1. The above results were reviewed by the Audit Committee and approved by the board at its Meeting held on June 17, 2009.

2. The Company has exercised the option provided by the Notification dated March 31, 2009 Issued by Ministry of Corporate Affairs under new Para 46 of Accounting Standard 11 "The effect of changes in foreign exchange rate" to capitalize / adjust the foreign exchange differences arising on reporting of long term foreign currency monetary items (including those arising on settlement), in so far as they relate to acquisition of depreciable capital assets. The option has been exercised in respect or foreign currency loans pertaining to vessels which were in operation as at March 31, 2009. Depreciation will be provided on these adjustments Over the balance period of the assets.

The net exchange gain of Rs 7,32,65,433 which had been credited to Profit and loss account of the previous year ended March 31, 2008 has been reduced from the cost of the capital assets and debited to General reserve. Corresponding reduction in depreciation for the previous year of Rs 26,86,741 has been debited to Depreciation reserve and credited so General Reserve. Depreciation of Rs 37,79,988 has been provided less in the current year on account of the above adjustment to reserves. The exchange loss of Rs 19,03,47,754 in current year has been added to the cost of fixed asset and credited to Profit and Loss account.

Had this option not been exercised, the profit for the year would have been lower to the extent of Rs 19,41,27,742 and fixed assets would have been lower by 12,35,49,050.

3. As per FAQ Issued by The Institute of Chartered Accountants of India (ICAI) on the above Government Notification relating to Accounting Standard 11, exchange difference arising from foreign currency borrowings, to the extent they are regarded as an adjustment to the interest costs, is to be considered as ‘borrowing costs’ as per Accounting Standard 16. Had the company followed this, the profit for the year ended Mar 31, 2009, would have been lower by Rs. 142,46,121. Also the debit to opening reserve would have been more by Rs. 32,14,551. The Auditors have qualified this non-adoption of FAQ issued by ICAI. Company does not agree with this interpretation of ICAI of the notification.

4. The Company’s Subsidiary. Haytrans (India) Ltd has made a loss of Rs. 1,60,29,035 for the year ended March 31, 2009 and has a negative net worth of Rs.2,13,77.987 as on March 31, 2009. In view of the long term plans for the company, the diminution in value is considered as temporary and hence no provision is made

5. Segment Reporting

6. Previous year/period figures have been regrouped / recast, wherever necessary.

S Ramakrishnan
Chairman & Managing Director