GvK’ 31% August, 2016 Bombay Stock Exchange Limited National Stock Exchange of India Limited PJ Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai - 400 001 Ex Bandra East, Mumbai — 400 051. Dear Sir, ‘Sub : Un-audited Financial results as per Indian Accounting Standards (IND-AS) for the quarter ended 30" June, 2016. Ref : 1) BSE Scrip Code:532708, NSE Scrip Code: GVKPIL. 2) Regulation 33 & 52 of the SEBI (LODR) Regulations, 2015. With reference to the subject stated above, we are enclosing herewith the un-audited financial results of our company as per Indian Accounting Standards (IND-AS) for the quarter ended 30" June, 2016 along with a limited review report from the Statutory Auditors of the Company. The said results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 30" August, 2016 and 31* August, 2016. The Board Meeting commenced at 10:00 a.m and concluded at i):5fa.m Please acknowledge receipt of the above. Thanks & regards, For GVK Power & Infrastructure Ltd PV Rama Seshu AVP & Company Secretary ENERGY GVK Power & Infrastructure Limited RESOURCES Palgah House, 156-155, Sardar Pate! Road ‘Secunderabad 500 008 Telangana nda AIRPORTS ‘T+91 402790 2663/64 F+91 402790 2665 ‘TRANSPORTATION wegecom HOSPITALITY GN: L74399AP2005PLC059013 LIFE SCIENCESGVK Power & Infrastructure Limited ‘CIN: 74989 F2005PL.C059013 Registered office: Paigah House, 156-159, Sardar Fatel Road, Secunderabad-500 003 (Telangana) ‘Phome No: 040-2790 26668, Fax 40-2790 2665, Website: wor gukccom; Email: sanjeevleamar singh@gvkcom ‘Statement of unaudited Standalone Financial Results for the quarter ended June 30,2016 (fs. aks) ‘Quarter ended S.No. Particulars 30062016 eae eae (Unaudited) i Refer note 2and3 Pant 1__JNetaales income from operations = 2, 2 [Expenses [a)_ Employee nots expense wT (0) Depreciation and amortisation cxpense 3 [ta Operating and maintenance expenses zi [a Expenses for mangower service 34 [ey Travel and convevance 9) ()_ Lgl professional charges a ig) Rates and taxes 2 fn|_Other expenses a). Fair value loss on Financial instruments a alr value Though prof ca Frotal 5a 2 | [Protoss from operations before other income, Finance costs and "ana ail lexceptional items (1-2) T_ [Other income Toot od [poriy(loss) from ordinary activities before Finance costs and ° _fesceptional items (344) ez ald [Finance costs a Tao [rofiy(Loss) fom ordinary activites after Finance costs bul before 7 _Joxceptional items (56) ez os [Exceptional ems 5 7 9 [Profif(Loss) from ordinary activities before tax = 8) 2a) 3 30 [Tx expense/ (ered 057) eal 1 [loss from ordinary activities after tx @210) 6.108) (309) 12 [Evaordinary items (ot of tx expenses) = 1 _ Net Loss forthe period (3-12) E04) 3 aid-up equity share capital 4 Peace value of ware Re Yes) is ba TE Reserve excluding Revaluation Reserve as per balance sheet 11) [barnings per share (before extraordinary items) -(not anwwallsed) L) Basie (in Rs) aay (aa fey Diute! Gn Rs) 02 (0.93) Toa) [easning per share (after extraordinary items) (not annualised) hf Basic Gin Rs) a3 Tay for Dieta! Gn Rs] 032) (003)Notes: 1. The Cumnpany fas atop! ian Accounting Stauards (Ind AS) prescribed under section 133 Companies Aet, 2013, ead ‘with relevant rues sued! therourder. The date of transition of the Ind AS is Apri O, 2015 and accordingly, these unaudited financial rests have been prepares! in aecontance with the recogetion ard mcasurvevent principe laid oven in End AS 4 "nterin Financiat Reporting” and other accounting principles generally accepted in India. The impact of transition has been sccount fo in the opening reserves andthe comparative period have been winstated accor 2. The above standalone financiots results have been reviewest by the auklit committee on August 90. 2016 and have been approves by boat of directors at its meting, hell on August 31, 2016. A limited review of the standalone results for the ‘quarter end June 30,216 have bees carried out the Statutory Auditors. The financial results an other information forthe ‘quarter ended! June 30,2015 have not been audited or reviewed by the Statsory Aueitors. However, the management ‘exorisnd necessary cue cigenee to ensuee thatthe unaudited financial results provide a tne and fair view of the Compan silais 5. Thene is a possibility that these quately financil results may require adjustment before constituting the final Ind AS financial statements a of and forthe veae ending Macs 3, 2017 due to changes jn financial reporting eexuizements asin, frm the new or revise sonar or intespretations issued by MCA or changes inthe use of ane or mon’ optional exemptions from ful rtrospsctive application as permite! under Ine AS 101 4. The reconciliation of Net profit as previously reported (referred to as “Previous GAAP") and Ind ASA under: (is. Lakhs) [Pareatare ‘Quarter ended June 30,2015, |Neviass under previous GAAP. Ta [Fair value of cueront investments 2 [unwinding income on nancial asset 320, [Financial guarantee income TH [Les Tax expense on IND- AS adjustments a3 [Net Tore for the quarter under IND AS (os 5. The Company's operations fall within a single business segment “Investment, Operations, Management & Consultancy” of tnfrastructure projects and single geojraphical segment. Hence, disclosures as per Ind AS 108 "Operating Segments" are not reared to be made, (6, GVKPIL had made application for waiver ef excess managerial remuneration amounting to Rs, 21 lakhs forthe year ended ‘Match 31,2013 pai toa divectr in excess of limits prescribes under Schedule XT ofthe Companies Act, 1956. The auditors of the Company have drawn an Emphasis of Matter parapraph in ther limited review report fr the quarter. 27. The How ble Supreme Court of Inia has de-allocate coal mine allocated to GK Coal (Tokisud) Private Limited, subsidiary ‘company and Notninated Authority has offered compensation of Rs, 12,129 Lakhs as against carrying value of assets of Rs 531,738 lakhs Gune 30,2015: Rs36412 lakhs) (as per previous GAAP), Mangement Celives thatthe subsiciary’ company will be appropriately reimbursed for cancelled coal mine accordingly no provision is eequired to be made to carrying, vale of assets, The auditors of the Company have not expressed sn opinion on the recoverability of aselstopther with consequential impact if any, in theie limite review report forthe guste 5. The Company has mate investonents an has receivables aggregating to RS. 29:50 lakhs (june 30, 2013: Rs. 33,17 lak) and provided guarantees and commitments for loans amounting 49 Rs, 7B1AM lakhs (Jane 30, 2015: RS665.607 lakhs) taken by GVK Coal Developers Singapore) Pe Limited (GVK Coal) as at June 4, 2016, an entity whose net bilities exces net assets by USD 900 milion (Rs, 374,160 lakhs) as a Je 30,2015, The prices of the coal have significanly fallen since GV coal had ‘equied stake in the coal mines. GVK Coal has aot been sb to achieve financial closure resulting in delays in commencement ‘of mine development activity when compart to schedule dat, delay’ in entering into definitive agreements fort ant ail do fand the lenlers had nbriigement option on te loans either on October GVK cont isin discussion with non- controlling sharciolers ko realign the option exercise dates, looking for axklitional fusing from potential wivestors andl working with leaiers te reach to optimal solution, Management believes tht ile the prices of coal have fale, the fall in prices of other commoxities and services would offst the impact of fll in coal prices on tie projct by reducing capital and operating cost requirements and hence, GVK Coal would be able to eslablish profitable nll nt opment and agreement forsale of coal, Farther, cevtain lenders of GVK Coal have cassie the fonn as ens perfening M5 or every year theretter. ‘operations, meet its obligations and is current abilities being in excess of current assets temporary innate inpact ability oF the GVK Coal to continue in operation in Foresevabve future. The management urther Qelieves that dhe fons will not have any anaterial adverse impact ups cash flaws of the Company and according: n0 aljustient Is required to receivable, investments, share application money and guarantees and comenitotet, The nul of the Company Ihave dawn ai Emphasis of Matter paragraph in their ite movie: xport fr the quarter9. Certain subsiianies of GV Energy Limited, subsiliary company ar facing uncertainties ay dette! bolo 9) Thor has ten uncertainty regarding supplies/avaiablty’ of gas to power generating plants and passe ‘constuction ofthe Group. Furthe, subsidiaries enya! i tis business have made operational ksseso Rs 30, 2015. RS8I8 lak) in the aforementioned quarters. Further, certain banks have classified loan i subsidiary as non-performing assets. The aforesaid subsidiary is inthe process af regularization of loans by using proceeds of As disposal of Phase {plont, post which is planning te tie up for adktitional toans and another subsiciany’ has already ‘obtained moratorium for payments until mid of current year. Further, the Company is confident that Government of ia wall ‘contnge te take necessary steps/initiaives to improve the situation of natural gas for ey scheme envisaging sopping of Alomestic gosto gas based upto the target plant load factor (PLP), selected through a reverse «biking process nl aso ‘imerventios/sacfices to be collectively made by all stakeholders. Further; Management base on its rights under power purchase agement to cower capacity charges and in view of installing alternate fel eyuipment and on the Basis of aforesait Uiscussions believes the subsidiary companies wil continue to be in operation in foreseeable future despite continued losses ‘The Managemen iy believes that Fixed assets with carrying value of Rs, 195295 laklas lune 30, 2015; Rs.20859 lakhs) (as pr provious GAAP) ae recoverable in noemal course of business projets under 1 lakhs June ces of one of the 1) Uncertainty is faced by coal plant with careying vale of Rs 462.969 Tak (une 30,2015: Rs.298,876 lakhs) (os per previous GAAP] of subsidiary company towards supply of fuel. Management has obtained coal linkage for six months, tet up for Jnputing coal and is auling other options such as, obtaining coal linkage Incally and tas filed petition with Punjab State Etvicty Regulatory Conimision (PSERC) for re- negotiation of tes of power purchase agreciment such 98 rate revision approval for using imported coal eke, claiming force majeure and change in law as envisaged under Power Purchase ‘Agreement. PSERC ints interim order has allowed the subsidiary company to run the plant on imported fue for upto two and aif years within which the subsidiary company’ shoul! make aztargements for coal on long term basis. Managentent based on Jnesmal assessment / legal atvigebaoves that cancelation of coal mine will not impact the operations ofthe power prejct and accordingly believes that fined ase ofthe subsidiary company are recoverable in te normal course ofthe business, ‘The auditors ofthe Company have drawn an Euyphasis of Matter paragraph on the carcying valu of investments in subsitiany ‘companies amounting to Rs 108,325 lakhs (June 30, 2015: Rs. 108,228 lakh) in ther Tmited review for the quarter. 10, As at june 30, 2016, the Company has accumulates! losses and the Company has incurred losses uring the quarter and preceding two years, The Company has delayed payment of loans and interest and certain Joan accounts have been classified 1s nonperforming by banks. The Company has provided yuarantoes and commitments on bebalf of various entities and as further detailed in notes 7, 8 and 9 uncertainties are being facet by various projects; such as delays in development vf coal mines in an overseas project where Company has provides guarantees and commitments fr the borrowings, losses incurred by gas based plants in the absence of gas and Itigations on rights to claim capacity charge, cancellation of coa linkage 1 coal ‘based plant and renegotiation of tems of PPA of coal based plant. Notwithstanding the abuve, the financial results of the Company have been prepared on going concern basis os Management beioves that the Company woul! be abet establish profitable operations, moot its commitments, reduce debt by slake sale and the entities on whose behall guarantees/ commitments have been extended woul beable to meet ther obligations. Furth, the Management is coident that aforesaid entities wold win litigations; obtain approvals of regulators wil reach an optimal solution with non-contrling shareholders and lenders oblain requisite gas/coal allocation et. as rexjltod and despite cortent macro-economic environment challenges Would establish profitable operations. The auuitors of the Compary have drawn an Emphasis of Matter pacagraph ia tis v. kot Pace: Hyderabad Dr.G V’ Krishna Realy Date August 3, 2016 Cuaron & Managing DirectoS.R. BATLIBOI & Associates LLP Se Senspsi Sat cg ‘chartered Accountants iadar West) Nuimoar400 028, nia Tel: +9122 6192 0000 Foci #9122 6192 1000 Review Report to ‘The Board of Directors GVK Power & Infrastructure Limited 1 We have reviewed the accompanying statement of unaudited financial results of GVK Power & Infrastructure Limited (‘the Company’) for the quarter eruled June 30, 2016 (the “Statement”) attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with ‘SEBI Circular No. CIR/CFD/FAC/62/2016 datod July 5, 2016. ‘This Statement is the responsibility of the Company's management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review. We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material iisstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than au audit. We have not performed an audit and accordingly, we do not express an audit opinion. AAs discussed more fully in Note 7 to the accompanying financial results, the Hon’ble Supreme Court of India had de-allocated coal mine allocated to GVK Coal (Tokisud) Private Limited, subsidiary company and Nominated Authority had offered compensation of Rs. 11,129 lakhs as against carrying valve of assets of Rs, 31,753 lakhs in books of subsidiary. We were not made available appropriate evidence to assess the recoverability of assets together with consequential impact i any, arising out of the same in these accompanying financial results and accordingly we are unable to comment on the same. Our audit report for the year ended March 31, 2016 was qualified in respect of this matter. We draw attention to: a. Note 10 to the financial results, regarding losses being incurred by the Company, defaults fn loan andl interest payments and material uncertainties faced by various projects in which the Company had made investments or provided guarantees and comunitments. ‘These conditions indicate the existence of a material uncertsinty that may cast significant doubt about the Company's ability to continue as a going concern, These financial results, have been prepared on going concern basis for the reasons stated in the said note. b, Note 6 to the financial results, regarding application made by the Company for the ‘waiver of excess managerial rermmeration for the year ended March 31, 2013 amounting to Rs. 21 lakhs paid to a director in excess of the limits prescribed under Schedule XUL of the Companies Act, 1956, c. Note 9 to the financial results, material uncertainties are being faced by subsidiaries of GVK Energy Limited, one of the subsidiaries of the Company, in which the Company has an investment of Rs, 108,323 lakhs as detailed below: i, Uncertainty towards supplies/availability of natural gas to gas based power generating plants and power projects under construction of subsidiary companies of subsidiary company, GVK Energy Limited.S.R. BAriiBo1 & Associates LLP ii, Uncertainty towards availability of fuel and regulatory approvals faced by coal plant under construction of subsidiary company of GVK Energy Limited. d. Note 8 to the financial results, the Company has made investments and has receivables aggregating to Rs. 29,504 lakhs and provided guarantees and commitments for loans amounting to Re, 784334 lakhs taken by GVK Coal Developers (Singapore) Pte, Limited (GVK Coal) as at June 30,2016, an entity whose current liabilities exceeds current assets by USD 900 million (Rs. 574,160 lakhs) as at June 30, 2015 and is witnessing material uncertainties, The Management believes that for reasons stated in the note the entity will establish profitable operations and no adjustments are required to aforesaid investments, receivables, guarantees and commitments. ‘The ultimate outcome of the above matters cannot presently be determined, pending approvals, tcceptances, notification, legal interpretations and resolution of uncertainty around availability of 125, coal and coal prices, as referred to in the relevant notes tothe financial results referred above, accordingly no provision for any lability and /or adjustment that may resalt has been made in the financial results, Our conclusion is not qualified in respect of the aforesaid matters. 6. Based on our review conducted as above, except forthe possible effects of the our observations in para 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results prepared in accordance with recognition and measurement principles laid down in the applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act 2013, read with relevant ules issued thereunder and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 38 of the SEBI (isting Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016, including the manner in which itis to be disclosed, or that itcontains any material misstatement. per Vikas Kumar Pansari Partner Membership No.: 083649 Place: Mumbai Date: August 31, 2016