Kannur International Airport Limited Shares

Annual Report Summary

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.