Dear Members,
 
 The Directors take pleasure in presenting the Thirteen Annual Report of
 the Company and audited accounts of the Company for the year ended 31st
 March, 2011.
 
 FINANCIAL PERFORMANCE
 
                                                    (Rupees'' in Lacs)
 
 Particulars                              Year ended       Year ended
 
                                    31st March, 2011 31st March, 2010
 
 Service Income                             22862.81         24473.49
 
 Other Operating Income                       294.70           129.96
 
 Other Income                                 317.99          1588.91
 
 Gross Income from operations               23475.50         26192.37
 
 Profit before interest, depreciation, 
 amortisation of expenses,
 exceptional items and Tax                   1278.00          7016.50
 
 Less : Interest                             2965.00          3847.03
 
 Less : Depreciation ( Net )                 2750.11          3666.63
 
 (Loss) for the year before extraordinary 
 items and before Tax                       -4437.11          -497.16
 
 Add:- Extraordinary Item – Liabilities 
 written back                                   0.00          1169.43
 
 Profit/(Loss) for the year after 
 extraordinary items and before Tax         -4437.11           672.27
 
 Less : Provision for taxation                 -0.63           -77.03
 
 Profit / Loss after tax                    -4437.74           749.30
 
 Balance of Profit/(Loss) for earlier years -4872.44         -5621.74
 
 Amount available for appropriation         -9310.18         -4872.44
 
 Balance carried forward to Balance Sheet   -9310.18         -4872.44
 
 OPERATION REVIEW:
 
 During the year under review, your Company achieved Service Income of
 Rs. 22862.81 Lacs as compared to Rs.  24473.49 Lacs of previous
 Financial Year. Total Income of Rs. 23475.50 Lacs as compared to Rs.
 26192.37 Lacs of previous Financial Year.
 
 After considering Interest, Depreciation, Foreign Exchange (Loss) /
 Gain and Extra-ordinary items, the Company has Loss Before Tax of Rs.
 4437.11 Lacs for the current year as against Profit of Rs. 672.27 Lacs
 in the previous year. After making provision for tax, the net Loss was
 Rs. 4437.74 Lacs for the current year as against Profit of Rs. 749.30
 Lacs.
 
 DIVIDEND:
 
 The Board of Directors regret inability to declare dividend in view of
 loss incurred during the year.
 
 ISSUE OF NON CONVERTIBLE CUMULATIVE REDEEMABLE PREFERENCE SHARES
 
 The Company entered into an agreement on 18 December 2009 with one of
 the group companies for conversion of outstanding lease rentals due on
 30 September 2009 amounting to USD 13.725 million (equivalent of Rs
 6,593.49 Lakhs at the exchange rate prevailing as on 30 September 2009)
 into Non Convertible Cumulative Redeemable Preference Shares. The
 agreement has been approved by the shareholders at the extraordinary
 general meeting (''EGM'') held on 1 February 2010. The Company has
 obtained the statutory approvals necessary and in exercise of the
 powers conferred vide resolutions passed in the EGM, the Company during
 the current year has issued 6,593,490 5.46% Non Convertible Cumulative
 Redeemable Preference Shares of face value of Rs. 100 each. Pursuant to
 issue of preference share, the net worth of the company stands at Rs
 3700.99 Lacs as at 31 March 2011.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956, Dr.
 Gautam Sen and Mr. R.S.S.L.N. Bhaskarudu retire by rotation in the
 forthcoming Annual General Meeting. Both of them, being eligible offer
 themselves for re-appointment.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, the Board hereby certifies and confirm that:
 
 1) in the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 2) the directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affair
 of your Company at the end of the financial year and of the profit of
 your Company for the year under review;
 
 3) the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provision of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities; and
 
 4) the directors have prepared the annual accounts on a going concern
 basis.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 Management Discussion and Analysis Report, as required under the
 Listing Agreements with the Stock Exchanges, is enclosed at Annexure-A.
 
 PARTICULARS OF EMPLOYEES
 
 Information as per Section 217(2A) of the Companies Act, 1956 read with
 the Companies (Particulars of Employees) Rules, 1975 forms part of this
 Report. As per provisions of Section 219 (1)(b)(iv) of the Companies
 Act, 1956, the Report and Accounts , excluding the statement of
 particulars of the employee under Section 217(2A) of the Companies Act,
 1956. Any shareholder interested in obtaining a copy of the statement
 may write to the Company Secretary at the Registered Office of the
 Company.
 
 AUDITORS
 
 M/s. B S R & Co., Chartered Accountants, retire as auditors of the
 Company and have given their consent for re- appointment. The
 Shareholders will be required to elect auditors for the current year
 and fix their remuneration.
 
 As required under the provisions of Section 224 of the Companies Act,
 1956, the Company has obtained a written certificate from the above
 auditors proposed to be re- appointed to the effect that their
 re-appointment, if made, would be in conformity with the limits
 specified in the said Section.
 
 The observations of the Auditors in their report read with the relevant
 to accounts are self explanatory and further explanation has been given
 under Remarks of the Auditors.
 
 FIXED DEPOSITS
 
 Your Company has not accepted any deposits from the public under
 section 58A of the Companies Act, 1956.
 
 INSURANCE
 
 The Helicopters fleet and insurable interest of your Company like
 Building, Hanger. Plant and Machinery, Furniture and Fixture, Stocks,
 Computers, Vehicles etc., are properly insured.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
 
 In view of the nature of activities which are being carried out by the
 Company, Rules 2A and 2B of the Companies (Disclosure of Particulars in
 the Report of Board of Directors) Rules, 1988, concerning conservation
 of energy and technology absorption respectively are not applicable to
 the Company.
 
 FOREIGN EXCHANGE EARNING AND OUTGO
 
 The Company earned Rs. 1,287,985,717/- (previous year Rs.
 1,373,328,412/-) in foreign exchange during the year.  The foreign
 exchange outgoes amount to Rs. 809,545,568/ - (previous year Rs.
 789,945,764/-)
 
 CORPORATE GOVERNANCE
 
 Your Company has complied with the provisions of Clause 49 of the
 Listing Agreement. A Certificate from the Practising Company Secretary
 regarding compliance of Corporate Governance as stipulated in Clause 49
 of the Listing Agreement forms a part of this Annual Report.
 
 REMARKS OF THE AUDITORS
 
 Reference is drawn to Clause no.(f) of the Auditors'' Report and
 schedule 29 of the financial statements, Company has received an order
 from the Office of the Commissioner of Customs (Preventive) confirming
 the demand for differential duty of customs alongwith penalty
 aggregating Rs 262,195,030. No provision has been made by the Company
 for the same nor the interest due thereon as at 31st March, 2011. The
 Management believes that the Company is in compliance with the relevant
 customs and other regulatory guidelines in this respect and the matter
 is being contested by the Company with the appropriate authorities.
 
 Reference is drawn to Clause no. (g) of the Auditors'' Report and
 schedule 30 to the financial statements. In this regard, Board informs
 that Company has already filed a application with Central Government
 for approval and the waiver of the excess remuneration to Whole-time
 Directors of the Company and permission of the Central Government is
 awaited. Approval of the Central Government for excess remuneration of
 Chief Executive Officer is received.
 
 Reference is drawn to Clause no.(h) of the Auditors'' Report and
 schedule 34 to the financial statements, certain customers have
 disputed taxes levied by the Company aggregating Rs.93,949,478/-
 (previous year: Rs.  84,503,378). Consequently management have not paid
 the said taxes to the authorities. No provision has been made by the
 Company in respect of the outstanding. The Management believes that
 they have strong case to collect the outstanding amount.
 
 ACKNOWLEDGEMENTS
 
 Your Directors thank the Company''s clients, vendors, investors and
 bankers for their continued support during the year. Your Directors
 place on record their appreciation of the contribution made by
 employees at all levels. Your Company''s consistent growth was made
 possible by their hard work, solidarity and support. Your directors
 also thank the Governments of Andhra Pradesh, Arunachal Pradesh, Delhi,
 Jammu and Kashmir, Gujarat, Maharashtra, Nagaland, Orissa, Pondicherry
 and Punjab for the patronage extended to your Company in mobilising
 various forward bases. Your Directors look forward to their continued
 support in the future.
 
                                      For and on behalf of the Board
 
                                      Lt. Gen. (Retd.) SJS Saighal
 
                                      Chairman
 
                                      Mr. P. Rajkumar Menon
 
                                      Whole-Time Director
 
 Place: Mumbai
 
 Date: 26th May, 2011