Arshiya International

1.  Contingent liability not provided for in respect of:
 
 a) (i) Disputed income tax demands - Rs. 21,967,977 (Previous year
 13,541,555)
 
 (ii) Claims against the Company not acknowledged as debts - Rs.
 15,542,002 (Previous year Rs. Nil)
 
 b) (i) Guarantees issued by banks on behalf of the Company - Rs.
 100,000 (Previous year Rs. 1,700,000)
 
 (ii) Guarantees given to banks in respect of loan facilities granted to
 its wholly owned subsidiarycompany, Arshiya Rail Infrastructure Limited
 - Rs. 608,800,000 (Previous year Rs. Nil)
 
 (iii) Amount outstanding towards Letters of Credit given to bank - Rs.
 544,341,168 (Previous Year Rs. 31,788,099)
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances paid) - Rs.
 2,253,232,067 (Previous year Rs. 3,130,823,325).
 
 3.  The Company has not received any intimation from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006 and hence the disclosures, if any, relating to
 amounts unpaid as at the year end together with interest payable as
 required under the said Act have not been given.
 
 4.  In the opinion of the management, the current assets, loans and
 advances and current liabilities are approximately of the value stated,
 if realised / paid in the ordinary course of business. The provision
 for all known liabilities is adequate and is not in excess of amounts
 considered reasonably necessary.
 
 5.  a) Income from logistics operations and related services mainly
 comprises of freight and forwarding income, clearing and
 handling charges, other related income and also includes related
 commission income of Rs. 159,991,786 (Previous year Rs.  68,380,894)
 
 b) Cost of logistics operations and related services mainly comprises
 of freight and forwarding expenses, clearing and handling charges and
 other related expenses
 
 6. During the year ended March 31, 2007, the Company had allotted
 750,000 equity warrants of Rs. 500 each (Rs. 50 received upfront)
 convertible into five equity shares of Rs. 2 each at a premium of Rs 98
 per equity share on a preferential basis. During the year, 349,700
 (Previous year 400,300) equity warrants have been converted into
 1,748,500 (Previous year 2,001,500) equity shares on receipt of balance
 consideration of Rs. 90 per equity share.
 
 7.  Employee Stock Option Plan (ESOP)
 
 The Company has established Arshiya Stock Option Plan 2007 for a
 grant of Options to the employees of the Company and its subsidiaries
 convertible into One Equity Shares of Rs. 2 each. These Options vest
 over a period of 36 months from the date of grant and are to be
 exercised within a maximum period of 12 months from the date of
 vesting.
 
 8.  Advances recoverable in cash or kind include an advance of Rs. Nil
 (Previous Year Rs. 49,999,998) towards subscription of shares in a
 company.
 
 9.  Sundry Debtors include unbilled revenue of Rs. 34,091,733
 (Previous year Rs. 45,917,758) as revenue recognised for which services
 had been performed but billed in the subsequent year.
 
 10.  Disclosure pursuant to Accounting Standard 15 (Revised) - Employee
 Benefits The disclosures as required as per the revised AS 15 are as
 under:
 
 a) Brief descriptions of the plans:
 
 The Company has various schemes for long-term benefits such as
 provident fund and gratuity. The Companys defined contribution plan is
 provident fund since the Company has no further obligation beyond
 making the contributions. The Companys defined benefit plans include
 gratuity. The employees of the Company are also entitled to leave
 encashment as per the Companys policy.
 
 b) Defined contribution plan (Provident fund):
 
 Amount of Rs. 4,499,456 (Previous year Rs. 3,461,406) is recognised as
 expenses and included in Employees Remuneration - Schedule 14 in the
 Profit and Loss Account
 
 11.  Segment information:
 
 Primary segment information
 
 The Company operates in three primary reportable business segments,
 i.e. Logistics operations and related services, Container freight
 station (CFS)/ Free trade warehousing (FTW) operations and Rail
 transport operations as per the definition under Accounting Standard
 17 - Segment Reporting as specified in the Companies (Accounting
 Standards) Rules, 2006. During the year, (Refer Note 27) Rail
 transport operations was transferred to wholly owned subsidiary,
 Arshiya Rail Infrastructure Limited.  The Company is in the process of
 setting up facilities for commencement of commercial operations in
 relation with CFS and FTW operations as at the year end. The Companys
 other business segments are not reported as separate reportable segment
 as
 
 12.  There is no amount due and outstanding to be credited to Investor
 Education and Protection Fund as at the year end. These amounts shall
 be credited and paid to the fund as and when due.
 
 13.  Related party disclosures, as required by Accounting Standard 18
 Related Parties Disclosures (AS 18) as specified in the Companies
 (Accounting Standards) Rules, 2006 are given below:
 
 a.  Subsidiary companies
 
 Arshiya Hong Kong Limited, Hong Kong
 
 Cyberlog Technologies International Pte Limited, Singapore
 
 Arshiya Logistics Infrastructure Limited
 
 Arshiya Distripark Limited
 
 Arshiya Rail Infrastructure Limited (with effect from April 7, 2008)
 
 Arshiya International Singapore Pte Limited, Singapore (with effect
 from July 10, 2008)
 
 Flat World Processes Limited (Upto March 30, 2009)
 
 Genco (India) Private Limited
 
 b.  Subsidiaries of subsidiary companies
 
 BDP Qatar WLL (Subsidiary of Arshiya Hong Kong Limited, Hong Kong)
 
 BDP Dubai LLC (Subsidiary of Arshiya Hong Kong Limited, Hong Kong)
 
 Arshiya Logistics LLC, Oman (Subsidiary of Arshiya Hong Kong Limited,
 Hong Kong)
 
 Cyberlog Technologies (UAE) FZE (Subsidiary of Cyberlog Technologies
 International Pte Limited, Singapore)
 
 Cyberlog Technologies Inc. USA (Subsidiary of Cyberlog Technologies
 International Pte Limited, Singapore)
 
 Cyberlog Technologies Hong Kong (Subsidiary of Cyberlog Technologies
 International Pte Limited, Singapore)
 
 Cyberlog Technologies India Private Limited (Subsidiary of Cyberlog
 Technologies International Pte Limited, Singapore) (with effect from
 April 1, 2008)
 
 Arshiya Eastern Logistics Infrastructure Limited (Subsidiary of Arshiya
 Logistics Infrastructure Limited) (with effect from June 21, 2008)
 
 Arshiya Western Logistics Infrastructure Limited (Subsidiary of Arshiya
 Logistics Infrastructure Limited) (with effect from January 29, 2008)
 
 Arshiya Northern Logistics Infrastructure Limited (Subsidiary of
 Arshiya Logistics Infrastructure Limited) (with effect from June 16,
 2008)
 
 Arshiya Southern Logistics Infrastructure Limited (Subsidiary of
 Arshiya Logistics Infrastructure Limited) (with effect from June 21,
 2008)
 
 Arshiya Central Logistics Infrastructure Limited (Subsidiary of Arshiya
 Logistics Infrastructure Limited) (with effect from June 21, 2008)
 
 Arshiya Central Distripark Limited (Subsidiary of Arshiya Distripark
 Limited) (with effect from June 21, 2008)
 
 Arshiya Eastern Distripark Limited (Subsidiary of Arshiya Distripark
 Limited) (with effect from June 23, 2008)
 
 Arshiya Western Distripark Limited (Subsidiary of Arshiya Distripark
 Limited) (with effect from June 21, 2008)
 
 Arshiya Northern Distripark Limited (Subsidiary of Arshiya Distripark
 Limited) (with effect from May 30, 2008)
 
 Arshiya Southern Distripark Limited (Subsidiary of Arshiya Distripark
 Limited) (with effect from June 21, 2008)
 
 c.  Key management personnel
 
 Mr. Ajay S Mittal - Chairman & Managing Director Mrs. Archana A. Mittal
 - Whole Time Director
 
 d.  Enterprise owned or significantly influenced by key management
 personnel or their relatives
 
 Bhushan Steels Limited
 
 Note:
 
 The related party relationships have been determined by the management
 on the basis of the requirements of the AS-18 and
 
 the same have been relied upon by the auditors.
 
 14.  Other liabilities include an advance of Rs. 250,000,000 (previous
 year Rs. Nil) received from Arshiya Rail Infrastructure Limited towards
 advance for land.
 
 15.  During the year, the Company has entered into the Memorandum of
 Understanding for transfer of its Concession Agreement, i.e. the pan
 India railway license, to Arshiya Rail Infrastructure Limited, wholly
 owned subsidiary of the Company. The Company has transferred the
 Concession Agreement for a total consideration of Rs. 500,000,000 being
 cost to the Company. The Company has also entered into another
 Memorandum of Understanding with Arshiya Rail Infrastructure Limited
 for transfer of land for a total cost of Rs. 121,913,412 including the
 cost of land development incurred by the Company. As at the balance
 sheet date, above land is in the name of the Company and the Company is
 in the process of transferring the land in the name of the Arshiya Rail
 Infrastructure Limited.
 
 16.  The Company has long term investment of Rs. Rs. 8,160,000
 (Previous year Rs. 8,160,000) in Genco (India) Private Limited
 (Genco), a subsidiary of the Company. The Company has also given
 loans and advances of Rs. 22,512,082 (Previous year Rs.  10,476,732) to
 the said subsidiary. As at the balance sheet date, Net worth of the
 Genco is eroded. The Investments are strategic in nature and having
 regard to the future business plan and projected profitability,
 management perceives the erosion in the value of investment in Genco as
 only a temporary diminution in value. Hence, no provision for
 diminution in value is considered necessary in respect of the Companys
 investment in Genco or of the loans and advances given to Genco.
 
 17.  During the year, the Company has transferred its business of
 software and its related services to Cyberlog Technologies India
 Private Limited, subsidiary of Cyberlog Technologies International Pte
 Limited, Singapore, wholly owned subsidiary of the Company. Hence the
 current years figures are not strictly comparable with previous year
 figures.
 
 18.  The figures for the previous year have been regrouped where
 necessary to conform to current year classification.