1) Contingent liabilities:
 
 (Note no. B (3) of schedule 13 of annual accounts)
 
                                                  (Rs. in crore)
 
 Particulars                                    As at          As at
                                           31.03.2011     31.03.2010
 
 i)    Guarantees given by banks                 -              3.36
 
 ii)   Corporate guarantees on
 behalf of subsidiaries                      2,465.30       3,996.04
 
 iii)   Disputed sales tax demand
 under appeal in the Honorable
 High Court of Chennai                            -            52.20
 
 iv)  Income tax appeals before ITAT              -           117.97
 
 2) Business segment and geographical segment: (Note no. B (5) of
 schedule 13 of annual accounts)
 
 a) Business segment
 
 The Company has one primary business segment of fleet operations and
 chartering.
 
 The main operating assets represent floating fleet, which is not
 identifiable to any geographical location.
 
 There was no dilution in the earning per shares after considering
 interest on Foreign currency convertible bond of Rs. 4.42 (previous year
 nil) crore, net of tax Rs. 1.10 i (previous year nil)
 
 3) Foreign Currency Exposure :
 
 (Note no. B (9) of schedule 13 of annual accounts)
 
 a. There were no forward / options contracts entered into by the
 Company during the financial year to hedge its foreign currency
 exposures.
 
 4) Investments
 
 a) The Company has pledged its investments In equity shares of Essar
 Oil Limited amounting to Rs. Nil (previous year Rs. 2.27) crore in favour
 of lenders for loans availed by Essar Oil Limited.
 
 b) During the previous year, the Company''s investments in shares of
 Essar Logistics Limited had negative lien undertaking In favour of
 lenders for the loan availed by Essar Steel Holdings Limited. The
 investments in shares of Essar Logistics Limited have been transferred
 to Essar Shipping Limited pursuant to demerger scheme.
 
 5) Employee benefits:
 
 (Note no. B (10) of schedule 13 of annual accounts)
 
 The Company has adopted Accounting Standard (AS) 15 (Revised) Employee
 benefits'' as notified under the Companies (Accounting Standard) Rules,
 2006, with effect from 1st Aprfl, 2007.
 
 6) Related party transactions:
 
 (Note no. B (11) of schedule 13 of annual accounts)
 
 a) Holding companies :
 
 i) Essar Global Limited, Cayman Island, ultimate holding company
 
 11) Essar Shipping & Logistics Limited, Cyprus, immediate holding
 company
 
 b) Subsidiaries:
 
 i) Vadinar Oil Terminal Limited
 
 ii) Essar Logistics Limited (upto September 30, 2010)
 
 iii) Essar International Limited, Mauritius (upto September 30, 2010)
 
 iv) Energy Transportation International Limited, Bermuda (upto
 September 30, 2010)
 
 v) Energy II Limited, Bermuda (upto September 30, 2010)
 
 vi) Essar Ports & Terminals Limited, Mauritius (upto September 30,
 2010)
 
 vii) Essar Bulk Terminal Limited
 
 viii) Essar Bulk Terminal (Salaya) Limited
 
 ix) Essar Oilfields Services Limited, Mauritius (upto September 30,
 2010)
 
 x) Essar Oilfields Services FZE - Dubai (upto April 14, 2010)
 
 xi) Essar Dredging Limited
 
 xii) Essar Oilfield Services India Limited (upto September 30, 2010)
 
 xiii) Essar Paradip Terminal Limited
 
 xiv) Vadinar Ports & Terminal Limited
 
 xv) Essar Bulk Terminal Paradip Limited (w.e.f. 31st March 2011)
 
 xvi) Essar Shipping Limited (formerly known as Essar Ports & Terminal
 Limited) upto October 1, 2010
 
 c) Key management personnel:
 
 i) Mr. Rajiv Agarwal, Managing Director (w.e.f. May 27, 2010)
 
 ii) Mr. Sanjay Mehta, Managing Director (upto July 24, 2010)
 
 iii) Mr. A. R. Ramakrishnan, Whole-time Director
 
 iv) Mr. Shailesh Sawa, Wholetime Director (w.e.f. July 24, 2010)
 
 v) Mr. V. Ashok, Wholetime Director (upto May 24, 2010)
 
 d) Other related parties where there have been transactions:
 
 Enterprises commonly controlled or influenced by major shareholders /
 directors / relatives of Directors'' of the Company:
 
 i) Essar Information Technology Limited
 
 ii) Essar Agrotech Limited
 
 iii) Essar House Limited
 
 iv) Essar Infrastructure Services Limited
 
 v) Essar Steel Limited
 
 vi) Futura Travels Limited
 
 vii) India Securities Limited 
 
 viii). Essar Oil Limited
 
 ix) Aegis Limited
 
 x) Essar Steel Algoma Inc.
 
 xi) Essar Shipping & Logistics (Panama) Inc.
 
 xii) Essar Infrastructure Holdings Limited
 
 xiii) Essar Logistics Holdings Limited
 
 xiv) Essar Holdings Limited
 
 xv) Essar Investments Limited
 
 xvi) Essar Bulk Terminal Paradip Limited (till March 31, 2011)
 
 xvii) Essar Logistics Limited (w.e.f. October 1, 2010)
 
 xviii) Essar Oilfield Services limited (w.e.f. October 1,2010)
 
 xix) Essar Oilfields services India Limited (w.e.f. October 1,2010)
 
 xx) Energy II Limited (w.e.f. October 1, 2010)
 
 xxi) Energy Transportation International limited (w.e.f. October 1,
 2010)
 
 xxii) Essar Shipping Limited (w.e.f. October 1,2010)
 
 11) (Note no. B (12) of schedule 13 of annual accounts)
 
 In view of exemption from Central Government obtained by the Company
 under section 211(4) of the Companies Act, 1956 vide order number
 46/60/2011-CL-HI dated 15.02.2011, information required under
 sub-clauses (a), (b), (c) and (e) of paragraph 4-D of part H of
 schedule VI to the Companies Act, 1956, is not given.
 
 7) Remuneration to Wholetime Directors and Managing Director
 
 (Note no.B(12) of schedule 13 of annual accounts)
 
 Remuneration paid to Directors amounting to Rs.  3.66 crore is in excess
 of limits prescribed under Schedule XIII to the Companies Act, 1956 by
 Rs. 3.18 crores. The remuneration has been approved by the Remuneration
 committee and is subject to the approval of the members by a special
 resolution at the General Meeting of the Company and such other
 approvals as required by Schedule XIII (as amended) of the Companies
 Act, 1956.
 
 8) The Company has not received any intimation from the suppliers
 regarding their status under Micro, Small and Medium Enterprises
 Development Act, 2006 (the Act) and hence the disclosures required by
 the Act have not been made. The Company is making efforts to get
 confirmations from the suppliers as regards their status under the Act.
 
 9) Previous year''s figures have been regrouped / reclassified wherever
 necessary to conform to the classification of the current period.