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Notes to Accounts of Blue Dart Express Ltd.

Mar 31, 2017

1 General Information

Blue Dart Express Limited (''the Company'') is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. The Company is a public limited company and its equity shares and debentures are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2 Basis of preparation of financial statements

a. Statement of compliance

The financial statements of the Company comply with all aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

The financial statements up to year ended March 31, 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

Accordingly, the transition to Ind AS has been carried out from these accounting principles generally accepted in India (“Indian GAAP”) which is considered as the “Previous GAAP’ for purposes of Ind AS 101- First time adoption of Indian Accounting Standards. An explanation of how the transition to Ind AS has affected the Company''s equity and its net profit is provided in Note 48. These financial statements are the first financial statements of the Company under Ind AS.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the rendering of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.

b. Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

(i) Certain financial assets and liabilities recognised at fair value (Refer note 3(o)).

(ii) Defined benefit plans - plan assets measured at fair value (Refer note 29).

c. Use of estimates and judgements

The preparation of the financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The areas involving critical estimates and judgements are:

(i) Estimation of useful life of property, plant and equipment and intangibles assets (Refer note 3(a))

(ii) Estimation of defined benefit obligation (Refer note 29)

(iii) Estimation of current tax expense and receivable/payable (Refer note 8 and 37)

(iv) Estimation of contingent liabilities (Refer note 41)

(v) Estimation of deferred costs (Refer note 15)

3 OPERATING LEASES [Refer note 3(h)]

a. The Company has entered into various non-cancellable operating lease agreements for official/ residential premises for a period of two to five years. Future minimum rentals payable under non-cancellable operating leases are as follows:

b. Company has entered into various cancellable leasing arrangements for motor cars, office equipments and for official/residential premises. The lease rentals for motor cars of Rs.591 Lakhs [Previous year - Rs.498 Lakhs] have been included under the head “Employee Benefits Expense - Salaries, Bonus and Leave Encashment” under note 29 forming part of the Statement of Profit and Loss. Lease rentals for office equipments of Rs.321 Lakhs [Previous year - Rs.278 Lakhs] has been included under the head “Other Expenses - Lease Rentals” under Note 32 forming part of the Statement of Profit and Loss and lease rentals for official and residential premises of Rs.9,246 Lakhs [Previous year - Rs.8,430 Lakhs] has been included under the head “Other Expenses - Rent’ under note 32 forming part of the Statement of Profit and Loss.

c. Company has entered into various cancellable leasing arrangements for network vehicles. The lease component included in domestic network operating cost amounting to Rs.1,718 [Previous year - Rs.1,596 Lakhs] has been included under the head “Freight, Handling and Servicing Costs- Domestic Network operating cost” under note 28 forming part of the Statement of Profit and Loss.

d. Company has entered into Aircraft Crew Maintenance Insurance (ACMI) agreement with Blue Dart Aviation Limited. The lease component included in Aircraft charter costs amounting to Rs.8,240 [Previous year - Rs.6,953 Lakhs] has been included under the head “Freight, Handling and Servicing Costs- Aircraft charter costs” under note 28 forming part of the Statement of Profit and Loss.

4 SEGMENT INFORMATION

The Company has only one operating segment, which is integrated air and ground transportation and distribution. All assets of the Company are domiciled in India and the Company earns its entire revenue from its operations in India. There is no single customer which contributes more than 10% of the Company''s total revenues.

5 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT A Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed debt instruments that have a quoted price. The fair value of all debt instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

B Financial Risk management

i) Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company''s risk assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the policies and processes. Risk assessment and policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the management is responsible for overseeing the Company''s risk assessment and policies and processes.

ii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected credit loss in respect of trade and other receivables and investments.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also have an influence on credit risk assessment.

Concentrations of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large and diverse and also on account of realisation of receivables with in six months. All trade receivables are reviewed and assessed for default on a regular basis.

Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low.

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions of Rs.24,220 Lakhs, Rs.27,572 Lakhs and Rs.15,303 Lakhs as at March 31, 2017, March 31, 2016 and April 1, 2015 respectively. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by the Company as at March 31, 2017, March 31, 2016 and April 1, 2015. The credit worthiness of such lessors is evaluated by the management on an ongoing basis and is considered to be good.

Payload deposit given to subsidiary

The Company has given payload deposit to its subsidiary (Blue Dart Aviation Limited) of Rs.2,049 Lakhs, Rs.2,049 Lakhs and Rs.1,861 Lakhs as at March 31, 2017, March 31, 2016 and April 1, 2015 respectively. The approved future business plans and cash flow projections of the subsidiaries are evaluated by the management of the Company on an ongoing basis and based on this evaluation the recoverability of the payload deposit is considered to be good.

Loans to subsidiary

The Company has given loan to its subsidiaries of Rs.5,437 Lakhs, Rs.9,348 Lakhs and Rs.12,556 Lakhs as at March 31, 2017, March 31, 2016 and April 1, 2015 respectively. The approved future business plans and cash flow projections of the subsidiaries are evaluated by the management of the Company on an ongoing basis and based on this evaluation the recoverability of the loans to subsidiary is considered to be good.

iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

The Company has access to funds from non-convertible debentures.

As of March 31, 2017, the Company had working capital of Rs.18,716 Lakhs including loans of Rs.2,547 Lakhs, cash and cash equivalents of Rs.25,432 Lakhs, trade receivables of Rs.35,975 Lakhs, other current assets of Rs.8,459 Lakhs, employee benefit obligations of Rs.5,618 Lakhs, trade payables of Rs.22,213 Lakhs, borrowings of Rs.16,610 and other current liabilities of Rs.9,256 Lakhs.

As of March 31, 2016, the Company had working capital of Rs.35,593 Lakhs including loans of Rs.3,992 Lakhs, cash and cash equivalents of Rs.28,620 Lakhs, trade receivables of Rs.29,135 Lakhs, other current assets of Rs.6,813 Lakhs, employee benefit obligations of Rs.4,936 Lakhs, trade payables of Rs.20,456 Lakhs and other current liabilities of Rs.7,575 Lakhs.

As of April 1, 2015, the Company had working capital of Rs.26,267 Lakhs, loans of Rs.3,248 Lakhs, cash and cash equivalents of Rs.16,506 Lakhs, trade receivables of Rs.26,531 Lakhs, other current assets of Rs.6,279 Lakhs, employee benefit obligations of Rs.2,638 Lakhs, trade payables of Rs.16,878 Lakhs and other current liabilities of Rs.6,781 Lakhs.

iv) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and it''s revenue generating and operating activities.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate sensitivity - fixed rate instruments

The company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk since neither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates.

(b) Currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss account and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar, against the functional currency of the Company.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

6 RELATED PARTY DISCLOSURES

(A) Names of related parties and related party relationship

(i) Enterprises where control exists

Ultimate Holding Company Deutsche Post AG, Germany

Holding Company DHL Express (Singapore) Pte. Limited, Singapore

(B) Related party relationships where transactions have taken place during the year

Ultimate Holding Company Deutsche Post AG, Germany

Holding Company DHL Express (Singapore) Pte. Limited, Singapore

Subsidiary Company Concorde Air Logistics Limited, India

Subsidiary Company Blue Dart Aviation Limited, India

Fellow Subsidiary Company DHL Express (India) Private Limited, India

Fellow Subsidiary Company DHL Supply Chain India Private Limited, India

Fellow Subsidiary Company DHL Logistics Private Limited, India

Fellow Subsidiary Company DHL eCommerce Singapore PTE. Ltd., Singapore

Fellow Subsidiary Company Deutsche Post IT Services, GMBH, Germany

Fellow Subsidiary Company Williams Lea India Private Limited, India

Fellow Subsidiary Company Tag India Private Limited, India

7 During the year, the Company has received a repayment of Rs.3,911 (Lakhs) [Previous year Rs.3,208 (Lakhs)] from Blue Dart Aviation Limited, a subsidiary company. As at March 31, 2017 the outstanding loan balance is Rs.5,437 (Lakhs), [Previous year Rs.9,348 (Lakhs)] of which Rs.2,441 (Lakhs) [Previous year Rs.3,911 (Lakhs)] is receivable within 12 months from balance sheet date. The loan carries an interest computed at an average ''base'' rate of IDBI Bank and ICICI Bank with the interest being reset on six month basis.

8 CAPITAL MANAGEMENT

The Company''s objective for Capital management is to maximise shareholder''s value and support the strategic objectives of the Company. The Company determines the capital requirements based on its financial performance, operating and long term investment plans.The funding requirements are met through operating cash flows generated.

9 During the year, the Company exercised the “call” option on balance 26% shares equivalent to 6,240,000 Equity Shares of Blue Dart Aviation Limited (BDAL) on November 24, 2016 (previous year 5,040,000 Equity Shares on June 22, 2015 and 960,000 Equity Shares on July 29, 2015) for a total consideration of Rs.7,061 Lakhs including incidental expenses (Previous year Rs.5,368 Lakhs) and thereby increased its shareholding to 100% (previous year increased from 49% to 74%).

10 DISCLOSURE ON SPECIFIED BANK NOTES (SBNS)

During the year, the Company held specified bank notes or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017. The details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, along with that of other notes given below as per the notification.

11 TRANSITION TO IND AS:

These are the Company''s first standalone financial statements prepared in accordance with Ind AS.

For the purposes of reporting as set out in Note 2, we have transitioned our basis of accounting from Indian generally accepted accounting principles (“IGAAP”) to Ind AS. The accounting policies set out in Note 3 have been applied in preparing the financial statements as at and for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the “transition date”).

In preparing our opening Ind AS balance sheet, we have adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under IGAAP except where required by Ind AS.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS.

Ind AS optional exemptions

1. Investment in subsidiaries

Ind AS 101 allows a first time adopter to record the carrying value of investment in subsidiaries as per previous GAAP (i.e. Indian GAAP carrying value on transition date) or fair value of investment in subsidiaries at transition date as deemed cost under Ind AS.

Accordingly, the Company has elected to carry its investment in subsidiaries at the previous GAAP carrying value on the transition date.

2. Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties.

Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value on the transition date.

Ind AS mandatory exceptions

1. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP.

B. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Footnotes

1. Under Indian GAAP, interest free security free lease security deposits and aircraft payload deposit (that are refundable in cash) are recorded at their transaction value. Under Ind AS, all financial instruments are required to be measured at their fair value on initial recognition. Accordingly, security deposits have been fair valued under Ind AS. Difference between transaction value and fair value has been recognised as prepaid rent/cost. Prepaid rent/cost is amortised over the lease term and notional interest income is recognised on unwinding of security deposits.

2. Under Ind AS, remeasurements of post employment benefits i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year.

3. Under Indian GAAP, revenue from distribution service and related costs were recognised on manifest of shipments.

Under Ind AS, revenue from distribution services have been recognised on delivery of services.

4. Under Ind AS, deferred tax has been recognised on the adjustments made on transition to Ind AS.

5. Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

6. Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

7. Under previous GAAP, Blue Dart Aviation Limited (BDAL) was recognised as an associate of the company. Under Ind AS, an investor (the Company) controls an investee (BDAL) when the investor is exposed to (has rights to) variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee. Accordingly, BDAL is recognised as a subsidiary under Ind AS.

12 RECENT ACCOUNTING PRONOUNCEMENTS

Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows''. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of cash flows''. The amendments are applicable to the company from April 1, 2017.

Amendment to Ind AS 7: ''Statement of cash flows''

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

13 Previous year''s figures have been regrouped/reclassified, wherever necessary to conform to the current year''s classification.


Mar 31, 2014

1 General Information

Blue Dart Express Limited (''the Company'') is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. The Company is a public limited company and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2 SEGMENT INFORMATION

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity for its various service offerings and is governed by a similar set of risks and returns.

As at As at March 31, 2014 March 31, 2013 in Rs. Lacs in Rs. Lacs

3 CONTINGENT LIABILITIES [Refer note 2(l)]

Claims against the Company not acknowledged as debt

a) Penalty under Kerala Value Added Tax Act, 2003 909 -

During the year, the Company received an order and penalty notices from the Department of Commercial Taxes, Kerala claiming that Cash on Delivery (COD) sales made are to be considered as local Kerala sales liable to VAT in Kerala and the Company is a selling agent to its customers for such COD sales shipments delivered in Kerala and therefore liable to pay VAT.

The Company has fled a Writ Petition against the order passed by the Department of Commercial Taxes, Kerala which has been admitted by the Honourable Kerala High Court with directions issued to the Revenue Authorities to fle its counter statement and in the interim has directed the Revenue Authorities not to initiate recovery proceedings.

In response to the said penalty notices and based on the legal counsel advise received, the Company has fled its reply submitting that on various grounds it is a settled position of law that the sales are inter-state sales and not a local sale in Kerala, hence provisions of the said Kerala VAT Act are not applicable and in any event the Company cannot be considered as a selling agent of its customers and therefore should not be considered as liable to penalties on transactions carried out by third parties.

b) Stamp Duty - Karnataka Not ascertainable - In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka Stamp Act, 1957, based on the legal counsel advise received, the Company has fled its reply with both those authorities submitting that on various grounds, it does not consider an air waybill to be an ''acknowledgement'' chargeable to stamp duty under the Schedule of the said Act.

5 During the year, the Company has further granted an unsecured interest bearing loan to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (''ACMI'') Agreement of Rs. 1,464 (lacs) [Previous period Rs. 3,956 (lacs)] and received a repayment of Rs. 4,730 (lacs) [Previous period Rs. 1,379 (lacs)]. As at March 31, 2014 the outstanding loan balance is Rs. 19,499 (lacs), [Previous period Rs. 22,765 (lacs)] of which Rs. 3,569 (lacs) [Previous period Rs. 3,266 (lacs)] is receivable within 12 months of balance sheet date. In respect of the aforesaid loans which have been granted in tranches, the principal amount for one tranche is repayable over three years with the first year as moratorium and for the balance tranches is repayable over seven years with the first two years as moratorium. The loan carries an interest computed at an average ''base'' rate of IDBI Bank and ICICI Bank with an interest re-set bi-annually.

6 The Board of Directors of the Company in its meeting held on October 15, 2013 approved a Rs.Scheme of Arrangement'' under Sections 391 and any other applicable provisions of the Companies Act, 1956 and/or Companies Act, 2013 (the "Scheme") for issuance of unsecured, redeemable, non-convertible, fully paid up debentures of Rs. 10/- each (Rupees Ten Only), by way of Bonus, to be allotted out of Surplus in the Statement of profit and Loss of the Company, to the shareholders as viz; 7 Debentures under Series I Debentures, 4 Debentures under Series II Debentures and 3 Debentures under Series III Debentures respectively for every 1 (one) equity share of the Company held by the Shareholders on the Record date to be fixed for this purpose.

BSE Ltd. and National Stock Exchange of India Ltd. have given their no-objection to the Scheme vide their letter dated March 21, 2014. Further, the Hon''ble Bombay High Court has directed that a meeting of the (i) Equity Shareholders; and (ii) unsecured creditors of the Company be convened on Friday, June 13, 2014 at 10:00 am and 1:00 pm respectively at Hotel Hilton, Andheri (East), Mumbai, for the approval of Scheme. The Company is in process of issuing notice of Court Convened Meeting to Equity Shareholders of the Company.

7 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The current accounting year is for twelve months from April 1, 2013 to March 31, 2014, whereas the previous accounting period was for fifteen months from January 1, 2012 to March 31, 2013. Hence, fgures for the current year are not comparable with those of the previous period. Previous period''s fgures have been regrouped/rearranged, wherever necessary to confrm to the current year''s classification.

Signatures to Notes 1 to 37 form an integral part of the financial statements.


Mar 31, 2013

1 General Information

Blue Dart Express Limited (''the Company'') is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. It is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956 ("the Act"). The Company''s shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

2 SEGMENT INFORMATION

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and related party relationship

(i) Enterprises where control exists

Ultimate Holding Company

Holding Company

Wholly Owned Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Associate Company

Deutsche Post AG, Germany

DHL Express (Singapore) Pte. Limited, Singapore

Concorde Air Logistics Limited, India

DHL Express (India) Private Limited, India

DHL Logistics Private Limited, India [Formerly known as DHL

Lemuir Logistics Private Limited]

Skyline Air Logistics Limited, India

Blue Dart Aviation Limited, India

(ii) Key Management Personnel

Managing Director

Director

Director

Director (Up to 30th June, 2011)

Director (From on 30th June, 2011)

Director (Up to 27th September, 2011)

Anil Khanna

Clyde Cooper

Malcolm Monteiro

Roger Crook

Jerry Hsu

Christopher Ong

(B) Related party relationships where transactions have taken place during the period

(i) Enterprises where control exists

Holding Company

Wholly Owned Subsidiary Company

Fellow Subsidiary Company

Fellow Subsidiary Company

Associate Company

DHL Express (Singapore) Pte. Limited

Concorde Air Logistics Limited, India

DHL Express (India) Private Limited, India

DHL Logistics Private Limited, India [Formerly known as DHL

Lemuir Logistics Private Limited]

Blue Dart Aviation Limited, India

4 CONTINGENT LIABILITIES [Refer note 2(l)]

a) Bank Guarantees - 36

Future cash outflows can be determined only when guarantees are invoked by parties to whom given.

b) Claims against the Company not acknowledged as debt Stamp Duty - Karnataka Not ascertainable -

In response to the notices received from Stamp Authorities of Bangalore and Mangalore for payment of stamp duty under the Karnataka Stamp Act, 1957, based on the legal counsel advise received, the Company has filed its reply with both those authorities submitting that on various grounds, it does not consider an air waybill to be an ''acknowledgement'' chargeable to stamp duty under the Schedule of the said Act.

5 During the period, the Company has further granted an unsecured interest bearing loan of Rs. 2,577 (lacs) [Previous year, Rs. 8,943 (lacs)] to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (''ACMI'') Agreement. As at March 31, 2013 the outstanding loan balance is Rs. 22,765 (lacs), [Previous year, Rs. 20,188 (lacs)]

6 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The financial statements for the year ended December 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the period ended March 31, 2013 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this period''s classification.

7 CHANGE IN FINANCIAL YEAR

The Company has changed its Accounting Year to commence from 1st April of every year end to end on 31st March of the following year, to proactively comply with the Companies Bill 2012. Consequent to this, the current accounting period is for the fifteen months period from January 1, 2012 to March 31, 2013. The figures of the current period are not comparable to those of the previous year as the figures of the current period are for fifteen months from January 1, 2012 to March 31, 2013.

Signatures to Notes 1 to 38 form an integral part of the financial statements.


Dec 31, 2011

1. Employee Benefits

The Company has classified the various employee Benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. state Defined Contribution Plans

i. Employers' Contribution to Employee's state Insurance

ii. Employers' Contribution to Employee's Pension scheme 1995

During the year, the Company has recognised the following amounts in the Profit and Loss Account in schedule 13 under "Contribution to Provident and other funds":

Scheme 1995 33,067 27,968

II Defined Benefit Plans

Gratuity:

Valuations in respect of Gratuity has been carried out by an independent actuary, as at the Balance sheet Date, based on the following assumptions:


Dec 31, 2010

1. Employee Benefits

The Company has classified the various employee benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers Contribution to Employees State Insurance

ii. Employers Contribution to Employees Pension Scheme 1995

During the year, the Company has recognised the following amoi in the Profit and Loss Account in Schedule 13 under "Contribu to provident and other funds":

G) Percentage of each category of Plan Assets to total Fair Value of Plan Assets as at December 31,2010 is 100%

The Plan Assets are administered by Life Insurance Corporation of India ("LIC") as per Investment Pattern stipulated for Pension and Group Schemes Fund by Insurance and Regulatory Development Authority regulations.

H) Expected gratuity contribution for the next year is aggregating ? 19,717 (000) [Previous Year? 16,767 (000)].

I) Other Long-term Employee Benefits

The liabilities for Leave Encashment and Compensated Absences as at year end were ? 69,048 (000) [Previous Year ? 58,988 (000)] and ? 8,084 (000) [Previous Year ? 5,896 (000)] respectively.

As at As at December December 31,2010 31,2009 in Rs (000) in Rs (000)

2. Contingent Liabilities not provided for

(a) Corporate Guarantees given on behalf of

Blue Dart Aviation Limited 1,660,000 1,660,000

(b) Bank Guarantees 24,663 23,652

Note: Future cash outflows can be determined only when guarantees are invoked by parties to whom given.

3. Segment Information

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

4. Related Party Disclosures

(a) (i) Enterprises where control exists:

Deutsche Post AG, Germany - Ultimate Holding Company

DHL Express (Singapore) - Holding Company Pte. Limited, Singapore

Concorde Air Logistics - Wholly Owned

Limited, India Subsidiary Company

DHL Express (India) - Fellow Subsidiary Company

Private Limited, India

DHL Lemuir Logistics - Fellow Subsidiary Company

Private Limited, India

Skyline Air Logistics - Fellow Subsidiary Company

Limited, India

Blue Dart Aviation - Associate Company

Limited, India

(ii) Key Management Personnel:

Anil Khanna - Managing Director

(b) Related party relationships where transactions have taken place during the year:

(i) Holdina/Subsidiarv/Fellow Subsidiaries/Associate Company

DHL Express (Singapore) - Holding Company Pte. Limited, Singapore

Concorde Air Logistics - Wholly Owned

Limited, India Subsidiary Company

DHL Express (India) - Fellow Subsidiary Company

Private Limited, India

DHL Lemuir Logistics - Fellow Subsidiary Company

Private Limited, India

Blue Dart Aviation - Associate Company

Limited, India

(ii) Key Management Personnel

Anil Khanna - Managing Director

5. The Provision for taxation for the year has been computed on the basis of the results for the year ended December 31,2010, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31,2011 relevant to the assessment year 2011-2012.

6. Information with regard to other matters specified in paragraphs 4C, 4D (a) and 4D(c) of Part II of Schedule VI of the Companies Act, 1956 is either Nil or not applicable to the Company for the year ended December 31,2010.

7. During the year, the Company has granted an unsecured loan of ? 1,124,458 (000) (on conversion of capital advances disclosed under loans and Advances) to Blue Dart Aviation Limited to meet its financial requirements towards infrastructure expansion for its dedicated air cargo services under the Aircraft, Crew, Maintenance, Insurance (ACMI) Agreement.

8. Previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.


Dec 31, 2009

1. Employee Benefits

The Company has classified the various employee benefits provided to employees as under:-

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers Contribution to Employees State Insurance

ii. Employers Contribution to Employees Pension Scheme 1995

During the year, the Company has recognised the following amounts in the Profit and Loss Account in Schedule 13 under "Contribution to Provident and Other Funds"-

2. Segment Information

The Company is primarily engaged in a single segment business of integrated air and ground transportation and distribution of time sensitive packages and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns.

3. Related Party Disclosures

(a) Enterprises where control exists:

Deutsche Post AG, Germany - Ultimate Holding Company

DHL Express (Singapore) - Holding Company Pte. Limited

Concorde Air Logistics Limited - Wholly owned

Subsidiary Company

DHL Express India - Fellow Subsidiary Company

Private Limited

DHL Danzas Private Limited - Fellow Subsidiary Company

Skyline Air Logistics Limited - Fellow Subsidiary Company

Blue Dart Aviation Limited - Associate Company

(bj Related party relationships where transactions have taken place during the year:

(i) Holding/Subsidiarv/Fellow Subsidiaries/Associate Company

DHL Express (Singapore) - Holding Company Pte. Limited

Concorde Air Logistics Limited - Wholly owned

Subsidiary Company

DHL Express India - Fellow Subsidiary Company Private Limited

DHL Danzas Private Limited - Fellow Subsidiary Company

Blue Dart Aviation Limited - Associate Company (ii) Key Management Personnel

Anil Khanna Managing Director

Malcolm Monteiro Director

Clyde C. Cooper Director

Christopher Ong Director

(c) Transactions with related parties during the year:

(i) With Holding/Subsidiary/Fellow Subsidiaries/Associate Company

4. The provision for taxation for the year has been computed on the basis of the results for the year ended December 31,2009, although the ultimate tax liability will be determined on the basis of the results for the year ending on March 31,2010 relevant to the assessment year 2010-2011.

5. Previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.

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