Notes to Accounts of Sanco Trans Ltd.

Mar 31, 2018

1.Non - Current Financial Assets - Loans

(Unsecured, considered good unless otherwise stated)

Loans to related parties (Refer Note . 39 and 41)

12.3 Rights, Preferences and Restrictions attached to shares The holders of Equity shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the Shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 2013

Notes :

A. General reserve is created from time to time by transferring profits from retained earnings can be utilized for the purpose such as dividend payout, bonus issue, etc..

B. In respect of the year ended March 31,2018, the Board of Directors has proposed a dividend of Rs. 0.9 per equity share subject to approval by the shareholders at the ensuing Annual General Meeting. Revaluation reserve of Rs. 4,660.00 lakhs transferred to retained earnings on transition date (April 1,2016) in terms of Ind AS 101 may not be available for distribution of dividend.

Notes:

14.1 Refer Note. 20(a) for current maturities of non - current borrowings.

14.2 Security details for borrowings in Note 14 and 20(a)

(a) Loan sanctioned of Rs .900 Lakhs for construction of warehouse was secured by Land belonging to an enterprise which has a significant influence on the company and is further secured by personal guarantee of three directors.

(b) Loan Sanctioned of Rs. 1,383 lakhs from Bank for acquisition of Land and building - Head Office is secured by the said immovable property and guaranteed by three directors

(c) Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital

assets and guaranteed by Deputy Managing Director.

14.3 For other terms of the borrowings ; Refer Note .50

19.1 The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

Notes:

18.1 Security details :

- Cash credit facility is secured by first charge on the book debts and other movable assets both current and future of the company, land and structures thereon at Container Freight Station and guaranteed by three Directors.

23.1 Warehouse earnings is net of incentives/ rebates/ trade discounts of Rs. 977.31. lakhs (2016-17 Rs.796.76 lakhs)

23.2 Tax deducted at source on Revenue from operations Rs. 210.04 lakhs (2016-17 Rs 57.44 lakhs);

26.1 Contribution to Defined Contribution Plans, recognized as expense for the year is as under

a) Employer''s Contribution towards provident fund Rs. 58.50 lakhs (2016-17, 51.27 lakhs)

b) Employee''s welfare expenses includes contribution to Employee''s Sate Insurance Plan Rs. 12.55 Lakhs (2016-17

2. Notes :

A Under previous GAAP, the fixed assets of the Company were revalued and revaluation reserve was created. Under Ind AS, the company has adopted previous GAAP carrying values as deemed cost for PPE as on transition date and accordingly revaluation reserve has been transferred to retained earnings.

B Under previous GAAP, proposed dividends were recognized as a provision in the financial statements, even if declared after the balance sheet date. Under Ind AS, dividends are recognized when declared. This resulted in a timing difference and has been reflected in total equity of the relevant financial year.

C Under Ind AS, deferred taxes are recognized relating to Ind AS adjustments including deferred taxes measured using balance sheet approach. The effect of these are reflected in total equity and profit or loss.

D Under previous GAAP, actuarial gains and losses on employee defined benefit obligations were recognized in profit or loss. Under Ind AS, the actuarial gains and losses on re-measurement of net defined benefit obligations are recognized in other comprehensive income. This resulted in a reclassification between profit or loss and other comprehensive income.

E Under previous GAAP, there was no separate record in the financial statements for Other Comprehensive Income (OCI). Under Ind AS, specified items of income, expense, gains and losses are presented under OCI.

F Under previous GAAP, unamortized loan raising expenses are disclosed under other current assets. Under Ind AS, balance remaining as on April 1,2016 has been transferred to retained earnings.

3. Deferred tax liability on 01.04.2016 on immovable property revalued as at March 31,2009 was recognized by adjustment in Retained Earnings. Consequently, the reversal to the extent of such liability in FY 2016-17 is also recognized in Retained Earnings in terms of Paragraph 61A of Ind AS 12. No deferred tax asset on such other immovable property is recognized given that lands may never be sold or sold in the very distant future by which time either tax laws may have changed or the company may have tax losses with the benefit of indexation not being realized.

4. Events after the Reporting Period

The Board of Directors have recommended dividend of Rs. 0.90 per fully paid up equity share of Rs. 10 each, aggregating Rs. 16.2 lakhs for the financial year 2017-18, which is based on relevant share capital as on March 31,2018. The actual dividend amount will be dependent on relevant share capital outstanding as on the record date/ book closure.

35.2. Business Combinations : There is a propsal to merge a 100% subsidiary( Sanco Transport Limited) with the Company with the Appointed date as March 1, 2018. The Merger Scheme will be given effect to upon requisite approvals being obtained.

5. Segment information - The Company''s Operating segment is identified based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in Logistics - Operating Segment.

6. Information about major customers - Disclosure of amount of revenues from transactions with single customer amount to 10 % or more of Company revenue.

7. Related Parties as per Ind AS 24 with whom the company has had transactions #

(i) List of Related Parties

(a) Key Management Personnel (KMP)

Shri V Upendran - Managing Director

Shri S Sathyanarayanan - Deputy Managing Director

Shri U Udayabhaskar Reddy - Whole time Director

Shri S R Srinivasan - Director - Finance

(b) Enterprise where significant influence is exercised on the Company Sudharsan Logistics Private Limited (SLPL)

(c) Fully owned Subsidiaries

Sanco Transport Limited Sanco Clearance Limited

(d) Entity which is Post Employment Benefit Plan :

Sanco Trans Limited Employees Group Gratuity Trust Fund

(e) Entities in which KMP has control Sakthi Hitech Constructions Pvt Ltd

(f) Relative of KMP

Srimathi - Devaki Santhanam

* Managerial Remuneration above does not include gratuity benefit since the same is actuarially computed for all the employees and the amount attributable to the managerial personnel cannot be ascertained separately.

# The above transactions do not include reimbursement of expenses

As per section 149(6) of the Companies Act,2013, Independent Directors are not considered as “Key Managerial Personal”. Also considering the roles and functions of independent directors stated under Schedule IV of the Companies Act, 2013, they have not been disclosed as KMP for the purpose of disclosure requirements of Ind AS -24 “Related - Parties”

8. Related Parties with whom the company has not had any transactions

(i) Entities in which KMP has control : 1. Premium Mint and Herb Pvt Ltd , 2. Sanco Estates and Farms Pvt Ltd , 3. Shreyas Wheels Pvt Ltd, 4. The Nellikuppam Industires,5. Sri Sathyanaraynan & Co.

9. Disclosures required by Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 (4) of the Companies Act,2013.

10. Corporate Social Responsibility (CSR) Obligation:

The Provisions of section 135 of Companies Act 2013,(Corporate Social Responsibility) are not applicable to the company for current and previous financial year.

11 Foreign Currency Transactions

Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs. 3.48 lakhs (2016-17 Rs 9.28 lakhs); (ii) Other expenditure in foreign currency Rs. 1.26 lakhs (2016-17 Rs. 2.45 lakhs); (iii) Other earnings in foreign exchange Rs. 83.51 lakhs (2016-17 Rs.31.85 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instruments are as under:

Amount receivable on account of services rendered, advances, etc. US$ . 17,382.71 equivalent Rs. 11.33 lakhs (March 31, 2017 US $ 8,673.15 equivalent Rs 5.52 lakhs); Amount payable on account of services obtained US $ . 3,541.64 equivalent Rs. 2.31lakhs (March 31,2017 US $ 3,827.66 equivalent Rs. 2.48 lakhs).

12. The Company has taken land under operating lease for which lease rent of Rs.275.64 lakhs paid has been included in Other expenses note no. 28

Note:

Assets to be represented by positive numbers Liabilities to be represented by negative numbers

13. Financial risk management objectives and policies

The Company''s principal financial liabilities, comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments.

The Company is exposed to market risk, credit risk, and liquidity risk. The Company''s risk management is undertaken by the senior management under the guidelines and framework approved by the financial risk committee. The committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives which is reviewed and adopted by The Board of Directors for managing each of these risks, which are summarized below.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include Long term borrowings, Advances and deposits.

i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). Since the value of foreign currency exposed risk is not material, the Company has natural hedging where

ii) Interest rate risk

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings

The sensitivity analysis below has been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents Management''s assessment of the reasonably possible change in interest rates. If interest rates had been 25 basis points higher/ lower, the Company''s profit for the year ended March 31, 2018 would decrease/ increase by Rs. 0.65 lakhs (2016-17: decrease/ increase by Rs. 0.85 lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

iii) Other Price risk

There is no security price risk since there are only investments in wholly owned subsidiaries.

B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, resulting in a financial loss to the Company. Credit risk arises from outstanding trade receivables and from its financing activities, including deposits with banks and institutions and investments.

Customer credit risk is managed by each business unit based on the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. The Company has customer base across diverse industries.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company makes an allowance for doubtful debts using expected credit loss model and on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

C) Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank loans . Rs. 598.33 lakhs of the Company''s borrowing will mature in less than one year at 31 March 2018 (31 March 2017: 649.07 lakhs; 01 April 2016: Rs. 765.46 lakhs ) based on the carrying value of borrowings reflected in the financial statements. The Company has obtained fund and non-fund based working capital limits from banks. The Company invests its surplus funds in bank fixed deposit which carry minimal mark to market risks.

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March 2018.

D) Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company''s objective when managing capital are to ensure their ability to continue as going concern, so that they can leverage maximize returns for shareholders and benefits of other stakeholders; and to maintain an optimal capital structure to reduce cost of capital. Capital management and funding requirements is met through equity, internal accruals and long and short term debt instruments. The Company monitors capital management though gearing ratio which considers Debt (net of cash and cash equivalents) and equity.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Post Employment Obligations:

48.a. Defined Contribution plan

The Company has certain defined contribution plans. Contributions are made to provident fund in India for the employees at the rate of 12% of the basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation so the company is restricted to the amount contributed and it has no further contractual or constructive obligation. The expense recognized during the period towards defined contribution plans Rs. 58.50 lakhs

48.b. Defined benefit plans Gratuity

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and present value of the defined benefit obligation were carried out as at March 31,2018. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. The following table sets forth the status of Gratuity Plan of the Company and the amount recognized in the Balance Sheet and the Statement of Profit and Loss. The Company provides the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss. The Company provide the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The estimate of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

The current service cost and the net interest on Net Defined Benefit Obligations for the year are included in contribution to provident and other funds” under employment benefits expense in profit or loss (Refer Note. 24 (b))

14. Revenue from Contract with Customers - IND AS 115

On March 28, 2018, the MCA notified the Ind AS 115. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The effective date for adoption of Ind AS 115 is financial period beginning on or after April 1, 2018.

- The Company will adopt the standard on April 1, 2018 by using the cumulative catch - up transition method and accordingly, comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS is expected to be insignificant.

15. Foreign currency transactions and advance consideration - Appendix B to Ind AS 21

On March 28, 2018, the Ministry of Corporate Affairs (''the MCA'') notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

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Mar 31, 2016

1) The holders of Equity Shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the Shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 2013.

2 (i) Loan for acquisition of capital assets under deferred payment scheme is secured by

hypothecation of related capital assets and guaranteed by Deputy Managing Director;

(ii) Loan Sanctioned for Rs.1,383 lakhs from a Bank for acquisition of immovable property(Note 1.3 and Note 1.8(a)) is secured by the immovable property (comprising Land and Building situated at Chennai) and is guaranteed by three Directors;

(iii) Loan Sanctioned for Rs. 900 Lakhs (March 31, 2015 Rs. 900 Lakhs) (Note 1.3(i) and Note

3. (a)) for construction of warehouse is secured by commercial property belonging to an enterprise which has a significant influence on the Company and is further secured by personal guarantee of three Directors and

(iv) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

4. Balance with banks in deposit accounts in Note 1.14(i) to the Balance Sheet includes Rs.413.25 lakhs (March 31, 2015 Rs.445.30 lakhs ) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

5 Capital expenditure commitments (net of advances) Rs. Nil (March 31, 2015 Rs. 7.00 lakhs)

6. Contingent liabilities - Claims against the Company not acknowledged as debts:

- Taxes Rs. 161.63 lakhs (2015 Rs. 348.15 lakhs).

- Bank guarantee Rs. 556.60 lakhs (2015 Rs. 541.81 lakhs).

- Others Rs 35.88 lakhs (2015 Rs.32.22 lakhs).

Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

7. (a) Warehouse earnings in Note 2.1 is net of incentives/ rebates/ trade discounts of Rs.1,017.72

lakhs (2014-15 Rs.913.55 lakhs)

(b) Tax deducted at source on (i) Revenue from operations Rs. 161.61 lakhs (2014-15 Rs 115.27 lakhs); (ii) Interest income Rs. 19.19 lakhs (2014-15 Rs 4.68 lakhs).

8. (i) Depreciation for the year computed on revalued assets in excess of the depreciation

computed under the method followed by the Company prior to revaluation is transferred from Revaluation reserve to the General Reserve in terms of the Application on Guide on the provisions of schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India.

(ii) Useful life of Tangible and Intangible Assets:

a) Useful life lower than that derived from the rates specified in Schedule II to the Companies Act, 2013.

(iii) The Company had during the earlier year adopted the useful life prescribed in Schedule II to the Companies Act, 2013 with regard to charging / amortizing depreciation on its Fixed assets. In terms of Note 7 to the said Schedule, the carrying amount of the fixed assets as at April 1, 2014:

(a) is depreciated over the remaining useful life of the asset as per Schedule II and

(b) where the remaining useful life of an asset was Nil, was recognized in the opening balance of retained earnings as at April 1,2014.The amount so recognized aggregated to Rs. 17.36 lakhs (Net of Deferred tax of Rs. 5.56 lakhs).

The effect of change in useful life as above on the profit for the earlier year, was a higher charge of depreciation of Rs. 52.40 lakhs and consequent lower profit for the said year by the said amount.

9. Corporate Social Responsibility Obligation:

Gross amount required to be spent by the Company during the year: Rs. 13.75 Lakhs

10. Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs. Nil (201415 Rs Nil); (ii) Other expenditure in foreign currency Rs.7.65 lakhs (2014-15 Rs. 15.06 lakhs);

(iii) Other earnings in foreign exchange Rs.28.14 lakhs (2014-15 Rs. 15.24 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders;

(v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instruments are as under:

Amount receivable on account of services rendered, advances, etc. US$ 5,860.87 equivalent Rs.3.89 lakhs (March 31, 2015 US $10,780.56 equivalent Rs 6.71 lakhs); Amount payable on account of services obtained US $ 2,339.58 equivalent Rs.1.57 lakhs (March 31,2015 US $ 4,263 equivalent Rs. 2.69 lakhs).

11. (i) The Company has complied with the revised Accounting Standard 15-Employee benefits.

Accordingly provision of Rs. Nil has been made for the incremental liability towards gratuity for the year ended March 31,2016 (2014-15 Rs. 6.79 lakhs).

(ii) Defined benefit plan - Gratuity: As per actuarial valuation on March 31, 2016. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate: 8%(March 31, 2015 - 8%); (b)Salary escalation rate: 8% (March 31, 2015 - 8%); (c) Mortality rate: as per LIC (1994-96) Mortality Table; (d) Attrition rate: 1% - 3% (March 31, 2015 1% -3%); Method of valuation: Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year, the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b) - Contribution to provident fund Rs.51.22 lakhs, (2014-15 Rs 53.35 lakhs), Contribution towards gratuity (Rs.5.96 lakhs) (2014-15 Rs 6.79 lakhs), Employees'' welfare expenses includes contribution to employees'' state insurance plan Rs.9.42 lakhs (2014-15 -Rs 9.98 lakhs).

(v) Note 2.6(m)-Others under other expenses include Fees to auditors for audit Rs. 6.00 Lakhs (2014-15 Rs. 4.00 Lakhs) which is an all inclusive fees covering statutory audit, tax audit and othe certification work and Service tax thereon.

12. Segment information - The Company''s primary segment is identified as business segment based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

13. Related party transactions (i) List of Related Parties

(a) Key management personnel ( as per Accounting Standard 18'' Related Parties)

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Whole time Director

(iv) Shri S R Srinivasan - Director-Finance

(b) Enterprise where significant influence is exercised on the Company

- Sudharsan Logistics Private Limited (SLPL)

(c) Fully Owned Subsidiaries

- Sanco Transport Ltd

- Sanco Clearance Ltd

14. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

15. Details of terms of Secured Loans - Refer separate statement annexed

16. Comparative figures relating to the previous year have been reclassified /regrouped /amended, wherever necessary.

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Mar 31, 2015

1. (i) Loan for acquisition of capital assets under deferred payment scheme is secured byhypothecation of related capital assets and guaranteed by Deputy Managing Director;

(ii) Loan Sanctioned for Rs.1,383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a)(ii) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situated at Chennai) and is guaranteed by three Directors

(iii) Loan Sanctioned for Rs. 900 Lakhs(March 31, 2014 Rs. 810 Lakhs) (Note 1.3 (a) (i) and Note 1.7(a)) for construction of warehouse is secured by commercial property belonging to an enterprise which has a significant influence on the Company and is further secured by personal guarantee of three Directors and

(iv) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

2. Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs.445.30 lakhs (March 31, 2014 Rs. 389.90 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

3. Capital expenditure commitments (net of advances) Rs.7.00 lakhs (March 31, 2014 Rs. 137.04 lakhs)

4. Contingent liabilities - Claims against the Company not acknowledged as debts:

* Taxes Rs. 348.15 lakhs (2013-14 Rs. 301.46 lakhs).

* Bank guarantee Rs. 541.81 lakhs (2013-14 Rs 589.96 lakhs).

* Others Rs. 32.22 lakhs (2013-14 Rs.13.00 lakhs).

Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

5. Directors' remuneration - Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs.95.40 lakhs (2013-14 Rs. 94.60 lakhs), Allowances Rs.15.30 lakhs (2013-14 Rs. 15.10 lakhs), Contribution to Provident fund Rs. 11.45 lakhs (2013-14 Rs. 11.35 lakhs), Perquisites Rs.0.44 lakhs(2013-14 Rs. 1.81 lakhs). Total Rs.122.59 lakhs (2013-14 Rs. 122.24 lakhs).

6. (a) Warehouse earnings in Note 2.1 is net of incentives/ rebates/ trade discounts of Rs.913.55 lakhs (2013-14 Rs 1041.46 lakhs)

(b) Tax deducted at source on (i) Revenue from operations Rs. 115.27 lakhs (2013-14 Rs 189.85 lakhs); (ii) Interest income Rs. 4.68 lakhs (2013-14 Rs 4.05 lakhs).

7. (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.70 lakhs (2013-14 Rs 8.70 lakhs) being the excess over the depreciation computed under the method followed by the Company prior to revaluation. The same has been transferred from Revaluation reserve,

(a) To the General Reserve for the current year in terms of the Application on Guide on the provisions of schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India,

(b) To the Statement of Profit and Loss for the earlier year.

This change in the current year has the effect of a higher charge of depreciation of Rs. 8.70 lakhs and consequent lower profit for the year by the said amount.

8. The Company has during the year changed its accounting policy to charge depreciation, in respect of assets sold/ disposed during the year, upto the date of such sale/ disposal. This change in accounting policy is in consonance with Note 2 to Schedule II to the Companies Act, 2013. There is no effect on the profit of the year due to the said change.

9. The Company has during the year adopted the useful life prescribed in Schedule II to the Companies Act, 2013 with regard to charging / amortising depreciation on its Fixed assets. In terms of Note 7 to the said Schedule, the carrying amount of the fixed assets as at April 1, 2014:

(a) is depreciated over the remaining useful life of the asset as per Schedule II and

(b) where the remaining useful life of an asset is Nil, is recognized in the opening balance of retained earnings as at April 1,2014.The amount so recognized aggregates to Rs. 17.36 lakhs.

The effect of change in useful life as above on the profit for the year, is a higher charge of depreciation of Rs. 52.40 lakhs and consequent lower profit for the year by the said amount.

10. Foreign exchange and foreign currency transactions and derivatives -

(i) Imports - Rs. Nil (2013-14 Rs Nil);

(ii) Other expenditure in foreign currency Rs.15.06 lakhs(2013-14 Rs. 28.12 lakhs);

(iii) Other earnings in foreign exchange Rs.15.24 lakhs (2013-14 Rs. 29.11 lakhs);

(iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instruments are as under:

Amount receivable on account of services rendered, advances, etc. US $ 10,780.56 equivalent Rs.6.71 lakhs (March 31, 2014 US $ 2627 equivalent Rs 1.60 lakhs); Amount payable on account of services obtained US $ 4,263 equivalent Rs.2.69 lakhs (March 31,2014 US $ 5435.71 equivalent Rs. 3.36 lakhs).

11. Computation of earnings per share: (i) Profit for the year after tax Rs. 235.67 lakhs(2013-14 Rs. 416.27 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2014 - 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i)-(ii) Rs. 13.09 (2013-14-Rs. 23.13)

12. Deferred tax - liabilities comprises tax effect of (i) timing differences relating to depreciation Rs.274.11 lakhs (March 31,2014 Rs. 357.50 lakhs); (ii) others Rs.1.94 lakhs (March 31,2014 Rs. 2.63 lakhs).

13. (i) The Company has complied with the revised Accounting Standard 15-Employee benefits. Accordingly provision of Rs.6.79 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2015 (2013-14 Rs. 30.14 lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31, 2015. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31, 2014 - 8%); (b)Salary escalation rate 8% (March 31, 2014 - 8%); (c) Mortality rate as per LIC (1994-96) Mortality Table: (d) Attrition rate 1 - 3% (March 31, 2014 1 - 3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b) - Contribution to provident fund Rs.53.35 lakhs,(2013-14 Rs 50.24 lakhs), Contribution towards gratuity Rs.6.79 lakhs (2013-14 Rs 30.14 lakhs), Employees' welfare expenses include contribution to employees' state insurance plan Rs.9.98 lakhs ( 2013-14 -Rs 9.92 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors for audit Rs. 4.00 Lakhs (2013-14 Rs. 3.93 Lakhs) which is an all inclusive fees covering statutory audit, tax audit and other certification work and Service tax thereon.

14. Segment information - The Company's primary segment is identified as business segment based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

15. Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan - Director-Finance

(2) Associate Company - Enterprise where significant influence is exercised on the company

* Sudharsan Logistics Private Limited

(3) Fully Owned Subsidiaries

* Sanco Transport Ltd

* Sanco Clearance Ltd

16. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

17. Details of terms of Secured loans- Refer separate statement annexed.

18. Comparative figures relating to the previous year have been reclassified /regrouped/ amended wherever necessary.

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Mar 31, 2014

1) The holders of Equity Shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the Shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 1956.

1.1 (i) Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director; (ii) Loan Sanctioned for Rs.1383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a)(ii) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situate at Chennai) and is guaranteed by three Directors (iii) Loan Sanctioned for Rs. 810 Lakhs(March 31,2013 Rs. 450 Lakhs) (Note 1.3(a)(i) and Note 1.7(a)) for construction of warehouse is secured by commercial property belonging to an associate Company and is further secured by personal guarantee of three Directors and (iv) cash credit facility is secured by frst charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

1.2 The net assets of the Company were revalued as on March 31, 2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets forthe purpose of the said revaluation has been computed upto March 31, 2009. The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

1.3 Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs. 389.90 lakhs (March 31,2013 Rs. 104.30 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

1.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

1.5 Capital expenditure commitments (net of advances) Rs. 137.04 lakhs (March 31,2013 Rs. 367.78 lakhs)

1.6 Contingent liabilities - Claims against the Company not acknowledged as debts

Taxes Rs. 371.20 lakhs (2012-13 Rs.209.05 lakhs).

Bank guarantee Rs. 589.96 lakhs (2012-13 Rs. 487.28 lakhs).

Others Rs. 55.72 lakhs (2012-13 Rs. 16.72 lakhs)

outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

1.7 Directors'' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 94.60 lakhs (2012-13 Rs.89.40 lakhs), Allowances Rs. 15.10 lakhs (2012-13 Rs.13.50 lakhs), Contribution to Provident fund Rs. 11.35 lakhs (2012-13 Rs.10.72 lakhs), Perquisites Rs. 1.81 lakhs(2012-13 Rs.2.58 lakhs). Total Rs. 122.24 lakhs(2012-13 Rs. 116.20 lakhs); (ii) Sitting fees to directors Rs. 2.85 lakhs (2012-13 Rs.2.55 lakhs).

1.8 Repairs to Buildings in Note 2.6 to the Statement of Profit and Loss - Nil (2012-13 Rs.14.51 lakhs) being amortised expenses on leasehold land.

1.9 (a) Warehouse earnings in Note 2.1 is net of incentives/rebates/trade discounts of Rs. 1041.46 lakhs(2012-13 Rs 1174.93 lakhs) (b) Tax deducted at source on (i) Revenue from operations Rs. 189.85 lakhs(2012-13 Rs 153.12 lakhs); (ii) Interest income Rs. 4.05 lakhs (2012-13 Rs 9.34 lakhs).

1.10 (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.69 lakhs (2012-13 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by the Company prior to revaluation and the same has been transferred from Revaluation reserve to the Statement of Profit and loss (ii) Depreciation and amortization includes impairment in value of operating equipment is Rs. Nil (2012-13 Rs.65.50 lakhs) (iii) During the yearthe Company has revised the estimated useful life of Motor Vehicles and Operating Equipment. The effect of the charge relating to the current year is a higher depreciation of Rs. 52.89 lakhs. (iv) Useful life of Tangible and Intangible Assets:

1.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports – Rs.Nil (2012-13 Rs Nil); (ii) Other expenditure in foreign currency Rs. 28.12 lakhs(2012-13 Rs.50.22 lakhs); (iii) Other earnings in foreign exchange Rs. 29.11 lakhs (2012-13 Rs. 6.40 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives – Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 2627 equivalent Rs. 1.60 lakhs (March 31, 2013 US $ 13,409.22 equivalent Rs 7.28 lakhs); Amount payable on account of services obtained US $ 5435.71 equivalent Rs. 3.36 lakhs, DKK Nil, GBP Nil ( March 31,2013 US $ 1645 equivalent Rs.0.89 lakhs , DKK 2532 equivalent Rs 0.24 lakh, GBP 12074.94 equivalent Rs 9.97 lakhs).

1.12 Computation of earnings per share: (i) Profit for the year after tax Rs. 416.27 lakhs(2012-13 Rs.636.58 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2013- 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i)÷(ii) Rs. 23.13 (2012-13-Rs. 35.37)

1.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs.357.50 lakhs (March 31,2013 Rs.414.90 lakhs); (ii) others Rs. 2.63 lakhs (March 31,2013 Rs.5.57 lakhs).

1.14 (i) The Company has complied with the revised Accounting Standard 15-Employee benefits.

Accordingly provision of Rs. 32.92 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2014 (2012-13 -Rs 35.15lakhs).

(ii) Deferred benefit plan-Gratuity: As per actuarial valuation on March 31, 2014. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2013 - 8%);(b)Salary escalation rate 8% (March 31,2013 8%); (c) Mortality rate as per LIC(1994-96) Mortality Table: (d) Attrition rate 1-3%(March 31,2013 - 1-3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b)- Contribution to provident fund Rs. 50.24 lakhs,(2012-13 Rs 45.70 lakhs: 2011-12-Rs 41.56 lakhs), Contribution towards gratuity Rs. 32.92 lakhs(2012-13 Rs 35.15 lakhs: 2011-12-Rs 56.24 lakhs), Employees'' welfare expenses include contribution to employees'' state insurance plan Rs. 9.92 lakhs( 2012-13 -Rs 9.12 lakhs:2011-12-Rs 16.42 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs. 3.93 lakhs (2012-13 Rs 3.93 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work and service tax thereon.

1.15 Segment information - The Company''s primary segment is identified as business Segment based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

1.16 Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan - Director-Finance

(2) Associate company - Sudharsan Logistics Private Limited

1.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

1.18 Details of terms of Secured loans- Refer separate statement annexed.

1.19 Comparative figures relating to the previous year have been reclassified /regrouped/amended wherever necessary

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Mar 31, 2013

1.1 (i)Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director; (ii) Loan for acquisition of land for Container Freight Station is secured by first charge on the said land and structures thereon and guaranteed by three Directors;(iii)Loan of Rs 1383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situated at Chennai) and is guaranteed by three Directors (iv) Loan of Rs 450 Lakhs(Note 1.3(a) and Note 1.7(a)) drawn for construction of warehouse is secured by commercial property belonging to an associate company and is further secured by personal guarantee of three Directors and (v) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

1.2 The net assets of the company were revalued as on March 31,2009 by aci external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31, 2009. The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

1.3 Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs. 104.30 lakhs (March 31,2012 Rs. 97.29 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

1.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

1.5 Capital expenditure commitments (net of advances) Rs.367.78 lakhs(March 31,2012 - Rs. 732.07 lakhs)

1.6 Contingent liabilities - Claims against the Company not acknowledged as debts Rs.46.00 lakhs (2011-12 Rs.0.29 lakh). Bank guarantee Rs 487.28 lakhs(2011-12 Rs 331.95 lakhs). Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

1.7 Directors'' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 89.40 lakhs (2011-12 Rs.74.72 lakhs), Allowances Rs 13.50.lakhs (2011-12 Rs.18.83 lakhs), Contribution to Provident fund Rs. 10.72 lakhs (2011-12 Rs.8.97 lakhs), Perquisites Rs. 2.58 lakh (2011-12 Rs.0.14 lakh). Total Rs. 116.20 lakhs{2011-12 Rs. 102.66 lakhs); (ii) Sitting fees to directors Rs2.55 lakhs (2011-12 Rs.2.85 lakhs).

1.8 Repairs to Buildings in Note 2.6 to the Statement of Profit and Loss include Rs. 14.51 lakhs (2011- 12 Rs. 13.93 lakhs) being amortised expenses on leasehold land.

1.9 (a) Warehouse earnings in Note 2.1 is net of incentives/rebates/trade discounts of Rs 1174.93 lakhs(2011-12 Rs 1230.52 lakhs)

(b) Tax deducted at source on (i) Revenue from operations Rs153.12iakhs(2011-12 Rs 156.88 lakhs); (ii) Interest income Rs. 9.34 lakhs (2011-12 Rs 3.66 lakhs).

1.10 (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.69 lakhs (2011-12 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by

the company prior to revaluation and the same has been transferred from Revaluation reserve to the Statement of Profit and loss (ii) Depreciation and amortization includes impairment in value of operating equipment Rs 65.50 lakhs(2011-12 Rs Nil)(iii) Gain on acquisition of land by government disclosed as extraordinary item in earlier year is after netting surplus of Rs 138.98 lakhs in Revaluation Reserve.

1.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs.Nil (2011- 12 Rs Nil); (ii) Other expenditure in foreign currency Rs. 50.22 lakhs(2011-12 Rs.31.58 lakhs); (iii) Other earnings in foreign exchange Rs6.40 lakhs (2011-12 Rs. 10.52 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $13,409.22 equivalent RS 7.28 lakhs, Euro Nil equivalent Rs . Nil lakhs (March 31,2012 US $ 977.72 equivalent Rs 0.51 lakhs, Euro 438.84 equivalent Rs 0.30lakh); Amount payable on account of services obtained US$1645 equivalent Rs 0.89 lakhs, DKK 2532 equivalent Rs 0.24 lakhs, GBP 12074.94 equivalent Rs 9.97 lakhs (March 31,2012 US $ 80 equivalent Rs.0.04 lakhs , DKK 2532 equivalent Rs 0.24 lakh, GBP Nil).

1.12 Computation of earningspershare: (i)Profit for the year after tax Rs636.58 lakhs (2011-12 Rs.766.04 lakhs); (ii) Profit for the year before extraordinary interns (net of tax) Rs 636.58 lakhs(2011-12 Rs 727.37 lakhs) (iii)Equity shares outstanding 18,00,000 (March 31,2012-18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i) (iii) Rs 35.37 (2011-12-Rs 42.56); (v) Earnings per share- Basic and diluted before extra ordinary item (net of tax) Rs 35.37 (2011-12 Rs 40.41)

1.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs. 414.90 lakhs (March 31,2012 Rs.306.90 lakhs); (ii) others Rs. 5.57 lakhs (March 31,2012 Rs.9.37 lakhs).

1.14 (i) The company has complied with the revised Accounting Standard 15-Employee benefits.

Accordingly provision of Rs 35.15 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2013 (2011-12 -Rs 56.24lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2013. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2012 8 %);(b)Salary escalation rate 8%(March 31,2012 5%); (c) Mortality rate as per LIC(1994-96) Mortality Table: (d) Attrition rate 1-3%(March 31,2012 1-3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b)- Contribution to provident fund Rs 45.70 lakhs,(2011-12 Rs 41.56 lakhs: 2010-11-Rs 37.95 lakhs), Contribution towards gratuity Rs 35.15 lakhs( 2011-12 Rs 56.24 lakhs: 2010-11-Rs 38.44 lakhs), Employees'' welfare expenses include contribution to employees'' state insurance plan Rs 9.12 lakhs( 2011-12-Rs 16.42 lakhs:2010-11-Rs 9.57 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs3.93 Lakhs (2011-12 Rs 2.98 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work and service tax thereon.

1.15 Segment information - The Company''s primary segment is identified as business Segment based on nature of services, risks , returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

1.16 Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan -Director-Finance

(2) Associate company- Sudhajrsan Logistics Private Limited

1.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

1.18 Details of terms of Secured loans- Refer separate statement annexed.

1.19 Comparative figures relating to the previous year have been reclassified /regrouped/amended wherever necessary.

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Mar 31, 2012

1)The holders of Equity Shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 1956

Note:(a)Securities for the long term debt: Refer Note 3.1 to the financial statements

(b) Details of terms of the current maturities of long term debt: Refer Note 3.18 to the financial statements.

2.1 (i)Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director;

(ii) Loan for acquisition of land for Container Freight Station is secured by first charge on the said land and structures thereon and guaranteed by three Directors;(iii) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

2.2 The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31,2009.The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

2.3 Balance with banks in deposit accounts in Note 1.13(a) to the Balance Sheet includes Rs. 97.29 lakhs (March 31,2011 Rs. 96.28 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

2.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

2.5 Capital expenditure commitments (net of advances) Rs. 732.07 iakhs(March 31,2011 - Rs. Nil)

2.6 Contingent liabilities - Claims against the Company not acknowledged as debts Rs.0.29 lakhs (2010-11 Rs.46.89 lakhs). Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

2.7 Directors' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 74.72lakhs (2010-11 Rs.65.00 lakhs), Allowances Rs18.83.lakhs (2010-11 Rs.16.50 lakhs), Contribution to Provident fund Rs. 8.97 lakhs (2010- 11 Rs.7.80 lakhs). Perquisites Rs. 0.14 lakh (2010-11 Rs.0.78 lakh). Total Rs. 102.66 lakhs(2010- 11 Rs. 90.08 lakhs); (ii) Sitting fees to directors Rs 2.85 lakhs (2010-11 Rs.2.35 lakhs).

2.8 Repairs to container yard and warehouses in Note 2.6 to the Profit and Loss Statement include Rs. 13.93 lakhs (2010-11 Rs.13.35 lakhs) being amortised expenses on leasehold land.

2.9 Tax deducted at source on (i) Revenue from operations Rs 156.88 lakhs(2010-11 Rs 135.04 lakhs); (ii) interest income Rs. 3.66 lakhs (2010-11 Rs.5.20 lakhs) .

2.10 Depreciation for the year computed on revalued assets includes a charge of Rs8.69 lakhs (2010-11 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and loss Statement (Refer Note 1.2 (a) to the Balance Sheet.

2.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs.Nil (2010-11 Rs Nil); (ii) Other expenditure in foreign currency Rs. 31.58 lakhs(2010-11 Rs.37.37 lakhs); (iii) Other earnings in foreign exchange Rs10.52 lakhs (2010-11 Rs. 9.04 lakhs): (iv) There was no remittance in foreign currencies on account of dividend to non-resident

shareholders; (v) Net exchange difference credited to Profit and loss account Rs. 0.50 lakh (2010-11 Rs.0.38 lakh); (vi) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 977.72 equivalent Rs 0.51 lakhs, Euro 438.84 equivalent Rs . 0.30 lakhs (March 31,2011 US $ 3797.33 equivalent Rs 1.70 lakhs, Euro 382.36 equivalent Rs 0.24 lakh); Amount payable on account of services obtained US $ 80 equivalent Rs 0.04 lakhs, DKK 2532 equivalent Rs 0.24 lakh, ( March 31.2011 US $ 2468.65 equivalent Rs.1.10 lakhs , Euro 2532 equivalent Rs 0.21 lakh, GBP Nil).

2.12 Computation of earnings per share: (i) Profit for the year after tax Rs 766.04 lakhs(2010-11 Rs.828.45 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2011 - 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i) (ii) Rs 42.56. (2010-11-Rs 46.03).

2.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs. 306.90 lakhs (March 31,2011 Rs.283.30 lakhs); (ii) others Rs. 9.37 lakhs (March 31,2011 Rs.11.19 lakhs).

2.14 (i) The company has complied with the revised Accounting Standard 15-Employee benefits issued by the Institute of Chartered Accountants of India. Accordingly provision of Rs 56.24 lakhs has been made for the incremental liability towards gratuity for the year ended March 31.2012 (2010-11 -Rs 38.44 lakhs).

(ii)Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2012. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2011 8 %);(b)Salary escalation rate 8%(March 31,2011 5%); (c) Mortality rate as per LIC(1994- 96) Mortality Table: (d) Attrition rate 1-3%(March 31,2011 1-3%); Method of valuation, Projected unit credit method.

(iii)Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv)During the year the Company has recognized the following amounts in the Profit and loss statement in Note 2.4 (b)- Contribution to provident fund Rs41.56 lakhs,(2010-11 Rs 37.95 lakhs: 2009-10-Rs 32.80 lakhs), Contribution towards gratuity Rs56.24 lakhs( 2010-11 Rs 38.44 lakhs: 2009-10-Rs 30.10 lakhs), Employees' welfare expenses include contribution to employees' state insurance plan Rs 16.42 lakhs( 2010-11-Rs 9.57 lakhs:2009-10-Rs 7.76 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs 2.98 Lakhs (2010-11 Rs 2.25 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work.

2.15 Segment information - The Company's primary segment is identified as business Segment based on nature of services, risks , returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

2.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

2.18 Details of terms of Secured loans- Refer separate statement annexed.

2.19 During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. Accordingly the company has reclassified /re-grouped /amended the previous year's figures in accordance with the requirements applicable in the current year.

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Mar 31, 2011

(1) Issued and subscribed capital include 2,50,000 Equity shares allotted as fully paid-up by way of bonus shares by capitalisation of part of General reserve.

(2) Movement in reserves –(i) Revaluation reserve- Surplus arising on the revaluation of the net assets Rs Nil (March 31,2010 Rs Nil); Transfer to Depreciation in Schedule 2.6 (refer Note 15 below) Rs 8.69 lakhs(March 31,2010 Rs 8.70 lakhs); (ii) General reserve - Transfer from Profit and loss account Rs. 720.00 lakhs (March 31,2010 Rs.540.00 lakhs); Adjustment on account of provision for taxation and other balances:Charge(-)/Credit(+) - Rs.29.99 (-) (March 31,2010, Rs. Nil).

(3) Nature of security for secured loans – (i) Term loan and cash credit facility from banks are secured by a first charge on the entire fixed assets (excluding assets under hire purchase) and current assets, present and future. (ii) Loans under deferred instalment terms are secured by hypothecation of equipments acquired under the scheme; (iii) Term loan and cash credit facilities are guaranteed by three directors. The loans stated at (ii) above are guaranteed by the Managing Director / Deputy Managing Director.

(4) Unsecured loans include Rs. 52.38 lakhs (March 31,2010 Rs.20.11 lakhs) repayable within twelve months from the end of the year.

(5) The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31,2009.The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs has been credited to Revaluation reserve.

(6) There is no diminution, other than temporary in the value of the investments.

(7) Balance with banks in deposit accounts in Schedule 1.8 include Rs. 96.28 lakhs (March 31,2010 Rs.187.49 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

(8) There are no amounts remaining to be credited to the Investor Education and Protection Fund.

(9) Capital expenditure commitments (net of advances) Rs. Nil (March 31,2010-Rs 41.26 lakhs).

(10) Contingent liabilities - Claims against the Company not acknowledged as debts Rs. 46.89 lakhs (2009-10 Rs.26.35 lakhs).

(11) Directors remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 65.00 lakhs (2009-10 Rs.61.66 lakhs), Allowances Rs.16.50lakhs (2009-10 Rs.18.50 lakhs), Contribution to Provident fund Rs.7.80 lakhs (2009- 10 Rs.7.40 lakhs), Perquisites Rs. 0.78 lakh (2009-10 Rs.0.32 lakh). Total Rs. 90.08 lakhs(2009- 10 Rs. 87.88 lakhs); (ii) Sitting fees to directors Rs2.35 lakhs (2009-10 Rs.1.80 lakhs).

(12) Repairs to container yard and warehouses in Schedule 2.2 include Rs. 108.91 lakhs (2009- 10 Rs.188.82 lakhs) being amortised expenses on leasehold land.

(13) Employee benifits include Rs. Nil (2009-10 Rs.0.93 lakh) being amortisation of compensation under voluntary separation plan.

(14) Tax deducted at source on interest income is Rs. 5.20 lakhs (2009-10 Rs.5.39 lakhs) .

(15) Depreciation for the year computed on revalued assets includes a charge of Rs 8.69 lakhs (2009-10 Rs 8.70 lakhs) being the excess depreciation computed by the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and loss account and reflected in Schedule 2.6.

(16) Foreign exchange and foreign currency transactions and derivatives - (i) Imports – Rs. Nil (2009-10 Rs Nil); (ii) Other expenditure in foreign currency Rs. 37.37 lakhs(2009-10 Rs.24.34 lakhs); (iii) Other earnings in foreign exchange Rs. 9.04 lakhs (2009-10 Rs. 23.48 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Net exchange difference credited to Profit and loss account Rs. 0.38 lakh (2009-10 Rs.0.63 lakh); (vi) Derivatives – Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 3797.33 equivalent RS 1.70 lakhs, Euro382.36 equivalent Rs . 0.24 lakhs (March 31,2010 US $ 15,527.10 equivalent Rs 7.07 lakhs, Euro 214.85 equivalent Rs 0.13 lakh); Amount payable on account of services obtained US $ 2468.65 equivalent Rs 1.10 lakhs, Euro 2532 equivalent Rs 0.21 lakh, GBP Nil ( March 31,2010 US $ Nil , Euro 474.89 equivalent Rs 0.29 lakh, GBP 6,875.55 equivalent Rs 4.68 lakhs).

(17) Computation of earnings per share: (i) Profit after taxation Rs 828.45 lakhs(2009-10 Rs610.90 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2010 - 18,00,000); (iii) Earnings per share – Basic and diluted (i)/(ii) Rs. 46.03 (2009-10-Rs 33.94).

(18) Deferred tax-liability comprises tax effect of (i) timing differences relating to depreciation Rs. 283.30 lakhs (March 31,2010 Rs.313.68 lakhs); (ii) others Rs. 11.19lakhs (March 31,2010 Rs.32.74 lakhs).

(19) (i) The company has complied with the revised Accounting Standard 15-Employee benefits issued by the Institute of Chartered Accountants of India. Accordingly provision of Rs 38.44 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2011 (2009-10 -Rs 30.10 lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2011. The disclosures required in the said Accounting standard regarding computation of the said benefit plan have not been furnished since the said information is not considered as material.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Profit and loss account in Schedule 2.3 to the accounts- Contribution to provident fund Rs37.95 lakhs,(2009- 10 Rs 32.80 lakhs: 2008-09-Rs 31.48 lakhs), Contribution towards gratuity Rs 38.44 lakhs ( 2009-10 Rs 30.10 lakhs: 2008-09-Rs 40.51 lakhs), Employees welfare expenses include contribution to employees state insurance plan Rs9.57 lakhs( 2009-10-Rs 7.76 lakhs 2008-09-Rs 7.65 lakhs).

(20) Segment information - The Company is principally engaged in a single business segment viz. Logistics.

(21) Related party transactions

(1) Related party – Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(22) The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

(23) Comparative figures relating to previous year have been reclassified to conform to the classification adopted this year.

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Mar 31, 2010

(1) Issued and subscribed capital include 2,50,000 Equity shares allotted as fully paid-up by way of bonus shares by capitalisation of part of General reserve.

(2) Movement in reserves -(i) Revaluation reserve- Surplus arising on the revaluation of the net assets Rs Nil (March 31,2009 Rs 4859.84 lakhs); Transfer to Depreciation in Schedule 2.6 (refer Note 15 below) Rs 8.70 lakhs(March 31,2009 Rs Nil); (ii) General reserve - Transfer from Profit and loss account Rs. 540.00 lakhs (March 31,2009 Rs.868.60 lakhs); Adjustment on account of provision for taxation and other balances : Charge( -)/Credit(+) - Rs. Nil (-) (March 31,2009, Rs.68.60 lakhs(-).

(3) Nature of security for secured loans - (i) Term loan and cash credit facility from banks are secured by a first charge on the entire fixed assets (excluding assets under hire purchase) and current assets, present and future, (ii) Deferred liability under hire purchase is secured by hypothecation of equipments acquired under the hire purchase scheme; (iii) Term loan and cash credit facilities are guaranteed by three directors. The liability stated at (ii) above is guaranteed by the Managing Director and Deputy Managing Director.

(4) Unsecured loans include Rs. 20.11 lakhs (March 31,2009 Rs.47.22 lakhs) repayable within twelve months from the end of the year.

(5) The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31,2009.The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs has been credited to Revaluation reserve.

(6) There is no diminution, other than temporary in the value of the investments.

(7) Deposits with banks in Schedule 1.8 include Rs. 187.49 lakhs (March 31,2009 Rs.65.65 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

(8) There are no amounts remaining to be credited to the Investor Education and Protection Fund.

(9) Capital expenditure commitments (net of advances) Rs. 41.26 lakhs (March 31,2009-Rs Nil).

(10) Contingent liabilities - Claims against the Company not acknowledged as debts Rs.26.35 lakhs (2008-09 Rs.9.93 lakhs).

(11) Directors remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 61.66 lakhs (2008-09 Rs.43.89 lakhs), Allowances Rs. 18.50 lakhs (2008-09 Rs.13.10 lakhs), Contribution to Provident fund Rs. 7.40 lakhs (2008-09 Rs.5.26 lakhs), Perquisites Rs. 0.32 lakh (2008-09 Rs.0.82 lakh). Total Rs. 87.88 lakhs(2008-09 Rs. 63.07 lakhs); (ii) Sitting fees to directors Rs 1.80 lakhs (2008-09 Rs.1.45 lakhs).

(12) Repairs to container yard and warehouses in Schedule 2.2 include Rs. 188.82 lakhs (2008-09 Rs. 111.91 lakhs) being amortised expenses on leasehold land.

(13) Human resources include Rs. 0.93 lakh (2008-09 Rs.2.22 lakhs) being amortisation of compensation under voluntary separation plan.

(14) Tax deducted at source on interest income is Rs. 5.39 lakhs (2008-09 Rs.4.82 lakhs) .

(15) Depreciation for the year computed on revalued assets includes a charge of Rs 8.70 lakhs (2008-09 Rs Nil) being the excess depreciation computed by the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and loss account.

(16) Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs. Nil (2008-09 Rs 338.64 lakhs); (ii) Other expenditure in foreign currency Rs. 24.34 lakhs(2008-09 Rs.9.40 lakhs); (iii) Other earnings in foreign exchange Rs. 23.48 lakhs (2008-09 Rs. 7.03 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Net exchange difference credited to Profit and loss account Rs. 0.63 lakh (2008-09 Rs.0.01 lakh); (vi) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 15,527.10 equivalent RS 7.07 lakhs, Euro 214.85 equivalent Rs .0.13 lakh (March 31,2009 US $ 2,375.44 equivalent Rs 1.21 lakhs, Euro 4,969.01 equivalent Rs 3.35 lakhs); Amount payable on account of services obtained US $ Nil, Euro 474.89 equivalent Rs 0.29 lakh, GBP 6,875.55 equivalent Rs 4.68 lakhs (March 31,2009 US $ 368.46 equivalent Rs 0.18 lakh, Euro Nil, GBP 1,165.41 equivalent Rs 0.93 lakh).

(17) Computation of earnings per share: (i) Profit after taxation Rs 610.90 lakhs(2008-09 Rs1060.58lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2009 - 18,00,000); (iii) Earnings per share - Basic and diluted (i)/(ii) Rs. 33.94 (2008-09-Rs 58.92).

(18) Deferred tax-liability comprises tax effect of (i) timing differences relating to depreciation Rs.313.68 lakhs (March 31,2009 Rs.241.51 lakhs); (ii) others Rs. 32.74 lakhs (March 31,2009 Rs.86.74 lakhs).

(19) (i) The company has complied with the revised Accounting Standard 15-Employee benefits issued by the Institute of Chartered Accountants of India. Accordingly provision of Rs 30.10 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2010 (2008-09 -Rs 40.51 lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2010. The disclosures required in the said Accounting standard regarding computation of the said benefit plan have not been furnished since the said information is not considered as material. (iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation. (iv) During the year the Company has recognized the following amounts in the Profit and loss account in Schedule 2.3 to the accounts- Contribution to provident fund Rs 32.80 lakhs,(2008- 09 Rs 31.48lakhs: 2007-08-Rs 24.38 lakhs), Contribution towards gratuity Rs 30.10 lakhs( 2008-09 Rs 40.51 lakhs: 2007-08-Rs 19.71 lakhs), Employees welfare expenses include contribution to employees state insurance plan Rs 7.76 lakhs( 2008-09-Rs 7.65 lakhs: 2007-08- Rs 13.21 lakhs).

(20) Segment information - The Company is principally engaged in a single business segment viz. Logistics.

(21) Related party transactions

(1) Related party - Key management personnel

(i) Shri V Upendran - Managing Director

(ii). Shri S Sathyanarayanan - Deputy Managing Director

(22) The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

(23) Comparative figures relating to previous year have been reclassified to conform the classification adopted this year.