1.  Contingent Liabilities not provided for
 
                                                      Rs. in Lakhs
 
                                           Current Year   Previous Year
 
 Counter guarantees issued by the Company 
 for guarantees                               2,573.94        2,305.53
 obtained from bank
 
 Corporate guarantees issued by the 
 company on behalf of wholly                 49,828.28       19,635.90
 owned subsidiaries
 
 TOTAL                                       52,402.22       21,941.43
 
 2.  During our earlier year, the company has received Show Cause cum
 Demand notices from the Commissioner of service tax aggregating to Rs.
 6,809 Lakhs for FY 2006-07 to FY 2009-10. The Company has fled its
 reply against the said notices. There is no further communication for
 the same from the authorities. The company is advised that the said
 demand is legally unsustainable and hence the Company does not expect
 any liability in the matter.
 
 3.  No provision has been made in respect of disputed demands from
 Income-tax Authorities to the extent of Rs. 645.14 Lakhs (Rs. 37.73
 Lakhs), since the company has reasons to believe that it would get
 relief at the appellate stage as the said demands are excessive and
 erroneous.
 
 4.  Estimated amount of contracts remaining to be executed on capital
 accounts and not provided for (net of advances) as at March 31, 2011
 Rs. NIL (Rs. NIL).
 
 5.  In view of long term interest of the company in its subsidiaries
 and step down subsidiaries no provision is made for diminution in value
 of investment, if any, in these subsidiary companies and step down
 subsidiary companies.
 
 6.  a) During the year the company raised Foreign Currency Loans
 aggregating to NIL (USD NIL)
 
 b) The Company established Letters of Credit aggregating to Rs. NIL
 (Rs. 3,720.72 Lakhs). The same has been utilized for acquisition of
 vessels.
 
 7.  The company has not received any intimation from its vendors
 regarding the status under the Micro and Small Enterprises Development
 Act 2006 and hence disclosures required under the said Act have not
 been made.
 
 8.  The balance in the Exchange Earners Foreign Currency account is
 maintained in USD and shown in equivalent Indian Rupees. The balance in
 the said account as at the Balance Sheet date was USD 0.72 Lakhs
 (Previous Year USD 218.87 Lakhs)
 
 9. (a) The Ministry of Corporate Affairs, Government of India vide its
 General Notification No. S.O. 301 (E) dated February 8, 2011 issued
 under Section 211(3) of the Companies Act, 1956 has exempted certain
 classes of companies from disclosing certain information in their profit
 and loss account. The Company being a ''shipping company'' is entitled to
 the exemption. Accordingly, disclosures mandated by paragraphs 4-D (a),
 (b), (c) & (e) of Part II, Schedule VI to the Companies Act, 1956 have
 not been provided.
 
 (b) The Ministry of Corporate Affairs, Government of India, vide
 General Circular No. 2 and 3 dated February 8, 2011 and February 21,
 2011 respectively has granted a general exemption from compliance with
 section 212 of the Companies Act, 1956, subject to fulfllment of
 conditions stipulated in the circular. The Company has satisfied the
 conditions stipulated in the circular and hence is entitled to the
 exemption. Necessary Information relating to the subsidiaries has been
 included in the Consolidated Financial Statements.
 
 10.  Segment Reporting
 
 In accordance with paragraph 4 of Accounting Standard (AS) 17 ''Segment
 Reporting'', the company has disclosed segment result on the basis of
 Consolidation Financial Statements. The same are therefore not
 disclosed for stand alone financial statements.
 
 11.  Related Party Disclosures (as per Accounting Standard (AS) 18
 Related Party Disclosures''
 
 Related Party Disclosures:
 
 A List of Related Parties
 
 I Subsidiaries
 
 1 MercatorInternational Pte Limited (MIPL) -Singapore
 
 2 Mercator Oil and Gas Limited (MOGL) - India
 
 3 Mercator Petroleum Private Limited - India
 
 4 Mercator Offshore Holdings Pte Ltd (MOHPL) - Singapore
 
 5 Mercator Offshore (Nigeria) Pte Ltd - Subsidiary of MIPL
 
 6 Oorja Holdings Pte.Limited. (OHL) Singapore - subsidiary of MIPL
 
 7 Mercator PH (Dutch) Holding BV (Netherlands) - Subsidiary of MIPL
 (Liquidated during the year)
 
 8 Mercator Petroleum (Romania) Pte Ltd - Subsidiary of MIPL (Liquidated
 during the year)
 
 9 Mercator Lines Singapore Pte Ltd (MLS) - Subsidiary of MIPL
 
 10 Mercator Offshore Ltd Singapore - Subsidiary of MOHPL
 
 11 Mercator Petroleum (Turkey) BV (Netherlands) - Subsidiary of
 Mercator PH (Dutch) Holding BV (Netherlands) (Liquidated during the
 year)
 
 12 Ivorene Oil Services Nigeria Ltd. (Singapore) - Subsidary of MONPL
 
 13 Varsha Marine Pte Ltd (Singapore) - Subsidiary of MLS
 
 14 Vidya Marine Pte Ltd (Singapore) - Subsidiary of MLS
 
 15 Mercator Lines (Panama) Inc - Subsidiary of MLS
 
 16 Chitra Prem Pte. Ltd. (Singapore) - Subsidary of MLS
 
 17 Target Ship Management Pte. Ltd. (Singapore) - Subsidiary of MLS
 
 18 Oorja 1 Pte Ltd (Singapore) - Subsidiary of OHL
 
 19 Oorja 2 Pte Ltd (Singapore) - Subsidiary of OHL
 
 20 Oorja 3 Pte Ltd (Singapore) - Subsidiary of OHL
 
 21 Oorja Mozambique Limitada (Mozambique) - Subsidiary of OHL
 
 22 MCS Holdings Pte Ltd (Singapore) - Subsidiary of OHL
 
 23 Oorja (Batua) Pte. Ltd.(Singapore) - Subsidiary of OHL
 
 24 Oorja Indo Petangis Four (Indonesia) - Subsidiary of Oorja 1 Pte
 Ltd.
 
 25 Oorja Indo Petangis Three (Indonesia) - Subsidiary of Oorja 2 Pte
 Ltd.
 
 26 Oorja Indo KGS (Indonesia) - Subsidiary of Oorja 3 Pte Ltd
 
 27 Broadtec Mozambique Minas Limitada (Mozambique) - Subsidiary of
 Oorja Mozambique Limitada
 
 28 PT Mincon Indo Resources (Jakarta) - Subsidiary of Oorja Indo
 Petangis Three (Indonesia).
 
 29 Bima Gema Permata PT (Jakarta) - Subsidiary of Oorja Indo Petangis
 Three (Indonesia).
 
 30 Nusa Sakti Kencana PT (Jakarta) - Subsidiary of Oorja Indo Petangis
 Four (Indonesia).
 
 II Promoter group Companies
 
 1 MLL Logistics Private Limited
 
 2 Mercator Mechmarine Limited
 
 3 Mercator Healthcare Limited
 
 4 Ankur Fertilizers Private Limited
 
 5 Rishi Holding Private Limited
 
 6 AHM Investments Private Limited.
 
 7 Oorja Resources India Pvt Ltd
 
 8 AAAM Properties Pvt Ltd
 
 9 MMAXX Dredging Pvt Ltd
 
 10 Vaitarna Marine Infrastructure Ltd. (Erstwhile Mech Marine Engineers
 Pvt Ltd)
 
 11 Oilmax Energy Pvt Ltd
 
 12 Optimum Oil & Gas Ltd
 
 13 CMA Constructions & Properties Pvt Ltd
 
 14 OMCI Ship Management Pvt Ltd
 
 III Directors of the Company
 
 1 H.K Mittal
 
 2 A.J Agarwal
 
 3 Manohar Bidaye
 
 4 Anil Khanna
 
 5 M.G Ramakrishna
 
 6 K.R Bharat
 
 7 Kapil Garg
 
 Iv Key Management Personnel
 
 1 H.K Mittal
 
 2 AJ. Agarwal
 
 v Relative of Key Management Personnel
 
 1 Adip Mittal
 
 General Description of leasing arrangement
 
 (i) Leased Assets: Premises, Godown
 
 (ii) Future lease rentals are determined on the basis of agreed terms
 
 12.  During FY 2008-09, the company had opted for accounting the
 exchange differences arising on reporting of long term foreign currency
 monetary items in line with the notification of Ministry of Corporate
 Affairs (MCA) dated March 31, 2009, on Accounting Standard (AS)-11. In
 line with the above notification, gains / losses arising during the year
 from the effect of changes in foreign exchange rates on foreign
 currency loans relating to acquisition of depreciable capital assets,
 are adjusted to the cost of the fxed assets. The net deduction from
 fxed assets on account of the same is Rs. 385.53 Lakhs (previous year
 Rs. 11,685.99 Lakhs).
 
 13.  Derivative Instruments
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign Currency fuctuations relating to certain frm
 commitments and forecasted transactions. The use of foreign currency
 forward contracts is governed by the Company''s strategy approved by the
 Board of Directors, which provide principles on the use of such forward
 contracts consistent with the Company''s Risk Management Policy. The
 Company does not use forward contracts for speculative purposes. There
 are no outstanding Forward Exchange Contracts entered into by the
 Company as on March 31, 2011.
 
 14.  Tonnage Tax reserve
 
 In terms of section 115VT of the Income Tax Act, 1961, the company is
 required to transfer amounts out of its profit to Tonnage Tax Reserve.
 In view of NIL Income from shipping (As defned u/s 115V – I sub
 clause (i) and (ii) of Income Tax Act, 1961), there is no transfer
 during the year as well as in the previous year to the Tonnage Tax
 Reserve.
 
 15.  Previous years fgures have been regrouped / rearranged wherever
 necessary.