1.  Nature of operations
 
 GVK Power & Infrastructure Limited (the Company or GVKPIL) provides
 operating and maintenance services, manpower and consultancy services
 and incidental services to owners of power plants and infrastructure
 companies. It has also acquired substantial ownership interest into
 power generating assets and companies engaged in providing
 infrastructure facilities.
 
 2.  Employee benefits
 
 The Company has a defined benefit gratuity scheme. Every employee who
 has completed five years or more of service gets a gratuity on
 retirement or termination at 15 days salary (last drawn salary) for
 each completed year of service. The scheme is unfunded.
 
 The following tables summarize the components of net benefit recognized
 in the profit and loss account and amounts recognized in the balance
 sheet for the gratuity scheme.
 
 3.  Related party transaction
 
 Disclosure as required by Notified Accounting Standard 18 (AS -18)
 Related Party Disclosures are as follows: Names of the related
 parties and description of relationship:
 
 b) Associates 
 Mumbai International Airport Private Limited **
 
 Bangalore International Airport Limited** 
 
 Seregraha Mines Limited** 
 
 ** through subsidiary Company
 
 c) Key management personnel
 
 Dr G V Krishna Reddy - Chairman & Managing Director
 
 Mr G V Sanjay Reddy - Vice Chairman
 
 Mr A Issac George - Director & CFO 
 
 Mr Krishna Ram Bhupal - Director
 
 d) Enterprises over     TAJ GVK Hotels & Resorts Limited 
 which the key           Orbit Travel & Tours Private Limited 
 management              GVK Novopan Industries Limited
 personnel exercise      GVK Technical & Consultancy Services 
                         Private Limited
 significant influence   Gautami Power (Samalkot) Private Limited 
                         (merged with GVK Gautami Power Limited)
                         Pinakini Share & Stock Broker Limited
                         GVK Projects & Technical Services Limited
                         GVK Foundation
                         GVK Employees Welfare Trust
 
 5.  Details of Loan given to subsidiaries, associates, parties in which
 directors are interested and companie under same management
 Subsidiaries: 
 
 i) GVK Gautami Power Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. Nil (Previous Year
 Rs. 155,500)
 
 The aforesaid loan was repayable on demand
 
 ii) GVK Industries Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. Nil (Previous Year
 Rs. 83,401)
 
 The aforesaid loan was repayable on demand
 
 iii) GVK Power (Goindwal Sahib) Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. 50,000)
 
 Maximum amount outstanding during the year was Rs. 50,000 (Previous
 Year Rs. 196,938)
 
 The aforesaid loan is repayable on demand
 
 iv) GVK Oil & Gas Limited
 
 Balance as at March 31, 2011 Rs. 1,522,535 (Previous Year Rs. 9)
 
 Maximum amount outstanding during the year was Rs. 1,522,535 (Previous
 Year Rs. 9)
 
 The aforesaid loan was repayable on demand
 
 v) GVK Perambalur SEZ Private Limited
 
 Balance as at March 31, 2011 Rs. 630,224 (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 630,224 (Previous
 Year Rs. Nil)
 
 The aforesaid loan was repayable on demand
 
 vi) Goriganga Hydro Power Private Limited
 
 Balance as at March 31, 2011 Rs. 430,886 (Previous Year Rs. 543)
 
 Maximum amount outstanding during the year was Rs. 430,886 (Previous
 Year Rs. 543)
 
 The aforesaid loan was repayable on demand
 
 vii) GVK Airport Developers Private Limited
 
 Balance as at March 31, 2011 Rs. 5,848,477 (Previous Year Rs.
 4,863,760)
 
 Maximum amount outstanding during the year was Rs. 8,328,477 (Previous
 Year Rs. 4,911,160)
 
 The aforesaid loan is repayable on demand
 
 viii) GVK Coal (Tokisud) Company Private Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. 102,267)
 
 Maximum amount outstanding during the year was Rs. 102,267 (Previous
 Year Rs. 140,302)
 
 The aforesaid loan is repayable on demand
 
 ix) GVK Developmental Projects Private Limited
 
 Balance as at March 31, 2011 Rs. 9,226 (Previous Year Rs. 6)
 
 Maximum amount outstanding during the year was Rs. 9,513 (Previous Year
 Rs. 102,002)
 
 The aforesaid loan is repayable on demand
 
 x) GVK Jaipur Expressway Private Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. Nil (Previous Year
 Rs. 60,000)
 
 The aforesaid loan was repayable on demand
 
 xi) GVK Transportation Private Limited
 
 Balance as at March 31, 2011 Rs. 19,143 (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 19,143 (Previous
 Year Rs. Nil)
 
 The aforesaid loan was repayable on demand
 
 Notes to Accounts
 
 (All amounts expressed in Indian Rupees Thousands unless otherwise
 stated)
 
 xii) GVK Energy Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 327,894 (Previous
 Year Rs. Nil)
 
 The aforesaid loan is repayable on demand
 
 xiii) Alaknanda Hydro Power Company Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 2,758 (Previous Year
 Rs. Nil)
 
 The aforesaid loan is repayable on demand
 
 xiv) Mumbai International Airport Limited
 
 Balance as at March 31, 2011 Rs. Nil (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 275 (Previous Year
 Rs. Nil)
 
 The aforesaid loan is repayable on demand
 
 xv) Bangalore International Airport Limited
 
 Balance as at March 31, 2011 Rs. 872 (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 872 (Previous Year
 Rs. Nil)
 
 The aforesaid loan is repayable on demand
 
 xvi) GVK Ratle Hydro Electrical Project Private Limited
 
 Balance as at March 31, 2011 Rs. 357,424 (Previous Year Rs. Nil)
 
 Maximum amount outstanding during the year was Rs. 357,424 (Previous
 Year Rs. Nil)
 
 The aforesaid loan was repayable on demand
 
 
 4.  Contingent liability
 
 a.  Direct and indirect taxes
 
 i) Income tax demand for assessment year 2008-09 for Rs. 7,298 (March
 31, 2010 Rs. Nil).
 
 ii) The Company has received a notice dated February 4, 2008 from the
 Office of the District Registrar of Assurances, Hyderabad demanding
 payment of stamp duties of Rs. 282,960 on transfer of shares to the
 shareholders of GVK Industries Limited vide the scheme of arrangement
 approved by the Andhra Pradesh High Court. The Company has obtained an
 order from the Andhra Pradesh High Court staying the above notice on
 March 13, 2008 until such further orders from the said court.
 
 Management based on its internal assessment and/or legal advice is
 confident that the cases will be decided in the Companys favour.
 
 b.  Security against loans taken by others
 
 i) During the year ended March 31, 2011 the Company has provided
 security amounting to Rs. 1,800,000 (Previous Year Rs.  6,047,918) by
 way of pledge of its investments in subsidiaries in respect of amounts
 borrowed by its subsidiaries.
 
 ii) During the year ended March 31, 2011 the Company has provided
 security by way of corporate guarantees amounting to Rs. 11,618,821
 (Previous Year 14,980,000) to subsidiaries and Rs. 144,100 to an
 associate (Previous Year Rs. 144,100).
 
 iii) During the year ended March 31, 2011 the Company has provided
 security by way of corporate guarantees amounting to Rs. 1,004,792
 (Previous Year 990,533) to GVK Projects and Technical Services Limited.
 
 Management is of the opinion that the aforesaid Companies will be able
 to meet their obligations as they arise and consequently no adjustment
 is required to be made to the carrying value of the security and
 guarantees provided.
 
 5.  Segment information
 
 In accordance with Accounting Standard 17 - Segment Reporting, segment
 information has been given in the consolidated financial statements of
 the Company and therefore no separate disclosure on segment information
 is given in these financial statements.
 
 6.  Additional information pursuant to the provisions of Paragraph 3,
 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 to the
 extent Nil or not applicable have not been disclosed.
 
 7.  Micro, small and medium enterprises
 
 The identification of micro, small and medium enterprise suppliers as
 defined under the provisions of Micro, small and medium enterprises
 development Act, 2006 is based on Managements knowledge of their
 status. There are no dues to micro, small and medium enterprises as on
 March 31, 2011.
 
 8. Dilution of investment
 
 During the current year, the Company, GVK Energy Limited (subsidiary
 Company) and certain private equity investors (investors) have
 entered into an investment agreement pursuant to which the Company has
 transferred its investments in the below mentioned subsidiaries to GVK
 Energy Limited and then diluted its stake by 18.05% in favour of the
 investors:
 
 a.  GVK Industries Limited
 
 b.  GVK Gautami Power Limited
 
 c.  GVK Coal (Tokisud) Company Private Limited
 
 d.  GVK Power (Goindwal Sahib) Limited
 
 e.  Alaknanda Hydro Power Company Limited
 
 As per the investment agreement, the Company and GVK Energy Limited has
 undertaken to conduct an initial public offering of the GVK Energy
 Limiteds equity shares (Qualified IPO or QIPO) within 60 months
 from the date of investment agreement (preferred listing period).
 
 If the GVK Energy Limited does not make a QIPO during the preferred
 listing period and no offer for sale takes place within 12 months of
 the preferred listing period, then, at any time thereafter, the
 investors will have a put option with respect to all of the securities
 held by the Investor (Put Right) on the Company and the GVK Energy
 Limited at the higher of i) 20% IRR from the date of investment to the
 date of receipt of proceeds from the investor (Put IRR) and ii) the
 fair market value of the investors shares.
 
 Provided the Put IRR shall be reduced to 15% IRR, if at least 3 private
 sector initial public offerings with an issue size of Rs.10,000,000 or
 more each have not taken place in India between the 36th month to the
 60th month from date of investment agreement.
 
 9. Previous year comparatives
 
 Previous year figures have been regrouped where necessary to conform to
 current year classification.`