Aqua Logistics Limited ("the Company") is a leading international freight forwarding Company. The Company provides end to end logistics services and has emerged as one of the strongest process driven logistics companies in India.

1. Parties' account balances are subject to confirmation and reconciliation. However, in the opinion of the Board of Directors, Current Assets are expected to realize the stated values if realized in the ordinary course of business.

2. Land (Mines) acquired during the year by the company outside India for which the transfer formalities of title in the name of the company is pending due to non-receipt of requisite permissions from the concerned authorities.

3. Capital Work in Progress represents advance payment and expenses incurred on setting up storage infrastruc- ture. In view of the down turn in the economy no further expenditure was incurred during the year and the management is confident that the present estimated realisable value of these assets is more than the carrying amount of the asset in the books of the company.

4. Contingent liability not provided for in the accounts -

a) Claims against the company not acknowledged as debts- Rs.433.42 Lakhs (previous year -Rs.291.02 lakhs).

b) In respect of counter guarantees given to Banks- Rs.100 lakhs (previous year -Rs.100 lakhs).

5. The Company has not received any Memorandum (as required to be filed by the Supplier with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2013 as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year is Rs. NIL.

6. No amount is paid / payable by the Company under Section 441A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not yet been notified by the Central Government.

7. Deferred Revenue Expenditure:

The Company embarked on an advertisement Campaign and has spent Rs. 499.64 lakhs as at the year ended 31st March 2011. In the opinion of the management, the benefit of this exercise is expected to accrue over an extended period and is not exhausted during the period covered by the Statement of Profit and Loss and therefore, this expenditure has been treated as deferred revenue expenditure. The same is being charged to the Statement of Profit and Loss over a period of five years, commencing from the accounting year 2010-11. Accordingly a sum of Rs. 99.93 lakhs was written off to the Statement of Profit and Loss during the year and the balance of Rs. 199.85 lakhs is to be charged to Statement of Profit and Loss in the subsequent years.

8. No provision has been made in the accounts for the demands raised by the Income Tax Department pertaining to the Assessment Year 2009-10amounting toRs.158.88 lakhs and Assessment Year 2010-11 Rs.274.54 (March 31, 2012 Rs.291.02 lakhs/-). The same has been disputed by the Company before the Appellate Authorities and the concerned Assessing Officer respectively. Based on the decisions of the Appellate Authorities and the interpretations of the relevant provisions of the Income Tax Act, 1961, the Company is of the opinion that the demands raised are most likely to be deleted. Accordingly no provision has been made for this demand.

9. Segment Reporting

The company is engaged in only one segment of business which is International Freight Forwarding and Customs House Agency work, the risk and return of which are similar. Hence there is no requirement of Segment Reporting in accordance with Accounting Standard 17.

10. Disclosure of Related Party Transactions as per AS 18

During the year the company entered into transactions with the following related parties. Those transactions along with the related party balances as at 31st March 2013are given in the following table.

1) Related Parties where Control Exists:

a) Subsidiaries:

i) Aqua Logistics FZE

2) Key Management Personnel:

a) Mr. Harish G.Uchil - Managing Director & Chief Executive Officer

b) Mr. Rajesh G.Uchil - Whole Time Director

c) Mr. M. S.Sayad - Whole Time Director

3) Enterprises where Key Management Personnel exercise significant influence

a) Harapa International Private Limited

b) Aqua Specialized Transport Private Limited

c) Aqua Management Consulting Group Private Limited

d) Trikon Electronics Private Limited

e) Lefworld Private Limited

f) Aqua PCW Private Limited

g) Aqua Star Distribution Logistics Private Limited

4) Relatives of Key Management Personnel

a) Mr. Gopalkrishna G. Uchil

b) Mrs. ParvathiUchil

11. Previous year figures have been regrouped and reclassified wherever necessary to conform with current year's classification.

12. Figures presented are in rupees-lakhs except Share data and Earnings per Share.