements entered are non-cancellable. There is no contingent rent, no
sub-leases and no restrictions imposed by the lease arrangements. All land leases include a clause to enable
upward revision of the rental charge every three to five years upto 20%. The Group has also received one-time
income of upfront premium ranging from H2300 to H5500 per Sq. mtr for use of common infrastructure by
the parties. Such one-time income of upfront premium is non-refundable. Income of H21.01 crore (previous
year H42.87 crore) including upfront premium of H9.32 crore (previous year H21.80 crore) accrued under
such lease have been booked as income in the statement of profit and loss.
c) Assets given under operating lease
The Group has given certain land portions on operating lease. These lease arrangements range for a period
between 5 and 60 years. Most of the leases are renewable for further period on mutually agreeable terms.
Some of the subsidiaries companies have entered into an agreement with Food Corporation of India (FCI)
to design, develop, construct, operate and maintain project facilities for warehousing and transportation
of the food grains on Design, Built, Finance, Own and Operate (DBFOO) basis. Under the agreement, the
subsidiary company is eligible for revenues based on Annual Guaranteed Tonnage irrespective of the actual
usage by FCI.
The total future minimum lease rentals receivable at the Balance Sheet date is as under:
H In crore
Particulars March 31, 2021 March 31, 2020
For a period not later than one year 95.25 89.84
For a period later than one year and not later than five years 481.25 471.23
For a period later than five years 783.98 929.92
1,360.48 1,490.99
The Group has recognised income from operating leases of H99.18 crore (previous year H128.86 crore)
21 Other Income
H In crore
Particulars March 31, 2021 March 31, 2020
Interest income on
Bank Deposits, Inter Corporate Deposits, Security Deposits etc. 1,602.16 1,585.52
Customer dues 30.35 44.32
Finance Lease 125.66 39.90
Dividend income on Non-current Investments 7.01 8.00
Net Gain on Fair value of financial instrument 12.39 48.70
Net Gain on Disposal of Associate 92.28 -
Scrap Sales 24.16 7.27
Unclaimed liabilities / excess provision written back 5.38 1.84
Financial Guarantee Income 2.71 1.52
Amortisation of Government Grant (refer note 16 (i)) 12.95 12.48
Miscellaneous Income 55.18 111.80
1,970.23 1,861.35
22 Operating Expenses
H In crore
Particulars March 31, 2021 March 31, 2020
Cargo handling / other charges to contractors (net of 1,357.46 1,202.03
reimbursements)
Purchase of Power for Utilities Business 166.56 155.04
Customer Claims (including expected credit loss) (refer note below) 25.00 9.71
Railway's Service Charges 523.97 614.80
Tug and Pilotage Charges 49.73 47.94
Maintenance Dredging 13.01 39.07
Repairs to Plant & Equipment 125.64 69.84
Stores, Spares and Consumables 223.02 188.07
Repairs to Buildings 18.94 10.43
Power and Fuel 351.69 330.01
Waterfront Charges 244.42 280.20
Cost of Assets transferred under Finance Lease 4.20 19.80
Cargo Freight and Transportation Expenses 116.98 98.77
Aircraft Operating Expenses 9.90 11.92
Other expenses including Customs Establishment charges 7.78 6.02
Construction expenses under Service Concession Arrangements 21.19 13.61
3,259.49 3,097.26
Note : Expected credit loss of H18.90 crore has been netted of with reversal of operational claim of H18.90 crore.
24 Finance Costs
H In crore
Particulars March 31, 2021 March 31, 2020
a) Interest and Bank Charges
Interest on
Debentures and Bonds 1,684.60 1,167.10
Loans, Buyer's Credit etc. 316.64 663.04
Lease liabilities 48.97 40.39
Others 3.21 38.45
Bank and other Finance Charges 75.74 41.66
2,129.16 1,950.64
b) Loss/(Gain) on Derivatives / Swap Contracts (net) 126.13 (137.50)
2,255.29 1,813.14
25 Other Expenses
H In crore
Particulars March 31, 2021 March 31, 2020
Rent Expenses 11.15 6.49
Rates and Taxes 7.70 6.72
Insurance 82.36 59.52
Advertisement and Publicity 9.73 10.36
Other Repairs and Maintenance 67.93 66.82
Legal and Professional Expenses 140.15 130.32
Corporate Support Service Fees 69.94 63.74
IT Support Services 12.99 17.51
Security Services Charges 55.69 43.18
Communication Expenses 37.00 28.25
Electric Power Expenses 2.08 2.73
Travelling and Conveyance 47.05 49.14
Directors' Sitting Fee 0.61 0.51
Commission to Non-executive Directors 0.94 0.63
Charity and Donations 109.36 110.34
Diminution in value of inventories 2.49 0.16
Loss on Sale/Discard of Property, Plant and Equipment (net) 3.55 12.49
Miscellaneous Expenses 30.90 54.99
691.62 663.90
26 Income Tax
The major component of income tax expenses for the year ended March 31, 2021 and March 31, 2020 are as
under :-
(i) Tax Expense reported in the Consolidated Statement of Profit and Loss
H In crore
Particulars March 31, 2021 March 31, 2020
Current Income Tax
Current Tax Charges 1,271.51 707.49
Tax (credit) under Minimum Alternative Tax (130.63) (103.50)
Deferred Tax
Relating to origination and reversal of temporary differences 102.39 (144.60)
1,243.27 459.39
Tax on Other Comprehensive Income ('OCI')
Deferred tax related to items recognised in OCI during the year
Tax impact on re-measurement losses on defined benefit plans (0.54) (0.44)
Tax impact on net (Loss)/ Gains on FVTOCI Equity Investments (13.86) 2.76
(14.40) 2.32
Note: Current Tax Liabilities (net) and Taxes Recoverable (net) are presented based on a year-
wise tax balances of respective entities, as the case may be.
(iii) Reconciliation of tax expenses and the accounting profit multiplied by India’s domestic tax
rate for March 31, 2021 and March 31, 2020
H In crore
Particulars March 31, 2021 March 31, 2020
Accounting profit before Income tax 6,292.01 4,243.92
Tax Rate 34.94% 34.94%
At India's Statutory income tax rate 2,198.68 1,483.00
Add /(Less) Tax effect of:-
Expenses not allowable under Tax Law 37.15 39.75
Deduction under chapter VI-A (310.52) (224.50)
Recognition of deferred tax for previous period - (12.63)
Income charged as per special provision of Income Tax Act, 1961 (420.68) (323.72)
Income that is exempt from tax (23.17) (2.85)
Reversal of deferred tax of Gain on discontinue of associate in 15.80 -
OCI
Adjustment in respect of previous years 2.32 (28.78)
MAT Credit of previous period (recognised)/derecognised (2.64) 1.61
Deferred tax balances due to the change in income tax rate (2.76) (304.32)
(refer footnote to 26 (iv))
Effect due to different tax rate (27.17) (93.97)
*Reversal of Deferred Tax liability on deemed equity of preference share of H14.82 crore on account of
change in tax rates as per note below and H5 crore on account of premature redemption of preference
shares is adjusted to other equity in previous year.
MAT credit of H146.98 crore (previous year H105.11 crore) has been recognised in subsidiary entities Adani
Petronet (Dahej) Port Private Limited, MPSEZ Utilities Limited, Marine Infrastructure Developer Private
Limited and Adani Hazira Port Limited.
(viii) Certain subsidiary companies have carried forward unabsorbed depreciation aggregating H2,753.11 crore
(Previous year H1,497.65 crore) under the Income Tax Act,1961 for which there is no expiry date of its tax
credit utilisation by the respective entities. Further certain subsidiary companies have carried forward
losses aggregating H 848.14 crore (previous year H497.03 crore) under the Income Tax Act, 1961, which
gets expired within 8 years of the respective year.
The carried forward losses will get expired mainly during the years as follows:
Financial Year Amount (H in crore) Expiry Date
2013-14 38.31 2021-22
2014-15 82.27 2022-23
2015-16 243.85 2023-24
2016-17 162.58 2024-25
2017-18 114.05 2025-26
2018-19 67.52 2026-27
2019-20 102.58 2027-28
2020-21 36.98 2028-29
Total 848.14
Deferred tax assets have not been recognised in respect of these unabsorbed losses as they may not be
used to offset taxable profits elsewhere in the Group, they have arisen in subsidiaries that have been loss-
making for some time, and there are no other tax planning opportunities or other evidence of recoverability
in the near future.
(ix) The Company has paid dividend to its shareholders. This has resulted in payment of Dividend Distribution
Tax (DDT) to the taxation authorities. DDT represents additional payment to taxation authority on behalf
of the shareholders hence DDT paid is charged to other equity.
(x) Deferred income taxes are not provided on the undistributed earnings of subsidiaries where it is expected
that earnings of the subsidiary will not be distributed in the foreseeable future.
b) The Group has a defined gratuity plan. Under the plan every employee who has completed at least five
years of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year
of service. The scheme is funded with Life Insurance Companies in form of a qualifying insurance policy for
future payment of gratuity to the employees.
Each year, the management reviews the level of funding in the gratuity fund. Such review includes the
asset-liability matching strategy. The management decides its contribution based on the results of this
review. The management aim to keep annual contributions relatively stable at a level such that no plan
deficits ( based on valuation performed) will arise.
The following tables summarises the component of the net benefits expense recognised in the statement of
profit and loss and the funded status and amounts recognized in the balance sheet for the respective plan.
Gratuity
i) Changes in present value of the defined benefit obligation are as follows:
H In crore
Particulars March 31, 2021 March 31, 2020
Present value of the defined benefit obligation at the beginning 46.36 36.39
of the year
Current service cost 7.17 5.61
Interest cost 3.78 2.80
Actuarial (gain) / loss arising from and including OCI:
- change in demographic assumptions (1.02) 0.31
- change in financial assumptions 0.01 3.04
- experience variance 0.55 (0.50)
Benefits paid (6.26) (2.02)
Liability Transfer In- Business acquisition adjustment 12.04 1.23
Liability Transfer In/(out) (0.91) (0.50)
Present value of the defined benefit obligation at the end of the 61.72 46.36
year
iv) Expense recognised in the statement of profit and loss for the year
H In crore
Particulars March 31, 2021 March 31, 2020
Current service cost 7.17 5.61
Interest cost on benefit obligation 0.95 0.20
Amount capitalised (0.39) (0.28)
Total Expense included in employee benefits expense 7.73 5.53
x) The Following payments are expected contributions to the defined benefit plan in future years:
H In crore
Particulars March 31, 2021 March 31, 2020
Within the next 12 months (next annual reporting period) 9.19 4.62
Between 2 and 5 years 22.79 17.79
Between 5 and 10 years 24.78 18.88
Beyond 10 years 39.21 49.14
Total Expected Payments 95.97 90.43
The Group expects to contribute H12.34 crore to gratuity fund in the financial year 2021-22. ( previous year
H10.93 crore)
xi) Asset-Liability Matching Strategies
The Group has purchased insurance policy which is basically a year-on-year cash accumulation plan in
which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance
company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year
(subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk.
However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of
liabilities. Thus, the Group is exposed to movement in interest rate (in particular, the significant fall in
interest rates, which should result in a increase in liability without corresponding increase in the asset)
29 Segment Information
Operating Segments
The identified reportable Segments are (i) Port and SEZ activities which includes developing, operating
and maintaining the Ports services, Ports related Infrastructure development activities and development
of infrastructure at contiguous Special Economic Zone and (ii) others in terms of Ind-AS 108 “”Operating
Segments”” as notified under section 133 of the Companies Act 2013. Other Segment mainly includes
Aircraft Operating Income, Utilities services, Warehousing and transportation of food grains. Container
Trains Services on specific Railway Routes and Multi-modal Cargo storage cum logistics services through
development of Inland Container Depots at various strategic locations in terms of concession agreement
from Ministry of Railways.
Identification of Segments:
The chief operating decision maker monitors the operating results of its Business segment separately
for the purpose of making decision about resource allocation and performance assessment. Segment
performance is evaluated based on profit or loss and is measured consistently with profit or loss in the
financial statements, Operating segment have been identified on the basis of nature of products and other
quantitative criteria specified in the Ind AS 108.
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as
unallocable expenditure (net of unallocable income).
30 Adani Ports and Special Economic Zone Limited’s share in the voting power of subsidiary
companies as at year end is as follows:
Sr. Name of Company Country of Proportion of Proportion of
No. Incorporation Ownership Ownership
Interest (%) Interest (%)
March 31, 2021 March 31, 2020
1 Adani Logistics Limited India 100 100
2 Karnavati Aviation Private Limited India 100 100
3 MPSEZ Utilities Limited (Formerly known as India 100 100
MPSEZ Utilities Private Limited)
4 Mundra SEZ Textile and Apparel Park Private India 55 55
Limited
5 Adani Murmugao Port Terminal Private India 100 100
Limited
6 Mundra International Airport Private Limited India 100 100
7 Adani Hazira Port Limited (Formerly known as India 100 100
Adani Hazira Port Private Limited)
8 Adani Petronet (Dahej) Port Private Limited India 74 74
9 Hazira Infrastructure Limited (Formerly known India 100 100
as Hazira Infrastructure Private Limited)
10 Madurai Infrastructure Private Limited India 100 100
11 Adani Vizag Coal Terminal Private Limited India 100 100
12 Adani Kandla Bulk Terminal Private Limited India 100 100
(refer note (a) below)
13 Adani Warehousing Services Private Limited India 100 100
14 Adani Ennore Container Terminal Private India 100 100
Limited
15 Adani Hospitals Mundra Private Limited India 100 100
16 The Dhamra Port Company Limited India 100 100
17 Shanti Sagar International Dredging India 100 100
Limited (Formerly known as Shanti Sagar
International Dredging Private Limited)
18 Abbot Point Operations Pty Limited Australia 100 100
19 Adani Vizhinjam Port Private Limited India 100 100
20 Adani Kattupalli Port Limited (Formerly known India 100 100
as Adani Kattupalli Port Private Limited)
21 Abbot Point Bulkcoal Pty Limited Australia 100 100
22 The Adani Harbour Services Limited (Formerly India 100 100
known as The Adani Harbour Services Private
Limited)
23 Dholera Infrastructure Private Limited India 49 49
(refer note 2.4)
24 Dholera Port and Special Economic Zone India 49 49
Limited
25 Adinath Polyfills Private Limited India 100 100
26 Mundra International Gateway Terminal India 100 100
Private Limited
27 Adani International Terminals Pte. Limited Singapore 100 100
28 Blue Star Realtors Private Limited India 100 100
30 Adani Ports and Special Economic Zone Limited’s share in the voting power of subsidiary
companies as at year end is as follows: (contd.)
30 Adani Ports and Special Economic Zone Limited’s share in the voting power of subsidiary
companies as at year end is as follows: (contd.)
30 Adani Ports and Special Economic Zone Limited’s share in the voting power of subsidiary
companies as at year end is as follows: (contd.)
Adani Ports and Special Economic Zone Limited’s share in the voting power in joint venture entities
as at year end is as follows:
Sr. Name of Company Country of Proportion of Proportion of
No. Incorporation Ownership Ownership
Interest (%) Interest (%)
March 31, 2021 March 31, 2020
1 Adani International Container Terminal India 50 50
Private Limited
2 Adani CMA Mundra Terminal Private Limited India 50 50
3 Adani NYK Auto Logistics Solutions Private India 51 51
Limited
4 Adani Total Private Limited (Formerly known India 50 50
as Adani Petroleum Terminal Private Limited)
5 Dhamra LNG Terminal Private Limited # India 50 50
6 Total Adani Fuels Marketing Private Limited India 50 50
(incorporated on October 22, 2019) #
7 Dighi Roha Rail Limited (acquired on February India 50 N.A.
15, 2021)
# These companies are subsidiaries of Adani Total Private Limited
Note a) :
During the year 2016-17, the Company has accounted for purchase of 3,12,13,000 numbers of equity shares
in Adani Kandla Bulk Terminal Private Limited at consideration of H31.21 crore. The equity shares have been
purchased from the Adani Enterprises Limited, a group company whereby this entity has become a wholly owned
subsidiary. As per the management, the transfer has been recorded based on Irrevocable Letter of Affirmation
dated March 31, 2017 from the seller and acceptance by the Company although legal transfer of equity share of
Adani Kandla Bulk Terminal Private Limited is still in process at year end.
32 The Group takes various types of derivative instruments. The category-wise outstanding position of
derivative instruments is as under:
Nature Particulars of Derivatives Purpose
As at As at
March 31, 2021 March 31, 2020
Forward Contract USD 9 Million USD 140.07 Million Hedging of foreign currency borrowing
principal & interest liability
USD 40 Million USD 46 Million Hedging of foreign currency borrowing
principal liability of USD against JPY
Foreign Currency - - USD 111.38 Million Hedging of currency and interest rate risk of
INR Full Currency foreign currency borrowing
Swap
The details of foreign currency exposures those are not hedged by a derivative instrument or otherwise are
as under:
Nature As at March 31, 2021 As at March 31, 2020
Amount Foreign Amount Foreign
Currency Currency
(H In crore) (in Million) (H In crore) (in Million)
Foreign Currency Loan 16.18 USD 2.21 196.88 USD 26.02
654.63 EUR 76.34 766.35 EUR 92.59
Buyer's Credit 172.76 JPY 61.41 JPY 882.00
2,613.00
Trade Payables and Other Current Liabilities 58.18 USD 7.96 153.99 USD 20.35
9.02 EUR 1.05 17.03 EUR 2.06
54.35 JPY 822 - -
0.13 SGD 0.02 0.26 SGD 0.05
0.09 AUD 0.02 - -
0.01 GBP # 0.01 GBP #
Interest accrued but not due 102.85 USD 14.07 137.80 USD 18.21
1.27 EUR 0.15 1.57 EUR 0.19
0.42 JPY 6.34 0.04 JPY 0.56
Balances with Bank - - 0.30 USD 0.04
Trade Receivable 1.46 USD 0.20 2.41 USD 0.32
0.02 EUR # - USD 0.00
Other Receivable - - 5.26 AUD 1.14
69.32 USD 9.48 50.82 USD 6.72
0.38 EUR 0.04 0.06 EUR 0.01
- - 0.03 JPY 0.40
Foreign Currency Bond 23,029.65 USD 17,316.88 USD
3,150.00 2,288.63
Loan Given 365.70 USD 50.02 503.55 USD 66.55
# Figures being nullified on conversion to foreign currency in million.
* Figures being nullified on conversion to H in crore.
H In crore
Closing rates as at : March 31, 2021 March 31, 2020
INR / USD 73.11 75.67
INR / EUR 85.75 82.77
INR / GBP 100.75 93.50
INR / JPY 0.66 0.70
INR / AUD 55.70 46.08
INR / SGD 54.35 53.03
INR / BDT 0.86 0.89
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
33.1 Category-wise Classification of Financial Instruments:
H in crore
Particulars Refer As at March 31, 2021
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Financial Assets
Cash and cash equivalents 11 - - 4,198.04 4,198.04
Bank balances other than cash and 11 - - 592.16 592.16
cash equivalents
Investments in Equity Shares (other 4 (b) 369.24 - - 369.24
than investment in Joint Venture
entities and associate entity)
Investment in debt instrument of 4 (b) - 71.59 - 71.59
joint venture entity
Investments in unquoted Mutual 10 - 212.74 - 212.74
Funds
Investments in unquoted 4 - - 7.03 7.03
Debentures and Government
Securities
Investments in Pass Through 10 - - 926.02 926.02
Certificate
Trade Receivables (including bill 5 - - 2,925.71 2,925.71
discounted)
Loans 6 - - 2,069.07 2,069.07
Derivatives Instruments 7 - 15.05 - 15.05
Other Financial Assets 7 - - 5,618.47 5,618.47
Total 369.24 299.38 16,336.50 17,005.12
Financial Liabilities
Borrowings (including the bills 14,15,17 - - 34,940.79 34,940.79
discounted and current maturities)
Trade Payables 18 - - 1,013.85 1,013.85
Financial Guarantee given 15 - - 9.45 9.45
Lease Liabilities 15 - - 604.59 604.59
Other Financial Liabilities 15 - - 2,392.79 2,392.79
Total - - 38,961.47 38,961.47
H in crore
Particulars Refer As at March 31, 2020
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Financial Assets
Cash and cash equivalents 11 - - 7,195.46 7,195.46
Bank balances other than cash and 11 - - 125.30 125.30
cash equivalents
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
H in crore
Particulars Refer As at March 31, 2020
Note Fair Value Fair Value Amortised Carrying
through other through cost Value
Comprehensive profit or
income loss
Investments in Equity Shares (other 4 (b) 278.76 - - 278.76
than investment in Joint Venture
Entities and associate entity)
Investment in debt instrument of 4 (b) - 61.34 - 61.34
joint venture entity
Investments in unquoted Mutual 10 - 11.89 - 11.89
Funds
Trade Receivables (including bill 5 - - 3,202.14 3,202.14
discounted)
Loans 6 - - 3,117.25 3,117.25
Derivative Instruments 7 - 120.24 - 120.24
Other Financial Assets 7 - - 5,918.71 5,918.71
Total 278.76 193.47 19,558.86 20,031.09
Financial Liabilities
Borrowings (including the bills 14,15,17 - - 30,075.79 30,075.79
discounted and current maturities)
Trade Payables 18 - - 728.74 728.74
Financial Guarantee given 15 - - 4.98 4.98
Lease Liabilities 15 - - 606.33 606.33
Other Financial Liabilities 15 - - 1,721.87 1,721.87
Total - - 33,137.71 33,137.71
Note:- Investments in joint ventures, accounted using equity method, amounting to H649.53 crore (previous
year H826.01 crore) are not included in above tables.
33.2 Fair Value Measurements:
(a) Quantitative disclosures of fair value measurement hierarchy for financial assets and financial liabilities:
H in crore
Particulars As at March 31, 2021 As at March 31, 2020
Significant Significant Total Significant Significant Total
observable unobservable observable unobservable
Inputs Inputs Inputs Inputs
(Level 2) (Level 3) (Level 2) (Level 3)
Financial Assets
Investment in unquoted - 369.24 369.24 - 278.76 278.76
Equity Investments
measured at FVTOCI
(refer note 4)
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
H in crore
Particulars As at March 31, 2021 As at March 31, 2020
Significant Significant Total Significant Significant Total
observable unobservable observable unobservable
Inputs Inputs Inputs Inputs
(Level 2) (Level 3) (Level 2) (Level 3)
Investment in debt 71.59 - 71.59 61.34 - 61.34
instrument of joint
venture entity (refer note
4)
Investments in unquoted 212.74 - 212.74 11.89 - 11.89
Mutual Funds measured
at FVTPL (refer note 10)
Derivative Instruments 15.05 - 15.05 120.24 - 120.24
(refer note 7)
Total 299.38 369.24 668.62 193.47 278.76 472.23
Financial Liabilities - - - - - -
Investments in Unquoted Mutual Funds are valued based on declared NAV.
Derivative instruments are valued based on observable inputs i.e yield curves, FX rates and volatilities etc.
(b) Description of significant unobservable inputs to valuation:
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the
fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2021 and March 31, 2020
are as shown below:
Particulars Valuation Significant Range Sensitivity of the input
technique unobservable (weighted average) to fair value
inputs
FVTOCI DCF Method Weighted March 31, 2021 : 11.63% - 1% increase would
assets in Average Cost of 18.50% (15.07%) result in decrease in
unquoted Capital (WACC) March 31, 2020 : 12.99% - fair value by H6.02 crore
equity 18.50% (15.55%) as of March 31, 2021 (H
shares 13.70 crore as of March
31, 2020)
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
33.3 Financial Risk objective and policies tenure can vary from period to period depending
The Group’s principal financial liabilities, on market conditions and the relative costs of the
other than derivatives comprises of loans instruments. The tenure is linked to the timing
and borrowings, trade and other payables, of the underlying exposure with the connection
and financial guarantee contracts. The main between the two being regularly monitored.
purpose of these financial liabilities is to finance The Group is exposed to losses in the event of
the Group’s operations/projects and to provide non-performance by the counterparties to the
guarantees to support Group’s operations and derivative contracts. All derivative contracts
its joint venture entities. The Group’s principal are executed with counterparties that, in our
financial assets include loans, investments judgment, are creditworthy. The outstanding
including mutual funds, trade and other derivatives are reviewed periodically to ensure
receivables, and cash and cash equivalents that there is no inappropriate concentration of
which is derived from its operations. The Group outstanding to any particular counterparty.
also holds FVTOCI investments and enters into Further, all currency and interest risk as
derivative transactions. identified above is measured on a daily basis by
In the ordinary course of business, the Group is monitoring the mark to market (MTM) of open
mainly exposed to risks resulting from exchange and hedged position. The MTM is derived based
rate fluctuation (currency risk), interest rate on underlying market curves on closing basis
movements (interest rate risk) collectively of relevant instrument quoted on Bloomberg/
referred as Market Risk, Credit Risk, Liquidity Reuters. For quarter end, the MTM for each
Risk and other price risks such as equity price derivative instrument outstanding is obtained
risk. The Group’s senior management oversees from respective banks. All gain / loss arising from
the management of these risks. It manages MTM for open derivative contracts and gain /
its exposure to these risks through derivative loss on settlement / cancellation / roll over of
financial instruments by hedging transactions. derivative contracts is recorded in statement of
It uses derivative instruments such as cross profit and loss except to the extent of effective
currency swaps, full currency swaps, interest portion of instruments designated for hedge
rate swaps, foreign currency future options and accounting.
foreign currency forward contract to manage (A) Market risk
these risks. These derivative instruments
Market risk is the risk that the fair value of
reduces the impact of both favourable and
future cash flows of a financial instrument will
unfavourable fluctuations.
fluctuate because of changes in market prices.
The Group’s risk management activities are Market risk comprises three types of risk: interest
subject to the management, direction and rate risk, currency risk and other price risk,
control of Central Treasury Team of the Group such as equity price risk. Financial instruments
under the framework of Risk Management affected by market risk include loans and
Policy for Currency and Interest rate risk as borrowings, deposits, FVTOCI investments,
approved by the Board of Directors of the Group. short term investments and derivative financial
The Group’s Central Treasury Team ensures instruments.
appropriate financial risk governance framework
The sensitivity analysis in the following sections
for the Group through appropriate policies &
relate to the position as at March 31, 2021 and
procedures and financial risks are identified,
March 31, 2020.
measured and managed in accordance with
the Group’s policies and risk objectives. It is the The sensitivity analysis have been prepared on
Group’s policy that no trading in derivatives for the basis that the amount of net debt, the ratio
speculative purposes may be undertaken. of fixed to floating interest rates of the debt
and derivatives and the proportion of financial
The decision of whether and when to execute
instruments in foreign currencies are all constant
derivative financial instruments along with its
as at March 31, 2021. The analysis exclude the
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
impact of movements in market variables on increase by H17.68 crore (for the year ended
the carrying values of gratuity , other post- March 31, 2020 : decrease / increase by
retirement obligations and provisions. H25.74 crore). This is mainly attributable to
interest rates on variable rate of long term
The following assumptions have been made in
borrowings. The same has been calculated
calculating the sensitivity analysis:
based on risk exposure outstanding as on
- The sensitivity of the relevant profit or loss balance sheet date. The year end balances
item is the effect of the assumed changes in are not necessarily representative of average
respective market risks. This is based on the debt outstanding during the year.
financial assets and financial liabilities held
(ii) Foreign currency risk
at March 31, 2021 and March 31, 2020.
Exchange rate movements, particularly the
(i) Interest rate risk United States Dollar (USD), Japanese Yen
The Group is exposed to changes in market (JPY), Australian Dollar (AUD), Great Britain
interest rates due to financing, investing and Pound (GBP), Singapore Dollar (SGD) and
cash management activities. The Group’s Euro (EUR) against Indian Rupee (INR), have
exposure to the risk of changes in market an impact on the Group’s operating results.
interest rates relates primarily to the Group’s The Group manages its foreign currency risk
long-term debt obligations with floating by entering into currency swap for converting
interest rates and period of borrowings. The INR loan into other foreign currency for
Group manages its interest rate risk by having taking advantage of lower cost of borrowing
a balanced portfolio of fixed and variable in stable currency environment. The Group
rate loans and borrowings. The Group enters also enters into various foreign exchange
into interest rate swap contracts or interest contracts to mitigate the risk arising out of
rate future contracts to manage its exposure foreign exchange rate movement on foreign
to changes in the underlying benchmark currency borrowings or creditors. Further, to
interest rates. hedge foreign currency future transactions
in respect of which firm commitment are
Interest rate sensitivity
made or which are highly probable forecast
The sensitivity analysis below have been transactions (for instance, foreign exchange
determined based on the exposure to interest denominated income) the Group has entered
rates for both derivatives and non-derivative into foreign currency forward contracts as
instruments at the end of the reporting period. per the policy of the Group.
For floating rate liabilities, the analysis is
prepared assuming the amount of the liability The Group is mainly exposed to changes
outstanding at the end of the reporting period in USD, EURO, GBP, SGD, JPY and AUD. The
was outstanding for the whole year. A 50 below table demonstrates the sensitivity to
basis point increase or decrease represents a 1% increase or decrease in the respective
management’s assessment of the reasonably foreign currency rates against INR, with
possible change in interest rates. all other variables held constant. The
sensitivity analysis is prepared on the net
If interest rates had been 50 basis points unhedged exposure of the Company as at the
higher / lower and all other variables were reporting date. 1% represents management’s
held constant, the Group’s profit for the assessment of reasonably possible change in
year ended March 31, 2021 would decrease / foreign exchange rate.
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
H in crore
Particulars Impact on Profit before tax Impact on Pre-tax Equity
For the year ended For the year ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
USD Sensitivity
H/USD - Increase by 1% (227.54) (170.52) (227.54) (170.52)
H/USD - Decrease by 1% 227.54 170.52 227.54 170.52
EURO Sensitivity
H/EURO - Increase by 1% (5.89) (6.58) (5.89) (6.58)
H/EURO - Decrease by 1% 5.89 6.58 5.89 6.58
GBP Sensitivity
H/GBP - Increase by 1% -* -* -* -*
H/GBP - Decrease by 1% -* -* -* -*
SGD Sensitivity
H/SGD - Increase by 1% -* -* -* -*
H/SGD - Decrease by 1% -* -* -* -*
JPY Sensitivity
H/JPY- Increase by 1% (2.28) (0.61) (2.28) (0.61)
H/JPY - Decrease by 1% 2.28 0.61 2.28 0.61
AUD Sensitivity
H/AUD- Increase by 1% - 0.05 - 0.05
H/AUD - Decrease by 1% - (0.05) - (0.05)
-* Figures being nullified on conversion to H in crore
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
receivables are grouped into homogenous the group has long term cargo contracts.
groups and assessed for impairment collectively. Receivables from such customer constitute 51%
The calculation is based on exchange losses of total trade receivables (previous year 46%).
historical data. A loss of these customer could adversely affect
the operating result or cash flow of the Group.
Credit risk from balances with banks, financial
institutions and other counter parties is (C) Liquidity Risk
managed by the Company’s treasury department Liquidity risk is the risk that the Company
in accordance with the Company’s policy. will encounter difficulty in raising funds to
Investments of surplus funds are made only with meet commitments associated with financial
approved counterparties and within credit limits instruments that are settled by delivering cash
assigned to each counterparty. Counterparty or another financial asset. Liquidity risk may
credit limits are reviewed by the Company’s result from an inability to sell a financial asset
Board of Directors on an annual basis, and may quickly at close to its fair value.
be updated throughout the year subject to
approval of the Company’s Finance Committee. The Company has an established liquidity risk
The limits are set to minimise the concentration management framework for managing its short
of risks and therefore mitigate financial loss term, medium term and long term funding
through counterparty’s potential failure to make and liquidity management requirements. The
payments. The Group further mitigate credit Company’s exposure to liquidity risk arises
risk of counter parties by obtaining adequate primarily from mismatches of the maturities of
securities including undertaking from creditable financial assets and liabilities. The Company
parties. manages the liquidity risk by maintaining
adequate funds in cash and cash equivalents.
Corporate Guarantees given to banks and The Company also has adequate credit facilities
financial institutions against credit facilities agreed with banks to ensure that there is
availed by the joint venture entities H1,555.06 sufficient cash to meet all its normal operating
crore (Previous year H 774.76 crore) commitments in a timely and cost-effective
Concentrations of Credit Risk form part of manner.
Credit Risk The table below analyses derivative and non-
Considering that the group operates the port derivative financial liabilities of the Company
services and provide related infrastructure into relevant maturity groupings based on the
services, the group is significantly dependent on remaining period from the reporting date to
cargo from such large port user customer located the contractual maturity date. The amounts
at various ports. Out of total revenue, the Group disclosed in the table are the contractual
earns 17% revenue (previous year 15%) from such undiscounted cash flows.
customers and with some of these customers,
H in crore
Particulars Refer Less than 1 to 5 Over 5 Total Carrying
Note 1 year years years Value
As at March 31, 2021
Borrowings (including the bills 14,15,17 2,010.50 10,650.61 22,535.31 35,196.42 34,940.79
discounted)
Interest Payments 15 1,667.76 5,738.37 2860.57 10,266.70 572.65
Trade Payables 18 1,013.85 - - 1,013.85 1,013.85
Financial Guarantees given 15 3.09 6.36 - 9.45 9.45
Lease Liabilities 15 67.57 236.98 867.13 1,171.68 604.59
Other Financial Liabilities 15 1,689.38 130.76 - 1,820.14 1,820.14
Total 6,452.15 16,763.08 26,263.01 49,478.24 38,961.47
33 Financial Instruments, Fair Value Measurements, Financial Risk and Capital Management
(contd.)
H in crore
Particulars Refer Less than 1 to 5 Over 5 Total Carrying
Note 1 year years years Value
As at March 31, 2020
Borrowings (including the bills 14,15,17 3,907.35 13,085.91 13,297.09 30,290.35 30,075.79
discounted)
Interest Payments 15 1,414.01 4,149.28 1,997.47 7,560.76 360.93
Trade Payables 18 728.74 - - 728.74 728.74
Financial Guarantees given 15 1.65 3.33 - 4.98 4.98
Lease Liabilities 15 74.45 233.85 902.60 1,210.90 606.33
Other Financial Liabilities 15 1,255.18 105.76 - 1,360.94 1,360.94
Total 7,381.38 17,578.13 16,197.16 41,156.67 33,137.71
The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities
including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and
refinancing options available with the Group. The amounts included above for variable interest rate instruments
for nonderivative liabilities is subject to change if changes in variable interest rates differ to those estimates of
interest rates determined at the end of the reporting period.
33.4 Capital Management
For the purposes of the Group’s capital management, capital includes issued capital and all other equity
reserves. The primary objective of the Group’s capital management is to maximize shareholder value. The Group
manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants.
The Group monitors capital using gearing ratio, which is net debt (total debt less cash and bank balance &
Investments in Mutual Fund) divided by total capital plus net debt.
H In crore
Particulars March 31, 2021 March 31, 2020
Total Borrowings (refer note 14,15 and 17) (including the bills 34,940.79 30,075.79
discounted)
Less: Cash and bank balance & Investments in Mutual Fund (refer 5,002.94 7,332.65
note 10,11)
Net Debt (A) 29,937.85 22,743.14
Total Equity (B) 30,628.26 25,623.49
Total Equity and Net Debt (C = A + B) 60,566.11 48,366.63
Gearing ratio 49% 47%
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2021 and March 31, 2020.
b) Contract/ Commitment for purchase of certain supplies. Advance given H231.20 crore (previous year H356.95
crore).
c) The subsidiary companies have imported capital goods for its Container and Multipurpose Port Terminal
Project under the EPCG Scheme at concessional rate of custom duty by undertaking obligation to export.
Future outstanding export obligation under the scheme is H1,144.57 crore (previous year H1,025.26 crore)
which is equivalent to 6 to 8 times of duty saved H186.93 crore ( previous year H167.04 crore) . The export
obligation has to be completed by 2021-22 to 2026-27.
d) One of the subsidiary company Adani Hazira Port Limited (“AHPL”) has entered into agreement in financial year
2013-14 to acquire land measuring 85,553 square meter in the Hazira region and an advance consideration
of H18.23 crore paid towards the land has been classified as capital advance. The AHPL has entered into
agreement to acquire additional land measuring 933 acre in the Patan and Hazira region and an advance
consideration of H36.68 crore paid towards the land classified as capital advance respectively. As at March
31, 2021, the AHPL does not have physical possession of the said land, although it has contractual right
in the said land parcels. The management represent that land area and location are identifiable and the
transaction will be concluded on receiving necessary government approvals.
e) As a part of Environmental Clearance obtained by the Vizhinjam International Sea Port Limited (VISL or
‘the Authority’), the AVPPL has been obliged to incur expenditure of H33.70 crore towards ‘Corporate Social
Responsibility’ along with development of Port Infrastructure under Phase - I and the same is included
under the total Project cost. Out of total commitment of H33.70 crore, the AVPPL has incurred H14.46 crore
till March 31, 2021.
q During the previous Financial Year, an Amnesty Scheme, Sabka Vishwas Legacy Dispute Resolution
Scheme has been introduced by the Central Government to settle pending litigations under Central
Excise & Service Tax Law. Any Tax amount payable under the Scheme is required to be paid by cash and
cannot be paid by utilizing the ITC balance and litigations once settled under this Scheme shall never
be reopened from either side. The Group had opted for the said scheme and accordingly the Group has
settled pending litigations amounting to H112.69 crore in previous year (including SCNs received in the
previous year H22.80 crore).
r Matter of one of the acquired subsidiary company pending with Central Warehousing Corporation
amounting to H10.14 crore in respect of which previous promoter has agreed to indemnify the Group in
case of any liability arises out the same.
s During the year ended on March 31, 2021, Adani Ennore Container Terminal Limited (”AECTPL”) has
received notice from Kamarajar Port Limited (“KPL”) relating to delay in completion of a milestone of Phase
II, levying liquidated damages of H29.60 crore. AECTPL sought for injunction from Hon’ble High Court of
Madras and per its direction, initiated arbitration and deposited H10 crore without prejudice and subject
to outcome of mediation and other such remedies available in the concession agreement. The matter is
under arbitration and both parties have appointed arbitrators as well as the presiding arbitrator as referred
by the Hon’ble High Court of Madras. The management is confident that there should be no such levy and
has contested the same attributing the delay in Phase II commencement were due to reasons beyond
control of the Company including but not limited to delays in Phase I Project (including Force Majeure
events of Cyclone Vardha), delay by the Concessioning Authority in appointing an Independent Engineer
for Phase II Project, allocation of land, issuance of Phase I completion certificate, etc. Considering above,
no provision of the liquidated damages claimed by KPL has been considered necessary at this stage. Both
the parties have filed the claim with arbitrators and the matter is sub judice.
t During the year, the group has received notice from one of the port trust authority, relating to royalty on
deemed storage income for H41.40 crore. The Group is in the process of requesting to extend the relief
of rationalised tariff retrospectively, available under guidelines issued by Ministry of Shipping dated July
11, 2018. The Group has paid an amount of H18.67 crore and provided the same in books on prudent basis
and doesn’t anticipate any further outflow.
H In crore
Particulars Adani NYK Auto Adani Total Private
Logistics Solutions Limited (Consolidated)
Private Limited
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Share Capital and Other Equity 4.07 5.17 693.02 669.00
Non-current Liabilities 22.74 11.55 2,837.61 1,387.79
Current Liabilities 5.27 4.13 336.36 190.97
Non-current Assets 27.96 15.63 3,517.02 2,073.82
Current Assets 4.12 5.22 349.97 173.94
H In crore
Particulars Adani NYK Auto Adani Total Private
Logistics Solutions Limited (Consolidated)
Private Limited
March 31, March 31, March 31, March 31,
2021 2020 2021 2020
Net assets of joint venture entities 4.07 5.17 693.02 669.00
Proportion of Group's share 51% 51% 50% 50%
Group's share 2.08 2.64 346.51 334.50
Fair valuation adjustment - - 300.89 293.89
Elimination from intra-group transactions/adjustments - - - 3.83
Carrying amount of Group's interest (refer note 4(a)) 2.08 2.64 647.40 632.22
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013
H In crore
Name of entity As at and for the year ended March 31, 2021
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Parent Company
Adani Ports and Special 43.15% 21,801.28 36.51% 1,927.93 -15.23% 8.18 37.05% 1,936.11
Economic Zone Limited
Subsidiary Companies
Indian
The Adani Harbour 9.31% 4,706.13 25.95% 1,370.24 -0.08% 0.04 26.22% 1,370.29
Services Limited
Adani Hazira Port 7.04% 3,554.72 15.20% 802.42 -0.32% 0.17 15.36% 802.60
Limited
Adani Logistics Limited 12.12% 6,123.07 2.10% 110.66 38.08% (20.45) 1.73% 90.22
The Dhamra Port 10.48% 5,293.65 7.43% 392.32 -0.12% 0.06 7.51% 392.38
Company Limited
Adani Petronet (Dahej) 1.90% 960.59 1.64% 86.81 2.92% (1.57) 1.63% 85.24
Port Private Limited
Shanti Sagar 1.68% 849.93 9.27% 489.47 0.09% (0.05) 9.36% 489.42
International Dredging
Limited
Adani Murmugao Port -0.51% (259.85) -0.76% (39.89) -0.07% 0.04 -0.76% (39.85)
Terminal Private Limited
Adani Vizag Coal -0.51% (256.45) -0.73% (38.32) -0.03% 0.01 -0.73% (38.31)
Terminal Private Limited
Adani Warehousing 0.01% 3.19 -0.02% (1.27) 0.00% - -0.02% (1.27)
Services Private Limited
Adani Hospitals Mundra 0.01% 3.30 -0.01% (0.73) -0.03% 0.02 -0.01% (0.72)
Private Limited
Mundra International 0.01% 3.97 -0.03% (1.56) 0.00% - -0.03% (1.56)
Airport Private Limited
Mundra Sez Textile And -0.06% (32.16) -0.07% (3.79) 0.00% - -0.07% (3.79)
Apparel Park Private
Limited
Adinath Polyfills Private 0.00% (1.51) 0.00% (0.08) 0.00% - 0.00% (0.08)
Limited
MPSEZ Utilities Limited 0.24% 119.88 0.43% 22.90 -0.03% 0.02 0.44% 22.92
Adani Ennore Container 0.75% 377.06 -1.04% (55.04) 0.07% (0.03) -1.05% (55.08)
Terminal Private Limited
Adani Vizhinjam Port 1.72% 866.55 -0.15% (8.01) 0.00% - -0.15% (8.01)
Private Limited
Adani Kattupalli Port 0.05% 22.79 0.03% 1.72 0.00% - 0.03% 1.72
Limited
Karnavati Aviation 0.36% 179.44 0.13% 6.77 0.00% -* 0.13% 6.77
Private Limited
Hazira Infrastructure 0.05% 26.57 0.01% 0.68 0.00% - 0.01% 0.68
Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.)
H In crore
Name of entity As at and for the year ended March 31, 2021
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Mundra International 0.00% 0.03 0.00% -* 0.00% - 0.00% -*
Gateway Terminal
Private Limited
Mundra Crude Oil 0.00% 0.04 0.00% -* 0.00% - 0.00% -*
Terminal Private Limited
Marine Infrastructure 4.08% 2,061.99 0.80% 42.05 0.56% (0.30) 0.80% 41.75
Developer Private
Limited
Blue Star Realtors 0.48% 240.66 0.00% (0.20) 0.00% - 0.00% (0.20)
Private Limited
Madurai Infrastructure 0.45% 228.70 0.00% 0.01 0.00% - 0.00% 0.01
Private Limited
Dholera Port And -0.01% (3.38) -0.01% (0.30) 0.00% - -0.01% (0.30)
Special Economic Zone
Limited
Adani Kandla Bulk -0.55% (279.80) -1.48% (78.26) -0.03% 0.02 -1.50% (78.24)
Terminal Private Limited
Dholera Infrastructure -0.01% (4.06) -0.01% (0.35) 0.00% - -0.01% (0.35)
Private Limited
Adani Agri Logistics 1.00% 505.83 -0.05% (2.84) -0.14% 0.08 -0.05% (2.76)
Limited
Adani Agri Logistics 0.00% 0.18 0.00% (0.17) 0.00% -* 0.00% (0.17)
(MP) Limited
Adani Agri Logistics 0.00% 1.54 0.00% 0.15 0.00% -* 0.00% 0.15
(Harda) Limited
Adani Agri Logistics 0.00% 1.40 0.01% 0.35 0.00% -* 0.01% 0.35
(Hoshangabad) Limited
Adani Agri Logistics 0.00% 1.04 0.00% -* 0.00% -* 0.00% -*
(Satna) Limited
Adani Agri Logistics 0.01% 4.02 0.00% 0.22 -0.02% 0.01 0.00% 0.23
(Ujjain) Limited
Adani Agri Logistics 0.01% 3.11 0.01% 0.51 0.00% -* 0.01% 0.51
(Dewas) Limited
Adani Agri Logistics -0.01% (3.73) -0.06% (3.01) 0.00% - -0.06% (3.01)
(Katihar) Limited
Adani Agri Logistics 0.01% 3.49 0.01% 0.35 0.00% -* 0.01% 0.35
(Kotkapura) Limited
Adani Agri Logistics 0.07% 36.70 0.00% (0.01) 0.00% - 0.00% (0.01)
(Kannauj) Limited
Adani Agri Logistics 0.00% (0.48) -0.01% (0.64) 0.00% - -0.01% (0.64)
(Panipat) Limited
Adani Agri Logistics 0.01% 6.66 0.00% (0.08) 0.00% - 0.00% (0.08)
(Moga) Limited
Adani Agri Logistics 0.01% 3.86 0.00% (0.04) 0.00% - 0.00% (0.04)
(Mansa) Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.)
H In crore
Name of entity As at and for the year ended March 31, 2021
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Adani Agri Logistics 0.00% 0.05 -0.02% (1.04) 0.00% - -0.02% (1.04)
(Bathinda) Limited
Adani Agri Logistics 0.02% 7.71 0.00% (0.06) 0.00% - 0.00% (0.06)
(Barnala) Limited
Adani Agri Logistics 0.01% 6.23 0.00% (0.04) 0.00% - 0.00% (0.04)
(Nakodar) Limited
Adani Agri Logistics 0.01% 5.16 0.00% (0.10) 0.00% - 0.00% (0.10)
(Raman) Limited
Adani Agri Logistics 0.00% (0.02) -0.05% (2.72) 0.00% - -0.05% (2.72)
(Dahod) Limited
Adani Agri Logistics 0.00% (0.01) 0.00% (0.17) 0.00% - 0.00% (0.17)
(Borivali) Limited
Adani Agri Logistics 0.01% 5.67 0.00% (0.04) 0.00% - 0.00% (0.04)
(Dhamora) Limited
Adani Agri Logistics 0.00% (0.03) -0.01% (0.29) 0.00% - -0.01% (0.29)
(Samastipur) Limited
Adani Agri Logistics 0.00% (0.13) -0.01% (0.45) 0.00% - -0.01% (0.45)
(Darbhanga) Limited
Dermot Infracon Private 0.27% 135.93 0.00% (0.18) 0.00% - 0.00% (0.18)
Limited
Dhamra Infrastructure 0.06% 29.84 0.00% (0.07) 0.00% - 0.00% (0.07)
Private Limited
Adani Tracks 0.00% 0.05 0.00% -* 0.00% - 0.00% -*
Management Services
Private Limited
Adani Logistics Services 0.60% 303.13 1.02% 53.98 -0.08% 0.04 1.03% 54.02
Private Limited
Adani Noble Private 0.04% 19.16 0.00% (0.13) 0.00% - 0.00% (0.13)
Limited
Adani Forwarding Agent 0.00% -* 0.00% (0.01) 0.00% - 0.00% (0.01)
Private Limited
Adani Cargo Logistics 0.00% 1.16 0.00% (0.01) 0.00% - 0.00% (0.01)
Private Limited
Adani Logistics 0.00% 1.14 0.00% (0.01) 0.00% - 0.00% (0.01)
Infrastructure Private
Limited
Adani Pipelines Private 0.00% 0.04 0.00% -* 0.00% - 0.00% -*
Limited
Adani Krishnapatnam 4.19% 2,118.01 0.06% 3.23 80.10% (43.02) -0.76% (39.79)
Port Limited*
Adani Krishnapatnam 0.03% 13.73 0.10% 5.33 -0.26% 0.14 0.10% 5.47
Container Terminal
Private Limited*
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.)
H In crore
Name of entity As at and for the year ended March 31, 2021
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Adani KP 0.04% 18.77 -0.02% (0.88) 0.00% - -0.02% (0.88)
Agriwarehousing Private
Limited*
Dighi Port Limited* 0.11% 57.59 -0.22% (11.73) 0.00% - -0.22% (11.73)
Sulochana Pedestal 0.79% 398.87 0.00% - 0.00% - 0.00% -
Private Limited*
NRC Limited* -0.32% (161.44) 0.00% - 0.00% - 0.00% -
Shankheshwar Buildwell 0.53% 269.26 0.00% - 0.00% - 0.00% -
Private Limited*
Aqua Desilting Private 0.00% - 0.00% - 0.00% - 0.00% -
Limited#
Foreign
Abbot Point 0.18% 88.43 0.45% 23.88 0.00% - 0.46% 23.88
Operations Pty Limited
(Consolidated)
Adani Mundra Port Pte. 0.00% (0.09) 0.00% (0.03) 0.00% - 0.00% (0.03)
Limited
Adani Abbot Port Pte. 0.00% (0.09) 0.00% (0.03) 0.00% - 0.00% (0.03)
Limited
Adani International -0.09% (43.98) -0.53% (28.19) 0.00% - -0.54% (28.19)
Terminals Pte Limited
Adani Mundra Port -0.01% (4.33) -0.08% (4.35) 0.00% - -0.08% (4.35)
Holding Pte Limited
Adani Bangladesh Ports 0.00% 0.74 0.01% 0.30 0.00% - 0.01% 0.30
Private Limited
Adani Yangon 0.93% 468.31 0.00% - 0.00% - 0.00% -
International Terminal
Company Limited
Bowen Rail Operations 0.00% (0.03) 0.00% (0.06) 0.00% - 0.00% (0.06)
Pte Limited
Bowen Rail Company 0.01% 6.27 0.11% 5.97 0.00% - 0.11% 5.97
Pty Limited
Adani Logistics 0.00% 0.02 0.00% (0.01) 0.00% - 0.00% (0.01)
International Pte
Limited#
Non-controlling interest -2.91% (1,468.47) -1.03% (54.44) -0.82% 0.44 -1.03% (54.00)
Joint Venture Entities
Indian
Adani International 0.56% 283.61 3.90% 205.70 -0.09% 0.05 3.94% 205.75
Container Terminal
Private Limited
Adani CMA Mundra 0.00% (1.00) 1.51% 79.64 -0.06% 0.03 1.52% 79.67
Terminal Private Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.)
H In crore
Name of entity As at and for the year ended March 31, 2021
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Adani NYK Auto 0.00% 2.08 -0.01% (0.56) 0.00% - -0.01% (0.56)
Logistics Solutions
Private Limited
Adani Total Private 0.74% 373.40 -0.19% (10.28) -0.04% 0.02 -0.20% (10.26)
Limited
Dhamra LNG Terminal 0.87% 441.00 -0.04% (2.05) -4.38% 2.35 0.01% 0.30
Private Limited
Total Adani Fuels 0.00% (1.18) -0.02% (1.18) 0.00% - -0.02% (1.18)
Marketing Private
Limited
Dighi Roha Rail Limited* 0.00% (0.42) 0.00% - 0.00% - 0.00% -
Associate Entity
Indian
Snowman Logistics 0.00% - 0.00% - 0.00% - 0.00% -
Limited (refer note
38(iii))
Sub total 100% 50,524.49 100% 5,279.89 100% (53.70) 100% 5,226.19
CFS Adjustments and (19,896.23) (285.59) 38.22 (247.37)
Eliminations
Total 100% 30,628.26 100% 4,994.30 100% (15.48) 100% 4,978.82
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.) H In crore
Name of entity As at and for the year ended March 31, 2020
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Parent Company
Adani Ports and Special 52.13% 19,865.17 47.16% 1,934.25 -81.25% 11.31 47.60% 1,945.56
Economic Zone Limited
Subsidiary Companies
Indian
The Adani Harbour 8.75% 3,335.84 33.99% 1,394.20 0.22% (0.03) 34.11% 1,394.17
Services Limited
Adani Hazira Port 7.22% 2,752.13 16.92% 693.91 3.30% (0.46) 16.96% 693.45
Limited
Adani Logistics Limited 11.11% 4,232.56 2.92% 119.94 -0.50% 0.07 2.94% 120.01
The Dhamra Port 6.41% 2,444.27 6.67% 273.67 1.65% (0.23) 6.69% 273.44
Company Limited
Adani Petronet (Dahej) 2.30% 875.35 1.89% 77.72 12.72% (1.77) 1.86% 75.95
Port Private Limited
Shanti Sagar 0.95% 360.51 0.93% 38.34 0.07% (0.01) 0.94% 38.33
International Dredging
Limited
Adani Murmugao Port -0.58% (220.00) -2.34% (96.13) 0.22% (0.03) -2.35% (96.16)
Terminal Private Limited
Adani Vizag Coal -0.57% (218.15) -1.06% (43.59) 0.00% -* -1.07% (43.59)
Terminal Private Limited
Adani Warehousing 0.01% 4.46 -0.02% (0.86) 0.00% - -0.02% (0.86)
Services Private Limited
Adani Hospitals Mundra 0.01% 3.99 -0.02% (0.64) -0.07% 0.01 -0.02% (0.63)
Private Limited
Mundra International 0.01% 5.52 -0.02% (0.82) 0.00% - -0.02% (0.82)
Airport Private Limited
Mundra Sez Textile And -0.07% (28.37) -0.10% (4.17) 0.00% - -0.10% (4.17)
Apparel Park Private
Limited
Adinath Polyfills Private 0.00% (1.43) 0.00% (0.08) 0.00% - 0.00% (0.08)
Limited
MPSEZ Utilities Limited 0.25% 96.96 0.26% 10.69 0.22% (0.03) 0.26% 10.66
Adani Ennore Container -0.18% (67.86) -2.98% (122.42) 0.43% (0.06) -3.00% (122.48)
Terminal Private Limited
Adani Vizhinjam Port 0.47% 177.52 -0.34% (13.85) 0.00% - -0.34% (13.85)
Private Limited
Adani Kattupalli Port 0.06% 21.06 0.07% 2.73 0.00% - 0.07% 2.73
Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.) H In crore
Name of entity As at and for the year ended March 31, 2020
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Karnavati Aviation 0.45% 172.66 -0.23% (9.56) 0.65% (0.09) -0.24% (9.65)
Private Limited
Hazira Infrastructure 0.07% 25.89 0.02% 0.79 0.00% - 0.02% 0.79
Limited
Mundra International 0.00% 0.03 0.00% (0.01) 0.00% - 0.00% (0.01)
Gateway Terminal
Private Limited
Mundra Crude Oil 0.00% 0.04 0.00% (0.01) 0.00% - 0.00% (0.01)
Terminal Private Limited
Marine Infrastructure 5.30% 2,020.25 2.30% 94.39 0.65% (0.09) 2.31% 94.30
Developer Private
Limited
Blue Star Realtors 0.63% 240.77 -0.07% (2.77) 0.00% - -0.07% (2.77)
Private Limited
Madurai Infrastructure 0.60% 228.70 -0.13% (5.21) 0.00% - -0.13% (5.21)
Private Limited
Dholera Port And -0.01% (3.09) -0.01% (0.27) 0.00% - -0.01% (0.27)
Special Economic Zone
Limited
Adani Kandla Bulk -1.19% (451.55) -3.08% (126.24) 0.57% (0.08) -3.09% (126.32)
Terminal Private Limited
Dholera Infrastructure -0.01% (3.71) -0.01% (0.32) 0.00% - -0.01% (0.32)
Private Limited
Adani Agri Logistics 1.31% 499.19 0.56% 23.06 1.51% (0.21) 0.56% 22.85
Limited
Adani Agri Logistics 0.00% 0.35 -0.02% (0.79) 0.07% (0.01) -0.02% (0.80)
(MP) Limited
Adani Agri Logistics 0.00% 1.39 0.00% (0.04) 0.00% -* 0.00% (0.04)
(Harda) Limited
Adani Agri Logistics 0.00% 1.04 -0.01% (0.57) 0.00% -* -0.01% (0.57)
(Hoshangabad) Limited
Adani Agri Logistics 0.00% 1.04 0.00% (0.08) 0.07% (0.01) 0.00% (0.09)
(Satna) Limited
Adani Agri Logistics 0.01% 3.79 -0.01% (0.30) 0.07% (0.01) -0.01% (0.31)
(Ujjain) Limited
Adani Agri Logistics 0.01% 2.60 -0.01% (0.34) 0.00% -* -0.01% (0.34)
(Dewas) Limited
Adani Agri Logistics 0.04% 13.76 -0.03% (1.30) 0.00% - -0.03% (1.30)
(Katihar) Limited
Adani Agri Logistics 0.01% 3.13 0.00% (0.15) 0.07% (0.01) 0.00% (0.16)
(Kotkapura) Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.) H In crore
Name of entity As at and for the year ended March 31, 2020
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Adani Agri Logistics 0.09% 35.90 0.00% (0.01) 0.00% - 0.00% (0.01)
(Kannauj) Limited
Adani Agri Logistics 0.13% 50.76 0.00% (0.01) 0.00% - 0.00% (0.01)
(Panipat) Limited
Adani Agri Logistics 0.03% 9.64 0.00% (0.09) 0.00% - 0.00% (0.09)
(Moga) Limited
Adani Agri Logistics 0.02% 6.81 0.00% (0.01) 0.00% - 0.00% (0.01)
(Mansa) Limited
Adani Agri Logistics 0.01% 4.00 0.00% 0.02 0.00% - 0.00% 0.02
(Bathinda) Limited
Adani Agri Logistics 0.03% 10.68 0.00% (0.08) 0.00% - 0.00% (0.08)
(Barnala) Limited
Adani Agri Logistics 0.02% 9.22 0.00% (0.05) 0.00% - 0.00% (0.05)
(Nakodar) Limited
Adani Agri Logistics 0.02% 8.26 0.00% (0.04) 0.00% - 0.00% (0.04)
(Raman) Limited
Adani Agri Logistics 0.00% 0.38 0.00% (0.01) 0.00% - 0.00% (0.01)
(Dahod) Limited
Adani Agri Logistics 0.00% 0.24 0.00% (0.01) 0.00% - 0.00% (0.01)
(Borivali) Limited
Adani Agri Logistics 0.00% 0.24 0.00% (0.01) 0.00% - 0.00% (0.01)
(Dhamora) Limited
Adani Agri Logistics 0.04% 13.39 0.00% 0.02 0.00% - 0.00% 0.02
(Samastipur) Limited
Adani Agri Logistics 0.07% 26.02 0.00% (0.01) 0.00% - 0.00% (0.01)
(Darbhanga) Limited
Dermot Infracon Private 0.36% 135.94 0.00% (0.15) 0.00% - 0.00% (0.15)
Limited
Dhamra Infrastructure 0.08% 29.77 0.00% (0.05) 0.00% - 0.00% (0.05)
Private Limited
Adani Tracks 0.00% 0.05 0.00% -* 0.00% - 0.00% -*
Management Services
Private Limited
Adani Logistics Services 0.65% 249.12 0.35% 14.55 1.65% (0.23) 0.35% 14.32
Private Limited
Adani Noble Private. -0.03% (10.84) 0.01% 0.48 0.00% - 0.01% 0.48
Limited
Adani Forwarding Agent 0.00% (0.02) 0.00% (0.01) 0.00% - 0.00% (0.01)
Private Limited
Adani Cargo Logistics 0.00% 0.92 0.00% (0.01) 0.00% - 0.00% (0.01)
Private Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.) H In crore
Name of entity As at and for the year ended March 31, 2020
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Adani Logistics 0.00% 0.91 0.00% (0.01) 0.00% - 0.00% (0.01)
Infrastructure Private
Limited
Adani Pipelines Private 0.00% 0.05 0.00% -* 0.00% - 0.00% -*
Limited
Adani Total Private 0.00% - 0.83% 34.11 0.00% - 0.83% 34.11
Limited (subsidiary till
December 31, 2019)
Dhamra LNG Terminal 0.00% - 0.00% (0.16) 72.63% (10.11) -0.25% (10.27)
Private Limited
(subsidiary till December
31, 2019)
Total Adani Fuels 0.00% - 0.00% - 0.00% - 0.00% -
Marketing Private
Limited (subsidiary till
December 31, 2019)
Foreign
Abbot Point Operations -0.01% (3.34) 0.16% 6.36 0.00% - 0.16% 6.36
Pty Limited
Abbot Point Bulkcoal 0.18% 68.87 0.95% 38.77 0.00% - 0.95% 38.77
Pty Limited
Adani Mundra Port Pte. 0.00% (0.06) 0.00% (0.04) 0.00% - 0.00% (0.04)
Limited
Adani Abbot Port Pte. 0.00% (0.06) 0.00% (0.04) 0.00% - 0.00% (0.04)
Limited
Adani International -0.04% (14.21) -0.30% (12.13) 0.00% - -0.30% (12.13)
Terminals Pte Limited
Adani Mundra Port 0.00% (0.04) 0.00% (0.05) 0.00% - 0.00% (0.05)
Holding Pte Limited
Adani Bangladesh Ports 0.00% 0.46 0.00% - 0.00% - 0.00% -
Private Limited
Adani Yangon 1.30% 495.06 0.00% - 0.00% - 0.00% -
International Terminal
Company Limited
Bowen Rail Operations 0.00% 0.02 0.00% (0.02) 0.00% - 0.00% (0.02)
Pte Limited
Bowen Rail Company 0.00% 0.01 0.00% - 0.00% - 0.00% -
Pty Limited
40 Additional information of net assets and share in profit or loss contributed by various
entities as recognised under Schedule III of the Companies Act, 2013 (contd.) H In crore
Name of entity As at and for the year ended March 31, 2020
Net Assets i.e total assets Share in Profit or Loss Share in Other Share in Total
minus total liabilities Comprehensive Income Comprehensive Income
as % of Amount as % of Amount as % of Amount as % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets Profit or Loss Other Total
Comprehensive Comprehensive
Income Income
Non-controlling interest -0.58% (219.59) -0.52% (21.40) -3.16% 0.44 -0.51% (20.96)
Joint Venture Entities
Indian
Adani International 0.20% 77.86 -3.37% (138.06) 0.72% (0.10) -3.38% (138.16)
Container Terminal
Private Limited
Adani CMA Mundra -0.21% (80.67) -1.20% (49.13) 0.43% (0.06) -1.20% (49.19)
Terminal Private Limited
Adani NYK Auto 0.01% 2.64 -0.01% (0.36) 0.00% - -0.01% (0.36)
Logistics Solutions
Private Limited
Adani Total Private 0.97% 369.34 -0.09% (3.56) 0.00% - -0.09% (3.56)
Limited
Dhamra LNG Terminal 1.13% 431.87 -0.01% (0.41) 87.07% (12.12) -0.31% (12.53)
Private Limited
Total Adani Fuels 0.00% 0.02 0.00% -* 0.00% - 0.00% -
Marketing Private
Limited
Sub total 100% 38,105.43 100% 4,101.56 100% (13.92) 100% 4,087.64
CFS Adjustments and (12,481.94) (338.43) 50.98 (287.45)
Eliminations
Total 100% 25,623.49 100% 3,763.13 100% 37.06 100% 3,800.19
41 The Company had entered into preliminary 43 The management has carried out detailed cash
agreement dated September 30, 2014 with a party flow projections over the period of the concession
for development and maintenance of Liquefied agreement in determining the recoverable
Natural Gas (“LNG”) terminal infrastructure value of the Property, Plant and Equipment
facilities at Mundra (“the LNG Project”). and Intangible Assets comprising of service
concession rights in accordance with Ind AS 36,
During the previous year ended March 31, 2020,
Impairment of Assets in case of Adani Kandla Bulk
due to the disputes between the Company and
Terminal Private Limited (“AKBTPL”) amounting to
Customer with respect to construction, operation
H737.02 crore and Adani Murmugao Port Terminal
and maintenance of the LNG Project, Interim
Private Limited (“AMPTPL”) amounting to H305.60
Settlement and Arbitration Agreement dated
crore. AKBTPL has received relaxation in the form
December 24, 2019 was executed. Pursuant
of rationalisation on revenue share on storage
thereto, H666 crore has been received and
income from the authorities in accordance with
arbitration has been invoked by the Company. On
guidelines from Ministry of Shipping (“MoS”).
July 08, 2020, the Company has filed its claim
AMPTPL has received relief in terms of rationalised
before Arbitral Tribunal. On October 07, 2020,
tariff on storage charges from authorities for
the customer has also filed counter claim before
financial year 2019-20. In developing cash flow
Arbitral Tribunal. Pending further developments,
projections, the management has considered
no revenue or expenses have been recorded till
the benefit arising from the relaxation received
March 31, 2021.
/ expected to be received from the authorities
in form of rationalisation of revenue share from
42 a) Adani Vizag Coal Terminal Private Limited storage income in accordance with guidelines
(“AVCTPL”), a subsidiary of the Company is
issued by Ministry Of Shipping in Financial
engaged in Port services under concession
Year 2019-20. The Management has made
from one of the port trust authorities of
various estimates relating to cargo traffic, port
the Government of India. During the year,
tariffs, inflation, discount rates, revenue share,
on October 03, 2020, AVCTPL had received
COVID-19 impact on income etc. which are
the consultation notice for shortfall in
reasonable over the entire concession period.
Minimum Guarantee Cargo (MGC) from
On a careful evaluation of the aforesaid factors,
Visakhapatnam Port Trust (“VPT”). In
the Management of the Company has concluded
response to the said letter, AVCTPL contested
that the recoverable amount of Property, Plant
the said consultation notice on the grounds
and Equipment and Intangible Assets is higher
that the consultation notice is not valid since
than their carrying amounts as at March 31, 2021.
notified force majeure event due to COVID-19
Hence, no provision for impairment is considered
pandemic was still under continuances. Also
necessary at this stage. The eventual outcome
since the force majeure event has exceeded
of the impact of the global health pandemic as
120 days, AVCTPL has initiated termination
well as the actual cargo traffic and port tariffs,
on mutual consent as per right under the
considering the long period, may be different
concession agreement. VPT has also issued
from those estimated as on the date of approval
the counter termination and the matter is
of these financial statements.
under arbitration.
(b) During the previous year, Adani Murmugao 44 During the previous year, on fulfilment of condition
Port Terminal Private Limited (“AMPTPL”) had precedent of the agreement dated April 29, 2019
provided H58.63 crore as provision for revenue between Total Holdings SAS and the Group; the
share on deemed storage income based on Group has recorded fair value gain of H434.30
our best estimates, pending conclusion of crore, arising from infrastructure development
AMPTPL’s arbitration with Murmugao Port of Port and LNG infrastructure at Dhamra, from
Trust (”MPT”) for recovery of revenue share on erstwhile subsidiary Dhamra LNG Terminal Private
deemed storage income. The same is shown Limited.
under exceptional item in the previous year
ended March 31, 2020.
Notes:
The goodwill is tested for impairment annually and as at March 31, 2021, the goodwill was not impaired.
The recoverable amounts of the CGUs are determined from value-in-use calculations. The key assumptions
for the value-in-use calculations are those regarding the discount rates, growth rates and expected changes
to direct costs during the year. Management estimates discount rates using pre-tax rates that reflect current
market assessments of the time value of money. The growth rates are based on management’s forecasts.
Changes in selling prices and direct costs are based on past practices and expectations of future changes in
the market.
The Group prepares its forecasts based on the most recent financial budgets approved by management with
projected revenue growth rates ranging from 5% to 20%.
The rates used to discount the forecasts is 9% to 13.5%.p.a.
Management believes that any reasonable possible change in any of these assumptions would not cause the
carrying amount H4,036.43 crore (net of DTL H3,257.97 crore) to exceed its recoverable amount.
46 Adani Vizhinjam Port Private Limited (“AVPPL”) which has to be agreed with authorities and
was awarded Concession Agreement (“CA”) during the year, AVPPL received acknowledgment
dated August 17, 2015 by Government of Kerala on achievement of Milestone III as per the terms
for development of Vizhinjam International of the CA from the Authorities on November 30,
Deepwater Multipurpose Seaport (“Project”). 2020. The Ministry of Environment & Forests
In terms of the CA the scheduled Commercial (MoEF) has also extended validity of the
Operation Date (“COD”) of the Project was Environmental Clearance from January 2019
December 03, 2019 extendable to August 30, 2020 to January 2024 on the proposal of VISL. As
with certain conditions. As at reporting date, the per management commitment to develop the
Project development is still in progress although project, on February 02, 2021, AVPPL has availed
COD date is past due in terms of CA. During the additional Equity Funding of H697.04 crore from
current year and earlier years, AVPPL has made Adani Ports and Special Economic Zone Limited
several representations to Vizhinjam International (“APSEZ”) to meet the requirement of Equity
Sea Port Limited (“VISL”, the Implementing Agency Funding as per the Approved Financial Package
on behalf of the Government) and Department of and on February 08, 2021 AVPPL has also availed
Ports, Government of Kerala in respect difficulties term loan disbursement from Bank of H500 crore
faced by AVPPL including reasons attributable to for funding for the Project development. Based
the government authorities and Force Majeure on the above developments and on the basis
events such as Ockhi Cyclone, High Waves, of favorable legal opinion from the external
National Green Tribunal Order and COVID 19 legal counsel in respect of likely outcome of
pandemic etc. which led to delay in development the arbitration proceedings, the management
of the project and AVPPL not achieving COD. believes there will not be any significant financial
impact of the disputes which is required to be
Considering the above reasons and authorities’ considered in the financial statements for the
rights to terminate the CA on completion of year ended March 31, 2021.
extendable COD date, AVPPL issued a Notice of
Disputes to Secretary and Principle Secretary of 47 Pursuant to BOO agreement with Food Corporation
Ports, Government of Kerala under Clause 45.1 of India (FCI), the subsidiary company Adani Agri
of the CA on July 26, 2020 followed by a Notice Logistics Limited (“AALL”) developed a Field Depot
of Conciliation on August 04, 2020 under Clause at Bandel, District Hooghly in the state of West
45.2 of the CA. On November 07, 2020, AVPPL Bengal (“Hooghly depot”) with storage capacity of
issued a Notice of Arbitration in terms of Clause 25,000 MT. For this purpose, AALL had entered
45.3 of the CA which led to commencement of the into a lease agreement for land with Eastern
arbitration proceedings through appointment of Railways. The land was taken on lease from
the nominee arbitrator on behalf of the Authorities Eastern Railway for an initial period of four years
and presiding arbitrator respectively on the with the anticipation that it would be renewed
matter w.e.f. February 05, 2021 and February 25, periodically. The AALL constructed warehousing
2021 respectively. The first procedural hearing on facility (‘Silos’) along with Railway Siding on
the arbitration matters held on March 13, 2021 this leasehold land and started movement and
wherein terms of arbitration and course of action distribution of food grains on behalf of FCI at this
has been discussed and agreed between the location.
parties and the matter is presently sub judice.
After completion of four years of lease agreement,
As at reporting date, pending resolution of the AALL approached Eastern Railways for
disputes with the VISL authorities and arbitration renewal of lease period. In the meantime, Eastern
proceedings in progress, the Government Railway kept on giving permission to handle
Authorities continue to have right to take certain rakes and the operations in Bandel continued till
adverse action including termination of the 2014. However, Eastern Railways did not renew
Concession Agreement and levying liquidated lease agreement by citing a cabinet note which
damages at a rate of 0.1% of the amount of barred permanent construction of a commercial
performance security for each day of delay in establishment on railway land. Consequently, it
project completion in terms of the CA. stopped rake movement of the AALL in March
The management represent that the project 2014. As the AALL was unable to transport
development is progress with revised timelines food grains at this depot, FCI stopped making
payment of revenues for this depot. Considering be resolved as both FCI and Eastern Railway have
the uncertainty involved in ultimate recovery, the agreed to the mutually arrived at solution for
AALL had not recognized revenues for the year serving procurement, storage and distribution of
ended March 31, 2021. Similarly, such charges food grains into Public Distribution System and
do not form part of any other disclosure of notes other welfare schemes of the Govt. of India under
forming part of consolidated financial statements. National Food Security Act.
In order to resolve the issue and get the lease Current Status:- In order to fulfill Railway’s
agreement renewed, the AALL had filed a writ condition of transfer of ownership from AALL
petition before Kolkata High Court on 15.12.2016. to FCI, a Sale Agreement was drafted jointly by
The High Court, vide its order dated 04.01.2017, FCI and FCI, wherein it was proposed that AALL
had asked Eastern Railways to resolve the matter will sell the assets situated in Bandel to FCI
amicably. However, Eastern Railways did not at a notional value of H1, so that FCI becomes
renew lease period again and therefore, the AALL owner of the depot and Railway could grant
had filed second writ petition before Kolkata High the land lease to FCI. AALL will operate the
Court on April 24, 2017. unit on the same terms & conditions that were
stipulated in the original Service Agreement.
While the matter was pending with Kolkata
The said Sale Agreement is under process in
High Court, the AALL approached Ministry of
FCI and Railway. The Company expects that the
Consumer Affairs, Food & Public Distribution, GOI
matter would be resolved positively and Bandel
and requested them to take up the matter with
depot will get operational in due course of time.
Ministry of Railway, whereby Railway could lease
Consequent to suspension of operations in
out the land with structures/ assets to FCI as
Bandel (Hooghly), FCI had unilaterally decided
there is a policy in Railway that permits leasing
to reduce the Guaranteed Tonnage in Kaithal (2
out Railway land to a Government entity/ PSU.
lakh MT) in proportion to Guarantee Tonnage of
Accordingly, Minister of Consumer Affairs, Food &
Hooghly (66700 MT). The Company will take up
Public Distribution took up the matter with the
the matter with FCI or refer it to Arbitration after
Minister of Railway, who got the matter examined
the Bandel depot gets operationalized.
in Railway Board and issued directions that the
land can be given on lease to FCI on long term
basis provided AALL clears all the dues towards
48 The subsidiary company Adani Agri Logistics
Limited (“AALL”) had entered into an Agreement
Eastern Railway and FCI takes over the ownership
with FCI on 28.06.2005 for a concession period of
of Bandel depot.
20 years from “Operations Date”, whereby it was
As a result of these directions and discussion supposed to develop Silo Terminals with Railway
with Railway, the AALL had withdrawn the writ Sidings on BOO basis and procure specialized
petition against Eastern Railway and cleared all Rail wagons within 3 years. AALL installed and
dues towards them. The AALL has also submitted commissioned two largest units i.e., Moga (Punjab)
its consent to transfer the ownership of Bandel and Kaithal (Haryana) having Silos of 200000 MT
depot to FCI so as to clear the way to resume the capacity each within a period of 2 years in 2007
operations at Bandel. i.e., much before the deadline of 3 years and put
to the service of FCI. Subsequent units of Navi
Consequent to suspension of operations in Bandel
Mumbai, Hooghly, Chennai, Coimbatore and
(Hooghly), FCI had unilaterally decided to reduce
Bangalore were commissioned in 2008 & 2009.
the Guaranteed Tonnage in Kaithal (2 lakh MT)
For the delay in execution of these units, AALL
in proportion to Guarantee Tonnage of Hooghly
had duly paid liquidated damages to FCI as per
(66700 MT). The AALL is in discussion on the
the contract terms. One of the obligations to be
matter with FCI to resolve it amicably. In case no
fulfilled by AALL was to provide certain number
resolution is arrived at, the AALL will seek remedy
of specialized wagons (i.e., Rakes) to facilitate
in the Arbitration on this particular matter.
the bulk movement of food grain stocks from
The process of leasing out the land by producing areas of Moga and Kaithal to the
Eastern Railway to FCI is in progress. FCI has consuming areas. Since this was a pilot project
communicated with Railway in this regard. Formal and specialized wagons were being introduced
meetings have also taken place between FCI and for the first time in India, number of rakes
Railway. The AALL expects that the matter would required for the project remained a debatable
issue between RITES (the consultants) and rules thereof for quantifying the financial impact
Railway Board. The AALL initially procured 260 have not been notified. The Group will assess the
wagons i.e., 5 rakes. However, FCI insisted for 364 impact of the Codes when the rules are notified
wagons i.e., 7 rakes. Eventually, AALL procured and will record any related impact in the period
104 more wagons i.e., two more rakes to make the Codes become effective.
total of 7 rakes on 28.09.2013. Meanwhile, AALL
continued serving FCI to the full capacity during
50 a) On March 03, 2021, the board of directors
have approved the Composite Scheme
this period. As per contract, FCI was supposed to
of Arrangement between the Company
give Annual Guaranteed Tonnage (AGT) and WPI
and Brahmi Tracks Management Services
based escalation in service charges. Since FCI
Private Limited (“Brahmi”) and Adani Tracks
considered 28.09.2013 as the actual “Operations
Management Services Private Limited (“Adani
date” when the project was 100% complete, they
Tracks”) and Sarguja Rail Corridor Private
did not give WPI escalation to AALL for the period
Limited (“Sarguja”) and their respective
from 2007 till 28.09.2013. FCI also did not give
shareholders and creditors (the ‘Scheme’)
Guaranteed Tonnage for this period. FCI kept this
under Section 230 to 232 and other applicable
period on Actual Utilization Basis (AUB). Also, FCI
provisions of the Companies Act, 2013 and
kept the 20 years’ Concession Period from 2007
the Rules framed thereunder (“the Act”).
till 2027. As per Agreement terms, the AGT will
The said Scheme is effective upon approval
be reduced from 100% to 75% from 11th year of
of shareholders, creditors, Hon’ble National
operations. Since FCI considered 2007 as first
Company Law Tribunal and other regulatory
year of operations, the AGT was reduced to 75%
and statutory approvals as applicable.
from 2017 i.e., 11th year of operations. After a
series of deliberations and consultations with FCI, b) On March 03, 2021, the Group has announced
the matter was referred to Arbitration Tribunal, that it will be acquiring stake of 31.50%
which is currently ongoing. AALL has prayed as in Gangavaram Port Limited (“GPL”) from
follows: existing shareholder of GPL subject to
necessary regulatory approvals. The Group
a) FCI should pay WPI based escalation from 2007
has completed acquisition of 31.50% equity
as AALL had been providing uninterrupted
stake of GPL on April 16, 2021. On March 13,
services to FCI since beginning. WPI is kept to
2021, the Group has announced that it will be
absorb inflation irrespective of the fact that
acquiring controlling stake of 58.10% in GPL
the unit was on AGT or AUB.
from existing shareholders of GPL subject to
b) Alternatively, if FCI considers 28.09.2013 as necessary regulatory approvals.
“Operations Date”, the 20 years’ Concession
Period should be fixed from 2013 till 2033. 51 Company’s subsidiary in Myanmar has signed a
contract for setting up a greenfield project i.e.
Accordingly, the matter is being heard by the
an International Container Terminal, in Yangon,
Arbitration Panel comprising of three Arbitrators.
Myanmar in May 2019 and has invested USD 127
Arbitral Award is likely to be pronounced this year.
million on the project upto March 31, 2021. The
Current status - Company continues to estimate the feasibility of
this project to be viable. However, in light of the
1. Arguments from the Claimant i.e., AALL have
Military coup in Myanmar and sanctions imposed
been heard by the Tribunal in consecutive
by the United States on Myanmar Economic
hearings concluded on March 09, 2021.
Corporation, the Company has obtained US
2. Arguments from Respondent i.e., FCI shall based counsel’s view on its legal compliance
begin on April 14, 2021 and will last till April position (which confirms that there is no legal
17, 2021. non-compliance) and is proactively approaching
the Office of Foreign Assets Control (OFAC) of
3. The adjudication is expected by July 31, 2021.
US Department of Treasury operations, to make
sure that it is not in violation of the sanctions due
49 The Code on Wages, 2019 and Code of Social to the recent developments. Company is also in
Security, 2020 (“the Codes”) relating to employee
touch with Indian embassy in Myanmar to ensure
compensation and post-employment benefits
safety of the employees.
that received Presidential assent and the related
52 The Group’s management has made assessment 54 Events occurred after the Balance Sheet
of likely impact from the COVID-19 pandemic on Date
business and financial risks based on internal and
i) The Group has entered into share purchase
external sources. The Group has also considered
agreement on April 4, 2021 to acquire balance
the possible effects of COVID-19 on the carrying
25% equity stake of the Adani Krishnapatnam
amounts of its financial and non-financial assets
Port Limited from its erstwhile promoters.
and debt covenants using reasonably available
information, estimates and judgments and has ii) The Group has completed acquisition of
determined that none of these balances require 31.50% equity stake of Gangavaram Port
a material adjustment to their carrying values. Limited on April 16, 2021.
Further, the management does not see any
iii) On April 19, 2021, the Company has allotted
medium to long term risks in the ability of the Group
1,00,00,000 equity shares having face value
to meet its liabilities as and when they fall due.
of H2 each on preferential basis to Windy
Other Expenses for the year ended March 31,
Lakeside Investment Limited at an issue price
2021 includes contributions of H80 crore towards
of H800 per share (including premium of H798
COVID-19 pandemic.
per share).
53 Standards issued but not effective: iv) The Board of Directors of the Company has
recommended Equity dividend of H5 per equity
As at the date of issue of financial statements,
share (previous year H Nil) on 2,041,751,761
there are no new standards or amendments
equity shares.
which have been notified by the MCA but not yet
adopted by the Group. Hence, the disclosure is
not applicable.
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad
Date : May 04, 2021
Limited
34 Adani Agri Logistics (Dewas) 2020-21 INR 1.00 2.11 14.08 10.96 - 1.45 0.51 0.51 -* 0.51 - 100%
Limited
35 Adani Agri Logistics (Katihar) 2020-21 INR 1.00 (4.73) 60.21 63.93 - 17.55 (2.96) (3.01) - (3.01) - 100%
Limited
36 Adani Agri Logistics 2020-21 INR 1.00 2.49 22.85 19.36 - 0.75 0.39 0.35 -* 0.35 - 100%
(Kotkapura) Limited
37 Adani Agri Logistics (Kannauj) 2020-21 INR 1.00 35.70 49.12 12.41 - - 0.04 (0.01) - (0.01) - 100%
Statutory Reports
Limited
38 Adani Agri Logistics (Panipat) 2020-21 INR 1.00 (1.48) 67.83 68.32 - - (0.64) (0.64) - (0.64) - 100%
Limited
39 Adani Agri Logistics (Moga) 2020-21 INR 1.00 5.66 7.16 0.50 - - (0.04) (0.08) - (0.08) - 100%
Limited
40 Adani Agri Logistics (Mansa) 2020-21 INR 1.00 2.86 3.86 0.01 - - (0.02) (0.04) - (0.04) - 100%
Limited
41 Adani Agri Logistics 2020-21 INR 1.00 (0.95) 0.06 0.01 - - (1.03) (1.04) - (1.04) - 100%
(Bathinda) Limited
Financial Statements
Limited 19,
2021 to
March 31,
2021
67 Abbot Point Operations Pty 2020-21 INR 0.56 87.87 290.97 202.54 - 555.43 37.74 23.88 - 23.88 - 100%
Limited (Consolidated) AUD 0.10 15.77 52.24 36.36 - 104.47 7.10 4.49 - 4.49 -
68 Adani Mundra Port Pte. 2020-21 INR 0.01 (0.10) - 0.09 - - (0.03) (0.03) - (0.03) - 100%
Limited USD -* (0.01) - 0.01 - - -* -* - -* -
69 Adani Abbot Port Pte. Limited 2020-21 INR 0.01 (0.09) - 0.09 - - (0.03) (0.03) - (0.03) - 100%
Statutory Reports
Notes:-
Note:-
(1) There is significant influence/joint control due to percentage (%) of Share holding.
(2) As on March 31, 2020, Adani Logistics Limited (“ALL”), a wholly owned subsidiary of Adani Ports and Special
Economic Zone Limited (“APSEZL”) held 26% shareholding in Snowman Logistics Limited (“Snowman”) and
was accounted as Associate. During the year, Snowman ceased to be an associate entity of the Group and
the balance investments in Snowman was accounted for at FVTOCI in accordance with the applicable
Accounting Standards. ALL disposed off entire shareholding in Snowman and transferred FVTOCI balance
to retained earnings.
(3) On February 15, 2021, the Group has completed the acquisition of Dighi Port Limited (“DPL”) under the
Corporate Insolvency Resolution Plan (“CIRP”) and consequently DPL”s Joint Venture entity Dighi Roha
Rail Limited became joint venture entity of the Group and accounted the same as an investment in Joint
Venture. The Group has not considered any share of profit/ loss for the period as the amount is immaterial.
Kamlesh Bhagia
Company Secretary
Place : Ahmedabad
Date : 04 May, 2021
NOTICE is hereby given that the 22nd Annual General Meeting of Adani Ports and Special Economic Zone Limited
will be held on Monday, July 12, 2021 at 10:00 a.m. through Video Conferencing/ Other Audio Visual Means to
transact the following businesses:
India or outside India whomsoever in addition to “RESOLVED THAT pursuant to the provisions of
the temporary loans obtained from the Company’s Section 143(8) and other applicable provisions, if
Banker(s) in the ordinary course of business any, of the Companies Act, 2013 (“Act”) and the
provided that the sum or sums so borrowed under rules made thereunder, as amended from time
this resolution and remaining outstanding at any to time, the Board of Directors be and is hereby
time shall not exceed in the aggregate H50,000 authorized to appoint Branch Auditors of any
crore (Rupees Fifty Thousand crore Only).” branch office of the Company, whether existing
or which may be opened hereafter, outside India,
“RESOLVED FURTHER THAT the Board be and is
in consultation with the Company’s Statutory
hereby authorised to take all such steps as may
Auditors, any person(s)/ firm(s) qualified to act
be deemed necessary, proper or expedient to give
as Branch Auditor in terms of the provisions
effect to this resolution.”
of Section 143(8) of the Act and to fix their
8. To consider and if thought fit, to pass with or remuneration.”
without modification(s), the following resolution
as an Ordinary Resolution:
3. Information regarding appointment/re- 7. In line with the aforesaid Circulars, the Notice
appointment of Directors and Explanatory of AGM along with Annual Report 2020-21 is
Statement in respect of special businesses to sent only through electronic mode to those
be transacted pursuant to Section 102 of the Members whose email addresses are registered
Companies Act, 2013 (“Act”) and/or Regulation with the Company/ Depositories. Members may
36(3) of the Securities and Exchange Board note that Notice and Annual Report 2020-21 has
of India (Listing Obligations and Disclosure been uploaded on the website of the Company
Requirements) Regulations, 2015 (“SEBI Listing at www.adaniports.com. The Notice can also
Regulations”) is annexed hereto. be accessed from the websites of the Stock
Exchanges i.e. BSE Limited and National Stock
4. Pursuant to the Circulars, the facility to appoint Exchange of India Limited at www.bseindia.com
proxy to attend and cast vote for the members and www.nseindia.com respectively and the
is not available for this AGM. However, the Body AGM Notice is also available on the website
Corporates are entitled to appoint authorised of CDSL (agency for providing the Remote
representatives to attend the AGM through VC/ e-Voting facility) i.e. www.evotingindia.com.
OAVM and participate there at and cast their
votes through e-voting. 8. The Company has fixed Friday, June 25, 2021 as
the ‘Record Date’ for determining entitlement of
5. The attendance of the Members attending the members to receive dividend for the financial year
AGM through VC/OAVM will be counted for the 2020-21, if approved at the AGM.
purpose of reckoning the quorum under Section Those members whose names are recorded in
103 of the Act. the Register of Members or in the Register of
Beneficial Owners maintained by the Depositories
6. Pursuant to the Finance Act, 2020, dividend
as on the Record Date shall be entitled for the
income is taxable in the hands of shareholders
dividend which will be paid on or after July 15,
w.e.f. April 1, 2020 and the Company is required
2021, subject to applicable TDS.
9. Members seeking any information with regard to 15. Process and manner for members opting for
the financial statements are requested to write to voting through Electronic means:
the Company atleast 10 days before the meeting
i. Pursuant to the provisions of Section 108 of
so as to enable the management to keep the
the Act read with Rule 20 of the Companies
information ready.
(Management and Administration) Rules,
10. Members holding the shares in physical mode 2014 (as amended) and Regulation 44 of SEBI
are requested to notify immediately the change Listing Regulations (as amended), and the
of their address and bank particulars to the Circulars, the Company is providing facility of
R & T Agent of the Company. In case, shares held remote e-voting to its Members in respect of
in dematerialized form, the information regarding the business to be transacted at the AGM. For
change of address and bank particulars should be this purpose, the Company has entered into an
given to their respective Depository Participant. agreement with Central Depository Services
(India) Limited (“CDSL”) for facilitating voting
11. In terms of Section 72 of the Act, nomination through electronic means, as the authorized
facility is available to individual Members holding e-Voting agency. The facility of casting votes
shares in the physical mode. The Members who by members using remote e-voting as well
are desirous of availing this facility, may kindly as e-voting during AGM will be provided by
write to Company’s R & T Agent for nomination CDSL.
form by quoting their folio number.
ii. Members whose names are recorded in
12. The balance lying in the unpaid dividend account the Register of Members or in the Register
of the Company in respect of final dividend of Beneficial Owners maintained by the
declared for the financial year 2013-14 will Depositories as on the Cut-off date i.e.
be transferred to the Investor Education and July 5, 2021, shall be entitled to avail the
Protection Fund of the Central Government by facility of remote e-voting as well as e-voting
October, 2021. Members who have not encashed during AGM. Any recipient of the Notice, who
their dividend warrants pertaining to the said year has no voting rights as on the Cut-off date,
may approach the Company or its R & T Agent for shall treat this Notice as intimation only.
obtaining payments thereof by September 12, iii. A person who has acquired the shares and
2021. has become a member of the Company after
the dispatch of the Notice of the AGM and
13. The Register of Directors and Key Managerial
prior to the Cut-off date i.e. July 5, 2021, shall
Personnel and their shareholding maintained
be entitled to exercise his/her vote either
under Section 170 of the Act, the Register of
electronically i.e. remote e-voting or e-voting
contracts or arrangements in which the Directors
during AGM by following the procedure
are interested under Section 189 of the Act and
mentioned in this part.
all other documents referred to in the Notice will
be available for inspection in electronic mode. iv. The remote e-voting will commence on
Thursday, July 8, 2021 at 9.00 a.m. and will end
14. The Members can join the AGM through VC/ on Sunday, July 11, 2021 at 5.00 p.m. During
OAVM mode 15 minutes before and after the this period, the members of the Company
scheduled time of the commencement of the holding shares either in physical mode or in
Meeting by following the procedure mentioned demat mode as on the Cut-off date i.e. July
in the Notice. The facility of participation at the 5, 2021 may cast their vote electronically.
AGM through VC/OAVM will be made available The members will not be able to cast their
for 1,000 members on first come first served vote electronically beyond the date and time
basis. This will not include large Shareholders mentioned above and the remote e-voting
(Shareholders holding 2% or more shareholding), module shall be disabled for voting by CDSL
Promoters, Institutional Investors, Directors, Key thereafter.
Managerial Personnel, the Chairpersons of the
Audit Committee, Nomination and Remuneration v. Once the vote on a resolution is casted by
Committee and Stakeholders Relationship the member, he/she shall not be allowed to
Committee and Auditors etc. who are allowed to change it subsequently or cast the vote again.
attend the AGM without restriction on account of vi. The voting rights of the members shall be in
first come first served basis. proportion to their share in the paid up equity
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User
ID and Forget Password option available at abovementioned website.
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related
to login through Depository i.e. CDSL and NSDL.
(v) Login method for e-Voting and joining virtual meeting for shareholders other than individual shareholders
holding securities in demat mode and shareholders holding securities in physical mode:
1. The shareholders should log on to the e-voting website www.evotingindia.com.
2. Click on Shareholders.
3. Now Enter your User ID
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
c. Members holding shares in Physical Form should enter Folio Number registered with the
Company.
4. Next enter the Image Verification as displayed and Click on Login.
5. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on
an earlier voting of any company, then your existing password is to be used.
6. If you are a first time user follow the steps given below:
For Shareholders other than individual shareholders holding shares in Demat Form
PAN Enter your 10-digit alpha-numeric PAN issued by Income Tax
Department (Applicable for both demat shareholders as well as
physical shareholders).
Members who have not updated their PAN with the Company/
Depository Participant are requested to use the sequence number
indicated in the PAN field.
Dividend Bank Details OR Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy
Date of Birth (DOB) format) as recorded in your demat account or in the company records
in order to login.
If both the details are not recorded with the depository or company
please enter the member id / folio number in the Dividend Bank details
field as mentioned in instruction (v).
(vi) After entering these details appropriately, (xvi) Shareholders can also cast their vote using
click on “SUBMIT” tab. CDSL’s mobile app m-Voting. The m-Voting
app can be downloaded from Google Play
(vii) Members holding shares in physical form
Store. Apple and Windows phone users
will then directly reach the Company
can download the app from the App Store
selection screen. However, members
and the Windows Phone Store respectively.
holding shares in demat form will now
Please follow the instructions as prompted
reach ‘Password Creation’ menu wherein
by the mobile app while voting on your
they are required to mandatorily enter their
mobile.
login password in the new password field.
Kindly note that this password is to be (xvii) Note for Non – Individual Shareholders and
also used by the demat holders for voting Custodians
for resolutions of any other company on
• Non-Individual shareholders (i.e. other
which they are eligible to vote, provided
than Individuals, HUF, NRI etc.) and
that company opts for e-voting through
Custodian are required to log on to
CDSL platform. It is strongly recommended
www.evotingindia.com and register
not to share your password with any other
themselves as Corporates.
person and take utmost care to keep your
password confidential. • A scanned copy of the Registration
Form bearing the stamp and sign of the
(viii) For Members holding shares in physical
entity should be emailed to helpdesk.
form, the details can be used only for
[email protected].
e-voting on the resolutions contained in
this Notice. • After receiving the login details a
Compliance User should be created
(ix) Click on the EVSN of the Company – ADANI
using the admin login and password.
PORTS AND SPECIAL ECONOMIC ZONE
The Compliance User would be able to
LIMITED on which you choose to vote.
link the account(s) for which they wish
(x) On the voting page, you will see to vote on.
“RESOLUTION DESCRIPTION” and against
• The list of accounts linked in the login
the same the option “YES/NO” for voting.
should be mailed to helpdesk.evoting@
Select the option YES or NO as desired.
cdslindia.com and on approval of the
The option YES implies that you assent to
accounts they would be able to cast
the Resolution and option NO implies that
their vote.
you dissent to the Resolution.
• A scanned copy of the Board Resolution
(xi) Click on the “RESOLUTIONS FILE LINK” if
and Power of Attorney (POA) which they
you wish to view the entire Resolution
have issued in favour of the Custodian,
details.
if any, should be uploaded in PDF format
(xii) After selecting the resolution, you have in the system for the scrutinizer to verify
decided to vote on, click on “SUBMIT”. A the same.
confirmation box will be displayed. If you
• Alternatively, Non Individual shareholders
wish to confirm your vote, click on “OK”,
are required to send the relevant Board
else to change your vote, click on “CANCEL”
Resolution/ Authority letter etc. together
and accordingly modify your vote.
with attested specimen signature of
(xiii) Once you “CONFIRM” your vote on the the duly authorized signatory who are
resolution, you will not be allowed to authorized to vote, to the Scrutinizer and
modify your vote. to the Company, if voted from individual
tab & not uploaded same in the CDSL
(xiv) You can also take a print of the votes cast
e-voting system for the scrutinizer to
by clicking on “Click here to print” option
verify the same.
on the Voting page.
In case you have any queries or issues
(xv) If a demat account holder has forgotten
regarding e-voting, you may refer the
the login password, then Enter the User ID
Frequently Asked Questions (“FAQs”)
and the image verification code and click
and e-voting manual available at www.
on Forgot Password & enter the details as
evotingindia.com, under help section
prompted by the system.
Contact Details:
Company : Adani Ports and Special Economic Zone Limited
Regd. Office: “Adani Corporate House”,
Shantigram, Near Vaishno Devi Circle,
S. G. Highway, Khodiyar,
Ahmedabad - 382421, Gujarat, India
CIN: L63090GJ1998PLC034182
E-mail ID: [email protected]
Registrar and Transfer Agent : Link Intime India Private Limited
C-101, 247 Park, L B S Marg, Vikhroli (West),
Mumbai-400083, Maharashtra, India
Phone: +91-22-49186270 | Fax: +91-22-49186060
e-Voting Agency : Central Depository Services (India) Limited
E-mail ID: [email protected]
Phone : 022-23058542/43
Scrutinizer : M/s. Chirag Shah & Associates
CS Chirag Shah
Practising Company Secretaries
E-mail ID: [email protected]
Further, in view of expanding business operations of None of the Directors or key managerial personnel or
the Company, the planned investments and capital their relatives is, in any way, concerned or interested
expenditure for development of greenfield terminals, in the said resolution.
expansion of existing ports, investment in logistics
business for development of multi-modal parks and For Item No. 8
inorganic growth opportunities, it is necessitated to The Company has branch outside India and may also
enhance the borrowing limits by authorizing Board of open new branches outside India in future. It may be
the Directors or Committee thereof to borrow monies necessary to appoint branch auditors for carrying
upto H50,000 crore (Rupees Fifty Thousand crore out the audit of the accounts of such branches. The
Only). Members are requested to authorize the Board of
Accordingly, it is, therefore, necessary for the members Directors of the Company to appoint branch auditors
to pass a Special Resolution under Section 180(1) in consultation with the Company’s Statutory Auditors
(c) of the Act, to enable to the Board of Directors to and fix their remuneration.
borrow money in excess of the aggregate of the paid The Board of Directors recommends the said
up share capital and free reserves of the Company. resolution for your approval.
The Board of Directors recommends the said None of the Directors or key managerial personnel or
resolution for your approval. their relatives is, in any way, concerned or interested
in the said resolution.
^^Listed Companies
* Details of directorship and membership/chairmanship of committees in public companies are as on March 31, 2021.
For other details such as number of meetings of the board attended during the year, remuneration drawn and relationship with other directors and key
managerial personnel in respect of above directors, please refer to the Corporate Governance Report.
Abbreviations
Acronym Full form Acronym Full form
AALL Adani Agri Logistics Limited AWSPL Adani Warehousing Services Pvt. Ltd.
ABPPL Adani Bangladesh Ports Private AYITCL Adani Yangon International Terminal
Limited Company Ltd.
ACC Acc Cement Ltd. BDT Bangladesh Taka
ACMTPL Adani CMA Mundra Terminal Pvt. Ltd. BOO Build Own & Operate
ADR American Depositary Receipt BOT Build Operate And Transfer
AECTPL Adani Ennore Container Terminal Pvt. BPS Basis Points
Ltd. BRCPL Bowen Rail Company Pty Ltd.
AEL Adani Enterprise Ltd. BRO Bowen Rail Operation Pte Ltd
AEO Authorised Economic Operator BRR Business Responsibility Report
AFTO Automobile Freight Train Operator BSC British Safety Council
AGEL Adani Green Energy Ltd. BSE Bombay Stock Exchange
AGM Annual General Meeting CA Chartered Accountant
AGT Annual Guaranteed Tonnage CAGR Compound Annual Growth Rate
AHMPL Adani Hospitals Mundra Pvt. Ltd. CAMB Centre For Advanced Marine Biology
AHPL Adani Hazira Port Limited CARE Care Ratings
AICTPL Adani International Container Terminal CBSE Central Board Of Secondary Education
Pvt. Ltd. CC Cubic Centemeter
AITPL Adani International Terminals Pte Ltd. CCEA Cabinet Committee On Economic
AKBTPL Adani Kandla Bulk Terminal Pvt. Ltd. Affairs
AKPL Adani Kattupalli Port Ltd. CCTV Closed-Circuit Television
ALL Adani Logistics Ltd. CDM Clean Development Mechanism
ALSPL Adani Logistics Services Pvt. Ltd. CDP Carbon Disclosure Project
AMA Ahmedabad Management Association CDSL Central Depository Services (India) Ltd
AMCT Adani Mundra Container Terminal CEO Chief Executive Officer
AMPTPL Adani Murmugao Port Terminal Pvt. CESTAT Customs Excise And Service Tax
Ltd. Appellate Tribunal
AOC Accounts Of Companies CETP Common Effluent Treatment Plant
APDPPL Adani Petronet (Dahej) Port Pvt. Ltd. CEZ Coastal Employment Zone
APL Adani Power Ltd. CFO Chief Financial Officer
APMS Adani Port Management System CFS Container Freight Station
APO Abbot Point Operations Pty Ltd. CGD City Gas Distribution
APSEZ Adani Ports and Special Economic CGU Cash-Generating Unit’S
Zone Ltd. CHWIF Common Hazardous Wastes
AS Accounting Standard Incineration Facility
ASDC Adani Skill Development Centre CII Confederation Of Indian Industry
ASEAN Association Of Southeast Asian CIN Corporate Identification Number
Nations CIO Chief Information Officer
ASSOCHAM The Associated Chambers Of CIRP Corporate Insolvency Resolution
Commerce And Industry Of India Process
ATGL Adani Total Gas Ltd. CIT Commissioner Of Income-Tax
ATL Adani Transmission Ltd. CITES Convention On International Trade In
ATPL Adani Total Pvt. Ltd. Endangered Species Of Wild Fauna
AUB Actual Utilization Basis And Flora
AUD Australian Dollar CMA-CGM CMA CGM S.A.
AVCTPL Adani Vizag Coal Terminal Pvt. Ltd. COD Commercial Operational Date
AVM Adani Vidya Mandir CONCOR Container Corporation of India Ltd.
AVMB Adani Vidya Mandir, Bhadreshwar COO Chief Operating Officer
AVPPL Adani Vizhinjam Port Pvt. Ltd. COP Communications 0n Progress
1. EBITDA numbers are calculated except any Mark-to-market impact of Forex Movement
2. EBITDA number for FY 2020- 21 is excluding one-time donation for Covid-19 relief funds
3. Operational parameters for FY 2020- 21 viz. productivity, turnaround time doesn’t include Krishnapatnam
and Dighi Port
4. ROCE is calculated as EBIT divided by Average Net Capital Employed
5. ROCE number for FY 21 is calculated using full-year EBIT of Krishnapatnam and debt on account of that for
like-to-like comparison
6. Average Finance cost is calculated using total finance cost divided by average total debt.
7. APSEZ cargo throughput market share is calculated basis internal estimates and excludes Non-APSEZ LNG,
LPG and coastal volumes