Kannur International Airport Limited Shares Annual Reports

Kannur International Airport Limited Shares

The document provided is the 15th Annual Report for the fiscal year 2023-24 of Kannur International Airport Limited (KIAL). The report details the airport’s financial performance, management structure, compliance, and key business matters addressed during the year. The annual general meeting (AGM) notice, director’s report, auditor’s report, and standalone and consolidated financial statements are included in the document. **Timeline and Background:** * Incorporation and Initial Approvals: KIAL was formed as a public limited company in 2009 after receiving initial approvals from the Ministry of Civil Aviation (MoCA) and the Union Cabinet starting in 1998. Land was identified for the airport development in 2008. * Construction and Operations: Construction began in 2014 and the airport commenced operations on December 9, 2018. * Key Milestones: The airport achieved security clearance in 2012-2013. It facilitated one million passengers in the first nine months and commenced first Haj operations. An integrated air cargo complex began operating in 2023. Kannur International Airport achieved 5 million cumulative passengers on 28 September 2023. **Notice of AGM:** * The 15th AGM will be held on Monday, September 23, 2024, via video conferencing/audio-visual means. Ordinary business includes adopting the audited financial statements for FY 2023-24 and re-appointing directors M.A. Yusuffali and Dr. M.P. Hassan Kunhi. Special business involves approving the appointment and remuneration of Sri. Dinesh Kumar C. as Managing Director for three years. **Appointment and Remuneration of Managing Director:** * Sri. Dinesh Kumar C. was initially appointed Managing Director in February 2023 by Government of Kerala order and subsequently approved by the Board. Approving his remuneration requires shareholder approval, especially as the company incurred losses in FY 2022-23 and 2023-24 resulting in inadequate profits. The annual salary is capped at Rs. 50.16 lakh, including housing, vehicle, and WiFi. **Remuneration of Cost Auditor:** * The Board recommends ratification of M/s Sankara Kumar Associates as Cost Auditors for FY 2024-25 with remuneration of Rs. 75,000 plus taxes and expenses, and Rs 18,000 for e-filing cost audit reports. **E-Voting and AGM Instructions:** * The AGM will be conducted virtually, following MCA guidelines. E-voting is available for shareholders. NSDL is the authorized agency for e-voting. The cut-off date for e-voting eligibility is September 16, 2024. Detailed instructions for e-voting and joining the virtual meeting are provided. **Directors' Report Highlights:** * Financial Performance: The company commenced commercial operations in Dec 2018. For the year ended March 31, 2024, the revenue from operations was Rs. 9,923.62 lakhs, total income was Rs. 10,162.28 lakhs, total expenses were Rs. 27,526.59 lakhs, and the loss for the year was Rs. 16,856.02 lakhs. Total accumulated loss is Rs. 74,277.25 lakhs. The aero revenue was Rs. 7,552 lakhs and non-aero revenue was Rs. 1,941.49 lakhs. * Board and Committees: The Hon’ble Chief Minister of Kerala is the chairman. Committees include stakeholder relationship, nomination & remuneration, share allotment & transfer, audit, CSR, and technical committees. * Directors’ Responsibility Statement: The directors confirm that applicable accounting standards have been followed and that the annual accounts present a true and fair view of the company’s state of affairs. * BPCL-KIAL Fuel Farm Pvt Ltd is the Associate Company of Kannur Airport. * The company has an adequate system for business risk evaluation and management. * M/s Krishnamoorthy & Krishnamoorthy have been appointed as the Statutory Auditors of the Company to conduct statutory audit from FY 2022-23 to 2026-27. **Auditor's Report:** * The Independent Auditor's Report, with an unqualified opinion (except for emphasis of matter paragraphs), states that the financial statements give a true and fair view in conformity with Indian Accounting Standards. Emphasis of Matters include Right of Use assets, recoverability of deposit to Ministry of Home Affairs (MoH), and treatment of Passenger Service Fee (PSF). **Financial Statements** * Standalone and consolidated financial statements included in report. **Compliance and other information** *The company is in compliance with Secretarial Standards, the Company has a whistle blower policy and sexual harassment policy, and certain observations in the Secretarial Audit Report require action by the Company. The details of Directors & Key Managerial Personnel, Board Meetings, various committees, related party disclosures, conservation of energy, and CSR are provided. Detailed procedures for electronic voting for the AGM are also outlined.

Kannur International Airport Limited Shares

The following is a comprehensive summary of the Kannur International Airport Limited (KIAL) 14th Annual Report for 2022-23: **Overview:** The report presents the 14th Annual Report and Audited Accounts of Kannur International Airport Limited for the financial year ended March 31, 2023. The company was incorporated on December 3, 2009, for the purpose of designing, financing, construction, operation and maintenance of an international airport at Kannur, Kerala. It commenced commercial operations on December 9, 2018. The company is promoted by the Kerala State Government, which held 39.23% of the equity shares of the Company as of March 31, 2023. The AGM will be held on September 29, 2023, via video conferencing. **Annual General Meeting (AGM) & E-Voting:** Due to the COVID-19 pandemic, the AGM will be held via video conferencing. Members who held shares as of the cut-off date, September 22, 2023, are eligible to vote electronically from September 26-28, 2023. Instructions for e-voting via NSDL and CDSL are provided, including helpdesk details. Procedures are in place for members attending the AGM through VC/OAVM to participate and cast votes. **Ordinary Business at the AGM:** To consider the annual accounts for the year ended March 31, 2023, along with the Directors' and Auditors' Reports. To appoint a Director in place of Sri. Abdul Qadir Theruvath (DIN: 07633785) and Dr. Shamsheer V.P.(DIN: 02371712), who retires by rotation and is eligible for reappointment. **Special Business at the AGM:** To approve the remuneration of the Cost Auditor for the Financial Year 2023-24, fixing Rs. 75,000/- plus applicable taxes and out-of-pocket expenses for M/s Sankara Kumar Associates, and Rs. 18,000 for report preparation. **Directors' Report & Financial Highlights:** The Company commenced its commercial operations on December 9, 2018. Financial highlights for the year ended March 31, 2023, compared to the year ended March 31, 2022, are as follows (values in lakhs): * Revenue from Operations: 11,265.93 (2023) vs. 7,831.54 (2022) * Other Income: 251.43 vs. 563.43 * Total Income: 11,517.36 vs. 8,394.97 * Total Expenses: 25,747.45 vs. 22,766.96 * Loss for the year: (12,627.14) vs. (12,430.24) **Revenue from Operations Breakdown (in lakhs):** * Aero Revenue (Rs. 8,989.68 lakhs): * User Development Fee (UDF) 5294.46 * Landing Charges 1288.26 * Inline X-Ray Charges 734.27 * TNLC Collection 434.5 * Revenue Share on Ground Handling 318.77 * Parking Charges 285.99 * Aerobridge Charges 221.14 * Domestic Cargo 219.56 * CUPPS/CUSS/BRS 192.73 * Non-Aero Revenue (Rs. 1,852.11 Lakhs): * Revenue Share From Concessionaire 954.16 * Space Rentals 427.15 * Car Parking 179.95 * Others 207.14 * CAM Charges 58 * Visitor's Entry Pass 25.71 **Expenditure (Rs. 25,747.45 Lakhs):** * Finance Cost: Rs 10,512.6 lakhs * Airport Operating Expenses: Rs 5668.6 lakhs * Depreciation And Amortization Expense: Rs 6921.08 lakhs **Board of Directors and Committees:** Lists the present board of directors, including Sri. Pinarayi Vijayan (Chairman) and Sri. Dinesh Kumar C (Managing Director), and various committees such as Stakeholder Relationship Committee, Nomination and Remuneration Committee, etc. Changes in the Board of Directors include the appointment of Smt. V Srividya, Sri N V Subbarayudu and Sri. Dinesh Kumar as Managing Director. The sad demise of former Hon'ble Chief Minister of Kerala Sri. Oommen Chandy is remembered. Independent directors are Sri. M. Madhavan Nambiar and Smt. K. Parvathy Ammal. **Directors' Responsibility Statement:** Affirms adherence to accounting standards and proper record maintenance. **Frauds Reported by the Auditor:** No frauds reported. **Disclosures Relating to Subsidiaries, Associates and Joint Ventures:** BPCL -KIAL Fuel Farm Pvt Ltd is the Associate Company of Kannur Airport. Financial details of this associate are included. **Deposits:** The company has not accepted deposits from members or the general public as on March 31, 2023. **Particulars of Contracts or Arrangements with Related Parties:** Details provided in Form AOC – 2. **Auditors & Audit Report:** M/s Krishnamoorthy & Krishnamoorthy are the Statutory Auditors. The report expresses a qualified opinion due to weaknesses in the internal financial control system over financial reporting, specifically concerning book closing procedures and assessing the recoverability of overdue receivables. The auditors draw attention to matters concerning recognition of Right of Use (ROU) assets, recoverability of deposits with the Ministry of Home Affairs (MoH), and contractually receivable expenses. **Key Financial Controls & Management Response** The report identifies internal control weaknesses and outlines managements response: * Financial book closing procedures : monthly accruals followed. Balance confirmations from vendors and customers being carried out when a difference of opinion exists. Reconciliation of books accounts of all major vendors and customers carried out at the year-end for closing the books of accounts. * Process of assessing recoverability of overdue receivables : recoverability of overdue receivables regularly monitored. Commercial decisions are taken after discussions and giving due consideration to business opportunities. **Other Key Points:** * The company has a whistle blower policy * The company states that they make all kinds of arrangements to conserve energy and is making efforts to adopt emerging technology domains related to Company's various projects. * Details of foreign exchange earnings and outgoings are nil. * The company is in compliance with the Secretarial Standards of ICSI. **Auditor's Report on the Standalone and Consolidated Financial Statements:** Krishnamoorthy & Krishnamoorthy issued a qualified opinion, stating that the financial statements present a true and fair view, except for certain matters. The report outlines various responsibilities of management and the auditor. The audit report express adverse opinion on the company's internal financial controls and notes for the years ended March 31, 2023.

Kannur International Airport Limited Shares

The 13th Annual Report of Kannur International Airport Ltd. for the year 2021-22 includes a notice that the Annual General Meeting will be held on July 20, 2023, via video conferencing to consider the annual accounts, Director's Report, Auditor's Report, and appointment of statutory auditors. Due to the COVID-19 pandemic, members' physical attendance is not required, and the meeting is conducted through video conferencing or other audio-visual means. The report outlines electronic voting procedures for members. **Board of Directors and Committees:** The report lists the Present Board of Directors and the composition of various committees of the board, including the Stakeholder Relationship Committee, Nomination and Remuneration Committee, Share Allotment & Transfer Committee, Strategic Management Committee, Audit Committee, HR & Selection Committee, CSR Committee, and Technical Committee. **Financial Highlights and Operations:** The company's commercial operations commenced on December 9, 2018. Key financial data for the year ended March 31, 2022, compared to the previous year, includes: * Revenue from operations: ₹7831.54 lakhs (previous year ₹4477.06 lakhs) * Total Income: ₹8394.97 lakhs (previous year ₹5027.99 lakhs) * Total Expenses: ₹22766.96 lakhs (previous year ₹22876.31 lakhs) * Loss for the year: ₹(12430.24) lakhs (previous year ₹(18499.68) lakhs) * Total accumulated loss: ₹(44883.93) lakhs The revenue is divided into Aero Revenue (₹5369.26 lakhs) and Non-Aero Revenue (₹2462.28 Lakhs). Expenditure for 2021-22 totaled ₹22,766.96 lakhs. **Management and Corporate Governance:** The maximum strength of the Board of Directors is 20. The Hon'ble Chief Minister of Kerala will be the Chairman of the Company. BPCL can nominate 2 Directors when they hold 20% in the paid-up equity capital of the Company. As of now BPCL is holding 16.20% of paid-up capital. Sri. R. Madhavan resigned from his directorship due to superannuation. Three Board of Director's meetings were held. The Audit Committee was reconstituted. Board of Directors decided not to take up new CSR activities until the Company starts making a profit, but will incur committed expenditure on already approved projects. Several committees are described, along with their members. **Auditor's Report & Qualifications:** M/s Krishnamoorthy & Krishnamoorthy have been appointed as the Statutory Auditors for FY 2021-22. The audit report expresses a qualified opinion, drawing attention to the de-recognition of a deferred tax asset related to MAT credit, stating the losses for the current year are overstated by Rs.220.29 Lakhs and earnings per share by Rs. (0.16). Several "Emphasis of Matter" points are raised, including the non-recognition of Right of Use for leased land, recoverability of deposits with the Ministry of Home Affairs, and contractually receivable expenses from the Government of Kerala. An adverse opinion is expressed on the internal financial controls over financial reporting, citing material weaknesses. Key issues identified include a lack of adequate controls for: (1) completeness and accuracy of transactions relating to acquisition/construction of property, plant and equipment; (2) financial book closing procedures; (3) assessing recoverability of overdue receivables. **Other Key Points:** * No frauds were reported by the auditors. * BPCL-KIAL Fuel Farm Pvt Ltd is an associate company. * The company has not accepted deposits from members or the general public. * There were no loans, guarantees, or investments made by the company under Section 186 of the Companies Act, 2013. * The company is compliant with Secretarial Standards of ICSI. * The company has a policy for prevention of Sexual Harassment at the workplace. * A whistle-blower policy is in place to deal with instances of fraud. **Financial Statements and Notes:** The report includes standalone and consolidated balance sheets, statements of profit and loss, statements of changes in equity, cash flow statements, and extensive notes to the financial statements detailing accounting policies, assets, liabilities, equity, revenue, expenses, and other financial disclosures. Details of financial commitments, contingent liabilities, loans, investments, and related party transactions are provided. Significant attention is paid to detailing the impact of COVID-19 on the company's operations and its assessment of going concern status. Details of capital and revenue, along with financial analyses and key information on operations, is explained with precision throughout.

Kannur International Airport Limited Shares

Here's a detailed summary of the Kannur International Airport Limited's 12th Annual Report (2020-21), capturing all significant information as requested. **Overview:** The 12th Annual Report for Kannur International Airport Limited (KIAL) provides a comprehensive overview of the company's performance, financial standing, and key activities for the financial year ended March 31, 2021. The report covers a period marked by the continuing challenges of the COVID-19 pandemic and its impact on air travel and airport operations. **Financial Highlights:** * **Revenue from Operations:** Decreased from ₹11,589.80 lakhs in the previous year to ₹4,477.06 lakhs, reflecting the significant disruption to air travel. * **Other Income:** Increased to ₹550.93 lakhs compared to ₹185.57 lakhs in the previous year. * **Total Income:** Reduced to ₹5,027.98 lakhs from ₹11,775.37 lakhs. * **Total Expenses:** Remained relatively consistent at ₹22,876.31 lakhs (previous year: ₹22,617.32 lakhs). * **Loss Before Tax:** Increased to ₹(17,936.84) lakhs from ₹(10,885.97) lakhs. * **Total Tax Expenses (Benefit):** Resulted in an expense of ₹562.84 lakhs compared to a benefit of ₹(1382.11) lakhs in the previous year. * **Loss for the Year:** Increased to ₹(18,499.68) lakhs compared to ₹(9,503.86) lakhs in the previous year. * **Total Accumulated Loss:** Reached ₹(32,453.69) lakhs. * **Aero Revenue Composition:** User Development Fee (UDF) contributed the largest share at ₹1466.91 lakhs, followed by Landing Charges at ₹511.16 lakhs, and Parking Charges at ₹422.67 lakhs. * **Non-Aero Revenue Composition:** Space Rentals contributed the most at ₹672.18 lakhs, followed by Revenue share from Concessionaires at ₹380.67 lakhs. * **Expenditure Breakdown:** Airport operating expenses were the largest component at ₹4505.73 lakhs, followed by Finance costs at ₹8905.19 lakhs. * **The company has started generating operational revenue effective from 9/12/2018, which consists of Aero Revenue and Non Aero Revenue. **Management & Governance:** * **Board of Directors:** The report lists the Board of Directors, including key figures such as Sri. Pinarayi Vijayan (Chairman) and Dr. V. Venu IAS (Managing Director). * **Committees:** Details on various committees like CSR Committee, Stakeholder Relationship Committee, Audit Committee, Nomination and Remuneration Committee, HR & Selection Committee, Share Allotment & Transfer Committee, and Strategic Management Committee are provided along with their members. * **Board Meetings:** Four Board of Directors meetings were held during the year. * **Independent Directors:** Sri. M. Madhavan Nambiar and Smt. K. Parvathy Ammal are the Independent Directors. * **Directors' Responsibility Statement:** The directors affirm their responsibility for the preparation of the financial statements in accordance with the Companies Act, 2013, and applicable accounting standards. * **Internal Auditors:** M/s Varma & Varma Chartered Accountants, Kannur * **Secretarial Auditor:** M/s PMA & Associates, Company Secretaries Kozhikode * **Cost Auditor:** M/s Sankara Kumar Associates, Cost Accountants, Thiruvananthapuram **AGM Notice and E-Voting Information:** * The 12th Adjourned Annual General Meeting (AGM) was scheduled for June 6, 2022, to be held through Video Conferencing (VC) / Other Audio Visual Means (OAVM). * The notice outlines the ordinary business to be transacted at the AGM, including the adoption of the annual accounts. * Detailed instructions are provided for members regarding e-voting procedures, accessing the AGM through VC/OAVM, and related technical assistance. The e-voting period began on 03 June 2022 and ended on 05 June 2022. **Auditor's Report:** * Deloitte Haskins & Sells LLP issued a qualified opinion on the standalone financial statements, citing concerns about the evaluation and accuracy of cost (including direct costs eligible for capitalization) for recording Property, Plant and Equipment. * Adverse opinion given regarding Internal Financial Controls over Financial Reporting. **Key Audit Observations & Management Responses:** The report details several key observations from the statutory auditor and the management's responses, including: * **Capitalization of Property, Plant, and Equipment (PPE):** The auditor noted a lack of validation regarding completeness and accuracy of cost for PPE. The company had completed Capitalization of Property Plant and Equipment in FY 2018-19 with the help of CA firm which was also reviewed. * **Deferred Tax Assets:** The auditor questioned the de-recognition of deferred tax assets. The company said It has not recognized Deferred Tax Assets as a matter of prudence during the current year and previous year Deferred Tax Asset (DTA) has been de-recognised. * **Land on Lease:** The 353.98 acres of land given on lease to the Company has not been recognised. **Other Significant Disclosures:** * **Frauds Reported by the Auditor:** No frauds have been reported by the auditors. * **Related Party Transactions:** Details on contracts/arrangements with related parties (BPCL-KIAL Fuel Farm Pvt Ltd). * **Employees and Related Disclosures:** There were no employees of the Company who have drawn remuneration in excess of the limits set out under Section 197 (12) of the Companies Act, 2013. * **Risk Management:** The Company has adequate system for business risk evaluation and management. * **Corporate Social Responsibility (CSR):** The company had spent Rs. 7,86,625/- towards Corporate Social Responsibility during the year under consideration. * **Sexual Harassment Policy:** The Company has a policy for prevention of Sexual Harassment at the workplace. **Additional Points:** * The report includes annexures such as Form AOC-1 and MGT-9, providing further details on subsidiaries/associates and shareholding patterns. * Details of amounts for security deposit related deployment of CISF personnel at the airport and company efforts to recoup the same. * Disclosure is made relating to an instance where 353.98 acres of land given on lease to the company have not been recognized in these standalone financial statements as the Company is yet to enter into any lease agreement with the Government of Kerala. **Key Actionable Insights and Recommendations (Implied):** * Address internal control deficiencies identified by the auditor, particularly regarding PPE capitalization and revenue recognition processes. * Continue efforts to negotiate favorable terms for the land lease agreement with the Government of Kerala. * Closely monitor and manage liquidity to ensure the company can meet its obligations. * Continue efforts to grow revenue and optimize operations. * Continue to engage with relevant government bodies (MoCA, NASFT) to resolve pending issues like the PSF recoupment and security deposit refund. This summary aims to provide a detailed and exhaustive representation of the key information contained within the Kannur International Airport Limited's 2020-21 Annual Report.